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on Entrepreneurship |
| By: | Nagler, Paula (Maastricht University); Naudé, Wim (Maastricht University) |
| Abstract: | Africa is not only the poorest and most rural continent, it is also the most youthful continent in terms of population. Given the large number of young job seekers that will enter the labor market over the next decade, we need a better understanding of rural non-farm entrepreneurship, particularly with regard to the role of young adults in this sector. This paper contributes to the literature by providing empirical evidence on (i) the prevalence of enterprises operated by young adults and the contribution they make to rural household income, the (ii) determinants of enterprise operation, and (iii) labor productivity in enterprises operated by young owners. Using the World Bank's recent LSMS-ISA database that covers six countries in Sub-Saharan African, we find that young adults present a lower share of enterprise owners and derive less income from it. Using a Heckman selection model and panel data analysis, we further find that young household head have a lower likelihood of operating and enterprise and if they operate one, these enterprises are less productive than those of older adults. We conclude that policies to support young entrepreneurs in rural Africa should not only focus on creating conditions that attract young adults to start enterprises, but to also enable young entrepreneurs to improve productivity in already existing enterprises. If these enterprises grow and survive, they can provide a part of the growing number of non-farm jobs that will be needed in Africa's rural areas. |
| Keywords: | entrepreneurship, labor markets, productivity, rural development, Sub-Saharan Africa, youth employment |
| JEL: | J43 L26 M13 O55 O13 Q12 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8564&r=ent |
| By: | Andersson Joona, Pernilla (SOFI, Stockholm University) |
| Abstract: | Previous studies, mostly from Anglo-Saxon countries, find a positive correlation between the presence of young children in the household and self-employment probabilities among women. This has been seen as an indication of women with young children choosing self-employment as a way of balancing work and family commitments. This paper studies the relationship between children and female self-employment in a country with family friendly policies and a generous welfare system: Sweden. The initial hypothesis is that we will not find evidence of a positive effect of children on self-employment among Swedish women since there are other institutions in place aiming at facilitating the combination of work and family. Using Swedish register data for the period 2004-2008 we do, however, find that the presence of young children increases the probability of choosing self-employment also among Swedish women. The effect is strongest for women with very young children, 0-3 years of age. These results also hold in a panel data model that takes individual unobserved heterogeneity into account. We also analyze time-use data and find, contrary to what has been found in many other countries, that self-employed women spend more, or as much, time on market work than wage-earning women. This raises doubts about whether women in Sweden chose self-employment as a way of balancing work and family commitments. We suggest an alternative interpretation which is that women who chose self-employment while the children are young in fact are women with strong preferences for market work. |
| Keywords: | work, family, self-employment, fertility |
| JEL: | J22 L26 J13 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8486&r=ent |
| By: | Paolo DI Martino; Michelangelo Vasta |
| Abstract: | This paper analyses the structure of Italian capitalism during the post-WWII economic miracle by focusing on the governance and management of small and medium firms. Using innovative sources, the paper shows that poorly conceived and/or enforced laws and legislation created incentive for business owners to be stockholders rather than stakeholders of their firms. This attitude emerges in two areas. Firstly, Italian business owners adopted structures of governance aimed only at protecting insiders, often at the expense of firms’ development. Secondly, in Italy business consultants had a unique and wide role in the management of firms, and acted to protect the benefits of insiders rather than the interests of the company. These two issues also contribute to explain the well-known problem of the dwarfism of Italian firms and the scarce capacity to innovate. |
| JEL: | N44 K22 L25 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:698&r=ent |
| By: | Charles I. Jones; Jihee Kim |
