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on Entrepreneurship |
| By: | Estrin, S.; Korosteleva, J.; Mickiewicz, T. |
| Abstract: | This paper contrasts the determinants of entrepreneurial entry and high-growth aspiration entrepreneurship. Using the Global Entrepreneurship Monitor (GEM) surveys for 42 countries over the period 1998-2005, we analyse how institutional environment and entrepreneurial characteristics affect individual decisions to become entrepreneurs and aspirations to set up high-growth ventures. We find that institutions exert different effects on entrepreneurial entry and on the individual choice to launch high-growth aspiration projects. In particular, a strong property rights system is important for high-growth aspiration entrepreneurship, but has less pronounced effects for entrepreneurial entry. The availability of finance and the fiscal burden matter for both. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ner:ucllon:http://eprints.ucl.ac.uk/17484/&r=ent |
| By: | Fazio, G.; Mickiewicz, T. |
| Abstract: | We analyse the determinants of high growth expectations entrepreneurial entry (HGE) using individual data drawn on working age population, based on the Global Entrepreneurship Monitor (GEM) surveys for the 1998-2004 period. Individual level explanatory variables are combined with country-level factors. Our results suggest that availability of venture capital and intellectual proper rights protection are strong predictors of HGE. In addition, we also find that innovative start-ups are associated with highest growth expectations in countries with extensive supply of venture capital and strongest intellectual property rights. Once we introduce venture capital, we detect no significant effects of other elements of financial systems on high-powered entry. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:ner:ucllon:http://eprints.ucl.ac.uk/19251/&r=ent |
| By: | Estrin, S.; Mickiewicz, T. |
| Abstract: | The transition economies have lower rates of entrepreneurship than are observed in most developed and developing market economies. The difference is even more marked in the countries of the former Soviet Union than those of Central and Eastern Europe. We link these differences partly with the legacy of communist planning, which needs to be replaced with formal market-supporting institutions. But many of these developments have now taken place, yet entrepreneurial activity still remains low in many places. To analyse this longer term issue, we highlight the necessarily slow pace of development of new informal institutions and the corresponding social attitudes, notably rebuilding the generalised trust. We argue that changes are even slower in the former Soviet Union than Central and Eastern Europe because communist rule was much longer, leading to a lack of institutional memory. We posit that changes in informal institutions may be therefore delayed until after full generational change. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:ner:ucllon:http://eprints.ucl.ac.uk/19438/&r=ent |
| By: | Aminda do Paço (Departamento de Gestão e Economia, Universidade da Beira Interior); João Ferreira, Mário Raposo, Ricardo G. Rodrigues e Anabela Dinis (Departamento de Gestão e Economia, Universidade da Beira Interior) |
| Abstract: | It is assumed that entrepreneurship education encourage the growth of new businesses, exploiting the entrepreneurial spirit within higher education sector. Additionally, entrepreneurship higher education is supposed to play a relevant role in the development of enterprising citizens and in the development regions through an ongoing process of knowledge creation and delivery. In this research we will explore what roles are attributed to entrepreneurship education in the literature with regard to regional development as well as the influence and relationship of the main intervening stakeholders. The aim is to present a conceptual model which integrate the contributions of both strands of literature and, at the same time, highlight the interplay between the several stakeholders involved in HEI’s entrepreneurship education and regional development. |
| Keywords: | Entrepreneurship education, university, regional development, stakeholders |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:csh:wpecon:td02_2010&r=ent |
| By: | Sandri, Serena; Schade, Christian; Musshoff, Oliver; Odening, Martin |
| Abstract: | Disinvestment, in the sense of project termination and liquidation of assets including the cession of a venture, is an important realm of entrepreneurial decision-making. This study presents the results of an experimental investigation modeling the choice to disinvest as a dynamic problem of optimal stopping in which the patterns of decisions are analyzed with entrepreneurs and non-entrepreneurs. Our experimental results reject the standard net present value approach as an account of observed behavior. Instead, most individuals seem to understand the value of waiting. Their choices are weakly related to the disinvestment triggers derived from a formal optimal stopping benchmark consistent with real options reasoning. We also observe a pronounced âpsychological inertiaâ, i.e., most individuals hold on to a losing project for even longer than real options reasoning would predict. The study provides evidence for entrepreneurs and non-entrepreneurs being quite similar in their behavior. |
| Keywords: | Real-Options, Disinvestment, Exit Behavior, Experimental Economics, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Institutional and Behavioral Economics, |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huscpw:59518&r=ent |
| By: | Burger, M.J.; Oort, F.G. van; Raspe, O. |
| Abstract: | Recent empirical studies in regional science and urban economics show that agglomeration economies may be one source of the uneven distribution of economic activities and economic growth across cities and regions. At the same time, the body of research into the importance of agglomeration economies for the performance of firms is still growing. Such development is necessary, as the theories that underlie agglomeration economies are microeconomic in nature, but still insufficiently understood. In this study, we focus on the determinants of survival among new establishments in the advanced producer services sector in the Netherlands. Employing a mixed hierarchical and cross-classified probit regression, we introduce a model of establishment survival that is specific to characteristics of the internal and external environment of the establishment. Controlling for firm and sector characteristics, we conclude that location accounts for about 4% of the variance in the probability of survival of new establishments. We also find that localization and urbanization economies have a positive effect on the survival of new establishments. However, new establishments with large start-up sizes appear to profit more from agglomeration economies than new establishments with small start-up sizes. |
