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on Entrepreneurship |
| By: | Hurst, Erik (University of Chicago); Pugsley, Benjamin (Federal Reserve Bank of New York) |
| Abstract: | The nonpecuniary benefits of managing a small business are a first order consideration for many nascent entrepreneurs, yet the preference for business ownership is mostly ignored in models of entrepreneurship and occupational choice. In this paper, we study a population with varying entrepreneurial tastes and wealth in a simple general equilibrium model of occupational choice. This choice yields several important results: (1) entrepreneurship can be thought of as a normal good, generating wealth effects independent of any financing constraints; (2) nonpecuniary entrepreneurs select into small-scale firms; and (3) subsidies designed to stimulate more business entry can have regressive distributional effects. Despite abstracting from other important considerations such as risk, financing constraints, and innovation, we show that nonpecuniary compensation is particularly relevant in discussions of small businesses. |
| Keywords: | entrepreneurship; non-pecuniary benefits |
| JEL: | J01 L20 L26 |
| Date: | 2015–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:747&r=ent |
| By: | Antonio Garcia-Tabuenca; Federico Pablo-Martí; Fernando Crecente-Romero |
| Abstract: | The research on women entrepreneurship has mainly studied these topics: i) the characteristics and motivations (Brush and Hisrich, 1991; Pablo-Martí et al., 2014), ii) the strategic choice (Verheul et al., 2008), iii) the role of leadership (Schwartz, 1976; Justo et al. 2006)), iv) the entry barriers (Brush and Gatewood, 2008), mainly access to funding (Klapper and Parker, 2010), and v) the performance and achieved results (Coleman and Robb, 2009; Díaz and Jiménez, 2010; Crespo-Espert et al., 2012). These topics have been well studied. However, further research on this field is required. The long period of crisis from 2007 on has changed some of the findings related to these issues. This is especially significant in the most affected economies such as those of the southern countries of the EU. In these countries the severity of the crisis has had significant consequences for the productive sector (destruction of companies, high unemployment, credit restrictions) and on public finances under severe uncertainty (sovereign debt crisis, banking crisis). This is generating major changes in productive activity and business competitiveness, which is associated with the deleveraging of companies, as well as the varying prevalence of smaller companies (SMEs) in the economies. In this context, it may be hypothesized that the progress and results of activities led by women entrepreneurs had significant changes between the period before the crisis and the current stage of uncertain recovery. In this paper we analysed the dynamics and evolution of entrepreneurial activity of women in Spain in the period 2003-2013. It includes a stage of strong expansion and other recessive. Also, the research focuses on the differences found in two of the topics listed above: a) the obstacles in accessing to funding and b) the results of businesses women-owned compared to those of male-owned businesses. We made use of the SABI database. It includes information from the commercial registers. It has over one million companies with employees that represent most of the Spanish companies. The samples for this study differentiate whether the company is owned by a man or a woman. These samples are representative for company sizes, sectors and regions. Thus the results that adopt a regional approach can be segmented for a better understanding of the different types of women's businesses. The variables of the study are some financial indicators: credit ratio, debt ratio, productivity, EBITDA over assets, EBITDA over turnover, economic profitability and financial profitability. We employ various dummies to control for differences in size, sector and location of firms. The results allow understanding the different behaviour of women entrepreneurs and its reasons. They can also serve to develop new entrepreneurship policies related to gender in economic recovery. |
| Keywords: | women entrepreneurs; credit; debt; business results; SMEs; business cycle |
| JEL: | B54 M21 G30 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p496&r=ent |
| By: | Jean Bonnet; Rafik Abdesselam; Patricia Renou-Maissant; Mathilde Aubry |
| Abstract: | The aim of this paper is to analyze entrepreneurial activity in OECD countries over the period 1999-2012 in order to make a distinction between economies that are more or less entrepreneurial. A combined use of multidimensional and evolutive data analysis methods is used with variables pertaining to entrepreneurial activity and growth. It allows us to distinguish several types of development. Furthermore, three main periods are found, before, during and after the crisis. The pre-crisis period, from 1999 to 2008, was a period of growth favorable to entrepreneurship while the sub-period 2010-2012 is less favorable. The effects of the financial crisis are noticeable after a delay in 2009. We show that in 2009, the agricultural economies have best withstood the financial crisis. Secondly, during the period 2010-2012 after the crisis, economies widely dependent on the financial sector were most impacted by the financial crisis. Because of the financial crisis, the entrepreneurial dynamics vary greatly across countries over the period 1999-2012, however we were able to establish common trajectories for a number of them |
| Keywords: | Entrepreneurship; Data analysis methods; Entrepreneurial/Administrated economies |
| JEL: | L26 C38 O1 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p84&r=ent |
| By: | Charlie Karlsson; Johan Klaesson; Özge Öner |
