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on Small Business Management |
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Issue of 2015‒10‒04
nineteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Maya Grigolia; Lasha Labadze; Pavol Minarik; Alena Zemplinerova; Marek Vokoun |
| Abstract: | This report has been prepared in the framework of the project “Transfer of know-how to small and mid-size businesses” of the International Visegrad Fund (IVF) and USAID. It summarizes the conditions of the SME sector (small and medium size enterprises) in Georgia, identifies the main problems in their development and provides recommendations for further interventions based on the Czech experience, existing literature and a survey implemented among SME stakeholders.Georgia generally receives favorable evaluations of its business environment. It ranks high in indices of economic freedom and is among the top countries with respect to ease of starting and doing business. On the other hand, the SME sector suffers from several problems. The most serious obstacle to SME development seems to be in the area of finance; access to finance is difficult for SMEs and the cost of credit is high. Human capital and innovations are among the weak points of Georgian SMEs as well.The different shortcomings of the environment and markets call for different interventions. The paper is roadmap of concrete activities – it contains a set of recommendations to support SMEs development drawn on three different sources: first, the theoretical foundations of entrepreneurship policy, second, the Czech experience and know-how in the SME sector, and finally, the ideas of local experts and stakeholders generated during interviews and workshops.Activities and recommendations have been divided into “generic,” which relate to a particular determinant of business environment and have an impact across industries and sectors such as access to financing, education, developing skills training, R&D, innovation, export strategy, start-ups, and those which are “sector-specific,” such as banking, health and agriculture. Political stability, the main problem in Georgia, is beyond the scope of possible interventions. |
| Keywords: | small businesses, competition, liberalization, innovation, venture capital, business financing, skills and education |
| JEL: | D04 F23 L26 L30 M13 O25 O00 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnrepo:0123&r=all |
| By: | Braunerhjelm, Pontus (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH), & Swedish Entrepreneurship Forum); Ding, Ding (Centre of Excellence for Science and Innovation Studies (CESIS), & Royal Institute of Technology (KTH)); Thulin, Per (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH), & Swedish Entrepreneurship Forum) |
| Abstract: | According to the knowledge-based spillover theory of entrepreneurship (KSTE), entrepreneurship is positively associated with the knowledge endowment level. An increase in knowledge expands the opportunity set, which is then exploited by heterogeneous entrepreneurs. The objective of this paper is to empirically test the validity of the KSTE by employing a detailed database comprising more than 19 million observations for the period 2001–2008 at the level of individuals, firms and regions in Sweden. Knowledge is claimed to be partly embodied in labour, implying that an increase in labour mobility can be expected to influence knowledge endowment at the regional level. Our dependent variable is an individual who has remained in a region throughout the time period considered. Controlling for a number of other variables, inter-regional labour inflows and intra-regional mobility levels are shown to exert a strong positive effect on entrepreneurship. This contrasts with inter-regional outflows, which negatively affect entrepreneurial entry. Another noteworthy result is that the probability of exploiting an increased knowledge stock through entrepreneurship increases by 15 percentage points if the individual has previous experience in starting a firm. |
| Keywords: | Entrepreneurship; Knowledge-based spillover theory of entrepreneurship; Knowledge diffusion; Labour mobility |
| JEL: | J61 L26 O33 |
| Date: | 2015–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0422&r=all |
| By: | Eric Borchers (Creighton University); John Deskins (West Virginia University, College of Business and Economics); Amanda Ross (West Virginia University, College of Business and Economics) |
| Abstract: | The existing literature studying the relationship between small business activity and U.S. state tax policy has focused primarily on a few measures of small business. We expand this literature by estimating the effect of state tax policy on small businesses by using a broader measures of small business activity using a longitudinal dataset for the U.S. states. We also estimate the relationship between state tax policy and large business activity. Results provide evidence that state tax policy can influence small business firm, establishment, payroll, and employment growth in important ways but provide limited evidence that such policy significantly influences large business growth. |
