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on Entrepreneurship |
| By: | P.D. Koellinger (Erasmus School of Economics, Erasmus University Rotterdam); A.R. Thurik (Erasmus School of Economics, Erasmus Universiteit Rotterdam) |
| Abstract: | We study the cyclical pattern of entrepreneurial activity. Results across 22 OECD countries for the period 1972-2007 show that entrepreneurial activity is a leading indicator of the business cycle in a Granger-causality sense. This contradicts existing theoretical hypotheses which predict that entrepreneurship is pro-cyclical or not cyclical. We discuss possible causes and implications of this finding. |
| Keywords: | Entrepreneurship; business cycle |
| JEL: | L26 E32 |
| Date: | 2009–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20090032&r=ent |
| By: | Bianchi, Milo |
| Abstract: | In this paper, we formalize the view that economic development requires high rates of productive entrepreneurship, and this requires an efficient matching between entrepreneurial talent and production echnologies. We first explore the role of financial development in promoting such efficient allocation of talent, which results in higher production, job creation and social mobility. We then show how different levels of financial development may endogenously arise in a setting in which financial constraints depend on individual incentives to misbehave, these incentives depend on how many jobs are available, and this in turn depends on the level of financial development. Such complementarity between labour market and financial marketdevelopment may generate highly divergent development paths even for countries with very similar initial |
| Keywords: | credit constraints; allocation of entrepreneurial talent; productive and unproductive entrepreneurs; economic development |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2009-20&r=ent |
| By: | Weber, Richard; Graevenitz, Georg von; Harhoff, Dietmar |
| Abstract: | Entrepreneurship education ranks highly on policy agendas in Europe and the US, but little research is available to assess its impacts. In this context it is of primary importance to understand whether entrepreneurship education raises intentions to be entrepreneurial generally or whether it helps students determine how well suited they are for entrepreneurship. We develop a theoretical model of Bayesian learning in which entrepreneurship education generates signals which help students to evaluate their own aptitude for entrepreneurial tasks. We derive predictions from the model and test them using data from a compulsory entrepreneurship course at a German university. Using survey responses from 189 students ex ante and ex post, we find that entrepreneurial propensity declined somewhat in spite of generally good evaluations of the class. Our tests of Bayesian updating provide support for the notion that students receive valuable signals and learn about their own type in the entrepreneurship course. |
| Keywords: | entrepreneurship; entrepreneurship education; Bayes’ Rule; learning; signals |
| JEL: | D83 J24 L26 M13 |
| Date: | 2009–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:10966&r=ent |
| By: | Robin Douhan (Research Institute of Industrial Economics (IFN) and Uppsala University); Mirjam van Praag (University of Amsterdam, Amsterdam Center for Entrepreneurship, Max Planck Institute of Economics, IZA) |
| Abstract: | We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to human capital than employees. We present an intuitive model showing that more control (observation 1) may be an explanation for higher returns (observation 2); its main outcome is that returns to ability are higher in higher control environments. This provides a theoretical underpinning for the control-based explanation for higher returns to human capital for entrepreneurs. |
| Keywords: | Entrepreneurship; Ability; Occupational Choice; Human Capital; Wage Structure |
| JEL: | L26 I20 J24 J31 |
| Date: | 2009–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20090055&r=ent |
| By: | Alexander Popov (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Peter Roosenboom (Department of Finance, Rotterdam School of Management (RSM), Erasmus University Rotterdam, Burgemeester Oudlaan 50, NL 3062PA Rotterdam, The Netherlands.) |
| Abstract: | Using a comprehensive database of European firms, we study how private equity affects the rate of firm entry. We find that private equity investment benefits new business incorporation, especially in industries with naturally higher entry rates and R&D intensity. A two standard deviation increase in private equity investment explains as much as 5.5% of the variation in entry between high-entry and low-entry industries. We address endogeneity by exploiting data on laws that regulate private equity investments by pension funds. Our results hold when we correct for barriers to entry, general access to credit, protection of intellectual property, and labor regulations. JEL Classification: G24, L26, M13. |
| Keywords: | private equity, venture capital, firm entry. |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20091078&r=ent |
| By: | L. Mengoni |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:bol:prinwp:005&r=ent |
| By: | Isabel Pizarro (Department of Business Administration, Universidad Pablo de Olavide); Juan C.Real (Department of Business Administration, Universidad Pablo de Olavide); M.Dolores de la Rosa (Department of Business Administration, Universidad Pablo de Olavide) |
| Abstract: | The objective of the present study is to analyze the role played by the entrepreneurial culture of the organization and the value and uniqueness of employees’ knowledge (human capital) in generating innovation. This research has been conducted with a sample of companies in the most innovative sectors of Spanish industry, applying the Partial Least Squares (PLS) technique. The results demonstrate significant relationships between innovation and the two dimensions of the human capital .We have also found that entrepreneurial culture acts as a moderating variable between human capital and innovation, in the way that employees of high value generate more innovation in the presence of this type of culture. |