| Abstract: | There is an abundant literature on industrial ecology aiming at explaining the survival propensity of recently started firms. The majority of the contributions concentrate on the character¬istics of the entre¬preneur, the new firm or the industry. Only a small mi¬nority of the ex¬isting studies consider the influence of the loca¬tion where the new firm has been started on survival probability. The evidence of the importance of location in the literature is mixed. However, only a limited share of these studies analyzes the im¬portance of lo¬calized external economies of scale for the survival of newly founded firms. This relative lack of studies is intriguing since, for example, the ?new economic geography? theory empha-sizes the role that clusters of individual industries and of complementary indus¬tries within a distinct geo¬graph¬ical area play in terms of proxim¬ity and network externalities. Thus, a basic motivation for this paper is that the absolute majority of business survival stud¬ies disregard the fundamental facts that every new firm is started in a specific location. A sec¬ond motivation is the fact that in many of the studies that include spatial factors as explana¬tory factors the representation of these factors are often not ideal. A third motivation is that the representa¬tion of geographical space has not taken into consideration of the importance of the hierarchical structure of geographical space. The purpose of this paper is to test the influence of demand and supply conditions and general economic milieu in localities on the survival of newly founded firms while controlling for firm and industry characteristics and using a proper representation of the hierarchical structure of geographical space. |
| Keywords: | Entry; Start-up size; Market Potential; Region; Industry; Sweden |
| JEL: | L11 M13 C21 R11 R12 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p6&r=ent |
| By: | Angela Cipollone (CeLEG (Center for Labor and Economic Growth)); Paolo E. Giordani (LUISS "Guido Carli" University) |
| Abstract: | This paper proposes a model of entrepreneurial innovation that explains its pronounced pattern of boom and bust. In the model, a successful entrepreneurial project is the result of a search and matching process between entrepreneurs looking for funds and capitalists looking for new ideas to finance. The resulting strategic complementarity between them gives rise to a multiplier effect, whereby any exogenous shock has a magnified effect on the process of innovation. Hand-collecting data on the venture capital market of 21 developed countries for the period 2004-2012, we show that, at the country level, a complementarity exists between the size of the venture capital sector and the number of innovative entrepreneurs. This evidence suggests the existence of a thick market externality in the financial market for innovation. |
| Keywords: | Financing of innovation, search and matching, strategic complementarities, venture capital. |
| JEL: | C78 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lui:celegw:1505&r=ent |
| By: | Stuetzer, Michael; Obschonka, Martin; Audretsch, David B.; Wyrwich, Michael; Rentfrow, Peter J.; Coombes, Mike; Shaw-Taylor, Leigh; Satchell, Max |
| Abstract: | There is mounting evidence demonstrating that entrepreneurship is spatially clustered and that these spatial differences are quite persistent over long periods of time. However, especially the sources of that persistence are not yet well-understood, and it is largely unclear whether persistent differences in entrepreneurship are reflected in differences in entrepreneurship culture across space as it is often argued in the literature. We approach the cluster phenomenon by theorizing that a historically high regional presence of large-scale firms negatively affects entrepreneurship, due to low levels of human capital and entrepreneurial skills, fewer opportunities for entry and entrepreneurship inhibiting formal and informal institutions. These effects can become self-perpetuating over time, ultimately resulting in persistent low levels of entrepreneurship activity and entrepreneurship culture. Using data from Great Britain, we analyze this long-term imprinting effect by using the distance to coalfields as an exogenous instrument for the regional presence of large-scale industries. IV regressions show that British regions with high employment shares of large-scale industries in the 19th century, due to spatial proximity to coalfields, have lower entrepreneurship rates and weaker entrepreneurship culture today. We control for an array of competing hypotheses like agglomeration forces, the regional knowledge stock, climate, and soil quality. Our main results are robust with respect to inclusion of these control variables and various other modifications which demonstrates the credibility of our empirical identification strategy. A mediation analysis reveals that a substantial part of the impact of large-scale industries on entrepreneurship is through human capital. |
| Keywords: | Entrepreneurship; entrepreneurship culture; Industrial Revolution; industry structure; personality |
| JEL: | L26 L64 N13 N53 N94 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67425&r=ent |
| By: | Fredin , Sabrina (CIRCLE, Lund University and Department of Industrial Economics, Blekinge Institute of Technology); Jogmark , Marina (Centre for Business Studies, Kristianstad University and Department of Industrial Economics, Blekinge Institute of Technology) |
| Abstract: | This paper examines how industrial legacy leads to the formation of a distinct local culture and how the culture’s survival influences subsequent entrepreneurial activities in new local industries. The discussion about culture as a key driver of entrepreneurship and regional economic growth is well established in the academic debate. However, we know little about how an entrepreneurial culture is formed. Through a qualitative case study of two polar Swedish cities, the study highlights four key factors which are instrumental in the formation of local culture: initial conditions, characteristics of key players, network activities and composition of newcomers. Drawing on in-depth interviews with entrepreneurs and other local actors, we show how the local entrepreneurs responded to the underlying assumptions of the two different cultures. The study also highlights how two distinct culture did emerge in neighbouring cities within the same region and suggests that further insights might be gained through an additional new level of analysis when studying entrepreneurial culture. |
| Keywords: | culture; entrepreneurship; economic development; social networks; regions |
| JEL: | A13 O18 |
| Date: | 2015–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2015_037&r=ent |
| By: | Óscar Rodil; Diana Morales |
