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on Entrepreneurship |
| By: | Douglas Cumming; Randall Morck; Zhao Rong; Minjie Zhang |
| Abstract: | Because corporate limited liability protects founder’s personal assets, creditors often require founders of new, small and risky firms to contract around limited liability by pledging their personal assets as collateral for loans to their firms. This makes personal bankruptcy law (PBL) relevant to corporate finance. We find that pro-debtor PBL reforms increase the number of patents filed, citations to those patents, and début patents by firms with no previous patents. These reforms also redistribute innovation across industries in closer alignment to its distribution in the U.S., which we take to approximate industry innovative potential. These effects are driven by firms without histories of high-intensity patenting, and are damped in countries that impose minimum capital requirements on new firms. Firms with largescale legacy technology may avoid radical innovations that devalue that technology. Consequently, new, initially small and risky firms often develop the disruptive innovations that contribute most to economic growth. Consistent with this, we also find pro-debtor PBL reforms increasing value-added growth rates across all industries, and by larger margins in industries with more innovation potential. Our difference-in-differences regressions use patents and PBL reforms for 33 countries from 1990 to 2002, with subsequent years used to measure citations to patents in this period. |
| JEL: | G33 G5 K35 O3 O4 P1 P50 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32826 |
| By: | Leonardo Mazzoni; Massimo Riccaboni; Erik Stam; ; |
| Abstract: | The quality of entrepreneurial ecosystems not only enables local startups, but also affects the attraction and supply of non-local founders. We conceptualize entrepreneurial ecosystems as open systems with inflows and outflows of entrepreneurial talent. Beyond individual agency, these talent flows are driven by the quality of the origin and destination entrepreneurial ecosystems. We use network analysis and gravity models to study the interregional flows of founders of non-local startups within Italy, and find empirical evidence for creation, attraction and supply mechanisms of entrepreneurial ecosystems. Entrepreneurial ecosystems provide a supportive environment for the creation of local startups, but also attract non-local (potential) founders. In addition, we reveal an escalator mechanism: (prospective) entrepreneurs tend to move from good to better entrepreneurial ecosystems. |
| Keywords: | entrepreneurial ecosystems; innovative startups; talent flows; non-local founders; complex systems; gravity models |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2426 |
| By: | Verbouw, Jeroen (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:e9d46d8a-a254-4502-941c-ae47a2bcecec |
| By: | Chuantao Cui (Bay Area International Business School, Beijing Normal University); Leona Shao-Zhi Li (University of Macau) |
| Abstract: | This study explores how local leaders’ career incentives influence entrepreneurial activity in China. We identify a positive relationship between high-incentive leaders and the entry rate of new manufacturing firms, facilitated by access to capital and land and the implementation of place-based policies. However, firms that enter the market under high-incentive leaders tend to experience lower productivity growth and lower survivability, highlighting a quantity–quality trade-off. This quality deficit is linked to a mismatch between the types of new entrants and local economic fundamentals. Additionally, the responsiveness of manufacturing exit rates, productivity growth of existing manufacturers, and service firm dynamics to leader incentives appears minimal. Overall, by illuminating both the advantages and limitations of second-best institutions through the lens of firm entry, our study provides new insights into the institutions–growth nexus and offers a cohesive framework for understanding the growth and slowdown of the Chinese economy. |
| Keywords: | Informal institution; career incentives; economic growth; firm dynamics; entrepreneurship |
| JEL: | H70 L26 O43 P35 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:boa:wpaper:202417 |
| By: | Teng Ye; Jingnan Zheng; Junhui Jin; Jingyi Qiu; Wei Ai; Qiaozhu Mei |
| Abstract: | While small businesses are increasingly turning to online crowdfunding platforms for essential funding, over 40% of these campaigns may fail to raise any money, especially those from low socio-economic areas. We utilize the latest advancements in AI technology to identify crucial factors that influence the success of crowdfunding campaigns and to improve their fundraising outcomes by strategically optimizing these factors. Our best-performing machine learning model accurately predicts the fundraising outcomes of 81.0% of campaigns, primarily based on their textual descriptions. Interpreting the machine learning model allows us to provide actionable suggestions on improving the textual description before launching a campaign. We demonstrate that by augmenting just three aspects of the narrative using a large language model, a campaign becomes more preferable to 83% human evaluators, and its likelihood of securing financial support increases by 11.9%. Our research uncovers the effective strategies for crafting descriptions for small business fundraising campaigns and opens up a new realm in integrating large language models into crowdfunding methodologies. |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.09480 |
