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on Entrepreneurship |
| By: | Naude, Wim |
| Abstract: | It is often claimed that entrepreneurship is indispensable for economic growth and development. These claims are mostly generated by scholars working in the field of entrepreneurship andmanagement studies. In contrast, development economics scholars seem to be less concerned about entrepreneurship in the development process Who is right? I show that the arguments and evidence marshalled so far fails to convincingly show that entrepreneurship is a binding constraint on development in the poorest countries. In development economics institutional weakness, not entrepreneurship, is considered by many tbe a more binding constraint on development, especially over the long run. However, recent advances at the interface of entrepreneurship and development economics suggest that unpacking the .black box. nature ofinstitutions may benefit from incorporating an .entrepreneur.. Thus, even if entrepreneurship isnot a binding constraint on economic development, it may still be worthwhile to study entrepreneurship in development as it may improve our understanding of the real binding constraints. |
| Keywords: | entrepreneurship, development, development economics, institutions |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:2009-45&r=ent |
| By: | Michael Fritsch (Friedrich Schiller University Jena, School of Economics and Business Administration); Florian Noseleit (Friedrich Schiller University Jena, School of Economics and Business Administration) |
| Abstract: | We investigate the effects that regional start-up activity has on employment in new and in incumbent businesses. The analysis is performed for West German regions over the 1987-2002 period. It shows that the effects of new businesses on employment in the incumbents are significantly positive and that this indirect effect on incumbent employment leads to more jobs than what is created by the newcomers. We find that the effect of new business formation on incumbents is exclusively driven by start-ups that survive a certain period of time. We draw conclusions for policy and for further research. |
| Keywords: | Entrepreneurship, new business formation, regional development, direct and indirect effects |
| JEL: | L26 M13 O1 O18 R11 |
| Date: | 2009–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-081&r=ent |
| By: | Erkko Autio (Imperial College Business School); Zoltan Acs (George Mason University) |
| Abstract: | The purpose of this paper is to examine the existence of cross-level moderating effects between national appropriability conditions, individual level predictors and entrepreneurial growth aspirations. We test a multi-level model that connects the determinants of strategic resource allocation decisions at the individual level with the strength of the intellectual property rights regime at the national level. The results suggest that the strengths of the intellectual property regime will moderate negatively the relationship between an individual's education and her growth aspirations and moderate positively the relationship between an individual's income and her growth aspirations. The findings support claims that strategic entrepreneurial behavior cannot be fully understood without giving attention to the context in which those behaviors are observed. |
| Keywords: | strategic entrepreneurship, multi-level analysis, intellectual property protection, growth aspirations |
| JEL: | L26 J24 C3 M13 F5 |
| Date: | 2009–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-080&r=ent |
| By: | Soogwan Doh (George Mason University); Zoltan J. Acs (George Mason University) |
| Abstract: | This study explores the impact of social capital on innovation by constructing a more general measure of social capital indicator consisting of generalized and institutional trust, associational activities and civic norms. We test the hypothesis that social capital has a positive impact on innovation at the national level. After controlling for R&D expenditure and human capital there is a positive relationship between social capital and innovation. Social capital interacts with entrepreneurship and the strongest relationship is between associated activities and entrepreneurship. This is consistent with the need to build social relationships in today's networked economy. |
| Keywords: | human capital, social capital, entrepreneurship, innovation, generalized and institutional trust, civic norms, associational activities |
| JEL: | L26 J24 O31 O5 |
| Date: | 2009–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-082&r=ent |
| By: | Schertler, Andrea; Tykvová, Tereza |
| Abstract: | Cross-border investments represent a substantial share of venture capital activities. We use a new and comprehensive dataset on worldwide investments to analyze the internationalization of venture capital financing. Our results from the perspectives of (i) venture capitalists, (ii) portfolio companies, (iii) portfolio companies' countries and (iv) pairs of venture capitalists' and portfolio companies' countries suggest that some factors, such as viable stock markets, boost investments by domestic as well as by foreign venture capitalists. Therefore, our results are of interest not only to academics but also to policy makers who want to foster the growth of the local venture capital industry and local companies. |
| Keywords: | Venture capital,internationalization,macroeconomic factors |
| JEL: | F21 G24 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:09055&r=ent |
| By: | Sarah Kösters (Friedrich Schiller University of Jena, DFG RTG 1411 "The Economics of Innovative Change") |
| Abstract: | Start-up subsidies are a frequently employed policy instrument, the use of which is justified by alleged market failure resulting from positive external effects and capital market imperfections. This article investigates whether the allocation of subsidies reflects a policy focus on addressing these market failure occurrences. However, using survey data from the East German state of Thuringia, logistic regressions reveal a rather random subsidization of start-ups. Furthermore, propensity score matching suggests that subsidized start-ups would have survived and thrived in any case, an indication of deadweight losses of start-up subsidies. The analysis points to serious information problems arising when subsidies should be allocated to remedy market failure. Making the situation even more problematic is that failure to precisely target start-up subsidies is likely to result in market distortions and ineffectiveness. |
| Keywords: | Start-ups, Subsidies, Subsidy allocation, Policy evaluation |
| JEL: | L53 O38 H59 |
| Date: | 2009–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-083&r=ent |
| By: | Beatriz Armendariz (CERMi, Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels and Harvard University, University College London.) |
| Abstract: | Poverty is multidimensional. In its starkest form, the United Nations Development Annual Reports proxy poverty as combined low levels of income, health, and education. Microfinance, on the other hand, addresses directly the income dimension of poverty, and indirectly health and education. Specifically, microfinance is generally perceived as a tool for poverty reduction via self-employment for income-generating activities. Because the vast majority of poor households live in developing countries, poverty in industrialized countries is often neglected. This report focuses on microfinance as a tool for pulling disadvantaged individuals out of poverty in industrialized countries. In particular, this report contrasts the experience of two microfinance institutions, namely, that of Crédit Alternatif (Crédal) in Belgium with that of the Association pour le droit à l’initiative économique (Adie) in France. While both institutions started over twenty years ago, microfinance is far more active and outreach in per capita terms is much higher in the latter than in the former. First, we find similarities between the two institutions: Both target the socially excluded and unbanked, their presence in the capitals of Belgium and France is strong, both offer “guided” microloans, benefit from government support, and socially responsible investors. Second, we encounter very important differences: The distinct historical roots of Crédal and Adie, their different trajectories in terms of scale and scope, governance, loan size and maturity structures, average interest rates, geographic coverage, and their very different strategies for outreach growth. Third, we draw some lessons from Adie, which can potentially be replicated for microfinance outreach growth by Crédal, and by other microfinance institutions operating in Brussels and Belgium. Finally, this report concludes by extending the analysis to other urban areas of Europe, where strategic alliances with other financial institutions and the government, and marketing for guided loans and other financial products might prove key to microfinance expansion in industrialized countries. |
| Keywords: | poverty, microfinance, industrialized countries, Europe, social exclusion. |
| JEL: | F35 G21 G28 O54 O57 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:09-041&r=ent |