| Abstract: | The aim of this paper is to analyze the difference between the rates of potential entrepreneurship and actual entrepreneurship in European and American context, trying to identify some of the explanatory factors. For this purpose an institutional approach is used, which includes the role of various formal and informal factors related with the potential and emerging entrepreneurial activity. From an empirical point of view, the paper takes into account twenty countries from the European and American continent, covering the last decade. The results show, in general, the influence of the institutional framework on the gap between the nascent entrepreneurship and potential entrepreneurship, through formal and informal factors. We use data from the Global Entrepreneurship Monitor (GEM), which measures the entrepreneurial intention and nascent entrepreneurial activity, the World Bank and the Index of Economic Freedom (The Heritage Foundation). |
| Keywords: | Entrepreneurship; Gap; New Institutional Economics; Europe; America |
| JEL: | L26 E02 O52 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p441&r=ent |
| By: | Semiha Turgut; Aliye Ahu Akgun |
| Abstract: | The effect of entrepreneurship on regional economic growth has been a research agenda for the last two decades. Entrepreneurship, by creating employment, fostering competitiveness or affecting employment, somehow contributes to economic development. While entrepreneurship is mostly defined or measured as numbers of self-employed, firm formation, business formation, new firm start-ups, firm births or net entry rates in the empirical studies, regional economic development is defined or measured as, the growth of gross domestic product (GDP), gross value added (GVA) and the change of employment/unemployment rate or productivity. The effect of entrepreneurship on economic growth is mainly seen in two time periods: long term and short term. In the literature, there is evidence on the effect of employment growth in short term and on the effects like crowd-out, displacement, the employment decreases because of the firm closures or employment and productivity growth caused by the new firm formations in long term. The purpose of this article is to find the causality between entrepreneurship and regional economic development in Turkey at the NUTS1 level. In order to reach this aim, entrepreneurship is measured as firm formation and net entry, while regional economic development is measured by GVA, GDP and employment. One of the well-known techniques to identify the causal relations among the variables, correlation is used to measure the length, direction and the weight of the causal affects/relations between regional economic development and entrepreneurship. First, the aim, objectives and detailed framework of this article are given. Then, in the following section, the conceptual and theoretical framework of entrepreneurship and regional economic development is discussed. The case study is given in the third section, with the explanation of data and methodology, a short brief of firm and entrepreneurship policies in Turkey and the effect of entrepreneurship on regional economic development in Turkey at two distinctive periods as 1987-2001 and 2004-2011 separately. This study is the first attempt to show such a relation between entrepreneurship and regional economic growth on the basis of the firm formation. The findings show that the causality between (or effect of) entrepreneurship and regional economic growth changes among regions, which clarifies regional similarities of diversities. Therefore, although the trends of entrepreneurship to affect regional growth in Turkey seem corresponding the findings of the current literature, eastern regions acts differently. |
| Keywords: | entrepreneurship; firm formation; regional economic growth |
| JEL: | L26 O47 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p1093&r=ent |
| By: | Mehmet Emin Demir (SELCUK UNIVERSITY); Mehmet Akif Çini (SELCUK UNIVERSITY) |
| Abstract: | The importance of entrepreneurship has been increasing in our country and in the world day by day. Because entepreneurs take risks when bringing production factors together, turn a work idea into a purchasable product, and have a critical significance in the establishment of SMEs as locomotives of economy which involve 99% of enterprises operating in our country. So entrepreneurs and their SMEs in our country and in the world are of great importance to have economical development and social welfare. Therefore, it is necessary that entrepreneurs and SMEs be supported by the state. Many various institutions give support to entrepreneurs and SMEs in our country. One of the important institutions supporting is KOSGEB (Small and Medium Enterprises Development Organization). KOSGEB has "Entrepreneurship Support Program" aimed at entrepreneurs. In this study, the activities by KOSGEB in the framework of Entrepreneurship Support Program in Konya province will be analyzed via data from the institution; the main objective of the study will show the importance of state support in entrepreneurship. |
| Keywords: | Entrepreneurship, SMEs, KOSGEB Entrepreneurship Support Program |
| JEL: | L26 M13 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3105199&r=ent |
| By: | Huub Mudde (Maastricht School of Management); Dugassa Tessema Gerba; Alemfrie Derese Chekol |
| Abstract: | PThis report presents the findings of an entrepreneurship assessment of universities in Ethiopia, carried out within the context of the University Leadership and Management Capacity Development (ULMCD) project that has been implemented and coordinated by Maastricht School of Management (MSM), and funded by EP-Nuffic. Ethiopia is at the start of its second five year Growth and Transformation Plan (GTP2) which aspires to make Ethiopia a middle income county by 2025. As a result, the government of Ethiopia had been pursuing, as one of its strategies, measures to promote small and medium enterprises (SMEs) to spur the economies’ growth and to increase youth employability (64.1% of the population is below 25 years of age). Universities play a significant role in the production of human resources the economy demands; education including entrepreneurship is critical as it contributes to job creation and leads to considerable reduction of poverty. Equally, universities have an important role to play in regional innovation systems. In Ethiopia, the number of graduates is growing fast and institutional challenges of universities are large because more than 20 new universities have been established in the last decade and the foundation of another 11 universities announced in 2015. It is this pertinent challenge of capacitating the growing number of students put upon the (mostly very young) Ethiopian universities in which this study is framed with the purpose to advise the Ethiopian universities on how to strengthen their entrepreneurial policy, activities, facilities, and educational programs, and to advise the Ethiopian Ministry of Education/Education Strategy Centre (ESC) on how it could support the Ethiopian universities on these matters. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2015/01&r=ent |
