nep-ent New Economics Papers
on Entrepreneurship
Issue of 2007‒04‒21
fifteen papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Entrepreneurship Education at University Level ? Contextual Challenges By Per Blenker; Poul Dreisler; John Kjeldsen
  2. From Container Knowledge to Entrepreneurial Learning: The Role of Universities By Gerald Braun
  3. Students’ Attitudes and Intentions toward Entrepreneurship at Tallinn University of Technology By Urve Venesaar; Ene Kolbre; Toomas Piliste
  4. Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions By Dean Karlan; Martin Valdivia
  5. Entrepreneurship Education and Finnish Society By Paula Kyrö
  6. Opportunities for Schools to Develop Entrepreneurship Education: the Example of Estonia By Made Torokoff
  7. Institutions, Networks and Entrepreneurship Development in Russia: An Exploration By Ruta Aidis; Saul Estrin
  8. Competition Between Informed Venture Capitalists for the Financing of Entrepreneurs By CASAMATTA, Catherine; HARITCHABALET, Carole
  9. Experience, Screening and Syndication in Venture Capital Investments By CASAMATTA, Catherine; HARITCHABALET, Carole
  10. The Influence of Previous Relationships, Investment Experience and Structural Embeddedness on Partner Selection in Venture Capital Syndicates By Hopp, Christian
  11. Becoming an Entrepreneur By Hugo Ñopo; Patricio Valenzuela
  12. The Geography and the Effect of Creative People in Germany By Michael Fritsch
  13. Globalization and the Rise of the Entrepreneurial Economy By David B. Audretsch; Mark Sanders
  14. Defending Gibrat’s Law as a Long-Run Regularity By Francesca Lotti; Enrico Santarelli; Marco Vivarelli
  15. Baltic Entrepreneurship Partners (BEPART)From Interregional and International Cooperation to Regional Impact of Entrepreneurship Promotion By Christoph Diensberg

  1. By: Per Blenker (School of Economics and Management, University of Aarhus); Poul Dreisler (Department of Management, School of Business, University of Aarhus); John Kjeldsen (Department of Marketing and Statistics, School of Business, University of Aarhus)
    Abstract: Entrepreneurship has been declared the most significant driver in the future development of societal welfare. Businesses, organisations and the individual person should be motivated for – and develop competence in – perceiving new opportunities through reflective action and hence participate in the creation of change and growth in society. This capacity and inclination for change and innovation is thus conceived as an important human trait, which has come to be known as “enterprising behaviour” in international research. In which ways do these demands challenge the universities and its role in regional and societal context? Interaction between universities, business sector and political system through the so-called “triple-helix-model” is said to be the basis for growth and innovation. Does it mean that knowledge creation and exchange should be based on the concept of the entrepreneurial university? Related to that, what are then the internal challenges for the entire education culture and for the role of the teacher / researcher? It is some of the questions the paper tries to answer or at least give some deeper insight to
    Keywords: Entrepreneurial university, triple-helix, enterprising behaviour, entrepreneurial culture, role of teacher / researcher
    JEL: A2 D8 I21
    Date: 2006
  2. By: Gerald Braun (Hanseatic Institute of Entrepreneurship and Regional Development (HIE-RO) at Rostock University, Faculty of Economics and Social Sciences)
    Abstract: The new quality of international competition changes the function of universities dramatically. They have to ? in addition to their traditional role as sources of ideas, knowledge and intellectual capital ? become agents of innovations, i.e. entrepreneurial universities, enhance regional development and international competitiveness. The transformation of university produced knowledge into market-oriented innovations depends on the quality of academic entrepreneurship. The article analyses two competing approaches to promote academic entrepreneurship: The 'knowledge container' and the 'entrepreneurial learning' approach ? and their foundations in neoclassical and evolutionary growth theory. The obstacles to introduce entrepreneurial learning as an educational innovation are being analysed (non-innovative university culture/history/attitudes, bureaucratic over-regulation, defence of vested rights). The article finally discusses some conditions for successful academic entrepreneurship (corporate university entrepreneurs, change agents, inter-university competition, entrepreneurial universities as learning organisations)
    Keywords: Entrepreneurial university, academic entrepreneurship, container knowledge accumulation, entrepreneurial learning, educational innovations
    JEL: E1 E3 F2
    Date: 2006
  3. By: Urve Venesaar (School of Economics and Business Administration at Tallinn University of Technology); Ene Kolbre (School of Economics and Business Administration at Tallinn University of Technology); Toomas Piliste (School of Economics and Business Administration at Tallinn University of Technology)