| Keywords: | Innovation; human capital; entrepreneurial culture |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpbsad:09.02&r=ent |
| By: | Naude, Wim |
| Abstract: | In this paper I empirically investigate the early international entrepreneurship of indigenous Chinese firms using data on 3,948 firms surveyed by the World Bank in 2002-03. I find important differences in the extent and motivation of early internationalization between indigenous and foreign-invested Chinese firms. Despite having started with internationalization relatively more recently than most foreign-invested firms, and despite having much less least foreign experience (only 1.3 years, on average, versus nine years) than foreign-invested firms, indigenous firms who internationalize early were found to perform better than foreign-invested firms. They may be .rushing in. to international markets, but so far this seems to be paying off quite |
| Keywords: | international entrepreneurship, international new ventures, exports, China |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2009-27&r=ent |
| By: | Love, Inessa; Sanchez, Susana M. |
| Abstract: | This paper uses two recently completed surveys of individual entrepreneurs (farmers and microentrepreneurs) and registered enterprises (agricultural and nonagricultural) operating in Mexico’s rural sector to provide new evidence about the factors influencing the incidence of credit constraints and investment behavior. To measure the incidence of credit constraints, the authors use self-reported information on whether economic agents have a demand for loans, separating formal and informal markets. They define credit constraints as a situation where rural agents report an unsatisfied demand for loans (formal or informal), which originates from rural agents having projects that are too risky or from impediments hindering the ability of rural agents and lenders to reduce information asymmetries. The authors find that the self-reported demand for loans is low. Nevertheless, the incidence of credit constraints is pervasive, especially among individual entrepreneurs. The low use of loans has consequences for the amount of investments that occur in the rural economy, posing a major obstacle to Mexico’s convergence towards its NAFTA partners. The empirical analysis, which includes proxies of business prospects and creditworthiness, shows that improving the availability of loans to credit constrained agents would increase the number of agents making investments and their investment to capital ratios. |
| Keywords: | Access to Finance,,Debt Markets,Bankruptcy and Resolution of Financial Distress,Banks&Banking Reform |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5014&r=ent |
| By: | Jonathan Zinman (Dartmouth College & Innovations for Poverty Action); Dean Karlan (Economic Growth Center, Yale University, Innovations for Poverty Action, MIT Jameel Poverty Action Lab) |
| Abstract: | Microcredit seeks to promote business growth and improve well-being by expanding access to credit. We use a field experiment and follow-up survey to measure impacts of a credit expansion for microentrepreneurs in Manila. The effects are diffuse, heterogeneous, and surprising. Although there is some evidence that profits increase, the mechanism seems to be that businesses shrink by shedding unproductive workers. Overall, borrowing households substitute away from labor (in both family and outside businesses), and into education. We also find substitution away from formal insurance, along with increases in access to informal risk-sharing mechanisms. Our treatment effects are stronger for groups that are not typically targeted by microlenders: male and higher-income entrepreneurs. In all, our results suggest that microcredit works broadly through risk management and investment at the household level, rather than directly through the targeted businesses. |
| Keywords: | microfinance, microcredit, microentreprenuership, risk sharing, formal and informal finance |
| JEL: | O1 D1 D2 G2 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:976&r=ent |
| By: | Wladimir Raymond; Pierre Mohnen; Franz Palm; Sybrand Schim van der Loeff |
| Abstract: | This paper studies the dynamic relationship between input and output of innovation in Dutch manufacturing using an unbalanced panel of enterprise data from five waves of the Community Innovation Survey during 1994-2004. We estimate by maximum likelihood a dynamic panel data bivariate tobit with double-index sample selection accounting for individual effects. We find persistence of innovation input and innovation output, a lag effect of the former on the latter and a feedback effect of the latter on the former. The lag effect remains significant in the high-tech sector even after four years. Firm and industry effects are also important. <P>Dans cette étude nous estimons une fonction de production de l’innovation dynamique sur base des données de panel de cinq vagues d’enquêtes d’innovation communautaires (CIS) aux Pays-Bas couvrant la période 1994 à 2004. Nous estimons par maximum de vraisemblance un modèle tobit bivarié avec une double sélection et prise en compte des effets individuels. Nous trouvons une persistence dans l’innovation tant au niveau de l’intrant que de l’extrant et des effets de retard croisés entre les deux. Les retards perdurent au-delà de 4 ans dans le secteur high-tech. Les effets individuels et les effets particuliers aux industries sont également significatifs. |
| Keywords: | innovation production function, panel data, CIS data, bivariate dynamic tobit, Netherlands, fonction de production de l’innovation, données de panel, tobit bivarié dynamique, Pays-Bas |
| JEL: | C33 C34 O31 |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2009s-29&r=ent |