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on Entrepreneurship |
| By: | Alessandro Rosiello; Morris Teubal; Gil Avnimelech |
| Abstract: | We compare some of the policies that have been attempted in Europe (UK/Scotland) and Israel over the past fifteen years to elaborate a new Systems Evolutionary (SE) framework for rethinking VC policy and related ITP. We argue that this perspective is useful for both real world (‘positive’) analysis and policy (‘normative’) analys is. Our SE framework is shaped by (i) a multidimensional view of VC; (ii) strong between VC, VC policy and the development of EHTCs; and (iii) a strategic approach to policy. In contrast, many VC policies in Europe up to and including the 1990s took a ‘static’ financial view of VC that focused on ‘bridging existng early phase finance gaps of innovative companies’ rather than creating of a new mechanism to assure the timely growth of EHTCs. We aim to present the new framework rather than to provide specific recommendations. The main conclusion is that the success of VC policies depend on factors such as the phase of evolution of (i) VC or related innovation finance organizations; (ii) the underlying segment of start up companies and of high tech industries; (iii) the specific country/region institutional setting. While in some contexts it may be worth considering the targeting of a new VC industry/market (and associated EHTC) in others the focus of policy should center in improving pre-emergence conditions. More specifically it may be, given that VC searches for ‘investment ready opportunities’, that ITP should, in many contexts, precede VC policies. Another key conclusion is that implementing this perspective necessitates the creation of a strategic level of policy, with a view of specifying a set of strategic priorities for Scie nce, Technology, and Innovation, priorities that should precede rather than follow policy design and implementation. A major challenge is to extend the present framework that was initially based on VCs oriented towards ICT to LS. |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:21-2008&r=ent |
| By: | Anna Lejpras |
| Abstract: | This paper empirically investigates the antecedents of internationalization of SMEs, focusing on differences between the manufacturing and service sectors. Specifically, employing a bivariate probit model based on survey data of approximately 3,900 East German firms, I analyze which firm-related and external factors affect a firm's decision to export and/or relocate production or other operations abroad. Generally, I find that SMEs from the manufacturing sector do more exporting than service firms. The results reveal that size, having main competitors located abroad, and introducing a novel product all are significantly positively related to the internationalization of SMEs regardless of industry affiliation. However, manufacturing firms in the high-tech sector are far more likely to be engaged in internationalization activity than are service firms, regardless of whether the latter are high-tech. Locational conditions and cooperation activities are generally less important for internationalization of service firms, too, compared to their manufacturing counterparts. |
| Keywords: | Internationalization, Service, Manufacturing, Bivariate Probit Model |
| JEL: | M20 L25 R30 O30 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp886&r=ent |
| By: | Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | This paper describes a version of Lucas’ span of control model, in which managers of younger and smaller firms are less able than managers of older firms to provide precise instructions to employees. Employees differ in their propensity to follow instructions, and those least likely to follow instructions are said to be high-a types. In equilibrium, younger [older] firms employ high-a [low-a] types, and wages exhibit a U-shaped relationship in which the lowest wages are paid by firms of intermediate age. A natural extension of the model, in which employee ability also varies, is developed to examine the effect of employer age and size on entry into self-employment. |
| Keywords: | Management, firm age and wages, self-employment |
| JEL: | J24 J31 L26 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0908&r=ent |
| By: | Nadine Levratto; Evelyne Serverin |
| Abstract: | The modernization of the economy Act voted in August 4th, 2008 aimed at introducing a new statute of self-entrepreneur, the auto-entrepreneur in French, in order to support an economic policy combining fight against unemployment, search for points of growth and improvement of the purchasing power. The matter of this article is to open the debate about the model of the self-entrepreneur embedded in this new law, by adopting a double point of view: legal as far as the labor is concerned and economic too since it deals with the model of the firm supported by this view. The first section discusses the proclamation of independence of the self-entrepreneur, by highlighting the existence of multiple legal dependences, within the framework of a plurality of jobs on the one hand, and within the exercise of the productive activity itself on the other hand. The second section deals with the contradictions that exist between the legal conception of self-employer on one side, and the growth expectations of the companies, and the entrepreneurship theories on the other. |
| Keywords: | Self-employment, firm theory, labor contract, multiple jobs |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2009-20&r=ent |
| By: | Gérard Dokou (labrii, ULCO) |
