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on Entrepreneurship |
| By: | Jennifer C. Olmsted (Drew University); Bassam Yousif |
| Abstract: | To date analysis of the role of entrepreneurs in the Arab uprisings has been limited. We use micro level data highlighting entrepreneur grievances as one proxy for the role that class might have played in the Arab uprisings as well as examining entrepreneur opinions after the Arab uprisings. We find evidence that dissatisfaction with levels of corruption was particularly high in among entrepreneurs in Egypt, Syria and Yemen on the eve of the Arab uprisings, but we also find that Arab entrepreneurs throughout the region share concerns when it comes to macroeconomic stability, infrastructural short-comings and worker training, all of which are key to successful development. We also explore more recent data that indicate that entrepreneurs in a number of countries (some of which had regime changes, while others did not) remain concerned about corruption and various bureaucratic obstacles. However, we also notice that entrepreneurs had a wide range of often divergent views that varied according to size and country; these views were sometimes surprising and went against pre-conceptions of capitalists in the Middle East. Given the complexity of the grievances that triggered the Arab Uprisings, the data suggest no clear trend that could be said to forecast the uprisings, although the diversity of views of entrepreneurs presage to some extent the tensions surrounding post-uprising policy priorities, which in turn has contributed to the on-going policy impasse and instability in the region. |
| Date: | 2023–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1685&r=ent |
| By: | Masashige Hamano (Faculty of Political Science and Economics, Waseda University); Toshihiro Okubo (Faculty of Economics, Keio University) |
| Abstract: | This paper investigates the dynamics specific to various firm cohorts and their implications at an aggregate level. Utilizing a structural model that incorporates entry, exit, and selection of heterogeneous firms, we demonstrate that the dynamics of firms from each generation, and thus the historical economic landscape, can be reconstructed. Moreover, we estimate generation-specific parameters in both demand and supply within our theoretical model, using Japanese data. Our findings reveal that fixed operational costs for firms established immediately after the Second World War are relatively lower compared to subsequent generations of firms, resulting in an increased market congestion for these early-born enterprises. |
| Keywords: | Heterogeneity; fixed cost; business cycles |
| JEL: | D24 E23 E32 L11 L60 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:wap:wpaper:2307&r=ent |
| By: | Dienes, Christian; Schneck, Stefan; Wolter, Hans-Jürgen |
| Abstract: | This research note examines the relationship between start-up rates and GDP per capita growth in urban and rural regions in Germany. Hereby, we take into account that urban and rural areas differ markedly in their resource endowment for entrepreneurship, which might be responsible for different effects of start-up activity on regional development. Therefore, we examine the growth implications rural entrepreneurship might have on the local economy. Our results suggest that new business formation is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties. The results also unveil that the often-cited inverse U-shaped relationship between entrepreneurship and GDP growth is mainly evident in rural areas. |
| Keywords: | Regional growth, entrepreneurship, start-up rate |
| JEL: | L26 O18 O47 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:281788&r=ent |
| By: | Valentina Peruzzi (Sapienza University of Rome) |
| Abstract: | This paper investigates the impact of family ownership on firms’ adoption of open innovation strategies. Using data from the VIII UniCredit survey on medium-sized enterprises, we find that family ownership is positively and significantly associated with the adoption of open innovation models by firms. The propensity to engage in open innovation by family firms is particularly pronounced in firms involved in product innovation and in collaborations with suppliers. The paper also delves into the inherent characteristics of family owners, emphasizing that the positive association between family ownership and open innovation is largely driven by their long-term perspective and relational abilities. |
| Keywords: | open innovation; family firms; product innovation; process innovation; relational capital |
| JEL: | O36 G32 D22 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:lui:casmef:2401&r=ent |
| By: | Koshy, Perumal |
