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on Entrepreneurship |
| By: | Mili Shrivastava (Entrepreneurship, Growth and Public Policy Group, Max Planck Institute of Economics, Jena); T.V.S.Ramamohan Rao (Indian Institute of Technology, Kanpur) |
| Abstract: | Spinoff firms are exceptional performers across industries. The causes for the emergence of spinoff firms are widely investigated in the literature. However, the role of teams for spinoffs has received little scholarly attention. On one hand, talented individuals may find it necessary to team up with others to utilize complementary knowledge and generate synergies. On the other hand, some types of team production environments may have dissonance and motivate individuals to leave the team. The present study demonstrates that organizational synergies and dissonance can be incorporated into appropriate specifications of team production functions. This framework explains the necessity to form a team, stability of teams, and the emergence of different types of spinoffs depending on specific organizational arrangements. |
| Keywords: | Organizational synergy, Production functions, Spinoffs |
| JEL: | D23 D85 D02 |
| Date: | 2010–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-060&r=ent |
| By: | Terttu Luukkonen |
| Abstract: | This report assesses the effectiveness of the supply and demand side policy initiatives in Finland targeted at pre-seed and seed stage businesses, particularly from the viewpoint of high-growth ventures. In order to obtain a yardstick by which to judge the current policy mix in Finland, this study focuses on systemic functions which these policies can be expected to fulfil to promote a viable high-growth entrepreneurial eco-system. When considering the features of major policy initiatives the study draws on analysis of venture capital policies and especially of typical failures in policy initiatives, as presented by Lerner (2009). The study assesses existing pre-seed and seed stage policy schemes and even though the present policy mix has successful elements, it also exhibits serious flaws in programme design and implementation, which may be counteractive to the achievement of the policy objectives. There is also a need to improve overall policy coordination and strategic leadership in the promotion of high-growth ventures. |
| Keywords: | venture capital -directed policy, |
| JEL: | G24 O38 |
| Date: | 2010–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1221&r=ent |
| By: | Andrea-Rosalinde Hofer; Jonathan Potter |
| Abstract: | Eastern Germany is well on its way to becoming a modern economy and developing its high growth potential. Start-ups and young businesses have become key contributors to the region’s growth due to their dynamism and their capacity to renew the local knowledge base. In the context of a global economic crisis, we need to reflect upon the role of start-ups and their capacity to contribute to local economic development. Over the last years, the entrepreneurship activity gap between western and eastern Germany has been significantly reduced, leading to almost equal levels in both parts of the country. The total business start-up rate in Germany, amongst the age group 18 to 64 years, was 1.7 percent in 2007. The entrepreneurial potential however, especially amongst the highly qualified, is far from being exhausted. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2010/10-en&r=ent |
| By: | Andrea-Rosalinde Hofer; Austin Delaney |
| Abstract: | Entrepreneurship is considered a key driver of economic growth and job creation all over OECD countries. Within this framework, promoting youth entrepreneurship is an area of growing policy interest for OECD national and local governments. Public policy can play an important role in stimulating motivations and entrepreneurial attitudes in young people and to provide the right set of skills to start-up and run a business. For framework conditions conducive to fostering the development of talents and youth entrepreneurship, taking appropriate action at the local level is of crucial importance… |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2010/11-en&r=ent |
| By: | Andrea-Rosalinde Hofer; Jonathan Potter; Alain Fayolle; Magnus Gulbrandsen; Paul Hannon; Rebecca Harding; Åsa Lindholm Dahlstrand; Phillip H. Phan |
| Abstract: | This report brings together findings from the case studies in Berlin and Rostock on how entrepreneurship support is organised, the activities in entrepreneurship education and start-up support, and the strategy behind. In addition, the report provides in its “fishing ideas from international good practice” section 13 short descriptions of how places and universities collaborate elsewhere in mobilising their talents for entrepreneurial action. These short case studies are intended to provide inspiration for both policy and local action on the key issues in making places conducive to entrepreneurship and innovation, in entrepreneurship education, and in making university entrepreneurship support systems work. |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2010/9-en&r=ent |
