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on Entrepreneurship |
| By: | Harriet Orcutt Duleep (Thomas Jefferson Program in Public Policy, The College of William and Mary); David Jaeger (Program in Economics, Graduate Center of the City University of New York); Mark C. Regets (National Science Foundation) |
| Abstract: | This paper describes the theoretical underpinnings and provides empirical evidence for a model that predicts a positive impact of immigration on entrepreneurial activity. Immigrants, we hypothesize, facilitate innovation and entrepreneurship by being willing and able to invest in new skills. At the heart of this theoretical prediction is the observation that human capital not immediately valued in the U.S. labor market is useful for learning new skills. Because immigrants face a lower opportunity cost of investing in new skills or methods, this “transfer” of source-specific skills to the U.S. may lead immigrants to be more flexible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants (even if they are not self-employed) may prove to be areas in which entrepreneurship and innovation are easier to accomplish. Our theory offers a unique perspective on the contributions of immigrants to economic development beyond traditional perspectives that focus on low-cost immigrant labor or immigrant entrepreneurship. |
| Keywords: | immigration, innovation, entrepreneurship, human capital investment, skill transferability, opportunity cost, learning transferability |
| JEL: | J15 J24 J39 J61 L26 |
| Date: | 2013–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:cwm:wpaper:134&r=ent |
| By: | Giulietti, Corrado (IZA); Wahba, Jackline (University of Southampton); Zimmermann, Klaus F. (IZA and University of Bonn) |
| Abstract: | While there is evidence that return migration promotes entrepreneurship and self-employment of those who migrated, previous studies have not focused on whether migration provides the same benefits to individuals who did not migrate. Using a unique dataset that provides information on both current and return migrants in rural China (RUMiC), we investigate the impact of migration on entrepreneurship among individuals with no migration experience. We explore the self-employment choices of individuals who live in households with return migrants and individuals who live in households that have migrants currently in the city, comparing them with individuals living in non-migrant households. Our methodology allows us to control for the potential endogeneity between the migration and self-employment decisions. The results show that return migration promotes self-employment among household members that have not migrated. However, left-behind individuals are less likely to be self-employed when compared to those living in non-migrant households. |
| Keywords: | rural to urban migration, RUMiC dataset, self-employment |
| JEL: | J23 J61 O15 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7270&r=ent |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Alexander Kritikos (German Institute for Economic Research (DIW Berlin), and University of Potsdam, and IZA (Bonn) and IAB (Nuremberg)); Katharina Pijnenburg (German Institute for Economic Research (DIW Berlin)) |
| Abstract: | We investigate whether people become more willingly self-employed during boom periods or in recessions and to what extent it is the business cycle or the employment status influencing entry rates into entrepreneurship. Our analysis for Germany reveals that start-up activities are positively influenced by unemployment rates and that the cyclical component of real GDP has a negative effect. This implies that new business formation is counter-cyclical. Further disentangling periods of low and high unemployment periods reveals a "low unemployment retard effect". |
| Keywords: | Self-employment, business cycle, unemployment, start-up |
| JEL: | L26 E32 |
| Date: | 2013–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-011&r=ent |
| By: | Max Nathan |
| Abstract: | High levels of net migration to the UK have contributed to growing cultural diversity, and researchers are turning their attention to the long-term effects of diversity on productivity. Yet little is known about these issues. This paper asks: what are the links between the composition of firms' top teams and business performance? What role do ethnic diversity and co-ethnic networks play? And do cities amplify or dampen these channels? I explore using a rich dataset of over 6,000 English firms. Owners, partners and directors set firms' strategic direction. Top team demography might generate production externalities through diversity (a wider range of ideas/ experiences, helping problem solving) and/or 'sameness' (via specialist knowledge or better access to international markets). These channels may be balanced by internal downsides (lower trust) and external barriers (discrimination), so that overall effects on business performance are unclear. In addition, urban locations (particularly big cities) may amplify any demographics-performance effects. I create a repeat cross-section of firms from the RDA National Business Survey. I construct measures of diversity and sameness across ethnicity and gender 'bases', alongside information on revenues, product and process innovation. I then regress these measures of business performance on top team demographics, plus firm level controls, area, year and detailed industry fixed effects. My results suggest a non-linear link between diversity and business performance, which is net positive for process innovation and net negative for turnover. Further tests on diverse and minority/female-headed firms find positive links for diverse top teams, negative for minority and female-only top teams. This implies that while diversity has internal and external benefits, penalties from being 'too diverse' probably result from external constraints. Further tests for intervening effects of capital cities, metropolitan hierarchies and urban form find some evidence of amplifying and dampening effects - which are generally stronger in London and larger cities. |
