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on Entrepreneurship |
| By: | André van Stel; Roy Thurik; Sander Wennekers; Martin Carree |
| Abstract: | Following a centuries-long decline in the rate of self-employment, a remarkable discontinuity in this downward trend since the 1970s and 1980s for many advanced economies seems beyond doubt. In some of these countries we even see a downright and ongoing revival of selfemployment. At the same time, cross-sectional analysis shows a significant U-shaped relationship between start-up rates of new enterprises and levels of economic development. In this paper we provide an overview of the empirical evidence concerning the relation between entrepreneurship and economic development. We also argue that the apparent U-shaped relationship is based on at least two 'revolutions'. If we distinguish between solo self-employed at the lower end of the entrepreneurship spectrum, and ambitious and/or innovative entrepreneurs at the upper end, many advanced economies show a revival at both ends. Policymakers should be aware of both developments and can do much to facilitate each of them. |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h200824&r=ent |
| By: | Jana Bruder (University of Rostock); Solvig Räthke-Döppner (University of Rostock) |
| Abstract: | In Germany self-employment among foreigners increased significantly in recent years. We study the geographical distribution of ethnic minority self-employment in Germany and find determinants for variations in start-up activities across 440 administrative German regions. We analyze the Statistic of Business Notifications and provide an extensive overview about start-up activities of foreigners in the time period 2001-2005. Moreover we apply a count data model on the number of business registrations in a particular region. We find that business foundations by foreigners are mainly enhanced by population growth, a higher population density and a large fraction of foreigners on overall population. |
| Keywords: | Ethnic Minority Business, Entrepreneurship, Germany, Count Data Model |
| JEL: | L26 M13 C21 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ros:wpaper:100&r=ent |
| By: | Knockaert, M.; Clarysse, B.; Wright, M.; Lockett, A. (Vlerick Leuven Gent Management School) |
| Abstract: | In this paper, we study which VC firm and investment manager related factors drive the VC’s attitude towards academic spin-out investing by taking an agency and human capital perspective. In order to do so, we use a unique hand-collected dataset involving 68 investment managers working at early stage VCs in Europe who were interviewed and provided us with information on the fund characteristics and their human capital. First, the results show that academic spin-out investors work to a large extent at publicly funded VCs that often engage in a very hands-on type of post-investment behaviour. Second, the results show that human capital is associated with the willingness of the investment manager to invest in academic spin-outs. Investment managers that had worked in an academic environment and thus have similar human capital compared to the academic founders were more inclined to invest in academic spin-outs. Other specific human capital, such as technical education, and general human capital were not found to be associated with the investment manager’s interest in academic spin-out investing, except for the amount of entrepreneurial experience that negatively affected the attitude towards academic spin-outs. |
| Date: | 2008–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2008-22&r=ent |
| By: | Liliana Doganova (CSI - Centre de sociologie de l'innovation - CNRS : UMR7185 - Mines-ParisTech); Marie Renault (CSI - Centre de sociologie de l'innovation - CNRS : UMR7185 - Mines-ParisTech) |
| Abstract: | Analyzes the uses and functions of business models through original, qualitative case studies focused on research-based spin-offs. |
| Keywords: | Business models; spin-offs; innovation; commercialization; calculation; exploration; R&D; entrepreneurship |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00347615_v1&r=ent |
| By: | Neumark, David (University of California, Irvine); Wall, Brandon (Stanford University); Zhang, Junfu (Clark University) |
| Abstract: | We use a new database, the National Establishment Time Series (NETS), to revisit the debate about the role of small businesses in job creation. Birch (e.g., 1987) argued that small firms are the most important source of job creation in the U.S. economy. But Davis et al. (1996a) argued that this conclusion was flawed, and based on improved methods and using data for the manufacturing sector, they concluded that there was no relationship between establishment size and net job creation. Using the NETS data, we examine evidence for the overall economy, as well as for different sectors. The results indicate that small firms and small establishments create more jobs, on net, although the difference is much smaller than what is suggested by Birch's methods. Moreover, in the recent period we study, a negative relationship between establishment size and job creation holds for both the manufacturing and services sectors. |
| Keywords: | job creation, job destruction, small businesses |
| JEL: | J20 L25 L53 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3888&r=ent |
| By: | Caliendo, Marco (IZA); Uhlendorff, Arne (IZA) |
| Abstract: | This paper analyzes the mobility between self-employment, wage employment and non-employment. Using data for men in West Germany, we find strong true state dependence in all three states. Moreover, compared to wage employment, non-employment increases the probability of self-employment significantly, and self-employment goes along with a higher risk of future non-employment. |
| Keywords: | self-employment, state dependence, labor market dynamics, unemployment |
| JEL: | J64 L26 C23 C25 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3900&r=ent |
| By: | Viale, Thierry |
| Abstract: | The "social kill" (Fligstein, 1997 and 2001) attributed to social entrepreneurs is ont sufficiently explicit as regards their dispositions for engaging in actions of change. After placing the status of change in the context of institutionalist literature, the author intend to show how, with the help of Pierre Bourdieu's theory of field and habitus, it is possible to develop what he call an institutional portfolio allowing a micro-individual analysis of the capacity of some individuals to undertake institutional transformations without losing sight of the evolution - at a macro-analytical level - of the structure of the field in which these individuals operate. In this respect, the author intend to contribute to the various attempts at overcoming the paradox of the "embedded agency" and to give a more precise account of institutional change. |
