nep-ent New Economics Papers
on Entrepreneurship
Issue of 2010‒12‒23
twelve papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Perceptions, Expectations, and Entrepreneurship: The Role of Extreme Events By Brück, Tilman; Llussá, Fernanda; Tavares, José
  2. Trust, Positive Reciprocity, and Negative Reciprocity: Do These Traits Impact Entrepreneurial Dynamics? By Marco Caliendo; Frank Fossen; Alexander Kritikos
  3. Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups By H. Wolf; Claus Michelsen; Michael Schwartz
  4. Differentiating entrepreneurs from family business founders By Anaïs Hamelin
  5. A consumption-based measure of the monetary rewards to entrepreneurship By Dmitriy Krichevskiy
  6. The Effectiveness of University Knowledge Spill-Overs: Performance Differences between University Spin-Offs and Corporate Spin-Offs By Wennberg, Karl; Wiklund, Johan; Wright, Mike
  7. What is small? Small and medium enterprises facing patenting activities By Abraham Garcia; Dominique Foray
  8. Business creation in Portugal: Comparison between the World Bank data and Quadros de Pessoal By Elsa Morais Sarmento; Alcina Nunes
  9. Análise comparativa de sobrevivência empresarial: o caso da região Norte de Portugal By Elsa Morais Sarmento; Alcina Nunes
  11. L’entrepreneur, éléments d’une analyse parallèle Léon Walras / joseph alois Schumpeter (The entrepreneur, elements for a paralell analysis Leon Walras / joseph alois Schumpeter) By Sophie BOUTILLIER

  1. By: Brück, Tilman (DIW Berlin); Llussá, Fernanda (Universidade Nova de Lisboa); Tavares, José (Universidade Nova de Lisboa)
    Abstract: We provide, for the first time, comparative evidence of the impact of various types of extreme events – natural disasters, terrorism, and violent conflicts – on the perceptions of entrepreneurs concerning some key entrepreneurial issues – such as fear of failure in starting a business venture, whether individuals expect that good opportunities are likely to emerge in the next six months, and the expected level of competition stemming from creating new ventures. The occurrence of extreme events is likely to be exogenous to the perceptions affecting it so that we can identify a causal link from events to entrepreneurs and their perceptions. Using individual-level data from 43 countries from the period 2002 to 2005, we find that neither indicator of the intensity of extreme events has a significant impact on entrepreneurial activity, when country characteristics are not controlled for. Once invariant country characteristics are taken into account, we find that Terrorist Attacks have a positive and significant impact on business creation, Natural Disasters have a positive and negative impact on entrepreneurial activity, and Violent Conflict has no significant effect. These results are consistent with differential impacts of extreme events on perception variables such as Fear of Failure, Expected Business Opportunities, and Expected Level of Competition. Our results suggest that extreme events, while costly at the aggregate level, may induce a positive response in terms of entrepreneurial activity in specific circumstances. There is hence scope for entrepreneurs, and policies supporting them, to create growth from the ruins of extreme events.
    Keywords: natural disaster, terrorism, violent conflict, entrepreneur
    JEL: F0
    Date: 2010–12
  2. By: Marco Caliendo; Frank Fossen; Alexander Kritikos
    Abstract: Experimental evidence reveals that there is a strong willingness to trust and to act in both positively and negatively reciprocal ways. So far it is rarely analyzed whether these variables of social cognition influence everyday decision making behavior. We focus on entrepreneurs who are permanently facing exchange processes in the interplay with investors, sellers, and buyers, as well as needing to trust others and reciprocate with their network. We base our analysis on the German Socio-Economic Panel and recently introduced questions about trust, positive reciprocity, and negative reciprocity to examine the extent that these variables influence the entrepreneurial decision processes. More specifically, we analyze whether i) the willingness to trust other people influences the probability of starting a business; ii) trust, positive reciprocity, and negative reciprocity influence the exit probability of entrepreneurs; and iii) willingness to trust and to act reciprocally influences the probability of being an entrepreneur versus an employee or a manager. Our findings reveal that, in particular, trust impacts entrepreneurial development. Interestingly, entrepreneurs are more trustful than employees, but much less trustful than managers.
    Keywords: Entrepreneurship, trust, reciprocity
    JEL: D81 J23 M13 L26
    Date: 2010
  3. By: H. Wolf; Claus Michelsen; Michael Schwartz
    Abstract: Knowledge of factors that determine the transition from nascent entrepreneurship into real entrepreneurship is of major importance for policies aiming to effectively stimulate start-ups. Whereas scholars concentrated on person-specific factors to explain transition probabilities, environmental characteristics have been fairly neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data on 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities on transition probabilities. Further, we introduce a new approach to measure nascent entrepreneurship by capturing individuals that actively participate in start-up competitions and have won at least one competition. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment for the probability of transition from award-winning nascent entrepreneurs to real start-ups.