| By: | Lúcia Pato |
| Abstract: | Although rural entrepreneurship is an emergent field of study and has emerged as one of the most noticeable ways to promote rural development, the few studies concerning the theme are still incipient. Moreover, a lot of studies focus on farmers and rural entrepreneurs as a whole and little research emphasises women?s entrepreneurship, particularly in Portugal. Thus, this study explores entrepreneurial initiatives conducted by women in one of the most peripheral areas of Portugal - Montemuro (municipality of Castro Daire), where subsistence agriculture continues to be the main economic activity. These women have been stimulated to develop entrepreneurial activity in the countryside, taking advantage of local and endogenous materials (flax and wool) and traditional knowledge that through for generations mothers passed orally to daughters. Indeed, these women who have continually been working this type of materials in their homes, putting into practise what they have learnt from their grandmothers and mothers, began to create innovative and fashionable products. The aim of this study, therefore, is to explore women´s entrepreneurship in rural communities of Montemuro region, raise awareness of the role that these women play in rural development and identify some strategic considerations towards the development of their work. Concerning methodological procedures, in addition to the collection of data and news from newspapers and visits on internet pages about these women?s work, this paper is based on exploratory visits in the study communities of the Montemuro region and in the technique of observation. Apart from this, an interview was conducted in one of the organizations of women. The results of the study point out that the women of Montemuro try to not only create their own work, but also keep the culture and local traditions alive, therefore contributing to rural development. However several difficulties in the development of these entrepreneurial initiatives persist and further progress must be made. According to this, rural and local resources should be seen as valuable and entrepreneurial actions must be continually supported in order to contribute towards a process of rural development. Governmental and other institutional support should be directed to these women entrepreneurs in areas which they have lack of knowledge and expertise and conduct to the creation of a culture of entrepreneurship in the local context. Moreover, the success of entrepreneurship actions depends on the cooperation and creation of networks among the different actors that live in the rural communities. In terms of limitations we emphasize the exploratory nature of the study. Thus in order to understand behaviours and attitudes of these women entrepreneurs, limitations and opportunities of their entrepreneurial actions, an in-depth study will be interesting, maybe in the form of a study case. |
| Keywords: | Rural entrepreneurship; Innovation; Woman; Rural development |
| JEL: | L26 R11 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p1367&r=ent |
| By: | Vera Barinova; Stepan Zemtsov; Alla Sorokina |
| Abstract: | SMEs play an important role in the development of regional innovative systems because of their potential to accept new technologies and show fast growing rates. There is an interdependence between emergence of fast growing SMEs (?gazelles?) and innovative development of regions. High level of regional innovative development creates a fertile environment for increasing the number of fast growing companies, while we assume that large number of ?gazelles? creates a favourable environment for the dissemination of innovations in regions via spillover effect (NESTA Business growth and innovation, 2009). Fast-growing companies may contribute more than 50% to GDP growth (Europe INNOVA Gazelles Innovation Panel, 2008). There are several works, that explain growth of firms as a stochastic phenomenon (Gibrat, 1929), or as a combination of endogenous (Penrose, 1955) and exogenous factors (Delmar, Davidsson, Gartner, 2003). In our work we assume that regional innovation performance (as a share of RnD personnel in employment, share RnD expenditures in gross regional product, etc.) may be a significant factor because of knowledge spillover effects (Audretsch, Feldman, 2004), affecting more competitive firms. There were no works on Russian regional data that could prove it. The article analyses a variety of endogenous (intra-firm) and exogenous (regional) factors, which determine the share of fast-growing firms in Russian regions. The analysed firms were fast-growing manufacturing SMEs during post-crisis period (2009-2012), the main focus was on the determinants of the companies? share in total number of manufacturing firms in a region. The dataset was collected from SPARK (Professional market and company analysis system), and consists of information about income, owners, location, industry and several financial indicators. Regional factors, according to Russian Federal State Statistical service, include research and development indicators (such as RnD expenditures, RnD employees, etc.), urbanization rate, human capital, investment climate, etc. There are 419 manufacturing fast-growing companies (?gazelles?) from 9220 companies in database, which is approximately 5%. Econometric analyses demonstrates a strong correlation between the share of high-growth companies in regions and indicators of regional innovation performance: number of researchers per 10 000 people, the number of PCT applications per economically active population, the share of employees with higher education in the total number of population in economically active age, and the number of applications for inventions submitted to the Russian Patent Bureau by national applicants per the economically active population. Determined factors could be used for elaborating recommendations for implementation of industrial policy in Russia. |
| Keywords: | SME; Russian regions; regional innovation systems |
| JEL: | L25 O31 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p600&r=ent |
