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on Entrepreneurship |
| By: | Taylor, Mark P. |
| Abstract: | We identify patterns of self-employment entry, exit and survival in a sample of EU countries and examine factors that explain individuals self-employment experiences within and between countries. We estimate a range of models, including dynamic random effects models that endogenise the initial condition. Our results highlight similarities and differences between countries, and illustrate the importance of age and previous labour market experiences in determining self-employment flows. We also find a high degree of persistence in self-employment across countries, which is most pronounced in France and Germany and least pronounced in Spain. Our results suggest that flows into self-employment are positively associated with the strictness of employment protection legislation. |
| Date: | 2011–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2011-26&r=ent |
| By: | Paige Ouimet; Rebecca Zarutskie |
| Abstract: | We present evidence that young employees are an important ingredient in the creation and growth of firms. Our results suggest that young employees possess attributes or skills, such as willingness to take risk or innovativeness, which make them relatively more valuable in young, high growth, firms. Young firms disproportionately hire young employees, controlling for firm size, industry, geography and time. Young employees in young firms command higher wages than young employees in older firms and earn wages that are relatively more equal to older employees within the same firm. Moreover, young employees disproportionately join young firms that subsequently exhibit higher growth and raise venture capital financing. Finally, we show that an increase in the regional supply of young workers increases the rate of new firm creation. Our results are relevant for investors and executives in young, high growth, firms, as well as policymakers interested in fostering entrepreneurship. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:11-31&r=ent |
| By: | Tengeh, Robertson Khan /RKT; Ballard, Harry / HB; Slabbert, Andre /AS |
| Abstract: | Using a triangulation of three methods, we devise a framework for the acquisition of the resources vital for the start-up of a business in South Africa. Against the backdrop of the fact that numerous challenges prohibit African immigrants from starting a business, let alone growing the business, we set out to investigate how those who succeed acquired the necessary resources. Within the quantitative paradigm, the survey questionnaire was used to collect and analyze the data. To compliment the quantitative approach, personal interviews and focus groups were utilised as the methods within the qualitative approach paradigm. The research revealed that an African immigrant entrepreneur is most likely to be a male between the ages of 19 and 41 who has been forced to immigrate by political circumstances. Once in South Africa, limited job opportunities forced these immigrants into starting-up a business. In order of importance, financial, informational, human and physical, resources were identified as being critical for the start-up a business. With respect to the acquisition of resources, African immigrant entrepreneurs unwillingly made use of personal savings to finance their businesses during the start-up phase of the business. Financial resource played a double role in that it determined the main sources of physical resources used. From a human resource perspective, African immigrant entrepreneurs preferred employing South Africans during the start-up phase of the business, and the reverse was true during the growth phase. To a limited extent family labour was involved at both the start-up as well as the operation phases of the business; with formal education and prior experience playing an indirect role as far as the human resources mixed were concerned. In terms of information, African immigrant entrepreneurs made use of two primary sources of information namely; their ethnic networks and friends from somewhere else. |
| Keywords: | South Africa; African immigrants; business start-up resources; SMMEs;framework; self employment |
| JEL: | A23 A11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34211&r=ent |
| By: | Aoife Hanley; Joaquín Monreal-Pérez |
| Abstract: | The prevalence of Internet-based sales by exporters vs. non-exporters is highlighted in a recent World Bank Report (Ferro, 2011) suggesting the use of sophisticated processes when selling overseas. We investigate the count of new process/ product innovations for a group of newly exporting Spanish firms vs. a non-exporter control group. We use propensity score kernel matching and difference-in-differences to help deal with endogenous exporting, sunk exporting costs and common macroeconomic shocks. Our results confirm that selection into exporting is largely driven by productivity and industry technological differences, consistent with exporting sunk costs. We find some evidence of ‘technology upgrading’ through higher contemporaneous process innovation rates |
| Keywords: | exporting, innovation, Propensity Score Kernel Matching, Learning-by-exporting |
| JEL: | F14 F23 O3 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1735&r=ent |
