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on Entrepreneurship |
| By: | Acs, Zoltan J.; Desai, Sameeksha; Klapper, Leora F |
| Abstract: | This paper compares two datasets designed to measure entrepreneurship. The Global Entrepreneurship Monitor dataset captures early-stage entrepreneurial activity; the World Bank Group Entrepreneurship Survey dataset captures formal business registration. There are a number of important differences when the data are compared. First, GEM data tend to report significantly greater levels of early-stage entrepreneurship in developing economies than do the World Bank data. The World Bank data tend to be greater than GEM data for developed countries. Second, the magnitude of the difference between the datasets across countries is related to the local institutional and environmental conditions for entrepreneurs, after controlling for levels of economic development. A possible explanation for this is that the World Bank data measure rates of entry in the formal economy, whereas GEM data are reflective of entrepreneurial intent and capture informality of entrepreneurship. This is particularly true for developing countries. Therefore, this discrepancy can be interpreted as the spread between individuals who could potentially operate businesses in the formal sector - and those that actually do so: In other words, GEM data may represent the potential supply of entrepreneurs, whereas the World Bank data may represent the actual rate of entrepreneurship. The findings suggest that entrepreneurs in developed countries have greater ease and incentives to incorporate, both for the benefits of greater access to formal financing and labor contracts, as well as for tax and other purposes not directly related to business activities. |
| Keywords: | Banks&Banking Reform,E-Business,Access to Finance,Microfinance,Information Security&Privacy |
| Date: | 2008–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4667&r=ent |
| By: | Katsuya Takii (Associate Professor, Osaka School of International Public Policy, Osaka University) |
| Abstract: | This paper models entrepreneurship as the entrepreneur's information processing activity in order to predict changes in demand and reallocate resources. The results show that allocative efficiency---and therefore aggregate productivity---increases through intensified competition by entrepreneurs grasping at opportunities. This fierce competition leads to price reductions that result in the improvement of measured aggregate productivity. The price reduction also forces relatively less able entrepreneurs to become workers. As resources are then dealt with only by relatively talented entrepreneurs, this selection effect also increases aggregate productivity. The paper also discusses how the selection effect influences the distribution of firm size. |
| JEL: | D21 D61 D83 L25 L26 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:osp:wpaper:08e010&r=ent |
| By: | Ingrid Verheul; Linda van Mil |
| Abstract: | This paper investigates the determinants of the ambition to grow among Dutch early-stage entrepreneurs (nascents and young business owners). We use Adult Population Survey data of the Global Entrepreneurship Monitor (GEM) for the Netherlands. Merging cross-sectional data of the years 2002 to 2007, we arrive at a sample of 409 nascents and 336 young business owners. Growth ambition is measured by asking the respondent which statement fits him or her best: (1) I want my company to be as large as possible, or (2) I want a size I can manage myself or with a few key employees. We find that nascent entrepreneurs and young business owners are equally likely to strive after business growth. For nascent entrepreneurs we find that fear of failure and entrepreneurial self-efficacy are important factors explaining growth ambition. Starting a business because of perceiving and exploiting a business opportunity (as opposed to starting a business out of necessity) is an important driver of growth ambition for both nascents and young business owners, although it is more important for nascents. |
| Date: | 2008–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h200811&r=ent |
| By: | Veronica Frisancho; Dean Karlan; Martin Valdivia |
| Abstract: | We measure the impact of a business training program for female microentrepreneur clients of a group banking program in Peru. Using the credit with education model, we assigned clients randomly to either treatment or control groups. Treatment groups received thirty to sixty minute entrepreneurship training sessions during their normal weekly group banking meeting. These lasted between one to two years. Control groups remained as they were before, meeting weekly with the group banking program solely for making loan and savings payments. We find that intention to treat (ITT) led to higher repayment and client retention rates for the microfinance institution, improved business knowledge, and practices. More importantly, average business sales revenues also increase while revenues fluctuations were reduced. In addition, we find significant heterogeneity in the exposure of clients within the treatment group. Treatment on the treated (TOT) estimates, obtained using ITT as instrumental variable, show substantially larger effects. |
| Keywords: | Microfinance, business training, adult education |
| JEL: | C93 D12 D13 D21 I21 J24 O12 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:pmmacr:2008-11&r=ent |
| By: | Jordahl, Henrik (Research Institute of Industrial Economics (IFN)); Poutvaara, Panu (University of Helsinki); Tuomala, Juha (Government Institute for Economic Research (VATT)) |
| Abstract: | In a recent paper, García-Mainar and Montuenga-Gómez (2005) apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners and the self-employed in Portugal and in Spain. Our examination reveals several problems which relate to the validity and documentation of the instrumental variables, as well as the robustness of the results. |
| Keywords: | Education; Entrepreneurship; Human capital; EGIV estimator |
| JEL: | C23 I21 J31 |
