nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒07‒15
twelve papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. Self-employment and Job Generation in Metropolitan Areas, 1969-2009 By André van Stel; Martin Carree; Emilio Congregado; Antonio Golpe
  2. Entry and Post-Entry Dynamics in Developing Countries By Francesco Quatraro; Marco Vivarelli
  3. Explaining entrepreneurial performance of solo self-employed from a motivational perspective By André van Stel; Werner Liebregts; Nardo de Vries
  4. Entrepreneurial activity, industry orientation, and economic growth By Jolanda Hessels; Peter van der Zwan; Mark Sanders
  5. Team Heterogeneity in Startups and its Development over Time By Ulrich Kaiser; Bettina Müller
  6. Informal or formal financing? Or both? First evidence on the co-funding of Chinese firms By Degryse, Hans; Lu, Liping; Ongena, Steven
  7. Private Investment to Support New Technologies: Quantifying Gender Differences By Bradley, Samantha R.; Gicheva, Dora; Hassell, Lydia; Link, Albert N.
  8. Ethnic Competition or Complementarity: Which Drives (Returns to) Self-employment? By Joanna Nestorowicz; Joanna Tyrowicz
  9. The impact of government financial assistance on SMEs in Australia during the GFC By Dong Xiang; Andrew C Worthington
  10. Heterogeneous Self-employment and Subjective Well-Being. Evidence from Latin America By Cortés Aguilar Alexandra; Teresa Garcia-Muñoz; Ana I. Moro Egido
  11. The Relationship Conflict between Venture Capital and Entrepreneur By Alqatawni, Tahsen
  12. Dynamique des territoires et création d’entreprises : une analyse des départements français en 2008. Local dynamics and firms creation: an analysis of French departments in 2008. By Nadine Levratto; Denis Carré; Messaoud Zouikri

  1. By: André van Stel; Martin Carree; Emilio Congregado; Antonio Golpe
    Abstract: Many regional development policy initiatives assume that entrepreneurial activities promote economic growth. Empirical research has presented rationale for this argument showing that small firms create proportionally more new jobs than large ones. However, little research has been performed on the issue of net job generation at the urban level, particularly when self-employment is considered as an indicator of entrepreneurial activities. This paper investigates to what extent U.S. metropolitan areas in the 1969-2009 period characterized by relatively high rates of self-employment also have shown relatively high rates of subsequent total employment growth. The analysis corrects for the influence of sectoral composition, wage level, educational attainment, presence of research universities and size of the metropolitan area to measure the extent to which the number and quality of self-employed in a region contribute to total employment growth. It finds the relationship between self-employment rates and subsequent total employment growth to be positive on average during the forty-year period but to weaken over time.
    Date: 2013–04–18
  2. By: Francesco Quatraro; Marco Vivarelli
    Abstract: The aim of this paper is to provide an updated survey of the "state of the art" in entrepreneurial studies, with a particular focus on developing countries (DCs). In particular, the same concept of "entrepreneurship" will be critically discussed, then moving to the institutional, macroeconomic and microeconomic conditions affecting the entry of new firms and the post-entry performance of newborn firms.
    Keywords: entrepreneurship, new firm, innovation, development
    JEL: L26 O12
    Date: 2013–06
  3. By: André van Stel; Werner Liebregts; Nardo de Vries
    Abstract: This paper investigates whether start-up motivation (opportunity versus necessity) influences entrepreneurial performance of an important subset of entrepreneurs, viz. the solo self-employed. We also explore to what extent human capital measures mediate this relation. We use a unique individual-level panel data set of solo self-employed in the Netherlands for three consecutive years (2009-2011) and construct three separate measures to identify necessitydriven solo self-employment. Our main finding confirms that necessity-driven solo self-employed perform worse than opportunity-driven solo self-employed. Furthermore, start-up motivation seems to have an isolated effect on entrepreneurial performance, considering that we also find that formal education and practical learning hardly mediate the relation. Our results imply that it is important to distinguish between different motivations within the population of solo self-employed in order to understand their entrepreneurial performance.
