nep-ent New Economics Papers
on Entrepreneurship
Issue of 2011‒08‒09
seven papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. External Ventures: Why Firms Don't Develop All Their Inventions In-house By Russell Thomson; Elizabeth Webster
  2. Gender Differences in Competitiveness, Risk Tolerance, and other Personality Traits: Do they contribute to the Gender Gap in Entrepreneurship? By Werner Boente; Monika Jarosch
  3. Entrepreneurship capital and technical efficiency : the role of new business / firms as a conduit of knowledge spillovers By Laborda, Leopoldo; Guasch, Jose Luis; Sotelsek, Daniel
  5. Making students sensitive to entrepreneurship By Jean Bonnet, University of Caen Basse-Normandie, France - CREM-CNRS; Thomas Brau, University of Caen Basse-Normandie, France - CREM-CNRS; Bernard Cadet, University of Caen Basse-Normandie, France - CREM-CNRS; Antonia Guijarro Madrid, Technical University of Cartagena (UPCT), Spain
  6. Entrepreneurial Finance Meets Organizational Reality: Comparing Investment Practices And Performance Of Corporate And Independent Venture Capitalists By Zur Shapira; Gary Dushnitsky
  7. Die Praxis des Gründungszuschusses : eine qualitative Implementationsstudie zur Gründungsförderung im SGB III By Bernhard, Stefan; Wolff, Joachim

  1. By: Russell Thomson (Melbourne Institute of Applied Economic and Social Research, and Intellectual Property Research Institute of Australia (IPRIA), The University of Melbourne); Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, and Intellectual Property Research Institute of Australia (IPRIA), The University of Melbourne)
    Abstract: In this paper we consider why firms sometimes choose an external development path for their own inventions, despite the costs of contracting and the risks of opportunistic behaviour and expropriation. We model the probability that firms adopt an external development strategy using survey data from over 2700 Australian inventions. Our results indicate that firms pursue external development strategies in response to perceived project-level risk about the technical feasibility of the invention, especially when suported by confidence in the patent system. Our findings also confirm that small to medium size enterprises, highly leveraged large firms and firms with few co-specialized assets are more likely to pursue an external development strategy.
    Keywords: Outsourcing R&D, managing technological risk, licensing innovation
    JEL: O32 O33
    Date: 2011–07
  2. By: Werner Boente (Schumpeter School of Business and Economics, University of Wuppertal); Monika Jarosch (Schumpeter School of Business and Economics, University of Wuppertal)
    Abstract: In this study we empirically investigate the contribution of personality traits to the gender gap in entrepreneurship. Our empirical analyses, which are based on data obtained from a large scale survey of individuals in 36 countries, suggest that a group of personality traits which we call Individual Entrepreneurial Aptitude (IEA) has a positive effect on latent and nascent entrepreneurship among women and men. Moreover, women’s considerably lower level of IEA contributes significantly to the gender gap in entrepreneurship. The lower level of IEA is mainly due to women’s lower levels of competitiveness and risk tolerance. Furthermore, these results are confirmed by the results of a country-level analysis which show that the within-country variation of entrepreneurial activities of women and men is significantly related to within-country variation of IEA.
    Keywords: entrepreneurship, gender gap, personality traits, competitiveness
    JEL: J16 L26
    Date: 2011–07
  3. By: Laborda, Leopoldo; Guasch, Jose Luis; Sotelsek, Daniel
    Abstract: Increasingly, entrepreneurship is being discussed and considered as a source of high economic growth and competitiveness. A conceptual process of creative construction that characterizes the dynamics between entrants and incumbents can prove quite useful to analyze the impact of countries'entrepreneurship capital on economic performance and can be a guide for economic policy. This paper applies a Stochastic Frontier Analysis approach to test the hypothesis that entrepreneurship capital promotes economic performance by serving as a conduit of knowledge spillovers. In addition, kernel density functions are employed to analyze convergence (or divergence) in the efficiency estimated for individual countries. The empirical evidence and results here tend to support the hypothesis. Specifically, the empirical analysis shows that the rate of expenditure on research and development in relation to new businesses registered has a positive and significant effect in increasing technical efficiency. These factors facilitate the dissemination of existing knowledge, develop entrepreneurship capital, and thus provide the missing link to economic performance -- entrepreneurship capital. The authors also show the trends and dynamics of changes in countries’ technical efficiency.
