Small Business Economics

, Volume 23, Issue 2, pp 85–98 | Cite as

Entrepreneurship and Risk Premium

  • P. E. Petrakis

Abstract

This article deals with the measurement and determination of entrepreneurship. It utilises the issue of the absence of the entrepreneur from neoclassical theory and uses the theory of portfolio management to establish a model connecting risk premium with the entrepreneurship premium. It shows that the non-systematic risk may be a satisfactory proxy of the level of entrepreneurial activity. The development of successful entrepreneurial activity proxy contributes towards the development of a theorisation of entrepreneurship and an assessment of its contribution to growth.

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • P. E. Petrakis
    • 1
  1. 1.Department of EconomicsNational and Kapodistrian University of AthensStadiou 5Greece

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