nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒09‒06
seven papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. Start-up Complexity and the Thickness of Regional Input Markets By Dirk Christian Dohse; Andrea Vaona
  2. Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976 - 2008 By Fackler, Daniel; Schnabel, Claus
  3. Entrepreneurship In A Developing Country Context. By Quatraro, Francesco; Vivarelli, Marco
  4. Understanding entrepreneurial intentions of students in agriculture and related sciences By Leonidas A. Zampetakis; Afroditi Anagnosti; Stelios Rozakis
  5. Finance Access of SMEs: What Role for the ECB? By Ansgar Belke
  6. Canadian Labour Productivity Differences Across Firm Size Classes, 2002 to 2008 By Baldwin, John R.<br /> Leung, Danny<br /> Rispoli, Luke
  7. The regional soul of sustainability By Michele Pinelli

  1. By: Dirk Christian Dohse; Andrea Vaona
    Abstract: Although there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others
    Keywords: Entrepreneurship, Start-up complexity, Thick markets, Regional analysis
    JEL: L26 D22 R12 M13 O31
    Date: 2013–06
  2. By: Fackler, Daniel; Schnabel, Claus
    Abstract: Using a 50 percent sample of all establishments in the German private sector, we report that spinoffs are larger and initially employ more skilled and more experienced workers than other startups. Controlling for these and other differences, we find that spinoffs are less likely to exit than other startups. We show that in West and East Germany and in all sectors investigated pulled spinoffs (where the parent company continues after they are founded) generally have the lowest exit hazards, followed by pushed spinoffs (where the parent company stops operations). The difference between both types of spinoffs is particularly pronounced in the first three years. Contrary to expectations, intra-industry spinoffs are not found to have lower exit hazards in our sample. --
    Keywords: spinoffs,startups,firm exits,Germany
    JEL: L2 D22 M13 C41
    Date: 2013
  3. By: Quatraro, Francesco; Vivarelli, Marco (University of Turin)
    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.
    Date: 2013–05
  4. By: Leonidas A. Zampetakis (1 Department of Production Engineering & Management Technical University of Crete, 73100, Chania, Crete, GR); Afroditi Anagnosti (3 Innovation & Entrepreneurship Unit, Agricultural University of Athens, Iera Odos 75, 11855 Athens, GR); Stelios Rozakis (Department of Agricultural Economics & Rural Development, Agricultural University of Athens)
    Abstract: There is a growing body of literature arguing that an individual's intention to start an enterprise is a strong predictor of individual entrepreneurial action. The present research uses Ajzen’s (1991) theory of planned behavior (TPB) to investigate entrepreneurial intent of agricultural students. The TPB offers a parsimonious explanation of purposeful behavior and has been used with success in previous research studies to explain the entrepreneurial intent of business and engineering students. However, research studies that examine the application of the theory to students from agricultural universities are scarce. In the present research, we empirically examine the TPB using data from 65 students from the Agricultural University of Athens, Greece. Results, using path analysis, support previous studies that used TPB to predict entrepreneurial intentions, which suggest that students’ attitudes towards entrepreneurship are related to their intention (INT) to start a business. In addition perceived behavioral control (PBC) is a strong predictor of INT. As far the role of subjective norm (SN) is concerned, results of the present study suggest that it has a small negative, and statistically significant effect. Furthermore, in line with recent theoretical and empirical studies about the potential role of emotions in entrepreneurship, we investigated the role of anticipated emotional ambivalence in students’ entrepreneurial intent. Results suggest that anticipated emotional ambivalence from nascent entrepreneurship (that is, students’ future oriented emotions relating to the expectancy of feeling both positive and negative affect) relates negatively to perceived behavioral control.
    Keywords: Agricultural university, entrepreneurship education, entrepreneurial intentions
    JEL: A22 C39
    Date: 2013
  5. By: Ansgar Belke
    Abstract: Small and medium size enterprises (SMEs) of southern euro area economies (e.g. Italy, Spain) pay significantly higher borrowing rates than their peers of the core (e.g. Germany, France) and this divergence is widening. It is argued that severe market failures prevent SMEs in southern euro area countries from access to key inputs, in particular access to finance. This paper makes an assessment of feasible options to improve finance access of SMEs, available to EU institutions as well as to the ECB in the context of its price stability mandate. Because of nonnegligible moral hazard issues, the paper is sceptical about a stronger involvement of the ECB in the (indirect) financing of SMEs through the securitisation of banks`loans or their use as collateral for monetary policy operations. The paper concludes with some proposals for extending finance access of SMEs, including through mutual guarantee institutions along the lines recently pursued by the European Investment Bank.
    Keywords: ECB; financial crisis; bank-firm relationships; credit guarantee schemes; monetary policy transmission; small business finance
    JEL: E23 E51 G21 O16
    Date: 2013–07
  6. By: Baldwin, John R.<br /> Leung, Danny<br /> Rispoli, Luke
    Abstract: This paper examines differences in labour productivity across small, medium- and large-sized enterprises in Canada. In 2008, the level of labour productivity, as measured by nominal gross domestic product per hour worked, in large businesses was greater than that for medium-sized and small businesses. This gap between large businesses relative to small and medium-sized businesses narrowed slightly during the post-2000 period. The paper also examines the impact of changes in industrial structure on labour productivity.
    Keywords: Business performance and ownership, Economic accounts, Productivity accounts, Small and medium-sized businesses
    Date: 2013–08–26
  7. By: Michele Pinelli (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: Profits and social-environmental performance have always been perceived as in contrast with one another. Governments and super-national authorities felt that corporations were lacking the incentives to pursue sustainable practices, which then had to be imposed through regulation. Such situation opens space to (at least) two debates: the first one is about whether or not entrepreneurs can help regulations and policies to implement sustainable development; the second one concerns how the current economic context is going to affect sustainable development. This paper joins such debates arguing that a) the role of entrepreneurs in the implementation of sustainability is increasingly important and not just complementary to regulations and policies; b) changes in the economic contexts will give an increasingly ÒregionalÓ character to sustainable development. There is emerging evidence that sustainability is becoming profitable for firms as a result of a dynamics involving consumer awareness, regulations, new cost structures and market-driven requests for sustainable business practices. This new-born profitability is the incentive which will make firms play their important part in the implementation of sustainability. Increased geographical proximity among activities and less global value chains will be the result of the efforts that companies will make in order to capture these profits through sustainable business model innovation. This will lead to invest in surrounding communities and territories (Porter and Kramer, 2011), to leverage circular economies (Fang, Cot, Qin, 2007) and to re-think logistics and transportation strategies. Entrepreneurs capable to relocate activities fitting with each other and to aggregate them properly in coherent bundles can realize durable competitive advantages (Porter, 1996). This is why sustainability has a ÒregionalÓ soul.
    Keywords: innovation, business model, entrepreneurship, sustainable development.
    JEL: M14 M16
    Date: 2013–09

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