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on Entrepreneurship |
| By: | Hvide, Hans K. (University of Aberdeen, Business School); Møen, Jarle (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration) |
| Abstract: | If entrepreneurs are liquidity constrained and cannot borrow to operate on an efficient scale, those with more personal wealth should do better than those with less wealth. We investigate this hypothesis using a unique dataset from Norway. Consistent with liquidity constraints being present, we find a strong positive relationship between founder prior wealth and start-up size. The relationship between prior wealth and start-up performance, as measured by profitability on assets, increases for the main bulk of the wealth distribution and decreases sharply at the top. We estimate that profitability on assets increases by about 8 percentage points from the 10th to the 75th percentile of the wealth distribution. This suggests an entrepreneurial production function with a region of increasing returns. Liquidity constraints may then stop entrepreneurs from being able to exploit a "hump" in marginal productivity. From the 75th to the 99th percentile returns drops by about 10 percentage points. This suggests that an abundance of liquidity may to do more harm than good. |
| Keywords: | Entrepreneurship; Household Finance; Private benefits; Start-ups; Wealth |
| JEL: | G14 L26 M13 |
| Date: | 2007–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2007_021&r=ent |
| By: | Silvia Magri (Banca d’Italia) |
| Abstract: | Small firms encounter difficulties in raising external finance owing to greater information problems. For small innovative firms, whose activity is more difficult to evaluate, the cost of external finance could be even higher. This paper examines special features of the financial structure of small innovative firms, compared with firms of similar size that do not innovate. The evidence shows that small innovators rely less on financial debt and more on internal financial resources; no important differences appear for large firms. This is consistent with the view that informational problems mainly affect small firms; large firms, even when they innovate, continue to rely on their traditional set of financial instruments. Another finding is that in small innovative firms investment is less sensitive to cash flow than in small non-innovative firms, probably because the high incidence of internal financial resources allows them more flexibility in deciding their investments. No comparable difference is found between innovative and non-innovative large firms. |
| Keywords: | corporate finance, innovative firms, investment dynamics |
| JEL: | D92 G32 O31 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_640_07&r=ent |
| By: | De Cleyn S.; Braet J. |
| Abstract: | The research domain of innovation and entrepreneurship is relatively young and fragmented. Therefore, no consensus exists on the definition of the main concepts. This paper intends to both elucidate (the differences between) the concepts of ‘spinoff’ and ‘spin-out’ and, starting from existing literature typologies, to integrate several existing spin-off taxonomies, classifications and typologies in order to create a clear and complete framework for further research. This way, 10 different ‘ideal’ spin-off and spin-out types will be defined. The resulting integrated typology will be illustrated in view of its practical and theoretical implications. |
| Date: | 2007–05 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2007008&r=ent |
| By: | Silva, Maria José; Leitão, João |
| Abstract: | This paper aims to identify the nature of the relationships that are established amongst agents who co-operate in terms of innovation practices. It analyses whether the entrepreneurial innovation capability of firms is stimulated through the relationships developed with external partners. The data of 2nd Community Innovation Survey of EUROSTAT is used in a logistic model. In the estimation process of the Logit function, the entrepreneurial innovation capability is considered as the answer variable. The scientific agents who cooperate in terms of innovation activities impact, positively, on the propensity to engage in innovative advances revealed by the firms, at the level of product innovation. The paper presents policy implications, which may be used in the design of public policies for fostering open innovation networks between scientific agents and firms. |
| Keywords: | Innovation; Networks; Entrepreneurial Innovation Capability. |
| JEL: | O32 I28 O31 I23 |
| Date: | 2007–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5215&r=ent |
| By: | Kiederich A. |
| Abstract: | While researchers have extensively studied the born global and international new venture phenomena, the related field of NTBF internationalization has been left untouched, giving rise to an investigation aimed at filling this gap in the international business literature. The investigation covers the impact that internationalization has on performance, the process of internationalization and the antecedents of successful internationalization. Being conceptual in nature, this paper lays the theoretical foundation for future empirical research on NTBF internationalization. The theory development is based on an analysis of several factors, including organizational and environmental characteristics, founders, financing, ownership and network ties of NTBFs. |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2007005&r=ent |
| By: | Mo Xiao (Eller College of Management, University of Arizona); Peter F. Orazem (Department of Economics, Iowa State University); |
| Abstract: | Past empirical literature provides strong evidence that competition increases when new firms enter a market. However, rarely have economists been able to examine how competition changes with the threat of entry. This paper uses the evolution of the zip code level market structure of facilities-based broadband providers from 1999 to 2004 to investigate how a firm adjusts its entry strategy when facing the threat of additional entrants. We identify the potential entrant into a local market as threatened when a neighboring market houses more than firms providing broadband services. We first document that such a market is more likely to accommodate more than firms in the long run. Taking account of endogeneity of entry into neighboring markets, we find that the first 1 to 3 entrants significantly delay their entrance into an open local market facing entry threat. We do not find evidence of delayed entry for firms following the 3rd entrant. The evidence suggests that the mere threat of entry may curb market power associated with oligopolistic market structure. |
| Keywords: | Entry, Entry Threat, Broadband Providers |
| JEL: | L13 L8 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:0709&r=ent |