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on Small Business Management |
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Issue of 2010‒02‒27
five papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Arvind Ashta (Centre Emile Bernheim, CERMi, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels and CEREN, Burgundy School of Business (Groupe ESC Dijon-Bourgogne), France); Sophie Raimbault (CEREN, Burgundy School of Business (Groupe ESC Dijon-Bourgogne), France) |
| Abstract: | France has a rather low rate of enterprise creation. Institutional analysis helps to explain why this is so. Nevertheless, in the last few years since 2003, France has been modernizing its legal framework to stimulate enterprise creation and this has achieved some success. A new regime of Auto-entrepreneur has recently been introduced in early 2009 as a new start up mechanism, creating a lot of buzz. This paper presents the new French regime and its accountancy and tax inputs, explaining the economic motivations of the new institution and its limitations. The paper presents results of a questionnaire administered to CEO's of small business enterprises on their perceptions of this regime. The research indicates that the entrepreneurship law is perceived to be risky for tax and social security revenues, lack of entrepreneurial capabilities, lack of social security net for failed entrepreneurs, and increased competition for small enterprises from their own employees. Future directions for research are indicated in entrepreneurship and microfinance, business regulation and globalization. |
| Keywords: | Entrepreneurship, microenterprise, microcredit, French law, socialism, capitalism, regulatory analysis. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:09-058&r=sbm |
| By: | Aghion, P.; Blundell, R.; Griffith, R.; Howitt, P.; Prantl, S. |
| Abstract: | How does firm entry affect innovation incentives in incumbent firms? Microdata suggest that there is heterogeneity across industries. Specifically, incumbent productivity growth and patenting is positively correlated with lagged greenfield foreign firm entry in technologically advanced industries, but not in laggard industries. In this paper we provide evidence that these correlations arise from a causal effect predicted by Schumpeterian growth theory—the threat of technologically advanced entry spurs innovation incentives in sectors close to the technology frontier, where successful innovation allows incumbents to survive the threat, but discourages innovation in laggard sectors, where the threat reduces incumbents' expected rents from innovating. We find that the empirical patterns hold using rich micro panel data for the United Kingdom. We control for the endogeneity of entry by exploiting major European and U.K. policy reforms, and allow for endogeneity of additional factors. We complement the analysis for foreign entry with evidence for domestic entry and entry through imports. |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:ner:ucllon:http://eprints.ucl.ac.uk/15901/&r=sbm |
| By: | Sugato Chakravarty (Purdue University); Meifang Xiang (University of Wisconsin, Whitewater) |
| Abstract: | We investigate the cross-country determinants of profit reinvestment decisions, using data compiled by the World Bank from around 7,000 businesses in 34 countries. We find that, compared to the security of property rights, it is a firm’s access to external financing that plays a significant role in a firm’s reinvestment decision in emerging economies. The extent of private ownership and the level of competition faced by firms are additional significant factors correlated with the reinvestment decision. Furthermore, we uncover a firm size effect in that the above factors driving firm reinvestment decision appears to impact small firms more than the relatively larger firms. Our findings complement, as well as build on, those from China and a few Eastern European countries. |
| Keywords: | Reinvestment; investment; external financing; property rights; competition |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:csr:wpaper:1001&r=sbm |
| By: | Rita De Siano; Marcella D'Uva (-) |
| Abstract: | This paper investigates the determinants of Italian regional specialization in the period 1995-2006. In particular, it tests and evaluates the presence of spatial autocorrelation in sectoral specialization patterns by the use of spatial econometrics tools. Results show positive effects of neighbouring regions specialization for advanced industry and services sectors and hence a progressive synchronization of economic cycles. By contrast, sectors traditionally considered backward, evidence the presence of a core-periphery structure. The introduction of spatial effects in the general regression model increases the number of significant explicative variables. In accordance with the findings from New Economic Geography openness and market access positively affect regional specialization in most of the considered sectors. |
| Keywords: | Specialization, Regional growth, Spatial Econometrics. |
| JEL: | C13 C21 R11 R12 |
| Date: | 2010–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:prt:dpaper:1_2010&r=sbm |
| By: | Hunt, Jennifer (McGill University) |
| Abstract: | Using the 2003 National Survey of College Graduates, I examine how immigrants perform relative to natives in activities likely to increase U.S. productivity, according to the type of visa on which they first entered the United States. Immigrants who first entered on a student/trainee visa or a temporary work visa have a large advantage over natives in wages, patenting, commercializing or licensing patents, and publishing. In general, this advantage is explained by immigrants’ higher education and field of study, but this is not the case for publishing, and immigrants are more likely to start companies than natives with similar education. Immigrants without U.S. education and who arrived at older ages suffer a wage handicap, which offsets savings to the United States from their having completed more education abroad. Immigrants who entered with legal permanent residence do not outperform natives for any of the outcomes considered. |
| Keywords: | immigration, innovation, entrepreneurship, visa type, wages |
| JEL: | J61 J24 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4745&r=sbm |