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on Entrepreneurship |
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Issue of 2013‒11‒02
ten papers chosen by Marcus Dejardin University of Namur and Universite' Catholique de Louvain |
| By: | Karen Wilson; Filipe Silva |
| Abstract: | This report highlights the growth in support for financial instruments for seed and early stage firms across OECD member countries. These instruments include grants, loans and guarantee schemes, tax incentives and equity funds. This increased support is linked to the recent financial crisis and the growing concern about young firms’ access to finance. The paper notes that framework conditions play an important role in access to finance and must be taken into consideration as a significant part of the policy mix. Demand-side policies to develop entrepreneurial and investment talent and networks are also critical. The role of evaluation and the need to better link policy objectives and outcomes are also discussed. |
| Date: | 2013–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:9-en&r=ent |
| By: | Andreas Koch; Daniel Pastuh; Jochen Späth |
| Abstract: | The present contribution examines whether and how young firms and incumbents differ with regard to selected aspects of work forms and work organization in order to assess their roles for the qualitative changes of work in industrialized countries. Conceptually, we emanate from the approach of negotiated order and we empirically ground our research upon guided interviews conducted with employers and employees in about 50 firms in four distinct industries in Germany. According to our results, new forms of work are particularly widespread in new firms. Most of the young companies in our sample practice autonomous work forms like working on one’s own responsibility and team working more frequently than incumbents, they are more prone to revert to functional flexibility (e.g. changing tasks and duties) and their working time arrangements tend to be more flexible. Altogether, firm age turns out to be an important parameter of new work forms and organization, though it is not the only one. Our results show that also the general and industry-specific framework conditions, a firm’s internal characteristics (e.g. innovation intensity, hierarchies and routines), the relevant actors (management, workforce) and particularly the coaction of these elements are important drivers shaping the overall feature of a firm. |
| Keywords: | Young firms, Negotiated Order, Quality of Work, Working Time, Autonomy, Work Organization, Germany, Guided Interviews |
| JEL: | J21 L23 L26 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iaw:iawdip:97&r=ent |
| By: | Alex Coad (SPRU, University of Sussex, UK); Christina Guenther (WHU - Otto Beisheim school of Management, Germany) |
| Keywords: | Diversification, firm growth, Penrose, Machine tools, Growth process |
| JEL: | L6 L11 L20 L25 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2013-11&r=ent |
| By: | Vivien LEWIS; Arnaud STEVENS |
| Abstract: | How do changes in market structure affect the US business cycle? We estimate a monetary DSGE model with endogenous firm/product entry and a translog expenditure function by Bayesian methods. The dynamics of net business formation allow us to identify the extent to which desired price markups and inflation decrease when entry rises. We find that a 1 percent increase in the number of competitors lowers desired markups by 0.17 percent. While markup fluctuations due to sticky prices or exogenous shocks account for a large proportion of US inflation variability, endogenous changes in desired markups also play a non-negligible role. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces13.20&r=ent |
| By: | A. FERRANDO; K. MULIER |
| Abstract: | This paper uses a non parametric matching procedure to match survey replies to balance sheet information. It draws on the SAFE survey on access to finance for a sample of 11886 firms in the euro area which are matched with their nearest neighbour in an extended dataset with balance sheet information on 2.3 million firms. We investigate the role of firm characteristics with respect to the experience of facing financing obstacles in the period 2009-2011. We distinguish between firms' perceived financing constraints and actual financing constraints. We find that more profitable firms are less likely to face actual financing constraints. Also firms with more working capital and lower leverage ratios are less likely to be actually financially constrained, however profitability measures seem to be more robust. Firms are more likely to perceive access to finance problematic when they have more debt with short term maturity. Finally, firm age, but not size, is important in explaining both the perceived and the actual financial constraints. |
| Keywords: | SMEs, financial constraints, survey data, statistical matching of data |
| JEL: | E22 G30 G10 O16 K40 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:13/844&r=ent |
| By: | Fairlie, Robert W. (University of California, Santa Cruz); Lofstrom, Magnus (Public Policy Institute of California) |
