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on Entrepreneurship |
| By: | Oded Galor; Stelios Michalopoulos |
| Abstract: | This research suggests that the evolution of entrepreneurial spirit played a signi?cant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, di- minishing the growth potential of advanced economies and contributing to convergence in economic growth across countries. |
| Keywords: | Risk Aversion, Growth, Technological Progress, Evolution, Natural Selection |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2011-9&r=ent |
| By: | Haveman, Heather A.; Habinek, Jacob; Goodman, Leo A. |
| Abstract: | We trace the social positions of the men and women who found new enterprises from the earliest years of one industry’s history to a time when the industry was well established. Sociological theory suggests two opposing hypotheses. First, pioneering entrepreneurs are socially prominent individuals from fields adjacent to the new industry and later entrepreneurs are from an increasingly broad swath of society. Second, the earliest entrepreneurs come from the social periphery while later entrepreneurs include more industry insiders and members of the social elite. To test these hypotheses, we study the magazine industry in America over the first 120 years of its history, from 1741 to 1860. We find that magazine publishing was originally restricted to industry insiders, elite professionals, and the highly educated, but by the time the industry became well established, most founders came from outside publishing and more were of middling stature – mostly small-town doctors and clergy without college degrees. We also find that magazines founded by industry insiders remained concentrated in the three biggest cities, while magazines founded by outsiders became geographically dispersed. Finally, we find that entrepreneurship evolved from the pursuit of a lone individual to a more organizationally-sponsored activity; this reflects the modernization of America during this time period. Our analysis demonstrates the importance of grounding studies of entrepreneurship in historical context. Our analysis of this “old†new media industry also offers hints about how the “new†new media industries are likely to evolve. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:1952031&r=ent |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholarshave sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:1911035&r=ent |
| By: | Gottschalk, Sandra; Niefert, Michaela |
| Abstract: | -- |
| Keywords: | start-ups,performance,gender,female entrepreneurship |
| JEL: | L25 L26 J16 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11019&r=ent |
| By: | Tykvová, Tereza; Schertler, Andrea |
| Abstract: | Drawing on a novel dataset of worldwide venture capital deals, we investigate how venture capitalists (VCs) overcome the complexity of investing in geographically and institutionally distant regions. Our results indicate that syndicating with local VCs is a common way for foreign VCs to gain deal access, overcome the complexity of investing in distant regions and offset their lack of within-country experience. The foreign VC's distance from the portfolio company ceases to be a serious investment obstacle when he can rely on a highly experienced local VC. Our results further suggest that inexperienced VCs, i.e. those VCs with a large need for syndication, increase their chances to invest across borders when they invest in small deals jointly with local inexperienced partners. -- |
| Keywords: | Multiple Regression Analysis,Syndicates,Venture Capital,Internationalization,Distance,Experience |
| JEL: | F21 G24 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11022&r=ent |
| By: | Zuzana Brixiova; Emerta Asaminew |
| Abstract: | Twenty years after the launch of market reforms, productive entrepreneurship and vibrant small and medium-sized enterprises (SMEs) in Ethiopia remain limited, the recent growth acceleration notwithstanding. This paper develops a model of entrepreneurial start ups in an economy with frictions in the product and labor markets and a large informal sector, which characterize the Ethiopian institutional landscape. It then examines several mitigating policies that could improve the suboptimal outcomes. The main findings are that search subsidies would be more effective in encouraging entrepreneurial start ups than wage subsidies, although fewer entrepreneurs may choose to operate in the formal sector than under the latter. Regarding the reform agenda,priority should be put on removing rigidities and establishing property rights. To be effective,both types of subsidies should have a time limit and be phased out with reforms of the business environment, strengthened property rights, and improved labor markets. |
| Keywords: | Model of skills and start ups, labor markets, frictions, informal sector, Africa |
| JEL: | L26 J24 J48 O17 |
| Date: | 2010–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2010-1000&r=ent |
| By: | Marco Marchese; Jonathan Potter |
| Abstract: | Andalusia has experienced remarkable growth over the last decades, only halted by the recent economic crisis. The challenge today is to renew with the "prodigious decade" (mid 1990s-mid 2000s) of Andalusia’s development, which will require endogenous development through entrepreneurship and SME growth. This report analyses Andalusia’s capacity to support entrepreneurship and SME development and how such capacity is affected by local policies. It also identifies the challenges faced by new and small firms in growing; analyses the set of local policies for entrepreneurship and SMEs; detects policy gaps; and provides recommendations to fill such gaps and improve current policies. Best practices from other OECD countries corroborate the recommendations and complement the report. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2011/3-en&r=ent |