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on Small Business Management |
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Issue of 2017‒06‒25
eighteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Vincent Van Roy (European Commission - JRC); Daniel Nepelski (European Commission - JRC) |
| Abstract: | High-tech entrepreneurship is one of the main means by which new knowledge and technologies are converted into economic and social benefits. This report analyses the levels and determinants of high-tech entrepreneurship across European countries. To this end, it uses country-level data on high- and low-tech total early-stage entrepreneurial activity provided by the Global Entrepreneurship Monitor (GEM). Panel data estimations for the period 2007-2014 reveal that EU Member States with better access to finance, less bureaucracy, more consistent policy regimes, favourable entrepreneurship education, and qualitative intellectual property rights that lower patent thicketing strategies exhibit a higher proportion of high-tech firm creation. In addition, greater technological density is associated with a higher rate of high-tech entrepreneurship creation, suggesting beneficial influences of path-dependency and agglomeration effects. |
| Keywords: | ecosystem; financial; growth; ICT; indicator; innovation; policy; research; industry |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc104865&r=sbm |
| By: | Jaroslaw Michal Nazarczuk (University of Warmia and Mazury in Olsztyn); Stanislaw Uminski (Institute for Development; Faculty of Economics, University of Gdansk); Tomasz Brodzicki (University of Gdansk, Faculty of Economics; Institute for Development, Sopot) |
| Abstract: | In the light of the hereto insufficient empirical evidence on the determinants of location of exporters and given the access to a unique GIS-based database for counties in Poland (LAU 1) on the distances to diverse points of interest (POIs) and infrastructure endowment, and data on regional heterogeneity, we investigate the deep determinants of exporters’ location in Poland. Our analysis is mostly driven by the concepts of NEG theory and the firms’ heterogeneity concept. With the use of econometric modelling, in the first step, we identify the determinants of regional location of exporting firms. In the second step, we try to identify the differences in the locational decisions of firms distinguished by ownership form, namely domestic and foreign-owned exporters. Our findings indicate the more predictable behaviour of foreign-owned exporters, for which the quality of transport endowment and inputs plays a more significant role in the decision in comparison to indigenous exporters, affected to a larger extent by deep-rooted factors and path-dependency. The locational preferences of FOEs are more influenced by the proximity to the airport and the motorways as well as subject to agglomeration externalities. The results point furthermore to the significance of accessibility to markets as evidenced by the role of infrastructure endowment and the role of the greater regional human capital endowment. |
| Keywords: | locational determinants, the spatial distribution of exporters, regional trade, foreign investors, Poland |
| JEL: | R12 F14 R15 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:iro:wpaper:1701&r=sbm |
| By: | Andrea Éltető (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences) |
| Abstract: | European small and medium-sized enterprises were severely hit by the international crisis of 2008 and export activity – as a form of internationalisation - was an important component of the recovery. This paper concentrates on the post-crisis period of the Iberian, Baltic and Visegrád countries. As for born global firms have spread and these countries are strongly involved in global production networks, the theory of international new ventures and the network approach can especially be appropriate for them. The significance of SMEs in employment, value added and export and their pace of recovery is different in the three regions. Apart from the structural rearrangements in exporting enterprises, the geographical direction of exports has also changed temporarily towards non-EU markets after the crisis. Based on existing enterprise surveys the second part of the article focuses on the export enhancing and hindering factors in the post-crisis period. Overall, product features and manager attitude proved to be the most important in export competitiveness. Lack of finance and contacts, strong foreign competition and high market entry costs are the leading export barriers for SMEs. |
| Keywords: | SMEs, export, export barriers |
| JEL: | F10 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:iwe:workpr:228&r=sbm |
| By: | Silvia Rocchetta Author-X-Name-First: Silvia; Andrea Mina Author-X-Name-First: Andrea |
| Abstract: | This paper explores the effect of different regional technological profiles on the resilience of regional economies to exogenous shocks. We conduct an empirical examination of the determinants of resilience through panel analyses of UK NUTS III level data for the 2004-2012 period. The results indicate that regions endowed with technologically coherent Ð and not simply diversified Ð knowledge bases are better prepared to face an unforeseen downturn and display resilience. Moreover, local economies tend to be more adaptable if they innovate in sectors with the strongest growth opportunities, even though firmsÕ net entry does not appear to contribute significantly towards resilience. |
