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on Entrepreneurship |
| By: | Becker, Sascha (University of Warwick); Hvide, Hans V (University of Bergen) |
| Abstract: | In the large literature on firm performance, economists have given little attention to entrepreneurs. We use deaths of more than 500 entrepreneurs as a source of exogenous variation, and ask whether this variation can explain shifts in firm performance. Using longitudinal data, we find large and sustained effects of entrepreneurs at all levels of the performance distribution. Entrepreneurs strongly affect firm growth patterns of both very young firms and for firms that have begun to mature. We do not find significant differences between small and larger firms, family and non-family firms, nor between firms located in urban and rural areas, but we do find stronger effects for founders with high human capital. Overall, theresults suggest that an often overlooked factor –individual entrepreneurs –plays a large role in affecting firm performance. |
| Keywords: | entrepreneurship, Örm performance, human capital. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:108&r=ent |
| By: | Heinrichs, Simon; Walter, Sascha |
| Abstract: | This study examines how different organizational learning strategies (i.e., exploration or exploitation) impact the sales growth of technology spin-outs, and the role of the parent firm in this context. Using knowledge-based and learning views of the firm, we propose that spin-out performance benefits from exploration, but suffers from exploitation. Results based on a sample of 134 spin-outs support these arguments. Additionally, parent goodwill reinforced the positive effect of exploration, whereas high market similarity to the parent firm increased the negative effect of exploitation. -- |
| Keywords: | Spin-outs |
| JEL: | M13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:68591&r=ent |
| By: | Walter, Sascha; Heinrichs, Simon; Walter, Achim |
| Abstract: | We investigated how and when parent hostility (degree to which a parent firm disapproves the spawning of an own spin-out) affects spin-out performance and how spin-outs can effectively react to it. Analyses of 144 technology spin-outs support our arguments that spin-outs suffer from hostility. Hostility consequences are, however, less severe if market turbulence is high or if the spin-out pursues effective network development. -- |
| Keywords: | parent-child relationship |
| JEL: | M13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:68592&r=ent |
| By: | Enrico Maria Cervellati (Department of Management, University of Bologna, Italy; Luiss Guido Carli, Italy); Pierpaolo Pattitoni (Department of Management, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy); Marco Savioli (The Rimini Centre for Economic Analysis (RCEA), Italy; Department of Economics and Statistics, University of Siena, Italy); Rassoul Yazdipour (Academy of Behavioral Finance & Economics, USA) |
| Abstract: | Past research shows that entrepreneurs often invest a large share of their personal wealth in their company, exposing themselves to idiosyncratic risk. In this paper, we focus on a possible explanation for this costly exposure, based on two behavioral biases: overconfidence and over optimism. Both these biases affect the very main variables of the risk-return analysis à la Markowitz. In particular, we find that if entrepreneurs perceive their private company to have a lower risk and a higher return than actual, they may overweight the company in their investment portfolios. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:09_13&r=ent |
| By: | Heinrichs, Simon; Walter, Sascha |
| Abstract: | This article reviews the theoretical background and cumulates findings of 126 published studies (1980 - 2009) on individual determinants of entrepreneurial status. We categorize determinants into one of six paradigms (trait, cognitive, affective, intentions, learning, and economic) and review findings for 46 repeatedly studied variables. We then examine trends in the field and propose an agenda for future research. Our article complements prior reviews and meta-analyses by picturing the breadth of the field and adding important points to the research agenda. -- |
| Keywords: | entrepreneurial status |
| JEL: | M13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:68590&r=ent |
| By: | McKenzie, David (World Bank); Woodruff, Christopher (University of Warwick) |
| Abstract: | Business training programs are a popular policy option to try to improve the performance of enterprises around the world. The last few years have seen rapid growth in the number of evaluations of these programs in developing countries. We undertake a critical review of these studies with the goal of synthesizing the emerging lessons and understanding the limitations of the existing research and the areas in which more work is needed. We find that there is substantial heterogeneity in the length, content, and types of firms participating in the training programs evaluated. Many evaluations suffer from low statistical power, measure impacts only within a year of training, and experience problems with survey attrition and measurement of firm profits and revenues. Over these short time horizons, there are relatively modest impacts of training on survivorship of existing firms, but stronger evidence that training programs help prospective owners launch new businesses more quickly. Most studies find that existing firm owners implement some of the practices taught in training, but the magnitudes of these improvements in practices are often relatively modest. Few studies find significant impacts on profits or sales, although a couple of the studies with more statistical power have done so. Some studies have also found benefits to microfinance organizations of offering training. To date there is little evidence to help guide policymakers as to whether any impacts found come from trained firms competing away sales from other businesses versus through productivity improvements, and little evidence to guide the development of the provision of training at market prices. We conclude by summarizing some directions and key questions for future studies. |
| Keywords: | Business training; Consulting; Randomized experiments; Firm Productivity. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:115&r=ent |
| By: | Cui, Yuling (Macquarie University, Sydney); Nahm, Daehoon (Macquarie University, Sydney); Tani, Massimiliano (Macquarie University, Sydney) |
