nep-ent New Economics Papers
on Entrepreneurship
Issue of 2012‒03‒14
ten papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training By Karlan, Dean
  2. The Formal Sector Wage Premium and Firm Size for Self-employed Workers By Olivier Bargain; Eliane El Badaoui; Prudence Kwenda; Eric Strobl; Frank Walsh
  3. "Surfeiting, the appetite may sicken": Entrepreneurship and the happiness of nations By Naudé, Wim; Amoros, José Ernesto; Cristi, Oscar
  4. New firm creation and failure: A matching approach By Gries, Thomas; Jungblut, Stefan; Naudé, Wim
  5. Smithian Growth Through Creative Organization By Legros, Patrick; Newman, Andrew F; Proto, Eugenio
  6. Entrepreneurship in the transition region: an analysis based on the Life in Transition Survey By Elena Nikolova; Frantisek Ricka; Dora Simroth
  7. Impact of the Global Economic Crisis on Taipei,China’s Industrial Structure and Firm Activity By Jack W. Hou
  8. Freiberufliche Gründungen in Deutschland: Ergebnisse einer erstmaligen Auswertung von Daten der Finanzverwaltung By Kranzusch, Peter; Suprinovic, Olga; Haunschild, Ljuba
  9. Innovationstätigkeit im Mittelstand: Messung und Bewertung By Maaß, Frank; Führmann, Bettina
  10. Hemmnisse und Probleme bei Gründungen durch Migranten By Kay, Rosemarie; Schneck, Stefan

  1. By: Karlan, Dean (Yale University)
    Abstract: We use randomized program offers and multiple follow-up survey waves to examine the effects of entrepreneurship training on a broad set of outcomes. Training increases short-run business ownership and employment, but there is no evidence of broader or longer-run effects. We also test whether training mitigates market frictions by estimating heterogeneous treatment effects. Training does not have strong effects (in either relative or absolute terms) on those most likely to face credit or human capital constraints, or labor market discrimination. Training does have a relatively strong short-run effect on business ownership for those unemployed at baseline, but not at other horizons or for other outcomes.
    JEL: D04 D14 D22 H32 H43 I38 J21 J24
    Date: 2012–01
  2. By: Olivier Bargain (Aix-Marseille School of Economics); Eliane El Badaoui (EconomiX - University Paris 10); Prudence Kwenda (University College Dublin); Eric Strobl (Ecole Polytechnique Paris); Frank Walsh (University College Dublin)
    Abstract: We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and selfemployed workers are broadly consistent with the model.
    Keywords: Self-employment, Managerial ability, Informal sector
    Date: 2012–03–05
  3. By: Naudé, Wim (UNU-MERIT/MGSoG, University of Maastricht, and Maastricht School of Management); Amoros, José Ernesto (School of Business and Economics, Universidad del Desarrollo, Santiago, Chile); Cristi, Oscar (School of Business and Economics, Universidad del Desarrollo, Santiago, Chile)
    Abstract: We know that entrepreneurs - at least those driven by opportunities - can contribute to economic growth, productivity improvements and competitiveness in national economies.. But do they contribute to happiness on the country level? In other words, does the happiness of nations depend on its entrepreneurs? And what about happy nations - are they better places for entrepreneurs to start-up new businesses? In this paper we survey the literature on entrepreneurship and happiness, and use various data sources, including from the Global Entrepreneurship Monitor, to find tentative evidence of an inverse U-shape relationship between (opportunity) entrepreneurship and national happiness. We find little evidence that a nation's happiness drives early-stage entrepreneurial activity but we do find evidence that opportunity-motivated entrepreneurs in happier nations may be less concerned with high firm growth. Thus we conclude that opportunity-motivated entrepreneurship may contribute to a nation's happiness, but only up to a point. Not everybody should become entrepreneurs, and the happiness of a nation cannot be indefinitely increased by boosting the numbers of opportunity entrepreneurs.
    Keywords: Happiness, entrepreneurship, self-employment, life and job satisfaction, development, subjective wellbeing, Global Entrepreneurship Monitor
    JEL: I31 M13 O50
    Date: 2012
  4. By: Gries, Thomas (Economics Department, University of Paderborn); Jungblut, Stefan (Economics Department, University of Paderborn); Naudé, Wim (UNU-MERIT/MGSoG, University of Maastricht, and Maastricht School of Management)
    Abstract: We propose that the rate of creation and failure of new firm start-ups can be modelled as a search and matching process, as in labor market matching models. Deriving a novel Entrepreneurship-Beveridge curve, we show that a successful start-up depends on the efficiency with which entrepreneurial ability is matched with business opportunity, and outline a number of possible applications of this matching approach to formalize the economics of entrepreneurship.
