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on Entrepreneurship |
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Issue of 2014‒04‒29
nine papers chosen by Marcus Dejardin University of Namur and Universite' Catholique de Louvain |
| By: | Henley, Andrew (Aberystwyth University) |
| Abstract: | This paper provides a quantitative investigation of the strength of the potential relationship between entrepreneurial activity and religious affiliation. The relationship between religion and economic development has attracted recent attention. A positive association may indicate that religion raises the social acceptability of entrepreneurial activity, by inculcating incentives to accumulate wealth and acquire personal responsibility, as well as providing social capital and may be particularly effective where state governance systems are weak. Institutionalist perspectives suggest that religious institutions may support definition of property rights. Economic benefits flow through reduced transactions costs. This paper engages these discussions in order to present a preliminary empirical investigation of the relationships which may exist across national boundaries between religion and entrepreneurship. Definitions of entrepreneurship are taken from the Global Entrepreneurship Monitor (GEM) studies for 2011 and 2012, focusing on the individual rather than on the business venture. Recent data on religious affiliation across countries are used to construct various measures of religious activity and diversity. Preliminary findings suggest, in particular, a significant association between GEM indicators and evangelical-pentecostal-charismatic Christian affiliation. The strength of these associations is offset by state regulation of religion. These findings suggest that attention needs to be paid to the potentially important role that certain forms of religion might play is providing a supportive cultural environment for entrepreneurship. They also suggest that policy-makers may wish to pay closer attention to the potentially supportive role that certain religious organizations might play in new business formation. |
| Keywords: | entrepreneurship, economic development, religion |
| JEL: | L26 M13 O43 Z12 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8111&r=ent |
| By: | Elvin Afandi; Majid Kermani |
| Abstract: | There is no gender difference between success in establishing a business once both males and females have the same preference to self-employment and attempts towards establishing a new business. However, the gender gap tends to be huge when it comes to individual preferences and attempts to start up an entrepreneurial activity. In this study, we empirically estimate the role of inequality in individual and country attributes between man and woman in the bridging this gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions on choice of weighting matrix for non-linear probability models, we found that differences in both individual as well as country characteristics largely favor males, while the former play greater role in explaining the gender gap. About a one third of the gender gap in both latent as well as nascent entrepreneurship can be traced back to females owning smaller endowments than males. Empirical results also show differences in return to measured characteristics favor males. Nevertheless, a portion of gender gap that is unexplained by the differences in these characteristics and their coefficients (or return) could still indicate gender discrimination. |
| Keywords: | latent entrepreneurship, nascent entrepreneurship, gender gap |
| JEL: | J16 L26 M13 |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wdi:papers:2014-1074&r=ent |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and link this measure to economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid- 1920s have higher start-up rates about 80 years later. Furthermore, we find that the effect of current start-up activity on regional employment is significantly higher in regions with a pronounced entrepreneurial culture. We conclude that a regional culture of entrepreneurship is an important resource for regional growth. |
| Keywords: | Entrepreneurship, economic development, self-employment, new business formation, entrepreneurship culture, institutions |
| JEL: | L26 R11 O11 |
| Date: | 2014–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-014&r=ent |
| By: | MATSUDA Naoko; MATSUO Yutaka |
| Abstract: | This research analyzes how human capital and social capital may impact business start-up activities by dividing the business start-up process into three stages and two periods. It shows that the kind of social capital involved in setting up a company differs from that required for the entrepreneur to make a profit. It also shows that successful entrepreneurs and those who are not exhibit different trends in their selection of persons with whom they consult regarding business operations and the contents of the consultations. |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14018&r=ent |
| By: | Amélie Charles (Audencia Recherche - Audencia); Etienne Redor (Audencia Recherche - Audencia) |