    Keywords: Economic Theory&Research,Agricultural Knowledge&Information Systems,Labor Policies,E-Business,Knowledge for Development
    Date: 2011–07–01
  4. By: Dave Valliere (Ted Rogers School of Management, Ryerson University)
    Abstract: This article is an investigation into the causes of entrepreneurial alertness, the ability of entrepreneurs to spot new business opportunities in the environment. By drawing from decision theory and schema theory, a model is developed to show how changes in the environment are mediated by entrepreneurial alertness and brought to the situated attention of entrepreneurs for evaluation. Entrepreneurial alertness is seen to be the application of unique schemata that allow the entrepreneur to impute meaning to environmental change that would not be imputed by other managers. It is argued that this arises from differences in schematic richness, schematic association, and schematic priming. These three antecedents may therefore form a basis on which enhanced entrepreneurial alertness can be developed
    Keywords: Entrepreneurship; Entrepreneurial alertness, Opportunity spotting; Growth and innovation; SME development
    JEL: M0
    Date: 2011–03
  5. By: Jean Bonnet, University of Caen Basse-Normandie, France - CREM-CNRS; Thomas Brau, University of Caen Basse-Normandie, France - CREM-CNRS; Bernard Cadet, University of Caen Basse-Normandie, France - CREM-CNRS; Antonia Guijarro Madrid, Technical University of Cartagena (UPCT), Spain
    Abstract: The aim of this paper is to present a {proposal to make students sensitive to entrepreneurship} aiming at familiarizing students to the setting up of new firms and stimulating such a course of action. This {{awareness campaign}} would take place during the student's curriculum and rest on a simulation exercise. This campaign is based on the results of a survey conducted at the Technical University of Cartagena (Spain). This study has identified some students’ aspirations to salaried employment and entrepreneurship. This survey also recognized some specific features that the campaign must integrate, in particular the need to make entrepreneurship compatible with the preparation for salaried employment. The results of this study are completed comparing them with the opinion from entrepreneurs of the same region. This comparison highlights some barriers to entrepreneurship among the students population, making it possible to complete the content of the proposed simulation exercise. This paper also highlights the absence of barriers of a psychological nature usually put forward by the literature, such as a low level of the {need for achievement or the propensity for risk-taking}.
    Keywords: career, company, entrepreneurship, making sensitive, student
    JEL: L26
    Date: 2011–05
  6. By: Zur Shapira; Gary Dushnitsky
    Abstract: This paper investigates the effect of compensation of corporate personnel on their investment in new technologies. We focus on a specific corporate activity, namely corporate venture capital (CVC), describing minority equity investment by established-firms in entrepreneurial ventures. The setting offers an opportunity to compare corporate investors to investment experts, the independent venture capitalists (IVCs). On average, we observe a performance gap between corporate investors and their independent counterparts. Interestingly, the performance gap is sensitive to CVCs' compensation scheme: it is the largest when CVC personnel are awarded performance pay. Not only do we study the association between incentives and performance but we also document a direct relationship between incentives and the actions managers undertake. For example, we observe disparity between the number of participants in venture capital syndicates that involve a corporate investor, and those that consist solely of IVCs. The disparity shrinks substantially, however, for a subset of CVCs that compensate their personnel using performance pay. We find a parallel pattern when analyzing the relationship between compensation and another investment practice, staging of investment. To conclude, the paper investigates the three elements of the principal-agent framework, thus providing direct evidence that compensation schemes (incentives) shape investment practices (managerial action), and ultimately investors¡¦ outcome (performance).
    Date: 2011–08
  7. By: Bernhard, Stefan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Wolff, Joachim (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This study regards the implementation of a new start-up subsidy (Gründungszuschuss) for unemployment insurance (UI) benefit recipients in Germany. With its introduction five years ago the new programme replaced two distinct programmes (Ich-AG, Überbrückungsgeld) that promoted transitions from unemployment into self-employment. Since then little has been known about the routines, practices, and organizational mechanisms that guide the implementation of the new subsidy. Our study attempts to fill this gap by studying several questions: What do the employees of the Federal Employment Agency think about the programme and are there problems that are related to its implementation? To what extent are caseworkers willing and able to counsel the unemployed on their way into self-employment? And what changes emerged from the introduction of the Gründungszuschuss as compared to previous programmes of self-employment promotion of UI recipients? To answer these and related questions we undertook a qualitative study in several labour agencies. Executive staff and caseworkers were interviewed using various interviewing techniques. Our key findings are that both executive staff and caseworkers of the Federal Employment Agency appreciate the design of the Gründungszuschuss, particularly its clear guidance with respect to eligibility criteria. For those unemployed who would like to receive the start-up subsidy, caseworkers have to assess the economic perspectives of a start-up based on a business plan and information about a claimant's entrepreneurial ability. Our study shows that the rationale behind these assessments can vary between agencies as well as between caseworkers within an agency." (Author's abstract, IAB-Doku) ((en))
    Keywords: Gründungszuschuss - Erfolgskontrolle, arbeitsmarktpolitische Maßnahme, berufliche Selbständigkeit - Förderung, Teilnehmerstruktur, Wirtschaftszweige, Arbeitsvermittler - Einstellungen
    Date: 2011–07–26

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