| Keywords: | neo-institutionalism; institutional entrepreneurship; field; habitus; resources; institutional portfolio |
| JEL: | A14 L22 L26 |
| Date: | 2008–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:0906&r=ent |
| By: | Alex Coad; Werner Hölzl (WIFO) |
| Abstract: | This paper studies the serial autocorrelation of annual growth rates in employment for selected Austrian service industries over a 30-year period using quantile regression techniques. The autocorrelation of growth rates provides important information on firms growth processes. We find that the growth patterns of micro firms are strikingly different from the growth patterns of small, medium-sized and larger firms. First, we do find a positive dependency of growth on size for growing micro firms, while this relationship is negative for the other size groups. Second, growing micro firms are subject to negative autocorrelation of annual growth rates making sustained growth a very rate occurrence, while larger growing firms usually display a positive autocorrelation suggesting that high growth episodes of larger firms stretch over a longer time horizon. This indicates that non-convex adjustment costs leading to lumpy growth are much more important for micro firms than for large firms. Furthermore, we find that the autocorrelation patterns are asymmetric with regard to decline and growth. |
| Keywords: | serial correlation, firm growth, service sector, quantile regression, Austria |
| Date: | 2008–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2008:i:332&r=ent |
| By: | Rammer, Christian; Schmiele, Anja |
| Abstract: | This paper investigates the drivers and effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms covering the period 2002-2007. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovationrelated location advantages for an SME’s decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. Fierce home market competition turns out to be rather an obstacle than a driver. High innovation costs stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market while there are no negative effects on home market growth from shifting production of new products abroad. |
| Keywords: | Internationalisation of Innovation, Globalisation, SMEs, Effects of Innovation, Absorptive Capacities, Market Structure |
| JEL: | F23 L22 L25 O31 O32 O47 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7442&r=ent |
| By: | Galo Nuño Barrau (Research Department, Banco Bilbao Vizcaya Argentaria) |
| Abstract: | Technology shocks are at the core of real business cycle models. Although tra- ditionaly described as exogenous, technology shocks can be the result of the endoge- nous decisions by economic agents under uncertainty. To demostrate it, in this paper I develop a dynamic stochastic general equilibrium model that incorporates Schum- peterian endogenous growth features that affect the convergence to the steady-state. In this model, technology advances are due to the introduction of vertical innovations by entrepreneurs who try to become monopolists in different economic sectors. En- trepreneurs? ventures are ?nanced by banks. The model is solved and estimated by bayesian methods for the United States economy to compute the value of some of its structural parameters. Results show that for a country close to the technology fron- tier, the presented innovation mechanism is roughly equivalent in terms of volatilies, correlations and impulse responses to technology shocks in real business cycle mod- els. Therefore, the behavior of the productivity can be due not only to technology considerations but also to ?nancial and entrepreneurial reasons. |
| JEL: | C50 E27 O40 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:iei:wpaper:0805&r=ent |
| By: | Heger, Diana; Kraft, Kornelius |
| Abstract: | Barriers to entry are regarded as major impediments to the working of markets. Entry must not necessarily actually take place - the perceived threat of entry may encourage incumbent firms to behave as if they are in a competitive market, even if they are not. We present empirical evidence on effects of perceived threat of entry on profitability. Using information from managers about how they assess the existence of entry barriers a strong impact of these assessments on profitability is confirmed. The number and the relative size of competitors also exert considerable effects. We find no statistically significant relation between the perceived threat of entry and the actual number of firms if the size of the relevant market is taken into account. |
| Keywords: | Barriers to Entry, Profitability, Discrete Regression Models |
| JEL: | C25 L13 L25 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7414&r=ent |
| By: | Guido Buenstorf; Matthias Geissler |
| Abstract: | Entry into an industry often clusters in regions where the industry is already concentrated, which is suggestive of agglomeration economies. Regional public research activities may exert another attracting force on entrants into science-based industries. Empirically these proximity effects are confounded by other influences on where entrants originate and locate. This paper begins to disentangle the effects of agglomeration, public research, and the supply of capable entrants for the German laser industry. Our findings indicate that the industry’s geography was shaped by the local availability of potential entrants rather than localization economies. The impact of public research increased over time. |
| Keywords: | Industry clusters, agglomeration economies, public research, entry, heritage Length 29 pages |
| JEL: | L26 M13 R30 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2008-14&r=ent |
| By: | Czarnitzki, Dirk; Etro, Federico Gabriele; Kraft, Kornelius |
| Abstract: | We develop a simple model of competition for the market that shows that, contrary to the Arrow view, endogenous entry threat in a market induces the average firm to invest less in R&D and the incumbent leader to invest more. We test these predictions with a Tobit model based on a unique dataset and survey for the German manufacturing sector (the Mannheim Innovation Panel). We confirm the empirical validity of our predictions and perform a number of robustness test with instrumental variables. |
| Keywords: | R&D, Entry, Endogenous market structures, Leadership |
| JEL: | O31 O32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:7421&r=ent |