| JEL: | O30 R11 O33 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1713&r=sbm |
| By: | UEDA Kenichi; ISHIDE Akira; GOTO Yasuo |
| Abstract: | We confirm, with a twist, that listing on a stock exchange can mitigate the financial constraints of firms, using Japanese firm-level data over the period 1995-2014, controlling for main bank relationships and majority owner influence. Compared to a similar unlisted firm, a listed firm has a lower marginal product of capital and more new borrowings during recessions. Theoretically, we argue that these are the most important variables to uncover differential financial frictions between listed and unlisted firms. However, on average, listed firms do not borrow more over time, but rather maintain lower leverage to mitigate the borrowing constraints. |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17090&r=sbm |
| By: | Caroline Freund; Martha Denisse Pierola |
| Abstract: | This paper uses firm-level data on manufacturing trade from 40 developing countries to explore how the five largest exporters in a country contribute to export growth and diversification. The origins of these firms are also studied. The data show that the top five exporters account for on average one third of exports, over half of export growth, and almost all of export diversification over a five-year period. Controlling for country and industry fixed effects, the share of exports in the top five firms increases significantly as exports grow. Most top five exporters were already large five years ago or are new firms; it is extremely rare for these export superstars to emerge from the bottom half of the firm-size distribution. They are producers, not traders, and are primarily foreign owned. |
| Keywords: | Exporting Firm, Export Diversification, Exports Growth, Export Performance, Manufacturing Exports, Comparative Advantage, Enterprises, Firms, Trade, Exports |
| JEL: | F14 L25 L11 D22 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:96478&r=sbm |
| By: | Marco Mariani (IRPET – Regional Institute for Economic Planning of Tuscany); Alessandra Mattei (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze); Lorenzo Storchi; Daniele Vignoli (Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti", Università di Firenze) |
| Abstract: | Public support to start-ups often has the dual ambition of fostering self-employment of disadvantaged individuals while nurturing entrepreneurship. In this paper we evaluate a female and youth start-up program recently implemented in Tuscany (Italy), which provides public guarantees and subsidized interest rates to new firms. Under the assumption of strong ignorability of the assignment mechanism, we use a propensity score matching approach to draw inference on causal effects of the program on firms’ survival and job creation. Results suggest that public support in this area may have rather ambiguous effects. It helps females and young people escape unemployment or inactivity, and may lead to further job creation. Unfortunately, all this occurs at the price of committing public resources towards entrepreneurial projects that hardly gain efficiency over time. |
| Keywords: | entrepreneurship, self-employment, program evaluation |
| JEL: | J68 L26 R50 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:fir:econom:wp2017_04&r=sbm |
| By: | Amanatidou Effie (Manchester Institute of Innovation Research / University of Manchester); Damvakeraki Tonia (HAREVA Business Ideas E.E); Karvounaraki Athina (European Commission - JRC) |
| Abstract: | The 2016 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, European Semester analysis, Greece |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc105901&r=sbm |
| By: | Caterina Giannetti |
| Abstract: | This paper investigates the level of debt specialization across European firms relying on a cross-country comparable sample of manufacturing firms. We find a non-linear relationship between firm debt specialization (i.e. composition of the various types of debt) and firm size and age. In line with previous evidence for US firms, we observe that small and young firms have a more concentrated debt structure (i.e. they rely on few types of debt). Relying on quasi-experimental setting, we also find that firms having a diversified debt structure are less likely to experience a severe reduction in turnover.Creation-Date: 2016-01-01 |
| Keywords: | Debt concentration, European firm financing, Generalized propensity score. |
| JEL: | C24 G31 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2016/211&r=sbm |
| By: | Javier López González (OECD) |
