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on Entrepreneurship |
| By: | Audretsch, David B. (Indiana University); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper focuses on valuation issues and methods that are related to a closely-held entrepreneurial enterprise. This focus is motivated by the fact that the number of small closely held business start-ups, which we refer to broadly by the term entrepreneurial enterprises, continues to grow year after year, and new business ventures remain the primary source for employment growth in the United States and most industrialized nations. And, the topic of the valuation of an entrepreneurial enterprise has for the most part been ignored. The traditional approaches to the valuation of small closely held entrepreneurial enterprises are, in our view, wanting in a number of important respects. Simply, traditional valuation methods are modeled in a manner that is applicable to a going-concern business with a history of sales and revenues. That is not the case for an entrepreneurial enterprise as we define it, and thus the use of traditional valuation methods is questionable. |
| Keywords: | Entrepreneurship; Valuation; Closely-held Business |
| JEL: | L26 O31 |
| Date: | 2011–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_020&r=ent |
| By: | Audretsch, David B. (Indiana University); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | The purpose of this paper is to identify and unravel the disparate views toward innovation prevalent within the economic community and to link them to the various public policy approaches. These various schools of thought, or ways of thinking about the economy in general and the role of entrepreneurship and innovation in particular, not only shape how innovation and entrepreneurial activity are valued, but also the overall policy debate concerning innovation and entrepreneurship. Unraveling of these views sets highlights the disparate way in which entrepreneurial activity leading to innovation is valued. |
| Keywords: | Entrepreneurship; Innovation; Economic Theory |
| JEL: | E10 L26 O31 |
| Date: | 2011–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_019&r=ent |
| By: | Jean Bonnet, University of Caen Basse-Normandie - CREM-CNRS, France; Thomas Brau, University of Caen Basse-Normandie - CREM-CNRS, France; Antonia Guijarro Madrid, Associate professor Accounting and Finance Department, Technical University of Cartagena (UPCT). Spain |
| Abstract: | The creation of an innovative firm as a way to remedy the professional dissatisfactions of salaried people has been evoked early in the literature (Shapero 1975, 1977). In this paper, while covering the « elementary components » of global dissatisfactions we focus on eight specific fields: creativity, intellectual stimulation and variety related to the expression of intellectual capacities ; management, independence, prestige characterizing the attachment to executive job ; altruism and tangible work related to the purpose of work (helping others and getting concrete results of one’s labor). Results show that the creation of innovative firms takes place as an effective way to solve in some fields « what was not going well » in the salaried work. These results make it possible to detect profiles of salaried people looking for professional change who might be interested by the wide possibilities offered by the innovative firm for their choice of new orientations. |
| Keywords: | Innovative entrepreneurship, Psychology of the entrepreneur, Job satisfaction, Professional dissatisfactions, Professional values |
| JEL: | L26 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201121&r=ent |
| By: | Jean Bonnet, University of Caen Basse-Normandie - CREM-CNRS, France; Sylvie Cieply, University of Caen Basse-Normandie - CREM-CNRS, France; Marcus Dejardin, FUNDP - University of Namur, CERPE, Belgium. |
| Abstract: | This article investigates the interrelationships between finance and entrepreneurship by exploring regional discrepancies in France. The focus is (1) on regional differences in financial relationships, (2) on the way these relations influence financial constraints on new firms and (3) on the complementary/substitutable effects between funds. No path of exclusion is identified. Rather, firms that are self-constraining or suffer from a weak credit rationing are the ones that later on develop intensive relationships with banks. Substitution exists in almost all the French regions. Results suggest the departure point of an original pecking order theory according to the entrepreneurial intensity of regions. |
| Keywords: | financial constraints, credit rationing, financial relationships, new firms, regional development, regional disparities |
| JEL: | G20 M13 R10 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201127&r=ent |
| By: | Yuan-Cheih Chang; Phil Yihsing Yang; Tung-Fei Tsai-Lin; Hui-Ru Chi |
