nep-ent New Economics Papers
on Entrepreneurship
Issue of 2008‒09‒05
nine papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Whither a flat ladscape? Regional differences in Entrepreneurship in the Netherlands By Niels Bosma; Kashifa Suddle; Veronique Schutjens
  2. Entrepreneurial Career Capital, Innovation and New Venture Export Orientation By Jolanda Hessels; Siri Terjesen
  3. The Entrepreneurial Adjustment Process in Disequilibrium By André van Stel; Andrew Burke
  4. The Entrepreneurial Advantage of World Cities By Niels Bosma; R. Sternberg; Zoltan Acs
  5. Entrepreneurship in the Netherlands; High growth enterprises; Running fast but still keeping conrol By EIM
  6. Is the R&D Behaviour of Fast Growing SMEs Different? Evidence from CIS III Data for 16 Countries By Werner Hölzl
  7. Overcoming Resource-Constraints through Internationalization? An Empirical Analysis of European SMEs By Jolanda Hessels
  8. Global Entrepreneurship Monitor 2007 The Netherlands By Jolanda Hessels; Kashifa Suddle; Maaike Mooibroek
  9. Does distance matter in banking? By Kenneth P. Brevoort; John D. Wolken

  1. By: Niels Bosma; Kashifa Suddle; Veronique Schutjens
    Abstract: In this paper we contribute to the set of studies that focus on explanations of regional differences in entrepreneurship by taking into account the entrepreneurial processes at the individual level. We investigate entrepreneurial attitudes and entrepreneurial activity in three contrasting labour market regions in the Netherlands in two stages. In the first stage we extensively explore regional differences in entrepreneurial activity by looking at several types of entrepreneurs and phases in the entrepreneurial process. In the second stage we investigate to what extent the observed regional differences in perceptions to entrepreneurship and involvement in entrepreneurial activity change when controlling for determinants at the individual level. We find that the observed regional differences in levels of early-stage entrepreneurial activity can to large extent be explained by these individual characteristics. Furthermore we find the regional pattern of overall early-stage entrepreneurial activity to be different from the pattern of ambitious early-stage entrepreneurial activity.
    Date: 2008–06–09
  2. By: Jolanda Hessels; Siri Terjesen
    Abstract: This paper explores the role of entrepreneurial human capital, entrepreneurial social capital and innovation in explaining new ventures' levels of export orientation. We use Global Entrepreneurship Monitor data from 9,342 early-stage venture entrepreneurs in 36 countries. Our results suggest that both entrepreneurial human capital and entrepreneurial social capital are important in explaining new ventures' export orientation. Entrepreneurial human capital increases the probability for new ventures to offer new products or services. New ventures with unique products or services are more likely to export, indicating that entrepreneurial human capital both has a direct positive relationship with new ventures' export and an indirect positive relationship through the venture's new product or service offerings. We also find that compared to moderate exporters, new ventures with higher export orientation levels are more likely to possess entrepreneurial human and entrepreneurial social capital and to be more innovative.
    Date: 2008–07–02
  3. By: André van Stel; Andrew Burke
    Abstract: Despite the fact that the main contribution of entrepreneurship theory to economics has been to provide an account of the performance of markets in disequilibrium, little empirical research on entrepreneurship has examined firm entry and exit in this context. In this paper, we attempt to redress this by modelling the interrelationship between firm entry and exit rates in disequilibrium. Using a data base of Dutch retail industries over the period 1980-2001, we are able to distinguish between displacement (entry causing exit) and replacement (exit causing entry) effects. We introduce a new methodological approach which allows us to investigate whether the relations under consideration differ between situations of undershooting’ (the actual number of firms is below the equilibrium number) and ‘overshooting’ (vice versa). We find that the equilibriumrestoring mechanisms are different in these two situations – being faster in over than undershoots. Our estimation results also imply that for undershooting, a lack of competition between incumbent firms contributes to restoration of equilibrium (creating room for new-firm entry) while in overshooting competition induced by new firms (in particular strong displacement) causes the number of firms to move towards equilibrium. The research helps to embed entrepreneurship theory into mainstream economics in a manner that adds greater insight into the performance of markets in disequilibrium.
    Date: 2008–07–24
  4. By: Niels Bosma; R. Sternberg; Zoltan Acs
    Abstract: De vergelijkende studie The 'Entrepreneurial Advantage of World Cities'  is de eerste in zijn soort en gebaseerd op de gecombineerde data van de Global Entrepreneurship Monitor (GEM) tussen 2001 en 2006. De verscheidene indices hebben betrekking op de periode 2001-2006. Hierbij gaat het om zowel het actief bezig zijn met het oprichten van een nieuwe eigen onderneming ('nascent' ondernemers), als het runnen van een eigen onderneming die minder dan 42 maanden oud is (ondernemers van nieuwe bedrijven).
