nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒11‒14
eight papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. How Culture Molds the Effects of Self Efficacy and Fear of Failure on Entrepreneurship By Wennberg, Karl; Pathak, Saurav; Autio, Erkko
  2. Entrepreneurship versus Joblessness: Explaining the Rise in Self-Employment By Paolo Falco; Luke Haywood
  3. Gender Differences in Risk Aversion: Do Single-Sex Environments Affect their Development? By Alison L. Booth; Lina Cardona-Sosa; Patrick Nolen
  4. Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit By Claudia Piras; Andrea Filippo Presbitero; Roberta Rabellotti
  5. Money for novelty: The role of venture capital investments for innovation in young technology-based firms By Heger, Diana
  6. Local government and small business:mismatch of expectations By Juri Plusnin; Jaroslav Slobodskoy-Plusnin
  7. SME contributions to employment, job creation, and growth in the Arab world By Nasr, Sahar; Rostom, Ahmed
  8. Der nachhaltige Beschäftigungsbeitrag von KMU: Eine sektorale Analyse unter besonderer Berücksichtigung der FuE- und wissensintensiven Wirtschaftszweige By May-Strobl, Eva; Haunschild, Ljuba

  1. By: Wennberg, Karl (The Ratio Institute & Stockholm School of Economics); Pathak, Saurav (Michigan Tech University); Autio, Erkko (Imperial College London Business School)
    Abstract: We use data from the Global Entrepreneurship Monitor (GEM) and the Global Leadership and Organizational Behavior Effectiveness study (GLOBE) for 42 countries to investigate how the effects of individual’s self-efficacy and fear of failure on entrepreneurial entry are contingent on national cultural practices. Using multi-level methodology, we observe that the positive effect of self-efficacy on entry is moderated by the cultural practices of institutional collectivism and performance orientation. Conversely, the negative effect of fear of failure on entry is moderated by the cultural practices of institutional collectivism and uncertainty avoidance. We discuss the implications for theory and methodological development in culture and entrepreneurship.
    Keywords: Culture; Entrepreneurship; Institutions; Multi-level
    JEL: D24 L25 L26
    Date: 2013–11–04
  2. By: Paolo Falco; Luke Haywood
    Abstract: The self-employed constitute a large proportion of the workforce in developing countries and the sector is growing. Different accounts exist as to the causes of this development, with pull factors such as high returns to capital contrasted with push factors such as barriers to more desirable salaried jobs. Using data from Ghana, we investigate the changing structure of earnings in self-employment relative to salaried work. We decompose earnings in a two-sector labour market allowing for flexible patterns of sorting on unobservables by means of a correlated random coefficient model estimated by IV-GMM. A unique panel dataset provides us with suitable instruments to tackle the endogeneity of sector choice and capital accumulation. We show that returns to productive characteristics in SE have increased significantly over the period 2004-11 and the sector has attracted workers with higher skills. We conclude that pull factors have significantly strengthened, pointing against the grim view of self-employment as an occupation of last resort.
    Keywords: : self-employment, semiparametric models, comparative advantage, segmentation, African labour markets
    JEL: O15 J24 J42 C14
    Date: 2013
  3. By: Alison L. Booth; Lina Cardona-Sosa; Patrick Nolen
    Abstract: Single-sex classes within coeducational environments are likely to modify students' risk-taking attitudes in economically important ways. To test this, we designed a controlled experiment using first year college students who made choices over real-stakes lotteries at two distinct dates. Students were randomly assigned to weekly classes of three types: all female, all male, and coeducational. They were not allowed to change group subsequently. We found that women are less likely to make risky choices than men at both dates. However, after eight weeks in a single-sex class environment, women were significantly more likely to choose the lottery than their counterparts in coeducational groups. These results are robust to the inclusion of controls for IQ and for personality type, as well as to a number of sensitivity tests. Our findings suggest that observed gender differences in behavior under uncertainty found in previous studies might partly reflect social learning rather than inherent gender traits.
    Keywords: Gender, risk preferences, single-sex groups, cognitive ability. Classification JEL: C9, C91, C92, J16, D01, D80, J16, J24
    Date: 2013–10
  4. By: Claudia Piras (IDB); Andrea Filippo Presbitero (International Monetary Fund, Universit… Politecnica delle Marche - MoFiR); Roberta Rabellotti (Universit… di Pavia, Department of Political and Social Sciences)
    Abstract: Standards measures of female ownership and management of firms included in the World Bank Enterprise Survey do not support the existence of a gender gap in access to finance in the Latin American and Caribbean region. Nonetheless, more precise measures show that women-led businesses are more likely to be financially constrained than other comparable firms. The evidence presented herein suggests that this gender gap may be driven by taste-based discrimination. This paper exploits a rich dataset that provides detailed information about female ownership and management in firms, allowing for further understanding of gender gaps in access to finance.
