The Rise of the Entrepreneurial Society

The rise of the entrepreneur has been one of the least understood phenomena affecting the U.S. economy for the past few decades. When business observers and economic developers do acknowledge the impact of entrepreneurship, they tend to think of rugged individualists who go it alone and respond to market forces alone. We argue that the real story is more complicated. U.S. government policies—from research and development funds to tax codes—played a critical role in creating an environment conducive to new fast-growing businesses. This policy mix—the American formula for growth—fostered a vibrant system in which entrepreneurs could thrive. Effective future policy requires that we understand the genesis of these initiatives and continue to support and nurture this system.