nep-ent New Economics Papers
on Entrepreneurship
Issue of 2010‒06‒26
seven papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Perceived financial barriers and the start-up decision: An econometric analysis of gender differences using GEM data By Stephen, Roper; Jonathan M., Scott
  2. New Firm Performance: Does the Age of Founders Affect Employment Creation? By Jan de Kok; Ingrid Verheul; Abdelfatah Ichou
  3. An entrepreneurial model of economic and environmental co-evolution By Jason Potts; John Foster; Anna Straton
  4. Innovations in Innovation: Developing a Coherent Discipline - examples from Social Entrepreneurship By Haynes, Paul
  5. What do Spanish Engineering Students Think about Innovation and Entrepreneurship? By Edwards, Mónica; Fernández-Diego, Marta; González-Ladrón-de-Guevara, Fernando
  6. Using Self-employment as Proxy for Entrepreneurship: Some Empirical Caveats By Bjuggren, Carl Magnus; Johansson, Dan; Stenkula, Mikael
  7. Short-Time Compensation and Establishment Exit: An Empirical Analysis with French Data By Calavrezo, Oana; Duhautois, Richard; Walkowiak, Emmanuelle

  1. By: Stephen, Roper; Jonathan M., Scott
    Abstract: Although accessing finance is key to the foundation of any business, particular concerns have been expressed about the ability of UK women-owned firms to obtain external finance. In this paper we use an econometric approach to explore the effect of perceptions of financial barriers to start-up on the start-up decision itself. Our analysis is based on the Global Entrepreneurship Monitor (GEM) UK 2004 database. Standardising for a range of individual characteristics, we find that women are around 7.4 per cent more likely to perceive financial barriers to business start-up than men. As perceptions of financial barriers are linked negatively to the start-up decision, stronger perceptions of financial barriers among women are having a disproportionate effect on women’s start-up decisions. However, being female also has an additional negative effect on the start-up decision, not linked to financial barriers. Policy responses, therefore, need to take into account the demand-side with the aim of countering the more negative perceptions of start-up finance among potential women entrepreneurs. Mentoring and confidence building programmes are obvious possibilities. We also find support for the value of university and college-based work experience programmes. [PUBLISHED ABSTRACT]
    Keywords: Finance; entrepreneurship; start-up; SME; gender; women
    JEL: L26 G3 M13 D14 J23 J16
    Date: 2009
  2. By: Jan de Kok; Ingrid Verheul; Abdelfatah Ichou
    Abstract: The ageing population increasingly becomes a challenge for policy makers. Given the expected changes in the age decomposition of the workforce, it becomes more pressing to understand the nature of the relationship between age and entrepreneurship. More specifically: what are the consequences of an ageing (entrepreneurial) population on entrepreneurial performance?  A recent study by EIM investigates the effect of the age of the entrepreneur at start-up on the size of newly started firms. A distinction is made between the decision of entrepreneurs whether or not to become an employer, and the decision of employers to hire a certain number of employees. To examine to which extent age has a direct and/or indirect effect on these two decision, a sample of 849 new firms has been used that survived the first three years after start-up.  A first conclusion of the empirical analysis is that it is important to make the distinction between the two decisions: the decision of entrepreneurs whether or not to become an employer depends on other factors than the decision of employers regarding the number of employees. A second conclusion is that age has a negative relationship with the outcome of both decisions, but that these relationships are completely mediated by the mediating variables included in the study. Entrepreneurs who start at older age are less likely to work fulltime in their new venture, are less willing to take risks and have a lower perception of their entrepreneurial skills. Each of these factors has, in turn, a positive impact on the probability of employing personnel. For the number of employees a negative indirect effect of age exists, through the effect of age on the perception of entrepreneurial skills.  