| Abstract: | Participation in global value chains (GVCs) can be a pathway for economic development. It is associated with growing productivity, exporting more sophisticated products and a less concentrated export basket (Kowalski et al., 2015). However, it is often argued that these benefits accrue mainly to larger firms and/or multinationals, leaving small and medium sized enterprises (SMEs), which tend to employ the largest share of workers, struggling to benefit from the opportunities offered by the evolving GVC landscape. This paper identifies how SMEs in ASEAN economies participate in GVCs by combining firm level data with the Trade in Value Added (TiVA) database. SMEs in the region might face more constraints than large firms in sourcing competitive inputs, limiting their ability to benefit from GVCs, as indicated by the lower share of foreign value added in their exports. That said, SMEs also tend to export intermediate goods to GVCs either directly, or, importantly, indirectly, through sales to larger domestic or multinational firms which then export. Policies seeking to integrate SMEs into GVCs could aim to address importing constraints through continued unilateral or regional liberalisation or sustained support for trade facilitation and connectivity. At the same time programmes aimed at promoting domestic and international production linkages should allow SMEs to better identify new opportunities and exploit their comparative advantage in the production of intermediate goods and services and integrate, directly or indirectly, into regional and global value chains. |
| Keywords: | globalisation, GVCs, importing, indirect exporting, SMEs, Southeast Asia, trade |
| JEL: | D22 D24 F13 F14 F15 F63 F68 L11 L23 L25 |
| Date: | 2017–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:203-en&r=sbm |
| By: | Martin Srholec (Centre of Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University (Lund, Sweden) and CERGE-EI, Economics Institute, Czech Academy of Sciences (Prague, Czech Republic)); Cristiana Benedetti Fasil (European Commission - JRC) |
| Abstract: | The 2016 series of the RIO Country Report analyses and assesses the development and performance of the national research and innovation system of the EU-28 Member States and related policies with the aim of monitoring and evaluating the EU policy implementation as well as facilitating policy learning in the Member States. |
| Keywords: | research and innovation, Czech Republic, innovation system |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc105858&r=sbm |
| By: | Seven Ağır (Department of Economics, Middle East Technical University, Ankara, Turkey); Cihan Artunç (Department of Economics, University of Arizona, Tucson, Arizona, USA) |
| Abstract: | In 1942, the Republic of Turkey promulgated a controversial tax on personal wealth to finance mobilization of the army and curb inflation. The extraordinary tax was arbitrarily assessed and the burden fell disproportionately on non-Muslim minorities. The precise transformative effect of the tax on Turkey’s commercial life is not well understood. This article assembles a new dataset of firms operating in Istanbul to show the tax led to a dramatic rise on the liquidation of enterprises with non-Muslim ownership but no effect on Muslims. At the same time, the tax caused a sharp decline in the formation of new non-Muslim firms and a commensurate increase in the number of Muslim firms. The results show that the Wealth Tax forced the dissolution of otherwise productive, older firms and contributed to the further nationalization of the economy. |
| Keywords: | Turkish economic history, wealth tax, firm survival |
| JEL: | N84 N85 O1 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:met:wpaper:1707&r=sbm |
| By: | Javier Gomez Prieto (European Commission – JRC); Patrice dos Santos (European Commission – JRC) |
| Abstract: | The Smart Specialisation approach is being an inspiratory driver of regional innovation not only within the European Union but beyond. This paper elaborates on the Policy Learning Dialogue: Smart Specialisation in EU and Chile which took place at the Joint Research Centre, Seville (21st November 2016). The article showcases policy reflections and outcomes derived from a fruitful discussion between practitioners of regional innovation strategies in EU and Chile, smart specialisation platform staff and experts. This policy dialogue was part of the activities carried out by the smart specialisation platform aiming at providing evidence-based support to policy makers and stakeholders of smart specialisation through common reflections focused on cooperation dynamics and joint learning. |
| Keywords: | Smart Specialisation; Policy learning dialogue; cooperation; European Union; Chile |
| JEL: | R5 O32 O1 O54 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc106872&r=sbm |
| By: | Susan Alexander (Minerva S.Ã r.l.); Gudrun Rumpf (Intrasoft International); Juan Carlos Del Rio (European Commission - JRC) |
| Abstract: | The 2016 series of the RIO Country Report analyses and assesses the development and performance of the national research and innovation system of the EU-28 Member States and related policies with the aim of monitoring and evaluating the EU policy implementation as well as facilitating policy learning in the Member States. |
| Keywords: | research and innovation, Luxembourg, innovation system |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc105894&r=sbm |
| By: | Steven Sorrell (University of Sussex - Science and Technology Policy Research Unit (SPRU)) |