    Keywords: Access to credit, Discrimination;, Firm ownership, Gender;
    JEL: G21 J16 O54
    Date: 2013–10
  5. By: Heger, Diana
    Abstract: This paper examines the role of venture capital on a firm's innovation activities by using a data set of German technology-based firms founded between 1996 and 2005. Innovation is proxied by patent counts and an index of innovativeness which reflects the degree to which a young firm has developed new technologies based on its own or external resources. The results show that VC financing has a positive impact on both patenting and innovativeness, even if we account for endogeneity of VC financing. --
    Keywords: innovation,venture capital,young technology-based firms,discrete choice methods,count data models,endogeneity
    JEL: O31 G24 C31 C35 L20
    Date: 2013
  6. By: Juri Plusnin (National Research University Higher School of Economics. Faculty of Public Administration. Professor); Jaroslav Slobodskoy-Plusnin (Russian Academy of Sciences. Institute of Higher Nervous Activity and Neurophysiology. Researcher;)
    Abstract: The article summarizes the data from a few tens of interviews with entrepreneurs – representatives of a small business. The purpose of the interview was to discover expectations and suggestions from entrepreneurs to the local and state government. Interview data reveal the profound contradictions between the business and the authorities. These contradictions are based not only on results of the local administration’s actions, but also on the specific current status of local (self-)government that makes it impossible to effectively interact with the business. On the other hand, the development of local businesses has led to a peculiar configuration of the business community, also making it difficult to communicate with the authorities. As a result is trying to get protection from the local government that leads to inadmissible merging of business and government and monopolizing of business in almost every district. Direct consequences of such a merging are government inefficiency, lack of incentives for business development, and stagnation. Some “evolutionary stable strategy” has been developed, that does not allow winning any of the actors yet saving them from loses in competition with the outside players. Understanding of the inefficiency and dead-end of such an interaction by some entrepreneurs forces them to raise claims to local authority. Interviews analyses resulted in the list of complaints and suggestions on how to optimize an interaction between the local business and local authorities
    Keywords: municipal government, local self-government, small business, business-government interactions, partnership between municipality and business.
    JEL: H73
    Date: 2013
  7. By: Nasr, Sahar; Rostom, Ahmed
    Abstract: Recent economic and political developments have highlighted a challenge shared across the Arab region of generating employment, promoting inclusive growth, and improving competitiveness. In the short run, weakened macroeconomic fundamentals in the developing economies of the Middle East and North Africa are a key challenge. The region's main challenge is to achieve sustainable growth that delivers the quantity and quality of jobs needed. An inclusive and competitive private sector has proven to be one of the most effective and long-term solutions for this challenge. This paper provides an analytical framework to diagnose and identify key challenges to the growth of small and medium enterprises that is supported by a quantitative model based on the World Bank's Enterprise Surveys database. The findings reconfirm that the route to a sustained role for small and medium enterprises in job creation requires improving the credibility of reforms, the effectiveness of policies, and equitable enforcement. Although one size fits all is infeasible for Arab countries, it is important to design policies across sectors to create productive employment and promote economic growth. Supporting innovation and enhancing access to finance are central to the development agenda for small and medium enterprises. And creating an enabling environment and setting up accountable institutions are key to ensure equal opportunity and inclusive growth.
    Keywords: Access to Finance,Environmental Economics&Policies,Labor Markets,Microfinance,Labor Policies
    Date: 2013–10–01
  8. By: May-Strobl, Eva; Haunschild, Ljuba
    Abstract: Die Mittelstandshypothese besagt, dass kleine und mittlere Unternehmen (KMU) im Verhält-nis zur bereits bestehenden Beschäftigung einen relativ höheren Beitrag zur Schaffung neuer sozialversicherungspflichtiger Arbeitsplätze leisten als Großunternehmen. Die Ergebnisse der Analyse von Längsschnittdaten des Umsatzsteuerpanels 2001-2009 stützen die These. In der zurückliegenden Dekade waren es ausschließlich KMU, die einen Nettozuwachs an sozialversicherungspflichtiger Beschäftigung ermöglichten. Großunternehmen haben 2009 im Vergleich zu 2001 Arbeitsplätze verloren. Der Strukturwandel weg von der Industrie hin zur Dienstleistungsgesellschaft fördert diese Entwicklung. Die beschäftigungspolitische Überlegenheit bestätigte sich für alle untersuchten Sektoren ebenso wie für die innovativen Teilbereiche der Wirtschaft. Die Gültigkeit der Mittelstandshypothese ist insbesondere auf die arbeitsmarktpolitische Bedeutung der Kleinstunternehmen und speziell der Gründungen von Kleinstunternehmen zurückzuführen. -- It is often claimed that small and medium sized enterprises (SME) account for a dispropor-tionate large share of net employment growth. The results drawn from a job-turnover analysis that bases on longitudinal micro data of the German turnover tax statistics 2001-2009 confirm the thesis. We find that in the last decade SMEs were responsible for all net growth of employment reducing the negative employment effect of large enterprises. Job destruction emerged particularly in manufacturing industry whereas job creation prevails in the service sector. In all industries SME accounted for a larger share of net employment growth than large enterprises. The study highlights the important role of micro enterprises and new busi-ness creation for job creation in Germany.
    Keywords: KMU,Mittelstandshypothese,sozialversicherungspflichtige Beschäftigung,Arbeitsplatzeffekte,Job-Turnover,SME,employment,job creation,job turnover
    JEL: J63 L25 O10 O30
    Date: 2013

This nep-ent issue is ©2013 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.