| By: | Martin Borowiecki; Karl-Heinz Leitner |
| Abstract: | Using a panel data model, we study the effects of regional and industry-level traits on new business formation (NBF) for 164 industries across 266 Chinese prefectures between 1998 and 2007. The objective is to provide empirical estimates on effects of prefecture traits on entry rates, and in particular on effects of prefecture knowledge capital stocks on R&D-intensive new business formation. In line with literature on knowledge spillovers, we find extensive evidence of a positive prefecture knowledge capital stock effect on R&D-intensive NBF rates, whereas knowledge capital stocks do not predict non R&D-intensive entry rates. Among regional and industry-level characteristics, we find that prefecture supplier and customer market strength are strongly linked to higher business entry rates. Our results for China contrast with recent findings on the effects of regional traits on firm entry rates in India and the US, indicating distinct regional patterns of Chinese entrepreneurship. |
| Keywords: | Entrepreneurship; knowledge spillovers; agglomeration; development; China |
| JEL: | L26 L60 M13 O10 O14 O33 R00 R10 R12 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p598&r=ent |
| By: | José Cadima Ribeiro; José Freitas Santos; Susana Bernardino |
| Abstract: | Social entrepreneurship has been recognized as a helpful instrument of social and economic policy. The European Commission, namely, has recognized very early the importance of social organizations on economic growth and social innovation, through their contribution for the development of societies endowed with better levels of democracy, activism and social cohesion. Having that in mind, the purpose of this paper is to contribute to a better understanding of the link between social entrepreneurship and institutional environment in Portugal. A quantitative approach is used in the study, and primary data were collected through an online survey. A questionnaire was emailed to, both, Portuguese Non-Governmental Organizations and projects available on the Portuguese Social Stock Exchange. In the analysis of the data we used descriptive statistics, factorial analysis and t-student tests to validate (or not) the research hypotheses. The results show that a favorable institutional environment (social, institutional) seems to have a low influence on the decision-making process related to the creation of new social entrepreneurial initiatives. Conversely, the sense individuals hold about the skills required to develop the new venture and the previous knowledge that their action will produce a desirable outcome have a significant weight on their decision. This conclusion supports the idea that many social entrepreneurs can emerge even in developing regions where the institutional environment is weak. Therefore, social entrepreneurship could be an instrument of regional development and contribute to attenuate the social and economic differences among Portuguese regions. |
| Keywords: | Social Entrepreneurship;Social and Solidarity Economy; Regional Development. |
| JEL: | R11 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p175&r=ent |
| By: | Ryan Rumble (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | Business model research has long focused on external triggers, drivers, and enablers of business model adoption. What is less well known is how business models are adopted in practice. Using a conceptual framework developed by Baden-Fuller & Mangematin, we propose 16 ideal types of business models. Based on a qualitative comparative analysis of 77 businesses, we explore the antecedents of these business model types, paying particular attention to multi-sided models, which are growing in prominence, and require businesses to manage complexity and interdependencies. Surprisingly, our analyses reveal that tools developed to support business design, creativity or visualization were systematically absent from the operationalization of complex, multi-sided business models. The paper contributes to our understanding in three ways: (1) it reveals how businesses with complex, multi-sided models are crafted using heuristics rather than rational business model design tools, (2) it highlights consistent relationships between the practices employed during business creation/reconfiguration and the business models that are adopted, and (3) it opens fruitful research avenues to develop tools to support heuristics in business design and implementation. |
| Keywords: | implementation,multi-sided,business model,QCA,heuristics,antecedent,configuration |
| Date: | 2015–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemwpa:hal-01183388&r=ent |
| By: | Kristina Nyström |
| Abstract: | Job displacement, which is defined as an involuntary loss of job due to economic downturns or structural changes, hit millions of workers each year. According to OECD (2013) 2-7 percent of workers are displaced every year. For Sweden, OECD (2013) reports an average displacement rate of about 2 percent for the period 2000-2008. Our knowledge on the individual consequences of displacement, in terms of, for example, unemployment duration, and earning losses is comprehensive (See e.g. Hammermesh 1989 and OECD (2013). However, knowledge about regional differences in patterns of displacements and regional resilience to displacements is still limited. For instance, Eliasson and Storrie (2006) note that prior to their study knowledge about regional patterns of Swedish displacements is primarily based on case studies. Using individual-firm level data from all firms and regions in Sweden Nyström and Viklund Ros, (2014) shows that displacement rates and the regional ability to re-allocate competence after a business closure varies substantially. This paper intends contribute to the knowledge about the regional resilience to business closures. The term resilience refers to the ability adapt to a chock incurred by, for example, business closures. In this paper I intend to study which regional characteristics that influence the regional resilience to displacements. Which regional characteristics influence if displaced employees quickly are re-employed in other industries and businesses? In this paper it is argued that the regional environment in terms of i) the characteristics of regional closures, ii) the characteristics of the individuals in the region, iii) characteristics of the regional industry and iv) the characteristics of the regional economy influence