nep-ent New Economics Papers
on Entrepreneurship
Issue of 2008‒11‒18
twelve papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups By Gries, Thomas; Naude, Wim
  2. The dynamics of combining self-employment and employment By Delmar, Frédéric; Folta, Timothy; Wennberg, Karl
  3. International Entrepreneurship: Value Creation Across National Borders By Jolanda Hessels
  4. Internationalization of European SMEs towards Emerging Markets By Jolanda Hessels; Madeleine Kemna
  5. Causal Link between Exporting and Innovation Activity. Evidence from Slovenian Firms By Kostevc, Crt; Damijan, Jože
  6. Entrepreneurial Ventures and the Developmental State: Lessons Date the Advanced Economies By Lazonick, William
  7. Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy By Jean-Philippe BERROU (GREThA UMR CNRS 5113); François COMBARNOUS (GREThA UMR CNRS 5113)
  8. External orientation of second generation migrant entrepreneurs : a sectoral study on Amsterdam By Baycan-Levent, T.; Nijkamp, P.; Sahin, M.
  9. Clusters as vehicles for entrepreneurial innovation and new idea generation : a critical assessment By Bahlmann, R.D.; Huysman, M.H.; Elfring, T.; Groenewegen, P.
  10. Local shopkeepers’ associations and ethnic minority entrepreneurs By Masurel, E.
  11. The Strategic Determinants of Tardy Entry: Is Timeliness Next to Godliness? By Berchicci, L.; King, A.A.; Tucci, C.L.
  12. The effects of R&D tax credits on patenting and innovations By Ådne Cappelen, Arvid Raknerud and Marina Rybalka

  1. By: Gries, Thomas; Naude, Wim
    Abstract: Start-ups of new firms are important for economic growth. However, start-up rates differ significantly between countries and within regions of the same country. A large empirical literature studies the reasons for this and attempts -Date identify the regional determinants of start-ups. In contrast, there is a much smaller theoretical literature that attempts the formal modelling of the start-up process within a region. In this paper, we attempt -Date contribute -Date this small literature by introducing a general theoretical model of the entrepreneurial start-up process. The model links start-ups -Date economic growth and can be applied -Date understand growth in a regional context. We derive five propositions that fit the stylized facts Date the empirical literature: (i) growth in the regional economy is driven by an expansion in the number of start-up firms that supply intermediate goods and services; (ii) improvements in human capital will enhance the rate of start-ups; (iii) improvements in the relative rates of return -Date entrepreneurs and business conditions will raise start-up rates; (iv) an increase in regional financial concentration will reduce the start-up rate in a region and; (v) increased agglomeration/urbanization in a region has an a priori ambiguous effect on start-up rates.
    Keywords: start-ups, entrepreneurship, frictions, economic growth
    Date: 2008
  2. By: Delmar, Frédéric (Ecole de Management de Lyon); Folta, Timothy (Purdue University); Wennberg, Karl (Stockholm School of Economics)
    Abstract: This study examines the extent to which wage-earning workers are simultaneously self-employed, a phenomenon not thoroughly investigated in earlier studies. We use matched employee-employer databases to present a detailed investigation of self-employment patterns within the post industrial sectors in Sweden from 1990 to 2002. We find that persons that combine self-employment with waged work constitute a majority of the total number of self-employed, and that most people enter self-employment by engaging first in combinatory work, indicating that the decision to move to self-employment is more complex than characterized in earlier research.
    Keywords: Self-employment; income dynamics; entrepreneurship
    JEL: J24 J60
    Date: 2008–11–04
  3. By: Jolanda Hessels
    Abstract: This book investigates antecedents and outcomes of international entrepreneurship. International entrepreneurship as a field of research involves both research into entrepre-neurship in multiple countries (cross-country comparisons of the nature and extent of entrepreneurial activity) and research into cross-border entrepreneurship (international ac-tivity of small and medium-sized enterprises and new ventures).
    Date: 2008–11–12
  4. By: Jolanda Hessels; Madeleine Kemna
    Abstract: Emerging markets used to be closed economies that have only recently begun opening up their markets to the world economy. In addition to multinational enterprises (MNEs) small and mediumsized enterprises (SMEs) from developed countries have also started to undertake international activities in emerging markets. This paper investigates whether SMEs from higher-income European countries that operate in emerging markets are different from SMEs that operate exclusively in other developed markets e.g. in terms of their firm characteristics, internationalization motives and perceived internationalization barriers. The empirical analysis uses firm-level data for 3,698 internationally active SMEs located in 19 European countries (i.e. EU-15, Iceland, Liechtenstein, Norway and Switzerland).