    Date: 2013–05–30
  4. By: Jolanda Hessels; Peter van der Zwan; Mark Sanders
    Abstract: There is evidence that entrepreneurial activity plays a non-negligible role in driving economic development. In this paper we investigate whether the industry in which the entrepreneurial activity takes place matters for economic growth, both in developed and developing countries. We distinguish between three types of entrepreneurial activity, based on the technology intensity that is involved: entrepreneurship without any technology intensity, low technology entrepreneurship, and high technology entrepreneurship. Data from the Global Entrepreneurship Monitor are used to construct early-stage entrepreneurial activity rates for almost 70 countries and for 9 years (2001-2009). We first show that entrepreneurial activity is heavily concentrated in no-tech industries, even in advanced economies. In our regressions, we then find that entrepreneurial activity in high-tech industries creates more economic growth as compared to no-tech and low-tech industries. This stresses the importance of high-tech entrepreneurship; in addition, we show that entrepreneurs active in high-tech industries are higher educated and have higher job growth expectations than entrepreneurs in no-tech or low-tech industries. Practical implications are formulated in the concluding section.
    Date: 2013–04–23
  5. By: Ulrich Kaiser (Department of Business Administration, University of Zurich); Bettina Müller (Centre for European Economic Research, Dept. of Industrial Economics and International Management, Mannheim)
    Abstract: We investigate the workforce heterogeneity of startups with respect to ed- ucation, age and wages. Our explorative study uses data on the population of 1,614 Danish rms founded in 1998. We track these rms until 2001 which enables us to analyze changes in workforce composition over time. Such a dynamic analysis constitutes a hitherto neglected area of entrepreneurship re- search. To assess relative workforce heterogeneity, we construct a simulated benchmark to which we compare observed workforce heterogeneity. We nd that the initial workforce is relatively homogeneous compared to our bench- mark. Our result holds both for non-knowledge-based and, to a lesser extent, knowledge-based startups. This seems surprising since a vast management literature advocates heterogeneous teams. The diculties associated with workforce heterogeneity (like aective con ict or coordination cost) as well as \homophily" (peoples inclination to bound with others with similar char- acteristics) hence appear to generally overweigh the benets of heterogeneity (like greater variety in perspectives or more creativity). We also document that workforces become more heterogeneous over time | startups add work- ers with skills dierent from the workforce at startup. The initial supposedly \poor" mix of workforce characteristics is hence adjusted as the startup ma- tures. This increase in workforce heterogeneity is, however, smaller compared to our benchmark but substantially larger than is team additions had the same characteristics as the initial team members
    Keywords: labor Entrepreneurship, Startups, Skill Heterogeneity, Team Dynam- ics
    JEL: C10 L26 M13
    Date: 2013–06
  6. By: Degryse, Hans (BOFIT); Lu, Liping (BOFIT); Ongena, Steven (BOFIT)
    Abstract: The recent financial crisis has reopened the debate on the impact of informal and formal finance on firm growth in developing countries. Using unique survey data, we find that informal finance is associated with higher sales growth for small firms and lower sales growth for large firms. We identify a complementary effect between informal and formal finance for the sales growth of small firms, but not for large firms. Informal finance offers informational and monitoring advantages, while formal finance offers relatively inexpensive funds. Co-funding, i.e. the simultaneous use of formal and informal finance, is the optimal choice for small firms.
    Keywords: informal finance; formal finance; co-funding; growth
    JEL: G21 G32 P29
    Date: 2013–06–18
  7. By: Bradley, Samantha R. (RTI International); Gicheva, Dora (University of North Carolina at Greensboro, Department of Economics); Hassell, Lydia (University of North Carolina at Greensboro, Department of Economics); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The role of gender in entrepreneurship has been thoroughly investigated. However, less is known about gender differences in access to private investment when attempting to develop a new technology. In this paper we use data collected by the National Research Council of the National Academies to estimate differences between the probability that a female-owned firm and a male-owned firm, both conducting research funded by the Small Business Innovation Research (SBIR) program, will receive private investment funding to help to commercialize the funded technology. We find that female-owned firms are disadvantaged in their access to private investment, especially in the West and Northeast regions of the United States.
