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on Entrepreneurship |
| By: | Delmar, Frédéric (Research Institute of Industrial Economics and Center for Research in New Venture Creation and Growth); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Hellerstedt, Karin (Jönköping International Business School) |
| Abstract: | Endogenous growth theory is based on the notion that technological knowledge stimulates growth, yet the micro foundations of this process are rarely investigated and remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape for technology entrepreneurs to launch and grow new ventures. We investigate these theoretical contingencies of endogenous growth with two research questions at two levels of analysis: First, do industries with a greater need for new technology-based entrepreneurship grow disproportionately faster than other industries? Second, do the knowledge spillover effects foster the growth of new technology based firms contingent on certain industry structures? These questions are examined empirically, using a comprehensive employee-employer data set on the science and technology labor force in Sweden from 1995 to 2002. |
| Keywords: | Endogenous Growth; Entrepreneurship; Industry Evolution |
| JEL: | D24 L11 L26 M13 |
| Date: | 2011–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0165&r=ent |
| By: | Hyytinen, Ari; Ilmakunnas, Pekka; Toivanen, Otto |
| Abstract: | The returns to entrepreneurship are monetary and non-monetary. We offer new evidence on these returns using a large sample of genetically identical male twins. Our within-twin analysis suggests that OLS estimates are downwards, and traditional first-differenced panel data estimates upwards biased. We find no differences in the earnings of men with either low or high education. Our within-twin analysis of non-monetary returns shows that entrepreneurs with low education work longer hours and have greater responsibilities, but also face a reduced risk of divorce and less monotonous work tasks. The same does not apply to highly educated entrepreneurs. |
| Keywords: | entrepreneurship; earnings; twin data; education; monetary returns; nonmonetary returns; selection |
| JEL: | J24 L26 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30076&r=ent |
| By: | Hanglberger, Dominik (Leuphana University Lüneburg); Merz, Joachim (Leuphana University Lüneburg) |
| Abstract: | Empirical analyses using cross-sectional and panel data found significantly higher levels of job satisfaction for self-employed than for employees. We argue that those estimates in previous studies might be biased by neglecting anticipation and adaptation effects. For testing we specify several models accounting for anticipation and adaptation to self-employment and job changes. Based on data from the German Socio-Economic Panel Survey (SOEP) we find that becoming self-employed is associated with large negative anticipation effects. In contrast to recent literature we find no specific long term effect of self-employment on job satisfaction. Accounting for anticipation and adaptation to job changes in general, which includes changes between employee jobs, reduces the effect of self-employment on job satisfaction by 70%. When controlling for anticipation and adaptation to job changes, we find no further anticipation effect of self-employment and a weak positive but not significant effect of self-employment on job satisfaction for three years. Thus adaptation wipes out higher satisfaction within the first three years being self-employed. According to our results previous studies at least overestimated possible positive effects of self-employment on job satisfaction. |
| Keywords: | job satisfaction, self-employment, hedonic treadmill model, adaptation, anticipation, fixed-effects panel estimations, German Socio-Economic Panel (SOEP) |
| JEL: | J23 J28 J81 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5629&r=ent |
| By: | Jose Maria Millan (University of Huelva, Spain); Emilio Congregado (University of Huelva, Spain); Concepcion Roman (University of Huelva, Spain); Mirjam van Praag (ACE, University of Amsterdam); Andre van Stel (EIM Business and Policy Research, Zoetermeer, the Netherlands) |
| 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 <I>j</I> and year <I>t</I> 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. |
| Keywords: | entrepreneurship; performance; survival; personnel; education |
| Date: | 2011–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110066&r=ent |
| By: | Heli Koski; Mika Pajarinen |
| Abstract: | Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies. |
| Keywords: | public subsidies, technology policy, growth, Finland |
| JEL: | J23 L10 O33 |
| Date: | 2011–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1246&r=ent |
| By: | Ayyagari, Meghana; Demirguc-Kunt, Asli; Maksimovic, Vojislav |
| Abstract: | This paper describes a unique cross-country database that presents consistent and comparable information on the contribution of the small and medium enterprises sector to total employment, job creation, and growth in 99 countries. The authors compare and contrast the importance of small and medium enterprises to that of young firms across different economies. They find that small firms (in particular, firms with less than 100 employees) and mature firms (in particular, firms older than 10 years) have the largest shares of total employment and job creation. Small firms and young firms have higher job creation rates than large and mature firms. However, large firms and young firms have higher productivity growth. This suggests that while small firms employ a large share of workers and create most jobs in developing economies their contribution to productivity growth is not as high as that of large firms. |
| Keywords: | Labor Markets,Microfinance,Small Scale Enterprise,Labor Policies,Emerging Markets |
| Date: | 2011–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5631&r=ent |
| By: | Xu, Zhiwei; Fan, Haichao |
| Abstract: | Our structural VAR shows that the new business formation in U.S. data has similar positive co-movement pattern as common aggregate variables in response to a favorable anticipated shock about technology. However, incorporating firm dynamics into Jaimovich and Rebelo's (Jaimovich and Rebelo, 2009, American Economic Review) model cannot explain our empirical fi nding. Even worse, the model predicts an aggregate recession instead of a boom. Then, we show that this problem can be resolved with a minor modification by introducing endogenous survival rate of the new entrants. |
