Entrepreneurial Activities: A Microeconomic Analysis

People have different preferences for performing entrepreneurial activities. These differences can be influenced by actions of the state. Individual behavior in choosing employed work or entrepreneurial activities is first examined and then aggregated. Equilibrium is given by the balance of aggregate supply of and aggregate demand for entrepreneurial activity. States can promote more aggregate supply of entrepreneurial activity through enticing or encouraging individuals, or they can make institutional changes to increase aggregate demand for entrepreneurial activity through domestic or global markets. The result is more entrepreneurial activities realized over time, so that greater economic growth can be achieved.