| Keywords: | agglomeration economies;micro-macro link;new establishments;multi-level analysis |
| Date: | 2010–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765019519&r=ent |
| By: | Martina Fink (University of Vienna / Department of Ecnomics); Esther Kalkenbrenner (University of Vienna / Department of Ecnomics); Andrea Weber (University of Mannheim / Department of Economics); Christine Zulehner |
| Abstract: | This paper demonstrates how firm information can be extracted from administrative social security records. We use the Austrian Social Security Database (ASSD) and derive firms from employer identifiers in the universe of private sector workers. To correctly pin down entry end exits we use a worker flow approach which follows clusters of workers as they move across administrative entities. This procedure enables us to define different types of entry and exit such as start-ups, spinoffs, closures, or take-overs. We show that our firm definition results in a demography which is comparable to official statistics of firm registers. The resulting database, covering the period of 1976 to 2006, is a valuable resource for future research on industry evolution in Austria. |
| Keywords: | administrative data, definition of firms, entry and exit types, worker flows |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:jku:nrnwps:2010_04&r=ent |
| By: | Wiel, H.P. van der (Tilburg University) |
| Abstract: | This PhD thesis deals with competition and innovation as drivers of productivity. According to literature, competition and innovation seem to be indivisibly connected to each other. Competition stimulates innovation by firms, and firms that innovate try to beat their competitors otherwise they will be swallowed by them. Competition as well as innovation are main drivers of productivity growth, but according to recent insights a trade-off may exist between these drivers. In fact, the relationship could look like an inverted U suggesting that competition is not always positively correlated with innovation. If competition is too intense, it has a negative effect on innovation (and productivity). This thesis has two main goals. First, it sheds more light on how to measure competition on product markets. In that respect, it elaborates on a new competition measure, the profit elasticity (PE). Chapter 2 extensively discusses this indicator and explicitly focus on what is meant by ‘competition’. Chapter 3 provides a guide for researchers how to measure PE in practice. The second goal of this thesis is to analyze the relationship between competition, innovation and productivity. As empirical evidence for this relationship is hardly available for the Netherlands, chapter 4 fills this gap by using Dutch (aggregate) firm level data. Chapter 5 examines the link between competition and product innovation at the firm level. It particularly analyzes the effect of product differentiation related to making products less close substitutes, and hence making markets less competitive. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:tilbur:urn:nbn:nl:ui:12-3959784&r=ent |
| By: | Alessandra Bonfiglioli |
| Abstract: | This paper studies the relationship between investor protection, entrepreneurial risk taking and income inequality. In the presence of market frictions, better protection makes investors more willing to take on entrepreneurial risk when lending to firms, thereby improving the degree of risk sharing between financiers and entrepreneurs. On the other hand, by increasing risk sharing, investor protection also induces more firms to undertake risky projects. By increasing entrepreneurial risk taking, it raises income dispersion. By reducing the risk faced by entrepreneurs, it reduces income volatility. As a result, investor protection raises income inequality to the extent that it fosters risk taking, while it reduces it for a given level of risk taking. Empirical evidence from a panel of forty-five countries spanning the period 1976-2000 supports the predictions of the model. |
| Keywords: | Keywords: Investor protection, income inequality, optimal financial contracts, risk taking, risk sharing. |
| JEL: | D31 E44 O16 |
| Date: | 2010–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:aub:autbar:827.10&r=ent |
| By: | Dayton M. Lambert (Dept. of Agricultural Economics, University of Tennessee); Jason P. Brown (USDA, Economic Research Service, Washington, D.C.); Raymond J.G.M. Florax (Dept. of Agricultural Economics, Purdue University) |
| Abstract: | Several spatial econometric approaches are available to model spatially correlated disturbances in count models, but there are at present no structurally consistent count models incorporating spatial lag autocorrelation. A two-step, limited information maximum likelihood estimator is proposed to fill this gap. The estimator is developed assuming a Poisson distribution, but can be extended to other count distributions. The small sample properties of the estimator are evaluated with Monte Carlo experiments. Simulation results suggest that the spatial lag count estimator achieves gains in terms of bias over the aspatial version as spatial lag autocorrelation and sample size increase. An empirical example deals with the location choice of single-unit start-up firms in the manufacturing industry in the US between 2000 and 2004. The empirical results suggest that in the dynamic process of firm formation, counties dominated by firms exhibiting (internal) increasing returns to scale are at a relative disadvantage even if localization economies are present |
| Keywords: | count model, location choice, manufacturing, Poisson, spatial econometrics |
| JEL: | C21 C25 D21 R12 R30 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pae:wpaper:10-5&r=ent |