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on Entrepreneurship |
| By: | Fabio Moreno (SPRU, University of Sussex, UK ); Alex Coad (SPRU, University of Sussex, UK ) |
| Abstract: | High Growth Firms (HGFs) make a considerable contribution to economic growth, and in recent years they have received increasing interest from entrepreneurship scholars. By analysing recent findings in the literature of high growth firms, this study identifies some stylized facts, as well as contradictory findings, and also some unknowns regarding the determinants and internal strategies of HGFs, particularly on the persistence of their superior growth performance and the implications of recent findings for economic policy. |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2015-05&r=ent |
| By: | Calá, Carla Daniela ; Arauzo Carod, Josep Maria ; Manjón Antolín, Miguel C. |
| Abstract: | We address the question of what determines entrepreneurship in developing countries. In particular, because of the influence that this may have on the design of entrepreneurship policies, our main concern is whether the determinants of entrepreneurship are the same and/or have the same impact in developed and developing countries. To this end, we discuss the arguments put forward in the literature in support of the existence of differences in the determinants of entrepreneurship between developed and developing countries. We also analyse the results found in empirical studies on the determinants of formal firm entry (following the World Bank, our proxy of entrepreneurship) in developing countries and compare these results with those typically found in developed countries. Our main conclusion is that policy makers in developing economies should be careful when using evidence from developed countries to design entrepreneurship-promoting policies. Key words: entrepreneurship, developing countries. JEL: O1; O12; L26; M13 |
| Keywords: | Països en vies de desenvolupament, Desenvolupament econòmic, Emprenedoria, Empreses -- Creació, 33 - Economia, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/246964&r=ent |
| By: | Galina Vereshchagina (Arizona State University ) |
| Abstract: | This paper argues that the impact of credit constraints on the entrepreneurial activity and, via it, on economic development, crucially depends on the serial correlation in arrival of entrepreneurial ideas. Using an occupational choice model, it demonstrates that calibrating the serial correlation to match the amount of repeated entrepreneurship observed in the U.S., as opposed to assuming that arrivals of new entrepreneurial ideas are uncorrelated, reduces the impact of borrowing constraints on output per capita by more than fifty percent. The driving force behind this result is that people with past entrepreneurial experience tend to be richer and, thus, can implement new ideas more efficiently. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed014:1173&r=ent |
| By: | Jorge Guzman ; Scott Stern |
| Abstract: | A central challenge in the measurement of entrepreneurship is accounting for the wide variation in entrepreneurial quality across firms. This paper develops a new approach for estimating entrepreneurial quality by linking the probability of a growth outcome (e.g., achieving an IPO or a significant acquisition) as a function of start-up characteristics observable at or near the time of initial business registration (e.g., the firm name or filing for a trademark/patent). Our approach allows us to characterize entrepreneurial quality at an arbitrary level of geographic granularity (placecasting) and in advance of observing the ultimate growth outcomes associated with any cohort of start-ups (nowcasting). We implement this approach in Massachusetts from 1988-2014, yielding several key findings. First, consistent with Guzman and Stern (2015), we find that a small number of observable start-up characteristics allow us to distinguish the potential for a significant growth outcome: in an out-of-sample test, more than 75% of growth outcomes occur in the top 5% of our estimated quality distribution. Second, we propose two new economic statistics for the measurement of entrepreneurship: the Entrepreneurship Quality Index (EQI) and the Regional Entrepreneurship Cohort Potential Index (RECPI). We use these indices to offer a novel characterization of changes in entrepreneurial quality across space and time. For example, we are able to document changes in entrepreneurial quality leadership between the Route 128 corridor, Cambridge and Boston, as well as more granular assessments that allow us to distinguish variation in average entrepreneurial quality down to the level of individual addresses. Third, we find a high correlation between an index that depends only on information directly observable from business registration records (and so can be calculated on a real-time basis) with an index that allows for a two-year lag that allows the estimate of entrepreneurial quality to incorporate early milestones such as patent or trademark application or being featured in local newspapers. Finally, we find that the most significant “gap” between our index and the realized growth outcomes of a given cohort seem to be closely related to investment cycles: while the most successful cohort of Massachusetts start-ups was founded in 1995, the year 2000 cohort registered the highest estimated quality. |