| By: | Ejaz Ghani; William R. Kerr; Stephen D. O'Connell |
| Abstract: | We analyze the spatial determinants of entrepreneurship in India in the manufacturing and services sectors. Among general district traits, quality of physical infrastructure and workforce education are the strongest predictors of entry, with labor laws and household banking quality also playing important roles. Looking at the district-industry level, we find extensive evidence of agglomeration economies among manufacturing industries. In particular, supportive incumbent industrial structures for input and output markets are strongly linked to higher establishment entry rates. We also find substantial evidence for the Chinitz effect where small local incumbent suppliers encourage entry. The importance of agglomeration economies for entry hold when considering changes in India’s incumbent industry structures from 1989, determined before large-scale deregulation began, to 2005. |
| JEL: | L10 L26 L60 L80 M13 O10 R00 R10 R12 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17514&r=ent |
| By: | Marco Da Rin; Thomas F. Hellmann; Manju Puri |
| Abstract: | This survey reviews the growing body of academic work on venture capital. It lays out the major data sources used. It examines the work on venture capital investments in companies, looking at issues of selection, contracting, post-investment services and exits. The survey considers recent work on organizational structures of venture capital firms, and the relationship between general and limited partners. It discusses the work on the returns to venture capital investments. It also examines public policies, and the role of venture capital in the economy at large. |
| JEL: | G21 G23 G24 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17523&r=ent |
| By: | Çokgezen, Murat |
| Abstract: | This study has examined the results of SOE policy by comparing two provinces in Turkey, one that was a would-be beneficiary of this policy and the other not. Statistical data and anecdotal evidence from in-depth interviews show that the SOEs increased labor costs, discouraged private entrepreneurship and guided locals to political, rather than productive solutions to their economic problems; regional development in the province in which SOEs dominated the regional economy was hindered. These results are in line with the reported outcomes of SOE policy adopted by Italian governments in order to promote development in southern Italy. |
| Keywords: | state owned enterprises turkey regional development |
| JEL: | O18 L26 |
| Date: | 2011–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:27676&r=ent |
| By: | FARACE, Salvatore (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); MAZZOTTA, Fernanda (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | This paper examines the determinants of innovation and its effects on small- and medium-sized firms We use the data from the OPIS databank, which provides a survey on a representative sample of firms from a province of the Southern Italy. We want to study whether small and medium sized firms can have a competitive advantage using their innovative capabilities, regardless of their sectoral and size limits. The main factor influencing the likelihood of innovation is knowledge, which is acquired through different ways. The econometric methodology consists of two bivariate models in order to estimate the probability of increased sales conditioned to the probability of innovation. We found that knowledge positively influences the probability of innovation; at the same time, knowledge has also a positive indirect effect on the increase of sales through innovation. |
| Keywords: | innovation; small and medium sized firms; human capital; networks; bivariate probit |
| JEL: | C24 C25 O31 |
| Date: | 2011–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0120&r=ent |
| By: | A. Yakovlev; A. Govorun |
| Abstract: | International lessons from emerging economies suggest that business associations may provide an effective channel of communication between the government and the private sector. This function of business associations may become still more important in transition economies, where old mechanisms for coordinating enterprise activities have been destroyed, while the new ones have not been established yet. In this context, Russian experience is a matter of interest, because for a long time, Russia was regarded as a striking example of state failures and market failures. Consequently, the key point of our study was a description of the role and place of business associations in the presentday Russian economy and their interaction with member companies and bodies of state administration. Relying on the survey data of 957 manufacturing firms conducted in 2009, we found that business associations are more frequently joined by larger companies, firms located in regional capital cities, and firms active in investment and innovation. By contrast, business associations tend to be less frequently joined by business groups’ subsidiaries and firms that were non-responsive about their respective ownership structures. Our regression analysis has also confirmed that business associations are a component of what Frye (2002) calls an “elite exchange”– although only on regional and local levels. These “exchanges” imply that members of business associations, on the one hand, more actively assist regional and local authorities in social development of their regions, and on the other hand more often receive support from authorities. However, this effect is insignificant in terms of support from the federal government. In general, our results allow us to believe that at present, business associations (especially the industry-wide and “leading” ones) consolidate the most active, advanced companies and act as collective representatives of their interests. For this reason, business associations can be regarded as interface units between the authorities and businesses and as a possible instrument for promotion of economic development. |