    Date: 2008–11–03
  5. By: Kostevc, Crt; Damijan, Jože
    Abstract: In this paper we investigate the causal relationship between firm's innovation and exporting activity by using detailed firm-level data on innovation activity, financial variables and information on trade for Slovenian firms in 1996-2002. We employ the bivariate probit regression on a system of innovation and exporting equations as well as matching procedures to tease out the direction of causality between exporting status and innovation activity. Our results suggest a strong positive relationship between exporting and innovation activity in both directions, while results on the impacts of lagged export (or innovation) status on the probability to start innovat- ing (or exporting) are less conclusive. In other words, whereby innovating status increases the probability of exporting it does not increase the probability of becom- ing a first time exporter, and vice versa. The results remain unaltered also after allowing for discrimination between product and process innovation.
    Keywords: DYNREG, firm heterogeneity, innovation, exporting, matching
    JEL: D24 F14 F21
    Date: 2008
  6. By: Lazonick, William
    Abstract: A basic intellectual challenge for those concerned with the poverty of nations is -Date come -Date grips with the nature and causes of the wealth of the world?s wealthier nations. One might then be in a position -Date inform the poorer nations how they might achieve similar outcomes. This paper is organized around what I call ?the theory of innovative enterprise?, a perspective derived Date the his-Daterical and comparative study of the development of the advanced economies. The theory of innovative enterprise provides the essential analytical link between entrepreneurship and development. Section 2 offers, as a point of departure, a contrast between entrepreneurship in rich and poor nations. Section 3 outlines the theory of the innovating firm in which entrepreneurship has a role -Date play. Section 4 identifies the roles of entrepreneurship in new firm formation in terms of the types of strategy, organization, and finance that innovation requires, and emphasizes the ?disappearance? of entrepreneurship with the growth of the firm. In Section 5 I argue that, in the advanced economies, successful entrepreneurship in knowledge intensive industries has depended heavily upon a combination of business allocation of resources -Date innovative investment strategies, and government investment in the knowledge base, state sponsored protection of markets and intellectual property rights, and state subsidies -Date support these business strategies. One cannot understand national economic development without understanding the role of the developmental state. At the same time, the specific agenda and ultimate success of the developmental state cannot be unders-Dateod in abstraction Date the dynamics of innovative enterprise. It is through the interaction of the innovative enterprise and the developmental state that entrepreneurial activity inserts itself in-Date the economic system -Date contribute -Date the process of economic development.
    Keywords: entrepreneurship, innovative enterprise, developmental state
    Date: 2008
  7. By: Jean-Philippe BERROU (GREThA UMR CNRS 5113); François COMBARNOUS (GREThA UMR CNRS 5113)
    Abstract: As to explore social networks influence in African informal economy, this paper fits in the conceptual framework of reticular embeddedness. By going into the analyse of ties strength, our purpose is to question the real influence of ties content. We use a recent original dataset to evaluate how entrepreneurs’ networks influence their activities economic outcomes. ‘Multiple name generators’ method provides a vast amount of information about ties content, which can be treated by factor analysis to describe and categorize networks. Finally, we show that not only business ties but the particular configuration of ties strength in networks improve informal earnings.
