nep-ent New Economics Papers
on Entrepreneurship
Issue of 2008‒08‒14
five papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Foundations of High Impact Entrepreneurship By Zoltan J. Acs
  2. Ability and Self-Employment: Evidence from the NELS By Eren, Ozkan
  3. Entrepreneurship and Competitiveness Dynamics in Latin America. By Zoltan J. Acs; Jose Ernesto Amoros
  4. NEW SMALL FIRMS AND DIMENSIONS OF ECONOMIC PERFORMANCE By Sherrill Shaffer; Iftekhar Hasan; Mingming Zhou
  5. Endogenous Entry in Contests By John Morgan; Henrik Orzen; Martin Sefton

  1. By: Zoltan J. Acs (George Mason University; Max Planck Institute of Economics)
    Abstract: This survey reviews the theoretical literature on high impact entrepreneurship. The survey is guided in part by the recent classification changes at the Journal of Economic Literature (JEL) regarding entrepreneurship. The board voted to create a new classification code, L26, for entrepreneurship. The JEL intends to use this code for all articles and books that focus on economic questions related to entrepreneurial activity. Publications related to questions on occupational choice issues will be cross classified with J23; those focusing on innovation and entrepreneurship will be cross classified with O31; those focusing on finance will be cross classified with G24 Investment Banking, venture capital, brokerage and rating agencies; those focusing on new firms, start ups; and business related publications on how to be an entrepreneur will be cross classified (or solely classified) with M13. What does this economic literature tell us about entrepreneurship? In order to answer the questions this review covers the intersection of entrepreneurship with labor markets, innovation and capital markets - the three pillars of high impact entrepreneurship.
    Keywords: Entrepreneurship, High Impact Firms, Occupational Choice, Innovation, Finance, Policy, leveraged startups.
    JEL: L26 O31 J23 G24
    Date: 2008–08–12
  2. By: Eren, Ozkan
    Abstract: Using the National Educational Longitudinal Study data, this paper examines the role of pre-market abilities, as well as other determinants, on young men’s self-employment decision. Our results indicate that cognitive and noncognitive abilities are two important, in opposing directions, predictors of self-employment. We also find that cognitive and noncognitive abilities differ in their malleability with the latter being more malleable during adolescence. In addition, having a self-employed father, being black and family size exert large influences on self-employment probability.
    Keywords: Cognitive Ability; Endogeneity; Intergenerational Correlation; Noncognitive Ability; Reliability Ratios
    JEL: J00 J24 C25
    Date: 2008–05
  3. By: Zoltan J. Acs (George Mason University; Max Planck Institute of Economics); Jose Ernesto Amoros (Universidad del Desarrollo)
    Abstract: This study analyses the relationship between entrepreneurial dynamics and the level of competitiveness in Latin American countries. Based on a stage of economic development model we demonstrate that Latin American countries under the model followed different paths related to competitiveness. These different paths can explain the effect of specific competitiveness conditions on entrepreneurial dynamics in Latin America.
    Keywords: Entrepreneurship, Competitivness, Development, Latin America
    JEL: L26 M13 O54
    Date: 2008–08–12
  4. By: Sherrill Shaffer; Iftekhar Hasan; Mingming Zhou
    Abstract: Using data from metropolitan U.S. labor market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities, and growth rates of several income and employment variables. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects of entry in metropolitan markets than previously documented, and point to several potential tradeoffs associated with entry by small firms.
    JEL: O1 J23 M13
    Date: 2008–07
  5. By: John Morgan (Haas School of Business, University of California-Berkeley); Henrik Orzen (School of Economics, University of Nottingham); Martin Sefton (School of Economics, University of Nottingham)
    Abstract: We report the results of laboratory experiments on rent-seeking contests with endogenous participation. Theory predicts that (a) contest entry and rent-seeking expenditures increase with the size of the prize; and (b) earnings are equalized between the contest and the outside option. While the directional predictions offered in (a) are supported in the data, the level predictions are not. Prediction (b) is not supported in the data: When the prize is large, contest participants earn more than the outside option. When the prize is small, contest participants earn less. Previous studies of gender and contest competition suggest that females should (a) not perform as well in the contest; and (b) enter at a lower rate. We find some support for (a) but not for (b). Women participate in the contest at the same rate as men.
    Keywords: Contests; Competition; Entry; Experiments
    JEL: C9 D4 D72
    Date: 2008–07

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