the regional resilience to displacements in terms of the ability to re-employ displaced employees. The characteristics of regional closures, refers to, for example, the regional share of closures and the size of the closures. The characteristics of the individuals in the region refer to, for example, the competence in terms of education, age structure and share of individuals with immigrant background in the region. Characteristics of the regional industry refers to the unrelated and related industry variety (Frenken et al 2007 and Boschma et. al 2012) and the industry structure in terms of the share of the manufacturing industry and service sectors. Finally, the characteristics of the regional economy refer to, for example, the size of the region, unemployment level and industrial turbulence in terms of entry and exit rates. In the empirical part of the paper a unique dataset of matched firm-employees enable us to study the regional patterns of re-employment of displaced workers in 81 Swedish regions 2001-2009. For policymakers understanding how the re-employment process after displacements differs across regions should be valuable knowledge. |
| Keywords: | Displacements; exit. Labor mobility; regional development |
| JEL: | J6 R1 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p1018&r=ent |
| By: | László Szerb; William Trumbull |
| Abstract: | Objectives: This paper aims to examine the transition process from the development and state of entrepreneurship in 15 former European socialist countries during 2006-2012. Our focus here is not on the full but on just one dimension of transition, entrepreneurship. While it is surely the case that certain transition tasks, like privatizing state-owned enterprises, remain unfinished, a perhaps more interesting question is whether the fundamental characteristics of these economies has changed to the point where starting and growing a new business in the former socialist countries is substantively different from starting and growing a new business elsewhere. Thus, we ask whether it is possible to discern differences with respect to entrepreneurship between the post-socialist countries of Europe and the non-post-socialist countries, controlling for level of economic development. Methodology: Unlike previous analyses that applied single activity related entrepreneurship measures like self-employment, or the GEM's TEA rate, we use a complex entrepreneurship measure, the Global Entrepreneurship and Development Index (GEDI). GEDI incorporates both individual and institutional factors of entrepreneurship in order to explain the role of entrepreneurship in economic development. The GEDI, with its three sub-indexes and fourteen pillars, is a particularly suitable tool for examining the level, the components, and the configuration of the National System of Entrepreneurship. Findings: Investigating the former transition countries, we can conclude that the overall level of entrepreneurship in the Central and Eastern European (CEE) countries fits their level of economic development. While the examined CEE countries have lower GEDI scores as well as institutional development than developed European innovation-driven economies; they possess slightly higher institutional and individual level of development than similarly developed efficiency-driven economies. We anticipated some kinds of characteristic differences between the former socialist and the efficiency-driven countries that would reveal that transition has not been completed. However, our results are more consistent with the conclusions that, while the post-socialist economies were qualitatively different twenty some years ago, those differences have vanished today with the exception of only one of the countries included in our analysis: Russia. Thus, these post-socialist countries (excepting Russia) are on a normal capitalist path with any differences being due to different levels of economic development rather than to having a different economic system. Originality/value: While our results imply that transition is over, there are some shared characteristics of the former socialist countries that most likely stem from their socialist heritage, such as the relatively low level of opportunity perception or cultural support. The results have important implications as they reinforce our argument that, rather than homogeneous entrepreneurship support policies, effective implementation of policies in CEE should fit the profile of the targeted territory. |
| Keywords: | Global Entrepreneurship and Development Index; Global Entrepreneurship Monitor; |
| JEL: | M13 O10 P20 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p669&r=ent |
| By: | Rosemarie Ziedonis (University of Oregon); Carlos Serrano (Pompeu Fabra University); Yael Hochberg (MIT Sloan School of Management) |
| Abstract: | The use of debt to finance risky entrepreneurial-firm projects is rife with informational and contracting problems. Nonetheless, we document widespread lending to startups in three innovation-intensive sectors and in early stages of development. At odds with claims that the secondary patent market is too illiquid to shape debt financing, we find that intensified patent trading increases the annual rate of startup lending, particularly for startups with more redeployable (less firm-specific) patent assets. Exploiting differences in venture capital (VC) fundraising cycles and a negative capital-supply shock in early 2000, we also find that the credibility of VC commitments to refinance and grow fledgling companies is vital for such lending. Our study illuminates friction-reducing mechanisms in the market for venture lending, a surprisingly active but opaque arena for innovation financing, and tests central tenets of contract theory. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:1170&r=ent |
| By: | Patricia Guimaraes; Yanko Xavier; Lucas do Monte Silva |
