Entrepreneurship can take various forms, and not everything labelled as ‘entrepreneurial’ is actually desirable. In this context, a key question concerns the activities entrepreneurs pursue in order to create value, which as argued by W. Baumol, points to the necessity to distinguish between productive, unproductive and destructive entrepreneurship. According to entrepreneurship literature, however, no consensus on the determinants of these concepts exists. The main reason for this is that in reality a few activities among, for example rent seeking, make absolutely no contributions to economy output.

Drawing on Baumol’s concepts and relevant amendments, this paper aims to contribute to the entrepreneurship literature by developing a conceptual framework allowing to operationalise productive, unproductive and destructive entrepreneurship for empirical assessment. Furthermore, authors make one of the first attempts to address the concepts empirically.