nep-ent New Economics Papers
on Entrepreneurship
Issue of 2011‒03‒05
ten papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Entrepreneurial Origin, Technological Knowledge and the Growth of Spin-off Companies By B. CLARYSSE; M. WRIGHT; E. VANDEVELDE
  2. Entrepreneurial team and performance in Lombard SMEs.An empirical study By Marco Talaia; Serena Mascherpa
  3. Credit to Women Entrepreneurs: The Curse of the Trustworthier Sex By Isabelle Agier; Ariane Szafarz
  4. Innovation and Entrepreneurship: A first look at linkage data of Japanese patent and enterprise census By MOTOHASHI Kazuyuki
  5. The Need for Innovation Support Services unraveled. The ³case of New Technology Based Firms By M. KNOCKAERT; E. VANDENBROUCKE; A. HUYGHE
  8. R&D Projects Fostering Small Firmsâ Market-Sensing and Customer-Linking Capabilities: A Multivariate Statistics Approach By Dentoni, Domenico; English, Francis
  9. Export and Innovation in SMEs and Large Firms: The main determinants By Ana Rita Gomes; Horácio Crespo Faustino
  10. Local Food Marketing: Factors for Growth of Small Agriâfood Businesses in the UK By Hingley, Martin; Boone, Julie; Haley, Simon

    Abstract: We contribute to the literature on corporate spin-offs and university spin-offs by exploring how different characteristics in the technological knowledge base at start-up influence spin-off performance. We investigate how the technological knowledge characteristics endowed at start-up predict growth, taking into account whether the knowledge / technology is transferred from a corporation or university. We use a novel, hand-collected dataset involving 48 corporate and 73 university spin-offs, comprising the population of spin-offs in Flanders during 1991-2002. We find corporate spin-offs grow most if they start with a specific narrow-focused technology sufficiently distinct from the technical knowledge base of the parent company and which is tacit. University spin-offs benefit from a broad technology which is transferred to the spin-off. Novelty of the technical knowledge does not play a role in corporate spin-offs, but has a negative impact in university spin-offs unless universities have an experienced technology transfer office to support the spin-off.
    Keywords: technological knowledge, corporate spin-offs, university spin-off
    Date: 2010–12
  2. By: Marco Talaia; Serena Mascherpa (Department of Economics, University of Insubria, Italy)
    Abstract: Identifying which factors affect firms’ performance is a critical issue. Within International Entrepreneurship stream of search, most of the extant studies have focused on the individual entrepreneur (Watson et al., 1995), with entrepreneurial team (ET) neglected in the literature (Foo et al., 2006). Our paper addresses the influence of ET over the behavior and performance of small and medium-sized enterprises (SMEs). We argued that the entrepreneurial team is decisive in SMEs, inasmuch as the lack of resources push them to rely more on their entrepreneurial team (Escribà-Esteve et al. 2009). Based on a survey of 301 small and medium-sized enterprises of Lombardy, we demonstrated that entrepreneurial team demographics have a crucial role in the determination of performance
    Date: 2011–02
  3. By: Isabelle Agier; Ariane Szafarz
    Abstract: Women entrepreneurs are known not only to reimburse loans swifter than men, but also to receive smaller loans. However, on average women have smaller-scope business projects and are poorer than men. A deeper investigation is thus required in order to assess the existence of gender discrimination in small-business lending. This is precisely the aim of this paper. Its contribution is twofold. Firstly, it proposes a new estimation method for assessing discrimination in loan allocation. This method operationalizes the theoretical “double standard” approach developed by Ferguson and Peters (1995, Journal of Finance). Secondly, this paper applies the new methodology to an exceptionally rich database from a Brazilian microfinance institution. The empirical results point to gender discrimination. Additionally, it is shown that reducing the information asymmetry through relationship brings no remedy to the curse of the trustworthier sex.
    Keywords: Small Business; Microcredit; Gender; Loan Size; Denial Rate; Default
    JEL: G24 L26 O16 M13
    Date: 2011–02
  4. By: MOTOHASHI Kazuyuki
    Abstract: This paper presents the results of a comprehensive analysis of the innovative activities of the entire population of Japanese firms by using a linked dataset of Establishment and Enterprise Census and the IIP Patent Database (JPO patent application data). As of 2006, it was found that about 1.4% of about 4.5 million firms filed patents, and substantial patenting activities were found not only in the manufacturing field but also in a wide range of fields such as B2B services and financial sectors. In addition, a firmfs survival and growth are regressed with patenting and open innovation (measured by joint patent application with other firms and universities), and it is shown that innovative activities measured by patenting are positively correlated with such firm performance. It is also found that the relationship between patents and the survival rate is stronger for larger firms, while that between patents and firm growth is stronger for smaller firms.
    Date: 2011–02
    Abstract: New Technology Based Firms (NTBFs) are considered to contribute significantly to the economy. As a result, these firms have received extensive attention from academics over the past decades. Given that NTBFs are faced with many challenges and liabilities, the academic literature has tried to identify how public policy measures could help to overcome challenges related to innovation, amongst others by identifying NTBFs’ needs for innovation support services. Our study contributes to this stream of research by exploring the determinants of the need for innovation support services. We find that technology-related services are highly needed by VC-backed companies, whereas market-related services are searched for by NTBFs in an early development stage pursuing a strategy of playing on the product market. Further, financial-related services were needed by NTBFs with a high level of informal protection, in an early development stage and targeting at playing on a technology market. Finally, soft services were looked for by teams with high levels of technical human capital, in an early development stage, and pursuing a product market strategy.
