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on Entrepreneurship |
| By: | José Ernesto Amoros; Niels Bosma; Jonathan Levie |
| Abstract: | In its first ten years, the Global Entrepreneurship Monitor (GEM) has had three main aims: to measure differences in the level of entrepreneurial activity between countries, to uncover factors determining national levels of entrepreneurial activity and to identify policies that would stimulate entrepreneurship. This paper reviews the theoretical and empirical contributions by the GEM consortium ten years after the presentation of its first Global Report in 1999. The evolution of GEM measures of entrepreneurship is tracked, and the quantity and quality of peer-reviewed scholarship based on GEM data and models are assessed. Prospects and recommendations for the future are noted, as GEM continues to expand and scholars outside the consortium increasingly employ GEM data in their work. |
| Keywords: | Global Entrepreneurship Monitor, Entrepreneurial Activity, Economic Development |
| JEL: | J24 L26 O11 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:gem:wpaper:1105&r=ent |
| By: | Coles, Melvyn G; Kelishomi, Ali Moghaddasi |
| Abstract: | This paper considers new business start-up activity within a stochastic equilibrium model of unemployment. The resulting job creation process is both natural and tractable, and generates equilibrium unemployment and vacancy dynamics which match the volatility and persistence observed in the data. The insight is that the standard Diamond/Mortensen/Pissarides matching framework works beautifully once the free entry of vacancies assumption is replaced by a model of business start-up activity. The approach is particularly important as it is demonstrated that a large part of net job creation in the U.S. economy can be attributed to new business start-ups. |
| Keywords: | aggregate dynamics; equilibrium unemployment; startups |
| JEL: | E24 E32 J63 J64 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8588&r=ent |
| By: | Jean Bonnet, University of Caen Basse-Normandie - CREM-CNRS; Nicolas Le Pape, University of Caen Basse-Normandie - CREM-CNRS; Teresa Nelson, Simmons College School of Management - Boston |
| Abstract: | Essential performance outcomes of the new firm, including survival and growth, are related to financial and operational factors of the firm. We present a model that shows that firm financing via debt has some influence on types of market outreach, survival, and also growth of new firms in France. Using a robust, longitudinal dataset of the population of firms throughout the country established, continuing, and closing over the period of 2002 to 2007 (available through the French government via the SINE Survey: Système d’informations sur les nouvelles entreprises), we show that for a given indebtedness of the new firm, the entrepreneurial behavior generally improves the survival and the growth of new ventures. |
| Keywords: | High growth new firms, Aggressiveness, Indebtedness, Model, Performance. |
| JEL: | L2 C3 C41 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201117&r=ent |
| By: | Klapper, Leora; Richmond, Christine |
| Abstract: | The authors study firm dynamics using a novel database of all formally registered firms in Cote d'Ivoire from 1977 to 1997, which account for about 60 percent of gross domestic product. First, they examine entry and exit patterns and the role of new and exiting firms versus incumbents in job creation and destruction. They find that while the rate of job creation at new firms is quiet high -- at 8 percent on average -- the number of jobs added by new firms is small in absolute terms. Next, they examine survival rates and find that the probability of survival increases monotonically with firm size, but manufacturing and foreign-owned firms face higher likelihoods of exit compared with service oriented and domestically owned firms. They find that higher growth of gross domestic product increases the probability of firm survival, but this is a broad impact with no firm size disproportionately affected. In robustness checks, they find that after 1987 size is no longer a significant determinant of firm survival for new entrants, suggesting that the operating environment for firms changed. Finally, they find that trade and fiscal reform episodes raised the probability of firm exit and attenuated the survival disadvantages faced by smaller firms, but exchange rate revaluation and pro-private sector reforms did not significantly lower the likelihood of exit. |
| Keywords: | Microfinance,Environmental Economics&Policies,Labor Markets,Small Scale Enterprise,Economic Theory&Research |
| Date: | 2011–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5828&r=ent |
| By: | E. Santarelli; H. T. Tran |