| Keywords: | Firm Dynamics; Aggregate Co-movement; Expectation Driven Business Cycle; News Shocks |
| JEL: | E32 E22 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30203&r=ent |
| By: | Rola Nabil El Kabbani (Faculty of Management Technology, The German University in Cairo); Christian Kalhoefer (Faculty of Management Technology, The German University in Cairo) |
| Abstract: | Even though small and medium enterprises (SMEs) represent the majority of the Egyptian firms, their value added is relatively low. According to previous research, SMEs face a financing gap that causes undercapitalization and represents an obstacle that hinders SMEs from growth. This paper analyzes the current situation of SMEs in Egypt and addresses the question whether the financing problem still exists. In addition, we discuss the role of venture capital as a possible source of financing. Based on data which has been gathered using questionnaires, it is investigated whether Egyptian SMEs do know and would accept venture capital financing for their businesses. Our results show that access to finance is still a significant bottleneck for Egyptian SMEs. Venture capital financing could help to close this financing gap. |
| Keywords: | SME, Financing Gap, Venture Capital |
| JEL: | G24 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:guc:wpaper:28&r=ent |
| By: | Liargovas , Panagiotis G.; Daskalopoulou, Irene F. |
| Abstract: | The present study analyzes the location of new economic activities in the 51 Greek prefectures (NUTS III level) as the outcome of agglomeration economies and other factors that are acknowledged as determinants of new firm location. Cross-section data referring to the location choices of firms in manufacturing, commerce, services and tourism within 2005 are used. Results indicate that agglomeration effects largely determine a region’s attractiveness and appropriateness as an investment location. In addition, the effect of other factors such as demand, expected profit and cost conditions is identified as important. Interestingly, regional characteristics seem to affect in different ways the location of start-ups belonging to different industries. |
| Keywords: | entrepreneurship; start-ups; location; agglomeration economies; regional development; data envelopment analysis; Greece |
| JEL: | L26 R11 R38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30116&r=ent |
| By: | Barbara Liberda (Faculty of Economic Sciences, University of Warsaw); Marek Pęczkowski (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | The aim of this paper is to identify how the mobility between different types of broadly defined occupation (hired work, self-employment in industry, services and agriculture or social security beneficiaries) changes personal income of individuals. We apply the Markov matrices to the panel data on 30540 individuals for 2007-2008 from the Polish Household Budget Surveys. Our hypothesis is that a change of occupation affects individual capability to earn income, controlling for the occupation a person quits and the occupation a person starts, as well as age, education level and a permanent or temporary character of work. We test our hypothesis using the regression analysis. Our results show that the inter-occupational mobility matters mostly for those quitting hired work for self-employment, for the better educated, as well as for respondents above 60 years of age. |
| Keywords: | income, earning, mobility, occupation, hired work, self-employment |
| JEL: | D11 D12 D14 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2011-09&r=ent |
| By: | Toru Kikuchi; Ngo Van Long |
| Abstract: | The purpose of this study is to illustrate, using a simple model of monopolistic competition with multi-product firms, how trade liberalization affects the degree of foreign brand penetration. We model this in terms of the profit incentives for domestic entrepreneurs to choose to offer domestic brands or foreign (imported) brands, and to determine the range of varieties within each brand. As trade costs decrease, in the medium run the provider of each foreign brand will widen its range of varieties, while the provider of each domestic brand will narrow down its range of varieties. However, in the long run, more domestic entrepreneurs choose to become foreign brand providers and the range of each foreign brand becomes narrower, relative to the initial equilibrium. <P>Nous étudions l’effet de la libéralisation du commerce international sur la prolifération des marques étrangères sur le marché du pays domestique. Les entrepreneurs du pays domestique font leur choix entre la production des produits locaux et la distribution des produits étrangers. Suite à la baisse des coûts d’importation, les importateurs élargissent l’éventail des variétés de produits importés. La croissance de la proportion des entrepreneurs qui se contentent d’importer entraine la croissance des marques étrangères sur le marché local, ce qui finalement réduit la taille de firmes importatrices. |
| Keywords: | Foreign brand penetration, multiproduct firms, entrepreneurs, trade liberalization, inverted J-curve effect, Marques étrangères, firmes aux produits multiples, entrepreneurs, libéralisation du commerce international |
| Date: | 2011–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-40&r=ent |
| By: | Sdiri , Hanen; Mohamed, Ayadi |
| Abstract: | It is widely recognized that innovation is the major driver of economic growth and competitiveness. But, some works focus especially on analyzing the determinants and the effects of innovation while distinguishing product innovation to process innovation. This distinction is often regarded as a fundamental assumption but the way in which firms make the decision to innovate remains rarely tested. Based on a sample of 108 Tunisian service firms, the purpose of the paper is to explain the way in which firms make the decision to innovate: simultaneous (one-stage model) or sequential (two-stage model). Given the multiple discrete choices setting, we use a Multinomial Probit model (MNP). We find that the two-stage model has a statistically-significant advantage in predicting the innovation. This result suggests that, in practice, the sequential model illustrate well the innovation making-decision procedures. |
| Keywords: | Innovation; Prise de décision; Secteur des services. |
| JEL: | O33 O31 L80 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23084&r=ent |