    Date: 2010–05–11
  3. By: Jason Potts; John Foster; Anna Straton (School of Economics, The University of Queensland)
    Abstract: A basic tenet of ecological economics is that economic growth and development are ultimately constrained by environmental carrying capacities. It is from this basis that notions of a sustainable economy and of sustainable economic development emerge to undergird the ‘standard model’ of ecological economics. However, the belief in ‘hard’ environmental constraints may be obscuring the important role of the entrepreneur in the coevolution of economic and environmental relations, and hence limiting or distorting the analytic focus of ecological economics and the range of policy options that are considered for sustainable economic development. This paper outlines a co-evolutionary model of the dynamics of economic and ecological systems as connected by entrepreneurial behaviour. We then discuss some of the key analytic and policy implications.
    Date: 2010
  4. By: Haynes, Paul
    Abstract: Social entrepreneurship is an emerging academic field generating a rapidly expanding literature on a growing range of topics. While the early stage of its development was nourished by many of the rich ideas developed within the "conventional" entrepreneurship literature, this is beginning to change as the community-based and societal entrepreneurship landscape has become a more fundamental part of the collection of entrepreneurship practices. Challenges still remain in forging effective and close relationships between academics, community groups and practitioners. This paper considers the way that the social entrepreneurship community, as a collective of academics and practitioners, is beginning to address this tension.
    Date: 2009–11–11
  5. By: Edwards, Mónica; Fernández-Diego, Marta; González-Ladrón-de-Guevara, Fernando
    Abstract: This paper analyzes the interrelationships between creativity, innovation and entrepreneurship as key enablers of an entrepreneurial and innovation-oriented culture. Empirical results of exploring perceptions and opinions about these three concepts are presented, using a sample of 121 engineering students. The findings show that the majority of students perceive the traditional linear model of innovation and consider innovation strongly related to creativity but moderately related to entrepreneurship. There are contradictions between the students' self-perceptions as entrepreneurs, their high desirability to start a new firm and their work preferences after graduation, which are principally to get a job in a private company and become public servants. Their low willingness for mobility and the poor contribution of the education system in developing their innovation and entrepreneurial competences constitutes other relevant obstacles for improving an entrepreneurial and innovation-oriented culture.
    Keywords: engineering students; perceptions; innovation; entrepreneurship; creativity; competences
    JEL: L26
    Date: 2010–04–08
  6. By: Bjuggren, Carl Magnus (Linköping University and Stockholm School of Economics/EHFF); Johansson, Dan (The Ratio Institute); Stenkula, Mikael (Research Institute of Industrial Economics (IFN))
    Abstract: Research on entrepreneurship has received an increased amount of interest in recent years, with self-employment being used as the most common proxy for “entrepreneurship” in empirical studies. However, there are various ways of defining selfemployment, making it a somewhat dubious proxy. This may flaw the analysis, especially in cross-country studies, since the documentation of data often is insufficient and difficult to access due to language barriers. We present an analysis of Swedish self-employment data. We show that the measurement of self-employment has changed over time to noticeably affect the reported number of self-employed in the two major statistical sources on self-employment. The reported development of self-employment sometimes differs diametrically depending on source. Sweden is occasionally erroneously reported to show the largest increase in selfemployment in cross-country studies. Our study mimics the results of other country-specific analyses and we conclude that well-grounded conclusions require that the advantages and disadvantages of different statistical sources are recognized.
    Keywords: Labor Force Survey; RAMS; self-employed; self employment; entrepreneurship
    JEL: C81 C82 L26 M13
    Date: 2010–06–15
  7. By: Calavrezo, Oana (DARES French Ministry of Labour); Duhautois, Richard ((CEE) Centre D'Ètudes de L'Emploi); Walkowiak, Emmanuelle ((CEE) Centre D'Ètudes de L'Emploi)
    Abstract: According to the French law, the short-time compensation (STC) program aims at avoiding redundancies during short-term downturns. Even if it does not shield establishments from redundancies (Calavrezo, Duhautois and Walkowiak, 2009a), STC can preserve an establishment's survival. This paper studies the relationship between STC and establishment exit over the period 2000-2005. We merge six data sets and we test the relationship between STC and establishment exit with propensity score matching techniques. Our results show that, on average, the year after establishments implement STC, they exit the market more intensely than establishments that do not use the program.
    Keywords: short-time compensation, establishment exit, selection bias, propensity score matching
    JEL: J20 J63 C14
    Date: 2010–06

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