    Date: 2010–12
  4. By: Anaïs Hamelin (LaRGE Research Center, Université de Strasbourg)
    Abstract: This paper develops a theoretical model predicting the difference in investment policy between entrepreneurs and family founders based on the firm ownership flexibility. Moreover, this paper provides evidence on the fact that small business with less flexible ownership structure does not exploit all their growth potential.
    Keywords: Small business, Growth, Ownership structure, Investment, Risk, Performance.
    JEL: G31 G32 L26
    Date: 2010
  5. By: Dmitriy Krichevskiy (Department of Economics, Florida International University)
    Abstract: Recent findings by Hamilton (Journal of Political Economy, 2000) suggest that the self-employed do not receive a monetary premium for the risk and uncertainty associated with business ownership. In this paper, I show that that income underreporting by entrepreneurs can explain the lack of evidence for monetary premia. Using a large national dataset (PSID), I first document evidence of underreporting, and then proceed to make alternative comparisons using measures of consumption. I find that the self-employed enjoy large earnings premia that are reflected in their consumption.
    Keywords: Entrepreneurship, self-employment, income comparison, income underreporting
    JEL: J23 J24 J31 L26
    Date: 2010–12
  6. By: Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Wiklund, Johan (Whitman School of Management and Jönköping International Business School, Sweden); Wright, Mike (Centre for Management Buy-out Research, Nottingham University Business School and University of Ghent)
    Abstract: While much prior research has focused upon how the Technology Transfer Offices and other contextual characteristics shape the level of university spin-offs (USO), there is little research on entrepreneurial potential among individual academics, and to the best of our knowledge, no comparative studies with other types of spin-offs exist to date. In this paper we suggest that knowledge transfer from academic research may flow indirectly to entrepreneurship by individuals with a university education background who become involved in new venture creation by means of corporate spin-offs (CSO) after gaining industrial experience, rather than leaving university employment to found a new venture as an academic spinoff. In fact, the commercial knowledge gained by industry experience is potentially more valuable for entrepreneurial performance compared to the academic knowledge gained by additional research experience at a university. This leads us to posit that not only will the average performance of CSOs be higher than comparable USOs, but the gains from founder’s prior experiences will also be higher among CSOs. We investigate these propositions in a comparative study tracking the complete population of USOs and CSOs among the Swedish knowledge-intensive sectors between 1994 and 2002.
    Keywords: Spill-Overs
    JEL: L53 M13 O32 O34
    Date: 2010–12–16
  7. By: Abraham Garcia (JRC-IPTS); Dominique Foray (EPFL / CDM-MTEI-CEMI)
    Abstract: The effect of a firm's size is analysed in relation with the probability of applying for a patent. We worked on the identification of a firm's minimum size, a threshold needed to formally protect an innovation by legal means. Below this minimum size the costs associated with protection are so high that firms prefer informal protection of their innovations. The literature concludes that as size increases so does the propensity to patent. This research finds similar results for pool regressions. In an attempt to understand the relationship between size and patent activity better, the population of firms is divided into two groups. On a first stage a firm was considered small if it had below 250 employees and large if it had more; a moving threshold was applied on a second stage. The results show that for some economies the minimum threshold needed for filing a patent is well below 250 employees.
    Keywords: SME, patents, IPRs
    JEL: C01
    Date: 2010–12
  8. By: Elsa Morais Sarmento (Gabinete de Estratégia e Estudos, Ministério da Economia, da Inovação e do Desenvolvimento; Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.); Alcina Nunes (Departamento de Economia e Gestão, Instituto Politécnico de Bragança)
    Abstract: Portugal has some of the highest business entry rates when compared to other countries, according to Eurostat, Statistics Portugal and the OECD Entrepreneurship Indicators Programme. We look at business creation in Portugal, from 2000 to 2007, by approaching two other complementary data sources, the World Bank Group Entrepreneurship Survey, based on official Portuguese business register’s and the universe of active employer enterprises, obtained by applying to the dataset Quadros de Pessoal, the methodology and definitions of the Eurostat/OECD´s “Manual on Business Demography Statistics”. This allows us to address entrepreneurship indicators comparability issues and exploit complementarities to support entrepreneurship patterns and trends previously identified by other national and international sources. We highlight the importance of considering information other than business registries, in particular when calculating business entry rates. Datasets where economically active units can be identified provide a better proxy for the true level of business creation and activity in Portugal.
    Keywords: Entrepreneurship, Business registries, Business Creation, Portugal, World Bank.
    JEL: M13 M21 L26
    Date: 2010–12
  9. By: Elsa Morais Sarmento (Gabinete de Estratégia e Estudos, Ministério da Economia, da Inovação e do Desenvolvimento; Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.); Alcina Nunes (Departamento de Economia e Gestão, Instituto Politécnico de Bragança)
    Abstract: This study approaches the survival ability of firms in the North region of Portugal from 1985 to 2007, allowing regional and national comparisons through the application of non-parametric and semi-parametric methods. This analysis is based on the creation of a specific entrepreneurship database, based on Quadros de Pessoal, where the methodology of Eurostat/OECD´s “Manual of Business Demography Statistics” was applied to. In the North, firms close earlier on during their infancy as their median duration is below the median duration of firms located in the rest of the country. The high turbulence of firm turnover is pointed out as a fundamental determinant of the survival probabilities of firms in this region.
