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on Entrepreneurship |
| By: | Josh Lerner; Junxi Liu; Jacob Moscona; David Y. Yang |
| Abstract: | Global innovation and entrepreneurship has traditionally been dominated by a handful of high-income countries, especially the US. This paper investigates the international consequences of the rise of a new hub for innovation, focusing on the dramatic growth of high-potential entrepreneurship and venture capital in China. First, using comprehensive data on global venture activities, we show that as the Chinese venture industry rose in importance, entrepreneurship increased substantially in other emerging markets, particularly in sectors dominated by Chinese companies. Using a broad set of country-level economic indicators, we find that this effect was driven by country-sector pairs most similar to their counterparts in China. Second, turning to mechanisms, we show that the baseline findings are driven by local investors and by new firms that more closely resemble existing Chinese companies. Third, we find that this growth in emerging-market investment had wide-ranging positive consequences, including a rise in serial entrepreneurship, cross-sector spillovers, innovation, and broader measures of socioeconomic well-being. Together, our findings suggest that developing countries benefited from more “appropriate” businesses and technology pioneered by China, and that a system where only rich countries lead in innovation could limit entrepreneurial activity in large parts of the world. |
| JEL: | O11 O33 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32193&r=ent |
| By: | Rajesh Raj Natarajan; Kunal Sen |
| Abstract: | The documented under-representation of marginalized groups in business ownership and the labour market is a concerning issue. This study explores how caste disparities in small-firm entrepreneurship impact on firm performance in India, focusing on the informal sector. Our examination shows a significant productivity gap between firms owned by disadvantaged castes and others, including Other Backward Classes and Forward Castes, across the productivity distribution. |
| Keywords: | Caste, Productivity gap, Informal sector, Firms, Discrimination, India |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-4&r=ent |
| By: | Samuel Bazzi; Marc-Andreas Muendler; Raquel F. Oliveira; James Rauch |
| Abstract: | This paper explores how financial constraints distort entry decisions among otherwise productive en- trepreneurs and limit growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit constraints can induce more entry of firms with greater long-run growth potential than the easing of conventional entry barriers would bring about. We study this growth mecha- nism using a large-scale program to expand the supply of credit to small and medium enterprises in Brazil. Local credit supply shocks generate greater firm entry but also greater exit with no effect on short-run employment growth in the formal sector. However, credit expansions increase average capability among entering firms, which enter at larger size, survive longer, and grow faster. These firm dynamics are more pronounced in areas with ex ante weaker credit markets and consistent with local bank branches using cheap targeted credit lines to expand lending more broadly. Our findings provide new evidence on the general equilibrium effects of credit supply expansions. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:589&r=ent |
| By: | Phumlani Nkontwana; Erik Stam |
| Abstract: | Many regions and countries aim to copy a Silicon Valley model of entrepreneurship-led development. We argue that this is misguided, in general, and in low income economies even more. We advocate an alternative approach that can be adapted to local context, with respect to both conditions and outcomes. We focus on a context with low incomes and massive population growth, with large cohorts of youngsters entering the economy: Africa. In this context there is a huge need for well-functioning entrepreneurial ecosystems to enable private sector development and more fundamentally to have the talents of a large new generation flourish and to tackle gigantic sustainable development challenges. We argue that for the entrepreneurial ecosystem approach to be useful for African economies it needs to be meaningful for the stakeholders involved, and that this can be achieved with locally-embedded narratives about the future of entrepreneurship in Africa. We analyze entrepreneurial ecosystem narratives that inform theory and policy practice of entrepreneurship-led development in Africa. Our argument is that for Africa, and other low income economy contexts as well, we need to embrace entrepreneurial ecosystem narratives that suit the local context and envisioned futures of the local stakeholders |
| Keywords: | entrepreneurial ecosystems, entrepreneurship-led developmentvelopment, Africa, context, narratives, futuring |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2305&r=ent |
