nep-ent New Economics Papers
on Entrepreneurship
Issue of 2012‒02‒08
five papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Does Labor Diversity Promote Entrepreneurship? By Marianna Marino; Pierpaolo Parrotta; Dario Pozzoli
  2. Trends in Entrepreneurial Activity in Central and East European Transition Economies By André van Stel; J. Cieslik Cieslik
  3. Who Starts a Business and Who Is Self-Employed in Germany By Michael Fritsch; Alexander Kritikos; Alina Rusakova
  4. The Effect of Entrepreneurship on Economic Growth in Alabama By Starks, Danyelle
  5. SMEs and the challenge to go public: evidence from a recent survey By Marianna Caccavaio; Jacopo Carmassi; Giorgio Di Giorgio; Marco Spallone

  1. By: Marianna Marino (École Polytechnique Fédérale de Lausanne,); Pierpaolo Parrotta (Department of Economics and Business, Aarhus University, Denmark); Dario Pozzoli (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: We find evidence that workforce educational diversity promotes entrepreneurial behavior of employees as well as the formation of new firms, whereas diversity in demographics hinders transitions to selfemployment. Ethnic diversity favors entrepreneurship in financial and business services.
    Keywords: Labor diversity, entrepreneurship, transitions to self-employment
    JEL: C26 J24 L26
    Date: 2012–01–04
  2. By: André van Stel; J. Cieslik Cieslik
    Abstract: After 1989, radical changes in the level of entrepreneurial activity have taken place in the Central and East European (CEE) region countries, transitioning from the communist to a market economy system. In this paper we explore these developments at the macro level of countries. In particular, we investigate developments in business ownership rates in four CEE transition economies (Czech Republic, Hungary, Poland and Slovak Republic) in the period 1989-2008, and compare them with developments in other OECD countries. To this end we make use of EIM’s COMPENDIA data base, which contains harmonized data on the number of business owners in OECD countries. Data for the four CEE region countries under consideration have recently been added to COMPENDIA. Our analysis reveals that, since the fall of the Berlin Wall in 1989, business ownership rates in the four CEE countries have been converging rapidly towards the levels of other OECD countries, and more specifically, Western European countries. This shows that the communist system did not have prolonged negative effects on the private business sector in these four countries. Instead, based on their institutional and cultural roots, or ‘civilization fundamentals’, these CEE countries were able to rebuild the entrepreneurial sector in a relatively short period of transition. Finally, in spite of the general trend of convergence towards Western European countries, we also find sizable differences among these four CEE countries in the level and development of business ownership since 1989.
    Date: 2012–01–23
  3. By: Michael Fritsch; Alexander Kritikos; Alina Rusakova
    Abstract: Based on representative data, the German Micro-Census, we provide an overview of the development of self-employment and entrepreneurship in Germany between 1991 and 2010, the first two decades after reunification. We investigate the socioeconomic background of these individuals, their education, previous employment status, and their income level. We observe a unique increase in self-employment in Germany by 40 percent which can partly be attributed to the transformation process of East Germany and to the shift to the service sector. We notice a yearly start-up rate of 1 percent among the working population (almost 20 percent of them being restarters), a decision that pays for the majority of individuals in terms of income. Contrary to other countries, in Germany there is a positive relationship between educational levels and the probability of starting a business.
    Keywords: Entrepreneurship, self-employment, start-ups, Germany
    JEL: L26 D22
    Date: 2012
  4. By: Starks, Danyelle
    Keywords: Agribusiness,
    Date: 2012–01–15
  5. By: Marianna Caccavaio (LUISS Guido Carli University); Jacopo Carmassi (LUISS Guido Carli University); Giorgio Di Giorgio (LUISS Guido Carli University); Marco Spallone (Universitˆ degli studi di Chieti e Pescara and LUISS Guido Carli University of Rome)
    Abstract: Italian SMEs go public much less than SMEs located in other European countries, even though their relevance for the national economy is relatively higher in terms of employment and value added. Why do Italian SMEs so scarcely rely on equity as an external source of finance, despite the option of getting listed on SME-dedicated stock market segments? In this paper we address this question by analyzing the responses to a questionnaire that we submitted to a sample of listed firms and institutional investors. We also suggest policy interventions to provide Italian SMEs with the appropriate incentives for listing.
    Keywords: SMEs, IPO, equity financing, financial constraints.
    JEL: G1 G3
    Date: 2012

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