| Abstract: | Top income inequality rose sharply in the United States over the last 35 years but increased only slightly in economies like France and Japan. Why? This paper explores a model in which heterogeneous entrepreneurs, broadly interpreted, exert effort to generate exponential growth in their incomes. On its own, this force leads to rising inequality. Creative destruction by outside innovators restrains this expansion and induces top incomes to obey a Pareto distribution. The development of the world wide web, a reduction in top tax rates, and a decline in misallocation are examples of changes that raise the growth rate of entrepreneurial incomes and therefore increase Pareto inequality. In contrast, policies that stimulate creative destruction reduce top inequality. Examples include research subsidies or a decline in the extent to which incumbent firms can block new innovation. Differences in these considerations across countries and over time, perhaps associated with globalization, may explain the varied patterns of top income inequality that we see in the data. |
| JEL: | E2 J3 O4 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20637&r=ent |
| By: | Andres Rodríguez-Pose; Daniel Hardy |
| Abstract: | British regions are becoming increasingly culturally diverse, with migration as the main driver. Does this diversity benefit local economies? This research examines the impact of cultural diversity on the entrepreneurial performance of UK regions. We focus on two largely overlooked factors, the measurement of diversity, and the skills composition of diverse populations. First, more that demonstrating the importance of cultural diversity for entrepreneurship, we show that the type of cultural diversity measured is a decisive factor. Second, the skill composition of diverse populations is also key. Diversity amongst the ranks of the highly skilled exerts the strongest impact upon start-up intensities. The empirical investigation employs spatial regression techniques and carriers out several robustness checks, including instrumental variables specifications, to corroborate our findings. |
| Keywords: | Entrepreneurship, cultural diversity, high-skilled migration, knowledge spillovers |
| JEL: | J24 L26 M13 F22 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1423&r=ent |
| By: | René Bohnsack (University of Amsterdam Business School - University of Amsterdam Business School); Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam) |
| Abstract: | Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and overcome the barriers that stand in the way of their market penetration. A key issue is the respective impact of incumbent and entrepreneurial firms' path-dependent behaviour on the development of such new business models. Embedded in the literature on business models, this paper explores how incumbent and entrepreneurial firms' path dependencies have affected the evolution of business models for electric vehicles. Based on a qualitative analysis of electric vehicle projects of key industry players over a five-year period (2006-2010), the paper identifies four business model archetypes and traces their evolution over time. Findings suggest that incumbent and entrepreneurial firms approach business model innovation in distinctive ways. Business model evolution shows a series of incremental changes that introduce service-based components, which were initially developed by entrepreneurial firms, to the product. Over time there seems to be some convergence in the business models of incumbents and entrepreneurs in the direction of delivering economy multi-purpose vehicles. |
| Keywords: | Sustainable technology; business models, evolution; path dependencies; electric vehicles |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00936886&r=ent |
| By: | Jonathan Bainée (UEA - Unité d'Économie Appliquée - ENSTA ParisTech, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne) |
| Abstract: | Entrepreneurship and, thus, small- and middlesized firms (SMEs) have had a growing interest for the past two decades, from the academic world as well as from public authorities. This interest is part of many economic changes. In particular, technological change and the increasing incidence of innovation in most developed countries have reduced the importance of the size of the companies in the industry and favored the development of entrepreneurial activities. In addition, globalization would have dragged the comparative advantages of North American and European countries toward knowledge-based activities, while the "knowledge-based economy" would be relatively more conducive to entrepreneurship and to SMEs. The issues in terms of ability to manage the creation, transition, and business development are primordial, both in their qualitative and quantitative dimension. It is in this context, conducive to new needs of knowledge, that emerge entrepreneurship teachings designed to inspire and enable individuals to start and to grow entrepreneurial ventures. They can be addressed in two steps. First, a historical approach will show how teachings in entrepreneurship have evolved in their implementation based on a double dynamic of empowerment and "complication" of training programs in entrepreneurship, which seems structured around the controversy over the ability to learn to undertake business or initiate the risk culture. Second, practical teaching methods of entrepreneurship will be analyzed, making sure to highlight the multifaceted reality of innovative approaches and actions through an international benchmark conducted by the PIMREP (ParisTech Innovation Management Research and Education Program) network (PIMREP 2010, 2011) |
