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on Entrepreneurship |
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Issue of 2006‒09‒11
ten papers chosen by Marcus Dejardin Facultes Universitaires Notre-Dame de la Paix |
| By: | Stam, E.; Audretsch, D.B.; Meijaard, J. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Why should individuals that have exited their firm consider re-entering into entrepreneurship, i.e. become renascent entrepreneurs? According to the logic of economic models of firm dynamics there is no reason to re-enter into entrepreneurship following termination of a previous firm. In contrast, research on nascent entrepreneurship has shown the positive effect of entrepreneurial experience on planning a new firm start. Based on the empirical evidence from a database consisting of ex-entrepreneurs, this study shows that renascent entrepreneurship is a pervasive phenomenon in current society. Especially entrepreneurial human and social capital induce renascent entrepreneurship. In addition, the nature of the firm exit also affects the probability of renascent entrepreneurship. |
| Keywords: | Entrepreneurial Preferences;Entrepreneurial Skills;Firm Exit;Renascent Entrepreneurship;Economics of Entrepreneurship; |
| Date: | 2006–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008468&r=ent |
| By: | Schutjens, V.; Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | We know that most businesses fail. But what is not known is to what extent failed ex-entrepreneurs set up in business again. The objective of this article is to explore potential and realized serial entrepreneurship. Based on three disciplines – psychology, labour economics, and the sociology of careers – we formulated propositions to explain (potential) serial entrepreneurship. We tested these propositions empirically with a longitudinal database of 79 businesses that had closed within 5 years after start-up. A large majority of the ex-entrepreneurs maintained entrepreneurial intentions subsequent to business closure, while almost one in four business closures were followed by a new business (serial entrepreneurship). Our results show that the determinants of restart intention (potential serial entrepreneurship) and actual restart realization (realized serial entrepreneurship) are different. Ex-entrepreneurs who are young, who worked full-time in their prior business, and who recall their business management experience positively are likely to harbour restart intentions. Only ‘being located in an urban region’ transpired to have a significant effect on the start of a new business. Although entrepreneurial intentions are a necessary condition for the start of a new business, this study shows that the explanation of entrepreneurial intentions is distinct from the explanation of new business formation subsequent to business closure. |
| Keywords: | Serial Entrepreneurship;Business Closure;Entrepreneurial Intentions;New Business Formation;The Netherlands; |
| Date: | 2006–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008466&r=ent |
| By: | Oort, F.G. van; Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | In this study indicators of agglomeration economies and their effect on entrepreneurship in the ICT industry are analysed in diverse urban contexts. Agglomeration economies have a stronger impact on new firm formation than on the growth of incumbent firms. Concentration and diversity both have a positive effect on new firm formation as well as on the growth of incumbent firms, while competition only has a positive effect on new firm formation. It is especially the effects of industrial diversity that are revealed to be sensitive to urban contexts: positive effects on new firm formation are attached to the connected cities and to the highly urbanized Randstad, and positive effects on firm growth to the intermediate zone, the connected cities and urban municipalities. |
| Keywords: | Entrepreneurship;Location;Agglomeration Economies;Spatial Externalities;Urban Regimes;ICT Iindustry; |
| Date: | 2006–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008467&r=ent |
| By: | Krug, B. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | The paper claims that the analysis of the private business sector needs to concentrate on entrepreneurship. Based on fieldwork the paper proceeds by describing how Chinese entrepreneurs perceive the (economic) problems whose solutions pre-determine the economic performance of new firms. Entrepreneurship takes the form of institution building by which the high transaction costs can be mitigated and the value of assets and contracts be protected. The empirical research identified corporate governance, incentive contracts, local autonomy and networking as the crucial “hybrids†for mobilising investment and limiting moral hazard. |
| Keywords: | Entrepreneurship;Chinese Business Sector;Local Autonomy;Networking; |
| Date: | 2006–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008771&r=ent |
| By: | Zhu, Z.; Hendrikse, G.W.J.; Krug, B. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Bearing the legacy from central-planned system, the tax system in local China still lacks transparency and, in many cases, the liabilities of firms, especially those with extensive influences, are subject to negotiation despite the new tax-reform 1994. Applying Hirschman’s Exit-Voice theory, we construct a game model of interplay between firm and local government, in terms of exit and voice for preferential tax treatments, thereby revealing dynamics of these two options under rational entrepreneurship of economizing transaction cost. Suggested by the model, exit not only induces firm to opt for voice, it also underpins firm’s voice that forces local government to compromise. Particularly, when holding private information of exit cost, firm is able to mimic behaviors of those with high mobility so as to boost the effectiveness of voice. The empirical cases fully illustrate such rational entrepreneurship of exit plus voice to profit from local preferential policy. |
