nep-ent New Economics Papers
on Entrepreneurship
Issue of 2014‒05‒04
seventeen papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. On the Stability of Preferences: Repercussions of Entrepreneurship on Risk Attitudes By Matthias Brachert; Walter Hyll
  2. University Knowledge Spillovers & Regional Start-up Rates: Supply and Demand Side Factors By Hellerstedt, Karin; Wennberg, Karl; Frederiksen, Lars
  3. Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries By Infelise,Federico
  4. What is the Real Role of Corporate Venture Capital ? By Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
  5. Structural Change and Innovation as Exit Strategies from the Middle Income Trap By Vivarelli, Marco
  6. Gender Differences in Risk Aversion: Do Single-Sex Environments Affect their Development? By Alison L. Booth; Lina Cardona-Sosa; Patrick Nolen
  7. Education and Self-Employment: South Asian Immigrants in the US Labor Market By Dutta, Nabamita; Kar, Saibal; Roy, Sanjukta
  8. Entrepreneurship in the Netherlands - The Top sectors By Sander Wennekers; al et
  9. Women’s self-employment in Poland: A strategy for combining work and childcare? By Anna Matysiak; Monika Mynarska
  10. Crowdfunding In France: A New Revolution? By Aurélie SANNAJUST; Fabien ROUX; Anissa CHAIBI
  11. Femmes entrepreneurs et forte croissance : est-ce possible ? By Léger-Jarniou, Catherine
  12. Les programmes de formation à l’entrepreneuriat sont-ils réellement utiles ? Le cas des concours pédagogiques de création d’entreprise By Jacques Arlotto; Philippe Jourdan; Jean-Michel Sahut; Frédéric Teulon
  13. Le Big-bang de la création pour un accompagnement innovant By Pouget-Cauchy, Catherine
  14. Le concept de Business Model au travers de la littérature By Jacques Arlotto; Jean-Michel Sahut; Frédéric Teulon
  15. Capital risque industriel et innovation technologique By Jean-Sebastien Lantz; Jean-Michel Sahut; Frédéric Teulon
  16. Entrepreneuriat répété, capital organisationnel et accès au financement par capital-risque By Jean Rédis; Jean-Michel Sahut
  17. Entreprenörskap och ekonomisk tillväxt: En kritisk granskning By Delmar, Frédéric; Wennberg, Karl

  1. By: Matthias Brachert; Walter Hyll
    Abstract: The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into entrepreneurship itself plays a decisive role in shaping risk preferences. We find that becoming self-employed is indeed associated with a relative increase in risk attitudes, an increase that is quantitatively large and significant even after controlling for individual characteristics, different employment status, and duration of entrepreneurship. The findings suggest that studies assuming that risk attitudes are stable over time suffer from reverse causality; risk attitudes do not remain stable over time, and individual preferences change endogenously.
    Keywords: endogenous preferences, risk attitudes, entrepreneurship, German Socio-Economic Panel
    JEL: D03 D81 M13
    Date: 2014–04
  2. By: Hellerstedt, Karin (Jönköping International Business School); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics.); Frederiksen, Lars (Innovation Management Group, Department of Business Administration, Aarhus University,)
    Abstract: This paper investigates regional start-up rates in the knowledge intensive services and high-tech industries. Integrating insights from economic geography and population ecology into the literature on entrepreneurship, we develop a theoretical framework which captures how both supply- and demand-side factors mold the regional bedrock for start-ups in knowledge intensive industries. Using multi-level data of all knowledge intensive start-ups across 286 Swedish municipalities between 1994 and 2002 we demonstrate how characteristics of the economic and political milieu within each region influence the ratio of firm births. We find that economically affluent regions dominate entrepreneurial activity in terms of firm births, yet a number of much smaller rural regions also revealed high levels of start-ups. Knowledge spillovers from universities and firm R&D strongly affect the start-up rates for both knowledge intensive manufacturing and knowledge intensive services firms. However, the start-up rate of knowledge-intensive service firms is tied more strongly to the supply of highly educated individuals and the political regulatory regime within the municipality. This suggests that knowledge intensive service-start-ups are more susceptible to both demand-side and supply-side context than manufacturing start-ups. Our study contributes to the growing stream of research that explains entrepreneurial activity as shaped by contextual factors, most notably educational institutions that contribute to technology startups.
    Keywords: Start-ups; Spillovers; Universities; R&D; Political regime
    JEL: L26 M13 P25 R12
    Date: 2014–04–24
  3. By: Infelise,Federico
    Abstract: This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools.
