nep-ent New Economics Papers
on Entrepreneurship
Issue of 2010‒12‒11
eight papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Business Takeover or New Venture? Individual and Environmental Determinants from a Cross-Country Study By Block, J.H.; Thurik, A.R.; Zwan, P.W. van der
  2. Entrepreneurship and the Discipline of External Finance By Nanda, Ramana
  3. Social entrepreneurship: Taking stock and looking ahead By Mair, Johanna
  4. Business Survival in Portuguese Regions By Alcina Nunes; Elsa de Morais Sarmento
  5. Heterogeneous Exits: Evidence from New Firms By Kato, Masatoshi; Honjo, Yuji
  6. When is Gibrat's Law a Law? By Daunfeldt, Sven-Olov; Elert, Niklas
  7. Industrial Policy in Chile By Manuel Agosin; Nicolas Grau; Christian Larrain
  8. Processus d'acquisition externe des ressources de la jeune entreprise innovante : le cas d'Agrauxine, une entreprise de biocontrôle By A. Parmentier

  1. By: Block, J.H.; Thurik, A.R.; Zwan, P.W. van der
    Abstract: The determinants of entrepreneurial choice have been thoroughly analyzed. Little is known, however, about the preferred mode of entry into entrepreneurship, such as taking over an existing business or starting a new venture. Using a large, international dataset, this study reports considerable differences in takeover preferences across countries. It explores many individual and environmental determinants of the preferred mode of entry. Our results show that human capital is not the only influence on the preference for starting a new venture versus taking over an existing one; a person’s risk attitude, inventiveness, perception of financial constraints of entrepreneurship and country of residence (after controlling for the individual determinants) also play important roles.
    Keywords: entrepreneurship;occupational choice;entry mode;business takeover;new venture start
    Date: 2010–11–02
  2. By: Nanda, Ramana (Department of Economics, Aarhus School of Business)
    Abstract: No abstract
    Keywords: No keywords;
    JEL: G10
    Date: 2010–05–01
  3. By: Mair, Johanna (IESE Business School)
    Abstract: This essay sets out to take stock of existing endeavors to conceptualize Social Entrepreneurship. We illustrate the context-specific nature of the phenomenon and derive implications for fostering social entrepreneurship as a positive force for social and economic development. The paper has two main objectives: first, to stimulate a productive agenda for future research that goes beyond questions of 'who' and 'what' by pursuing the important considerations of 'where', 'why' and 'how'; and second, in so doing, to generate real insights for advances in both theory and practice.
    Keywords: social entrepreneurship; institutions; capitalism;
    Date: 2010–11–03
  4. By: Alcina Nunes (Escola Superior de Tecnologia e Gestão do Instituto Politécnico de Bragança e GEMF, Faculdade Economia Universidade de Coimbra, Portugal); Elsa de Morais Sarmento (Departamento de Economia e Gestão da Universidade de Aveiro, Portugal)
    Abstract: This work addresses the post-entry performance of employer enterprises for seven regions in Portugal, at the NUT II level, by investigating the structural characteristics of survival, using non-parametric and semi-parametric methods, during the period 1985 to 2007. The last decades of the 20th century were characterized by a period of creative destruction in Portugal. In particular, regions such as Norte, Algarve and Madeira show the highest growth rates in enterprise births, deaths and firm churn. After 2000, firms´ births and deaths get relatively less turbulent. In the non-parametric analysis, we identify statistically significant disparities among regions. Norte has the lowest survival rate and Centro holds the longest surviving firms and the survival gap between the former two regions gets amplified over time. Concerning the semi-parametric analysis, firm’s current size dimension is a strong determinant for the probability of survival, particularly in the Norte and Açores. In industries characterized by high entry rates at the moment of a firm’s birth, post-entry survival becomes harder, especially in the south and in the Portuguese archipelagos, the regions with the lowest number of active employer enterprises. A higher entry rate combined with fast growth rates for any given industry also generates a shorter duration of firms. Manufacturing is the sector where more firms are more likely to abandon the market, particularly in Madeira and Norte. But it is turbulence, given by the sum of firms´ entry and exit rates that exhibits the most significant effect on survival. For every region, except for the Açores, where there is no statistical significance, those that have the highest record of firm turbulence, also display the lowest business survival probabilities. Turbulence decreases severely the survival probabilities of firms located in Madeira and Norte and to a lesser extent in the Algarve.
    Keywords: Duration Analysis, Firm dynamics, Entrepreneurship, Regional Analysis.
