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on Entrepreneurship |
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Issue of 2014‒05‒24
seven papers chosen by Marcus Dejardin University of Namur and Universite' Catholique de Louvain |
| By: | Catia Batista (Nova School of Business and Economics - Universidade Nova de Lisboa); Tara McIndoe- Calder (Central Bank of Ireland); Pedro C. Vicente (Nova School of Business and Economics - Universidade Nova de Lisboa) |
| Abstract: | Does return migration affect entrepreneurship? This question has important implications for the debate on the economic development effects of migration for origin countries. The existing literature has, however, not addressed how the estimation of the impact of return migration on entrepreneurship is affected by double unobservable migrant self-selection, both at the initial outward migration and at the final inward return migration stages. This paper uses a representative household survey conducted in Mozambique in order to address this research question. We exploit variation provided by displacement caused by civil war in Mozambique, as well as social unrest and other shocks in migrant destination countries. The results lend support to negative unobservable self-selection at both and each of the initial and return stages of migration, which results in an under-estimation of the effects of return migration on entrepreneurial outcomes when using a ‘naïve’ estimator not controlling for self-selection. Indeed, ‘naïve’ estimates point to a 13 pp increase in the probability of owning a business when there is a return migrant in the household relative to non-migrants only, whereas excluding the double effect of unobservable self-selection, this effect becomes significantly larger - between 24 pp and 29 pp, depending on the method of estimation and source of variation used. |
| Keywords: | international migration, return migration, entrepreneurship, selfselection, business ownership, migration effects in origin countries, household survey, Mozambique, sub-Saharan Africa. |
| JEL: | F22 L26 O15 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1417&r=ent |
| By: | Colombo, Massimo G. (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Italy); Mohammadi, Ali (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lamastra, Cristina Rossi (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Italy) |
| Abstract: | Entrepreneurial ventures operating in high-tech industries are more and more adopting innovative business models, which are based on use of the market for ideas instead of the market for products or on the leveraging of communities of users and developers. A common characteristic of these innovative business models is their dependence on innovative technological knowledge and, consequently, on the ways in which intellectual property rights over this knowledge are designed (i.e., tight vs. loose appropriability regime). This chapter grounds on mainstream organizational design theories to speculate on how high-tech entrepreneurial ventures should organize internally to successfully implement these innovative business models. Specifically, it analyzes how firms’ structure, decision rights, and human resource management practices should be adapted to the need of generating, absorbing, and protecting innovative technological knowledge. Heeding a recent call in management literature, we will conduct our analysis considering organizational design variables both at the individual and firm level. |
| Keywords: | business model innovation; brganizational design; high-tech entrepreneurial ventures |
| JEL: | L17 L22 L26 O31 |
| Date: | 2014–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0366&r=ent |
| By: | Backman, Mikaela (Centre for Entrepreneurship and Spatial Economics (CEnSE) Center for Science and Innovation Studies (CESIS), Jönköping International Business School, Jönköping, Sweden); Karlsson, Charlie (Centre for Entrepreneurship and Spatial Economics (CEnSE) Center for Science and Innovation Studies (CESIS), Jönköping International Business School, Jönköping, Sweden) |
| Abstract: | In this paper, we analyse the determinants of the decision to become self-employed among commuters and non-commuters. In the entrepreneurship literature it is claimed that the rich-ness and quality of an individual’s business, professional and social networks play an im-portant role for the decision to become self-employed. People that commute between localities in the same region or between localities in different regions will most proba¬bly be able to develop richer personal networks than non-commuters, since they can develop network links both in the locality where they live and in the locality where they work. In this paper, we test this hypothesis using micro-data for around three million individuals in Sweden. As far as we know, this is the first time this hypothesis is tested. In our empirical analysis, we make a distinction between three groups of individuals: non-com¬muters, intra-regions commuter and inter-region commuters. For each of this groups we test how the probability of becoming self-employed is influenced by a number of characteristics of individuals, characteristics of home and work localities and regions. Our results indicate a significant difference between non-commuters and commuters in terms of the role of networks for becoming self-employed. On the one hand, we find for non-commuters that living and working in a locality with rich business networks reduce the probability of becoming self-employed. For commuters, on the other hand we find that working in a locality with rich business networks increase the probability to become self-employed. In this latter case, living in a municipality with rich business networks has a non-significant effect on the probability of becoming self-employed. Our results indicate that it is the business networks where people work, rather than where they live that exerts a positive influence on the probability of becoming self-employed. |