    Date: 2011–01
    Abstract: This paper studies how cross-border venture capital investors as opposed to domestic venture capital investors influence the development of their portfolio companies. For this purpose, we use a longitudinal research design and track sales from the year of initial venture capital investment up to seven years after this investment in 692 European technology-based companies. Findings demonstrate how companies backed by cross-border venture capital investors initially exhibit lower sales growth compared to companies backed by domestic investors. After a couple of years, however, companies backed by cross-border investors exhibit higher sales growth compared to companies backed by domestic investors. Finally, companies that raise finance from a syndicate comprising both domestic and cross-border investors develop into the biggest sales generators. Overall, this study provides a more textured understanding of the role played by venture capital investors as their portfolio companies develop and thereby require different resources or capabilities over time.
    Keywords: venture capital, cross-border, international, portfolio company development
    JEL: D92 G24 G32 G34
    Date: 2010–12
    Abstract: Employing a risk perception perspective, this paper studies the link between the investment manager’s human capital and his or her attitude towards the appropriability regime in the business proposal, and more specifically whether or not the technology is patent protected. Even though many researchers acknowledge the benefits related to patenting, agency theory suggests that patents may enlarge agency risk and may therefore result in VCs refraining from investing in proposals commercializing patented technology. We find that task-specific human capital, operationalized as the number of years experience as investment manager, positively affects the attitude towards patents. We find that some elements of general human capital, namely consulting experience, financial experience and entrepreneurial experience affect the attitude towards patents.
    Keywords: venture capital, selection behaviour, appropriability, human capital, risk perception
    Date: 2011–01
  8. By: Dentoni, Domenico; English, Francis
    Abstract: A large number of empirical studies have recently explored the processes and the conditions under agri-food companies acquire and develop market orientation (e.g. Martin et al. 2009), entrepreneurship (e.g. Holster 2008) and innovation (e.g. Verhees 2005), which have been proven to have a positive relationship with their performance (e.g. Micheels and Gow 2008). A much smaller number of studies focused on how agri-food firms can acquire the capabilities that are necessary to become market-oriented and innovative (e.g. Anderson & Narus 2007), specifically market sensing and customer linking (Day 1994). As a number of public-private partnership projects are attempting to enhance agri-food companies' market orientation and innovation, it is useful to identify which research and dissemination methods effectively develop these capabilities and under which conditions. To attempt to start filling this gap, this study analyses under which conditions public-private projects based on research and dissemination manage to foster market-sensing and customer-linking capabilities of small agri-food firms. Fostering these capabilities in small firms is particularly challenging, as they have limited resources to absorb the new information, learn and apply strategic changes as a result of the learning process. The case of five knowledge-building Seafood Cooperative Research Centre projects based on supply chain mapping and benchmarking methods with the oyster, wild prawn, farmed prawn and finfish industries provides the instrumental cases to the study. We collected data both quantitatively and qualitatively to gain more insight on the cause-effect relationship among variables (Eisenhardt 1989). Then, we analysed data with a structural equation model, whose multivariate statistic approach allows a rigorous analysis of the relationships between latent variables such as market-sensing and customer-linking capabilities and attitudes. Preliminary results can be summarized as follows. First, an estimation of profit margins that different customers make along the chain and an assessment of customers' needs, when customers'concentration and rivalry along the chain is low, are crucial to foster small farms' capabilities. Second, informal networks play a key role for fostering these capabilities from few small firms to the majority of the target.
    Keywords: Agribusiness, Marketing,
    Date: 2011
  9. By: Ana Rita Gomes; Horácio Crespo Faustino
    Abstract: This study analyses the main determinants of exports and research and development (R&D) expenses of small and medium enterprises (SME) and large companies operating in Portugal during the period 2004- 2008. From a sample of 200 SMEs and 30 major exporting companies, the study uses a panel data analysis and fixed-effects and random-effects estimators to estimate the effects on exports and on R & D. Regarding exports, the study found a positive effect in terms of increased productivity and R & D in both SMEs and large companies. The results also suggest that SMEs that are owned by foreign enterprises export more than national SMEs. In relation to the determinants of spending on R & D, the study concludes that the increase in equity and net income has a positive effect on R & D spending in large companies, while in SMEs, increased expenditure on R & D is a consequence of increasing exports, whereas the increase in net income has a negative effect on R& D
    Keywords: Exports, R & D, Enterprise, SME, Panel Data, Portugal
    Date: 2011–01
  10. By: Hingley, Martin; Boone, Julie; Haley, Simon
    Abstract: This study aims to understand local food and explore the barriers to development for small innovative food businesses. Research was conducted through depth interviews and a survey in NorthâWest England. Results indicate that small business success can be subjective and performance dependent on business aims. Identified were issues concerning access to finance, burden of regulations and the need for support from industry networks and government. Lack of an official and recognised definition of the term âlocal foodâ had implications for marketing strategy. Small businesses recognise that customers are increasingly concerned with food provenance and traceability, but that they and their representative associations need to do more to make these links.
    Keywords: Local, food, smallâbusiness, growth, UK, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods,
    Date: 2010–10

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