Entrepreneurship functions better when
A) the government performs the entrepreneurial function.
B) there is a well-defined property rights system.
C) saving is relatively low.
D) most of the population has low levels of education.

Question

Quizplus · Accepted Answer

A well-defined property rights system provides entrepreneurs with the confidence to invest and innovate. If they know that they will be able to retain the rewards of their efforts, they will be more willing to take risks and create new ventures. The government should create an environment that allows entrepreneurs to operate freely within a system of legal protections and regulations. Saving is also important for entrepreneurship, as it provides the capital that entrepreneurs need to invest in new ventures. Low levels of education may hinder entrepreneurship, as it could limit people's ability to identify and pursue new opportunities.

Entrepreneurship Functions Better When