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on Entrepreneurship |
| By: | Hansson, Åsa (Department of Economics , Lund University and Ratio, Stockholm) |
| Abstract: | It is widely recognized that entrepreneurial activity plays an important role in promoting new product innovation, discovering new markets, and replacing inefficient incumbents in a process called “creative destruction”, all of which enhance economic growth. Given the importance of entrepreneurship and small business enterprises it is not surprising that policy makers worldwide (and especially in Europe) try to stimulate entrepreneurial activity. One public policy, frequently discussed, is how to design tax policies that stimulate start-ups and entrepreneurship. Existing knowledge about taxes’ effect on entrepreneurial activity and start-ups is relatively limited, however. Existing empirical studies are primarily based on US data and have until recently used aggregated tax measures (e.g., average national tax rates) or hypothetical marginal tax rates and time-series or cross-section data. This study, however, uses a particular rich longitudinal micro-level dataset based on Swedish tax-return information, which makes it possible to track a cohort of individuals over time periods during which tax rate changes took place, and thereby isolate whether real-life individual decisions about self-employment are affected by changes in the tax rates they actually face. In addition, as the tax structure in Sweden is neutral as opposed to the US that encourages risk taking and tax-driven self-employment, studying the effect of income taxes on the probability to become self-employed based on Swedish data provides information about how taxes on self-employment affect self-employment. Contrary to earlier studies based on US data, I find both average and marginal tax rates to negatively impact the probability to become self-employed. |
| Keywords: | Self-employment; entrepreneurship; small business; taxation; wealth |
| JEL: | H24 H26 J24 |
| Date: | 2008–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0122&r=ent |
| By: | Zheng, Jianghuai; Hu, Zhining; Wang, Jialing |
| Abstract: | This paper firstly discusses why the economic growth in the Yangtze River Delta has been slowed down recently and suggests a need totransform the current input-based economic growth pattern into aninnovation-based one. Next, through our theoretical analysis, we find that the change of current economic growth pattern is just the innovative reallocationof production factors, and the new economic growth driven by innovation is mainly initiated by the transmutation of entrepreneurship. Finally, we test our belief with real-world evidence. It shows that the Delta has formed a mechanism in which entrepreneurship and human capital mutually promote each other. However, the interactive relationship between R&D expenditure and entrepreneurship has not been developed in general. In addition, excessive government interventions will do harm to the growth of entrepreneurs and economic development. |
| Keywords: | entrepreneurship; innovation and economic growth pattern |
| JEL: | O31 |
| Date: | 2008–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8919&r=ent |
| By: | Rodrigo Canales (MIT Sloan School of Management); Ramana Nanda (Harvard Business School, Entrepreneurial Management Unit) |
| Abstract: | Using loan-level data from Mexico, we study the relationship between the organizational structure of banks and the terms of lending to small businesses. We find that banks with decentralized lending structures - where branch managers have autonomy over the terms of lending - give larger loans to small firms and those with more "soft information" - particularly in states with weak legal enforcement of financial contracts. However, decentralized banks are also more responsive to the competitive environment when setting loan terms. They are more likely to restrict credit and to charge higher interests rates when they have market power, more so to smaller firms that have fewer outside options for external finance. These findings highlight a 'darker side' to decentralized banks and suggest that the relative benefit of a decentralized bank structure for small business lending depends critically on the nature of the competitive environment in which banks are located. |
| Keywords: | Banks, Institutions, Entrepreneurship |
| JEL: | F22 L14 L26 L86 O17 O19 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:08-101&r=ent |
| By: | Laia Castany (Faculty of Economics, University of Barcelona) |
| Abstract: | The level of training provided by small firms to their employees is below that provided by their larger counterparts. The provision of firm-related training is believed to be associated to certain characteristics of the firm. In this paper we argue that small firms provide fewer training opportunities as they are less likely to be associated with these characteristics than large firms. The suitability of estimating training decisions as a double-decision process is examined here: first, a firm has to decide whether to provide training or not and, second, having decided to do so, the amount of training to provide. The differences in training provision between small and large firms are decomposed in order to analyse the individual contribution of these characteristics to explaining the gap. The results show that small firms face greater obstacles in accessing training and that the main reasons for that are related to their technological activity and the geographical scope of the market in which they operate. |
| Keywords: | Continuous training, Firm size, Innovative activity. |
| JEL: | J21 L11 M53 L25 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:200808&r=ent |
| By: | Pedro Rui Mazeda Gil (Faculdade de Economia, Universidade do Porto and CEMPRE, Rua Dr Roberto Frias, 4200-464, Porto, Portugal.) |
| Abstract: | In this paper, we bring together in a systematised fashion the scattered empirical evidence relating firm dynamics and both short-run and long-run macroeconomic dynamics. There are numerous studies that focus on firm-level data while controlling for macroeconomic conditions, which cover a considerable range of variables, industries and countries. From these studies it has emerged what is by now a rather robust set of empirical regularities, or stylized facts, about entry, exit, growth and the size distribution of firms. On the contrary, the literature that focus explicitly on the interplay between firm dynamics and the business cycle is roughly confined to the US experience and to the cyclical properties of firm entry and exit, whereas systematic studies about the relationship between firm dynamics and economic growth are almost non-existent whatsoever. |
| Keywords: | empirical evidence, firm dynamics, business cycle, economic growth |
| JEL: | L11 |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:276&r=ent |