| By: | Mirella Schrijvers; Jan Jacob Vogelaar |
| Abstract: | High-growth firms are known to contribute extraordinarily to economic growth and job creation, but concerns have been raised about their exclusionary focus on creating shareholder value. This paper adopts a stakeholder capability perspective to investigate social value creation by high-growth firms. Interviews with founders and CEOs of high-growth firms in the Netherlands provide insight into the mechanisms through which these firms create and destroy value for their stakeholders. We find that the rapid growth these firms experience can be a driver of some unique growth-related value creation mechanisms and serves as an amplifier of more general value creation mechanisms. The value creation of high-growth firms is shaped by certain firm attributes. This results in a typology of high-growth firms from a stakeholder value perspective, indicating three types: profit-driven high-growth firms, conscious high-growth firms, and mission-driven high-growth firms. While rapid growth presents firms with unique challenges and trade-offs between stakeholders, we argue that, if directed well, it also creates opportunities to substantially increase their social value creation. The heterogeneity of high-growth firms with respect to stakeholder value creation raises the question whether targeting high-growth firms in general is good entrepreneurship policy. |
| Keywords: | High-growth firms, Value creation, Stakeholder capabilities |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2307&r=ent |
| By: | Guangye Cao |
| Abstract: | Why would a blockchain-based startup and its venture capital investors choose to finance by issuing tokens instead of equity? What would be their rates of return for each asset? This paper focuses on the liquidity difference between the two fundraising methods. I build a three-period model of an entrepreneur, two types of investors, and users. Some investors have unforeseen liquidity needs in the middle period that can only be met with tokens. The entrepreneur obtains higher payoff by issuing tokens instead of equity, and the payoff difference increases with investors risk-aversion and need for liquidity in the middle period, as well as the depth of the token market. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.04662&r=ent |
| By: | Shishir Shakya; Joshua K. Bedi; Alicia Plemmons |
| Abstract: | The laws governing nurse practitioners’ scope of practice significantly impact the degree of autonomy and independence they have in their professional roles. Lowautonomy environments resulting from restrictions on nurse practitioners’ scope of practice can have long-term adverse effects on their recruitment, training, and retention. These laws directly affect the range of services they can offer, their decision-making authority, and their ability to establish and manage their practices. By lowering both monetary and non-monetary benefits of practice ownership, restrictions on independent practice make it more difficult for nurse practitioners to start a practice. Thus, these regulations potentially exacerbate the shortage crisis in primary care, especially within communities already struggling with access to healthcare. We track sole proprietor nurse practitioners in each US state from 2016- 2023 to analyze how the scope of practice laws influence sole proprietorship among nurse practitioners. Our results help lay the groundwork for future evidence-based policy surrounding nurse practitioner scope of practice. Key Words: Scope of Practice, Entrepreneurship, Nurse Practitioner, Primary Care, Healthcare Workforce |
| JEL: | D73 K42 O17 P16 J44 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-08&r=ent |
| By: | Mitra, Alessio; Di Girolamo, Valentina; Canton, Erik |
| Abstract: | This paper studies the firm-level drivers of product, process, organisation and marketing innovation in the EU with panel data from 2009 to 2021. Employing conditional logit and linear probability models we investigate how firms’ characteristics, firms’ sources of financing, and firm perception of different challenges influence their likelihood to innovate. In line with the academic literature, we find that firms’ size and profit level improve firms’ innovation performance, while firms’ age decreases it. We also observe that the effectiveness of different financing instruments varies considerably depending on whether the company is pursuing product, process, organisation or marketing innovation. Finally, innovative firms more frequently report access to finance and regulations as important challenges for their future, while the relevance of other challenges (e.g. the availability of skilled staff or finding customers) varies depending on what type of innovation activities companies are engaged in. |
| Keywords: | Access to finance, Financing instruments, Innovation challenges, Firm innovation |
| JEL: | G20 G23 O30 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283909&r=ent |