| Abstract: | This paper aims to analyze, from a legal perspective, the public policies of Science, Technology and Innovation offered by the Brazilian government, more specifically, the Innovation Act (Lei de Inovação), in order to verify the effectiveness and impact of this measure for development, in the Brazilian entrepreneurial scene. Through empirical research and comparative method, this research seeks to answer, preliminarily, the following questions: a) What is innovation? b) The State should act in the innovation process?; c) What is the relationship beetween  innovation and development?; d) What are the aspects of public policies of Science, Technology and Innovation offered by the Brazilian government made available to entrepreneurs in the Innovation Law? What is the effectiveness and impact of this measure in the Brazilian entrepreneurial scenario? The questioning of the article was analyzed based on the premise that innovation is essential to the development of a society and its economy. Innovation is not only limited to radical ruptures, such as the introduction of smart watches or autonomous cars, but it also covers moderate advances, such as new product specific production methods, new ways of customer service or (re)configuration of bureaucratic procedures in order to speed them up. Thus, innovation is presented from the need to solve problems that citizens, whether entrepreneurs or not, appears in any given moment. An innovative society tends to have a higher quality of life, higher productivity and, consequently, the factors for the nation?s economic growth in which it resides. It turns out that in developing countries, the private sector, that is, entrepreneurs, don't always have the resources, opportunity, know-how and structure to take the risk of investments in Research, Development and Innovation (RD&I) as assumed initially by Schumpeter. These entrepreneurs prefer to license technology from foreign nations or larger companies, which have been tested and proven, rather than take the risk of spending millions of dollars on products, services, innovative processes that do not have the expected profit, or even, doesn't go beyond a mere prototype. Thus, as highlighted by neo-schumpeterians economists, the State presents itself as a key player in these countries, since it has conditions, financial and technical, to stimulate, either through direct measurements, either through indirect measures, innovation. We concluded that Brazil presents advances in this sector and most of public policies managed to have efficacy for entrepreneurs, but it is also necessary institutional changes in the process of receiving these incentives and in its supervision, improving them, so that companies incubated may have the same competitivety of foreign companies. |
| Keywords: | institutionalism;law and development;innovation |
| JEL: | L5 N46 O1 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p1134&r=ent |
| By: | Balázs Páger; Éva Komlósi |
| Abstract: | This paper aims to elaborate the role of agglomeration effects on countries' competitiveness and entrepreneurial performance. Our research contributes to the understanding of the relationship that exists between a country's urban system characterized by spatial agglomeration (concentration) or deglomeration (deconcentration) processes, and its competitiveness and entrepreneurial performance, respectively. Urbanization economies refer to considerable cost savings generated through the locating together of people and firms across different industries. It has recently become an axiom that the better performance of global cities, as important nodes of innovation and creativity, is derived from agglomeration effects. This general assumption follows that the more concentrated an urban system of a country, the more competitive and better its entrepreneurial performance. Even though this notion has gained quick and ardent acceptance from practitioners, the related literature shows contradictory results and it has induced a heated debate in academic circles, because it has raised serious doubts about the "bigger is better" theory. We hope to contribute to this debate with our detailed analysis. In order to test our hypothesis empirically, we selected 70 countries and calculated the so called ROXY Index measuring the degree of agglomeration or deglomeration in their urban system. To exemplify country level competitiveness we applied the Global Competitiveness Index (GCI), while the Global Entrepreneurship and Development Index (GEDI) was used to demonstrate country level entrepreneurial performance. Our results affirmed that high concentration of population is only one important factor of competitiveness and entrepreneurial performance while other effects may exist. On the other hand, over- or under-concentration of the population within an urban system does not necessary result in a better outcome. |
| Keywords: | urbanization economies; entrepreneurship; competitiveness; spatial cycles |
| JEL: | O18 L26 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p503&r=ent |
| By: | Marina Van Geenhuizen; Qing Ye; Manuel Au-Yong-Oliveira |
| Abstract: | Technical and industrial competences are increasingly dispersed across the globe, urging young high-technology firms in Europe to increase distances in their knowledge relations. However, establishment and maintenance of such relationships tend to be hampered by many barriers following from short in capabilities, particularly various missing skills in the management team. In this paper, we examine the role of capability factors and particular skills among a specific category of firms, university spin-offs, in building knowledge networks abroad, specially, the spatial reach involved. Such a study is not new for (innovative) SMEs, but it is new for university spin-off firms. We use two samples of university spin-off firms (each about 100 cases) in various European countries in order to identify the importance of capabilities and certain skills in internationalization of knowledge collaboration, and to this purpose we apply various regression models. The sampled firms are of different age and find themselves in different stages of born-global development. We observe that 60 to 70 per cent of the firms employ knowledge relationships abroad, almost 35 per cent of them outside of Europe. The main underlying capability factors are a high education level (PhD), participation in market/business-related training, and a larger firm size. Another factor is a relatively low level of innovation, indicating a support structure from practical application and customer relations in an established market position of the firm abroad. Examples of such support structure are found in civil engineering works and consultancy concerning transportation infrastructure, land use/protection and the oil and gas industry. Furthermore, one set of missing skills in the management team stands out in limiting larger distances in knowledge collaboration, and these are internationalization skills, for example, skills in presentation of the firm and negotiation of important agreements with a partner abroad, dealing with uncertainty in certification issues and patent protection, and skills in branding the product abroad. Most missing skills are of the conceptual and relational type. Due to different stages in born-global development, the differentiation in missing skills is remarkably large, indicating that training to improve skills requires a multi-faceted and customized approach, without a one-size-fits-all solution. The paper concludes with a summary and some ideas for improving training. |
