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on Entrepreneurship |
| By: | Haveman, Heather A.; Habinek, Jacob; Goodman, Leo A. |
| Abstract: | We trace the social positions of the men and women who found new enterprises from the earliest years of one industry’s history to a time when the industry was well established. Sociological theory suggests two opposing hypotheses. First, pioneering entrepreneurs are socially prominent individuals from fields adjacent to the new industry and later entrepreneurs are from an increasingly broad swath of society. Second, the earliest entrepreneurs come from the social periphery while later entrepreneurs include more industry insiders and members of the social elite. To test these hypotheses, we study the magazine industry in America over the first 120 years of its history, from 1741 to 1860. We find that magazine publishing was originally restricted to industry insiders, elite professionals, and the highly educated, but by the time the industry became well established, most founders came from outside publishing and more were of middling stature – mostly small-town doctors and clergy without college degrees. We also find that magazines founded by industry insiders remained concentrated in the three biggest cities, while magazines founded by outsiders became geographically dispersed. Finally, we find that entrepreneurship evolved from the pursuit of a lone individual to a more organizationally-sponsored activity; this reflects the modernization of America during this time period. Our analysis demonstrates the importance of grounding studies of entrepreneurship in historical context. Our analysis of this “old†new media industry also offers hints about how the “new†new media industries are likely to evolve. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt392635v2&r=ent |
| By: | Acs, Zoltan J. |
| Abstract: | Unlike in the past where industrial policy was either focused on creation and growth of state-owned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paper we outline some considerations for such an industrial policy where the entrepreneur.state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur.state nexus is evolving, and that it depends on the stage of development of a particular country. |
| Keywords: | entrepreneurship, industrialization, structural change, industrial policy, innovation, development |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-80&r=ent |
| By: | Andersson, Martin (CIRCLE, Lund University); Klepper, Steven (Carnegie Mellon University) |
| Abstract: | We analyze the rate of formation, the characteristics, and the performance of different types of new firms in Sweden over a decade. Comparisons to Denmark, Brazil, and the U.S. suggest that the environment for new firm formation in Sweden is not markedly different than elsewhere. In line with previous studies, spinoffs of incumbents perform better than other types of new firms, particularly if their parent firm continues to operate. A novel findings is that the rate of employment growth of spinoffs is greater the larger the size of their parent, which contrast sharply with findings for firms with a single owner. |
| Keywords: | Sweden; spinoffs; new firm formation; entrepreneurship; performance; employment growth |
| JEL: | J60 M13 |
| Date: | 2012–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2012_004&r=ent |
| By: | Stuetzer, Michael; Obschonka, Martin; Schmitt-Rodermund, Eva |
| Abstract: | This paper examines the effects and origins of balanced skills among nascent entrepreneurs. In a first step we apply Lazear’s jack-of-all-trades theory to investigate performance effects of a balanced skill set. Second, we investigate potential sources of balanced skills, thereby testing the investment hypothesis against the endowment hypothesis. Analyzing data on high-potential nascent projects, we find support for the notion that balanced skills are important for making progress in the venture creation process. Regarding the origins of balanced skills, the data support both hypotheses. In line with the investment hypothesis an early interest in an entrepreneurial career, prior managerial and entrepreneurial experience are significantly related with a more balanced skill set. Supporting the endowment hypothesis, an entrepreneurial personality profile indicating entrepreneurial talent is correlated with a balanced skill set. Our results thus hint at the need for theories on the origins of a balanced skill set that integrate both views. |
| Keywords: | Nascent entrepreneurship; balanced skills; human capital; new venture creation; entrepreneurship |
| JEL: | L26 J24 M13 |
| Date: | 2012–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37524&r=ent |
| By: | Mina Baliamoune-Lutz (Department of Economics, University of North Florida); Pierre Garello (CERGAM-CAE, Aix-Marseille Université) |
| Abstract: | Using macro-level panel data, we examine the effects of taxation and tax progressivity on entrepreneurship in a large group of European countries. We address two main objectives. First, we try to explore whether tax increases discourage entrepreneurial activity, distinguishing between the effects on existing self-employment and new self-employment (nascent entrepreneurship). Second, we investigate the impact of tax progressivity on entrepreneurship, focusing in particular on the impact on new self-employment. We find that tax progressivity at higher-than-average incomes has a robust negative effect on nascent entrepreneurship. We discuss on the policy implications of our results. |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cgm:wpaper:94&r=ent |
| By: | Bruhn, Miriam; Karlan, Dean S.; Schoar, Antoinette S |