| Abstract: | This paper analyzes the relationship between the performance of incumbent firms and the net entry of new firms by combining different theoretical views of entrepreneurship. It shows that new knowledge and ideas created but not commercialized by incumbents are an important source of entrepreneurial opportunities for nascent firms. Different regression models to treat dynamics and endogeneity issues are applied to test the research hypothesis that growth of incumbent firms in a region will stimulate start-up activities by creating new profit opportunities for potential entrepreneurs. Vietnam’s regional micro-data from 2000 to 2008 are used for this test. Four controlling indicators – entrepreneurial demand, market structure, regional economic environment, and market innovativeness – are found to exert a statistically significant effect on new entries. |
| JEL: | L25 L26 O53 R12 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp785&r=ent |
| By: | Cerqueiro, G.M.; Penas, M.F. (Tilburg University, Center for Economic Research) |
| Abstract: | We analyze the effect of changes in U.S. state personal exemptions on the financing structure and performance of a representative sample of start-ups. An increase in the amount of borrower’s personal wealth protected in bankruptcy reduces the availability of bank credit to all start-ups. Owners of unlimited liability businesses, who benefit from the increase in wealth insurance, offset the reduction in bank credit by investing more money in the firm. We find no such response for start-ups whose entrepreneurs’ personal wealth is already protected by limited liability. Consequently, corporations experience lower growth rates and higher failure rates, while proprietorships performance is not negatively affected. |
| Keywords: | Debtor protection;bankruptcy;start-ups;credit availability;agency problems. |
| JEL: | G32 G33 K35 M13 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:2011106&r=ent |
| By: | HASUMI Ryo; HIRATA Hideaki; ONO Arito |
| Abstract: | This paper examines the ex-post performance of small and medium-sized enterprises (SMEs) that obtained small business credit scoring (SBCS) loans. Using a unique Japanese firm-bank matched dataset, we identify whether an SME has obtained an SBCS loan and, if so, from which type of bank: a relationship lender or a transactional lender. We find that the ex-post probability of default after the SBCS loan was provided significantly increased for SMEs that obtained an SBCS loan from a transactional lender. We also find that the lending attitude of relationship lenders in the midst of the recent global financial crisis became much more severe if a transactional lender had extended an SBCS loan to a firm. These findings suggest that SBCS loans by a transactional lender are detrimental to a relationship lender's incentive to monitor SMEs and maintain relationships. In contrast, we do not find such detrimental effects for SBCS loans extended by a relationship lender. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11070&r=ent |
| By: | Jan Lepoutre; Rachida Justo; Siri Terjesen; Niels Bosma |
| Keywords: | Global Entrepreneurship Monitor, Social Entrepreneurship |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:gem:wpaper:1107&r=ent |
| By: | José Ernesto Amoros; Christian Felzensztein; Eli Gimmon |
| Abstract: | Governmental policies tend to support and boost entrepreneurship in peripheral regions in many countries. This research revives the debate about specific regional policies designed to foster local new business creation, and the entrepreneurial framework conditions needed at the regional level for emerging regions such as Latin America. We applied one of the Global Entrepreneurship Monitor’s methodologies, the National Experts Survey, to a sample of 695 key informants in Chile at eight regions of which six are classified as peripheral. Using nonparametric statistics we compared the differences between peripheral and core regions. The main results indicate that peripherally located entrepreneurship experts perceive their regions as in a worse position than centrally located experts in terms of finance access and physical infrastructure. On the other hand, the results indicate that peripheral entrepreneurship experts detect more market dynamism in their regions and surprisingly perceive general policy and government programs as supporting entrepreneurship although the Chilean government had not promoted many regional policies. |
| Keywords: | Entrepreneurship framework conditions, Regional policy, Global Entrepreneurship Monitor, Chile, Entrepreneurship |
| JEL: | L26 O18 R58 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:gem:wpaper:1106&r=ent |
| By: | Sylvie Demurger (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon); Hui Xu (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon) |
