A Transaction Cost and Transformational Generative Model of Aggregate Entrepreneurship

Abstract

A model of entrepreneurship based on the concept of transformational generative grammar in modern linguistics and transaction cost economics is developed. Using an integrative framework, a number of propositions for conceptualising and studying entrepreneurship both at the micro and the macro levels are discussed. Several policy implications for stimulating aggregate entrepreneurship in the economy are drawn and guidelines for promoting individual entrepreneurship are suggested.