    Abstract: The objective of the current paper is to identify the students’ attitudes and intentions toward entrepreneurship, their personal characteristics and future plans in connection with entrepreneurship. The results of the empirical study are brought to evaluate the preparation of bachelor programme graduates and master students from Tallinn University of Technology (different specialities) for starting with entrepreneurship. The Likert scale is used for measurement of students’ attitudes based on their own opinions about motivations to start in business, the statements about their entrepreneurial characteristics and behavioural habits connected with business relations and organisations. In this context, the opinions of respondents about the obstacles met in starting a business and possible support needs are also a subject of this analysis, including the role of university to foster entrepreneurial initiative among students. The research results showed that despite a considerable share of respondents thinking about entrepreneurship, most of them do not want to start business after graduation, but postpone this to a more distant future. Based on the students’ previous thoughts about and connections with entrepreneurship, or their plans for the future, we can identify differences in the motives to start a business (e.g. ambition for freedom, self-realisation, and pushing factors), as well as in personal characteristics, skills to participate in business relations and behaviour in organisation. The personal characteristics and behaviour typical of entrepreneur are correlated positively with the intention to start a new venture in the near future. However, we can also find some exceptions and interesting connections based on the student’s status, specialty (economic or technical specialities) and degree of study. The paper seeks to provide clarification so as to understand these differences, as well as suggestions for increasing the role of universities in developing students’ entrepreneurial behaviour and improving entrepreneurship policies in order to stimulate entrepreneurial initiative among students
    Keywords: attitudes, intentions, entrepreneurship education, personality traits, support needs
    JEL: A2 D8 I21
    Date: 2006
  4. By: Dean Karlan; Martin Valdivia
    Abstract: Can one teach basic entrepreneurship skills, or are they fixed personal characteristics? Most academic and development policy discussions about microentrepreneurs focus on their access to credit, and assume their human capital to be fixed. The self-employed poor rarely have any formal training in business skills. However, a growing number of microfinance organizations are attempting to build the human capital of micro-entrepreneurs in order to improve the livelihood of their clients and help further their mission of poverty alleviation. Using a randomized control trial, we measure the marginal impact of adding business training to a Peruvian group lending program for female microentrepreneurs. Treatment groups received thirty to sixty minute entrepreneurship training sessions during their normal weekly or monthly banking meeting over a period of one to two years. Control groups remained as they were before, meeting at the same frequency but solely for making loan and savings payments. We find that the treatment led to improved business knowledge, practices and revenues. The program also improved repayment and client retention rates for the microfinance institution. Larger effects found for those that expressed less interest in training in a baseline survey. This has important implications for implementing similar market-based interventions with a goal of recovering costs.
    Keywords: entrepreneurship, microentrepreneur, business skills, business training, credit
    JEL: M13 M0 M40
  5. By: Paula Kyrö (School of Economics and Business Administration at University of Tampere)
    Abstract: The discussion between entrepreneurship and education strengthened towards the end of the 20th century due to the increasing impact of small businesses on societies. It is therefore reasonable to as¬sume that present-day students may soon experience the small business context in some form as their future work environment. The supply of entrepreneurship courses is, in fact, one of the fastest growing themes in university teaching in both sides of the Atlantic. The Finnish government has also taken this fact as one of the key issues in its policy programme and committed to entrepreneurship education throughout its school system. The dilemma will be faced however when it comes to the current contribution of the education to the educational theories. The discussion of how to learn entrepreneurship and develop pedagogy for it has only taken very preliminary steps. So far the focus has changed from the trait theories of biological heritage, i.e. assuming that we are born to be entrepreneurs, towards the belief that we learn to be en¬trepreneurs and we learn how to behave like entrepreneurs. This education-oriented focus has, how¬ever, generated studies in entrepreneurship research rather than attracted education researchers. This article suggests that the lack of this contribution appears as an apparent shortage of pedagogical dis¬cussion. In order to encourage this debate as an interplay between these two sciences, this paper deline¬ates some elements of entrepreneurial pedagogy, compares them to the available learning paradigms and thus gives some ideas for further enhancing entrepreneurial learning in different levels of school system
    Keywords: Entrepreneurship education, entrepreneurial learning, Educational system in Finland, Finnish Society, entrepreneurial qualities, learning paradigms, entrepreneurial learning paradigm
    JEL: A2 R5
    Date: 2006
  6. By: Made Torokoff (University of Tartu, Pärnu College)