| Abstract: | This paper analyzes return migrants' occupational choice upon their return to their home village, by using an original rural household survey conducted in Wuwei county (Anhui province, China) in 2008. We apply two complementary approaches : a horizontal comparative analysis of occupational choice between non-migrants and return migrants, and a vertical investigation of the impact of migration experience on returnees only. Two main findings are drawn up from the estimation of probit models which account for potential selection bias and endogeneity. First, return migrants are more likely to be self-employed and to opt for higher ability jobs than non-migrants. Second, both return savings and the frequency of job changes during migration increase the likelihood for return migrants to become self-employed. These findings suggest that (a) working experience during migration enhances individual's human capital and entrepreneurial ability, and (b) repatriated migration experience is a key stimulating factor in promoting rural entrepreneur activity. |
| Keywords: | Return migrants ; occupational change ; entrepreneurship ; Asia ; China |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00627732&r=ent |
| By: | Hans Landström (CIRCLE, Lund University, Sweden); Gouya Harirchi (Department of Innovation and Organizational Economics, Copenhagen Business School, Denmark); Fredrik Åström (Lund University Libraries, Lund University, Sweden) |
| Abstract: | Entrepreneurship research has a long tradition and since the 1980s the field has grown significantly. In this study we identify the ‘knowledge producers’ who have shaped the field over time and their core entrepreneurship research works. A unique database consisting of all references in twelve entrepreneurship ‘handbooks’ (or stateof- the-art books) has been developed. The chapters in these handbooks were written by experts within the field, and it can be assumed that the most frequently cited references represent ‘core knowledge’ with relevance to entrepreneurship research. From our analysis, it appears that entrepreneurship is a rather changeable field of research, closely linked to disciplines such as ‘management studies’ and ‘economics’. Over time, the field has become more formalized with its own core knowledge, research specialities and an increasing number of ‘insider works’. However, it is still based on some fairly old theoretical frameworks imported from mainstream disciplines, although during the last decade we have seen the emergence of a number of new field-specific concepts and theories. We argue that to successfully develop entrepreneurship research in the future, we need to relate new research opportunities to earlier knowledge within the field, which calls for a stronger ‘knowledge-based’ focus. We would also like to see greater integration between the fields of entrepreneurship and innovation studies in the future. |
| Keywords: | entrepreneurship, research field, handbooks, bibliometric analysis |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20111005&r=ent |
| By: | Ozgen, Ceren (VU University Amsterdam); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato) |
| Abstract: | Due to the growth in international migration in recent decades, the workforce of firms in host countries has become considerably more diverse, both demographically and culturally. It is an important question for firms and for governments to ask whether there are some productivity-enhancing externalities gained from this growing diversity within firms. In recent years migration research has demonstrated positive economic impacts of cultural diversity on productivity and innovation at the regional level. However, there is a dearth of research on the links between innovation and migrant diversity at the firm level. In this paper we construct and analyse a unique linked employer-employee micro-dataset of 4582 firms, based on survey and administrative data obtained from Statistics Netherlands. Excluding firms in the hospitality industry and other industries that employ low-skilled migrants, we use the local number of restaurants with foreign cuisines and the historical presence of migrant communities as valid instruments of endogenous migrant settlement. We find that firms in which foreigners account for a relatively large share of employment are somewhat less innovative. However, there is strong evidence that firms that employ a more diverse foreign workforce are more innovative, particularly in terms of product innovations. |
| Keywords: | immigration, innovation, cultural diversity, knowledge spillovers, linked employer-employee data, Netherlands |
| JEL: | F22 O31 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6000&r=ent |
| By: | Verhees, Frans J.H.M.; Lans, Thomas; Verstegen, Jos A.A.M. |
| Keywords: | Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:115548&r=ent |
| By: | Lopolito, Antonio; Prosperi, Maurizio; Sisto, Roberta; De Meo, Emilio |