| Abstract: | Indian entrepreneurial ecosystem and policy framework evolved over the years as one with potential to facilitate new venture creation at ease. The current ecosystem and regulatory framework is much more entrepreneur and small business friendly. Enterprise ecosystem and entrepreneurship approach has to focus on nurturing economic & business who take the economy & society in the path of a sustainable future, while contributing to Global Sustainability Objectives and to be attuned to facilitate the formalization of informal sector enterprises, ease of doing business for micro and small enterprises. This chapter is an attempt to look at key aspects of Indian entrepreneurial system, its evolution and as well as some of the challenges, entrepreneurship policies and approaches, startup ecosystem, training and skill development challenges and addresses focal areas in the formalization of informal sector enterprises into formal enterprise space and how they can potentially contribute in attaining sustainable development goals (SDGs). |
| Keywords: | Small and Micro Enterprises, Enterprise Ecosystem; Startup ecosystem, Informal Sector Enterprises, Reforms to facilitate enterprise formalization, Skill development, Sustainable Development Goals: SDG-8, SDG-8.3, SDG12 SDG-4 |
| JEL: | E60 E61 L5 L52 L53 |
| Date: | 2023–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119757&r=ent |
| By: | Hanna Berkel; Finn Tarp |
| Abstract: | Worldwide, enterprises are hit by disasters such as cyclones and floods. Despite being impacted negatively, most enterprises do not prepare for future disasters. This study aims at understanding the determinants of enterprises' disaster preparedness. It first examines whether specific socio-psychological characteristics of entrepreneurs are associated with their enterprises' disaster preparedness. The second step includes an experiment providing enterprises with information about six specific and easy-to-implement measures of disaster preparedness. |
| Keywords: | Natural disasters, Firms, Informality, Information |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-2&r=ent |
| By: | Moloney, Kitty (Central Bank of Ireland); O'Gorman, Paraic (Central Bank of Ireland); O’Sullivan, Max (Central Bank of Ireland); Reddan, Paul (Central Bank of Ireland) |
| Abstract: | In this Note we focus on non-banks lending to small and medium-sized enterprises (SMEs). Understanding how non-bank lenders (NBLs) to SMEs fund themselves and the interconnections they have with other entities helps us to assess the lenders’ resilience and how their activities may impact the real economy. We find they have significant interconnections with European banks and other international financial entities, as well as with European parent non-financial companies (NFCs). We also present an activity-based taxonomy of NBLs to SMEs containing three main categories. Asset Finance Providers mainly receive funding through their (European) parent companies. Specialist Property and General Lenders rely on a mix of market-based sources of funding and the banking sector, and often borrow through variable rate loans. We suggest that Specialist Property Lenders are the most important category from a financial stability perspective as they are lending to a systemically important sector of the Irish economy, are specialist lenders (increasing concentration risk) and appear to be more sensitive to current financial conditions. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:fsnote:11/fs/23&r=ent |
| By: | Lu, Shun (Nottingham University Business School China, University of Nottingham Ningbo, China); Glushenkova, Marina (Nottingham University Business School China, University of Nottingham Ningbo, China); Huang, Wei (Nottingham University Business School China, University of Nottingham Ningbo, China,); Matthews, Kent (Cardiff Business School) |
| Abstract: | This study explores the impact of relationship banking on the financial constraints and loan conditions of small and medium-sized enterprises (SMEs) in China. Our research contributes to the literature in several ways. First, we examine both the financial costs and loan benefits associated with SME relationship banking, extending the scope of existing literature. Second, our study is unique in its focus on micro-enterprises, rather than large-scale listed companies in China. Lastly, we enhance the quality of the analysis by using direct measures of firms’ spending on bank relationships and their financial constraints, drawn from a recent survey on SMEs in China. Our findings are twofold. On one hand, bank relationship spending significantly reduces financial constraints for SMEs by facilitating access to loans. On the other hand, while this spending enables SMEs to secure more bank credit and longer-term loans, it also results in higher interest rates, increased guarantee requirements, and overall dissatisfaction with loan services. Our research provides new insights into the role of 'guanxi' in China's credit market and its consequences. |
