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on Entrepreneurship |
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Issue of 2006‒12‒09
six papers chosen by Marcus Dejardin Facultes Universitaires Notre-Dame de la Paix |
| By: | Pernilla Andersson (SOFI, Stockholm University, SULCIS); Eskil Wadensjö (SOFI, Stockholm University, SULCIS and IZA Bonn) |
| Abstract: | In many countries unemployed people are helped to become self-employed. Selfemployment, however, does not necessarily lead to success. Many leave self-employment after a short period and the economic outcome varies greatly. It is important to learn more about the economic outcome for unemployed who become self-employed. In the first part of the paper we analyse who became self-employed in the period from 1999 to 2002 of Swedish-born men aged 20 to 60 years who were either wage-earners, unemployed or inactive in 1998. We find that the unemployed, and even more the inactive, are overrepresented among those who become self-employed. In the second part of the paper we study the economic outcome of self-employment in 2002 for Swedish-born men who were either unemployed, inactive or wage-earners in 1998. Economic outcome in 2002 is measured using income from self-employment and having employees in the firm. The estimations show that those who were wage earners in 1998 have higher incomes and are also employing other people in their business to a much higher extent in 2002 than those who in 1998 were unemployed or inactive. This indicates that support to unemployed to become self-employed should be implemented with great care. |
| Keywords: | self-employment, unemployment, inactive, occupational choice, occupational mobility, labour income, income |
| JEL: | J23 J24 J30 J60 J62 J68 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2402&r=ent |
| By: | Wennekers, S.; Thurik, A.R.; Stel, A.J. van; Noorderhaven, N. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Persistent differences in the level of business ownership across countries have attracted the attention of scientific as well as political debate. Cultural as well as economic influences are assumed to play a role. This paper deals with the influence of cultural attitudes towards uncertainty on the rate of business ownership across 21 OECD countries. First, the concepts of uncertainty and risk are elaborated, as well as their relevance for entrepreneurship. An occupational choice model is introduced to underpin our reasoning at the macro-level. Second, regression analysis using pooled macro data for 1976, 1990 and 2004 and controlling for several economic variables, yields evidence that uncertainty avoidance is positively correlated with the prevalence of business ownership. According to our model, a restrictive climate of large organizations in high uncertainty avoidance countries pushes individuals striving for autonomy towards self-employment. Regressions for these three years separately show that in 2004, this positive correlation is no longer found, indicating that a compensating pull of entrepreneurship in countries with low uncertainty avoidance may have gained momentum in recent years. Third, an interaction term between uncertainty avoidance and GDP per capita in the pooled panel regressions shows that the historical negative relationship between GDP per capita and the level of business ownership is substantially weaker for countries with lower uncertainty avoidance. This suggests that rising opportunity costs of self-employment play a less important role in this cultural environment, or are being compensated by increasing entrepreneurial opportunities. |
| Keywords: | Business Ownership;Uncertainty Avoidance;Cross Country Study;Comparative Analysis of Economies;Cultural Economics;Entrepreneurship; |
| Date: | 2006–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30009172&r=ent |
| By: | Uhlaner, L.M.; Thurik, A.R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart?s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates. |
| Keywords: | Comparative Analysis of Economies;Cultural Economics;Entrepreneurship;Self-employment;Macro-economic Analyses of Economic Development; |
| Date: | 2006–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30009163&r=ent |
| By: | Carree, M.A.; Thurik, A.R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | This paper investigates the impact of changes in the number of business owners on three measures of economic performance, viz. employment growth, GDP growth and labor productivity growth. Particular attention is devoted to the lag structure. The analysis is performed at the country level for 21 OECD countries. Our results confirm earlier evidence on three stages in the impact of entry on economic performance: an initial direct positive effect, followed by a negative effect due to exiting capacities and finally a stage of positive supply-side effects. The net effect is positive for employment and GDP growth. Changes in the number of business owners have no effect on labor productivity. |
| Keywords: | Business Ownership;Entrepreneurship;Economic Growth;Lag Structure; |
| Date: | 2006–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30009171&r=ent |
| By: | Magnus Lofstrom (University of Texas at Dallas and IZA Bonn); Chunbei Wang (University of Texas at Dallas) |
| Abstract: | This paper examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry utilizing the 1996 panel of the Survey of Income and Program Participation (SIPP). The data show that Mexican-Hispanics are less likely to be selfemployed as well as entering self-employment, relative to non-Hispanic whites. Importantly, we analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital "intensiveness", or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups. We show that the lower self-employment entry rates among Mexican- Hispanics are due to lower entry rates into business ownership of firms in relatively highbarrier industries. In fact, Hispanics are more likely to start-up a business in a low-barrier industry than whites. |
| Keywords: | self-employment, entrepreneurship, Hispanic |
| JEL: | J15 J23 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2422&r=ent |
| By: | Maria Jesus Nieto; Lluis Santamaria |
| Abstract: | This paper analyses technological collaboration as an input to the innovation processes of SMEs. Technological collaboration may be a useful mechanism to offset some of the weaknesses in SMEs’ resource endowments and bring their innovation capabilities closer to that of their large counterparts. The results, based on a large longitudinal sample of Spanish manufacturing firms, show that technological collaboration is a critical factor in improving the capabilities and innovativeness of SMEs. While a general bridging of the gap between the innovativeness of SMEs and large firms was observed, the most significant advance was in product rather than process innovations. |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wbrepe:wb066620&r=ent |