| Keywords: | entrepreneurship; individual attributes; regional attributes; networks; micro-level data |
| JEL: | C21 J24 L26 R12 |
| Date: | 2014–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0365&r=ent |
| By: | Francesca Castellani; Eduardo Lora |
| Abstract: | This paper provides a summary of the findings contained in a forthcoming issue of the Latin American Journal of Economics on entrepreneurship in Latin America as a vehicle for upward social mobility, especially for the middle class. The income persistence coefficients estimated with pseudo-panel data for Colombia, Ecuador, and Uruguay indicate that entrepreneurial activity is a channel of intergenerational mobility, while the estimates of asset persistence for Mexico using a special survey show that entrepreneurship increases mobility across generations. Although persistence coefficients do not indicate the direction of such mobility, the estimates of income differentials between entrepreneurs and non-entrepreneurs for Ecuador and Mexico lend support to the hypothesis that upward mobility dominates. |
| Keywords: | Income, Consumption & Saving, Business Development, Social Development, social mobility |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:81558&r=ent |
| By: | Arito Ono; Ryo Hasumi; Hideaki Hirata |
| Abstract: | This paper examines the ex-post performance of small and medium enterprises (SMEs) that obtained small business credit scoring (SBCS) loans, using a unique Japanese firm–bank matched dataset. The ex-post probability of default after the SBCS loan was provided significantly increased for SMEs that obtained an SBCS loan from a transactional lender. Also, the lending attitude of relationship lenders during the recent global financial crisis was more severe if a firm had received an SBCS loan from a transactional lender. These findings suggest that SBCS loans by transactional lenders are more prone to type II errors and detrimental to relationship lenders’ incentive to provide “liquidity insurance. |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:164441&r=ent |
| By: | Gabriele Pellegrino (Barcelona Institute of Economics - University of Barcelona, Barcelona); Mariacristina Piva (DISCE, Università Cattolica) |
| Abstract: | This paper investigates the determinants of the choice of different types of innovative input (R&D and technological acquisitions) and their relationship with different innovative outputs (product and process innovation), distinguishing between firms of different ages (mature vs young). In order to do so we apply a nonlinear structural model estimated on the third and fourth waves of the Italian Community Innovation Survey (CIS). We find that firm and market characteristics play a distinct role in boosting different types of innovation activities for firms of different ages. In particular, while methods of appropriability and international market exposure are relevant for both forms of innovative input, cooperation in innovation activities appears to be important for increasing the level of investment in R&D but not for technological acquisition. Moreover, young firms show a higher level of sensitivity than their mature counterparts to sources of information regarding innovation when we consider the magnitude of their innovative effort. On the contrary, factors such as methods of appropriability and support for innovation appear to be more important for enhancing the level of investment in both R&D and technological acquisitions for the mature firms only. Finally, the two innovative inputs appear to be equally important in determining both forms of innovative output for the two sub-samples of firms. |
| Keywords: | R&D; Technological acquisition; Innovative outputs; Young firms |
| JEL: | O31 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1497&r=ent |
| By: | Thorsten Beck; Haki Pamuk; Burak R. Uras |
| Abstract: | What is the relationship between entrepreneurial saving practices and reinvestment? We develop a model of entrepreneurial finance and show that entrepreneurial reinvestment decisions depend on the efficiency of saving practices. Utilizing a novel micro & small enterprise survey from Tanzania we test the empirical implications of this theory. We find (1) saving for business purposes and earnings reinvestment are positively related; (2) the practice of saving in a deposit account of a formal financial institution is more likely to facilitate reinvestment compared to the practice of keeping savings within the household. We also show that the negative impact of saving within-the-household on investment is more pronounced for family members with inherently low intra-household bargaining power - such as females and non-head household members. Our work contributes to the recent debate on the implications of saving instruments in developing countries, and suggests informal saving practices as potential barriers to microenterprise performance. |
| Keywords: | Micro- and small enterprises; savings; reinvestment; Tanzania |
| JEL: | D14 G21 O12 O16 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2014-15&r=ent |