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on Entrepreneurship |
| By: | André van Stel; Mirjam van Praag; José Maria Millan; Emilio Congregado; Concepcion Roman |
| Abstract: | Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur's venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994-2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country j and year t and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the probability that an entrepreneur starts employing personnel and maintains as an employer for a longer period of time. An implication of our novel finding is that entrepreneurship and higher education policies should be considered in tandem with each other. |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201103&r=ent |
| By: | Gaetano Lisi (University of Cassino); Maurizio Pugno (University of Cassino) |
| Abstract: | This paper incorporates tax morale into a search and matching model of equilibrium unemployment, with on-the-job search, extended to both the irregular sector and entrepreneurship. Tax morale is modelled as a social norm for tax compliance which renders evasion costly. The moral cost of tax evasion (the strength of the social norm) is negatively related to the fraction of entrepreneurs that evades taxes. Precisely, if the relationship is nonlinear, multiple equilibria may emerge, thus accounting for differences in-between regions and countries in the size of the irregular sector. The "good" equilibrium is in fact characterised, with respect to the "bad" one, by a smaller irregular sector and a stronger tax morale. |
| Keywords: | tax morale; tax evasion; entrepreneurship; job search; irregular economy; shadow economy |
| JEL: | A13 E26 H26 J24 J64 L26 K42 O17 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:css:wpaper:2011-01&r=ent |
| By: | Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis) |
| Abstract: | The paper is concerned with the process of SMEs' insertion into innovation projects within regional clusters. The objective is to contribute to a better understanding of this process by examining the underlying mechanisms of territorial innovation dynamics. A particular attention is given to the interplay between the features of territorial dynamics of innovation identified, and SMEs' capacity to participate to collaborative innovation projects. In this perspective, the article analyse the front-end process of territorial inter-organizational innovation, the early stage during which partners negotiate and establish collaborative innovation projects. Rather than investigating how clusters facilitate the access to new resources and knowledge, the crucial question here is how clusters allow the combination of different component of knowledge among heterogeneous actors. First, our findings reveal the key underlying role of architectural knowledge in local innovation processes. Second, they suggest that the nature of architectural knowledge inside the cluster influences the capacity and the motivation of SMEs to participate to local innovation projects. These findings contribute to theory by developing a grounded model of territorial dynamics of innovation and of SMEs integration into localised innovation projects |
| Keywords: | clusters; SMEs; architectural innovation; knowledge; local innovation projects |
| Date: | 2010–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00504079&r=ent |
| By: | Carlos Bozzoli; Tilman Brück; NIna Wald |
| Abstract: | Many Colombians are confronted with the ongoing conflict that influences their decision making in everyday life, including their behavior in labor markets. This study focuses on the impact of violent conflict on self-employment, enlarging the usual determinants with a set of conflict variables. In order to estimate the effect of conflict on self-employment, we employ fixed effects estimation. Three datasets are combined for estimation: the Familias en Acción dataset delivers information about individuals, a second dataset contains different indicators of the Colombian conflict at the municipality level and the third dataset includes taxes to measure a municipality's economic situation. Our results show that high homicide and displacement rates in the community of origin reduces self-employment, while a high influx of displaced increases the probability of self-employment in the destination municipality. |
| Keywords: | Self-employment, civil conflict, rural labor markets, Colombia |
| JEL: | C23 J16 J24 O10 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1098&r=ent |
| By: | Ardic, Oya Pinar; Mylenko, Nataliya; Saltane, Valentina |
| Abstract: | In the aftermath of the global financial crisis of 2008-2009, there has been an increased interest in the role of small and medium enterprises in job creation and economic growth. However the lack of consistent indicators at the country level restricts extensive cross-country analyses of lending to small and medium enterprises. This paper introduces a new dataset to fill this gap in the small and medium enterprise data landscape. In addition, it provides the first set of results of analyses with this new dataset, predicting the global small and medium enterprise lending volume to be $10 trillion. The bulk of this volume, 70 percent, is in high-income countries. On average, small and medium enterprise loans constitute 13 percent of gross domestic product in developed countries and 3 percent in developing countries. Note that although a unique small and medium enterprise definition does not exist, differences in definitions across countries are not statistically significant in explaining the differences in small and medium enterprise lending volumes. |
| Keywords: | Access to Finance,Banks&Banking Reform,Debt Markets,Microfinance,Bankruptcy and Resolution of Financial Distress |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5538&r=ent |
| By: | Kessides, Ioannis N.; Tang, Li |
| Abstract: | This paper offers a new economic explanation for the observed inter-industry differences in the size distribution of firms. The empirical estimates--based on three temporal (1982, 1987, and 1992) cross-sections of the four-digit United States manufacturing industries--indicate that increased market contestability, as signified by low sunk costs, tends to reduce the dispersion of firm sizes. These findings provide support for one of the key predictions of the theory of contestable markets: that market forces under contestability would tend to render any inefficient organization of the industry unsustainable and, consequently, tighten the distribution of firms around the optimum. |
| Keywords: | Markets and Market Access,Economic Theory&Research,Water and Industry,Access to Markets,Debt Markets |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5540&r=ent |
| By: | Gallié, Emilie-Pauline; Legros, Diego |
| Abstract: | In attempting to appropriate their innovations, firms can choose from a range of mechanisms, including patents, trade secrets and lead-times. Yet, little is known about how firms choose different appropriability mechanisms. The aim of this paper is to determine how the use of intellectual property rights(IPs)by French firms is related to their characteristics, activities, competitive strategies and the industry sector in which they operate. Among their characteristics, we test the role of the human resource strategies in keeping employees. Our empirical model is based on the French 2004 Community Innovation Survey(CIS). Our results show that firms have different strategies in the choice of the means of protection according to their basic economic characteristics of firms, their activities and industry environment. They also put in evidence of the role of human resources strategies. Firms that finance R&D training prefer to use non-statutory means. |
| Keywords: | Appropriability; Intellectual property rights; Innovation; Human resources strategies; Multivariate probit; |
| JEL: | C35 O32 O34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5000&r=ent |
| By: | Federico Etro (Department of Economics, University Of Venice, Ca’ Foscari) |
| Abstract: | One of the pioneering works on endogenous market structures, by Tandon (1984), has extended the standard Cournot model with linear demand to endogenous entry and sunk R&D costs to show that the endogenous number of firms is independent from the size of the market. I generalize the model in many directions and show that, as long as the exogenous fixed costs are positive, the endogenous market structure is naturally characterized by an inverted-U relation between market size and number of firms, in line with the celebrated hypothesis of Sutton (1991). |
| Keywords: | Oligopoly, Endogenous entry, Sunk costs, RD investment |
| JEL: | L1 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2010_29&r=ent |