This survey explores the important connection between institutions and entrepreneurship. Institutions consist of the formal and informal “rules of the game.” Entrepreneurs act within a context determined by these rules. The rules of the game create payoffs that make certain entrepreneurial opportunities more attractive than others. This monograph explores the relevant literature from institutional economics and entrepreneurial studies, focusing on the important link between the two. Particular emphasis is placed on entrepreneurship within several different institutional settings— private for-profit, private nonprofit, and political—as well as the impact of entrepreneurship on institutions. This monograph concludes by discussing the implications for future research on the topic.
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Citation (Chicago Style): Boettke, Peter J. and Christopher Coyne. "Context Matters: Institutions and Entrepreneurship." Foundations and Trends in Entrepreneurship 5, no. 3 (Spring 2009): 135-209.