| JEL: | C43 C51 C81 E27 L25 L26 R12 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20954&r=ent |
| By: | Cyrine Ben--Hafaïedh (IÉSEG School of Management,France ); Alessandra Micozzi (Università Politecnica delle Marche, Italy ); Pierpaolo Pattitoni (University of Bologna, Italy ) |
| Abstract: | Academic spin-offs (ASOs) are particular new technology-based firms (NTBFs) originating from public or university-based research institutions. One of their major challenges is to integrate scientific knowledge with the commercial knowledge in the entrepreneurial team (ET). The effect of ET composition on ASO performance has generally been examined through human capital theory or upper echelons theory. These traditional approaches have their merits and generally conclude to the necessity to add surrogate (external) entrepreneurs to the core team of academics. However, this would create a faultline, i.e. a divide between these two subgroups that negatively impacts team processes, and might explain why these artificially created ETs are not as successful as expected. We argue that a combination of these different lenses on ET composition and its relationship with performance may lead to a better understanding. Drawing on the human capital and upper echelons theories on the one hand and on the faultline theory on the other, we develop interaction hypotheses to test for their combined effect on a sample of 172 Italian ASOs. Our results permit to reveal the significant impact on performance of subtle compositional dimensions of the core academic ET that would have otherwise gone unnoticed. They also allow us to stress the importance of cognitive distance optimizers and show how they contribute not only to prevent the negative effects of diversity but also to create the preconditions for the positive effects. Theoretical and practical implications are drawn and future avenues of research suggested. |
| Keywords: | Entrepreneurial teams; faultline theory; human capital theory; academic spin-offs;performance |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1502&r=ent |
| By: | Catherine McLaughlin Adam Swinburn |
| Abstract: | This brief found that small businesses that continue to offer coverage will face changes in what plans are available to offer. As individual and Small Business Health Options Program (SHOP) exchanges are developed, employees of small businesses will likely receive more choices and more comprehensive coverage, possibly at more competitive prices. |
| Keywords: | Health Insurance, Small Businesses, Survey, Alabama, Colorado, Minnesota, New York, Oregon |
| JEL: | I |
| Date: | 2014–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:f11fbf115563400485f2ff04b71ca300&r=ent |
| By: | Douzounet Mallaye ; Koulké Blandine Nan-Guer ; Urbain Thierry Yogo ; Eurydice Tormal Gosngar |
| Abstract: | Using the third Chadian survey on consumption and the informal sector (ECOSIT III), this study aims to assess the relationship between education language choice and entrepreneurship in Chad. By education language choice, we mean the choice between education in Arabic and education in French. Specifically, the study seeks to evaluate the effect of language of instruction on self-employment. To achieve this objective, we make use of a recursive vicariate profit model to tackle the endogeneity of education choice. Moreover, the propensity score matching approach is also used to check for the robustness of results. Three main conclusions are derived from the analysis: first, those youth who choose Arabiclanguage education are more likely to be an entrepreneur. Second, youth are more likely to be self-employed in Chad. Third, the probability to be self-employed is higher for men than women. Based on this evidence, relevant recommendations are provided to help the Chadian government and their partners to help to design appropriate policies to foster youth entrepreneurship in Chad. |
| Keywords: | Entrepreneurship, Language, Education, Youth, Chad |
| JEL: | I20 J24 L26 M13 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:pmmacr:2015-02&r=ent |
| By: | Serena Frazzoni ; Maria Luisa Mancusi (Università Cattolica del Sacro Cuore ; Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore ); Zeno Rotondi ; Maurizio Sobrero ; Andrea Vezzulli |
| Abstract: | This paper assesses the role of relationship lending in explaining simultaneously the innovation activity of Small and Medium Enterprises (SME), their probability to export (i.e. the extensive margin) and their share of exports on total sales conditional on exporting (i.e. the intensive margin). We adopt a measure of informational tightness based on the ratio of firm’s debt with its main bank to firm’s total assets. Our results show that the strength of the bank-firm relation has a positive impact on both SME’s probability to export and their export margins. This positive effect is only marginally mediated by the SME’s increased propensity to introduce product innovation. We further discuss the financial and non-financial channels through which the intensity of bank-firm relationship supports SMEs’ international activities. |
| Keywords: | margins of export, bank-firm relationships, innovation, localized knowledge spillovers |
| JEL: | F10 G20 G21 O30 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie1:def018&r=ent |
