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on Entrepreneurship |
| By: | Gert Bijnens; Joep Konings |
| Abstract: | We build on Decker et al. (2016) who show that business dynamism and entrepreneurship in the U.S. have declined over recent decades and that the characteristics of this decline changed around 2000. Since 2000 the U.S. decline in dynamism has been accompanied by a decline in high-growth, young firms. Using 30 years of data from all for-profit firms incorporated in Belgium, we now offer evidence that Belgium, a far more rigid economy than the U.S., experienced a similar decline in dynamism. Furthermore, the decline set in around 2000 as well. We attribute this not only to the declining share of young firms that become high-growth firms, but more importantly also to the declining propensity for small (not necessarily young) firms to experience fast growth. We do not yet know what caused this decline. Since there are remarkable similarities between Belgium and the U.S. with respect to the secular decline in business dynamism, global trends rather than country specific changes are most likely to be at the basis of this evolution. A possible global trend causing dynamism to decline, is the ICT revolution that started the second half of the ’90s. We find preliminary indications that industries with higher ICT intensity have experienced a dynamism trend change during that same period and show a steeper dynamism decline. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:614199&r=all |
| By: | Loren Brandt; Gueorgui Kambourov; Kjetil Storesletten |
| Abstract: | Labor productivity in manufacturing differs starkly across regions in China. We document that productivity, wages, and start-up rates of non-state firms have nevertheless experienced rapid regional convergence after 1995. To analyze these patterns, we construct a Hopenhayn (1992) model that incorporates location-specific capital wedges, output wedges, and entry barriers. Using Chinese Industry Census data we estimate these wedges and examine their role in explaining differences in performance and growth across prefectures. Entry barriers explain most of the differences. We investigate the empirical covariates of these entry barriers and find that barriers are causally related to the size of the state sector |
| Keywords: | Chinese economic growth; SOEs; firm entry; entry barriers; capital wedges; output wedges; SOE reform. |
| JEL: | O11 O14 O16 O40 O53 P25 R13 D22 D24 E24 |
| Date: | 2020–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-652&r=all |
| By: | McQuinn, John (Central Bank of Ireland) |
| Abstract: | Small and Medium Enterprise (SME) access to credit deteriorated during the financial crisis and credit constraints remain high for some euro area countries. This paper investigates the factors linked to the variation in SME credit access across euro area countries. After controlling for the fundamental performance and characteristics of firms and bank funding costs, I investigate the financial and macroeconomic channels that explain variation in credit constraints across countries and time. The paper combines approaches taken in the literature, extends the analysis to the post-crisis period, distinguishes between alternative measures of credit constraints and incorporates the role of soft information. The most economically important channels associated with SME access to finance are found to be the soft information channel and firm indebtedness. Bank competition and the condition of bank balance sheets are also found to have economically important relationships with SME access to finance. |
| Keywords: | access to finance, SMEs, financial crises, soft information, firm indebtedness, bank competition, bank balance sheets, capital markets union. |
| JEL: | G01 G21 D22 D82 E66 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:10/rt/19&r=all |
| By: | Sau, Lino (University of Turin) |
| Abstract: | Joseph Schumpeter and Hyman Minsky have devoloped, during their lives, both a theory of the business cycles and a theory of capitalist development. Minsky was influenced by Schumpeter during the period he spent at Harvard University in 1942 and he thought that Schumpeter vision of the capitalist process required an integration of financial markets and investment behaviour: roughtly speaking, Minsky’s financial keynesianism was what Schumpeter needed to complete his own theory of the devoloping of a capitalist economy. Minsky explored an even broader historical framework during the last decade of his life: the theory of capitalist development along the idea that there are many types of capitalism. As pointed out by Whalen (2001) to analyse each stage of capitalist development following Minsky’s perspective, one should ask what is the distinctive activity being financed, what is the pivotal source of financing, and what is the balance of economic power between those in business and in banking/finance activity. Capitalist development is shaped by the institutional structure, but this structure is always evolving in response to profit-seeking activity. The financial system takes on special importance in this theory not only because finance exerts a strong influence on business activity but also because this system is particularly prone to innovation. In this paper, I shall focus particularly on this analysis trying to up-date his taxonomy, taking into account the process of global financialisation, and comparing it with Schumpeter’s previous scrutinity on the evolution of capitalism. |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201923&r=all |