    Date: 2014–04
  4. By: Jean-Sébastien Lantz; Jean-Michel Sahut; Frédéric Teulon
    Abstract: Technological innovation is not exclusive to great industrial groups. Sometimes, innovative and dynamic companies emerge in high-tech sectors and constitute a serious threat for some industry giants. However, the high reactivity of these small companies is generally impaired by problems of financing. Larger firms which want to achieve financial profits and control the most recent innovations often have recourse to corporate venture capital (CVC) as strategic mode of financing. The advantages it brings to every stage of the project (launch, refinancing and project output) compared to financing by venture capital funds will be key factors for future development. In order to gain a better understanding of the role of CVC in the financing of innovating firms, we propose in this article to analyze the various types of CVC on the basis of former studies as well as concrete examples, then to assess what boosts value creation for CVC projects.
    Keywords: Venture capital; CVC; Capital structure; Start-up; Entrepreneurship; Performance
    JEL: G24 G32
    Date: 2014–04–29
  5. By: Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper is intended to provide an updated discussion on a series of issues that the relevant literature suggests to be crucial in dealing with the challenges a middle income country may encounter in its attempts to further catch-up a higher income status. In particular, the conventional economic wisdom – ranging from the Lewis-Kuznets model to the endogenous growth approach – will be contrasted with the Schumpeterian and evolutionary views pointing to the role of capabilities and knowledge, considered as key inputs to foster economic growth. Then, attention will be turned to structural change and innovation, trying to map – using the taxonomies put forward by the innovation literature – the concrete ways through which a middle income country can engage a technological catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technological transfer. Among the ways how a middle income country can foster domestic innovation and structural change in terms of sectoral diversification and product differentiation, a recent stream of literature underscores the potentials of local innovative entrepreneurship, that will also be discussed bridging entrepreneurial studies with the development literature. Finally, the possible consequences of catching-up in terms of jobs and skills will be discussed.
    Keywords: catching-up, structural change, globalization, capabilities, innovation, entrepreneurship
    JEL: O14 O33
    Date: 2014–04
  6. By: Alison L. Booth; Lina Cardona-Sosa; Patrick Nolen
    Abstract: Single-sex classes within coeducational environments are likely to modify students' risktaking 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 behaviour 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
    JEL: C9 C91 C92 J16 D01 D80 J16 J24
    Date: 2013–10–28
  7. By: Dutta, Nabamita (University of Wisconsin, La Crosse); Kar, Saibal (Centre for Studies in Social Sciences, Calcutta); Roy, Sanjukta (World Bank)
    Abstract: Does higher educational attainment lead to greater participation in self-employment? Available studies agree and disagree on this subject through various explanations. We invoke an empirical example from the experiences of immigrants moving from poor countries to rich countries. Further, we focus exclusively on the self-employment participation among south Asian immigration in the United States (using IPUMS Data), which the related literature has clearly neglected thus far despite long traditions of successful business ventures. We establish that higher educational attainment for immigrants from south Asia reduces the likelihood of being self-employed. In fact, a South Asian immigrant with higher educational attainment has 10% less chance of being self-employed than one without. In addition, we show that factors such as longer stay in USA and being a male, affect the likelihood of being self-employed positively. However, another interesting finding of our paper is that being a 'citizen immigrant' affects the probability of being self-employed positively. Though citizen immigrants with higher education attainment are less likely to choose self-employment, the probability is relatively higher in comparison to the non-citizen immigrant group with similar levels of education. This trend lends itself to a more than proportionate participation in self-employment by the citizen immigrants and the difference with immigrant non-citizen group becomes statistically significant. These results have various static and dynamic implications for the native labor market in host countries.