| JEL: | H2 H7 R1 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:wvu:wpaper:15-13&r=all |
| By: | Britta Boyd (Department of Border Region Studies, University of Southern Denmark); Simon Fietze (Department of Border Region Studies, University of Southern Denmark); Kristian Philipsen (Department of Entrepreneurship and Relationship Management, University of Southern Denmark) |
| Abstract: | The research field of entrepreneurship gets more and more important in Denmark. The Global Entrepreneurship Monitor (GEM) and recently the Global University Entrepreneurial Spirit Students’ Survey (GUESSS) were carried out to gain more insights about entrepreneurial intentions and activities in Denmark. The origins of GUESSS go back to 2003 when researchers at the Swiss Research Institute of Small Business and Entrepreneurship at the University of St. Gallen (KMU-HSG) started the survey. The study is conducted every two years to explore the entrepreneurial intent and activity of students as well as the entrepreneurship training and education provided by universities in 34 countries around the world. In the sixth data collection wave Demark participated for the first time in 2013. The results for the Danish sample are presented in this report. The main findings are that Danish students have a rather low entrepreneurial intention. Their career intentions seem to follow the international pattern of first being an employee and then later becoming a founder. The report suggest to improve entrepreneurial intention among Danish students by stimulating entrepreneurial education at universities considering specific offers and activities for the different groups of entrepreneurial students as well as for students who not have considered becoming a founder yet. |
| Keywords: | entrepreneurial intention, succession intention, GUESSS, Denmark |
| JEL: | I21 I23 I28 L26 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:sdn:wpaper:9&r=all |
| By: | Peter Huber (Austrian Institute of Economic Research (WIFO)); Harald Oberhofer (Department of Economics, Vienna University of Economics and Business; Austrian Institute of Economic Research (WIFO)); Michael Pfaffermayr (University of Innsbruck; Austrian Institute of Economic Research (WIFO)) |
| Abstract: | This paper offers an empirical analysis of net job creation patterns at the firm level for the Austrian economy between 1993 and 2013 focusing on the impact of firm size and age. We propose a new estimation strategy based on a two-part model. This allows to identify the structural parameters of interest and to decompose behavioral differences between exiting and surviving firms. Our findings suggest that conditional on survival, young Austrian firms experience the largest net job creation rates. Differences in firm size are not able to explain variation in net job creation rates among the group of continuing enterprises. Job destruction induced by market exit, however, is largest among the young and small firms with this effect being even more pronounced during the times of the Great Recession. In order to formulate sensible policy recommendations, a separate treatment of continuing versus exiting firms as proposed by the new two-part model estimation approach seems crucial. |
| Keywords: | Net job creation, firm size, firm age, one-part versus two-part models, Austrian economy, Great Recession |
| JEL: | C18 C53 D22 E24 L25 L26 M13 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp205&r=all |
| By: | Ugo Rizzo; Laura Ramaciotti; Christian Dalla Mutta |
| Abstract: | The phenomenon of academic spin-off in Italy grew considerably from early 2000s. While the processes of spin-off creation have been widely studied, also about the Italian context, our knowledge about the nature of scientists that creates these firms remains rather scarce. In particular there are no investigations on the characteristics of these scientists referred to Italy. This work aims at moving a first step toward filling this gap. More specifically we focus on two main aspects characterising the nature of these scientists: their scientific sector and their academic role. The analysis conducted here only seeks to offer a descriptive contribution about the nature of these scientists, and therefore it contributes to delineate the academic spin-off phenomenon in Italy. |
| Keywords: | academic spin-off; Italy; scientist; founder; scientific sector; academic role |
| JEL: | O30 L26 |
| Date: | 2015–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:2015124&r=all |
| By: | Malamud, Semyon; Zucchi, Francesca |
| Abstract: | We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that liquidity constraints unambiguously lead firms to decrease their production rate but, surprisingly, may spur investment in innovation (R&D). Using the model, we characterize which firms substitute production for innovation when constrained and thus display a non-monotonic relation between cash reserves and R&D. We embed our single-firm dynamics in a Schumpeterian model of endogenous growth and demonstrate that financing frictions have an ambiguous effect on economic growth. |