| Keywords: | Cities, innovation, entrepreneurship, cultural diversity, migration, gender |
| JEL: | J61 L21 M13 O11 O31 R23 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0129&r=ent |
| By: | Saskia Vossenberg (Maastricht School of Management, PO Box 1203, 6201 BE Maastricht, The Netherlands) |
| Abstract: | Despite the growing number of women-led business and a significant increase of initiatives, policies and resources designed to promote and develop women’s entrepreneurship, the gender gap in entrepreneurship persist. This paper addresses two questions: Why does the gender gap in entrepreneurship persist? And, what does the literature suggest to us about the best ways to promote women’s entrepreneurship? Based on a feminist perspective this paper argues that current women entrepreneurship promotion policies undoubtedly benefit individual women but when the gender bias in the context in which entrepreneurship is embedded, is left intact, efforts may remain in vain and without any significant macroeconomic or social impact. |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2013/08&r=ent |
| By: | Tuomas Kosonen; Jarkko Harju |
| Abstract: | Based on existing evidence, we know little about how the taxation of small business owners affects their economic activity. This paper studies the effect of two Finnish tax reforms, in 1997 and 1998, on the effort decisions of the owners of small businesses, utilizing both theoretical model and empirical data. The reforms reduced the income tax rates of small business owners and applied only to unincorporated firms, leaving out corporations. We use a difference-indifferences strategy to estimate the causal impact of tax incentives on the economic activity of small businesses. The results imply that lighter taxation leads to an increase in the turnover of firms that we interpret as an increase in effort exerted by their owners. |
| Keywords: | Entrepreneurs, small businesses, tax incidence |
| JEL: | H22 H24 H25 |
| Date: | 2013–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:42&r=ent |
| By: | Andrea Beltramello; Linda Haie-Fayle; Dirk Pilat |
| Abstract: | New business models can make an important contribution to the transition to green growth. While some new business models involve large firms, others are small start-up firms that seek to exploit technological or commercial opportunities that have been neglected or not yet explored by more established firms. New firms tend to engage in more radical innovation than existing firms, and scaling up new business models can therefore help reduce environmental pollution, optimise the use of natural resources, increase productivity and energy efficiency, and provide a new source of economic growth. Although the market for green goods and services is growing, the development of new business models is affected by a range of barriers, many of which can be addressed by well-designed policies. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2013/1-en&r=ent |
| By: | Backman, Mikaela (Jönköping International Business School) |
| Abstract: | It is natural to assume that the characteristics of the bank sector are important factors for new firm formation when external capital is needed for establishing new firms. The local bank sector acts as the main provider of financial funds in Sweden since other sources of external capital are limited. In addition, the banking services needed in the start-up process tend to be sensitive to distance and are mainly supplied locally. Thus, the structure of the local bank sector is an important factor that determines the conditions for start-ups. The finding in this paper supports the hypothesis that new firm formation is positively influenced by (1) the average size of the bank branches, (2) number of independent banks and bank branches per capita, and (3) the intensity of competition level. Access to independent banks and bank branches has a stronger influence on start-ups in more rural locations. |
| Keywords: | New firm formation; local bank sector; competition; Sweden |
| JEL: | G21 L26 R11 |
| Date: | 2013–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0301&r=ent |
| By: | Ana Paula Faria (Universidade do Minho - NIPE); Natália Barbosa (Universidade do Minho - NIPE) |
| Abstract: | Using panel data of 17 European Union countries, we find robust empirical support for a positive impact of venture capital on innovation. After controlling for the potential endogenous relationship between venture capital and innovation, the results indicate that venture capital fosters innovation but mainly on a later stage. |
| Keywords: | venture capital; innovation; dynamic panel data |
| JEL: | O31 G30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:03/2013&r=ent |
| By: | Alfons Palangkaraya (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne) |
| Abstract: | This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation. |
| Keywords: | Innovation, export, small and medium enterprises, propensity score matching |
| JEL: | F14 O12 O14 O31 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2013n04&r=ent |
| By: | Jin, Hua |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hjbswp:166&r=ent |