This final chapter discusses several other public policies which affect entrepreneurship. The first section discusses the taxation of entrepreneurs. It starts by reviewing theory and evidence about the effects of income and payroll taxes, before turning to corporation, wealth and inheritance taxes. The content of the first section complements the analysis of capital gains tax provided in the previous chapter.

The second section discusses evidence relating to three types of public policy which affect entrepreneurs' labour and product market activities. The first type of policy is employment assistance schemes, designed to move unemployed workers off the welfare rolls and into independent business ownership. The second type is targeted government procurement of entrepreneurs' products, including affirmative action policies for small business owners. The third type of policy is the provision of assistance and advice to entrepreneurs.

The third section of this chapter deals with an increasingly important topic: government regulation. Regulations affect entrepreneurial entry, exit, production, hiring and corporate governance decisions, as well as the availability of bank credit. These topics are all analysed in turn. The emphasis in this section is mainly on presenting empirical findings, although some theoretical arguments are also discussed.

The fourth section discusses some remaining, mainly macro, policy issues such as the welfare state and minimum wages – and how they affect entrepreneurship. It also discusses the effects of several institutions which, while not directly under government control, are shaped by government policies, including the roles of ‘enterprise culture’ and trade unions in the economy.