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on Entrepreneurship |
| By: | Michael Fritsch; Alina Rusakova |
| Abstract: | Drawing on representative household data from the German Socio-Economic Panel, we examine the role of an early precursor of entrepreneurial development – parental role models – for the individual decision to become self-employed in the post-unified Germany. The findings suggest that the socialist regime significantly damaged this mechanism of an intergenerational transmission of entrepreneurial attitudes among East Germans with a tertiary degree that have experienced a particularly strong ideological indoctrination. However, we find a significant and positive relationship between the presence of a parental role model and the decision to become self-employed for less-educated people. For West Germans the positive relationship holds irrespective of the level of education. |
| Keywords: | Entrepreneurship, parental role models, human capital |
| JEL: | L26 Z1 D03 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp456&r=ent |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Elisabeth Bublitz (Friedrich Schiller University Jena, School of Economics and Business Administration); Alina Rusakova (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | The 40 years of socialist regime in East Germany were characterized by a massive anti-entrepreneurship policy. We investigate the reemergence of entrepreneurship in East Germany during its transformation to a market economy following the collapse of the East German state in 1989. It took about 15 years until self-employment levels in East Germany reached those of West Germany. Despite this catch up, we find a number of peculiarities in East German self-employment that appear to be a continuing legacy of the socialist period. In particular, older and better-educated East Germans have a relatively low propensity for starting an own business. Moreover, East German workers tend to have a lower variety of skills than their West German counterparts, which could explain a lower propensity for start up in the early years after reunification. Despite this socialist imprint, we also find considerable continuity in the levels of self-employment in the 1920s and those after transition to a market economy, suggesting the existence of a long-lasting regional entrepreneurship culture. |
| Keywords: | Entrepreneurship, self-employment, new business formation, transformation, East Germany |
| JEL: | L26 O11 |
| Date: | 2012–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-042&r=ent |
| By: | Michael Fritsch; Michael Wyrwich |
| Abstract: | We investigate the persistence of levels of self-employment and new business formation in different time periods and under different framework conditions. The analysis shows that high levels of regional self-employment and new business formation tend to be persistent for periods as long as 80 years and that such an entrepreneurial culture can even survive abrupt and drastic changes in the politic-economic environment. We thus conclude that regional entrepreneurship cultures do exist and that they have long-lasting effects. |
| Keywords: | Entrepreneurship, self-employment, new business formation, persistence, culture |
| JEL: | L26 R11 O11 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1224&r=ent |
| By: | Mircea Epure; Diego Prior; Christian Serarols |
| Abstract: | Literature highlights the importance of university spin-offs and their assistance mechanisms. However, there is little evidence on how to select and operationalize the appropriate variables for assessing this type of firms. This paper provides tools to estimate and interpret the efficiency of spinoffs embedded in university-based support mechanisms. We thus contribute to the literature in at least two ways. First, we identify the specific inputs and outputs that are required by both the organizational and regional development perspectives. Second, an application considers a unique sample of spin-offs created at Catalan universities within a regional support program. Main descriptive results indicate that many efficient spin-offs have formal technology transfer agreements and emerge from universities with more technological background. Second stage analyses show that higher levels of innovation and specific academic knowledge or experience related with the university of origin are associated with higher efficiency. |
| Keywords: | university spin-off, regional development, efficiency, entrepreneurship, technology transfer, innovation |
| JEL: | M1 R1 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:650&r=ent |
| By: | Eliasson, Gunnar (KTH and Entrepreneurship Forum); Braunerhjelm, Pontus (KTH and Entrepreneurship Forum) |
| Abstract: | Historically, the Baltic Sea Region (BSR) has been an institutionally homogeneous economy, integrated economically and culturally through the sea lanes of the Baltic. After WWII the BSR was broken up into a dual economy, consisting of a poor Soviet block of centrally planned economies, on the one hand, and the industrially advanced BSR economies Finland, Denmark, Germany and Sweden, on the other. 1990 saw the break up of the soviet political system. The liberated, but poor formerly planned economies were left to restore their institutions on their own to that of a market organization. 60 years of Soviet isolation had left the formerly planned BSR economies in an industrially backward state. Critical market functions did not exist, and corrupt institutions made normal business life impossible. Catch up with Western industrial economies therefore became a policy priority. During the 1970s also Western economies introduced elements of central planning in their industrial policy repertoires on the belief that it would improve economic performance. Policies to support “plans” by definition meant restrictions on entrepreneurial activity. By the Soviet break up, however, stagnation had also brought the need for entrepreneurship onto the policy agenda of Western nations. Obstacles to economic progress were gradually being dismantled. These shifts in policy attention in turn relate to the current discussion about globally increasing inequality. Are the economies of the world economy converging onto the same national standards of living, as was believed not long ago, or diverging. The industrial dynamics of the BSR pits those two hypotheses against each other. Will the previously centrally planned soviet economies of the BSR catch up with the living standards of the more market governed Western economies, or lag further behind? Perhaps some “mixed” Western economies with large and rigid public production of welfare services have got stuck with problems similar to those of the formerly planned economies? Do some formerly planned economies that have taken on a strong pro market policy agenda exhibit a superior catch up record to those that have not? The