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on Entrepreneurship |
| By: | Vivarelli, Marco |
| Abstract: | The aim of this study is to provide a microeconomic investigation of the concept of entrepreneurship; in particular, it discusses the following issues: 1) the alternative ways of looking at entrepreneurship, distinguishing"creative destruction"from simple"turbulence"; 2) the different microeconomic determinants of new firm formation, distinguishing"progressive"from"regressive"drivers; 3) the relationship between ex-ante characteristics (of the founder) and post-entry performance (of the new firm); and 4) the possible scope for an economic policy aimed at maximizing the impact of entrepreneurship on economic growth. Where possible and appropriate, the paper devotes particular attention to the specific features characterizing entrepreneurship in developing countries. |
| Keywords: | Microfinance,Access to Finance,Environmental Economics&Policies,Small Scale Enterprise,Banks&Banking Reform |
| Date: | 2012–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6245&r=ent |
| By: | A. HEUGHEBAERT; T. VANACKER; S. MANIGART |
| Abstract: | Manuscript Type: Empirical<br><br> Research Question/Issue: We first study how cross-country differences in legal quality and personal bankruptcy laws affect the financing of New Technology-Based Firms (NTBFs). Second, we study how venture capital (VC) investors, as expert monitors and initiators of good governance practices in their portfolio firms, moderate abovementioned relationships.<br><br> Research Findings/Insights: Using a unique longitudinal dataset comprising 6,813 NTBFs from six European countries, we find that higher quality legal systems increase the use of outside financing. Less forgiving personal bankruptcy laws decrease the use of outside financing. More importantly, VC ownership strengthens the abovementioned relationships.<br><br> Theoretical/Academic Implications: This paper provides new evidence on the link between national legal systems and the financing of NTBFs. More significantly, we address recent calls for more research that integrates institutional and agency frameworks. Specifically, this paper shows that the financing of NTBFs is the outcome of both national institutional frameworks and firm-level corporate governance.<br><br> Practitioner/Policy Implications: NTBFs play a key role in employment and wealth generation in our modern knowledge-based economies. Yet, access to sufficient and adequate financing is a critical barrier in the development of these firms. This study informs policy makers on the role of national institutions, firm-level corporate governance and their interaction on the financing strategies of NTBFs. |
| Keywords: | Corporate Governance, Financing, Legal Quality, Personal Bankruptcy Laws, Venture Capital |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:12/809&r=ent |
| By: | Richard Woodward; Elzbieta Wojnicka; Wojciech Pander |
| Abstract: | This study surveys the current state of affairs in Poland with regard to the development of knowledge-intensive entrepreneurship (KIE), or new firm creation in industries considered to be science-based or to use research and development (R&D) intensively. We place KIE in Poland in the larger institutional context, outlining the key features of the country’s National Innovation System, and then focus on KIE itself. Our findings are perhaps more optimistic than many previous studies of knowledge-based economy development in Poland. We observe significant progress due to Polish access to the European Union. The frequency with which universities are playing a significant role as partners for firms in the innovation process has increased significantly; moreover, we observe a significant degree of internationalization of innovation-related cooperation. Another optimistic development is that the level of activity of venture capitalists seems to be fairly high in Poland considering the relatively low degree of development of capital markets offering VC investors exit opportunities. Moreover, after almost two decades of decline in the share of R&D spending in GDP, there are signs that this is beginning to rise, and that businesses are beginning to spend more on R&D. While demand-side problems continue to be significant barriers for the development of KIE, due to the relatively low level of education and GDP per capita in the country, the trends here are optimistic, with high rates of economic growth and improvements in the level of education of younger generations. Significant improvement is still needed in the area of intellectual property protection. |
| Keywords: | Knowledge-Based Economy, Entrepreneurship, Transition, Post-Communist, SMEs, Poland |
| JEL: | L26 O31 O52 P27 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0446&r=ent |
| By: | Aldaba, Rafaelita M. |
| Abstract: | <p>Based on a survey of 97 firms in the garments, textiles, automotive, electrical and electronics, and food manufacturing industries; the paper highlights the difficulties faced by small and medium enterprises (SMEs) in accessing finance. For both firms with access to finance as well as those that did not make any finance request, financing obstacles posed as one of the top four serious problems for the growth of their businesses. The survey indicates the continued dependence of SMEs on internal sources of financing not only during the start-up phase but also to finance the current operations of the business.</p><p>Close to 41 percent of the respondents intend to expand the size and scope of their business in the next two years. Sixty-seven percent said that financing the expansion through internal funds alone is not sufficient with the same proportion of firms indicating that they would finance their expansion by making a loan request. Previous surveys also showed a substantial proportion of firms that planned to borrow in the future. However, the continuing dependence of firms on internal sources of financing seem to suggest a gap between the plans of firms to borrow and the actual amount of funding made available by banks.</p><p>SMEs particularly the smaller ones have been unable to access funds due to their limited track record, limited acceptable collateral, and inadequate financial statements and business plans. The bank survey showed that the top reasons for turning down financial requests were the firms` poor credit history, insufficient collateral, and insufficient sales, income or cash flow, unstable business type, and poor business plan.</p><p>To improve MSMEs access to finance, the paper suggests the implementation of the Central Credit Information Corporation in order to address informational asymmetries. Changing the mindsets of banks and introducing nontraditional approach to SME lending would also be important along with trainings and capacity-building programs for SMEs to improve their financial literacy and management capacity.</p> |
| Keywords: | Philippines, small and medium enterprises (SMEs), finance access, Philippine SMEs |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2012-05&r=ent |
| By: | Enrico Guzzini (Università degli Studi e-Campus, Italy); Donato Iacobucci (Dept. of Information Engineering Università Politecnica delle Marche, Italy) |
| Abstract: | The aim of this paper is to empirically verify the hypothesis of a U shaped relation between size and unrelated diversification. Specifically we test the so called “survivalist hypothesis” according to which unrelated diversification is observed not only in large firms but also in small firms as a result of poor performance in the initial business. We empirically test this hypothesis using a representative sample of Italian business groups. The empirical results confirm the presence of a U shaped relation between size and unrelated diversification. Small groups are more diversified than medium-sized groups. We think that this is an interesting result, since according to traditional theories of diversification (resource based view and agency view) we should expect a linear and positive relation between size and unrelated diversification. The second novelty of the paper is that of considering the group rather than the single legal entity as unit of analysis. This is specifically appropriate in this case as unrelated diversification is often carried out by setting-up or acquiring new companies. |
| Keywords: | diversification; firm size; business groups |
| JEL: | L25 L26 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1207&r=ent |