The entrepreneurial process: An institutional perspective

Abstract

The aim of this paper is to discuss the process of development of the firm in interaction with its institutional environment, which I call “the entrepreneurial process”. This can be studied in three phases, i.e. initiating phase, establishment phase and growth phase. I am going to present a model, describing the entrepreneurial process and try to explain the co-relation and interaction between economic performance, formal institutions and informal constraints. I will first describe some institutional factors, second, a theoretical discussion; while also presenting a model. Third, accounts of two companies. Analysis, discussion, and conclusions appear in part four.