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on Entrepreneurship |
| By: | Naudé, Wim (Maastricht University); Siegel, Melissa (Maastricht University); Marchand, Katrin (Maastricht University) |
| Abstract: | We provide an assessment of the state of scholarly and policy debates on migrant entrepreneurs in development. They are often described as super-entrepreneurs who contribute to development through (i) being more entrepreneurial than natives; (ii) providing remittances that fund start-ups in their countries of origin and (iii) returning entrepreneurial skills to their home countries when they re-migrate. We evaluate these three views and conclude that the empirical evidence to support the notion of the migrant as a super-entrepreneur is weak. We further argue that the evidence is less ambiguous on the general development contribution of migration over and above its contribution through entrepreneurship. The implication is that removal of discriminatory barriers against migrants and against migrant entrepreneurs in labour, consumer and financial markets will promote development in both sending and receiving countries, not least through reducing the shares of migrants that are reluctant entrepreneurs. |
| Keywords: | migration, entrepreneurship, development, remittances |
| JEL: | J60 L26 O15 F22 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9284&r=all |
| By: | Field, Erica (Duke University); Jayachandran, Seema (Northwestern University); Pande, Rohini (Harvard University); Rigol, Natalia (MIT) |
| Abstract: | Does the lack of peers contribute to the observed gender gap in entrepreneurial success, and is the constraint stronger for women facing more restrictive social norms? We offered two days of business counseling to a random sample of customers of India's largest women's bank. A random sub-sample was invited to attend with a friend. The intervention had a significant immediate impact on participants' business activity, but only if they were trained in the presence of a friend. Four months later, those trained with a friend were more likely to have taken out business loans, were less likely to be housewives, and reported increased business activity and higher household income. The positive impacts of training with a friend were stronger among women from religious or caste groups with social norms that restrict female mobility. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp15-019&r=all |
| By: | Ayyagari,Meghana; Demirguc-Kunt,Asli; Maksimovic,Vojislav |
| Abstract: | This paper uses survey data from 120 developing countries to compare the role of institutions with firm characteristics at the time of creation of the firm in explaining the size, growth, and productivity of firms over their lifecycle. The study finds that firm-level characteristics have comparable, and sometimes even larger, power than institutional factors in predicting size and growth, but not productivity. In particular, size at birth plays a key role in predicting variation in firm size and growth since birth over the firm lifecycle, whereas country factors dominate in predicting variation in labor productivity over the firm lifecycle. The study also finds that older firms are larger, partly because of the selection of more efficient firms. The findings point to the importance of initial founding conditions in explaining variations in size and growth over the firm lifecycle across countries. |
| Keywords: | Labor Markets,Science Education,Microfinance,Labor Policies,Scientific Research&Science Parks |
| Date: | 2015–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7406&r=all |
| By: | David McKenzie; Christopher Woodruff |
| Abstract: | Management has a large effect on the productivity of large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? We develop 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria and Sri Lanka. We show that variation in business practices explains as much of the variation in outcomes – sales, profits and labor productivity and TFP – in microenterprises as in larger enterprises. Panel data from three countries indicate that better business practices predict higher survival rates and faster sales growth. The effect of business practices is robust to including numerous measures of the owner’s human capital. We find that owners with higher human capital, children of entrepreneurs, and firms with employees employ better business practices. Competition has less robust effects. |
| JEL: | L26 M20 O12 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21505&r=all |
| By: | Bjuggren, Per-Olof (The Ratio institute and Jönköping School of Economics.); Elmoznino Laufer, Michel (The Ratio institute) |
| Abstract: | This paper investigates the importance of bank loans for the financing of startups and how location matters for expansion plans and financing. We will show that there has not been sufficient attention paid to legal form when distinguishing between the external and internal financing of startups. The focus will be on the corporate form of business and the implications of this legal form for what can be considered external financing. In the analysis of how location matters, we will draw upon the literature about agglomeration and knowledge spillovers. The two main questions posed are: How does the corporate form matter for what can be considered the external financing of startups, and how does location matter for expansion plans and financing? To provide empirical answers to these questions, both survey data and registry data have been used. The survey data are from a questionnaire sent out to startups listed in the files of the Swedish Jobs and Society Foundation. We looked at corporations founded during the period 2009-2013 that family firms in terms of ownership structure. The survey indicated that bank loans are rare and had to be backed up with personal assets used as collateral and personal guarantees of repayment for the majority of the firms who had used bank loans. Essentially, the entrepreneur personally takes most of the business risk. Bank loans have, to a large extent, the character of internal financing. Combining registry data with the qualitative data from the survey, we used regression analysis to further study differences due to location. The regression analysis showed that the degree of urbanization matters for plans for expansion. In the three most urbanized areas, the startup firms had plans to expand their business both at home and abroad. In the other urbanized areas, the focus was on expansion at home. |