| Abstract: | Social innovation requires a transformation in innovation practices. These transformations should be democratic. At least that is the hypothesis in this paper. Makerspaces are studied as potential sites for democratising innovation activity. Makerspaces are community-based workshops where people access the tools, skills and collaborators to design and make almost anything they wish. Makerspaces are also networked spaces for reflection and debate over design and making in society. But they are many other things too, including a place for personal recreation, entrepreneurship, and education - features of increasing interest to institutions. Makerspaces are pulled and pushed in different directions. An open innovation agenda seeks to insert makerspace creativity into global manufacturing circuits under business as usual. Others see in makerspaces an inchoate infrastructure for a commons-based, sustainable and redistributed manufacturing economy. Activists anticipate new relations in material culture and political economy. Makerspaces are thus socially innovative and not socially innovative at the same time: a site of struggle over issues of profound social significance, and hence an example of innovation democracy in action. |
| Keywords: | Multilevel perspective; Critical realism; Emergence; Process theory |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-11&r=sbm |
| By: | Adrian Smith (University of Sussex - Science and Technology Policy Research Unit (SPRU)) |
| Abstract: | Social innovation requires a transformation in innovation practices. These transformations should be democratic. At least that is the hypothesis in this paper. Makerspaces are studied as potential sites for democratising innovation activity. Makerspaces are community-based workshops where people access the tools, skills and collaborators to design and make almost anything they wish. Makerspaces are also networked spaces for reflection and debate over design and making in society. But they are many other things too, including a place for personal recreation, entrepreneurship, and education - features of increasing interest to institutions. Makerspaces are pulled and pushed in different directions. An open innovation agenda seeks to insert makerspace creativity into global manufacturing circuits under business as usual. Others see in makerspaces an inchoate infrastructure for a commons-based, sustainable and redistributed manufacturing economy. Activists anticipate new relations in material culture and political economy. Makerspaces are thus socially innovative and not socially innovative at the same time: a site of struggle over issues of profound social significance, and hence an example of innovation democracy in action. |
| Keywords: | Social innovation; democracy; makerspaces; digital fabrication; commons; critical theory; technology |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-10&r=sbm |
| By: | Kamata, Isao; Sato, Hitoshi; Tanaka, Kiyoyasu |
| Abstract: | This study examines the role of management practices in the internationalisation of domestic firms through directly exporting and/or supplying to local affiliates of multinationals. An original survey of manufacturing firms in Viet Nam was conducted, investigating their management practices such as human resource management and internationalisation status. The survey results shed light on similarities and dissimilarities among firms in several dimensions of management practices. We found that internationalised firms tended to be more enthusiastic about the formal training of production workers, the modernisation of production and operation, and product and process innovation. Differences in skills and experience requirements for newly employed managers were less recognisable, but internationalised firms tended to have managers who studied overseas. Furthermore, the use of public support to employee training, teamwork in production, and unionisation of employees did not show a significant difference between internationalised and non-internationalised firms. |
| Keywords: | Industrial management,Business enterprises,Globalization,Management Practices,Firm Heterogeneity,Global Value Chains |
| JEL: | F23 F61 M11 M50 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper658&r=sbm |
| By: | Yilmaz Kiliçaslan (Anadolu University); Ünal Töngür |
| Abstract: | This study aims to examine the impact of the use of Information and Communication Technologies (ICT) on employment generation in the Turkish manufacturing industry. This study is said to be the first attempt in exploring the impact of ICT on employment generation in Turkish manufacturing industry at the firm level. The analysis is based on firm level data obtained from Turkish Statistical Institute (TurkStat) and covers the period from 2003 to 2013. The data used in the analysis includes all firms employing 20 or more employees in Turkish manufacturing industry. Our findings based on system GMM estimations show that ICT has employment-enhancing effects in Turkish manufacturing. Moreover, our results provide the evidence that tangible ICT capital has stronger employment generation impact than that of intangible ICT capital in medium-tech and low-tech industries. |
| Date: | 2017–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1120&r=sbm |