| Abstract: | This paper examines how universities can develop a new organizational structure to cope with the rise of academic entrepreneurship. By deploying the Pasteurian quadrant framework, knowledge creation and knowledge utilization in universities are measured. The relationships between university antecedents, Pasteurian orientation, and research performance are analyzed. A survey of university administrators and faculty members collected 634 responses from faculty members in 99 departments among 6 universities. The findings indicate that university antecedents of strategic flexibility and balancing commitment contribute to a greater Pasteurian orientation in university departments. The higher degree of Pasteurian orientation has significantly positive impacts on the performance both of knowledge creation and knowledge utilization. Moreover, the Pasteurian orientation acts as a mediator between university antecedents and research performance. Using cluster analysis, the departments are categorized into four groups. The differences between university- and department- factors in these four groups are examined and discussed. We conclude that not all university departments should move toward the Pasteurian group, and there are specific organizational and disciplinary factors resulting in mobility barriers among groups. Policies to encourage academic entrepreneurship should consider these mobility barriers, along with this new governance of science. |
| Keywords: | Academic entrepreneurship, Pasteur’s quadrant, research excellence, research commercialization |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:11-07&r=ent |
| By: | Kneiding, Christoph (LFS Financial Systems); Kritikos, Alexander S. (DIW Berlin) |
| Abstract: | This paper investigates whether self-employed households use consumer loans – in particular instalment loans and overdrafts – to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analyzing the correlation between consumer loan take-ups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible. |
| Keywords: | small business finance, consumer credit, financial intermingling |
| JEL: | G32 D12 D14 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6093&r=ent |
| By: | Ejaz Ghani; William R. Kerr; Stephen D. O'Connell |
| Abstract: | We analyze the spatial determinants of female entrepreneurship in India in the manufacturing and services sectors. We focus on the presence of incumbent female-owned businesses and their role in promoting higher subsequent female entrepreneurship relative to male entrepreneurship. We find evidence of agglomeration economies in both sectors, where higher female ownership among incumbent businesses within a district-industry predicts a greater share of subsequent entrepreneurs will be female. Moreover, higher female ownership of local businesses in related industries (e.g., those sharing similar labor needs, industries related via input-output markets) predict greater relative female entry rates even after controlling for the focal district-industry’s conditions. The core patterns hold when using local industrial conditions in 1994 to instrument for incumbent conditions in 2000-2005. The results highlight that the traits of business owners in incumbent industrial structures influence the types of entrepreneurs supported. |
| JEL: | J16 L10 L26 L60 L80 M13 O10 R00 R10 R12 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17596&r=ent |
| By: | Andersson, Lina (Linnaeus University); Hammarstedt, Mats (Linnaeus University); Hussain, Shakir (University of Birmingham); Shukur, Ghazi (Jönköping International Business School & Linnaeus University) |
| Abstract: | We investigate the importance of ethnic origin and local labour markets conditions for self-employment propensities in Sweden. In line with previous research we find differences in the self-employment rate between different immigrant groups as well as between different immigrant cohorts. We use a multilevel regression approach in order to quantify the role of ethnic background, point of time for immigration and local market conditions in order to further understand differences in self-employment rates between different ethnic groups. We arrive at the following: The self-employment decision is to a major extent guided by factors unobservable in register data. Such factors might be i.e. individual entrepreneurial ability and access to financial capital. The individual’s ethnic background and point of time for immigration play a smaller role for the self-employment decision but are more important than local labour market conditions. |
| Keywords: | Self-employment; immigrant background; local labour market |
| JEL: | J15 R23 |
| Date: | 2011–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0261&r=ent |
| By: | Pedro Oliveira (Faculdade de Engenharia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF) |
| Abstract: | Given the (increasing) view point that firms’ internationalization strategy is the unique path to overcome the Portuguese dismissal economic growth, the present paper offers a comprehensive picture of the internationalization behavior of Portuguese SME, constituting therefore an important tool for political action. On the basis of the literature review and the factorial and cluster analyses performed, we propose three main segmentation criteria, one (‘Whole encompassing segmentation’: Experienced Medium Low-Tech firms; Low skill, Low-Tech firms; Young High-Tech firms) based on language skills, SME business experience, foreign market dependency, introduction of organizational innovation, exporting to ‘High income countries’ and education level of executive teams. The second segmentation proposal (‘Intermediate segmentation’: Young small-sized firms; Young micro-sized firms; Mature small-sized firms; Young medium-sized firms; Mature medium-sized firms; Foreign equity firms; Highly productive firms) has as criteria the firm size, the SME export intensity and industry. The last segmentation proposal (‘Parsimonious segmentation’: Medium-sized firms; Small-sized manufacturing firms; Micro-sized firms; Non-manufacturing small-sized firms; Export active small-sized firms; Potential exporters; Promising exporters firms) is based on SME size, business experience, foreign capital presence, and average productivity. Given the need for a parsimonius segmentation criterion, we convey that the most adequate segmentation criterion is the one combining SME size, export intensity and industry. This restricted number of criteria does not, however, affect the quality of the proposed SME segmentation, and has the advantage of being stasticaly adequate and user/cost friendly. |