| Keywords: | Entrepreneuriat ; management de l'innovation ; enseignements ; Eco-système |
| Date: | 2013–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00980385&r=ent |
| By: | McCann, Fergal (Central Bank of Ireland); McIdnoe-Calder, Tara (Central Bank of Ireland) |
| Abstract: | The detrimental impacts of credit booms, property booms and firm over-leverage are well-established in a growing literature highlighting their effects on household consump- tion, firm investment and economic growth. The link between credit-fuelled property market booms and firms' ability to service their debts has however up to this point not been studied. Using a unique data set on the property and "core" enterprise debts of Irish Small and Medium Enterprises (SMEs) at December 2013, we highlight the extent to which Irish non-real-estate SMEs have borrowed for property investment purposes. We show that the existence of such property-related debts is a crucial determinant of the probability of SME loan default, suggesting a large property-related debt overhang for these firms. We extend the analysis by showing that the intensity of firms' property- related borrowings has an additional impact on the probability of loan default. In doing so, we highlight an additional channel through which credit-driven property booms can have long-lasting harmful eects on economic growth prospects. |
| Keywords: | Property markets, SMEs, credit risk, firm leverage. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:14/rt/14&r=ent |
| By: | Juana Sanchez |
| Abstract: | This paper uses new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011 to relate the discrete innovation choices made by U.S. companies to features of the company that have long been considered to be important correlates of innovation. We use multinomial logit to model those choices. Bloch and Lopez-Bassols (2009) used the Community Innovation Surveys (CIS) to classify companies according dual, technological or output-based innovation constructs. We found that for each of those constructs of innovation combinations considered, manufacturing and engaging in intellectual property transfer increase the odds of choosing innovation strategies that involve more than one type of categories (for example, both goods and services, or both tech and non-tech) and radical innovations, controlling form size, productivity, time and type of R&D. Company size and company productivity as well as time do not lean the choices in any particular direction. These associations are robust across the three multinomial choice models that we have considered. In contrast with other studies, we have been able to use companies that do and companies that do not innovate, and this has allowed to rule out to some extent selectivity bias. |
| Keywords: | Innovation, R&D, productivity, intellectual property, generalized logistic regression, choice models |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-42&r=ent |
| By: | Alberto González Pandiella |
| Abstract: | Policy efforts to revitalise entrepreneurship and investment in Spain are key to generating growth and new jobs. The government has a substantial reform program to make it easier to do business in Spain, which should in some cases be deepened. Boosting economic growth requires a new generation of high-growth companies and that resources flow towards the most productive firms. For this to happen, barriers to business growth have to be reduced by streamlining regulations and licencing procedures, internationalisation needs to be fostered, and competition strengthened. In addition, the negative impact of the crisis on companies, notably the high level of indebtedness and difficulties to obtain financing faced by some firms has to be relieved. This would be facilitated by more efficient insolvency procedures and further development of non-bank financing.<P>Dynamiser le secteur des entreprises en Espagne<BR>Les efforts faits par les autorités pour revitaliser l’entrepreneuriat et l’investissement en Espagne revêtent un rôle essentiel pour soutenir la croissance et la création d’emplois. Un important programme de réformes a été mis en oeuvre afin de faciliter l’activité d’entreprise en Espagne, dont certains aspects devraient être approfondis. Pour stimuler la croissance économique, il faut que voit le jour une nouvelle génération d’entreprises à forte croissance et que des ressources soient acheminées vers les entreprises les plus productives. Dans cette optique, les obstacles à la croissance des entreprises doivent être réduits en simplifiant les réglementations et les procédures d’agrément, l’internationalisation doit être encouragée et la concurrence doit être renforcée. En outre, les effets négatifs de la crise sur les entreprises, notamment le niveau élevé d’endettement et les difficultés rencontrées pour obtenir des financements, doivent être atténués, ce qui exige des procédures d’insolvabilité plus efficaces et un développement plus marqué des financements non bancaires. |
