nep-ent New Economics Papers
on Entrepreneurship
Issue of 2009‒06‒03
seven papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Intrapreneurship or Entrepreneurship? By Parker, Simon C.
  2. On Growth and Development. By Mina Baliamoune-Lutz
  3. Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment : Evidence from German Micro Data By Jörn Block; Philipp Sandner
  4. What makes a 'jack-of-all-trades'? By Oberschachtsiek, Dirk
  5. The Capital Structure of Young Firms and the Working Experience of New Entrepreneurs By Enrico Colombatto; Arie Melnik
  6. Coming to America: Does Immigrant's Home Country Economic Status Impact the Probability of Self-Employment in the U.S.? By Uwaifo Oyelere, Ruth; Belton, Willie
  7. Networks and innovation: the role of social assets in explaining firms' innovative capacity By Uwe Cantner; Elisa Conti; Andreas Meder

  1. By: Parker, Simon C. (University of Western Ontario)
    Abstract: I explore the factors that determine whether new business opportunities are exploited by starting a new venture for an employer ('nascent intrapreneurship') or independently ('nascent entrepreneurship'). Analysis of a nationally representative sample of American adults gathered in 2005-06 uncovers systematic differences between the drivers of nascent entrepreneurship and nascent intrapreneurship. Nascent entrepreneurs tend to leverage their general human capital and social ties to organize ventures which sell directly to customers, whereas intrapreneurs disproportionately commercialize unique new opportunities which sell to other businesses. Implications of the findings are discussed.
    Keywords: nascent entrepreneurship, intrapreneurship, sample selection
    JEL: L26 M13
    Date: 2009–05
  2. By: Mina Baliamoune-Lutz
    Abstract: We examines how institutional and policy reforms affect the relationship between entreprene urship and growth. We perform Arellano-Bond GMM estimations on annual data (over the period 1990-2002) from a large group of developing countries and focus in particular on the interplay between policy and institutional reforms and entrepreneurship. We find that the joint effect of trade reform and entrepreneurship on growth is negative, suggesting that trade reform diminishes the positive effects of entrepreneurial ability on growth, while the joint effect of financial sector reform and entrepreneurship has a non- linear impact on growth. Financial sector reforms enhance the growth effects of entrepreneurship at initial levels and diminish it a high levels of reform. In addition, we find that the interplay of institutional reform and entrepreneurship does not seem to matter for the growth effects of entrepreneurship.
    Keywords: growth, entrepreneurship, institutions, policy reform
    JEL: E6 O1 O4
    Date: 2008–06
  3. By: Jörn Block; Philipp Sandner
    Abstract: Using data from the German Socio-Economic Panel Study (GSOEP), we analyze whether necessity entrepreneurs differ from opportunity entrepreneurs in terms of self-employment duration. Using univariate statistics, we find that opportunity entrepreneurs remain in self-employment longer than necessity entrepreneurs. However, after controlling for the entrepreneurs¿ education in the professional area where they start their venture, this effect is no longer significant. We therefore conclude that the difference observed is not an original effect but rather is due to selection. We then go on to discuss the implications of our findings for entrepreneurship-policy making, and give suggestions to improve governmental start-up programs.
