nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒12‒20
five papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. Entrepreneurs and Output: Theory and Empirical Evidence with Spanish Data By Vicente Salas-Fumas; J. Javier Sanchez-Asin; David Storey
  2. Business Literacy and Development: Evidence From a Randomized Controlled Trial in Rural Mexico By Gabriela Calderón; Jesse M. Cunha; Giacomo De Giorgi
  3. The Impact of City Contracting Set-Asides on Black Self-Employment and Employment By Chatterji, Aaron K; Chay, Kenneth Y; Fairlie, Robert W
  4. Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces By Morgan, Horatio M.
  5. High growth firms, innovation and competition: the case of the US pharmaceutical industry By Mariana Mazzucato; Stuart Parris

  1. By: Vicente Salas-Fumas (Faculty of Economics, University of Zaragota, Spain); J. Javier Sanchez-Asin (Faculty of Economics, University of Zaragota, Spain); David Storey (School of Business Management and Economics, University of Sussex, UK)
    Keywords: Occupational choice, Self-employment, entrepreneurship, entrepreneural skills, Spanish economy
    JEL: J24 L26 D24
    Date: 2013–12
  2. By: Gabriela Calderón; Jesse M. Cunha; Giacomo De Giorgi
    Abstract: A large share of the poor in developing countries run small enterprises, often earning low incomes. This paper explores whether the poor performance of businesses can be explained by a lack of basic business skills. We randomized the offer of a free, 48-hour business skills course to female entrepreneurs in rural Mexico. We find that those assigned to treatment earn higher profits, have larger revenues, serve a greater number of clients, are more likely to use formal accounting techniques, and more likely to be registered with the government. Indirect treatment effects on those entrepreneurs randomized out of the program, yet living in treatment villages, are economically meaningful, yet imprecisely measured. We present a simple model of experience and learning that helps interpret our results, and consistent with the theoretical predictions, we find that “low-quality” entrepreneurs are the most likely to quit their business post-treatment, and that the positive impacts of the treatment are increasing in entrepreneurial quality.
    Keywords: business literacy, development, entrepreneurship
    JEL: C93 I25 O12 O14
    Date: 2013–12
  3. By: Chatterji, Aaron K; Chay, Kenneth Y; Fairlie, Robert W
    Abstract: In the 1980s, many U.S. cities initiated programs reserving a proportion of government contracts for minority-owned businesses. The staggered introduction of these set-aside programs is used to estimatetheir impacts on the self-employment and employment rates of African-American men. Black business ownership rates increased significantly after program initiation, with the black-white gap falling three percentage points. The evidence that the racial gap in employment also fell is less clear as it is depends on assumptions about the continuation of pre-existing trends. The black gains were concentrated in industries heavily affected by set-asides and mostly benefited the better educated.
    Keywords: Business, Arts and Humanities, entrepreneurship, affirmative action, self-employment, minorities
    Date: 2013–02–01
  4. By: Morgan, Horatio M.
    Abstract: This study empirically evaluates the impact of consolidation activity in the credit union system on the rate of business formation. Drawing on Canadian provincial-level data over the period 1992-2009, it provides evidence which suggests that consolidation activity is unlikely to hurt business formation in the absence of intense competition in the credit market. Specifically, a unit increase in credit union assets per working-age (15-64) individual has a negative, but negligible effect on the rate of business formation. However, the intensification of competition in the credit union system may increase the magnitude of this negative effect. These findings may inform the formulation of small business and entrepreneurship policies. In particular, they suggest that competition policies on the banking sector warrant greater attention as consolidation activity unfolds in the credit union system.
    Keywords: Competition, Consolidation, Credit unions, Business formation, Small business lending
    JEL: C33 G18 G21 L16 L26 M13
    Date: 2013–10–18
  5. By: Mariana Mazzucato (SPRU, University of Sussex, UK); Stuart Parris (Faculty of Economics, Open University, UK)
    Keywords: R&D, Growth, Venture capitalist, quantile regression, pharmaceutical industry
    Date: 2013–12

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.
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