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21 - Taxation, Entrepreneurship Support Programmes and Indirect Government Policies

from Part IV - Public Policy

Published online by Cambridge University Press:  16 March 2018

Simon C. Parker
Affiliation:
University of Western Ontario
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Summary

The final chapter tackles the remaining policy interventions which help shape incentives for individuals to start and grow companies. The first topic is taxation of incomes, payrolls, corporations and wealth – all of which affect entrepreneurs directly. Second, a range of direct policies which offer various types of support selectively to potential entrepreneurs are analyzed: these include direct assistance schemes to reduce unemployment through new venture creation; affirmative action schemes; public procurement policies; and direct training policies. Third, the chapter discusses a set of `indirect policies’, i.e. policies which are not motivated by concerns about entrepreneurs, yet which still affect them. These include health insurance, the size of government, social security transfers, trade unions, the minimum wage, efforts to create an `entrepreneurial culture’, and political and economic instability. The final section closes the chapter and the book with some reflections and thoughts about the economics of entrepreneurship both in free market settings and in mixed economies where it is imperative to design appropriate public policies which foster, or at least do not actively undermine, entrepreneurship.
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Publisher: Cambridge University Press
Print publication year: 2018

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