| Abstract: | Although existing research has documented in very wide and detailed terms the impact of the presence of female directors on the financial performance of firms, very little is known about the link between board composition and corporate risk-taking. Drawing from the academic literature demonstrating that women are more risk averse than men, herein, we analyze the relationship between gender diversity and firm risk. In particular, we study whether the appointment of female directors affects firm risk level. We use three different measures of risk (total risk, systematic risk, and unsystematic risk) and compare firm risk level before the addition of new members (both male and female) to the corporate board to the risk level after such additions. Our results indicate that there is no significant gender difference in the risk level before and after the appointment of a director, when the whole sample is considered. However, some differences appear when the analysis is conducted by industry. Similarly, we show that the appointment of a female director has a greater impact on firm risk in female-director-friendly firm. |
| Date: | 2014–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00977037&r=ent |
| By: | Yothin Jinjarak (Asian Development Bank Institute (ADBI)); Paulo Jose Mutuc; Ganeshan Wignaraja |
| Abstract: | This paper studies factors associated with firm participation in export markets, focusing primarily on firm size and access to credit, based on a survey sample comprising observations of 8,080 small and medium enterprises (SMEs) (with fewer than 100 employees) and non-SME firms in developing East Asian countries across sectors. The main findings suggest the interdependent relationships between export participation, firm size, and access to credit. SMEs participating in export markets tend to gain more access to credit, while potential scale economies (firm sizes) of SMEs are positively associated with participation in export markets. The estimation results also point to the supportive influences of foreign ownership, worker education, and production certification on export participation, and the positive effects of financial certification, managerial experience, and collateral/loan value on access to credit for SMEs. |
| Keywords: | SMEs, East Asian firms, export markets, export participation, firm size, access to credit |
| JEL: | D22 E44 F14 L16 O14 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:24047&r=ent |
| By: | C. J. Krizan; Adela Luque; Alice Zawacki |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-22&r=ent |
| By: | Luuk Rietveldt (Lecturer at Utrecht University); Robert Goedegebuure (Associate Professor at the Maastricht School of Management) |
| Abstract: | The role of network relationships has become topical in research on the internationalization process of firms. Research has focused on the internationalization process of firms in developed nations. This research adds to the literature by looking at the use of network relationships in Ethiopian small and medium sized enterprises (SMEs2) exporting spices, meat and shoes. Propositions are formulated from findings in the literature. Using a multiple case study of three Ethiopian firms, the influence of different networks on the foreign market entry process (FME) was researched. The focus was on the effect of network relations on the foreign market choice (FMC) and market entry mode choice (MEMC). The outcomes show that network relations play an important role in the internationalization. Contrary to expectations, the internationalization of the Ethiopian case firms depended completely on foreign firms initiating contacts and therewith the entrance into foreign markets. The foreign firms also influenced market entry mode choices of the firms under study. None of the firms did market research or had a strategic plan to enter the market, reflecting a reactive approach to internationalization. The vertical network, based on strong formal relations with the foreign product buyers, played a significant role in the foreign market and market entry mode choice. An important finding from the research is the notion that horizontal networks, especially the intermediary role played by foreign country governments and foreign and Ethiopian export organizations, had a big influence in the early stages on the contact relations between the foreign buyer and the Ethiopian exporter. |
| Keywords: | Network relations, internationalization, sme's (small and medium sized enterprises), foreign market entry, foreign market choice |
| JEL: | F23 L14 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2014/08&r=ent |
| By: | Czarnitzki, Dirk; Hall, Bronwyn H.; Hottenrott, Hanna |
| Abstract: | Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for firms with limited internal resources. Previous literature provided evidence for start-up firms on the role of patents as signals to investors, in particular to Venture Capitalists. This study adds to previous insights by studying the effects of firms' patenting activity on the degree of financing constraints on R&D for a panel of established firms. The results show that patents do indeed attenuate financing constraints for small firms where information asymmetries may be particularly high and collateral value is low. Larger firms are not only less subject to financing constraints, but also do not seem to benefit from a patent quality signal. -- |
| Keywords: | Patents,Quality Signal,Research and Development,Financial Constraints,Innovation Policy |
| JEL: | O31 O32 O38 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14023&r=ent |