| Abstract: | We test whether managerial human capital has a first order effect on the performance and growth of small enterprises in emerging markets. In a randomized control trial in Puebla, Mexico, we randomly assigned 150 out of 432 small and medium size enterprises to receive subsidized consulting services, while the remaining 267 enterprises served as a control group that did not receive any subsidized training. Treatment enterprises were matched with one of nine local consulting firms and met with their consultants once a week for four hours over a one year period. Results from a follow-up survey, conducted after the intervention, show that the consulting services had a large impact on the performance of the enterprises in the treatment group: monthly sales went up by about 80 percent; similarly, profits and productivity increased by 120 percent compared to the control group. We also see a significant increase in the entrepreneurial spirit index for the treatment group, a set of questions designed to elicit the SME owners’ confidence in their ability to manage their business and deal with any future difficulties. However, we do not find any significant increase in the number of workers employed in the treatment group. |
| Keywords: | enterprise growth; entrepreneurship; managerial capital |
| JEL: | D21 D24 L20 M13 O12 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8887&r=ent |
| By: | Dessí, Roberta |
| Abstract: | Innovative start-ups and venture capitalists are highly clustered, benefiting from localized spillovers: Silicon Valley is perhaps the best example. There is also substantial geographical variation in venture capital contracts: California contracts are more 'incomplete'. This paper explores the economic link between these observations. In the presence of significant spillovers, it becomes optimal for an innovative start-up and its financier to adopt contracts with fewer contingencies: these contracts maximize their ability to extract (part of) the surplus they generate through positive spillovers. This relaxes ex-ante financing constraints and makes it possible to induce higher innovative effort. |
| Keywords: | incomplete contracts; innovation; spillovers; venture capital |
| JEL: | D82 D86 G24 L22 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8731&r=ent |
| By: | Fairlie, Robert W; Karlan, Dean S.; Zinman, Jonathan |
| 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. |
| Keywords: | climate coalitions; climate policy; free riding; game theory |
| JEL: | C68 C72 D58 Q54 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8823&r=ent |
| By: | Redford, Dana T. |
| Abstract: | The aim of this paper is to advocate for an informed and concerted effort in developing and supporting public policy for entrepreneurship, with specific emphasis on the need to develop initiatives in education and training, in today and tomorrow’s Portugal. The development of entrepreneurship is viewed as a means to further a more pluralistic, democratic, participatory Portuguese Republic as well as a source for improving the overall efficiency and effectiveness of the country’s economic and social system as the Republica continues. Explicitly, this is a call to academic and civil society organizations to assist in the development of country-specific knowledge on Portugal that will provide the information needed by policymakers and the public- at-large to make informed decisions. Many in Portugal are concerned with fostering a more entrepreneurial and innovative environment, a country in which young people have the mindset and skills necessary to create opportunities for themselves as well as for society. Coordinated, sustained and focused public policy in entrepreneurship education, training and vocational education and training (VET) can provide one of the keys to unleashing this potential. |
| Keywords: | European History, European Studies/Civilization, Entrepreneurial and Small Business Operations, Public Administration, Portuguese Republic, Entrepreneurship & Public Policy, Entrepreneurship |
| Date: | 2012–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:bineur:qt2g79g3zf&r=ent |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholarshave sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt4f7671kn&r=ent |
| By: | Halldin, Torbjörn (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper investigates whether born global firms perform differently compared to other newly founded manufacturing firms. A rigorous quantitative treatment of born global firms has been absent in the international entrepreneurship literature. The quantitative focus of the paper adds to this literature. To a simple OLS estimation is added a matching approach in order to circumvent the absence of counterfactual for born global firms had they not chosen to pursue a born global strategy. Measuring performance five years after firm foundation, born global firms are found to have higher growth in employment and sales per employee but no such effect is found when performance is measured by profitability or labor productivity. For robustness purposes, similar results are found when the analysis is augmented to include a wider spread of born global firm definitions and having performance measured three to seven years subsequent to firm foundation. |
| Keywords: | Born global firms; firm performance manufacturing firms |
| JEL: | F14 L25 L26 M13 M21 |
| Date: | 2012–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0269&r=ent |
