nep-ent New Economics Papers
on Entrepreneurship
Issue of 2005‒04‒30
three papers chosen by
Marcus Dejardin
Facultés Universitaires Notre-Dame de la Paix

  1. Knowledge-based Entrepreneurship: The Organizational Side of Technology Commercialization By U. Witt; C. Zellner
  2. Impact of Financing Sources and Regulatory Business Costs on National Entrepreneurial Propensity By Yuen Ping Ho; Poh Kam Wong
  3. Credit Rationing and Internal Ratings in the face of Innovation and Uncertainty By Guido Fioretti

  1. By: U. Witt; C. Zellner
    Abstract: New knowledge with commercial potential is continually created in academic institutions. How is it turned into economically valuable businesses? This paper argues that the transfer is an entrepreneurial process. To understand this, the actions and the constraints characteristic for the entrepreneurial reshaping of the division of labor must be recognized. In the case of knowledge-based entrepreneurship, specific constraints result from the peculiarities of scientific knowledge – epitomized by contrasting tacit and encoded knowledge. Scientifically trained labor is required for transferring both forms of knowledge. However, the mode of transfer differs crucially and shapes the organizational form of commercializing new scientific knowledge.
    JEL: L23 M13 O31 O32
  2. By: Yuen Ping Ho (Entrepreneurship Centre, National University of Singapore); Poh Kam Wong (Entrepreneurship Centre, National University of Singapore)
    Abstract: In this paper, we focus on two barriers to entry that may hinder the formation of new firms: capital requirements and regulatory business cost. The contribution of this paper is twofold: we compare different types of financing sources to address the issue of capital requirement and we utilise a new measure of business cost by constructing a composite index using data from the World Bank’s Doing Business Database. Using cross-sectional data on 36 countries that participated in the 2002 Global Entrepreneurship Monitor, we attempt to establish if financing sources and business costs have different impact on three different types of entrepreneurial activity: opportunity-driven, necessity driven and high-growth potential entrepreneurship. Three types of financing sources are analysed: traditional debt financing, Venture Capital financing, and informal investments. The findings show that only informal investments significantly influence the propensity to be entrepreneurs.Regulatory business costs were found to deter opportunity driven entrepreneurship, but had no impact on other types of entrepreneurial activity.
    Keywords: entrepreneurial activity, financing, venture capital, informal investment, business cost
    JEL: L
    Date: 2005–04–28
  3. By: Guido Fioretti (University of Bologna)
    Abstract: Some empirical investigations are pointing to the fact that high-tech firms are subject to credit rationing to a higher extent than the average. This excess of credit rationing may not be due to information asymmetries, but rather to the inability of credit institutions to screen projects in novel fields. This article provides a model of this phenomenon and explores its implications in the light of recent changes in the screening procedures of major banks. In particular, the changes to be made in order to comply with the ``Basel II'' accord emphasize the impact of screening procedures on credit rationing.
    Keywords: Credit rationing, High-Tech Firms, Internal Rating Systems, Basel II
    JEL: G
    Date: 2005–04–28

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