ABSTRACT
This chapter examines the impact of productive, unproductive, underproductive, and destructive entrepreneurship on social value creation. We construct a global entrepreneurship and development index (GEDI) that captures the contextual feature of entrepreneurship across countries and stages of development. We find the relationship between entrepreneurship and economic development to be mildly S-shaped. Better institutions create the incentives to shift agents from less productive activity to more productive activity. Implications for public policy suggest that institutions need to be strengthened before entrepreneurial resource can be fully deployed.