| Keywords: | Exit;Voice;Preferential Tax Treatments;Tax Competition;China; |
| Date: | 2006–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008397&r=ent |
| By: | Lundin, Nannan (European Institute of Japanese Studies); Sjöholm, Fredrik (European Institute of Japanese Studies); Qian , Jinchang (National Bureau of Statistics of China) |
| Abstract: | Science & Technology (S&T) is high on the Chinese policy agenda but there are large uncertainties on the actual S&T development. For instance, previous studies tend to focus only on large and medium-sized enterprises (LMEs). The situation in Chinese small firms is far less explored. This paper aims to examine the role of S&T-based small firms. More precisely, we examine how much S&T that has been accounted for by small firms and how their S&T intensity differs across industries and ownership groups. We also analyze how various firm characteristics differ over size categories and S&T status. This study is based on newly processed micro level data provided by the National Bureau of Statistics with information on a large number of S&T indicators for small-, medium-, and large-sized manufacturing firms in China in 2000 and 2004. Our results suggest that small firms in Chinese S&T resemble their role in many other countries. They account for a comparably small share of total S&T and most small firms are not engaged in any S&T. However, those small firms that do engage in S&T tend to be more S&T intensive and have a higher output in terms of patents than larger Chinese S&T firms. |
| Keywords: | Technology; SMEs; China; S&T; R&D |
| JEL: | O30 O31 O53 |
| Date: | 2006–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:eijswp:0227&r=ent |
| By: | Stam, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | How do changes in the spatial organization of entrepreneurial firms come about? This paper provides a conceptualisation of the process of locational change. A process model of locational change is constructed on the basis of an empirical study of 109 locational events during the life course of 25 young firms in knowledge intensive sectors (knowledge services and biomedicals). This process model of locational change maps both internal and external variation and selection processes. This model contributes to the development of a causal process theory of the spatial development of (new) firms. |
| Keywords: | Location;Entrepreneurial Firms;Evolutionary Theory;Decision-Making;Process Models; |
| Date: | 2006–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30008464&r=ent |
| By: | Julia Hirsch (University of Frankfurt); Uwe Walz (University of Frankfurt) |
| Abstract: | The main objective of the present paper is to disentangle observed differences in the design of contracts across VC types into firm selection effects and corporate governance differences between VC types (different contracts). Based on a theoretical approach developed in the first part of the paper, we investigate in the second part these issues empirically by using a unique, hand-collected German data set consisting of all contractual details of VC investments into 290 entrepreneurial firms in the period 1990-2004. By employing various matching procedures, we show that VC types differ in both firm choice and corporate governance approach. |
| Keywords: | Venture Capital, Corporate Governance, Matching, Contract Design |
| JEL: | G24 G32 G34 |
| Date: | 2006–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:cfs:cfswop:wp200612&r=ent |
| By: | Markus Poschke |
| Abstract: | The aim of this paper is to contribute to explaining differences in aggregate productivity between similar, industrialized countries such as the US and European Union (EU) member states. By introducing shifts in administrative entry cost and a firm technology adoption decision in a model of heterogeneous firms close to Hopenhayn (1992), it matches the following facts: higher entry cost is associated with (1) both lower labor and total factor productivity, (2) more capital-intensive production, and (3) lower firm turnover. Compared to previous studies of reallocation intensity and aggregate productivity, endogenizing capital intensity through technology choice leads to stronger results; higher equilibrium capital intensity acts as an entry barrier to new firms, and protects low-productivity incumbents. Notably, the very small differences in the administrative cost of entry as documented by Djankov, La Porta, Lopez-de-Silanes and Shleifer (2002) suffice to explain 10 to 20% of differences in TFP and the capital-output ratio between Europe and the US. To obtain this, both heterogeneity of firms and allowing for technology choice are crucial. |
| Keywords: | growth theory, aggregate productivity, technology adoption, firm dynamics, entry and exit, reallocation, selection, regulation of entry |
| JEL: | E22 G38 L11 L16 O33 O40 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2006/21&r=ent |
| By: | Marcus Dejardin (FUNDP - Facultés Universitaires Notre-Dame de la Paix - [Faculté des Sciences économiques, sociales et de gestion]) |
| Abstract: | L'article est à paraître dans la revue Reflets et perspectives de la vie économique. Il introduit le numéro consacré au thème de la compétitivité structurelle (RPVE, Tome XLV, n°1, 2006). La notion de compétitivité structurelle y est d'abord distinguée de manière schématique de la notion de compétitivité en prix. Vient ensuite un aperçu des contributions. L'article se conclut en se faisant très brièvement l'écho de l'actualité sociopolitique belge en matière de compétitivité. |
| Keywords: | compétitivité, compétitivité structurelle, compétitivité en prix |
| Date: | 2006–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00084525_v2&r=ent |