Institutions and Entrepreneurship

A paper(PDF) by Frederic Suatet "...argues that institutions are not the fad of the moment but are fundamental to the existence of a vibrant and productive entrepreneurial activity. Institutions are defined as the rules of the economic game and their enforcement arrangements. Entrepreneurial activity is about creation and discovery in the commercial context, that is, within the price system with the guidance of the profit-and-loss mechanism.What matters to economic performance is a set of institutions that favor socially productive entrepreneurship.The problem with most developing countries is not that entrepreneurial activity is missing but that it is misdirected into socially destructive activities. The aim of economic policy and social reform must be to re-establish an institutional framework that allows for socially productive entrepreneurial activity to flourish..."
via PSD Blog