| By: | Yama Temouri (Aston Business School); Alexander Vogel (Institute of Economics, Leuphana University of Lüneburg, Germany); Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | This study reports results from an empirical investigation of business services sector firms that (start to) export, comparing exporters to firms that serve the national market only. We estimate identically specified empirical models using comparable enterprise level data from France, Germany, and the United Kingdom. Exporters are more productive and pay higher wages on average in all three countries. Results for profitability differ across borders – profitability of exporters is significantly smaller in Germany, significantly larger in France, and does not differ significantly in the UK. The results for wages and productivity hold in the years before the export start, which indicates self-selection into exporting of more productive services firms that pay higher wages. The surprising finding of self-selection of less profitable German business services firms into exporting does not show up among firms from France and the UK where no statistically significant relationship between profitability and starting to export is found. |
| Keywords: | Business services firms, exports, self-selection, France, Germany, UK |
| JEL: | F14 D21 L80 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:183&r=ent |
| By: | Wagner, Joachim (Leuphana University Lüneburg) |
| Abstract: | This paper investigates four cohorts of firms from German manufacturing industries that started to export in the years between 1998 and 2002 and follows them over the five years after the start. Export starters are a rare species and they are small on average compared to incumbent exporters. Between 30 percent and 40 percent of the starters became continuous exporters; some starters stepped out and back into exporting, many of them more than once. The share of total exports contributed by export starters of a cohort is tiny in the start year, and it remains so over the years to follow, although those starters that were exporters in year t+5 had a share of exports in total sales that was more than twice as high as the average share of exports in total sales among the export starters of the same cohort in year t. Contrary to the market selection hypothesis there is no evidence that productivity in the start year is systematically related to survival in the export market. There is no evidence for a negative impact of a smaller firm size in the start year on the chance to survive on the export market. Starting with a higher share of exports in total sales, however, tends to increase the probability to stay on the export market. |
| Keywords: | export starters, post-entry performance, Germany, enterprise panel data |
| JEL: | F14 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5183&r=ent |
| By: | Affuso, Antonio |
| Abstract: | Public support to firms has been a traditional and important industrial policy measure in many countries for several decades. One of the reasons for public intervention is the existence of market failures or imperfections. Informational asymmetries between borrowers and lenders of funds in particular are used to justify subsidies to firms, especially small and medium-sized enterprises. Within this framework, the main purpose of public subsidies is offsetting market imperfections. Although there is a great deal of literature on the effect of state aid in Italy, there is no agreement on its effectiveness. See Bagella and Becchetti (1998), Bronzini and De Blasio (2006) and Adorno, Bernini and Pellegrini (2007). These papers and many others focus on the effects on productivity, debt ratio, profitability and employment, but no empirical studies so far have analyzed the impact of public subsidies on credit rationing. This paper therefore makes a contribution to current empirical literature by examining the effects of public funding on credit rationing of small and medium-sized Italian firms. The basic idea of the paper is that public subsidies affect firms’ ability to obtain more funds. This is because incentive has a positive effect on investments, which, in turn, act negatively on credit rationing through collateralization. The problem of self-selection arises in this analysis, because in public financing programs, firms are selected on the basis of common characteristics. So subsidized firms and unsubsidized firms cannot be considered random draws. In order to overcome this problem, I use a Propensity Score Matching model. My results suggest that public subsidies reduce the probability of a firm being credit rationing. |
| Keywords: | C2; H2 |
| JEL: | H20 |
| Date: | 2010–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24874&r=ent |
| By: | Ergun Dogan; Koi Nyen Wong; Michael Meow-Chung Yap |
| Abstract: | Applying Foster, Haltiwanger and Krizan‟s (1998) decomposition of productivity growth method to Malaysian manufacturing census data for 2000 and 2005, we analyse if firm turnover by ownership (domestic versus foreign) has any impact on the sector‟s aggregate productivity growth. The findings show that turnover matters regardless of ownership but, more importantly, attracting foreign direct investment inflows could induce positive „net entry effect‟. The manufacturing sector‟s heavy dependence on FDI is underscored by the significant contribution of large MNCs to export value. Foreign entrants also have an important positive impact on sector productivity. The analysis shows that large-sized foreign and domestic entrants are more productive than medium-sized and especially small-sized ones. Among survivors, large foreign and domestic establishments fare the worst. Mediumsized domestic survivors, on the other hand, contribute the most to boosting sector productivity. The study demonstrates the usefulness of such an analytical framework by drawing out important implications for state industrial policies based on ownership and firm size. |
| Keywords: | Ownership, firm turnover; productivity; manufacturing; Malaysia |
| JEL: | D24 F14 L60 O12 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2010-13&r=ent |