    Keywords: Entrepreneurship, start-ups, labor market matching
    JEL: L26 M13 O10 O14
    Date: 2012
  5. By: Legros, Patrick (ECARES and CEPR); Newman, Andrew F (Boston University and CEPR); Proto, Eugenio (University of warwick)
    Abstract: We consider a model in which appropriate organization fosters innovation, but because of contractibility problems, this benefit cannot be internalized. The organizational design element we focus on is the division of labor, which as Adam Smith argued, facilitates invention by observers of the production process. However, entrepreneurs choose its level only to facilitate monitoring their workers. Whether there is innovation depends on the interaction of the markets for labor and for inventions. A high level of specialization is chosen when the wage share is low. But low wage shares arise only when there are few entrepreneurs, which limits the market for innovations therefore and discourages inventive activity. When there are many entrepreneurs, the innovation market is large, but the rate of invention is low because there is little specialization. Rapid technological progress therefore requires a balance between these opposing e ects, which occurs with a moderate relative scarcity of entrepreneurs and workers. In a dynamic version of the model in which a credit constraint limits entry into entrepreneurship, this relative scarcity depends on the wealth distribution, which evolves endogenously. There is an inverted-U relation between growth rates driven by innovation and the level of inequality. Institutional improvements have ambiguous effects on growth. In light of the model, we offer a reassessment of the mechanism by which organizational innovations such as the factory may have spawned the industrial revolution. Key words: factory system ; industrial revolution ; technological change ; contracts
    Date: 2012
  6. By: Elena Nikolova (EBRD); Frantisek Ricka (EBRD); Dora Simroth (European School for Management and Technology)
    Abstract: Entrepreneurial activity is a key contributor to economic growth, innovation and the development of a market economy in transition countries. Data from the Life in Transition Survey reveal that financial sector development and access to credit are the most important drivers of entrepreneurship. Education is associated with a higher probability of trying to set up a business, but not with more entrepreneurial success. Women are less likely to attempt to set up a venture but no less likely to succeed than men once they try. Furthermore, entrepreneurial activity develops in clusters. An individual is more likely to try – and succeed – in setting up a business in a region that is already home to many entrepreneurs.
    Keywords: entrepreneurship, transition economies, Life in Transition Survey
    JEL: M13 P2 J24
    Date: 2012–02
  7. By: Jack W. Hou (Asian Development Bank Institute (ADBI))
    Abstract: Confronted by the current global economic crisis, Taipei,China’s economy has suffered much like its neighbors. However, Taipei,China is different from other East Asia economies in several aspects. First, Taipei,China’s industrial organization is dominated by small and medium-sized enterprises (SMEs), unlike the chaebols of the Republic of Korea or the Japanese Kabushiki-gaish. Second, Taipei,China has experienced extraordinary “hollowing-out†of its industrial base as many firms (both large and SMEs) have moved their manufacturing operation to People’s Republic of China (PRC). This is also manifested in the fact that Taipei,China has become one of the largest sources of FDI in the PRC, and Taipei,China’s trade dependency with the PRC is ever rising. A silver lining is that when the sub-prime crisis hit the United States and weakened her import demand, the aforementioned hollowing-out meant less direct employment impact on Taipei,China. However, given the dominance of SMEs in Taipei,China (97.6% of business establishments, and 77.1% of employment), it is of vital importance to develop ways to aid SMEs in surviving this crisis. Indeed, the government can utilize this crisis to reform and strengthen SMEs so they can continue to be the backbone of Taipei,China’s economy. In this paper, I discuss the strengths and weaknesses of SMEs in Taipei,China. Policy recommendations are presented to address the weaknesses of the SMEs, including short-run and long-run approaches.
    Keywords: Global Economic Crisis, small and medium enterprises (SMEs), Taipei, China, Industrial Structure
    JEL: G01 G10 F14 O53
    Date: 2011–11
  8. By: Kranzusch, Peter; Suprinovic, Olga; Haunschild, Ljuba
    Abstract: Die Gründungsstatistik des IfM Bonn enthielt bisher keine Angaben zu nichtgewerblichen Gründungen, darunter insbesondere freiberufliche. Zur Ermittlung einer alle Wirtschaftsbereiche umfassenden Gründungszahl wurden erstmals in 15 Bundesländern Angaben zu steuerlichen Anmeldungen bei den Finanzverwaltungen ausgewertet. Hochgerechnet für Deutschland wurden in den Jahren 2008 und 2009 jeweils rund 150.000 freiberufliche Gründungen registriert. Bezogen auf alle Zugänge in die selbstständige Erwerbstätigkeit (ohne Geschäftsführer von Kapitalgesellschaften) einschließlich Nebenerwerb betrug der Anteil der Freien Berufe 21 bzw. 22 %. Dieser Befund bestätigt die Bedeutung der Freien Berufe für das Gründungsgeschehen in Deutschland. -- So far the business start-up statistics as compiled by IfM Bonn did not contain data with regard to 'non-commercial' start-ups, especially in the liberal professions. In order to calculate the total number of start-ups in all economic sectors, IfM Bonn has analysed for the first time tax registration data of enterprise starters which are regularly collected by the tax administration in 15 Federal States. The extrapolation for Germany shows that in the years 2008 and 2009 some 150.000 new businesses were started in the liberal professions. Referring to all new-entrants (without managing directors of incorporated companies) and including part-time self-employment, the share of liberal professions in the total number of start-ups amounts to approx. 21 and 22 % respectively. These findings confirm the economic importance of the liberal professions for the overall level of start-up activities in Germany.