| By: | Mons Chan; Guangbin Hong; Joachim Hubmer; Serdar Ozkan; Sergio Salgado |
| Abstract: | Do larger firms have more productive technologies or are their technologies more scalable, or both? We use administrative data on Canadian and US firms to estimate flexible nonparametric production functions. Our estimation results in a joint distribution of output elasticities of capital, labor, and intermediate inputs---therefore, returns to scale (RTS)---along with total factor productivity (TFP). We find significant heterogeneity in both RTS and TFP across firms. Larger firms operate technologies with higher RTS, both across and within industries. Higher RTS for large firms are entirely driven by higher intermediate input elasticities. Descriptively, these align with higher intermediate input revenue shares. We then incorporate RTS heterogeneity into an otherwise standard incomplete markets model with endogenous entrepreneurship that matches the observed heterogeneity in TFP and RTS. In this model, we find that the efficiency losses of financial frictions are more than twice as large relative to the conventional calibration that loads all heterogeneity on TFP and imposes a common RTS parameter. |
| Keywords: | production function heterogeneity; returns to scale; misallocation |
| JEL: | E22 L11 |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:98702 |
| By: | Yao Lu; Gordon M. Phillips; Jia Yang |
| Abstract: | We examine the rise of cloud computing and AI in China and their impacts on industry dynamics after the shock to the cost of Internet-based computing power and services. We find that cloud computing is associated with an increase in firm entry, exit and the likelihood of M&A in industries that depend more on cloud infrastructure. Conversely, AI adoption has no impact on entry but reduces the likelihood of exit and M&A. Firm size plays a crucial role in these dynamics: cloud computing increases exit rates across all firms, while larger firms benefit from AI, experiencing reduced exit rates. Cloud computing decreases industry concentration but AI increases concentration. On the financing side, firms exposed to cloud computing increase equity and venture capital financing, while only large firms increase equity financing when exposed to AI. |
| JEL: | D25 G3 G34 L20 L23 L25 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32811 |
| By: | Jean Nsonsumuna |
| Abstract: | Les recherches sont unanimes sur le rôle des PME dans toutes les économies et sur leurs contraintes d’accès au financement. Ces contraintes entravent bien entendu le développement des PME et donc leur croissance. Les acteurs de la finance entrepreneuriale proposent une gamme d’instruments, notamment en matière de capital-investissement. Au sein de ceux-ci, le crowdfunding s’est considérablement développé au cours des dernières années à travers le monde. Il est devenu une alternative viable à différents modes de financement et se présente comme un outil adapté de financement des PME dans les économies en développement. Notre thèse étudie les conditions de succès de lancement et/ou de faisabilité d’une plateforme de crowdfunding en RDC en répondant à la question « Est-il est possible de lancer une plateforme de crowdfunding en République démocratique du Congo (RDC) ?».Notre thèse se compose de trois articles qui y répondent progressivement. Le premier article répond à la question « quels sont les défis et opportunités du crowdfunding en Afrique ?». Adoptant une approche écosystémique et à travers une analyse de 105 articles scientifiques, il synthétise l’état, les défis et opportunités du développement du crowdfunding en Afrique. Cette analyse ouvre des pistes de recherche notamment sur les conditions d’exploitation des plateformes qui font l’objet de notre deuxième article. Le deuxième article répond à la question « quelles sont les conditions de succès du lancement d’une plateforme de crowdfunding ?». Adoptant une approche qualitative basée sur la méthode d’analyse par théorisation ancrée et l’analyse de contenu, il développe un cadre d’analyse des conditions de succès de lancement d’une plateforme de crowdfunding en deux temps :(1) une consultation de 13 experts du crowdfunding à travers des entretiens semi-structurés, et (2) une enquête auprès de 115 plateformes à l’échelle internationale. Le cadre d’analyse s’est construit autour de quatre catégories des conditions de succès :infrastructure, offre et demande de financement et les modalités de mise en œuvre de la plateforme elle-même. Le test de ce cadre d’analyse en RDC a fait l’objet de notre troisième article. Le troisième article répond à la question « quelles sont les conditions de faisabilité et/ou de lancement d’une plateforme de crowdfunding en RDC ?». Adoptant une approche d’analyse qualitative sur base de 47 entretiens semi-structurés avec les acteurs clés de l’écosystème du crowdfunding congolais, il teste systématiquement toutes les conditions de succès d’une plateforme de crowdfunding. Les résultats de l’étude ont permis de constater que, sur le plan de la faisabilité d’une plateforme de crowdfunding, les conditions d’offre et de demande de financement sont satisfaisantes et valident l’intérêt d’une telle initiative. Cependant, les conditions d’infrastructure et de mise en œuvre sont moins satisfaisantes, notamment en ce qui concerne le cadre réglementaire, le fonctionnement des services financiers et le climat des affaires. Ces résultats apportent une réponse à notre question de recherche. Sur le plan d’offre et de demande de financement, il est possible de lancer une plateforme de crowdfunding en RDC. Par contre, les conditions d’infrastructure et de mise en œuvre de la plateforme elle-même sont moins satisfaites. Des adaptations sont nécessaires pour lancer une première plateforme de crowdfunding dans le pays. Ce qui nous permet de conclure en proposant un business modèle pour une plateforme de crowdlending en RDC ainsi que les étapes de son lancement. |