| By: | Goodman, Christopher B (Northern Illinois University) |
| Abstract: | Special districts are a numerous and unique form of local government in the United States. Unlike cities, counties, and towns, special districts are created and dissolved often. Using tools from the industrial organizations literature, this analyses examines patterns in creation and dissolution of special districts using Census of Governments data from 1972 to 2012. Overall, the rate of entry (creation) has been declining over time while the rate of exit (dissolution) has remained steady. New districts tend to be small relative to existing districts and and exhibit slow growth over time. Lastly, special districts do not appear susceptible to the "liability of newness" or exhibit high levels of infant organizational mortality that is common in the private sector. |
| Date: | 2019–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:zwgjh&r=all |
| By: | Van Roy, Vincent; Vertesy, Daniel; Damioli, Giacomo |
| Abstract: | Economic activities based on the invention, production and distribution of artificial intelligence (AI) technologies have recently emerged worldwide. Yet, little is known about the innovative activities, location and growth performance of AI innovators. This chapter aims to map and analyse the global innovative landscape of AI by exploring 155,000 patents identified as AI-related by means of text-mining techniques. It highlights the emergence and evolution of AI technologies and identifies AI hotspots across the world. It explores the scale and pervasiveness of AI activities across sectors, and evaluates the economic performance of AI innovators using firm accounting information. Finally, it assesses recent trends in venture capital investments towards AI as financial support to promising AI startups. Findings of this chapter reveal a tremendous increase in AI patenting activities since 2013 with a significant boom in 2015-2016. While most of AI patenting activities remain concentrated in the sectors of software programming and manufacturing of electronic equipment and machinery, there are clear signs of cross-fertilisation towards (non-tech) sectors. The market of AI patenting firms is very vibrant and characterised by a large increase of new and small players with economic performances above industry average. This trend is also reflected by the recent increase in venture capital towards AI startups. |
| Keywords: | Artificial intelligence,innovation,patents,robotics |
| JEL: | O31 O33 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:433&r=all |
| By: | Natanya Meyer (North-West University); Dhanashree Katekhaye (North-West University); Robert Magda (North-West University and Szent István university) |
| Abstract: | The majority of the Indian population resides in rural areas and their main livelihood is through agriculture and agriculture-related activities. In light of this, rural entrepreneurship is one of the vital contributors to economic development in this country. In many instances, rural entrepreneurs are also considered to be necessity-driven as they face many barriers and obstacles restricting growth. The main aim of this study is to determine rural entrepreneurs' perception of their achievements and how they influence the performance and growth of their businesses. The sample comprised entrepreneurs operating small or medium businesses in rural India more specifically the Vidarbha region. The study is empirical and exploratory and made use of a quantitative research design using a self-administered questionnaire. The study was conducted using a simple random sampling technique resulting in a final sample of 292 participants. Data was analysed using descriptive statistics and Chi-Square tests. The findings from the study revealed that entrepreneurship development provides new job opportunities and was stated as the most significant factor while the least important factors indicated that participants have the opinion that doing business in a rural area is not a good career option. The study concluded that entrepreneurship development provides new job opportunities and that people are aware of this. Furthermore, there is a significant relationship between the negative perception of rural people regarding entrepreneurship and entrepreneurial development. Recommendations include that government should create more favorable policies for business development. Business support services must be accessible to rural entrepreneurs in an attempt to change their perception about the lack of growth potential in rural areas. This would strengthen the enthusiasm among entrepreneurs as well as aspiring entrepreneurs in rural areas. |
| Keywords: | Entrepreneurship, rural, perception, opportunities, India |
| JEL: | L26 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9912244&r=all |
| By: | Meriem Mengi Elayoubi (CREG - Centre de recherche et d'études en gestion - UPPA - Université de Pau et des Pays de l'Adour) |
| Abstract: | Social networks stimulate business growth by creating opportunities, reducing transaction costs and develops knowledge exchange (Cavallo et al. 2018). However, conceptual and empirical research on the importance of the regional network on entrepreneurial decisions is still rather limited. Therefore, the purpose of this research is to explore the perception of local ecosystem through the lens of business founders. An exploratory study is conducted in order to better understand entrepreneurs behavior within their environment. Fifteen qualitative interviews reveal that local networking is systematically considered as playing an important role in the start-up creation. Therefore, communication among actors of entrepreneurial ecosystem is perceived as a key variable that actually creates conditions for network dynamism. This research concludes by discussing the main results obtained and focuses on the importance of interactions between local actors, through a communicative ecosystem. |