    Keywords: Existenzgründung,Freie Berufe,Gründungsstatistik,Deutschland,Steuerliche Anmeldung,business start-up,liberal professions,start-up statistics,Germany,tax registration
    JEL: C80 J44 L84 M13 O15
    Date: 2012
  9. By: Maaß, Frank; Führmann, Bettina
    Abstract: Gegenstand der vorliegenden Studie ist eine kritische Bestandsaufnahme der Innovationstätigkeit kleiner und mittlerer Unternehmen (KMU) im Vergleich zu Großunternehmen in Deutschland. Hierzu wird die vorhandene Literatur ausgewertet und die existierenden Daten-sammlungen in ihrer Erfassungssystematik analysiert. Die Untersuchung zeigt, dass Großunternehmen häufiger als KMU innovativ sind. Dies ist insbesondere hinsichtlich der technologischen Innovationen zu beobachten. Neueste Berichtssysteme basierend auf der erweiterten OECD-Begriffsdefinition berücksichtigen auch nicht-technologische Innovationen. Hier zeigt sich eine besondere Stärke der KMU. In der Gesamtbetrachtung sind die KMU deutlich häufiger innovativ als bislang angenommen. 78 % der Unternehmen mit 10 bis 49 und 84 % der Unternehmen mit 50 bis 249 Beschäftigten beteiligen sich am Innovationsprozess. Der Anteilswert für die Großunternehmen liegt bei 95 %. -- The objective of this study is to assess the contribution of small and medium-sized enterprises (SMEs) to innovation in Germany. The paper reviews the empirical literature on SMEs' innovation activities and conceptualises indicators to identify the key dimensions of innovation processes and outputs. The analysis of statistical data and surveys from various sources shows that large enterprises on the whole are more often innovative than SMEs. This is particularly the case for technological innovations. As new data based on the OECD wider concept of innovation reveal, the strength of SMEs lies in their non-technological innovation capacity. Covering both types of innovation activities SMEs turn out to be innovative more often than presumed. Indeed, 78 % of all small enterprises with 10 to 49 employees engage in innovation activities. The share of innovators is even higher among the enterprises with 50 to 249 employees (84 %) and the large enterprises with more than 250 employees (95 %).
    Keywords: Innovationsindikatoren,Forschung und Entwicklung (FuE),Patentanmeldungen,technologische Innovationen,nicht-technologische Innovationen,KMU,Deutschland,innovation indicators,R&D measurement,patent data,technological innovation,non-technological innovation,SME,Germany
    JEL: C80 D01 O12 O30
    Date: 2012
  10. By: Kay, Rosemarie; Schneck, Stefan
    Abstract: Obwohl Migranten häufiger gründen als nicht Zugewanderte stellt sich die Frage, ob im Gründungsprozess Hemmnisse und Probleme auftreten, die in besonderer Weise für Migranten wirksam werden. Dieser Frage ist die Studie mittels einer Analyse der rechtlichen Rahmenbedingungen einerseits und empirischer Analysen auf Basis des Gründerpanels des IfM Bonn andererseits nachgegangen. Zwar sind Migranten und nicht Zugewanderte zumeist von denselben Hemmnissen und Problemen betroffen, spezifische Qualifikationsanforderungen im zulassungspflichtigen Handwerk und in den Freien Berufen betreffen aber ausschließlich Migranten, deren im Ausland er-worbene Abschlüsse nicht ohne aufwändiges Verfahren anerkannt werden. Überdies werden Migranten häufiger als nicht Zugewanderte von Finanzierungsproblemen an der (zügigen) Umsetzung ihrer Gründungspläne gehindert. -- Even though immigrants have a higher propensity to start a business, we investigate if there are specific barriers and problems that negatively effect immigrants' start-up activities. The analysis of the regulatory framework conditions shows that specific professional qualification requirements with regard to craft trades liable to registration and various liberal professions restrain solely those immigrants who have acquired the necessary qualifications abroad. Their degrees are only acknowledged in a time-consuming and complex administrative procedure. Empirical analyses using the IfM Bonn Founder Panel show that immigrants and non-immigrants are mostly affected by the same restraints and problems. However, financing problems deter immigrants more often than non-immigrants from (quickly) realising their intention to start a new business.
    Keywords: Gründungspozess,Migranten,Hemmnisse,start-up process,immigrants,restraints
    JEL: D22 M13 J15
    Date: 2012

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