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on Entrepreneurship |
| By: | Marco Vivarelli (DISCE, Università Cattolica) |
| 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 postentry 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: | Entrepreneurship; new firm; innovation, development. |
| JEL: | L26 O12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1286&r=ent |
| By: | Petra Moog (University of Siegen); Arndt Werner (Institute for SME Research Bonn (IfM Bonn)); Stefan Houweling (University of Siegen); Uschi Backes-Gellner (Department of Business Administration (IBW), University of Zurich) |
| Abstract: | To date, little is known about the effects of the composition of skills on academic entrepreneurship. Therefore, in this paper, following Lazear’s (2005) jack-of-all-trades approach, we study how his or her composition of skills affects a scientist’s intention of becoming an entrepreneur. Extending Lazear, we examine how the effect of balanced entrepreneurial skills is moderated by a balanced working time allocations and peer effects. Using unique data collected from 480 life sciences researchers, we provide the first evidence that scientists with more balanced skills are more likely to have higher entrepreneurial intentions, particularly when they are in contact with entrepreneurial peers. Furthermore, we find even higher entrepreneurial intentions when balanced skill sets are combined with balanced working time allocations. Thus, to encourage the entrepreneurial intentions of life scientists, one has to ensure that they are exposed to diverse work experiences, have balanced working time allocations across different activities and work with entrepreneurial peers; i.e., collaborating with colleagues or academic scientists who have started new ventures in the past is important. |
| Keywords: | Jack-of-all-Trades, Skills, Entrepreneurial Intentions, Academic Entrepreneurship, Peer Effects, Working Time Balance |
| JEL: | O32 M13 J24 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:zrh:wpaper:325&r=ent |
| By: | Hoogendoorn, Sander M. (University of Amsterdam); Parker, Simon C. (University of Western Ontario); van Praag, Mirjam (University of Amsterdam) |
| Abstract: | This paper studies the impact of diversity in cognitive ability among members of a team on their performance. We conduct a large field experiment in which teams start up and manage real companies under identical circumstances. Exogenous variation in – otherwise random – team composition is imposed by assigning individuals to teams based on their measured cognitive abilities. The setting is one of business management practices in the longer run where tasks are diverse and involve complex decision-making. We propose a model in which greater ability dispersion generates greater knowledge for a team, but also increases the costs of monitoring necessitated by moral hazard. Consistent with the predictions of our model, we find that team performance as measured in terms of sales, profits and profits per share first increases, and then decreases, with ability dispersion. Teams with a moderate degree of ability dispersion also experience fewer dismissals due to fewer shirking members in those teams. |
| Keywords: | ability dispersion, team performance, field experiment, entrepreneurship, knowledge pooling, moral hazard |
| JEL: | C93 D83 J24 L25 L26 M13 M54 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7044&r=ent |
| By: | Massimo Libertucci (Bank of Italy); Francesco Piersante (Bank of Italy) |
| Abstract: | Regulation requires banks to hold a minimum capital endowment upon their establishment. But what role does initial capital play in a bank’s lifecycle? This paper addresses the issue for start-up banks. We use both survival-time and binary choice models for a sample of newly-established Italian banks in the period 1994-2006, controlling for a broad set of possible drivers of default, such as market, managerial and financial variables. Our results suggest that initial capital does play a leading role in explaining both the timing and the likelihood of a failure. Other important drivers are organisation and a balanced growth path, while market and management variables appear to play a minor role. We then turn to a quasi-experimental design: exploiting a regulatory shift in 1999 we run a counterfactual analysis of the impact of a regulatory tightening of initial capital, which affected only a subsample of banks. The set of results suggests that the effect on banks’ survival may be significant. |
| Keywords: | bank capital, survival analysis, probability of default analysis, start-up banks, counterfactual analysis |
| JEL: | G21 G28 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_890_12&r=ent |
| By: | Alexandra Bibbee |
| Abstract: | This paper discusses how to improve Canada’s business innovation in order to boost labour productivity and output growth. Many general framework conditions are highly favourable to business risk-taking and innovation, including macro stability, openness, strong human capital, low corporate tax rates, low barriers to firm entry and flexible labour markets. However, they can be improved further by reduced external and interprovincial barriers in network and professional service sectors, more efficient capital markets, fewer capital tax distortions and improved patent protection. A second focus should be on ensuring that incentives arising from government subsidies are targeted on actual market failures. The very high level of support to business R&D via the federal Scientific Research and Experimental Development (SR&ED) tax credit and provincial top-ups may affect the incentives of small firms to grow and should be redesigned. A plethora of small, fragmented granting programmes, mainly geared to SMEs, should be streamlined for better government-business collaboration. The large public share in venture capital should be wound down, as it may crowd out more productive private finance. A final focus should be on boosting manager and worker skills that are intrinsic to all forms of innovation, by filling gaps in training, mentoring and education. This Working Paper relates to the 2012 OECD Economic Review of Canada (www.oecd.org/eco/surveys/Canada).<P>Libérer l'innovation des entreprises au Canada<BR>Cette étude se penche sur la manière de renforcer l’innovation dans les entreprises canadiennes afin de stimuler la productivité de la main-d’oeuvre et la croissance de la production. De nombreuses conditions-cadres canadiennes sont très propices à la prise de risques et à l’innovation dans les entreprises : stabilité macroéconomique, ouverture sur l’extérieur, solidité du capital humain, faible imposition des bénéfices des sociétés, rareté des obstacles à l’entrée des entreprises sur le marché, flexibilité des marchés du travail. Ces conditions-cadres peuvent toutefois s’améliorer encore grâce à une diminution des barrières extérieures et interprovinciales dans les secteurs des réseaux et des services professionnels, à une plus grande efficience des marchés financiers, à de moindres distorsions de l’imposition du capital et à une meilleure protection des brevets. Un deuxième axe pourrait consister à s’assurer que les incitations découlant des subventions de la puissance publique ciblent bien les carences effectives du marché. Il se peut que le très fort soutien à la R-D des entreprises représenté par le crédit d’impôt fédéral pour la RS&DE (recherche scientifique et développement expérimental) et par ses compléments provinciaux entame le désir de croissance des petites entreprises ; peut-être donc faudrait-il redessiner ces aides. La kyrielle de petits programmes fragmentaires de subventionnement visant principalement les PME devrait être rationalisée pour améliorer la coopération entre le milieu universitaire et le monde de l’entreprise. Il faudrait réduire la trop grande place des fonds publics dans le capital-risque, car il se peut qu’elle évince des financements privés plus productifs. Un dernier axe devrait, par des actions cherchant à combler les lacunes de formation, de tutorat et d’enseignement, privilégier la stimulation des compétences de l’encadrement et du personnel qui s’appliquent à toutes les formes d’innovation. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Canada 2012 (www.oecd.org/eco/etudes/Canada). |
| Keywords: | productivity, venture capital, competition, innovation, vouchers, subsidies, research and development, business taxes, intellectual property rights, multifactor productivity, entrepreneurship, patents, technology transfer, intangibles, angel investing, R&D tax credits, academic research grants, productivité, capital-risque, innovation, concurrence, subvention, productivité multifactorielle, entrepreneuriat, brevets, transfert de technologie, impôt sur les sociétés, recherche et développement, biens immatériels, tutorat-investissement, crédits d’impôt pour la R-D, subventions pour la recherche universitaire, bons, droits de propriété intellectuelle |
| JEL: | H25 I23 O31 O32 O34 O38 |
| Date: | 2012–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:997-en&r=ent |