nep-ent New Economics Papers
on Entrepreneurship
Issue of 2009‒02‒07
six papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  2. The decision to innovate: Antecedents of opportunity exploitation in high tech small firms By Jeroen de Jong
  4. Short-run Birth and Death of U.S. Manufacturing Firms: 2000 - 2005 By Brown, Jason P.; Lambert, Dayton M.
  5. Relationship Lending and Firm Innovativeness By Giannetti, C.
  6. Taxation and Capital Structure: evidence from a transition economy By Leora Klapper; Konstantinos Tzioumis

  1. By: Mojica, Maribel; Gebremedhin, Tesfa; Schaeffer, Peter
    Keywords: Community/Rural/Urban Development,
    Date: 2009–01
  2. By: Jeroen de Jong
    Abstract: The current paper explores the antecedents of small business owners' decision to exploit identified opportunities for innovation. Drawing on social psychology, entrepreneurship and organizational behavior literature three potential antecedents are proposed: attitude towards the opportunity, subjective norms of close ties, and perceived behavioral control. It is hypothesized that each of these constructs correlates with the decision to innovate. Drawing on multiple-source survey data of 160 high tech small business owners in the Netherlands, it is found that subjective norms and perceived behavioral control are positively related to the decision to innovate. Moreover, a three-way interaction is estimated and confirmed, suggesting that when all antecedents are simultaneously present, opportunity exploitation is significantly more likely. Implications for practice and future research are discussed.
    Date: 2009–02–02
    Abstract: RESUMEN En el marco de una investigación que tenía como objetivo fundamental profundizar sobre la estructura del proceso decisorio de empresarios exitosos que no poseen formación universitaria, se generaron resultados parciales sobre las características de personalidad de los mismos, las cuales fueron obtenidas a través de un estudio cualitativo del contexto individual de los empresarios apoyado en una trama metodológica que tuvo como protagonistas a la hermenéutica, la etnometodología y las historias de vida. En una investigación posterior orientada hacia empresarios exitosos colombianos, sin formación universitaria, ubicados en el Departamento del Norte de Santander, se pudo determinar características de personalidad propias de éstos utilizando la misma trama metódica. La intención de este artículo es comparar las características de personalidad de ambos grupos para concluir sobre los resultados encontrados a fin de determinar semejanzas y diferencias significativas que puedan aportar a las teorías que enfocan estos aspectos. ABSTRACT As part of an investigation that aimed to deepen on the fundamental structure of decision-making process of successful entrepreneurs who do not have a university education, partial results were generated on the characteristics of the same personality, which were obtained through a qualitative study context of individual entrepreneurs who relied on a plot that had methodological as protagonists hermeneutics, etnometodología and life history. In a subsequent investigation oriented entrepreneurs successful Colombians, without a university education, located in the Department of Norte de Santander, was identified characteristics of their own personality using the same methodical plot. The intention of this article is to compare the characteristics of personality from both groups to conclude on the results found.
    Date: 2008–05–29
  4. By: Brown, Jason P.; Lambert, Dayton M.
    Abstract: Attracting manufacturing investment remains a viable regional development policy. Previous research in the location literature has informed policymakers which factors are most important for attracting new firm investment. Far less is known about the dynamics of firm death and the possible interaction with firm birth. A conceptual model of county-level investment in the U.S. manufacturing sector is developed from location theory and subsequent literature. Specifically, we test the relative importance of location factors influencing firm investment, and if these factors influence firm birth and death differently. Local factors include labor quality, availability, and cost, market conditions, agglomeration due to localization and urbanization economies, infrastructure, and fiscal policy. This study covers the time period 2000 to 2004 for U.S. counties in the lower 48 states. Firm data are from the U.S. Census Bureau’s Dynamic Firm Data Series, which links establishments across space and time. Regional adjustment models are used to show how ceteris paribus changes in location factors affect the birth and death rates in a county.
    Keywords: location factors, manufacturing, creative destruction, Community/Rural/Urban Development, L60, R11, R12,
    Date: 2009
  5. By: Giannetti, C. (Tilburg University, Center for Economic Research)
    Abstract: This study investigates the effects of relationship lending on firm innovativeness using a panel of Italian manufacturing firms. In order to disentangle the impact of bank ties on the discovery phase from that in the introduction phase of new technologies, the analysis proceeds in two steps, estimating two distinct equations for each phase. As there are conflicting theoretical predictions on the effects of the various sources of funding in the different stages of the innovative process, this study provides results for small and high-tech firms, so as to control for firm heterogeneity, relying on both cross-section and panel data techniques. Results suggest that for small firms, banks do not carry out a sophisticated intervention at the stage of development of new technologies, playing their traditional role of financing investments of constrained firms. Differently, relationship banks do play an important role in both phases for high-tech firms.
    Keywords: Credit relationship;external financing;bank competition.
    JEL: C34 G21 O31
    Date: 2009
  6. By: Leora Klapper; Konstantinos Tzioumis
    Abstract: We examine the effect of taxation on financing policy using the corporate tax reform in 2001 in Croatia as a natural experiment. Since the extant literature on tax effects on capital structure studies listed firms in developed countries, it is worth investigating whether the same results apply to privately-held, small and medium sized firms (SMEs) in transition economies. The findings provide significant evidence that lower taxes affected the capital structure of Croatian firms, which resulted in increased equity levels and decreased long-term debt levels. We also find that smaller and more profitable firms were more likely to reduce their debt levels. These findings are consistent with the trade-off theory of capital structure, which suggests that lower taxes decrease the incentive to hold debt due to decreasing interest tax deductibility.
    Keywords: Capital structure; Taxation; Transition Economies.
    Date: 2008–07

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