    Keywords: Informal economy ; embeddedness ; social networks ; informal earnings
    JEL: O17 Z13
    Date: 2008
  8. By: Baycan-Levent, T. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, P.; Sahin, M.
    Abstract: A growing number of the second-generation migrant entrepreneurs and an orientation to non-traditional sectors have become the new trends in migrant entrepreneurship in recent years. Although traditional sectors are still the most popular among the first generation migrant entrepreneurs, because of the increasing pressure and high competitiveness in traditional areas, new niches are developing and while the first generation has more often become active in these new areas such as the producer services sector which includes finance, insurance, real estate and business-related professional services, the second generation have contributed to the emergence of new areas of immigrant business activity such as the ICT and the creative industries. Against this background, this study focuses on the external orientations of the second generation migrant entrepreneurs while addressing in particular the way – and the extent to which – the choice for entrepreneurship is made by higher-educated young ethnic generations. The empirical data of our study is based on in-depth personal interviews held in the first half of 2007. We employed a recently developed multivariate qualitative calissification method, coined rough set analysis in order to investigate the motivation, goals and strategies of second generation Turkish entrepreneurs in the ICT and the FIRE sector in the Netherlands. The results of our study show that the second generation Turkish entrepreneurs in the Netherlands have started to orient to new and non-traditional sectors like ICT and FIRE sectors. The motivation and driving forces of the second generation Turkish entrepreneurs are stemming from both their personal characteristics shaped by their higher educational level and their previous working experience as an employee or entrepreneur in the same sector. The demand for and a gap in the sector as well as the growing and promising structure of the sector play also an important role in pulling the second generation Turkish immigrants to become entrepreneur in
    Date: 2008
  9. By: Bahlmann, R.D. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Huysman, M.H.; Elfring, T.; Groenewegen, P.
    Abstract: Recent theorizing in cluster literature emphasizes the importance of inter-cluster knowledge linkages in addition to local knowledge dynamics, enabling new and innovative ideas to flow from one cluster to the other. This paper contributes to this topic by studying inter-cluster knowledge linkages at an individual level of analysis, making use of qualitative social network measures. Central to this case is the Amsterdam New Media-cluster, with a special focus on entrepreneurs engaging in lively inter-cluster exchange of knowledge and debate, resulting in the exchange of new visions and ideas across cluster boundaries. The results reported in this paper provide us with an opportunity to discuss cluster boundaries as a social construction, especially in relation to the knowledge- based view of clusters.
    Keywords: inter-cluster knowledge linkages, entrepreneurship, Amsterdam New Media-cluster, Social networks
    Date: 2008
  10. By: Masurel, E. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
    Abstract: This paper provides empirical evidence concerning the relationship between ethnic minority entrepreneurs and local shopkeepers’ associations in Amsterdam. Having more members means more support for the local shopkeepers’ association, which in turn may have a positive impact on the shopping area, and the surrounding neighbourhood. In this way, local shopkeepers’ associations exercise an important function of social entrepreneurship. Many Western cities faced a strong growth of ethnic minority entrepreneurship in recent years. However, ethnic entrepreneurs join these local shopkeepers’ associations less frequently compared to native entrepreneurs. To turn the tide for the decreasing support for the local shopkeepers’ associations, the reasons for (not) joining, both for ethnic minority entrepreneurs and for native entrepreneurs, were researched. After a thorough literature survey, 70 shopkeepers in Amsterdam were interviewed. The most important reasons why entrepreneurs do not join these associations are: insufficient benefits of the membership; costs of the membership too high; ignorance of the purpose of the local shopkeepers’ association in that area; and distrust of this association. For ethnic entrepreneurs, ignorance of the purpose of the local shopkeepers’ association in that area and ignorance of the purpose of these associations in general are more important reasons not to join. In order to attract more members, these reasons should be incorporated in the associations’ future policy.
    Keywords: ethnic minority entrepreneurship, local shopkeepers’ associations, social cohesion, mixed embeddedness
    Date: 2008
  11. By: Berchicci, L.; King, A.A.; Tucci, C.L. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Previous research has considered extensively the causes and effects of market entry order and timing. It has neglected, however, the timeliness of such entry — the degree to which a firm delivered a new product on the date it had set for its release. In this article, we begin to fill the need for such research by evaluating some strategic explanations for why a firm might miss a scheduled entry date. We then test whether such “tardy entry†influences sales performance in the new market.
    Keywords: entry timing;new products;disk drive industry;reputation;managerial disfunction
    Date: 2008–11–04
  12. By: Ådne Cappelen, Arvid Raknerud and Marina Rybalka (Statistics Norway)
    Abstract: Norwegian business spending on R&D is low by OECD standards. To stimulate business R&D, in 2002 the Norwegian government introduced a tax-based incentive, SkatteFUNN. We analyze the effects of SkatteFUNN on the likelihood of innovating and patenting. Using a rich database for Norwegian firms, we find that projects receiving tax credits result in the development of new production processes and to some extent the development of new products for the firm. Firms that collaborate with other firms are more likely to be successful in their innovation activities. However, the scheme does not appear to contribute to innovations in the form of new products for the market or patenting.
    Keywords: Tax credits; R&D; Patenting; Innovation; Self-selection
    JEL: C33 C52 D24 O38
    Date: 2008–11

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.
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