| Keywords: | business associations, economic growth, state-business relations, collective actions |
| JEL: | L31 O17 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:16-11&r=ent |
| By: | Hubert BONIN (GREThA, CNRS, UMR5113 - IEP BORDEAUX) |
| Abstract: | Having already fixed the arguments about French entrepreneurship in a previous on a long term scope, we focus our paper on the French syndrome about low entrepreneurship throughout the challenges of the rebuilding of economic power and growth after WWII within the framework of planification, at times when the very substance of economic elites was at stake among the business associations, the regional communities of business and the state economic apparel. The 1960s-1970s seemed to foster a balance between from a “from the top approach” and a “from the basis” renewal of entrepreneurship, thanks to new layers of entrepreneurial bourgeoisies, either family business or transfers from the state system – France being supposed to become the “South Korea of Europe”. But the crisis of the 1970s-1990s shook this regarnished confidence: doubtful elites reconsidered the “French model” along issues of differenciation and competitiveness, within the mindsets of “eurosclerosis” and a specific type of “declinism”. We’ll thus ponder the evolution of entrepreneurial reactivity throughout the dismantle of traditional family business and industries and the upsurge of new productive models; and once more tackle the argument about the role of the state in fuelling entrepreneurship and about the ever-dreamed rebirth of “productive districts” and creative communities of entrepreneurship. |
| Keywords: | Enterprise, businessmen, economic regions, corporate strategy, productive system, industrial and services specialisation |
| JEL: | L26 L20 N84 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2011-32&r=ent |
| By: | Goxe, François |
| Abstract: | Les concepts d' « internationalisation » et de « réseaux » sont l'objet d'un grand nombre de travaux en gestion sans pour autant qu'un consensus ne s'établisse quant à leurs définitions respectives ou à leurs interactions réciproques. D'après une analyse des littératures relatives à ces concepts, nous proposons une lecture du développement international comme un processus entrepreneurial conduit par un individu grâce notamment à la mobilisation de « réseaux » personnels et se traduisant par une tentative de passage d'un champ social à un autre. Cette grille de lecture conceptuelle est opérationnalisée et appliquée aux cas empiriques d'entrepreneurs de PME françaises tentant de se développer en Chine. Nous analysons les efforts d'internationalisation de ces entrepreneurs comme passage d'un champ à un autre au travers des caractéristiques personnelles des individus (capital de l'entrepreneur), de plusieurs dimensions résiliaires et des résultats concrètement obtenus. Nous discutons finalement des implications, notamment les caractéristiques des entrepreneurs internationaux, des logiques et divisions sociales entre acteurs du développement international et leur impact sur l'internationalisation ainsi que certaines réflexions quant aux structures d'accompagnement international. |
| Abstract: | Although the concepts of « internationalization » and « networks » have attracted considerable attention from researchers in management, no consensus has yet been reached as to their respective definitions or reciprocal interactions. Based on an analysis of extant literature on these concepts, we offer to consider internationalization as an entrepreneurial process led by an individual mobilizing personal « networks » and a passage from one social field to another. This conceptual framework is operationalized and applied to the empirical cases of French SME entrepreneurs approaching China. We analyze entrepreneurs' internationalization efforts as a passage from one field to another through individuals' characteristics (entrepreneur's capital), various network dimensions and concrete results obtained. We eventually discuss the research implications including international entrepreneurs' characteristics, social dynamics and divisions among international development actors, their impact upon internationalization along with some practical implications for international development agencies. |
| Keywords: | China; case study; Social capital; Networks; Entrepreneurship; internationalization; Chine; étude de cas; Bourdieu; réseaux; entrepreneuriat; internationalisation; Capital social; |
| JEL: | L14 L26 Z13 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/7231&r=ent |