| Keywords: | startups; bank loans; asymmetric information; the corporate form of business; agglomeration; functional region |
| JEL: | G21 G32 L26 M13 R12 R58 |
| Date: | 2015–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0255&r=all |
| By: | Mckenzie,David J.; Woodruff,Christopher M. |
| Abstract: | Management has a large effect on the productivity of large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? This study developed 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. This paper shows that variation in business practices explains as much of the variation in outcomes ? sales, profits, and labor productivity and total factor productivity ? in microenterprises as in larger enterprises. Panel data from three countries indicate that better business practices predict higher survival rates and faster sales growth. The effect of business practices is robust to including many measures of the owner?s human capital. The analysis finds that owners with higher human capital, children of entrepreneurs, and firms with employees employ better business practices. Competition has less robust effects. |
| Keywords: | E-Business,Business Environment,Competitiveness and Competition Policy,Emerging Markets,Business in Development |
| Date: | 2015–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7405&r=all |
| By: | V. DORTET-BERNADET (Insee); M. SICSIC (Insee) |
| Abstract: | Between 2003 and 2010, total R&D public support (tax incentives and subsidies) targeted at SMEs increased by more than 300%: in 2010 it amounted to almost 2 billion euros, of which 26% (nearly 500 million euros) were perceived by very small businesses (fewer than 10 employees). This sharp increase is mainly explained by two reforms of the R&D tax credit (in 2004 and 2008) and a new public program dedicated to young innovative enterprises launched in 2004. An aggregate analysis shows that the share of R&D personnel financed by public funding has been multiplied by four for very small businesses, from 14% in 2003 to 49% in 2010. This change was accompanied by a decline of privately funded R&D personnel employed by very small businesses (and other SMEs to a lesser extent). An econometric analysis of a panel of small firms active in R&D intensive sectors tends to confirm this agregate finding at the firm level: R&D public support appears to have a positive impact on highly qualified and R&D employment but the impact on the associated labor costs appears to be significantly lower than the increase of the public financing, particularly from 2008. |
| Keywords: | R&D tax credit, subsidies, public policy evaluation, difference-in-differences |
| JEL: | O38 H25 C23 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpdeee:g2015-11&r=all |
| By: | Hasan, Iftekhar (Fordham University and Bank of Finland); Jackowicz, Krzysztof (Kozminski University); Kowalewski, Oskar (Institute of Economics, Polish Academy of Sciences); Kozlowski, Lukasz (Bank BGZ BNP Paribas SA) |
| Abstract: | In this paper, by employing a novel approach, we study the relationship between bank type and small-business lending in a post-transition country. Using a unique dataset on bank branches and firm-level data, we find that local cooperative banks lend more to small businesses than do large domestic banks and foreign-owned banks, even when controlling for the financial situation of the cooperative banks. Additionally, our results suggest that cooperative banks provide loans to small businesses at lower costs than foreign-owned banks or large domestic banks. Finally, we show that small and medium-sized firms perform better in counties with a large number of cooperative banks than in counties dominated by foreignowned banks or large domestic banks. Our results are important from a policy perspective, as they show that foreign bank entry and industry consolidation may raise valid concerns for small firms in developing countries. |
| JEL: | G21 G28 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:upafin:14-12&r=all |
| By: | Dev Nathan (IPC-IG); Govind Kelkar (IPC-IG) |
| Abstract: | In India and other South Asian developing economies there is a high level of under-employment, with large numbers of women who are not engaged in income-earning activities.(…) |
| Keywords: | Very Poor, Women, Entrepreneurship, Social Security, Training, Micro-credit |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:297&r=all |
| By: | Wolter, Hans-Jürgen; Werner, Arndt; Schneck, Stefan |
| Abstract: | Die Studie untersucht die Umsatzentwicklung neugegründeter Unternehmen in den ersten sieben Jahren auf Basis des Umsatzsteuerpanels 2001 bis 2010. Es zeigt sich, dass junge Unternehmen anfänglich überdurchschnittlich häufig und stark wachsen. Mehr als ein Drittel der Gründungen wächst zudem - mitunter unterbrochen von temporären Rückschlägen - dauerhaft. Im wenig kapitalintensiven Sektor Unternehmensdienstleistungen streben hingegen viele Unternehmen ganz bewusst kein Wachstum an. Hierbei handelt es sich häufig um Soloselbstständige. Rund ein Sechstel der Unternehmen bleibt trotz dauerhaften Umsatzrückgangs am Markt. Diese Unternehmen sind nicht notwendigerweise zum Scheitern verurteilt. Sie benötigen vielmehr häufig eine längere Entwicklungsphase um zu wachsen. |
| Abstract: | We study the growth patterns of newly founded firms in their first seven years based on the German Turnover Tax Statistics Panel 2001-2010. We can show that these firms frequently grow in the early years. About one of three new ventures grows steadily in the considered period - sometimes interrupted by temporary setbacks. In less capital-intensive sectors many firms seem to deliberately strive for less growth. These are often solo self-employed individuals. Each sixth firm experiences losses in sales in all considered periods, but remain on the market. These firms must not be doomed to fail. Instead, they seem to require more time of progress and development in order to grow in the future. |
| Keywords: | Gründungen,Unternehmenswachstum,Umsatzentwicklung,start-ups,firm growth,turnover development |
| JEL: | L10 L25 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmmat:238&r=all |