contrasting policy experiences among the BSR economies allow us to compare the catch up records in terms of policies chosen. The formerly planned Baltic economies, excepting Russia, were institutionally and industrially roughly on par with Denmark, Finland and Sweden before the Soviet occupation. The industrial backwardness of the formerly planned economies at the time they were liberated was therefore due to constraints on entrepreneurial initiatives, once imposed by the Soviet Union. So by definition there is a policy task of some magnitude to undo that heritage. More precisely asked, central planning in the formerly planned economies stifled entrepreneurial activities. Can the obstacles to catch-up in the transition economies through an entrepreneurially moved reallocation of resources then be overcome through centrally directed policy? If not, which is a key question of this paper, how can the diverse information and knowledge embodied in the agents of markets be mobilized for that task? Who knows best, the central policy maker, supported by his economic advisors, or the collective knowledge of all economic actors as intermediated through dynamically competitive product and factor markets. The historic developments in the BSR have therefore accidentally staged a unique economic policy experiment that allows us to distinguish between the relative roles in economic progress of improvements in local entrepreneurial environments (a policy task) and of individual entrepreneurial action. In carrying out that analysis we draw on the detailed statistical analysis in Braunerhjelm & Eliasson (2011). The Swedish evolutionary micro firm to macro model has provided a theoretical structure, both to support our reasoning on the catch-up dynamics, and to provide quantitative evidence for the empirical evaluation. Empirical research suggests that growth through entrepreneurial new firm formation is a slow process that may however suddenly and unexpectedly gain momentum. The import of new technology is the fast way to catch up. Both forms of innovation and entrepreneurship, however, benefit from the same positive entrepreneurial climate. On this we found that successful catch up among the formerly planned BSR economies still has a long way to go, and that political impatience in waiting for the dividends of economic liberalization to become available may have been destructive. Policy focus should therefore be set on the local entrepreneurial environments which are in great need of continued improvements to support both new firm formation for long run development, and to induce immediate FDI for the short term. More flexible labor markets will be required to support continued reallocation of resources from inefficient “soviet” installations to productive businesses of western quality. Significant remaining obstacles to trade and ownership transactions across BSR internal borders will have to be removed, so success in catch up should be expected to differ significantly among the BSR countries. We therefore propose a policy competition among those countries in improving their entrepreneurial environments to beat each other in catch-up performance. This policy competition is best enacted individually, without any delaying cooperation among the competing economies and, if individually enacted in a competitive spirit, will benefit both the winners and the entire BSR economy. |
| Keywords: | Central planning; Commercialization competence; Competence bloc; Dual economy; Entrepreneurship; Experimentally Organized Economy (EOE); Foreign Direct Investment (FDI); Policy experiments |
| JEL: | L16 L52 M13 N20 N40 O50 P21 P51 |
| Date: | 2012–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0279&r=ent |
| By: | MORIKAWA Masayuki |
| Abstract: | This paper uses Japanese firm-level data to analyze empirically the financial constraints in intangible investments. We estimate investment functions in which cash flow is used as a key explanatory variable. We then observe differences in the sensitivity of investments to cash flow by the type of assets, industry, firm size, and firm age. According to the estimation results, investments in intangible assets are more sensitive to internal capital compared with investments in tangible assets, suggesting the existence of market failure in the financial markets. This market failure is more serious for small- and medium-sized enterprises (SMEs) and young firms. However, policies to promote investments are concentrated on tangible assets, with the exception of research and development (R&D) investment. This paper suggests that investment tax credits and financial support for SMEs and young firms should focus more on intangible investments. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12045&r=ent |
| By: | Arjan Ruis; Gerard Scholman |
| Abstract: | In deze studie is de relatie onderzocht tussen de leeftijd van de ondernemer enerzijds en doelstellingen, concurrentiestrategieën en bedrijfsprestaties anderzijds. Het onderzoek is primair een empirisch onderzoek en is uitgevoerd met behulp van gegevens van circa 1.600 bedrijven uit het MKB Beleidspanel. Uit het onderzoek komt naar voren dat de leeftijd van de ondernemer van negatieve invloed is op innovatie(strategie), investeringen en omzet. Voor wat betreft de doelstellingen van het bedrijf, is geen relatie met leeftijd gevonden. Hetzelfde geldt voor de andere onderzochte concurrentiestrategieën (marketing en prijs). Ook voor de prestatiemaatstaven werkgelegenheidsgroei en winst, zijn geen verschillen gevonden tussen oudere en jongere ondernemers. |
| Date: | 2012–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201206&r=ent |
| By: | Traikova, Diana; Mollers, Judith; Buchenrieder, Gertrud |
| Keywords: | Community/Rural/Urban Development, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126816&r=ent |
| By: | Iwasaki, Ichiro |
| Abstract: | Using a unique dataset obtained from large-scale panel enterprise surveys conducted in 2005 and 2009, we clarify the survival status of Russian industrial firms before and after the global financial crisis and empirically examine the determinants of firm survival. The estimation of the Cox proportional hazard model provided evidence that the independence of company’s governance bodies, their human resource abundance, and assertiveness in corporate management are statistically significant factors affecting the survival probability of the surveyed firms. In particular, the board of directors and the board of auditors are likely to play a vital role in reducing the potential exit risk. We also found that there is a significant difference in the viewpoints of economic logic for firm survival held by independent firms and group companies |
| Keywords: | global financial crisis, firm survival, corporate governance, business group, Russia |
| JEL: | D22 G01 G33 G34 P34 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rrcwps:37&r=ent |