nep-ent New Economics Papers
on Entrepreneurship
Issue of 2011‒06‒18
six papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. The Skill Balancing Act: Determinants of and Returns to Balanced Skills By Elisabeth Bublitz; Florian Noseleit
  2. Are Self-Employed Really Happier than Employees?: An Approach Modelling Adaptation and Anticipation Effects to Self-Employment and General Job Changes By Dominik Hanglberger; Joachim Merz
  3. The Underground Economy in a Matching Model of Endogenous Growth By Lisi, Gaetano; Pugno, Maurizio
  5. The Energy2B project: stimulating environmental entrepreneurship and building an energy infrastructure through institutional entrepreneurship By Fletcher, Denise; Knol, Erik; Janicki, Marcin

  1. By: Elisabeth Bublitz (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Florian Noseleit (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: Entrepreneurs are found to have balanced skill sets and most have worked in small firms before starting their own business. In light of this, we compare the skill sets of employees working in businesses of different size to the skill sets of entrepreneurs using a rich data set on the applied skills of individuals. This data set allows us to construct an indicator that measures skill balance in the uantity (skill scope) and quality (skill level) dimension. Our results show that employees working in large businesses tend to have a lower skill balance than those working in small businesses; yet, the skill balance of entrepreneurs remains the largest. The impact of human capital formation on skill balance also varies among employees of different business sizes and entrepreneurs. Finally, the estimated returns to balanced skills are largest for entrepreneurs whereas, for employees, these returns decrease as business size increases. However, we find no relationship between balancing skills at lower skill levels and income, indicating that both dimensions - skill level and skill scope - are relevant. We end by discussing the policy implications that can be drawn from our results in regard to skill balance.
    Keywords: entrepreneurship, returns to human capital, balanced skill set, jack-of-all-trades
    JEL: J24 J31 L26 M13
    Date: 2011–06–07
  2. By: Dominik Hanglberger; Joachim Merz
    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 J8
    Date: 2011
  3. By: Lisi, Gaetano; Pugno, Maurizio
    Abstract: A matching model will explain both unemployment and economic growth by considering the underground sector. Three problems can thus be simultaneously accounted for: (i) the persistence of underground economy, (ii) the ambiguous relationships between underground employment and unemployment, and (iii) between growth and unemployment. Key assumptions are that entrepreneurial ability is heterogeneous, skill accumulation determines productivity growth, job-seekers choose whether to invest in education. The conclusions are that the least able entrepreneurs set up underground firms, employ unskilled labour, and do not contribute to growth. Underground employment alleviates unemployment only if the monitoring rate is sufficiently low.
    Keywords: underground economy; entrepreneurship; growth; unemployment; matching models
    JEL: J6 J24 E26 L26
    Date: 2011–06–07
  4. By: Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam); Peter Nijkamp (Department of Spatial Economics, VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis (NIDEA), University of Waikato)
    Abstract: The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants’ location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald’s restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality.
    Keywords: immigration, cultural diversity, economic growth, innovation, spatial autocorrelation
    JEL: J61 O31 R23
    Date: 2011–06
  5. By: Fletcher, Denise; Knol, Erik; Janicki, Marcin
    Abstract: The Energy2B Project is an EU funded innovation stimulating initiative that targets university students at five universities across Europe and encourages them to practice environmental entrepreneurship and turn energy innovation ideas into new business start-ups. The project is administered by a European consortium of commercial and academic co-ordinators through an online web platform. The web-platform is used to develop an energy infrastructure that connects diverse stakeholders (including industrial actors, energy bodies and field experts) through the administration of local idea challenges and energy innovation competitions at a local and European level. In this paper, we discuss how the project contributes to the practice of environmental entrepreneurship and explain the projects theoretical significance as a case of institutional entrepreneurship. We also outline the academic deliverables of the project in terms of individual case studies and a survey that measures the project’s effectiveness in accelerating the practice of environmental entrepreneurship. First results are available in the second quarter of 2011.
    Keywords: environmental entrepreneurship; sustainable entrepreneurship; institutional entrepreneurship
    JEL: I21 Q01 L26
    Date: 2010–11–08
  6. By: Berangere Szostak (COACTIS - Université Lumière - Lyon II : EA4161 - Université Jean Monnet - Saint-Etienne); William Dhuyvetter (COACTIS - Université Lumière - Lyon II : EA4161 - Université Jean Monnet - Saint-Etienne); Gaëlle Dechamp (COACTIS - Université Lumière - Lyon II : EA4161 - Université Jean Monnet - Saint-Etienne)
    Abstract: Cet article traite de l'impact du dirigeant de PME sur l'intégration du design dans la stratégie d'innovation et de créativité des entreprises du territoire ligérien. Par créativité, les chercheurs entendent " un processus menant à la proposition et au développement d'idées nouvelles et potentiellement utiles pour l'organisation " (Léonard et Swap, 1999). Or, les caractéristiques de la PME, telles que les ressources limitées, la personnification de l'entreprise autour de son dirigeant, ainsi que des études empiriques menées par les auteurs conduisent à une conclusion à valider : l'intégration du design dans une PME dépend de la perception que le dirigeant a du design comme une discipline créative professionnelle et aussi de la représentation du designer. La première partie construit cette assertion à partir de la littérature sur la créativité en PME, puis avance 4 hypothèses. La deuxième partie présente la recherche statistique menée auprès de 100 dirigeants de PME de la Loire. Le design peut s'appréhender selon 3 perspectives qui se combinent et s'interpénètrent : il a une fonction ingénierique, dans la mesure où il permet de valoriser les fonctions d'un produit. Il opère également comme instrument de différenciation dans la stratégie conduite par les firmes. Enfin, le design exprime un certain nombre de valeurs artistiques. Les résultats indiquent que plus le dirigeant est ouvert aux valeurs ingénieriques portées par le design, perçu comme un élément de valorisation des fonctions du produit, plus il intègre le design. Les valeurs ingéniériques du design jouent donc un rôle clé dans son intégration au sein de la PME. De même, concernant les valeurs stratégiques véhiculées par le design, nous pouvons affirmer que plus le dirigeant est ouvert à ces valeurs, plus il intègre le design. En outre, plus un dirigeant perçoit le design à travers ses valeurs artistiques, moins il intègre cette discipline dans sa stratégie. Enfin, plus un dirigeant est prêt à laisser de la liberté créative au designer sur le projet, les idées et la technique, moins il intègre le design. La dernière partie suggère de nouvelles pistes de recherche mais aussi des directions managériales pertinentes pour des instances étatiques amenées à encourager la créativité en PME.
    Keywords: Innovation (Créativité organisationnelle), PME, Top management, méthode statistique
    Date: 2011–06–07

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