| Abstract: | This paper studies differences in the motivation to be self-employed between rural migrants and urban residents in modern China. Estimates of the wage differential between self-employment and paid-employment obtained through a three-stage methodology using the 2002 China Household Income Project (CHIP), reveal that rural migrants become self-employed to avoid low-pay city jobs, enhancing their odds of economic assimilation. Conversely, urban residents become entrepreneurs to move out of unemployment. The empirical analysis confirms that self-employment also attracts married individuals and those in good health, while it negatively relates to high educational attainment. The decomposition of hourly wage differences between pairs (by type of employment and residence status) shows that higher hourly wages of paid and self-employed urbanites over migrants predominantly arise through differences in coefficients (i.e. "discrimination") while those between self- and paid employment among urbanites are mostly due to differences in individual characteristics. Discrimination overwhelmingly accounts for hourly wage differences between self- and paid employment among rural immigrants. We interpret the relevant effect of discrimination in 2002 in urban labour markets as a sign of the institutional barriers associated with the Hukou system. |
| Keywords: | rural migrant workers, wage differentials, self-employment, urban residents |
| JEL: | C36 J61 J31 J21 J24 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7191&r=ent |
| By: | Luca Berchicci; Jeroen P.J. de Jong; Mark Freel |
| Abstract: | It is generally recognized that firms’ innovative performance can be enhanced by collaborating with remote partners. However, remote collaborations are not without challenges, as geographical distance may frustrate tacit knowledge transfer and inter-organizational learning. We investigate the moderating role of absorptive capacity by proposing that the higher firms’ R&D intensity, the stronger the relationship between remote collaboration and their share of new product revenues. Drawing on survey data of 250 Dutch high-tech small firms, it is confirmed that remote collaboration is associated with innovative performance, but at low values of R&D intensity this relationship disappears. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:13-01&r=ent |
| By: | Czarnitzki, Dirk; Rammer, Christian; Toole, Andrew A. |
| Abstract: | The creation of spinoff companies is often promoted as a desirable mechanism for transferring knowledge and technologies from research organizations to the private sector for commercialization. In the promotion process, policymakers typically treat these 'university' spinoffs like industry startups. However, when university spinoffs involve an employment transition by a researcher out of the not-for-profit sector, the creation of a university spinoff is likely to impose a higher social cost than the creation of an industry startup. To offset this higher social cost, university spinoffs must produce a larger stream of social benefits than industry startups, a performance premium. This paper outlines the arguments why the social costs of entrepreneurship are likely to be higher for academic entrepreneurs and empirically investigates the existence of a performance premium using a sample of German startup companies. We find that university spinoffs exhibit a performance premium of 3.4 percentage points higher employment growth over industry startups. The analysis also shows that the performance premium varies across types of academic entrepreneurs and founders' academic disciplines. -- |
| Keywords: | Academic Entrepreneurship,Startups,Firm performance,Technology Transfer,Open Science,University Spinoff Policy,Human Capital,Social Capital |
| JEL: | L25 L26 J24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13004&r=ent |
| By: | Gupta, Bishnupriya (University of Warwick) |
| Abstract: | Industrial investment in Colonial India was segregated by the export oriented industries, such as tea and jute that relied on British firms and the import substituting cotton textile industry that was dominated by Indian firms. The literature emphasizes discrimination against Indian capital. Instead informational factors played an important role. British entrepreneurs knew the export markets and the Indian entrepreneurs were familiar with the local markets. The divergent flows of entrepreneurship can be explained by the comparative advantage enjoyed by social groups in information and the role of social networks in determining entry and creating separate spheres of industrial investment. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:110&r=ent |
| By: | Quaye, Frederick Murdoch; Hartarska, Valentina M. |
| Keywords: | Financial Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143082&r=ent |
| By: | Andrew Kerr (DataFirst, University of Cape Town); Martin Wittenberg (DataFirst, University of Cape Town); Jairo Arrow |
| Abstract: | Analysts of the South African labour market have predominantly used household surveys to analyse the labour market. It has been more difficult to explore labour demand from the firm side, as a result of limited data from relatively small cross sectional firm surveys, mainly funded by the World Bank. We use the Quarterly Employment Survey conducted by Statistics South Africa that allows us to explore how South African enterprises create and destroy jobs, shedding light on many of the policy questions that are relevant in a high unemployment society like SouthAfrica. We find job creation and destruction rates are similar to those found in OECD countries. There is little evidence that labour legislation creates rigidities that prevent firms from hiring or firing workers.We also find that larger firms are better net creators of jobs than small firms and that net job creation rates are negative in manufacturing, consistent with work using household surveys. Our research has important policy implications - particularly for the National Planning Commission's suggestion that new jobs will come mainly from small and medium sized firms. Our research suggests this is not likely without changes to policy or legislation. This is a joint SALDRU/DataFirst Working Paper |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:92&r=ent |
| By: | Atalay, Kadir; Kim, Woo-Yung; Whelan, Stephen |
| Abstract: | This paper using the Australian panel data(HILDA) investigates the declining trend of self-employment rate in Australia, a pattern observed in a number of other developed countries in the 2000s. We focus on the entry into and the exit from self-employment, treating males and females separately. Our results show that the self-employment rate has declined in Australia because older workers, especially older female workers, remained longer in paid-employment. This finding indicates that although the self-employment rate of older workers is higher than that of younger workers, the gap has decreased in recent years so that the average self-employment rate has declined. In addition, we provide some evidence that industry and institutional changes, such as reforms in tax and pension systems, may have contributed to an increase in the labour force participation of older females, which may explain why the decline of self-employment has been severe for this group. |
| Keywords: | Retirement; Older Workers; Self Employment |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:syd:wpaper:2123/8925&r=ent |