    Date: 2008–08–06
  5. By: EIM
    Abstract: This ninth edition of Entrepreneurship in the Netherlands deals with high growth and the quality of entrepreneurship. In the 'Action Plan Entrepreneurs - Entrepreneurship policy in the Netherlands?', the Ministry of Economic Affairs describes its aim as not just to create more entrepreneurs, but also to improve the quality of entrepreneurship. Creating a successful enterprise requires a careful and well-researched approach combined with a detailed knowledge of the market. Many entrepreneurs in the Netherlands are still not fully exploiting the capacities of their businesses. This is often due to lack of preparation and insufficient knowledge.In addition, the action plan stipulates that fast-growing companies are an important target group for Dutch entrepreneurship policy. The Netherlands is lagging behind the rest of Europe in terms of the share of such companies as a proportion of the business population. Therefore the Ministry tries to ensure that the Netherlands? share will match, by 2010, the average in the benchmark countries (i.e. the US, UK, Denmark, Belgium and Germany).
    Date: 2007–02–06
  6. By: Werner Hölzl (WIFO)
    Abstract: This paper studies the R&D behaviour of fast growing SMEs using CIS III data for 16 countries. We group the countries into three groups that roughly have the same position in technological development. The first finding is that R&D is more important to high growth SMEs in countries that are closer to the technological frontier. The second finding is that high growth SMEs are more innovative than non-high-growth SMEs only for countries close to the technological frontier. This suggests that gazelles derive much of their drive from the exploitation of comparative advantages. From a policy perspective this suggests that there are important limits to centralise policies that aim at fostering high growth SMEs.
    Keywords: R&D, high growth firms, Europe, CIS
    Date: 2008–08–21
  7. By: Jolanda Hessels
    Abstract: Previous research has indicated that firms can use internationalization as a strategy to access or build up resources. Such a strategy may be of particular interest or even necessary (for example to survive or grow) for firms that lack specific resources. Based on resource dependency theory and the model for entrepreneurial internationalization this paper investigates whether resource scarcities in terms of labor, finance and technology increase the likelihood for small and medium-sized enterprises (SMEs) to aim to access or accumulate these specific resources through internationalization. A number of hypotheses are tested using firm-level data from the ENSR Enterprise Survey 2003 for 7,673 SMEs located in 18 European countries. The results indicate that perceived resource constraints in terms of labor and finance spur SMEs to undertake international activities with the aim to access or accumulate labor, respectively finance. It is also found that among internationally active SMEs perceived constraints in terms of labor, finance and new technology increase the probability of SMEs using their international activities as a means for accessing or acquiring these scarce resources.
    Date: 2008–06–18
  8. By: Jolanda Hessels; Kashifa Suddle; Maaike Mooibroek
    Abstract: De Global Entrepreneurship Monitor (GEM) brengt jaarlijks de mate van 'nieuw ondernemerschap' en de institutionele voorwaarden daarvoor in kaart voor een groot aantal landen. Nederland heeft in 2007 voor de zevende keer deelgenomen aan GEM. Daarbij is een telefonische survey gehouden onder 3.500 personen.
    Date: 2008–07–08
  9. By: Kenneth P. Brevoort; John D. Wolken
    Abstract: Deregulation and technological change have reduced the transactions costs that led to the dominance of local financial service suppliers, leading some to question if distance still matters in banking. This debate has been particularly acute in small business banking, where transactions costs are believed to be particularly high. This paper provides a detailed review of the literature on distance in banking markets, highlighting the reasons why geographic proximity is believed to be important and examining the changes that may have affected its importance. Relying on new data from the 2003 Survey of Small Business Finances, we examine how distances between small firms and their financial service suppliers changed over the 1993-2003 decade. Our analysis reveals that distances increased, though the extent varied substantially across financial services and supplier types. Generally, increases were observed in the early half of the decade, while distances declined in the following five years. There was also a trend towards less in person interaction between small firms and their suppliers of financial services. Nevertheless, most relationships remained local, with a median distance of 5 miles in 2003. The results suggest that distance, while perhaps not as tyrannical as in the past, remains an important factor in banking.
    Date: 2008

This nep-ent issue is ©2008 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.