nep-ent New Economics Papers
on Entrepreneurship
Issue of 2007‒09‒09
nine papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Migrant Entrepreneurship In A Diverse Europe: In Search Of Sustainable Development By Baycan-Levent, Tuzin; Nijkamp, Peter
  2. New Orientations in Ethnic Entrepreneurship: Motivation, Goals and Strategies of New Generation Ethnic Entrepreneurs By Baycan-Levent, Tuzin; Nijkamp, Peter; Sahin, Mediha
  3. On the Role of Entrepreneurial Experience for Start-up Financing: An Empirical Investigation for Germany By Metzger, Georg
  4. Human Capital and Successful Academic Spin-Off By Bettina Müller
  5. An inquiry on the change profile of healthcare managers and entrepreneurs By E. COOLS; H. VAN DEN BROECK
  6. Personal experience: a most vicious and limited circle!? : on the role of entrepreneurial experience for firm survival By Metzger, Georg
  7. Can Small Firms' Perceived Constraints Help Explain Survival Rates? By Seán Lyons
  8. The Drivers and Implications of Business Divestiture – An Application and Extension of Prior Findings By Carolin Decker
  9. Innovation and the Export-productivity Link By Cassiman, Bruno; Golovko, Elena

  1. By: Baycan-Levent, Tuzin (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, Peter
    Abstract: This paper aims to emphasize the importance of entrepreneurship for the European innovation system and addresses in particular the opportunities offered by migrant (or ethnic) entrepreneurship. After a concise review of the European ‘entrepreneurial economy’, the economic significance of self-employment is highlighted. It is argued that migrant entrepreneurship offers many possibilities for coping with socio-cultural diversity and may contribute to a sustainable socio-economic development. Several data are presented to support these views, while the paper also offers promising policy guidelines.
    Date: 2007
  2. By: Baycan-Levent, Tuzin (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, Peter; Sahin, Mediha
    Abstract: The literature on ethnic entrepreneurship has identified a blend of structural and cultural factors that influence the step towards ethnic entrepreneurship. An important issue is whether ethnic entrepreneurs produce for their own ethnic niches or whether they try to cover a wider market of customers. This difference between so-called internal and external orientation has been the subject of many recent empirical investigations. An internal orientation may offer a more protected market, but will never lead to market expansion (break-out strategy). An external orientation requires more skills, diversified communication channels and access to government policy support measures. The concentration of ethnic entrepreneurs in traditional sectors has led many studies to focus mainly on this internal orientation, while there is a limited number of studies that address non-traditional sectors and external orientations of ethnic entrepreneurs. Against this background, the present study aims to deal with new departures for ethnic entrepreneurship in terms of motivation, sectoral choice, business goals and strategies of new generation ethnic entrepreneurs. What is the motivation and orientation of new generation ethnic entrepreneurs? How far are new generation ethnic entrepreneurs from their ethnic groups or their ethnic niches in the market? Can an innovative orientation –external orientation- help to break out from the local ethnic dependency or to escape from a lock-in situation in an ethnic enclave? Can the different motivations and orientations of new generation ethnic entrepreneurs help in realizing effective break-out strategies? In order to answer these questions the study focuses on external orientations of new generation ethnic entrepreneurs, while it addresses in particular the way -and the extent to which- the choice for entrepreneurship is made by higher educated ethnic young generations.
    Date: 2007
  3. By: Metzger, Georg
    Abstract: Entrepreneurs are often faced with problems regarding start-up financing. But compared to novice entrepreneurs, experienced entrepreneurs should have both more knowledge and better contacts, which should potentially reduce the occurrence of problems and affect finance composition. However, experience of business failure might result in additional effects. This analysis therefore investigates the effects of experience on several aspects of start-up financing. It is based on data from the KfW Start-up Monitor, a representative annual survey of the German population. The results show that experience affects several financing issues. Yet the impacts depend on the kind of experience. With regard to previously failed entrepreneurs, who are of particular interest, the findings indicate that they cut back their financing demand and are more likely faced with problems satisfying this demand. However, previously failed entrepreneurs do not significantly differ in the sources they use to finance their businesses.