    Keywords: Private investments; Gender; Technology; Innovation
    JEL: L26 O31 O38
    Date: 2013–07–05
  8. By: Joanna Nestorowicz (Faculty of Economic Sciences, Centre of Migration Research, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw, National Bank of Poland)
    Abstract: This paper explores the relationship between ethnic competition and complementarity in returns to self-employment. We use detailed individual data from the U.S. censuses. We find that while in general business competition is detrimental to profitability, higher self-employment concentrations of co-ethnics are associated with increase in returns.
    Keywords: self-employment, ethnic entrepreneurship, competition, complementarity
    JEL: L26 D2 J3 J42
    Date: 2013
  9. By: Dong Xiang; Andrew C Worthington
    Keywords: small and medium-sized enterprises, government financial assistance, firm performance, availability of finance
    JEL: C25 L21 G32
    Date: 2013–07
  10. By: Cortés Aguilar Alexandra (Escuela de Economía y Administración, Universidad Industrial de Santander.); Teresa Garcia-Muñoz (Globe and Universidad de Granada.); Ana I. Moro Egido (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: This paper analyzes the relationship between labor status and individual satisfaction in Latin America. Existing evidence for developed countries shows that the self-employed report higher job satisfaction than the employed. The evidence, however, is less conclusive in terms of lifesatisfaction. Moreover, for Latin American countries, the evidence shows that self-employed individuals report lower life-satisfaction than employed individuals do. To clarify the effect of selfemployment on satisfaction, we use the Latinobarómetro survey 2007 for eighteen Latin American and Caribbean countries, considering the category self-employment as a heterogeneous category. Additionally, we control for the distinction between necessity and opportunity self-employed. Contrary to existing evidence, we find that not all self-employed individuals are more satisfied than employed individuals. Specifically, we find evidence revealing that, compared to workers in paid employment (i) precarious self-employed workers are as satisfied as the employed with their life but less with job and household income; (ii) self-employed professionals are more satisfied than the employed only with their incomes; (iii) business owners are more satisfied with their lives, income and job; and (iv) self-employed famers and fisherman are less satisfied with their jobs and income.
    Keywords: Labor informality, voluntary vs. involuntary self-employment,life and job satisfaction
    JEL: C25 I31 J24 J28 O17
    Date: 2013–06–25
  11. By: Alqatawni, Tahsen
    Abstract: The dilemmas that may encounter entrepreneurship result of an expected conflict between VCs and entrepreneur, disagreement can be beneficial for the venture performance. While the conflicts classified as personal disagreement, which negatively associated with entrepreneur’s performance. In this paper, after the author reviewed the literature studies that involve the entrepreneur and venture capital, related domains of research into relationships between both. There is a significant gap in research, which focus on possible resolution of relationship conflict between the entrepreneurs and venture capital.
    Keywords: Relationship Conflict, Venture Capital, Entrepreneur, entrepreneurship
    JEL: D0 D00 G24
    Date: 2013–07–03
  12. By: Nadine Levratto; Denis Carré; Messaoud Zouikri
    Abstract: Ce texte cherche à déterminer si et dans quelle mesure le territoire fait partie des facteurs explicatifs de la création d’entreprises. Cette possibilité est étayée par le fait que le territoire est tout d’abord support d’infrastructures, de ressources et d’organisations. Il est également le lieu de concentration d’éléments plus invisibles et d’un milieu entrepreneurial qui orientent aussi les dynamiques de création. La nouveauté de la démarche proposée réside dans la comparaison entre le pouvoir explicatif de ces différents éléments pris isolément et l’effet géographique calculé à partir de la méthode structurelle-résiduelle. La démarche est appliquée à l’étude du taux de création d’entreprises des départements français en 2008. Elle montre qu’à côté des facteurs habituels liés aux caractéristiques de la population et des structures, la dynamique intrinsèque du territoire est un facteur explicatif de la performance entrepreneuriale et que son influence varie selon l’activité des entreprises nouvellement créées.
    Keywords: création d’entreprises, départements, effet géographique, facteurs invisibles
    JEL: L26 M13 R12
    Date: 2013

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