    Keywords: Empreendedorismo, Dinâmica Empresarial, Sobrevivência, Análise Regional.
    JEL: C14 C41 L25 L26 R11
    Date: 2010–12
  10. By: Sophie BOUTILLIER (labrii, ULCO); Dimitri UZUNIDIS (labrii, ULCO)
    Abstract: La crise économique des années 1970 remet en cause l’intervention de l’Etat, en raison de l’intensification de la concurrence internationale, de l’apparition des nouvelles technologies de l’information et de la communication et de la globalisation des marchés financiers. Depuis les années 1980, les Etats facilitent la création d’entreprise comme mode d’insertion sur le marché de travail. L’objectif est de créer un cadre propice au développement des affaires, c’est-à-dire de redéfinir le rôle de l’Etat en privilégiant l’offre. Ce texte analyse la politique de création d’entreprise au regard de l’indicateurdu climat des affaires de la Banque mondiale pour apporter une critique forte aux thèses justifiant la "société entrepreneuriale". The economic crisis of the 1970s challenged State intervention, due to increased international competition, the emergence of new information technologies and communication and to the globalization of financial markets. Since the 1980s, states have facilitated business creation as a means of integration into the labor market. The aim is to create an environment conducive to business development, which means to redefine the role of the state towards supply side policies. This paper analyzes the policies related to entrepreneurship under the indicatorBusiness Climate of the World Bank and discusses the pertinence of the "entrepreneurial society" thesis.
    Keywords: small businesses - industrial groups - innovation - groupes industriels - petites entreprises
    JEL: M21 M51
    Date: 2010–11
  11. By: Sophie BOUTILLIER (labrii, ULCO)
    Abstract: L. Walras, comme J. A. Schumpeter, avaient la même ambition : révolutionner la théorie économique. Ils atteignent cet objectif par des voies différentes (le premier par les mathématiques, le second par l’analyse sociohistorique). Ils formulent ainsi deux théories différentes de l’entrepreneur, agent économique central du capitalisme. Le modèle de Walras est statique. L’entrepreneur est rationnel par son comportement maximisateur. Le modèle de Schumpeter est dynamique. L’entrepreneur est le moteur du changement économique. Une analyse parallèle des deux théories montre cependant que l’écart entre ces deux analyses n’est pas aussi profond. L. Walras, like J. A. Schumpeter, had the same ambition: to revolutionize the economic theory. They achieved this goal by various ways (the first through the use of mathematics, the second by a socio-historical analysis). They formulate two different theories of the entrepreneur, the central economic agent of capitalism. The Walras’ model is static. The entrepreneur is rational by his maximizing behaviour. The Schumpeter’s model is dynamic. The entrepreneur is the engine of economic change. Nevertheless, the parallel of both theories shows that the gap between these analyses is not so deep.
    Keywords: entrepreneur, leon walras, joseph alois, schumpeter,annalyse, théorie économique, economic theory
    JEL: N10
    Date: 2010–11
  12. By: Gilliane LEFEBVRE (Université Paris Ouest Nanterre La Défense); Blandine LAPERCHE (labrii, ULCO)
    Abstract: Quelle est la place et le rôle joué par les petites entreprises dans la constitution du capital-savoir des groupes, c'est-à-dire l’ensemble des informations et connaissances qu’ils mobilisent pour innover ? Quelles formes prend la collaboration entre groupes industriels et petites entreprises innovantes ? Dans cet article, les auteures étudient ces questions sur la base d’une revue de la littérature et des résultats d’une enquête menée au cours de l’année 2009 et 2010 sur le capital-savoir des groupes industriels (Langlet et al., 2010). Elles étudient la constitution collaborative du capital-savoir ainsi que les formes et objectifs de la collaboration selon le type de partenaire associé au groupe industriel (recherche académique, clients et fournisseurs, concurrents et petites entreprises). Elles mettent l’accent sur les formes de collaborations actuelles entre petites entreprises innovantes et groupes industriels et montrent que cette coopération prend largement appui en France sur les dispositifs publics d’incitation à la création de réseaux d’innovation. What is the place and the role played by small businesses in the constitution of the knowledge capital of industrial groups, that is to say the set of information and knowledge that they gather to innovate? What form does the cooperation between industrial groups and small innovative companies take? In this article, the authors study these issues on the basis of review of literature and on the results of a survey conducted during 2009 and 2010 on the knowledge-capital of industrial groups (Langlet et al., 2010). They study the open strategy developed by industrial groups to develop their knowledge-capital and the forms and objectives of the collaboration according to the partner associated to the industrial group (academic research, customers and suppliers, competitors and small businesses). They focus on current forms of collaboration between small innovative companies and industrial groups and show that such cooperation is widely supported in France on the public provision of incentives for the creation of innovation networks.
    Keywords: small businesses - industrial groups - innovation - groupes industriels - petites entreprises
    JEL: M21 M51
    Date: 2010–11

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