| Keywords: | global knowledge collaboration; capabilities; skills; university spin-off firms |
| JEL: | D03 M13 O32 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p644&r=ent |
| By: | Oto Hudec; Marek Lavcak |
| Abstract: | In recent years, start-ups and creative industries economy have recorded an extraordinary expansion. The geography of start-up and creative industries is often coincident with the factors of agglomeration economies and networking assets together with talent inherence and managerial culture, which are supposed to be similar for both appearances.In Slovakia, the government has recognized its interest in the agenda of start-ups and creative industries only recently (2013), but the private and non-profit sector has predicted this trend three years before, when in Bratislava, the capital of Slovakia, the first major co-working spaces with an integrated approach to education and support of innovative business emerged. A support in the second largest city Ko?ice started institutionally only in 2014, in the premises of its Technical University. The start-up ecosystems in both cities have different focus, size, evolutionary qualities and culture, as their birth and fast growth was influenced by existing different regional innovation system and attracted rather different groups of young people. The comparison of both start-up and art scenes in its early phase, only marginally touched by the public incentives, gives a possibility to study the start-up ecosystems in their uncontaminated form, based mostly on the interviews of the start-up owners, gurus, venture capitalists, enthusiasts and observers. |
| Keywords: | start-up; creative industries; regional diversity; development; entrepreneurship |
| JEL: | O R |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa15p1242&r=ent |
| By: | Myriam Matray (EVS - UMR 5600 Environnement Ville Société - ENSAL - Ecole nationale supérieure d'architecture de Lyon - Ecole Nationale Supérieure des Mines de Saint-Etienne - CNRS - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - ENS Lyon - École normale supérieure - Lyon); Jacques Poisat (EVS - UMR 5600 Environnement Ville Société - ENSAL - Ecole nationale supérieure d'architecture de Lyon - Ecole Nationale Supérieure des Mines de Saint-Etienne - CNRS - UL2 - Université Lumière - Lyon 2 - Université Jean Moulin - Lyon III - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - ENS Lyon - École normale supérieure - Lyon) |
| Abstract: | Coming from the civil society and entrepreneurial processes in a bottom-up strategy, territorial clusters of economic cooperation (inspired by French economic clusters) could not emerge and develop without support from public institutions. Indeed, jointly developed local strategies by groups of citizens and institutions tend to foster the emergence of groups of social actors. The study of TCEC in the Rhone-Alps Region highlights the many practical forms that the involvement of public institutions can take in the development of a social cluster, and shows the strategic importance of reaching an agreement, both from the social economy and local public institutions point of views. However the forms of public-civil society governance differ according to the types of clusters and their evolution. As the political approach to economic problems shows (Ostrom, 1990), local development projects are partly based on the ability of social actors to create collective intelligence (Heurgon, 2006) through deliberation in public spaces (Habermas, 1978), involving all stakeholders, including Universities (Goujon, Goyet, Poisat, 2011). However, local democracy cannot be imposed and collective intelligence requires broad mobilization. Consequently, the questions of the actors' coordination and of the emergence of new forms of regulations in territories become strategic, including in the social sector. Thus, after a long period of social innovations, the organizations in social and solidarity economy (SSE) experiment new forms of coordination between actors, companies and local authorities to pool resources and develop cooperative projects in territories. For example, the concept of "territorial clusters of economic cooperation" (TCEC), which was inspired by the French competitiveness clusters launched in 2005, has recently emerged under the influence of the main networks of SSE. This approach was backed by public authorities. |
| Keywords: | deliberation,entrepreneurship,governance,local authorities,social innovation,TCEC |
| Date: | 2015–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01216991&r=ent |
| By: | Feser, Daniel; Proeger, Till |
| Abstract: | This paper investigates barriers to effective knowledge spillovers for markets in which the product can be characterized as a credence good, i.e. its complexity impedes the evaluation of quality by customers both ex-ante and ex-post. We focus on the German market for energy efficiency consultants, as an emerging and subsidized sector in which the service offered has strong credence good properties. Based upon in-depth interviews with stakeholders, we analyze the determinants and barriers to knowledge spillovers. We find that the incentive to foster spillovers to increase suppliers´ knowledge is limited by the difficult commercialization of additional capabilities. The implementation of a public certification scheme has failed to increase the sectoral knowledge spillovers. By contrast, the participation in formal knowledge networks has been more effective in prompting companies to foster knowledge spillovers, which has also led to a higher degree of specialization. We conclude that access to certification schemes should be further restricted to increase market transparency and private networks should be supported to achieve the aim of increasing knowledge spillovers. |
| Keywords: | credence goods,knowledge spillover theory of entrepreneurship,network |
| JEL: | D21 D82 H41 K23 L14 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:259&r=ent |