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The purpose of this study is to explore whether Europe has an “entrepreneurship deficit” compared to other industrialized regions. Cross-country comparisons are difficult due to the lack of standard empirical definitions of entrepreneurship. Measures focusing on small business activity, self-employment and startup rates suggest that Europe has higher rates of entrepreneurship than the United States. However, most business activity is not entrepreneurial in the Schumpeterian sense. Comparisons of rates of small business activity and self-employment are therefore not sufficient to measure potential differences in Schumpeterian entrepreneurship.