|
on Entrepreneurship |
| By: | Caliendo, Marco (IZA); Künn, Steffen (IZA) |
| Abstract: | Turning unemployment into self-employment has become an increasingly important part of active labor market policies (ALMP) in many OECD countries. Germany is a good example where the spending on start-up subsidies for the unemployed accounted for nearly 17% of the total spending on ALMP in 2004. In contrast to other programs – like vocational training, job creation schemes, or wage subsidies – the empirical evidence on the effectiveness of such schemes is still scarce; especially regarding long-term effects and effect heterogeneity. This paper aims to close this gap. We use administrative and survey data from a large sample of participants in two distinct start-up programs and a control group of unemployed individuals. We find that over 80% of participants are integrated in the labor market and have relatively high labor income five years after start-up. Additionally, participants are much more satisfied with their current occupational situation compared to previous jobs. Based on conditional propensity score matching methods we estimate the long-term effects of the programs against non-participation. Our results show that both programs are effective with respect to income and employment outcomes in the long-run. Moreover, we consider effect heterogeneity with respect to several dimensions and show that start-up subsidies for the unemployed tend to be most effective for disadvantaged groups in the labor market. |
| Keywords: | start-up subsidies, self-employment, evaluation, long-term effects, effect heterogeneity |
| JEL: | J68 C14 H43 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4790&r=ent |
| By: | TSUCHIYA Ryuichiro |
| Abstract: | Small firms are more likely to produce entrepreneurs than large firms. This study empirically examines a potential mechanism that might explain this phenomenon, observed in previous research, using Japanese survey data of employees planning to start businesses. The data contain information on employer, job, and personal characteristics and also indicates the reasons for starting the businesses. The results from a principal component analysis of various startup reasons identify four separate component factors that account for 70 percent of variance: a need for self-fulfillment, a need for flexibility in work schedule, a need to solve a career problem, and a need to secure a livelihood. I empirically examine the relationship between rating scores for these factors and the size of employers. The results from multivariate regression models indicate that the score for a need to solve a career problem was significantly higher for those working for small firms, while none of the other three factors are significantly different between employees of large and small firms. In addition, the results also suggest that the relationship between the need to solve a career problem and employment of small firms is associated with the tendency for middle managers. The implications of these findings for researchers and policy-makers are discussed. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10012&r=ent |
| By: | Kenneth P. Brevoort; John A. Holmes; John D. Wolken |
| Abstract: | In a seminal article on small business lending, Petersen & Rajan (2002) argue that technological changes have revolutionized small business lending markets, weakening the reliance of small businesses on local lenders and increasing geographic distances between firms and their credit suppliers. While their data only cover through 1993, they conjecture that the pace of change accelerated after 1993. Using the 1993, 1998, and 2003 Surveys of Small Business Finances (SSBFs), we test whether the distance changes identified by Petersen and Rajan continued or accelerated during the following decade. Using a novel application of Oaxaca-Blinder decomposition, we identify the extent to which specific observable characteristics are associated with distance changes and draw three conclusions. First, while distances increased between 1993 and 1998 at a faster rate than found by Petersen & Rajan, distance increases appear to have halted or possibly reversed between 1998 and 2003. Second, rather than increasing proportionally for all small firms, distance increases were uneven across firms over the decade, with higher credit quality firms and firms with more experienced ownership realizing greater gains in distance than other firms. Finally, distances increased faster at older firms and, regardless of firm age, increases in distance have only affected some product types, primarily those involving asset-back loans (including mortgages). For relationships that involved the provision of either lines of credit or multiple types of credit, distances increased very little or not at all during the decade. This analysis provides a detailed and nuanced view of how the market for small business credit has evolved during a period of rapid technological change. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2010-08&r=ent |
| By: | Feldmann, Horst |
| Abstract: | This paper finds that more readily available venture capital is likely to have lowered unemployment rates and raised employment rates in industrial countries over the period 1982 to 2003. More readily available venture capital is also likely to have lowered the share of long-term unemployed in the total number of unemployed. The magnitude of the effects appears to have been substantial. To measure access to venture capital, we use answers from surveys of senior business executives. We also employ a large number of control variables. Our regression results are robust to variations in specification and sample size. |
| Keywords: | employment; labor market; unemployment; venture capital |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:01/10&r=ent |
| By: | Coad, Alex |
| Abstract: | While several plots of the aggregate age distribution suggest that firm age is exponentially distributed, we find some departures from the exponential benchmark. At the lower tail, we find that very young establishments are more numerous than expected, but they face high exit hazards. At the upper tail, the oldest firms are older than the exponential would have predicted. Furthermore, the age distribution of international airline companies displays multimodality. Although we focused on departures from the exponential, we found that the exponential was a useful reference point and endorse it as an appropriate benchmark for future work on industrial structure. -- |
| Keywords: | Age distribution,exponential distribution,firm size distribution,survival |
| JEL: | L20 L25 L11 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201012&r=ent |
| By: | Popovic, Blazenka S.; Paunovic, Tamara Z.; Maletic, Zoran M. |
| Abstract: | Agriculture as the economic sector is an important factor of economic development of Serbia and an important part of economic structure. Serbia has agrarian resources (land, climate and water) that are not used enough, and therefore, represent a significant economic potential for further development. Vojvodina is the best-developed economic region of the Republic of Serbia, with dominant role of agricultural production. The main economic potential of Vojvodina development is, among other things, the strengthening and improvement of agriculture in the private sector. Economic potential of agriculture impose the need to analyze this situation in the field of small and medium sized entrepreneurship as the bearer of the future development of agriculture in Vojvodina. Cluster analysis is a method that will determine how to group communes in Vojvodina according to the level of development of small and medium-sized enterprises in the field of agriculture, and thus get an insight into the current state of development of this sector of agriculture, as well as point out the possibilities for the future development of SMEs in agribusiness of Vojvodina. |
| Keywords: | Agricultural production, Small and medium sized enterprises (SMEs), Clusters analysis, Clustering of communes in Vojvodina, Agribusiness, Community/Rural/Urban Development, Public Economics, |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ea113a:57643&r=ent |
| By: | Caterina Giannetti; Nicola Jentzsch; Giancarlo Spagnolo |
| Abstract: | Information asymmetries can severely limit cross-border border expansion of banks. When a bank enters a new market, it has incomplete information about potential new clients. Such asymmetries are reduced by credit registers, which distribute financial data on bank clients. We investigate the interaction of credit registers and bank entry modes (in form of branching and M&A) by using a new set of time series cross-section data for the EU-27 countries. We study how the presence of public and private credit registers and the type of information exchanged affect bank entry modes during the period 1990-2007. Our analysis shows that the existence of both types of registers increases the share of branching in the overall entries. Additionally, the establishment of public registers reduces concentration ratios, and some banking competition indicators (such as overhead costs/assets). The introduction of a private credit bureau, on the other hand, has no effect on concentration ratios, but positively contributes to competition (by decreasing interest rate margins). This suggests that credit registers facilitate direct entry through a reduction of information asymmetries, which in turn intensifies competition. |
| Keywords: | credit registries, foreign entry, asymmetric information |
| JEL: | F37 G21 G34 L13 O16 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp980&r=ent |