| By: | Natarajan Balasubramanian ; Mariko Sakakibara |
| Abstract: | We examine the role of human capital in employees’ decisions to leave their parent firms andform spinouts. Using a large sample of individuals who formed spinouts in manufacturing industries between 1992 and 2005, and their co-workers who did not, we find that after controlling for age, education level, gender and alien status, individuals with higher human capital (measured as their earnings or experience) are more likely to form spinouts. We then examine the impact of industry opportunities and constraints on the propensity of high human capital individuals to form spinouts. Counterintuitively, we find that both industry constraints (measured as industry capital intensity) and opportunities (industry R&D intensity) reduce the propensity of higher human capital individuals to form spinouts. We interpret these results as being consistent with the argument that high human capital founders are more likely to choose larger, more capital-intensive projects than low human capital individuals, and thus face greater constraints. On the other side, R&D intensive industries appear to present abundant entrepreneurial opportunities, allowing low human capital individuals to identify their own opportunities thus decreasing the relative advantage of high human capital individuals. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-07&r=ent |
| By: | Fischer, Greg ; Karlan, Dean S. |
| Abstract: | We document the presence of multiple and varied constraints to small and medium firm growth. This presents both a practical problem for business training programs and a challenge to academic economists trying to identify mechanisms though which these programs may affect outcomes. External validity needs theory. This pushes researchers to narrowly defined and highly selected sample frames, which limits the potential for clear, generalizable policy prescriptions. Ultimately, larger samples, multi-arm evaluations, process documentation, and narrowly-focused, theory-supported empirical work are all needed, but the complexity of the problem limits what we learn from any single study. |
| Keywords: | entrepreneurship; entrepreneurship training; external validity |
| JEL: | B4 L2 M1 M2 M3 O1 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10431&r=ent |
| By: | Foellmi, Reto ; Legge, Stefan ; Tiemann, Alexa |
| Abstract: | This paper examines how trade liberalization affects investments in R&D at the firm level. In a model where entrepreneurs are heterogeneous in their wealth endowment, they rely differently on external funds. In the presence of capital market imperfections, this implies heterogeneous access to external funds such that poor entrepreneurs run smaller firms, are less likely to invest in R&D, and more likely to exit the market. Decreasing trade costs resulting from tariff reductions exacerbate these characteristics. Using firm-level panel data on seven Latin American countries for 2006 and 2010, we find support for our theoretical predictions. While recent studies emphasize a positive impact of trade liberalization on firms' productivity-enhancing activities, we provide novel evidence showing that financial constraints can impair the effect on R&D efforts. To address potential endogeneity concerns, we verify our findings using external financial dependence based on U.S. firms. These results suggest that imperfect capital markets can prevent welfare gains from trade liberalization to materialize. |
| Keywords: | financial constraints; innovation; trade liberalization |
| JEL: | F14 O12 O16 |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10391&r=ent |
| By: | Lazo, Lucita |
| Abstract: | The paper argues for increasing women`s economic opportunities in the APEC region and states that women`s participation in the economy is skewed toward micro and small enterprises and they are mostly self-employed entrepreneurs in the informal economy. It summarizes the challenges commonly encountered by women entrepreneurs in the APEC economies and recommends actions to address these at the Philippine economy level and at the APEC regional level. |
| Keywords: | APEC, Philippines, informal economy, women, micro and small enterprises |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2015-18&r=ent |
| By: | Driouchi, Ahmed ; Gamar, Alae |
| Abstract: | Entrepreneurship is an important intangible asset of nations. The relatively recent progress in its measurement, mainly with the Global Entrepreneurship Development Index (GEDI), suggests that previous questions related to its determinants and mainly its relationship to corruption namely the Corruption Perception Index (CPI) be re-addressed. The objective of the present paper is to assess the links between GEDI and CPI using the most recent (2013-2014) published data on world countries included in the GEDI. The relationships are estimated overall countries included in the GEDI and over groups of countries in relation to geographical continents and other subgrouping of economies. The attained results show consistently the positive effect of corruption reduction on GEDI and thus the positive relationship between an intangible good that is entrepreneurship and an intangible bad that is corruption. These results confirm that the recent available data are supportive of anti-corruption policies that are likely to favor the growth of entrepreneurial activities with promoting market development and hence ensuring the growth of both tangible and intangible components of the wealth of nations. |
