Small Business Economics

, Volume 15, Issue 4, pp 283–291 | Cite as

Public Policy Toward Entrepreneurship

  • Douglas Holtz-Eakin

Abstract

There is widespread support for tax policies providing special treatment for small businesses. This paper reviews standard efficiency and equity criteria for such tax-subsidies, and finds they provide little support for such policies. The review highlights a central empirical void requiring further research: the "optimal" business failure rate. Entrepreneurs do struggle, and small businesses frequently merge and nearly as frequently fail. But we do not know enough to determine which firms to target for success or failure.

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Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Douglas Holtz-Eakin
    • 1
  1. 1.Center for Policy ResearchSyracuse University, Maxwell School of Citizenship and Pacific AffairsSyracuseU.S.A.

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