| Abstract: | En termes de développement entrepreneurial, les seules mises à disposition de moyens techniques, humains et financiers conséquents ne suffisent plus à créer une dynamique locale, au mieux elles accompagnent un équilibre précaire. Pour se développer, dans un contexte d’une économie mondiale, il ne suffit pas d’accumuler de la terre, du travail et du capital. Mais il faut aussi stimuler la qualification, le partenariat et les investissements en organisation. Ces facteurs représentent la capacité d’un territoire à produire son propre développement. Par rapport au modèle de développement impulsé de l’extérieur qui souvent débouche sur des problématiques de déplacements des activités, il est primordial qu’un territoire stimule la dynamique entrepreneuriale qui part de l’intérieur et tire profit des réseaux de ressources locales à partir d’un dispositif adapté. In terms of entrepreneurial development, making available technical, human and financial means are not anymore sufficient tools to create a local dynamics; at best, they accompany a precarious equilibrium. In a context of a world economy, development needs more than accumulating land, labour and capital. In fact, it is crucial to stimulate qualification, partnership and investment in organisation. These factors represent the capability of a territory to produce its own development. Compared to the development model impelled from the outside, and which often leads to activities transfer problems, it is primordial that a territory stimulates the entrepreneurial dynamics which stems from the inside and takes advantage of local resources networks through an adapted device. |
| Keywords: | Territory attractiveness, University entrepreneurship, Young students |
| JEL: | O10 L00 M12 L26 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:202&r=ent |
| By: | Sophie BOUTILLIER,; Claude FOURNIER (labrii, ULCO) |
| Abstract: | Nous exposons dans ce texte notre méthodologie pour l’étude de l’entreprise artisanale ou de la très petite entreprise. Cette méthodologie est construite sur deux binômes grande entreprise / entreprise artisanale et entrepreneur générique / entrepreneur-artisan. L’économie des pays industriels est fondée sur la grande entreprise (entreprise fordiste), et d’un autre côté l’analyse de l’économie industrielle privilégie les économies d’échelle et la production de masse. Aussi la grande entreprise est notre point de repère à partir duquel nous analysons l’entreprise artisanale en raison de son poids économique. D’un autre côté, avec le binôme entrepreneur générique / entrepreneur artisan nous analysons l’entrepreneur-artisan comme l’entrepreneur générique. L’entrepreneur-artisan (contrairement au dirigeant de la grande entreprise) cumule les fonctions de propriétaire et de gestionnaire. La présentation de cette méthodologie est illustrée par l’étude de deux sujets : les valeurs sociales et culturelles de l’entrepreneur-artisan et le statut juridique du conjoint dans l’entreprise artisanale. We present in this paper our methodology for analysing small-scale and very small-scale enterprises. Our strategy presents a bifurcation, with large-scale (Fordist) enterprises juxtaposed against small-scale and very-small scale enterprises. Because the economies of industrial countries tend to be prominently represented by large-scale enterprises engaged in mass production, small and very small-scale enterprises within those economies tend to be differentiated on the basis of capitalization and management differences. Within this context, two distinguishing characteristics of small and very small-scale enterprises become prominent features of our analysis: enterprise legal status and spousal status of the entrepreneur. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:205&r=ent |
| By: | Bhattacharyya, Surajit; Saxena, Arunima |
| Abstract: | The Law of Proportionate Effect depicts that firm’s growth rate is independent of its size; Gibrat (1931). Some of the existing studies support the Gibrat’s Law: Hymer and Pashigian (1962), Mansfield (1962), among others. However, Gale (1972), Shepherd (1972) and recently Punnose (2008) report a positive relationship, while Haines (1970) and Evans (1987) observe an inverse relationship between firm size and profitability. Baumol (1959) opined that rate of return increases with firm size. Therefore, the extant empirical research on the firm size – performance relationship provides inconclusive results. Manufacturing firms’ data from the Steel and Electrical & Electronics (EE) industries are taken from CMIE Prowess database for the period 2004-05 to 2006-07. Results show that firm size affects current profitability: positively in the Steel and negatively in the other. Some more determinants of firm performance are explored. Retained earnings have negative impact on profitability in Steel but, positive in EE. Bank credit is found negatively significant in both the industries. Market share of firms and industry concentration ratio (CR4) although inconsistently are the other significant determinants of firms’ performance. Firms’ market value (Q) is found positively significant for both the industries. This signifies that high market value of firms reflects their goodwill, knowledge stock and prospective investment opportunities which positively influence the firms’ performance. The significance of having high brand equity which the corporate firms thrive for becomes apparent. Interestingly, the impact of size is affected by firms’ market value: firm size positively affects profitability both in Steel and EE. Furthermore, ineffectiveness of Law of Proportionate Effect is strengthened when tested over the combined data of Steel and EE firms. The short-run dynamism in firm performance is also impacted by presence of Tobin’s Q. |
| Keywords: | Gibrat’s law, firm size, profitability, Tobin’s Q, manufacturing firms. |
| JEL: | L6 M21 |
| Date: | 2009–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13029&r=ent |