| Abstract: | Research is unanimous on the role of SMEs in all economies and their constraints in accessing financing. These constraints obviously hinder the development and thus the growth of SMEs. Players in entrepreneurial finance offer a range of instruments, particularly in private equity. Among these, crowdfunding has significantly developed over the past few years worldwide. It has become a viable alternative to various modes of financing and serves as a suitable financing tool for SMEs in developing economies.Our thesis studies the conditions for the successful launch and/or feasibility of a crowdfunding platform in the Democratic Republic of Congo (DRC) by addressing the question, "Is it possible to launch a crowdfunding platform in the Democratic Republic of Congo (DRC)?". Our thesis comprises three articles that progressively address this question.The first article answers the question, "What are the challenges and opportunities of crowdfunding in Africa?". Adopting an ecosystem approach and through an analysis of 105 scientific articles, it synthesizes the state, challenges, and opportunities of crowdfunding development in Africa. This analysis opens up research avenues, particularly on the operational conditions of platforms, which are the subject of our second article.The second article answers the question, "What are the conditions for the successful launch of a crowdfunding platform?". Adopting a qualitative approach based on grounded theory and content analysis, it develops a framework for analyzing the conditions for the successful launch of a crowdfunding platform in two stages: (1) a consultation of 13 crowdfunding experts through semi-structured interviews, and (2) a survey of 115 platforms at an international level. The analysis framework is built around four categories of success conditions: infrastructure, supply and demand for financing, and the implementation modalities of the platform itself. The testing of this analysis framework in the DRC is the subject of our third article.The third article answers the question, "What are the conditions for the feasibility and/or launch of a crowdfunding platform in the DRC?". Adopting a qualitative analysis approach based on 47 semi-structured interviews with key actors in the Congolese crowdfunding ecosystem, it systematically tests all the success conditions for a crowdfunding platform. The study results indicated that, in terms of the feasibility of a crowdfunding platform, the conditions of supply and demand for financing are satisfactory and validate the interest in such an initiative. However, the infrastructure and implementation conditions are less satisfactory, particularly regarding the regulatory framework, the functioning of financial services, and the business climate.These results provide an answer to our research question. In terms of supply and demand for financing, it is possible to launch a crowdfunding platform in the DRC. On the other hand, the infrastructure and implementation conditions are less satisfactory. Adaptations are necessary to launch the first crowdfunding platform in the country. This allows us to conclude by proposing a business model for a crowdlending platform in the DRC, along with the steps for its launch. |
| Keywords: | Crowdfunding; Plateformes; Conditions de succès; PME; RDC |
| Date: | 2024–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/376678 |
| By: | Bijedić-Krumm, Teita; Brink, Siegrun |
| Abstract: | Diese Studie untersucht anhand einer systematischen Literaturanalyse internationaler Fachveröffentlichungen, welche Auswirkungen institutionelle Rahmenbedingungen und die Ressourcenverfügbarkeit auf den Gender Gap in der unternehmerischen Selbstständigkeit haben. Obwohl die Förderung weiblichen Unternehmertums schon lange ein wirtschaftspolitischer Fokus ist und bereits zahlreiche Bemühungen unternommen wurden, die Selbstständigkeit von Frauen zu fördern, schließt sich der Gender Gap in der unternehmerischen Tätigkeit national wie international kaum. Die vorliegenden Studien richten sich insbesondere auf politische Bemühungen zur geschlechtersensiblen Gestaltung institutioneller Rahmenbedingungen. Es zeigt sich, dass für eine wirksame Unterstützung des Unternehmertums von Frauen langfristige Maßnahmen notwendig sind, die auf einen Wandel der Geschlechterrollen und des nach wie vor männlich geprägten Unternehmerbildes abzielen. |
| Abstract: | This study uses a systematic literature review of international publications to examine the effects of institutional framework conditions and the availability of resources on the gender gap in entrepreneurship. Although fostering female entrepreneurship has long been a focus of economic policy, the gender gap in entrepreneurial activity is hardly closing either nationally or internationally. The existing studies focus in particular on political efforts to create a gender-sensitive institutional framework. Long-term measures aimed at changing gender roles and the still male-dominated image of entrepreneurship are necessary to effectively support female entrepreneurship. |
| Keywords: | Unternehmertum von Frauen, Institutionelle Förderung, female entrepreneurship, gender gap, political support |
| JEL: | L26 L29 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifmmat:301162 |