| Keywords: | Cash management; Creative destruction; Endogenous growth; Financial constraints; Innovation |
| JEL: | D21 G31 G32 G35 L11 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10840&r=all |
| By: | F.C. Stam |
| Abstract: | Regional policies for entrepreneurship are currently going through a transition from increasing the quantity of entrepreneurship to the quality of entrepreneurship. The next step will be the transition from entrepreneurship policy towards policy for an entrepreneurial economy. The entrepreneurial ecosystem approach has been heralded as a new framework accommodating these transitions. This approach starts with the entrepreneurial actor, but emphasizes the context of productive entrepreneurship. Entrepreneurship is not only the output of the system, entrepreneurs are important players themselves in creating the ecosystem and keeping it healthy. This research briefing reviews the entrepreneurial ecosystem literature, its shortcomings, and provides a novel synthesis. The entrepreneurial ecosystem approach speaks directly to practitioners, but its causal depth and evidence base is rather limited. This article provides a novel synthesis including a causal scheme of how the framework and systemic conditions of the ecosystem lead to particular entrepreneurial activities as output of the ecosystem and new value creation as outcome of the ecosystem. In addition it provides a framework for analyzing the interactions between the elements within the ecosystem. This offers a much more rigorous and relevant starting point for subsequent studies into entrepreneurial ecosystems and the regional policy implications of these. |
| Keywords: | Entrepreneurial ecosystems, entrepreneurship, regional policy, economic policy |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1507&r=all |
| By: | Fornaro, Paolo; Luomaranta, Henri |
| Abstract: | In this paper, we use monthly employment data of Finnish firms to examine the differences in the employment behavior between big and small enterprises. In particular, we investigate which size class of firms has been growing more, which one has been the driver of net job creation and finally which type of enterprise has been more procyclical. In line with previous literature, we utilize various definitions to include a firm inside the small or large category, and consider both one dataset including entry and exit and one including only long-lasting firms. We find that small firms have shown higher growth rates, on average, and that they have been the driver of employment creation. Finally, we find that large firms are more procyclical than small enterprises, especially during economic contractions. |
| Keywords: | Firm-level data, Large datasets, Employment statistics |
| JEL: | E24 E32 J63 L25 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66979&r=all |
| By: | Daniela Di Cagno (Università LUISS "Guido Carli"); Andrea Fabrizi (Ministero dello Sviluppo Economico); Velentina Meliciani (Università di Teramo); Iris Wanzenböck (Austrian Institute of Technology) |
| Abstract: | This paper investigates the impact of “relational” spillovers arising from participation in European research networks on knowledge creation across European regions. We use links in EU Framework Programmes (from the Fourth to the Seventh) to weight foreign R&D in order to construct a relational distance matrix across 257 European regions over the period 1995-2010. We, then, assess the impact of relational spillovers on regional patent applications controlling also for local spatial spillovers. We find that relational spillovers matter for knowledge creation although spatial contiguity remains a crucial factor. We also find that spillovers are higher when regions with different levels of R&D participate in European networks. . |
| Keywords: | Relational spillovers, R&D collaboration, knowledge, EU Framework Programmes, spatial correlation, patents. |
| JEL: | O31 R12 C23 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lui:lleewp:15116&r=all |
| By: | Pankaj Kumar Gupta (Centre for Management Studies, JMI University); Sandeepa Kaur (Centre for Manangement Studies, JMI University, New Delhi) |
| Abstract: | Small and Medium Enterprises (SMEs) are playing more and more important role in world economic development. Indian SMEs have been on the forefront of the development path. However, Indian SMEs face a host of obstacles when they try to access credit market for their financing needs. Banks do not feel confident to extend loans to the business units whose track records are not apparently known to them, nor are they easily verifiable by the banks. On one side the government assigns a target of minimum threshold level of SME financing for banks and on the other side banks are reluctant to finance because of perception of higher probabilities of credit default. A specialized and effective enterprise credit rating mechanism is extremely important for these enterprises. In this paper we examine the major issues in the financing of SMEs in an Indian context and evaluate the flip side of the current rating mechanism. We also suggest a framework of financing these enterprises for respective sources of capital with comments on the role of the central bank in this regard. |