| By: | Halldin, Torbjörn (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper studies the performance of KIBS firms that are aimed for global markets from inception. Despite the increasing importance of KIBS, no previous study has investigated born global firms in this sector of the economy. Three definitions are used to categorize firms as born global. Both OLS and a nearest neighbor matching approach are implemented to find evidence of higher growth in employment and sales per employee five years after firm foundation. Finally, the findings are robust to a finer array of born global definitions and time horizons of firm performance. |
| Keywords: | Born global firms; firm performance; knowledge intensive business sector |
| JEL: | F14 L25 L26 M13 M21 |
| Date: | 2012–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0270&r=ent |
| By: | Halldin, Torbjörn (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper investigates whether employee characteristics matter for firm survival. The focus of the paper is on born global firms both within the manufacturing and KIBS industries. A Cox proportional hazard model is implemented to find hazard ratios of the included employee and control variables. The results show little significance of individual employee characteristics as determinant for survival rates when born global firms are investigated. Furthermore, neither spinouts nor firms categorized as future exporters show much significance on individual characteristics. However, when the sample is extended to include the total amount of new firms, we see that individual employee characteristics matter for survival. This is especially true for measurements of education levels, which affect survival rates positively. |
| Keywords: | Born global firms; firm survival; employee characteristics; Cox proportional hazard model |
| JEL: | F14 L25 L26 M13 M21 |
| Date: | 2012–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0271&r=ent |
| By: | Fryges, Helmut; Kohn, Karsten; Ullrich, Katrin |
| Abstract: | We investigate the interdependence of debt financing and R&D activities of young firms. Using micro-level data of the KfW/ZEW Start-up Panel, our estimation results show that firm characteristics are more important than personal characteristics of the founders for explaining young firms' leverage, whereas firm characteristics and human capital of both founders and employees heavily influence R&D intensity. Applying a bivariate Tobit model, we find that there is a positive interdependent relationship between the share of loan financing and R&D intensity. A higher share of loan financing allows for more R&D in young firms and, at the same time, a higher R&D intensity allows for a higher loan share. This relationship cannot be detected by merely estimating single-equation models for R&D intensity and debt financing. -- |
| Keywords: | innovation financing,capital structure,start-ups,KfW/ZEW Start-up Panel,Germany |
| JEL: | G32 O32 L26 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12016&r=ent |
| By: | Doris Neuberger (University of Rostock); Solvig Räthke-Döppner (University of Rostock) |
| Abstract: | Using internal data of a leasing company in Germany, we examine the determinants of the probability and use of leasing by small firms. We find that small and young firms are likely to be constrained on the leasing market but use leasing to increase their debt capacity. Beyond contract- and firm-specific characteristics, demographic and socio-economic characteristics of the entrepreneur matter. Older and higher qualified entrepreneurs have easier access to leasing than those who are younger or non-educated, but the latter lease more than highly educated entrepreneurs. Female and non-married entrepreneurs of young firms use leasing to increase their debt capacity. These results are important for aging populations where the financing of entrepreneurial activities by highly qualified, older and female persons are important to sustain growth. |
| Keywords: | leasing, financial constraints, small firm finance, capital structure, aging population |
| JEL: | D23 D92 G21 G31 G32 J14 J16 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ros:wpaper:122&r=ent |
| By: | Bertoni, Fabio; Tykvová, Tereza |
| Abstract: | Although there seems to be consensus in the literature that venture capital investors increase the innovation output of their portfolio companies, there is little evidence about how investor type (governmental vs. private) and transaction structure (syndicated vs. non-syndicated) moderate this impact. Using a sample of 865 young biotech and pharmaceutical companies from seven European countries, we investigate which form of venture capital is most supportive of innovation. Our results suggest that in companies financed by syndicates and by private venture capital investors, the innovation output increases significantly faster than in non-venture-backed companies. The most supportive form is a heterogeneous syndicate (i.e., consisting of both types of venture capital investors) led by a private investor. -- |
| Keywords: | innovation,patents,private venture capital investors,governmental venture capital investors,syndication,biotech and pharmaceutical companies,Europe |
| JEL: | G24 H0 O3 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12018&r=ent |
| By: | Rahobisoa Herimalala (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211); Olivier Gaussens (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211) |
