Chapter 5, The False-Positive Claim: Recessions Stimulate Entrepreneurship Video Solutions, Entrepreneurs and the Search for the American Dream

Problem 1

Orthodox economic thought suggests that during periods of economic uncertainty, like the Great Recession, entrepreneurship increases. It suggests further that entrepreneurial activity has the potential to turnaround recessions and stimulate growth. Why is this traditional understanding flawed?

Xiaomin Bian

Numerade Educator

01:06

Problem 2

An old adage states, "Statistics can be made to prove anything." What does this chapter reveal about the use of statistics?

Tyler Moulton

Numerade Educator

01:23

Problem 3

Imagine that you are working during a recession, and your boss tells you that you will be laid off in six weeks. What would you do: look for another job or start your own business? Explain your reasoning.

Ulysses Ng

Numerade Educator

Problem 4

Conduct an online search to find three successful businesses that started during the Great Recession. What do these businesses have in common? Would you consider the entrepreneur who started each business a necessity, accidental, or opportunity entrepreneur? Do you think these different designations matter for their eventual success?

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01:19

Problem 5

This chapter closes with some evidence of an uncertain future with respect to entrepreneurship. How is the decline in business dynamism related to a decline in entrepreneurship and a decline in job creation? What are some of the larger structural forces that may be contributing to the U.S. decline in entrepreneurship? What are some possible solutions that government, public policy makers, and private corporations might develop to combat the decline?

Kaylee Mcclellan

Numerade Educator