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Master's Thesis from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 1.7, University of Paderborn, language: English, abstract: This thesis aims to investigate whether entrepreneurship is an adequate tool for developing countries to propel economic growth and bring forth economic development. The theory of economic growth and development demonstrates that productive entrepreneurship is important to increase productivity and foster structural economic transformation if a sufficient institutional framework is in place. Empirical evidence examining the effect of entrepreneurship on economic growth and development is difficult to establish and yields ambiguous results. It is revealed that developing countries fail to generate growth and development from their high rates of entrepreneurial activity. Only employment creating "high-growth entrepreneurship" is identified to positively influence economic growth. It is shown that enhancements of institutions and well-targeted policies could help developing countries to generate more growth-oriented entrepreneurship.
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