| Keywords: | Community/Rural/Urban Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114778&r=ent |
| By: | Antonio Minniti (Facoltà di Economia); Francesco Turino (Universidad de Alicante) |
| Abstract: | Recent empirical evidence provided by Bernard et al. (2010) and Broda and Weinstein (2010) shows that a significant share of product creation and destruction in U.S. industries occurs within existing firms and accounts for a relevant share of aggregate output. In the present paper, and consistently with this evidence, we relax the standard assumption of mono-product firms that is typically made in dynamic general equilibrium models. Building on the work of Jaimovich and Floetotto (2008), we develop an RBC model with multi-product firms and endogenous markups to assess the implications of the intra-firm extensive margin on business cycle fluctuations. In this environment, the procyclicality of product creation emerges as a consequence of strategic interactions among firms. Because of the proliferation effect induced by changes in product scope, our model embodies a quantitatively important magnification mechanism of technology shocks. |
| Keywords: | Multi-product Firms, Business Cycles, Firm Dynamics. |
| JEL: | E32 L11 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2011-20&r=ent |
| By: | Jakub Growiec; Fabio Pammolli; Massimo Riccaboni |
| Abstract: | We provide a detailed analysis of a model of innovation and corporate dynamics that encompasses the Gibrat’s Law of Proportionate Effect and the Simon growth process as particular instances. The predictions of the model are derived in terms of (i) firm size distribution, (ii) the distribution of firm growth rates, and (iii-iv) the relationships between firm size and the mean and variance of firm growth rates. We test the model against data from the worldwide pharmaceutical industry and find its predictions to be in good agreement with empirical evidence on all four dimensions. |
| Keywords: | Business firm size; firm growth distribution; Gibrat's Law; Pareto distribution; lognormal distribution, size-variance relationship. |
| JEL: | C49 L11 L25 L65 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:trt:disawp:2011/08&r=ent |
| By: | Rantamaki-Lahtinen, Leena; Vare, Minna |
| Abstract: | In earlier studies, past succession is found to contribute positively to the farm growth. However, there is lack of information on how are the farms succeeding after the starting phase. In this study, it is analysed how farmers that have recently started their farm enterprise differ from more experienced farmers in some key farm management areas such as farm and farmer characteristics, strategic objectives and development plans. The data were collected by postal survey from Salo region in South-Western Finland. In the study, farmers are divided in to three different groups according to the farmerâs age and experience. According to the results, early phase farmers are in certain areas better equipped than older generations. They have better education and better networks than others. Moreover, the younger entrepreneurs consider their networks more important than their senior colleagues. Like expected, at early phase farmers had invested significantly more and have more liabilities than the others. In addition, the early phase farmers are the most active also for developing their farms. The late phase farmers were the least active, even if they were going to have succession within the next years. This might be problem-atic for the successor, too. However, in order to improve the viability of whole farming sector, the farms should be developed as continuum. |
| Keywords: | farm management, multivariate data analysis, Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:116096&r=ent |
| By: | Josean Garrués Irurzun (Universidad de Granada. Department of Economic Theory and Economic History); Juan Antonio Rubio Mondéjar (Universidad de Granada. Department of Economic Theory and Economic History) |
| Abstract: | Trade flows, mobility of productive factors, development of the transport system and a common export base have been the criteria used when analyzing the processes of economic organization of the territory from a historical perspective. The purpose of this paper is to add a new explanatory variable, based on business relationships. To this end, social network tools have been applied to the promotors of corporations that were domiciled in Andalusia (a region in the south of Spain) between 1886 and 1959. The indicators obtained show that the Andalusian entrepreneurial space had advanced to regional economic integration |
| Keywords: | regional studies, entrepreneurship, social network, Business History |
| JEL: | R12 L14 D85 N94 |
| Date: | 2011–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:gra:fegper:04/11&r=ent |