    Abstract: One third of Estonian schools have been teaching business in one form or another since 1992, mostly using a Junior Achievement programme. Estonian universities have not had programmes for teachers of business or economics in comprehensive schools until now. How can we implement business teaching in the general education system on a larger scale and how can we promote enterprising behaviour? Research into business teaching is currently at an initial stage in Estonia. In order to establish the steps which must be taken for implementing programmes for business teaching, it is essential to identify our current situation. What are the general attitudes towards business in general? What do business people expect from schools? The author of the paper conducted surveys in both schools and companies in 2003-2005. This paper focuses on the issues of competitiveness and enterprises covered in the surveys. Using the data from the surveys, the paper aims to analyse the attitudes and views of teachers, students and parents towards studies in the general education system, and towards competitiveness in the labour market and enterprises. The teachers’ view is that their students are competitive on the labour market as long as their level of academic knowledge is good. Most students do not see business as a career option. However, the parents’ responses allow us to draw the conclusion that their interest in and need for knowledge in economics has risen sharply. The paper points out that even while there is no systematic training of business teachers, enterprising behaviour and mindset, and students’ leadership skills can be shaped in regular classes by all teachers at a pre-school level (kindergartens), along with primary, basic and secondary education
    Keywords: Estonian school, entrepreneurship education, enterprising behaviour, leader
    JEL: A2 I21
    Date: 2006
  7. By: Ruta Aidis; Saul Estrin
    Abstract: In this paper we explore the ways in which institutions and networks influence entrepreneurial development in Russia. By utilizing new Global Entrepreneurship Monitor (GEM) data collected in 2001, we investigate the effects of the weak institutional environment in Russia in terms of three dimensions: on the rate of productive entrepreneurial activity measured in terms of start-ups and existing business owners; on the characteristics of business owners; and on business financing. In addition, the analysis explores the effectiveness of Russia’s informal networks for circumventing the weak institutional environment for business development. Our results indicate that Russia’s business owners share many of the same characteristics as business owners in advanced western countries, though education is not associated with entrepreneurial activity. However, the main differences are in the sources of financing and the fact that relatively few individuals engage in productive entrepreneurial activity. Our results support the notion of the limited effectiveness of Russia’s networks for supporting entrepreneurial activity in its weak institutional environment.
    Keywords: Entrepreneurship, Institutions, Networks, Russia
    JEL: L14 M13 P36
    Date: 2006–06–01
  8. By: CASAMATTA, Catherine; HARITCHABALET, Carole
    JEL: G2 D8 G3
    Date: 2006–11
  9. By: CASAMATTA, Catherine; HARITCHABALET, Carole
    JEL: G2 G3 D8
    Date: 2007–02
  10. By: Hopp, Christian
    Abstract: This paper analyses the factors impacting partnering decisions in Venture Capital syndicates using a unique dataset of 2,373 VC transactions in Germany. By including time varying information about experience and cooperation patterns I explicitly take into account not only the changing social context for partner selection but also the dynamic nature of firm-level resources and capabilities. The data suggests strong evidence that partnering decisions are driven by the acquisition of resources to develop competitive capabilities. Moreover, I find strong evidence that information sharing and trust can create a foundation for future cooperation. The data indicates that the chances of being invited to participate in a newly formed syndicate for a given transaction rise significantly when previous direct ties are present between the current lead investor and the potential partner. Based on the results found I conclude that the idiosyncrasy of embedded ties could aggravate the level of VC providers heterogeneity and given the fact that they develop over time and are a relative immobile resource can make the strategic position of a VC provider inimitable and could therefore represent a sustainable source of competitive advantage that can explain the large returns to syndication found previous research.
    Keywords: Venture Capital; Syndication; Social Network Theory
    JEL: G24
    Date: 2007–04–16
  11. By: Hugo Ñopo (Inter-American Development Bank and IZA); Patricio Valenzuela (Inter-American Development Bank)
    Abstract: Using the 1996-2001 Chilean CASEN Panel Survey, this paper analyzes the impact on income of the switch from salaried employment to entrepreneurship (self-employment and leadership of micro-enterprises). By means of a difference-in-differences non-parametric matching estimator the paper alleviates problems of selection bias (on observable and unobservable traits) and creates the appropriate counterfactuals of interest. The results indicate that the income gains associated with the switch from salaried employment to entrepreneurship are positive, statistically significant and financially substantial. Even more, the results are qualitatively the same using mean and medians, suggesting that the impacts are not influenced by the presence of few "superstar winners." Additionally, the income changes associated with the reverse switches (from self-employment to salaried jobs) are negative. The results also suggest interesting gender differences, as females show higher gains than males on the switch from salaried jobs to entrepreneurship and lower losses on the reverse switch.