| Date: | 2008–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0762&r=ent |
| By: | Sabarwal, Shwetlena; Terrell, Katherine |
| Abstract: | Using 2005 firm level data for 26 countries in Eastern and Central Europe, this paper estimates performance gaps between male and female-owned businesses, while controlling for location by industry and country. The findings show that female entrepreneurs have a significantly smaller scale of operations (as measured by sales revenues) and are less efficient in terms of total factor productivity, although the difference is small. However, women entrepreneurs generate the same amount of profit per unit of revenue as men. Although both male and female entrepreneurs in the region are sub-optimally small, women's returns to scale are significantly larger than men's, implying that women would gain more from increasing their scale. The authors argue that the main reasons for the sub-optimal size of female-owned firms are that they are both capital constrained and concentrated in industries with small firms. |
| Keywords: | Access to Finance,,Banks&Banking Reform,Gender and Health,Gender and Law |
| Date: | 2008–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4705&r=ent |
| By: | Amelie Constant |
| Abstract: | In this paper I assert that the entrepreneurial spirit can also exist in salaried jobs. I study the determinants of wages and the labor market success of two kinds of entrepreneurial women in Germany - self-employed and salaried businesswomen - and investigate whether ethnicity is important in these challenging jobs. Employing data from the German Socioeconomic Panel I estimate selection adjusted wage regressions for both types of businesswomen by country of origin. I find that self-employment offers businesswomen a lucrative avenue with higher monetary rewards, albeit for a shorter spell. If salaried businesswomen went into self-employment, they would receive considerably higher wages and for at least 30 years. However, if self-employed businesswomen went into salaried jobs, their wages would decline, suggesting that it is the self-employment sector that offers better opportunities and monetary success. Self-employed women in Germany fare well and most importantly, success does not depend on their ethnicity. |
| Keywords: | Businesswomen; Entrepreneurship; Self-employment; Economics of Minorities; Immigrants wage differentials |
| JEL: | M13 J23 J15 J61 J31 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp815&r=ent |
| By: | de Mel, Suresh; McKenzie, David; Woodruff, Christopher |
| Abstract: | Is the vast army of the self-employed in low income countries a source of employment generation? This paper uses data from surveys in Sri Lanka to compare the characteristics of own account workers (non-employers) with wage workers and with owners of larger firms. The authors use a rich set of measures of background, ability, and attitudes, including lottery experiments measuring risk attitudes. Consistent with the International Labor Organization's views of the self employed (represented by Tokman), the analysis finds that two-thirds to three-quarters of the own account workers have characteristics which are more like wage workers than larger firm owners. This suggests the majority of the own account workers are unlikely to become employers. Using a two and a half year panel of enterprises, the authors show that the minority of own account workers who are more like larger firm owners are more likely to expand by adding paid employees. The results suggest that finance is not the sole constraint to growth of microenterprises, and provides an explanation for the low rates of growth of enterprises supported by microlending. |
| Keywords: | Labor Markets,Tertiary Education,Work&Working Conditions,,Microfinance |
| Date: | 2008–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4635&r=ent |
| By: | Czarnitzki, Dirk; Binz, Hanna L. |
| Abstract: | This study tests for financial constraints on R&D investment and how they differ from capital investment. To identify constraints in the access to external capital, we employ a credit rating index. Our models show that internal constraints, measured by mark-ups, are more decisive for R&D than for capital investment. For external constraints, we find a monotonic relationship between the level of constriction and firm size for both types of investment. Thus, external constraints turn out to be more binding with decreasing firm size. On the contrary, we do not find such monotonic relationships for internal constraints. Differentiation by firms’ age does not support lower constraints for older firms. |
| Keywords: | R&D Investment, Capital Investment, Financial Constraints, Panel Data, Censored Regression Models |
| JEL: | O31 O32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7357&r=ent |
| By: | Carlos Carreira (GEMF and Faculdade de Economia, Universidade de Coimbra); Paulino Teixeira (GEMF and Faculty of Economics of the University of Coimbra) |
| Abstract: | In this study, we examine the pre-exiting productivity profile of mature firms relatively to survivors. We also evaluate how the observed productivity pattern affects the probability of exit. Our approach is an empirical one, and it is based on an unbalanced panel of Portuguese manufacturing firms covering the period of one decade. Our findings confirm that market selection forces low-productivity firms to exit, but we also found that there is a sizeable portion of firms located at the bottom of the distribution that do not shut down. Conversely, there is a non-negligible fraction of high-productivity firms that do actually fail. In line with some key theoretical predictions, exiting firms reveal a falling productivity level in a number of years prior to exit. Finally, our results from the probit model on the likelihood of exiting show that low productivity firms are much more likely to shut down. |
| Keywords: | Exit pattern, Productivity, Firm survival, Portugal |
| JEL: | L25 D24 D21 L60 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2008-05&r=ent |
