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on Small Business Management |
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Issue of 2011‒04‒23
nine papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Heli Koski; Mika Pajarinen |
| Abstract: | Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies. |
| Keywords: | public subsidies, technology policy, growth, Finland |
| JEL: | J23 L10 O33 |
| Date: | 2011–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1246&r=sbm |
| By: | Ayyagari, Meghana; Demirguc-Kunt, Asli; Maksimovic, Vojislav |
| Abstract: | This paper describes a unique cross-country database that presents consistent and comparable information on the contribution of the small and medium enterprises sector to total employment, job creation, and growth in 99 countries. The authors compare and contrast the importance of small and medium enterprises to that of young firms across different economies. They find that small firms (in particular, firms with less than 100 employees) and mature firms (in particular, firms older than 10 years) have the largest shares of total employment and job creation. Small firms and young firms have higher job creation rates than large and mature firms. However, large firms and young firms have higher productivity growth. This suggests that while small firms employ a large share of workers and create most jobs in developing economies their contribution to productivity growth is not as high as that of large firms. |
| Keywords: | Labor Markets,Microfinance,Small Scale Enterprise,Labor Policies,Emerging Markets |
| Date: | 2011–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5631&r=sbm |
| By: | Delmar, Frédéric (Research Institute of Industrial Economics and Center for Research in New Venture Creation and Growth); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Hellerstedt, Karin (Jönköping International Business School) |
| Abstract: | Endogenous growth theory is based on the notion that technological knowledge stimulates growth, yet the micro foundations of this process are rarely investigated and remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape for technology entrepreneurs to launch and grow new ventures. We investigate these theoretical contingencies of endogenous growth with two research questions at two levels of analysis: First, do industries with a greater need for new technology-based entrepreneurship grow disproportionately faster than other industries? Second, do the knowledge spillover effects foster the growth of new technology based firms contingent on certain industry structures? These questions are examined empirically, using a comprehensive employee-employer data set on the science and technology labor force in Sweden from 1995 to 2002. |
| Keywords: | Endogenous Growth; Entrepreneurship; Industry Evolution |
| JEL: | D24 L11 L26 M13 |
| Date: | 2011–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0165&r=sbm |
| By: | NAGAOKA Sadao; OWAN Hideo |
| Abstract: | This paper explores the sources of firm-level scale economies in R&D, based on unique project-level data from a new large-scale survey of Japanese inventors, matched with firm-level data. We focus on four sources: complementary assets, internal and external knowledge inflows, and inventor team size. Major findings include: (1) a larger firm tends to generate more patents from a research project but not more valuable patents, controlling for the objectives and the R&D investment (inventive efforts) for the project; (2) the sales of a firm rather than its R&D (or patent stocks) significantly affects the number of patents from the project, suggesting that the main source of such scale economy is not internal knowledge inflow but "appropriation advantage" of a large firm; (3) an inventor in a large firm often gains important knowledge for the project from internal knowledge inflow as well as from scientific literature. However, the performance of R&D-for which internal knowledge is important-tends to be low; and (4) the size of inventor teams increases with firm size and technological diversity. A larger team size is significantly associated with higher patent value and, as such, the size of the inventor team is one source of firm-level scale economies. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11038&r=sbm |
| By: | Tom Broekel; Matte Hartog |
| Abstract: | A key question raised in recent years is which factors determine the structure of inter-organizational networks. While the focus has primarily been on different forms of proximity between organizations, which are determinants at the dyad level, recently determinants at the node and structural level have been highlighted as well. To identify the relative importance of determinants at these three different levels for the structure of networks that are observable at only one point in time, we propose the use of exponential random graph models. Their usefulness is exemplified by an analysis of the structure of the knowledge network in the Dutch aviation industry in 2008 for which we find determinants at all different levels to matter. Out of different forms of proximity, we find that once we control for determinants at the node and structural network level, only social proximity remains significant. |
| Keywords: | exponential random graph models, inter-organizational network structure, network analysis, proximity, aviation industry, economic geography |
| JEL: | R11 D85 L14 L62 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1107&r=sbm |
| By: | Rola Nabil El Kabbani (Faculty of Management Technology, The German University in Cairo); Christian Kalhoefer (Faculty of Management Technology, The German University in Cairo) |
| Abstract: | Even though small and medium enterprises (SMEs) represent the majority of the Egyptian firms, their value added is relatively low. According to previous research, SMEs face a financing gap that causes undercapitalization and represents an obstacle that hinders SMEs from growth. This paper analyzes the current situation of SMEs in Egypt and addresses the question whether the financing problem still exists. In addition, we discuss the role of venture capital as a possible source of financing. Based on data which has been gathered using questionnaires, it is investigated whether Egyptian SMEs do know and would accept venture capital financing for their businesses. Our results show that access to finance is still a significant bottleneck for Egyptian SMEs. Venture capital financing could help to close this financing gap. |
| Keywords: | SME, Financing Gap, Venture Capital |
| JEL: | G24 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:guc:wpaper:28&r=sbm |
| By: | Liargovas , Panagiotis G.; Daskalopoulou, Irene F. |
| Abstract: | The present study analyzes the location of new economic activities in the 51 Greek prefectures (NUTS III level) as the outcome of agglomeration economies and other factors that are acknowledged as determinants of new firm location. Cross-section data referring to the location choices of firms in manufacturing, commerce, services and tourism within 2005 are used. Results indicate that agglomeration effects largely determine a region’s attractiveness and appropriateness as an investment location. In addition, the effect of other factors such as demand, expected profit and cost conditions is identified as important. Interestingly, regional characteristics seem to affect in different ways the location of start-ups belonging to different industries. |
| Keywords: | entrepreneurship; start-ups; location; agglomeration economies; regional development; data envelopment analysis; Greece |
| JEL: | L26 R11 R38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30116&r=sbm |
| By: | Dieter Kuhn (University of Basel) |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:02/11&r=sbm |
| By: | Jose Maria Millan (University of Huelva, Spain); Emilio Congregado (University of Huelva, Spain); Concepcion Roman (University of Huelva, Spain); Mirjam van Praag (ACE, University of Amsterdam); Andre van Stel (EIM Business and Policy Research, Zoetermeer, the Netherlands) |
| Abstract: | Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur’s venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994-2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country <I>j</I> and year <I>t</I> and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the probability that an entrepreneur starts employing personnel and maintains as an employer for a longer period of time. An implication of our novel finding is that entrepreneurship and higher education policies should be considered in tandem with each other. |
| Keywords: | entrepreneurship; performance; survival; personnel; education |
| Date: | 2011–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110066&r=sbm |