| Keywords: | network,communication,territory,regional,local,entrepreneurial ecosystem. |
| Date: | 2019–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02388485&r=all |
| By: | Dimitriadis, Stefan; Koning, Rembrand (Harvard Business School) |
| Abstract: | Why do some entrepreneurs benefit from their portfolio of peer advisers while others do not? In this study, we argue that communication practices are an important but overlooked factor in the formation of useful advice relationships between entrepreneurs, particularly in the context of developing economies. We hypothesize that improving entrepreneurs’ communication practices will affect the relationships they form and have implications for their business performance. To test our theory, we conducted a field experiment in Togo with 301 entrepreneurs who were randomized into a communication practices intervention that was embedded in a business training program. We found that entrepreneurs who were exposed to better communication practices perceived interactions more cooperatively and exchanged more information during those interactions. Moreover, improving communication practices also led to a 50 percent increase in the number of relationships entrepreneurs formed with peers. These relationships exhibited more matching based on skill and were more ethnically diverse. Finally, communication practices training also substantially increased entrepreneurs’ business performance. Our findings highlight how communication practices play a central role in entrepreneurs’ ability to form portfolios of relationships and perform in challenging business environments. |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hpvzr&r=all |
| By: | King Yoong Lim; Diego Morris |
| Abstract: | Economic shocks of the kind we recently witnessed with the 2008 global financial and economic crisis do not come around very often but when they do, their effect can be catastrophic, not the least because of their impact on businesses. Existing theories of how firms react to crises such as these are ambiguous and very little empirical evidence exist, particularly for the developing world. As such, our main contribution to the literature is to shed light on these issues, articulating a theoretical framework and testing it using three waves of cross-country innovation identifying survey implemented by the World Bank in Latin American economies. The three waves coincide with a timespan that covers before, during, and after the global crises. Our results provide strong support that firms alter their practices and witness different profit outcomes before and after a downturn depending on innovation decisions. In fact, we find evidence that indicates that the profitability gains from new products for firms may be higher during downturns. |
| Keywords: | Economic crisis, Innovation, Latin America, Productivity. |
| JEL: | D22 D24 O30 O31 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbs:wpaper:2020/01&r=all |
| By: | , Ariawan (University Ichsan Of Gorontalo); Sudarma, Made; , Djumahir; Maskie, Ghozali |
| Abstract: | status ;(post print South East Asia Journal of Contemporary Business, SEAJBEL 11 (2), 87-94 vol. , 2016) Micro SME sector is an important sector in the national economy moving. Management needs to manage internal resources owned by the management of intangible assets that are unique resources, cannot be duplicated, cannot be replaced, and rarely found among competitors. This article aims to explain the role of spiritual capital, human capital, structural capital, relational capital in improving the performance of SMEs. based resources based theory which is the company's resources as the main controller behind the performance and competitiveness. The results show the important role of spiritual capital, human capital, structural capital, relational capital in improving the performance of SMEs. |
| Date: | 2017–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:9ehdv&r=all |
| By: | Théogène Nsengiyumva (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université); Célestin Mayoukou (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Abstract: | L'objectif de cet article est d'identifier d'une part, les facteurs explicatifs du faible financement des microentreprises par les IMF et d'autre part,les facteurs explicatifs de la faible utilisation des produits financiers des IMF par les microentreprises. En utilisant le modèle probit et à partir des données d'une enquête réalisée auprès de 221 microentrepreneurs clients des IMF au Burundi, les résultats économétriques révelent que certaines caractéristiques des microentrepreneurs les empêchent à utiliser plus intensément les microcrédits des IMF. Parmi ces facteurs, nous pouvons citer par exemple la nature de l'hypothèque, l'âge de l'entrepreneurs, et d'autres empêchent les IMF à financer les microentrerises. C'est le cas de la nature du projet à financer, le niveau de formation de l'entrepreneur, le profil de celui-ci. D'autres facteurs encore sont pris en compte non seulement au moment de la demande d'un prêt, mais aussi dans le cas de l'accès. C'est le cas du niveau de richesse de l'entrepreneur. |
| Keywords: | microentreprise,Burundi,Microfinance,crédit,microentrepreneurs |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02336377&r=all |