| Keywords: | SMEs, Enterprise Credit Rating, Credit Policy, Rating agencies, Credit Default |
| JEL: | E58 O23 H81 |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:3005373&r=all |
| By: | Abassi, Boutheina |
| Abstract: | This paper surveys what we know about international R&D spillovers, with a particular attention devoted to the business literature that link the R&D internationalization to economic performance. Despite the fact that there is a large literature on the internationalization of R&D at the country level, there are only few studies that examine the implications of international innovation and research activities at different levels of disaggregation. The few studies that exist emphasize the significance of international R&D and R&D offshoring in promoting economic performance. However, the existing literature comes finally with different conclusion as regards the relative importance of international spillovers and, the evidences presented so far with respect to R&D offshoring are still far from being conclusive. |
| Keywords: | international R&D spillovers, R&D offshoring, economic performance |
| JEL: | F43 O32 O4 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66986&r=all |
| By: | Šárka Zapletalová (Department of Business Economics and Management, School of Business Administration, Silesian University) |
| Abstract: | Internationalization of entrepreneurial activities is not only a matter of large enterprises. Currently, the majority of SMEs is undergoing the process of internationalization. The purpose of this paper is to compare the internationalization process of Czech large enterprises and SMEs. The companies included in the study are those that have already undertaken internationalization activities and are incorporated in the Czech Republic. The findings of the comparison show that the company size affects only the speed of internationalization of Czech companies. The choice of geographical coverage and entry mode is not affected by company size. |
| Keywords: | Internationalization process, large enterprises, small and medium-sized enterprise (SME), Czech companies, entry modes, geographical sub-regions. |
| JEL: | F23 M16 |
| Date: | 2015–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:opa:wpaper:0018&r=all |
| By: | Ruben Gaetani (Northwestern University); Enrico Berkes (Northwestern University) |
| Abstract: | Using a newly assembled dataset of narrowly georeferenced patents, we document that innovation activity is not as concentrated in densely populated areas as commonly believed: suburban regions are responsible for a substantial share of the innovation produced. Nevertheless, high-density areas disproportionately generate innovation of unconventional nature. We provide causal evidence for a mechanism that can generate this pattern: unconventional ideas are more likely to emerge when people interact in a dense and technologically diverse environment. An endogenous growth model with heterogeneous innovation and spatial sorting reveals that optimal place-based policy in the U.S. would foster urbanization to promote unconventional ideas, at the cost of sacrificing growth and inducing higher congestion. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:896&r=all |
| By: | Gabor Bekes (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences and CEPR) |
| Abstract: | This paper reviews a set of issues related to the concept and measurement of regional competitiveness. First, the concept of growth and competitiveness is argued to be different at regional level from the national level. In particular, the relationship between agglomeration and performance, the role of FDI in regions, and the key aspect of local institutions are analyzed. Second, a detailed review is carried out on potential data sources to gauge regional competitiveness using official, private sector as well as academic datasets. |
| Keywords: | regional competitiveness, data audit |
| JEL: | R11 R38 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1529&r=all |