    JEL: C14 C41 L25 L26 R11
    Date: 2010–10
  5. By: Kato, Masatoshi; Honjo, Yuji
    Abstract: This paper explores heterogeneous exits-bankruptcy, voluntary liquidation, and merger-by focusing on new firms. Using a sample of approximately 16,000 firms founded in Japan during 1997-2004, we examine the determinants of new-firm exit according to forms of exit. Regarding industry-specific characteristics, our findings indicate that new firms in capital-intensive and R&D-intensive industries are less likely to go bankrupt. In industries characterized by large amounts of capital and low price-cost margins, new firms are more likely to exit through voluntary liquidation and merger. Region-specific characteristics, such as regional agglomeration and unemployment rate, have significant effects on the hazards of exit, and their effects vary across different forms of exit. Moreover, we provide evidence that firm-specific characteristics, such as the number of employees, and entrepreneur-specific characteristics, such as educational background and age, play significantly different roles in determining each form of exit.
    Keywords: New firm, exit, bankruptcy, voluntary liquidation, merger, competing risks proportional hazards model
    Date: 2010–10
  6. By: Daunfeldt, Sven-Olov (The Ratio Institute); Elert, Niklas (The Ratio Institute)
    Abstract: The purpose of this paper is to investigate if the industry context matters for whether Gibrat's law is rejected or not using a dataset that consists of all limited firms in 5-digit NACE-industries in Sweden during 1998-2004. The results reject Gibrat's law on an aggregate level, since small firms grow faster than large firms. However, Gibrat's law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context - e.g., minimum efficient scale, market concentration rate, and number of young firms in the industry - matters for whether Gibrat's law is rejected or not.
    Keywords: Firm growth; firm size; job creation; small firms
    JEL: L11 L25 L26
    Date: 2010–11–29
  7. By: Manuel Agosin; Nicolas Grau; Christian Larrain
    Abstract: This paper studies three horizontal policy instruments and two vertical ones in Chilean industrial policy, particularly regarding small and medium enterprises (SMEs). The horizontal instruments are (1) a guarantee program for borrowing by SMEs (FOGAPE), (2) a small subsidy to new exports that was applied from 1985 through 2003, and (3) the innovation subsidies provided by the Corporación de Fomento de la Producción (CORFO). The vertical policy instruments are the activities of Fundación Chile (FCh), a semi-public entrepreneur cum venture capitalist, and a CORFO program to attract foreign direct investment in information technology. Although most programs are well designed, they are numerous and insufficiently funded; Chile could benefit from a prioritization of needs and consolidation of these programs. Moreover, the instruments for making strategic bets on new sectors are particularly weak. In particular, FCh needs to refocus its activities on high-risk projects with long payoffs, something it cannot do with its small endowment.
    Keywords: Industrial policy, Small and medium enterprises, Chile
    JEL: F43 L52
    Date: 2010–11
  8. By: A. Parmentier (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II)
    Abstract: La nature des ressources est un aspect manquant à la littérature sur les ressources et compétences. De même la compréhension des ressources dans les PME est un axe de recherche à développer (Lockett, O'Shea et Wright 2008). L'objectif empirique de ce papier est d'évaluer les ressources d'une PME acquises par croissance externe et d'étudier les conséquences en termes de performance lorsque celle-ci correspond à la levée de fonds auprès des investisseurs. La revue de la littérature de l'approche par les ressources met l'accent sur les travaux individuels de Barney (1991) et Peteraf (1993) ainsi que leur synthèse (Peteraf et Barney 2003) puis de l'approche de Black et Boal (1994) qui intègre la théorie des réseaux. L'explicitation de l'opérationnalisation, dans le contexte de la perspective compétence, de ces deux derniers modèles justifie les critères retenus et leur utilisation pour des études de cas interprétatives. Le contexte d'étude et les éléments de méthodologie permettent de comprendre la démarche d'évaluation qui suit. Elle est composée d'une première étape décrivant les fusions et acquisitions successives et les actifs auxquels l'entreprise a eu accès. L'évaluation de la contribution des ressources disponibles à la performance de l'entreprise en termes de levée defonds est détaillée ensuite. Les résultats de cette étude montrent que les ressources les plus valorisées par les investisseurs sont la propriété intellectuelle, les connaissances et le processus de structuration de l'entreprise. Les projets et les produits ne sont pas déterminants à ce stade de développement des entreprises de biocontrôle. Les deux modèles donnent des résultats similaires, mais le modèle de Black et Boal (1994) est plus nuancé et permet une compréhension plus fine de l'avantage concurrentiel des firmes que celui de Peteraf et Barney (2003)
    Keywords: Ressources ;Fusion et acquisition ; RBV ; Perspective compétence ;opérationnalisation qualitative
    Date: 2010

This nep-ent issue is ©2010 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.