| By: | Martin Koning (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); François Facchini (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, LAEP - LAboratoire d'Economie Publique - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | Cet article se propose de mettre en perspective les théories "traditionnelles" de la croissance régionale avec la théorie de l'entrepreneur. La revue de littérature que nous menons montre que, si la figure de l'entrepreneur n'est que très partiellement mobilisée dans les explications de la croissance régionale, il existe à la fois des similitudes et des moyens d'enrichir mutuellement les théories en présence. Le premier apport de la théorie de l'entrepreneur est d'intégrer une variable entrepreneuriale dans la fonction de production du modèle de croissance endogène. Le deuxième apport de la théorie de l'entrepreneur est une contribution à la théorie de la base. En distinguant activités productives et improductives, on se donne les moyens de montrer que la rente et le profit n'ont pas les mêmes effets sur la croissance économique régionale. Le troisième apport de la théorie de l'entrepreneur est de contribuer à la théorie du développement endogène et à ses extensions : école de la régulation et école californienne de géographie économique. Ces courants présentent de nombreuses ressemblances avec la théorie autrichienne de l'entrepreneur, tant dans leurs approches conceptuelles que dans leurs méthodologies. Pour toutes ces raisons, les théories de la croissance régionale devraient prendre plus en considération les figures de l'entrepreneur. |
| Keywords: | croissance régionale; entrepreneur |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ceswpp:halshs-00319161_v1&r=ent |
| By: | Sophie Boutillier (Laboratoire Redéploiement industriel et Innovation - Université du Littoral-Côte d?Opale) |
| Abstract: | La crise économique des années 1970 a provoqué dans les pays industrialisés et en développement des bouleversements économiques, sociaux, technologiques et politiques très importants. Le modèle économique de l’après guerre est face à ses limites. La reconstruction est achevée. Les besoins solvables que l’entreprise fordiste pouvait offrir sont saturés. La solution proposée combine quatre éléments interdépendants : l’entrepreneuriat, le micro crédit, le développement durable et le recul de l’Etat en tant qu’entrepreneur et de soutien social. L’élément fédérateur est le marché. Le rôle de l’Etat doit se limiter désormais à créer un cadre institutionnel propice à l’entrepreneuriat. Le micro crédit offre en la matière les moyens de financement dont les plus pauvres peuvent avoir besoin. Le développement durable offre un cadre institutionnel qui rend possible l’émergence de nouvelles opportunités d’investissement. Dans les pays en développement, de nouveaux entrepreneurs apparaissent depuis ces vingt dernières années. Mais, qui sont-ils ? Nous présenterons quelques profils types d’entrepreneurs de pays en développement (Népal, Chine, Inde, Brésil, Bangladesh) afin de donner au lecteur une idée concrète de leurs réalisations, mais aussi du cadre institutionnel dans lequel s’inscrivent leurs initiatives. Celles-ci pour intéressantes qu’elles soient en matière environnementale, économique et sociale, ont aussi leurs limites quant aux effets globaux qu’elles sont susceptibles d’engendrer en termes de développement durable. Sont-ce des épiphénomènes ou bien la protubérance d’une transformation radicale ? Nous analyserons ces tranches de vie sous le filtre de la théorie de l’entrepreneur (innovateur par définition ?) à partir des travaux de J. A. Schumpeter. Par ailleurs, l’actualité de ces questions est particulièrement préoccupante, alors que des émeutes de la faim se multiplient depuis quelques temps dans les pays en développement : problèmes écologiques, crise de l’agriculture, dépendance vis-à-vis des importations de produits vivriers. La crise actuelle est profonde. |
| Keywords: | entrepreneur;développement durable;innovation;crise;changement social |
| Date: | 2008–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00318500_v1&r=ent |
| By: | Kinda, Tidiane; Loening, Josef L. |
| Abstract: | This paper analyzes characteristics of nonfarm enterprises, their employment growth patterns, and constraints in doing business in rural Tanzania. Using unique survey data, the authors describe a low-return sector struggling to compete in a difficult business environment. However, about one-third of rural enterprises are growing fast. Most enterprises engage in agricultural trade. Due to a rapidly growing agricultural sector in recent years, limiting demand-side constraints, rural enterprise constraints in Tanzania mainly operate from the supply side. This suggests that, in particular, access to finance, road infrastructure, and rural cell phone communication is correlated with employment growth. A major finding is that subjective and objective measurements of business constraints are broadly comparable. The authors discuss a number of factors that would help to unleash the full potential of private sector-led growth in rural areas. The findings show that marginal improvements in the rural investment climate matter for growth. |
| Keywords: | Access to Finance,Rural Poverty Reduction,Microfinance,Banks&Banking Reform, |
| Date: | 2008–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4675&r=ent |
| By: | Tran Quoc Trung; Nguyen Thanh Tung; Tran Duy Dong; Phan Hoai Duong (Ministry of Planning and Investment, Viet Nam) |
| Abstract: | The study recommends the formulation of policies that support the development of business linkages and networking, and which promote subcontracting arrangements between small and large enterprises or between domestic firms and foreign investment enterprises. It is also necessary to support and facilitate the direct involvement of SMMEs in exporting or indirectly through large manufacturing enterprises. |
| Keywords: | Export-oriented, SME,SMME, Viet Nam |
| JEL: | F1 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:5408&r=ent |