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on Entrepreneurship |
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Issue of 2014‒01‒24
six papers chosen by Marcus Dejardin University of Namur and Universite' Catholique de Louvain |
| By: | Hessels, Jolanda (Erasmus University Rotterdam); Brixy, Udo (Institute for Employment Research (IAB), Nuremberg); Naudé, Wim (Maastricht School of Management); Gries, Thomas (University of Paderborn) |
| Abstract: | We extend Lazear's theory of skills variety and entrepreneurship in three directions. First, we provide a theoretical framework linking new business creation with an entrepreneur's skill variety. Second, in this model we allow for both generalists and specialists to possess skill variety. Third, we test our model empirically using data from Germany and the Netherlands. Individuals with more varied work experience seems indeed more likely to successfully start up a new business and that being a generalist does not seem to be important in this regard. Finally, we find that innovation positively moderates the relationship between having varied experiences, and being successful in starting up a new business. Our conclusion is that entrepreneurs with more varied work experience are more likely to introduce innovations that have not only technical, but also commercial value. Our findings support the notion that entrepreneurship can be learned. |
| Keywords: | entrepreneurship, start-ups, human capital, innovation, skills |
| JEL: | L26 M13 J24 O31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7889&r=ent |
| By: | Fritsch, Michael (University of Jena); Kritikos, Alexander S. (University of Potsdam, DIW Berlin); Pijnenburg, Katharina (DIW Berlin) |
| Abstract: | We investigate whether people are more willing to become self-employed during boom periods or during recessions and to what extent business cycles or unemployment levels influence entries into entrepreneurship. Our analysis for Germany reveals that there is a positive relationship between unemployment rates and start-up activities. Moreover, new business formation is higher during recessions than in boom periods. This implies that new business formation is counter-cyclical. When disentangling periods of low and high unemployment we find that the effect of unemployment on new business formation is only statistically significant if the level of unemployment is below the trend, indicating a "low unemployment retain effect". |
| Keywords: | self-employment, business cycle, unemployment, start-up |
| JEL: | L26 E32 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7852&r=ent |
| By: | Mohammad Reza Farzanegan (University of Marburg) |
| Abstract: | This study provides the first empirical investigation to test one of transmission channels of resource curse, i.e., marginalized entrepreneurship activities. Our panel data analysis of 65 countries from 2004 to 2011 shows a negative and statistically significant association between oil rents dependency and entrepreneurship indicator. This finding is robust to control of other major drivers of entrepreneurship, unobservable country and time fixed effects and a different measurement of oil rents dependency. Additionally our main results show that government effectiveness among other dimensions of good governance has a statistically significant moderating effect in entrepreneurship-oil rents nexus. |
| Keywords: | resource curse, oil rents, entrepreneurship, governance, business formation |
| JEL: | O13 Q32 M13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201406&r=ent |
| By: | Bat Batjargal |
| Abstract: | What is the interrelationship among formal institutions, social networks, and new venture growth? Drawing on the theory of institutional polycentrism and social network theory, we examine this question using data on 637 entrepreneurs from four different countries. We find the confluence of weak and inefficient formal institutions to be associated with a larger number of structural holes in the entrepreneurial social networks. While the effect of this institutional order on the revenue growth of new ventures is negative, a network’s structural holes have a positive effect on the revenue growth. Furthermore, the positive effect of structural holes on the revenue growth is stronger in an environment with a more adverse institutional order (i.e., weaker and more inefficient institutions). The contributions and implications of these findings are discussed. |
| Keywords: | Institutional polycentrism, networks, new venture growth, Institutions, Networks, Entrepreneurship, New ventures, and Emerging economies |
| JEL: | B52 C12 D02 L26 M13 |
| Date: | 2013–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2013-1060&r=ent |
| By: | Hong, Suting (Federal Reserve Bank of Philadelphia) |
| Abstract: | There are two ways for a venture capital (VC) firm to enter a new market: initiate a new deal or form a syndicate with an incumbent. Both types of entry are extensively observed in the data. In this paper, I examine (i) the causes of syndication between entrant and incumbent VC firms, (ii) the impact of entry on VC contract terms and survival rates of VC-backed start-up companies, and (iii) the effect of syndication between entrant and incumbent VC firms on the competition in the VC market and the outcomes of incumbent-backed ventures. By developing a theoretical model featuring endogenous matching and coalition formation in the VC market, I show that an incumbent VC firm may strategically form syndicates with entrants to maintain its bargaining power. Furthermore, an incumbent VC firm is less likely to syndicate with entrants as the incumbent’s expertise increases. I find that entry increases the likelihood of survival for incumbent-backed start-up companies while syndication between entrants and incumbents dampens the competitive effect of entry. Using a data set of VC-backed investments in the U.S. between year 1990 and 2006, I find empirical evidence that is consistent with the theoretical predictions. The estimation results remain robust after I control for the endogeneity of entry and syndication. |
| Keywords: | Entrepreneurship; Externalities (Economics); Venture capital; Entry; Contracts; Exernality; Efficiency; Coalition |
| JEL: | C78 D86 G24 L26 M13 |
| Date: | 2013–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:13-49&r=ent |
| By: | Segarra Blasco, Agustí, 1958-; Gombau, Verònica |
| Abstract: | This paper analyzes the profile of Spanish young innovative companies (YICs) and the determinants of innovation and imitation strategies. The results for an extensive sample of 2,221 Spanish firms studied during the period 2004–2010 show that YICs are found in all sectors, although they are more concentrated in high-tech sectors and, in particular, in knowledge-intensive services (KIS). Three of every four YICs are involved in KIS. Our results highlight that financial and knowledge barriers have much impact on the capacity of young, small firms to innovate and to become YICs, whereas market barriers are not obstacles to becoming a YIC. Public funding, in particular from the European Union, makes it easier for a new firm to become a YIC. In addition, YICs are more likely to innovate than mature firms, although they are more susceptible to sectoral and territorial factors. YICs make more dynamic use of innovation and imitation strategies when they operate in high-tech industries and are based in science parks located close to universities. Keywords: innovation strategies, public innovation policies, barriers to innovation, multinomial probit model. JEL Codes: D01, D22 , L60, L80, O31 |
| Keywords: | Microeconomia, Conducta organitzacional, Manufactures, Sector terciari, Innovacions tecnològiques -- Política governamental, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/222200&r=ent |