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on Entrepreneurship |
| By: | Pedro Bento; Lin Shao; Faisal Sohail |
| Abstract: | The prevalence of entrepreneurs, particularly low-productivity non-employers, declines as economies develop. This decline is more pronounced for women. Relative to men, women are more likely to be entrepreneurs in poor economies but less likely in rich economies. We investigate whether gender gaps in time dedicated to non-market activities, which narrow with development, can account for this pattern. We develop a quantitative framework in which selection into occupations depends on one’s ability and time and features gender-specific distortions and social norms around market work. When we calibrate the model to match cross-country data, we find that differences in social norms are almost entirely responsible for the patterns of gender gaps in both time use and entrepreneurship. Through affecting time use and entrepreneurship, social norms account for a substantial part of cross-country differences in output per worker and firm size and have significant welfare implications for women. |
| Keywords: | Firm Dynamics; Productivity |
| JEL: | J2 L2 O1 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-43 |
| By: | Villalba, Maria Luisa; Spinola, Danilo; Ruiz, Walter |
| Abstract: | This article explores the coevolutionary dynamics of immature innovation systems (IMIS), focusing on the role of marginalized agents often excluded from Conventional Innovation Systems (CIS). Marginalized agents, such as informal entrepreneurs or low-resource communities, are key actors in addressing local challenges but are typically overlooked in mainstream innovation processes, making it crucial to understand how they can be integrated into broader systems. Using an Agent-Based Model (ABM) based on Villalba (2023) and Ruiz et al. (2016), we examine how interactions between agents with different innovation and inclusion capabilities drive system evolution. The model integrates learning and unlearning processes, allowing agents to adapt and build capabilities over time. Through simulations that vary social thresholds, agent configurations, NOPI (Needs, Opportunities, Problems and Ideas) complexity, and the presence or absence of learning, we find that while higher social thresholds and complex NOPIs foster agent specialization, they can limit the inclusion of marginalized agents. Conversely, the absence of learning results in system stagnation despite increased short-term inclusion. By adopting a system-wide perspective, this paper contributes to the literature on innovation systems by analyzing how the relationships between marginalized and conventional actors influence inclusion dynamics. Our ABM captures the complex interplay of inclusion, coevolution, and capability complementarity within IMIS, offering deeper insights into how marginalized agents drive inclusive innovation and emphasizing the importance of fostering both innovation and inclusion capabilities for sustainable, equitable outcomes. |
| Keywords: | Coevolution; Heterogeneous agents; Immature innovation system; Developing countries; Excluded agents |
| Date: | 2024–11–08 |
| URL: | https://d.repec.org/n?u=RePEc:akf:cafewp:31 |
| By: | Ho, Sin Yu; Beri, Parfait Bihkongnyuy |
| Abstract: | Although small and medium-scale enterprises (SMEs) finance and technical support have become critical economic development strategies for many countries in Africa and numerous micro-level studies have examined their effects on firm performance, evidence of how SMEs impact economic growth and the causal pathways remains mixed and largely debatable. Based on different strands of the literature, this study hypothesises a nonlinear relationship between SMEs and economic growth. Regressing growth on SME data as measured by the number of newly registered businesses in 40 African countries from 2006 to 2022, we find support for a nonlinear relation of an inverted U-shape. The results suggest that African countries may pursue policies aimed at boosting SME support as a tool for macro-level development. However, the transient effects of SMEs also suggest the need to consider strategies to ensure that its effects remain positive and sustainable over the long run. While policymakers could consider country-specific studies to understand and design innovative strategies to support the SME sector, more research is required on the types of SMEs and the conditions under which they may influence growth in Africa. |
| Keywords: | Small and medium-size enterprises, SMEs, entrepreneurship, economic growth |
| JEL: | M21 O3 O4 O47 P5 P52 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122552 |
| By: | Amina Ebrahim; Sebastián Castillo; Vincent Leyaro; Ezekiel Swema; Oswald Haule; Massaga Fimbo; Ephraim Mdee |
| Abstract: | This study measures the VAT compliance gap for small and medium-sized entities in Tanzania. Specifically, the study measures the under-reporting component of the VAT compliance gap. This study uses VAT declaration and audit data to conduct a bottom-up estimation to measure the extent of VAT misreporting in small, medium, and micro enterprises. The study's objective is to examine the extent of VAT under-reporting from 2014 to 2020 and identify the behaviour of firms that contribute to the VAT gap. |
| Keywords: | Value-added tax, Tax compliance, Tax gap, Audits, Bottom-up approach, Income under-reporting |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-66 |
| By: | Batabyal, Amitrajeet; Beladi, Hamid |
| Abstract: | We analyze how a permanent shift in political power in a region that is creative a la Richard Florida affects tax policy and economic outcomes. There are three groups of individuals in our region: laborers or workers, creative class members or entrepreneurs, and the elites. The elites initially hold political power but then they lose it to the creative class. We describe the Markov perfect equilibrium of the political game between the above three groups. Specifically, we first derive the optimal taxes that are levied on the elites and on the creative class, by the creative class. Next, we compute the discounted utility of the elites when the creative class holds political power and compare this to their utility when they are in control of politics. |
| Keywords: | Creative Class, Elite, Entrepreneur, Political Game, Tax Policy |
| JEL: | H21 R11 |
| Date: | 2024–06–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122595 |