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on Entrepreneurship |
| By: | Cole, Rebel |
| Abstract: | In this study, we analyze the firm’s choice of legal form of organization (“LFO”). We find that only about one in three firms begins operations as a proprietorship, while almost as many begin as limited-liability companies and as corporations. Moreover, this distribution is remarkably stable over the first four years of the firm’s life. Fewer than one in ten firms changes LFO during its first four years. Those that do change LFO disproportionately move to a more complex form, primarily from proprietorship to a form with limited liability. Our analysis of the firm’s initial choice of LFO reveals that a firm is more likely to choose a more complex LFO when the firm is more complex as proxied by employment size, by offering more complex employee benefit plans, and by offering trade credit. A more complex initial LFO also is more likely when the firm is more highly levered and when its primary owner is more educated; but is less likely when the firm is more profitable, has more tangible assets, uses personal loans for firm financing and when its primary owner is female. Our analysis of the decision to change LFO finds that firms initially organized as LLCs or S-corporations are less likely, while Partnerships are more likely, to change LFO than are Proprietorships or C-corporations. Firms that increase employment or change location between a residence and rented/ purchased space, are more likely to change LFO, as are smaller and more profitable firms. Firms that experience a change in the number of owners (up or down), a decrease in the ownership of the primary owner or a change in industrial classification are more likely to change LFO. Of those firms changing LFO, the choice of a more complex LFO is more likely when the firm has changed location, experienced an increase in the number of owners or the ownership share of the primary owner, but is less likely when the firm has experienced a decrease in the number of owners. |
| Keywords: | corporation; entrepreneurship; Kauffman Firm Survey; LLC; legal form of organization; organizational form; partnership; proprietorship; small business; start-up |
| JEL: | G32 |
| Date: | 2011–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32591&r=ent |
| By: | Hunjra, Ahmed Imran; Ahmad, H. Mushtaq; Rehman, Kashif-Ur-; Safwan, Nadeem |
| Abstract: | The purpose of this paper is to investigate the factors that are influencing the young graduates for intention to create new venture. The study further highlights how the attraction, networking support, entrepreneurial capabilities, self-independence and self-reliance influence the young students to initiate their new businesses. The sample size of this study was 255 final semester students of various disciplines in different universities from Islamabad and Rawalpindi. The survey based questionnaire was used for data collection. Based on findings this study concludes that all variables, included in the study, play a vital role in new venture creation. Therefore, on the basis of findings this study concludes that young students are more motivated towards new venture creation and start their own businesses. |
| Keywords: | Influencing factors; new venture creation; different disciplines; young graduates; motivation |
| JEL: | A20 A23 |
| Date: | 2011–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32679&r=ent |
| By: | Khaleque, Abdul |
| Abstract: | The present study is based on 5208 observations, which is comprised of participant households of microcredit programs, non-participant households of program villages as well as non-participant households from control villages. We found that among the participant households 37% depend on wage as well as self employment activity and 20% is solely dependent on self-employment activity and the remaining depends on dual activity (self-employment as well as wage employment), but among the non-participant households 60% is solely dependent on day labor activity. To find the link between occupation selection and microfinance participation, we use simple as well as multiple regression models like logit, multinomial logit, seemingly unrelated regression, etc. The regression results based on earnings from the elective occupations or number of days worked in that occupation suggests that the surveyed participant households have higher likelihood of being self-employed or to maintain self-employment as well as wage employment at a time to increase their welfare. The shifters due to relaxation of credit constraint or proliferation of access to credit moves toward sole self-employment activity with higher likelihood than the dual activity – to be employed in self-employment as well as wage employment within a given time span. In compendium, we can lucidly claim from this paper that beyond the asset structure of the households such as landholdings, savings, education, etc., the microfinance directly induces self-employment activity or transfer available working days from the day labor activity to self-employment activity and maximize their economic gain such as higher income, savings etc. |
| Keywords: | Credit; Self-employment; Logit; Multinomial logit; Seemingly Unrelated Model |
| JEL: | E24 J22 J24 J23 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32637&r=ent |
| By: | Mano, Yukichi; Iddrisu,, Alhassan; Yoshino, Yutaka; Sonobe, Tetsushi |
| Abstract: | The vast majority of micro and small enterprises in developing countries are located in industrial clusters, and the majority of such clusters have yet to see their growth take off. The performance of micro and small enterprise clusters is especially low in Sub-Saharan Africa. While existing studies often attribute the poor performance to factors outside firms, problems within firms are seldom scrutinized. Entrepreneurs in these clusters are unfamiliar with standard business practices. Based on a randomized experiment in Ghana, this study demonstrates that basic-level management training improves business practices and performance, although the extent of improvement varies considerably among entrepreneurs. |
| Keywords: | Labor Policies,Primary Education,Access&Equity in Basic Education,Education For All,E-Business |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5755&r=ent |