nep-ent New Economics Papers
on Entrepreneurship
Issue of 2008‒12‒01
six papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Gender, family situation and the exit event: reassessing the opportunity-costs of business ownership By RACHIDA JUSTO
  2. Incubator Age and Incubation Time: Determinants of Firm Survival after Graduation? By Michael Schwartz
  3. Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy By Jean-Philippe BERROU (GREThA-GRES); François COMBARNOUS (GREThA-GRES)
  4. Alternative Approaches to the Development of Early Childhood Education in Singapore By Yong Yik Wei; Aekapol Chongvilaivan; Chew Jing Yang
  5. Open innovation in SMEs: Trends, motives and management challenges By Jeroen de Jong; Vareska van de Vrande; Wim Vanhaverbeke; Maurice de Rochemont
  6. Banking financing for Romanian SMEs – challenges and opportunities By Pirvu, Cerasela; Giurca Vasilescu, Laura; Mehedintu, Anca

  1. By: RACHIDA JUSTO (Instituto de Empresa)
    Abstract: Previous research into entrepreneurial exit has examined exit from a firm perspective focusing upon performance as the primary determinant of exit; however, new research is emerging which suggests that other variables (e.g. entrepreneurial human capital) may impact the exit decision over and above that accounted for by firm performance. Our research adopts a gender and family embeddedness perspective to examine the impact that gender and family situation (marital status, number of children, running a family business) have on voluntary exit decisions over and above that attributed to firm performance.
    Keywords: Gender
    Date: 2008–07
  2. By: Michael Schwartz
    Abstract: On the basis of a sample of 149 graduate firms from five German technology oriented business incubators, this article contributes to incubator/incubation literature by investigating the effects of the age of the business incubators and the firms’ incubation time in securing long-term survival of the firms after leaving the incubator facilities. The empirical findings from Cox-proportional hazards regression and parametric accelerated failure time models reveal a statistically negative impact for both variables incubator age and incubation time on post-graduation firm survival. One possible explanation for these results is that, when incubator managers become increasingly involved in various regional development activities (e.g. coaching of regional network initiatives), this may reduce the effectiveness of incubator support and therefore the survival chances of firms.
    Keywords: Firm survival; Hazard rates; Business incubators; Local technology policy
    JEL: C41 L25 L26 O38
    Date: 2008–11
  3. By: Jean-Philippe BERROU (GREThA-GRES); François COMBARNOUS (GREThA-GRES)
    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
  4. By: Yong Yik Wei; Aekapol Chongvilaivan; Chew Jing Yang
    Abstract: A knowledge-intensive, innovation-driven economy needs innovative and creative individuals in business, government, and the various professions. Singapore’s education system has an important role to play in equipping the young with the right qualities. This could be better achieved by moving away from an overly rigid education system that places undue emphasis on rote learning and examination scores, to an education system that develops students’ creativity and critical thinking abilities, and encourages their innate curiosity and willingness to experiment. We examine, as a backdrop, various economic theories of entrepreneurship and, believing that it is important to begin with a good educational foundation, the features of some alternative approaches to pre-school education. We also examine Singapore’s attempts to promote independent thinking and creativity among Singaporean students, and other countries’ experiences, in particular those of Finland and the Netherlands. Among other issues, emphasis is placed on play and the fostering of students’ love of learning, in less structured settings, as the media of learning during early childhood education.
    Keywords: Entrepreneurship; Pre-school Education; Play-based Learning; Reggio Emilia approach; Montessori Method; Teach Less, Learn More (TLLM) initiative
    JEL: I21 I28 I29
    Date: 2008–11
  5. By: Jeroen de Jong; Vareska van de Vrande; Wim Vanhaverbeke; Maurice de Rochemont
    Abstract: Although evidence for open innovation practices has been provided for large MNEs, they have not yet been analyzed systematically for SMEs. This paper presents the results of a survey among 605 Dutch innovating SMEs. The results show that SMEs are increasingly adapting open innovation practices. Moreover, they indicate a difference in the adaption to open innovation between manufacturing and services firms, and between larger and smaller SMEs. Larger SMEs adapting more quickly and in a more structured and professionalized way to open innovation than smaller ones. The survey furthermore shows that SMEs generally pursue an open innovation strategy to realize market-related objectives such as meeting customer demands, or keeping up with competitors. In addition, the results show that the most important barriers respondents face are related to the organizational and cultural differences when cooperating with other partners. Other serious barriers are administrative burdens, financing and knowledge transfer problems.
    Date: 2008–11–17
  6. By: Pirvu, Cerasela; Giurca Vasilescu, Laura; Mehedintu, Anca
    Abstract: Nowadays, the importance of the SME field becomes more and more a real basis for establishing and developing a modern, dynamic knowledge-based economy because their capacity to stimulate private ownership and entrepreneurial skills; to be flexible and to adapt quickly to a changing market; to generate new jobs. The accession of Romania to the European Union involve a lot of challenges and among them, the SME development plays a central role. So, the Romanian Government settled up the main priorities regarding the development of the small business sector: creating a business environment supportive of SME development and growth; developing SME competitiveness; improving SME access to financing; improving SME export performance; promoting an entrepreneurial culture and strengthening management performance. An intrinsic constituent of this process is represented by the access of the companies to the financing which must be made in correlation with the adopted strategy of development, because this development needs time and, necessarily, the existence of the financing sources. The choice of these sources depends on the financial structure of the enterprise, on its financial situation. So, enterprises can choose between the internal sources and the external sources, the difference between these both being represented by their stability, their independence, their cost and the priority of the owners of capital in the situation of a bankruptcy. Even if the internal sources are most often preferred by the managers because they assure the independence of the enterprise, these are not always sufficient. In that case, companies use the external financing sources which also have advantages as the deductibility of the expenses with the interests, what makes them less expensive.
    Keywords: SMEs; financing; credit banking; risks; Romania
    JEL: O16 G32 G21
    Date: 2008–11–27

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