| Abstract: | Innovation in small and medium-sized enterprises (SMEs) is a source of regional development and enables enterprises to improve their competitiveness. However, the intensification of innovation effort depends upon a better understanding of the innovation process, in particular the assessment of its innovation capacity to process its resources and various activities in efficient manner into better results. This paper deals with innovation process modeling and innovation measurement, in order to provide answers to these recurrent questions of the entrepreneurs in these SMEs. Thus, first we propose a model of innovation process as a collective design process that involves the interplay of two categories of activities, such as exploratory activities and value oriented activities, centered on the entrepreneur. Then from this model, we evaluate: (a) the innovation capacity from the process activities and too the outputs of innovation process; (b) the X-(in)efficiency using multiobjective (MOLP) data envelopment analysis (DEA) model of innovation processes. Through MOLP-DEA method, we decompose the X-inefficiency in technical inefficiency and congestion to highlighting the miss-use or the under-utilization of innovation capacity, as resources of process. Finally we measure X-inefficiency by an overall index taking into account of all aspects of inefficiency as the enhanced DEA Russell graph efficiency measure. For the empirical analysis, we use the data from a representative random sample formed by 80 innovative enterprises of regional SMEs of Normandy in France. The results show that most of innovation processes are X-inefficient in SMEs of Normandy. This X-inefficiency is more characterized by the congestion problem than the technical inefficiency. That shows the difficulties of some entrepreneurs to implement the rules and standards of interplay between some activities. |
| Keywords: | Innovation Process, X-Efficiency, Multiobjective Linear Programming, Data Envelopment Analysis, Russell measure |
| JEL: | C61 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201215&r=ent |
| By: | Cuaresma, Jesus Crespo; Oberhofer, Harald; Vincelette, Gallina A. |
| Abstract: | Using a unique dataset comprising information for more than 900 firms in the machine building sector in Belarus, this paper investigates the determinants of firm growth for an economy where state ownership of enterprises is widespread. It uses panel data models based on generalizations of Gibrat's law, total factor productivity estimates and matching methods to assess the differences in firm growth between private and state-owned firms. The results indicate that labor hoarding and soft budget constraints play a particularly important role in explaining differences in performance between these two groups of firms. |
| Keywords: | Microfinance,Labor Policies,Economic Theory&Research,Economic Growth,Labor Markets |
| Date: | 2012–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6005&r=ent |
| By: | Carlos M. F-Jardón |
| Abstract: | Sources of competitive advantage are firm characteristics that allow setting up in a better position than its competitors. From the Resources Based Theory is usual to consider these sources as internal and external factors of business. Entrepreneur organizes core competences combining these factors. They are competitive advantages when firm gets better performance than the competition. The process to obtain better performance from core competences isn’t well known. In this paper we define fifth core competencies: human and technological resources management, zone resources management, customer management, product marketing and innovativeness. We determine which is the process of influence of core competencies on business performance by PLS techniques. Findings indicate a causal process in generating business performance. Only innovativeness affect to performance. But better innovativeness is achieved combining from human and technological resources. This is improved by zone resources management. In turn, this I determined by management customers, associated with produc6 management. |
| Keywords: | Sources of Competitive Advantage, Resources based Theory; firm performance, SMEs, Core competencies. |
| JEL: | L21 L25 M21 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:vig:wpaper:1106&r=ent |
| By: | Adrián Rodríguez Miranda (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Fiorella Sbrocca (Universidad de la República (Uruguay). Comisión Sectorial de Investigación Científica); Marcelo Fernández Pavlovich (Universidad de la República (Uruguay). Comisión Sectorial de Investigación Científica); Carla Assandri (Universidad de la República (Uruguay). Comisión Sectorial de Investigación Científica) |
| Abstract: | This article aims to present and disseminate the work done in a research funded by the Sectorial Commission for Scientific Research (CSIC, Universidad de la República), which developed a methodology to support micro entrepreneurs at the Local Development Center of North Carrasco in Montevideo. The research developed a methodology of work for he technical teams of the institutions thar promote entrepreneurship in populations with social vulnerability characteristcs, with the objective of promoting capabilities on potential entrepreneurs in order to be protagonists in the construction of their own future as a space of freedom and empowerment. This required the construction of a conceptual framework for a comprehensive approach to the problem, considering: economic-productive subjects; motivations, desires and needs of the potential entrepreneurs; the environment; capacity building; prospective analysis; and the production of subjectivity as an individual and collective process that affects the link between the entrepreneur, its environment and the workplace. Then, this article presents the main issues related to the conceptual development involved in the methodology, as a result of an interdisciplinary approach. Detailsof how the methodology is implemented in practice can be read in a manual (which is the main product of the research) that has been recently published. |
| Keywords: | entrepreneurs, micro productive enterprises, capabilities, methodology, prospective analysis |
| JEL: | L26 A33 B40 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-07-11&r=ent |