| Abstract: | Immigrants are widely perceived as being highly entrepreneurial and important for economic growth and innovation. This is reflected in immigration policies and many developed countries have created special visas and entry requirements in an attempt to attract immigrant entrepreneurs. Not surprisingly, a large body of research on immigrant entrepreneurship has developed over the years. In this chapter we provide an overview of the economics literature with respect to some of the most fundamental immigrant entrepreneurship issues as well as the empirical methods and data used. The main themes we address are immigrant entrepreneurs' contributions to the economy, entrepreneurship differences across groups and group differences in entrepreneurial success. |
| Keywords: | entrepreneurship, self-employment, innovation, immigrants, immigration |
| JEL: | J15 J18 J31 J38 J61 L26 M13 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7669&r=ent |
| By: | Olivier Bargain (Aix-Marseille School of Economics); Eliane El Badaoui (Université de Cergy-Pontoise); Prudence Kwenda (University College Dublin); Eric Strobl (Ecole Polytechnique Paris); Frank Walsh (University College Dublin) |
| Abstract: | We develop a model where workers may enter self-employment or search for jobs as employees and where there is heterogeneity across workers’ managerial ability. Workers with higher skills will manage larger firms while workers with low managerial ability will run smaller firms and will be in self-employment only when they cannot find a salaried job. For these workers self-employment is a secondary/informal form of employment. The Burdett and Mortensen (1998) equilibrium search model is used for illustration as a special case of our more general framework. Empirical evidence from Mexico is provided and demonstrates that firm size wage effects for employees and selfemployed workers are broadly consistent with the model. |
| Keywords: | Self-employment, Managerial ability, Informal sector |
| JEL: | J31 O17 |
| Date: | 2013–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:201317&r=ent |
| By: | Edmark, Karin (Uppsala Center for Fiscal Studies); Gordon, Roger (University of California, San Diego) |
| Abstract: | This paper estimates the role of both tax and non-tax determinants in the choice in Sweden to be a closely-held corporation vs. a proprietorship, using individual data for 2004 to 2008 on owners of closely-held businesses. While lower-income individuals face relatively neutral incentives, higher income individuals face strong tax incentives to be corporate. The data suggest a relatively strong correlation between these tax incentives and the likelihood that a firm is corporate. Many conventional non-tax determinants are confirmed in the data as well. |
| Keywords: | self-employment; entrepreneurship; taxation of closely-held businesses; business organizational form |
| JEL: | G32 G38 H25 |
| Date: | 2013–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uufswp:2013_013&r=ent |
| By: | Anastasia Cozarenco (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales [EHESS] - Ecole Centrale Marseille (ECM)); Ariane Szafarz (Centre Emile Bernheim - Université Libre de Bruxelles (ULB) - SBS-EM, CERMi - Centre for European Research in Microfinance) |
| Abstract: | This paper compares the loans granted to male and female entrepreneurs by a French microfinance institution (MFI). The sample period is split in two: before and after the MFI implemented the French EUR 10,000 regulatory loan-size ceiling. In the first period, the MFI does not co-finance projects with mainstream banks and loan size is gender-insensitive. In the second period, the MFI does co-finance above-ceiling projects with mainstream banks, and we observe a gender gap in loan size. The results suggest that co-financing leads the originally gender-neutral MFI to import disparate treatment from mainstream banks. |
| Keywords: | microcredit; loan-size ceiling regulation; commercial bank loan; gender discrimination; glass ceiling; France |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00874448&r=ent |
| By: | Andreas Reinstaller |
| Abstract: | The concepts social innovation and social entrepreneurship have gained considerable attention both in different fields of academic research and in the context of the development of economic and social policies. However, despite its wide-spread use there does not exist a unique or at least widely accepted agreement among scholars on its relevance and meaning. The principal aim of this paper is to work out a general framework for the analysis of social innovations borrowing key concepts from institutional economics, evolutionary (game) theory and the capabilities approach to welfare economics. Using these approaches we specify the elements that are core for the analysis of social innovation as well as secondary elements that are in the context of this concept and specific to particular manifestations of the phenomenon. While this attempt to clarify the concept of social innovation it is necessarily incomplete, we consider it to be a first necessary step to make them more operational for empirical research in social sciences but also for the design, implementation and assessment of policies to support social innovation. The final part of the paper discusses then how social innovation contributes to social and economic progress in general, and its potential contribution to industrial change more specifically. |
| Keywords: | Social innovation, instiutional change, economic development, industrial policy |
| JEL: | D02 O17 O43 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:10:d:0:i:43&r=ent |