| Keywords: | venture capital, firm size, productivity, electricity, entrepreneurship, competitiveness, Spain, internationalisation, ports, constant market share analysis, judicial efficiency, insolvency, competition, exports, regulation, professional services, regulators, structure effect, licences, mutual guarantee schemes, young firms, business sector, credit register, trade specialisation, indebtedness, market share effect, corporate tax, ports, analyse des parts de marché constantes, effet de la structure, régulateurs, sociétés de caution mutuelle, secteur des entreprises, spécialisation du commerce, capital risque, certifications, effet de part de marché, services professionnels, endettement, impôt des sociétés, registre de crédit, électricité, insolvabilité, internationalisation, jeunes entreprises, efficacité judiciaire, réglementation, Espagne, compétitivité, entrepreneuriat, exportations, productivité, concurrence, taille des firmes |
| JEL: | D21 D40 F10 G21 G24 G33 H25 K20 L11 L12 L25 L50 |
| Date: | 2014–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1173-en&r=ent |
| By: | Marcela Eslava; Alessandro Maffioli; Marcela Meléndez |
| Abstract: | Whether public lending to firms effectively eases credit constraints has been widely studied for very small businesses. The evidence documented for larger firms refers to lending that is significantly subsidized and targeted to these businesses, so the estimated positive effects may reflect poor allocation of public credit. This paper investigates the impact on its beneficiaries of a wide, untargeted and unsubsidized, lending program in Colombia. We use data on all non-micro manufacturing firms and all formal credit operations. After correcting for potential selection biases using econometric techniques, we find that Bancóldex loans increase firms’ employment, purchases of inputs, investment, and output for small (but non-micro) firms, while large firms experience increases in variable inputs, but not on investment. While both short-term and long-term Bancóldex loans are found to have positive impacts on output, input demand and employment, only long-term loans increase investment. Moreover, short-term loans have a larger impact on input demand than long-term loans. Our findings also indicate that Bancóldex’ beneficiaries end up with improved overall credit conditions after receiving Bancóldex credit: the amount of credit received goes up, the duration of the loans increases, and beneficiaries are able to establish credit relationships with more financial intermediaries. Though the interest rates go down, in this dimension the effect is small. |
| Keywords: | Credit constraints, public development banks, firm growth |
| JEL: | G28 H43 L25 O12 O54 |
| Date: | 2014–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:012277&r=ent |
| By: | Crespi G.A.; Tacsir E.; Vargas F. (UNU-MERIT) |
| Abstract: | This paper analyses and compares the determinants of innovation in the service industry and its impact on labour productivity at the firm level in three countries of Latin America Chile, Colombia, and Uruguay. The main findings show that, similar to what is observed in the manufacturing industry, service firms that invest the most in innovation activities are more likely to introduce changes or improvements in their production process and/or product mix, and those firms that innovate have higher labour productivity than non-innovative firms. Size was found to be a less relevant determinant of innovation in services than in manufacturing, suggesting that the need for infrastructure and associated sunk costs are lower in services. Conversely, cooperation was found to be far more important for innovation in services than in manufacturing, in line with the more interactive nature of innovation in services. Yet, large differences in statistical significance and size of the coefficients of explanatory variables among the countries studied suggest that the framework conditions where a firm operates have an important role in innovation decisions. |
| Keywords: | Microeconomic Analyses of Economic Development; Industrialization; Manufacturing and Service Industries; Choice of Technology; Innovation and Invention: Processes and Incentives; Technological Change: Choices and Consequences; Diffusion Processes; Economic Growth and Aggregate Productivity: General; Economywide Country Studies: Latin America; Caribbean; |
| JEL: | O12 O14 O31 O33 O40 O54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014069&r=ent |
| By: | André van Stel; Jolanda Hessels; Tommy Span |
| Abstract: | This report is part of the research program “SMEs and Entrepreneurship” which is financed by the Dutch Ministry of Economic Affairs. |
| Date: | 2014–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201407&r=ent |