| By: | Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Cédric Dalmasso (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | In competitive industries, intensive innovation is a recognized necessity (Wheelwright and Clark, 1992; Le Masson et al., 2010). One success factor of breakthrough R&D projects lies in the knowledge articulation between innovation definition phases, composed of fuzzy front-end (FFE) and innovative new product development (NPD) stages (Koen et al, 2002; Cooper et al, 2001), and industrial development processes. Then, central issue for innovation projects managers becomes internal R&D stakeholders’ management (Elias et al., 2002) and sustainable learning dynamics across the two parts of the organization (O’Connor, 2008). Our paper fits into this research gap for local breakthrough R&D in the dominant design. We discuss the role of technical expertise level of NDP stakeholders involved in early stages of innovative projects. The research mobilized two longitudinal studies (Yin, 1989) carried out with a global car manufacturer through collaborative management research (Radaelli et al., 2012) since 2005, one focusing on the FFE management, while the other was devoted to learning dynamics of engineering development departments. A cartography of the internal network of breakthrough R&D (Mitchell et al, 1997) underlined a stable organizational network across projects. Nevertheless, a quantitative analysis of accounting data on 8 projects highlights important dynamics of involvement or dis-engagement within the network. The analysis showed that the accounting reporting at the portfolio level used to hide to top-managers the heterogeneity and depth of resources dynamics at the project level. The impacts of local breakthrough R&D on the engineering development organization was similar to waves: some stakeholders, who played roles of experts, spokespersons or innovation design strategists, were able to involve quickly the individuals to maintain the project progress, sometime generating an over-commitment on innovation projects. At the opposite, a lack of trust of the design partners generated withdrawal of resources that needed a strong stakeholder management to be prevented. |
| Keywords: | Breakthrough R&D, Stakeholders management , Commitment |
| Date: | 2015–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01202541&r=all |
| By: | William R. Kerr; Martin Mandorff |
| Abstract: | We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, Koreans are 34 times more likely than other immigrants to operate dry cleaners, and Gujarati-speaking Indians are 108 times more likely to manage motels. We develop a model of social interactions where non-work relationships facilitate the acquisition of sector-specific skills. The resulting scale economies generate occupational stratification along ethnic lines, consistent with the reoccurring phenomenon of small, socially-isolated groups achieving considerable economic success via concentrated entrepreneurship. Empirical evidence from the United States supports our model's underlying mechanisms. |
| JEL: | D21 D22 D85 F22 J15 L14 L26 M13 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21597&r=all |
| By: | Mafini Dosso (European Commission – JRC - IPTS); Fernando Hervas (European Commission – JRC - IPTS); Pietro Moncada-Paternò-Castello (European Commission – JRC - IPTS) |
| Abstract: | This background note offers first a synthesis of the main research questions addressed under the three topics of the 5th European Conference on Corporate R&D and Innovation - Industrial Research and Innovation: Evidence for Policy (CONCORDi 2015). Section II positions the selected papers in the current academic literature. It focuses on the extent to which the papers address the main issues above-underlined, and on how they strengthen and challenge what we know about evidence for industrial R&D and innovation policies. Section III briefly presents the key priorities of the European innovation and industrial policy and some examples of current programs to support corporate R&D and innovation activities. Section IV raises a series of research and policy issues the Conference will address. |
| Keywords: | R&D, innovation, policy |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97469&r=all |
| By: | Saiz, Patricio (Departamento de Análisis Económico: Teoría Económica e Historia Económica. Universidad Autónoma de Madrid) |
| Abstract: | During the last quarter of the nineteenth century, American corporations began their multinational expansion to Europe through direct investments in the most-developed economies. Being increasingly aware of scientific and technological knowledge business value, they also began to develop early IPR international protection strategies in order to defend their intangible assets abroad. Before World War II, many of these multinationals had also reached lagging peripheral countries, resulting in a complex European network of subsidiaries and affiliates that has been scarcely studied. This paper delves into the Babcock & Wilcox entrepreneurial conglomerate – one of the most interesting case studies of early multinational expansion – to analyze how it arrived and developed in Spain, what its business and innovation strategies in that market were, and the role of patent management in that process. Our findings reveal that corporate interests in patent capture, control, and administration not only shifted research and innovation handling within firms but also led to quick learning on how to successfully use IPRs as business, legal, and organizational tools for international expansion. |
| Keywords: | Babcock & Wilcox, patents, foreign investments, Spain |
| JEL: | F23 N84 O32 O33 O34 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpapeh:201501&r=all |