| Keywords: | Keywords: Entrepreneurship; Corruption; Determinants; Anti-corruption policies |
| JEL: | L22 M13 O57 |
| Date: | 2015–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:62271&r=ent |
| By: | Llanto, Gilberto M. ; del Prado, Fatima |
| Abstract: | Private firms invest in physical capital and human resource but they are also advised to invest in innovations to be more productive and profitable. Innovations refer to the development, deployment, and economic utilization of new products, processes, and services. It is important for firms to know whether investment in innovations is investment well-spent. Our empirical results provided an affirmative response to the question raised in this paper: "Does innovation mediate good firm performance?" Product and process innovations lead to increase in sales and profits and improve labor productivity. The paper also showed that firm size, age, and foreign equity are important factors leading firms to innovate. |
| Keywords: | innovation, Philippines, process innovation, product innovation, firm performance, small and medium enterprises (SMEs) |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2015-06&r=ent |
| By: | Albiol, Judit ; Stel, André van |
| Abstract: | Following earlier work by Audretsch et al. (2002), we assume that an optimal size-class structure exists, in terms of achieving maximal economic growth rates. Such an optimal structure is likely to exist as economies need a balance between the core competences of large firms (such as exploitation of economies of scale) and those of smaller firms (such as flexibility and exploration of new ideas). Accordingly, changes in size-class structure (i.e., changes in the relative shares in economic activity accounted for by micro, small, medium-sized and large firms) may affect macro-economic growth. Using a unique data base of the EU-27 countries for the period 2002-2008 for five broad sectors of economic activity and four size-classes, we find empirical support which suggests that, on average for these countries over this period, the share of micro and large firms may have been ‘above optimum’ (particularly in lower income EU countries) whereas the share of medium-sized firms may have been ‘below optimum’ (particularly in higher income EU countries). This evidence suggests that the transition from a ‘managed’ to an ‘entrepreneurial’ economy (Audretsch and Thurik, 2001) has not been completed yet in all countries of the EU-27. Keywords: small firms, large firms, size-classes, macro-economic performance |
| Keywords: | Empreses -- Dimensió, Empreses petites i mitjanes, Grans empreses, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/246966&r=ent |
| By: | Welter, Friederike ; May-Strobl, Eva ; Wolter, Hans-Jürgen ; Günterberg, Brigitte |
| Abstract: | Im deutschen Sprachraum spricht man vom "Mittelstand" - international wird dagegen der KMU-Begriff verwandt. Aber beschreiben beide Begriffe dasselbe Phänomen? Dieser Beitrag analysiert die Begrifflichkeiten von Mittelstand und KMU sowie die Begriffe, die grundlegend für das Verständnis des Mittelstandsbegriffs sind: Unternehmen, Unternehmer und Selbstständigkeit. Bedeutsam für die Definition ist, dass der Mittelstand geprägt wird durch die Einheit von Eigentum und Leitung und nicht durch seine Größe. Daraus folgt, dass KMU fast immer zum Mittelstand gehören, der Mittelstand aber nicht auf KMU beschränkt ist: große familiengeführte Unternehmen zählen ebenso zum Mittelstand. Auch zeigt sich, dass sich infolge tiefgreifender Änderungen der Marktbedingungen und der Wirtschaftsstruktur der Mittelstand ausdifferenziert: er wird einerseits heterogener, unbeständiger und kleiner - andererseits aber auch internationaler und größer. Die Mitte dünnt aus. Dennoch ist Mittelstand kein Auslaufmodell. Im Gegenteil: Er ist ein Teil des wirtschaftlichen Strukturwandels und gestaltet ihn aktiv mit. |
| Abstract: | The term "Mittelstand" is a typical German label for a large part of the German enterprise population. Outside German-speaking countries, the term "SME" is more frequently used instead. Do both terms describe the same phenomenon? We analyze the terms and defini-tions of Mittelstand and SME as well as enterprise, entrepreneur and self-employment which are fundamental for the understanding of Mittelstand. We point out: (1) The basic characteris-tic of Mittelstand companies is that both property and management are united in one hand and (2) Mittelstand is not restricted by enterprise size. In conclusion, almost all SMEs belong to Mittelstand but there are large family owned and managed enterprises which qualify as Mittelstand too. Due to the current profound changes in market conditions and economic structure, the Mittelstand is in a process of becoming more diverse, volatile and smaller and at the same time more international and larger as before. Although, as a consequence, the medium layer of the German enterprise population shrinks in size, Mittelstand is not an obso-lete model but rather adapts to and creates economic change. |
| Keywords: | Mittelstand,KMU,Strukturwandel,German Mittelstand,SME,structural change |
| JEL: | L20 L26 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmmat:232&r=ent |