| Keywords: | SME Financing, Relationship Banking, China, Financial Constraints |
| JEL: | G21 L14 O53 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2024/5&r=ent |
| By: | Marcelo S. Tedesco; Francisco Javier Ramos Soria |
| Abstract: | This study offers an examination of grassroots innovation actors and their integration within larger economic ecosystems. Through a comparative analysis in Oaxaca, Mexico; La Plata, Argentina; and Araucania, Chile, this research sheds light on the vital role that grassroots innovation plays in broader economic ecosystems. Using Complex Network Analysis and the TE-SER model, the study unveils how these actors interact, collaborate, and influence major economic ecosystems in the context of complex social challenges. The findings highlight that actors from the grassroots innovation ecosystem make up a significant portion of the larger innovation-driven entrepreneurial economic ecosystem, accounting for between 20% and 30% in all three cases and are strategically positioned within the ecosystem's structural network. Additionally, this study emphasizes the potential for greater integration of grassroots innovation actors to leverage resources and foster socio-economic development. The research concludes by advocating for further studies in similar socio-economic contexts to enhance our understanding of integration dynamics and mutual benefits between grassroots innovation ecosystems and other larger economic systems. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.06163&r=ent |
| By: | Prince HIKOUATCHA (University of Dschang, Dschang, Cameroon); Alain G. TAGNE FOKA (University of Dschang, Dschang, Cameroon); Armand D. FOSSI (University of Dschang, Dschang, Cameroon); Simplice A ASONGU (Johannesburg, South Africa) |
| Abstract: | Recent and ongoing advancements in the field of ICT have led to the introduction of increasingly diversified financial products, and their use is improving people's level of financial knowledge and skills. This article aims at assessing the effect of Fintech on the level of financial literacy of small business’ managers in Cameroon. To this end, information was gathered using a questionnaire from 209 small business managers in Cameroon. Descriptive statistics, Principal Component Analysis (PCA), and multiple linear regression are used. Results lead to two main conclusions. On the one hand, unlike knowledge of their existence, the frequency of use of Fintech tools is better able to contribute to improving financial literacy levels overall. On the other hand, specifically, this result is more important when it comes to competence and self-confidence in managing financial affairs. As a result, increasing the utilization of financial technology instruments in companies is imperative for efficiency. |
| Keywords: | Financial Skill; Financial Knowledge; Financial literacy; Fintech; Small business |
| JEL: | G53 M2 O33 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/070&r=ent |
| By: | Barbaglia, Luca (European Commission); Fatica, Serena (European Commission); Rho, Caterina (European Commission) |
| Abstract: | We document that European banks charge higher interest rates on loans granted to firms in areas at high risk of flooding. At 6 basis points, the average risk premium is rather small, and does not adequately reflect the deterioration of loan performance in the aftermath of flood episodes, however. Firms in flooded counties are more likely to default on their loans than non-disaster firms. Floods reduce securitised credit in the local markets, suggesting that physical risks associated with climate change are borne within the banking sector. |
| Keywords: | climate change, loan default, loan pricing, natural disasters |
| JEL: | C55 G21 Q51 Q54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:202314&r=ent |
| By: | TSURUTA Daisuke |
| Abstract: | We investigate what types of small businesses use bank loans during crisis periods, focusing on the global financial crisis (GFC) and the economic crisis caused by the coronavirus pandemic (COVID-19 crisis). Using comprehensive data on small businesses in Japan, we obtain the following results. First, during these two crisis periods, small businesses with low cash flow, high credit risk, and low sales growth borrowed more from banks. Second, these firms borrowed more during the COVID-19 crisis than during the GFC. Furthermore, ex post profitability of these firms was lower during the COVID-19 crisis, which was special in that vulnerable firms borrowed more from banks. Third, the increases in probability of default were not large during the early stages of the COVID-19 crisis but were economically significant in 2021. These results imply that massive financial support during the COVID-19 crisis delayed firm defaults. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24007&r=ent |