Document Type

Working Paper

Publication Date

5-30-2015

SSRN Discipline

LSN Subject Matter eJournals; ERPN Subject Matter eJournals; Tax Law & Policy eJournals; Financial Economics Network; Management Research Network; Economics Research Network; Legal Scholarship Network; Corporate, Securities & Finance Law eJournals; Entrepreneurship Research & Policy Network; Law School Research Papers - Legal Studies; Corporate Governance Network; Law & Society eJournals; Law & Society: Private Law eJournals; Law & Society: Public Law eJournals; Accounting Research Network

Abstract

The legal system constantly follows the footsteps of innovation and attempts to discourage its migration overseas Yet present legal rules that inform and explain entrepreneurial circumstances lack a core understanding of the concept of entrepreneurship By its nature law imposes order It provides rules remedies and classifications that direct behavior in a consistent manner Entrepreneurship turns on the contrary It entails making creative judgments about the unknown It involves adapting to disarray It thrives on deviation as opposed to traditional causation This Article argues that these differences matter It demonstrates that current laws lock entrepreneurs into inefficient legal routes Through specific legal classifications it points to significant distortionary effects It theorizes that a legal culture that wishes to entice entrepreneurship is one that requires legal agents to think like entrepreneurs Thereafter it offers a bridge between law and entrepreneurship by providing policymakers with tools to recognize its distinctive modus operandi

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