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Entrepreneurship policy has two related objectives: to foster the supply of entrepreneurs and to direct the allocation of entrepreneurial effort and talent towards the best (from an economic and social viewpoint) ventures. Both objectives point to the economy’s infrastructure (i.e., transportation, telecommunication and credit markets) and underlying institutions (property rights, contracting rules, market regulations and the political process). The former calls attention as well to human and social capital, risk preferences and certain cultural traits, and the latter to relative rewards and incentives.
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