| Keywords: | Internationalization performance determinants, Portugal, Segmentation, SME |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:439&r=ent |
| By: | Healy, Joshua (NILS, Flinders University); Mavromaras, Kostas G. (NILS, Flinders University); Sloane, Peter J. (Swansea University) |
| Abstract: | Skill shortages are often portrayed as a major problem for the economies of many countries including the Australian economy. Yet, there is surprisingly little evidence about their prevalence, causes and consequences. This paper attempts to improve our understanding about these issues by using econometric methods to analyse the Business Longitudinal Database, an Australian panel data-set with information about skill shortages in small- and medium-sized businesses during 2004/05. We use this information to: (1) explore the incidence of skill shortages and the business attributes that are associated with them; (2) identify which businesses face more complex skill shortages, as measured by the number of different causes reported simultaneously; and, uniquely, (3) examine how this complexity affects businesses' responses to skill shortages and aspects of their subsequent performance. We show that complex skill shortages are more likely than simpler (single-cause) skill shortages to persist and to trigger defensive responses from businesses. We reject the conception of skill shortages as a homogenous phenomenon, and demonstrate the importance of distinguishing between skill shortages according to whether they have simple or complex causes. |
| Keywords: | skill shortages, small medium enterprises |
| JEL: | J0 J20 J23 J24 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6097&r=ent |
| By: | Oliver Baumann; Nils Stieglitz |
| Abstract: | This paper investigates the value of high-powered incentives for motivating search for novelty in business organizations. While organizational search critically depends on the individual efforts of employees, motivating search effort is challenged by problems of unobservable behavior and the misalignment of individual and organizational interests. Prior work on organizational design thus suggests that stronger incentives can overcome these problems and make organizations more innovative. To address this conjecture, we develop a computational model of organizational search that rests on two opposing effects of high-powered incentives: On the one hand, they promote higher effort by increasing the potential rewards from search; on the other hand, they increase the competition among ideas, as the ability of an organization to implement and remunerate good ideas is limited by its resource base. Our results indicate that low-powered incentives are effective in generating a sufficient stream of incremental innovations, but that they also result in a shortage of more radical innovations. Stronger incentives, in contrast, do not systematically foster radical innovations either, but instead create a costly oversupply of good ideas. Nonetheless, higher-powered incentives can still be effective in small firms and if strong persistence is required to develop a new idea. Based on the analysis of our model, we develop a set of propositions that appear to be consistent with extant evidence and point to new avenues for empirical research. |
| Keywords: | Organizational search, incentives, innovation, agent-based simulation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:11-08&r=ent |
| By: | Mohammad Movahedi, University of Caen Basse-Normandie - CREM-CNRS, France; Olivier Gaussens, University of Caen Basse-Normandie - CREM-CNRS, France |
| Abstract: | This paper presents an analysis of the relationship between innovation, productivity and exports regarding the SMEs. The main research aim of this study consists in analyzing the hypothesis of firms’ conscious self-selection in the export markets. To measure innovation, we consider the dimensions of technological as well as non technological innovation, as defined by the Oslo Manual (2005). To achieve this, we use the database of SMEs obtained from the survey conducted in the project IDEIS. First, we highlight the existence of export as well as innovation apparent premium, i.e. the advantage of exporting (innovative) firms versus non-exporting (not innovative) ones in terms of productivity. In addition, we demonstrate the effectiveness of the export premium for firms carried out process and organization innovations with the enough exportation. Finally we show the firms’ conscious self-selection in export markets in endogenizing productivity through innovation. |
| Keywords: | Innovation, Productivity, Exportation, Conscious self-selection |
| JEL: | F1 O3 D2 L25 C14 C3 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201123&r=ent |