    Keywords: Entrepreneurial experience, restart, start-up financing
    JEL: G32 L26 M13
    Date: 2007
  4. By: Bettina Müller (Centre for European Economic Research)
    Abstract: Academic spin-offs are one way in which employability of university graduates is reflected. Using the ZEW spinoff-survey, this paper studies empirically the impact of human capital on the success of academic spin-offs founding in knowledge and technology intensive sectors. The focus is thereby on the composition of human capital which is described according to whether or not the founders have studied several subjects and whether or not they all come from the same research establishment. Additionally the impact of having founded as a team is analyzed. Success is measured by employment growth. The findings suggest that it is advantageous to found within a team, but that the human capital composition both for single entrepreneurs and team foundations is rather irrelevant.
    Keywords: Higher Education , Human Capital , Entrepreneurship , Spin-off
    JEL: C12 L25 M13
    Date: 2006–12–20
    Abstract: The aim of this study was to investigate the extent to which people from two different sectors are ‘armed’ to deal effectively with change. Change is apparently the only constant factor in current work surroundings. A crucial issue to manage change professionally is coping with the involved uncertainty. The individual manager plays an important role in this regard, as successfully coping with change is strongly influenced by the psychological predispositions of the individual experiencing the change. We compared Flemish entrepreneurs and healthcare managers on four traits (locus of control, self-efficacy, tolerance for ambiguity, proactive personality) and on cognitive styles (i.e., individual preferences for organising and processing information). Entrepreneurs (n = 177) scored significantly higher on all traits than healthcare managers (n = 60). Healthcare managers scored significantly higher on the knowing and planning style than entrepreneurs, but no significant differences were found for the creating style. With this study, we hope to enhance the knowledge about the influence of particular characteristics in organisational change processes
    Keywords: change management, leadership, cognitive styles, micro-perspective
    Date: 2007–08
  6. By: Metzger, Georg
    Abstract: The analysis in this paper gives attention to effects on firm survival which come from entrepreneurial experience. It is likely that different kinds of experience result in different firm developments and therefore in different types of firm exit. Particular emphasis is placed upon the effects of failure experience. The results provide evidence that both the kind of experience and the type of exit matter. Negative experience, namely the experience of failure, is found to heighten the risk of failing again. This finding indicates that business failures are largely not exceptions, but rather a sign of the entrepreneurs’ lack of ability.
    Keywords: Entrepreneurial Experience, Business Failure, Firm Survival
    JEL: G33 L25 L26 M13
    Date: 2007
  7. By: Seán Lyons (Economic and Social Research Institute (ESRI))
    Abstract: Survey evidence on small firms’ perceived constraints might provide useful information on the effects of institutional impediments, such as regulatory burdens, on post-entry performance. Using a new dataset that merges ENSR survey data on small firms’ major constraints with Eurostat small firm demography data, we find that some perceived constraints are associated with significant differences in survival rates for new small firms. However, the constraints variables seem only weakly related to survival, and some prominent constraints including administrative regulations and availability of finance are not significant. We suggest refinements in survey design that might improve the usefulness of such data for inter-country comparisons.
    Date: 2007–02
  8. By: Carolin Decker
    Abstract: The purpose of this study is to extend the current understanding of business divestiture by investigating its potential for triggering strategic reorientation. A divestiture involving strategic reorientation is here denoted as a strategic business exit, otherwise it is a status quopreserving business exit. The motives for divestiture specified in prior studies are mainly associated with firm financial performance and corporate strategy. Most studies investigate their impact on divestiture separately though both may interact. This study contributes to research by, first, distinguishing divestiture types, and, second, empirically testing the influence of performance and strategy both separately and in conjunction on the choice between strategic and status quo-preserving business exit with secondary data on 213 divestitures during 1999-2004 which were undertaken by a cross-industry sample of 91 firms listed in the German CDAX. The findings mainly indicate that firm financial performance is a stronger predictor of strategic business exit than corporate strategy.
    Keywords: Divestiture, Exit, Strategic Reorientation, Performance, Strategy, Diversification.
    JEL: G34 L11 L25 M10
    Date: 2007–09
  9. By: Cassiman, Bruno; Golovko, Elena
    Abstract: We explore the relationship between innovation activity, productivity, and exports using a panel of Spanish manufacturing firms for 1990-1998. Our results - based on non-parametric tests - suggest that firm innovation status is important in explaining the positive export-productivity association documented in prior research. For the sample of small innovating firms, we find no significant differences in productivity levels between exporters and non-exporters. Especially product innovation seems to explain the positive association between exports and productivity for this group of firms. For small non-innovating firms with low and medium productivity levels exporting firms continue to exhibit higher productivity than non-exporting firms.
    Keywords: exports; innovation; process innovation; product innovation; productivity
    JEL: D21 O31 O32
    Date: 2007–08

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