    Keywords: Self-employment; Firm survival; Necessity entrepreneurs; Opportunity entrepreneurs; Hazard rates, GSOEP
    JEL: J23 J24 M13 C41
    Date: 2009
  4. By: Oberschachtsiek, Dirk
    Abstract: "This paper addresses the 'Jack-of-all-Trades' hypothesis, which presumes that it is individuals' variety of competencies/experience that drives entrepreneurship instead of their level of productivity (Lazear, 2005). The analysis focuses on two related dimensions of this variety argument: taste for variety (identified due to desire) and investment in ability (identified due to competence). First, the results show that it is important to distinguish between discrete and high level investments in the variety of experience. For instance, a high level of investment - which defines a 'Jack-of-all-Trades' - is less correlated with formal schooling than discrete investments. Second, the results indicate that both taste (desire) and ability (competence) correlate with the variety of experience, but the nature of the correlation differs. Particularly for males, the 'Jack-of-all-Trades'-hypothesis predominately relates to competence and not to desire." (author's abstract, IAB-Doku) ((en))
    Keywords: Unternehmenserfolg - Determinanten, Humankapital, unternehmerische Qualifikation, Fachkenntnisse, berufliche Qualifikation, Berufserfahrung, Kompetenz, Geschlechterverteilung, Lebensalter
    JEL: M13 J23 J24
    Date: 2009–06–04
  5. By: Enrico Colombatto; Arie Melnik
    Abstract: We use a simple model to analyze the funding stage of new firms and characterize the directional causality between the ir capital structure and the length of prior working experience that entrepreneurs possess. In this light, we test a set of predictions by considering a sample of firms founded by Italian entrepreneurs in the period 1992-2004. We obtain three main results. First, we confirm the evidence presented in the literature, whereby the size of the firm has a significant effect on capital structure. Second, we find that previous working experiences of entrepreneurs in full-time employment (before founding a new firm) have a positive impact on the debt-to-asset ratio of newly founded firms. Third, we show that firms with access to subsidized government debt are able to increase the ir share of debt in total liabilities, even when the size of the subsidy is small.
    JEL: M13 L26 G32
    Date: 2008–06
  6. By: Uwaifo Oyelere, Ruth (Georgia Tech); Belton, Willie (Georgia Tech)
    Abstract: This paper examines the impact of home country economic status on immigrant self-employment probability in the U.S. We estimate a probability model and find that, consistent across race, immigrants from developed countries are more likely to be self-employed in the U.S than are immigrants from developing countries. This result is unexpected given previous research which suggests that immigrants from countries with high levels of self-employment tend to be more involved in self-employment in the U.S. Developing countries on average have higher self-employment rates than do developed countries but our research shows that immigrants from developing countries have similar or lower self-employment probabilities relative to native born White Americans, whereas immigrant from developed countries have significantly higher self-employment probabilities relative to native born White Americans. We provide two potential explanations for this result. First, immigrants from developed countries may indeed have more and better access to start-up capital from their country of origin. Second, institutional arrangements in the developed world may be similar across countries allowing immigrants from developed countries to have an informational advantage over immigrants from developing countries.
    Keywords: self-employment, immigrant, home country, entrepreneurship
    JEL: J21 E24 J61 J40
    Date: 2009–05
  7. By: Uwe Cantner (Friedrich Schiller University Jena, Department of Economics and Business Adminstration); Elisa Conti (IULM University, Department of Economics and Marketing); Andreas Meder (Graduate College EIC, Friedrich Schiller University Jena and Thuringian Ministry of Economic Affairs)
    Abstract: The claim of a positive association between a firm's social assets and its innovative capacity is a widely debated topic in the literature. Although controversial, such an argument has informed recent innovation policy across Germany, increasingly directed to cluster formation. In the light of the growing attention and financial efforts that cluster-based innovation policies are receiving, it is worth answering two main questions. First, are firms with a relatively high level of social capital likely to be more innovative? Second, do companies pursuing innovation in partnership innovate more? This paper empirically answers these questions by exploring a cross-sectoral sample of 248 firms based in the Jena region. On the one hand, the extent to which a firm is integrated in its community life does not contribute to an explanation of its innovative performance. On the other hand, directed cooperation with the specific goal of innovating shows a positive impact on innovative performance. However, the correlation between the extent of the network of co-innovators and firms' innovative capacity presents an inverted U-shaped relation: there is a threshold in the number of co-innovators justified by the costs of innovating by interacting. A policy lesson can be drawn from these findings: cluster-based policies are to be treated with caution as firms face costs of networking and not merely benefits.
    Keywords: innovation, social capital, innovation network, innovation cooperation, cluster-based policy.
    JEL: O33 L14 R5
    Date: 2009–06–02

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