    Keywords: difference-in-differences, non-parametric matching, micro-enterprises
    JEL: J16 J31 J41
    Date: 2007–03
  12. By: Michael Fritsch (University of Jena, School of Busniess and Economics, Max Planck Institute of Economics Jena, and Institute for Economic Research (DIW Berlin))
    Abstract: This paper investigates the geography and the effect of people in creative occupation in Germany. The population share of the Creative Class as well as of bohemians and artists is relatively high in larger cities, but smaller places and rural regions may also have a considerable proportion of people with a creative job. While ethnical and cultural diversity and a high level of public supply in health care and education can explain the distribution of creative people, employment opportunities seem to play only a minor role. There is a positive statistical relationship between the share of people in creative occupations, the level of new business formation and the innovativeness of regions. A high share of creative occupations seems to be conducive to regional growth; however, the exact nature of this relationship is still unclear.
    Keywords: Creativity, innovation, entrepreneurship, regional development
    JEL: O31 O18 R11
    Date: 2007–03–30
  13. By: David B. Audretsch (Max Planck Institute of Economics Jena, Research group on Entrepreneurship, Economic Growth and Public Policy); Mark Sanders (Max Planck Institute of Economics Jena, Research group on Entrepreneurship, Economic Growth and Public Policy)
    Abstract: This paper argues that globalization has led to a shift in developed countries from an industrial to an entrepreneurial model of production. Globalization is interpreted as a level shock in the supply of unskilled labor to the world economy, a decrease in the level of political risk associated with outward foreign direct investment (offshoring), and the widespread diffusion of a general purpose technology such as ICT. The impact of these exogenous shocks is then analyzed in a variety expansion model that distinguishes among three types of varieties. Following the life cycle we distinguish among new, mature and offshore production. The above shocks all result in a shift in comparative advantage in developed countries towards new varieties which correspond to the early stage of the product life cycle. Moreover, because entrepreneurs serve as agents that move varieties between life cycle stages, their importance increases due to globalization. The many new opportunities for profit benefit entrepreneurs and skilled labor. By contrast, factors of production employed in the mature stages of the life cycle become less important. Thus, the model explains the emergence of what we label an entrepreneurial economy.
    JEL: F01 J31 O1 P0
    Date: 2007–04–05
  14. By: Francesca Lotti (Bank of Italy); Enrico Santarelli (University of Bologna, Max Planck Institute of Economics Jena and ENCORE Amsterdam); Marco Vivarelli (Università Cattolica del Sacro Cuore, CSGR Warwick, Max Planck Institute of Economics Jena and IZA)
    Abstract: According to Gibrat’s Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. This paper reconciles these two streams of literature, taking into account the role of market selection and learning in reshaping a given population of firms through time. Consistently with previous studies, we found that Gibrat’s Law has to be rejected ex ante, since smaller firms tend to grow faster than their larger counterparts. However, a significant convergence towards Gibrat-like behavior can be detected ex post. This finding is an indication that market selection "cleans" the original population of firms, so that the resulting industrial "core" does not depart from a Gibrat-like pattern of growth. From a theoretical point of view, this result is consistent with those models based on passive and active learning, and can be seen as a defense of the validity of the Law in the long-run.
    Keywords: Gibrat’s Law, firm size, firm age, firm survival, firm growth
    JEL: L11 L26
    Date: 2007–04
  15. By: Christoph Diensberg (Economics and Business Education, University of Rostock Hanseatic Institute for Entrepreneurship and Regional Development HIE-RO)
    Abstract: This article illustrates the case of the international network project BEPART (Baltic Entrepreneurship Partners) with its activities in entrepreneurship promotion. It starts with some basic thoughts on the understanding of entrepreneurship. The article then turns to European and regional development issues in the Baltic Sea Region by trying to show how the project work responds to related challenges. The next step describes the project goals and structure. Ten propositions on regional entrepreneurship promotion are presented as they represent a set of shared basic assumptions inside the network. They are also intended to be a tool for inducing more far reaching improvements in the field. Knowledge exchange and its effects are another issue that is highlighted. The article touches the topic of evaluation and learning within the project, and finally turns to innovations in entrepreneurship education and its foundations
    Keywords: entrepreneurship promotion, entrepreneurship education, Baltic Sea Region, regional development
    JEL: A2 D8 L2 R5
    Date: 2006

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