    Keywords: immigration, occupation, microdata, USA, South Asia
    JEL: J11 J15 J24
    Date: 2014–04
  8. By: Sander Wennekers; al et
    Abstract: This eleventh edition deals with Top sectors and their importance to the Dutch economy. In 2010, the Dutch government introduced a new policy framework regarding the business sector. Besides generic measures to strengthen the business environment for all companies, there is a specific policy track to improve the performance of a number of important business sectors by building excellent eco-systems of government, knowledge institutes and businesses. Products and technologies produced by these sectors are furthermore important because they can provide solutions for societal problems. Topics: Entrepreneurship in the Netherlands in international perspective The policy of the Dutch government on top sectors Characteristics of SMEs in top sectors Entrepreneurship and business dynamics in the Netherlands - enabling experimentation �
    Date: 2014–04–25
  9. By: Anna Matysiak; Monika Mynarska (Institute of Statistics and Demography, Warsaw School of Economics; Institute of Psychology, Cardinal Stefan Wyszyñski University in Warsaw)
    Abstract: The paper investigates whether self-employment, which generally offers greater flexibility with respect to the hours and place of work, is chosen by women in order to achieve a better balance between paid work and family. The empirical research on this topic has provided conflicting evidence. The shortcomings of previous studies are discussed and accounted for. First, we investigate women's self-employment choices in relationship with childbearing and childrearing, and we apply qualitative methodology to examine the motives that trigger these decisions. Second, in the quantitative part of the study, we investigate the direction of the relationship by analyzing whether self-employment encourages childbearing, or whether motherhood leads women to choose a more flexible form of employment. Finally, we account for the selection of mothers into the group of self-employed due to time-constant unobserved characteristics. Our results show that self-employment does not affect women's fertility decisions, but it can become an attractive option for women after they have children because of the flexibility it offers. Nevertheless, self-employment does not seem to be preferred to W&S contracts. Instead, it is seen as an alternative to being jobless or in a "bad job" (i.e., one that is inflexible, stressful, or demanding).
    Keywords: Women’s self-employment, work-family reconciliation, child-care, fertility, Poland
    JEL: J13 J22 J16
    Date: 2013
  10. By: Aurélie SANNAJUST; Fabien ROUX; Anissa CHAIBI
    Abstract: In the last few years, small firms have had difficulties to finance their projects via the traditional bank system. A new type of financing has recently appeared in Europe and in particular in France: the crowdfunding. It is a method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals via Internet. Our paper contributes to the literature by introducing this financial innovation and building a theoretical framework to explain its success. We also discuss some more practical issues to enhance crowdfunding in France.
    Keywords: financial innovation, crowdfunding, SMEs, France.
    JEL: G24 G34
    Date: 2014–04–22
  11. By: Léger-Jarniou, Catherine
    Abstract: Les femmes entrepreneurs vivent la croissance différemment. Contrairement à une vision plus traditionnelle de l'entrepreneuriat féminin, notre étude porte sur l’hypothèse selon laquelle certaines femmes entrepreneures cherchent délibérément la croissance. A partir de cette hypothèse, un certain nombre de questions se posent : Comment voient-elles leur entreprise ? Comment prennent-elles la décision de la croissance ? Comment gèrent-elles cette situation ? En particulier, la relation de leadership et l'équilibre entre vie privée et professionnelle seront étudiés. Le papier passe en revue la littérature sur les femmes entrepreneurs. Une analyse des données de femmes entrepreneurs sélectionnées en raison de la forte croissance de leur entreprise est présentée. Des entretiens semi-directifs sont réalisés afin de mieux comprendre leur comportement et de répondre aux questions posées. Nos résultats mettent en évidence plus de similitudes que de différences entre les entrepreneurs féminins et masculins, quand les femmes choisissent délibérément la croissance pour leur entreprise, même si elles vivent la croissance différemment en ce sens qu’elle n’a pas la même signification pour elles que pour les hommes. Ces femmes montrent ainsi une façon de gérer très particulière et trouvent un équilibre entre vie privée et vie professionnelle. Une prise de conscience et une compréhension accrues de cette population d'entrepreneurs pourraient être utiles pour les décideurs politiques et les banquiers/investisseurs pour les amener à accorder plus d'attention à ces entrepreneurs.
    Keywords: entrepreneuriat féminin; croissance; choix stratégiques; management et leadership;
    JEL: L11 L25 L26
    Date: 2013–10
  12. By: Jacques Arlotto; Philippe Jourdan; Jean-Michel Sahut; Frédéric Teulon
    Abstract: This article questions the impact of contest « Challenge Projets d’Entreprendre » on entrepreneurial intention of students, but also its real contribution to the creation of innovative firms as motivation and stimulation factors. The results confirm its role of «awakening» among students, but they do not suggest that this type of training predominantly influence the passage to the act of creation, even for the winners of this competition.
    Date: 2014–04–29
  13. By: Pouget-Cauchy, Catherine
    Abstract: L’approche cognitive de la création tient compte des spécificités et appelle un accompagnement innovant fonction de l’objet qu’il accompagne. Elle est illustrée et discutée par une étude empirique d’un semestre auprès de six créateurs d’entreprise au sein de l’incubateur Novancia en 2006. Elle décrit un processus polycyclique de la genèse. L’accompagnement, qui reste limité en pratique, en tenant compte de cet ensemble contribuerait à développer une formation à la technologie de la création et du projet d’entreprise.
    Keywords: création; conception; cognition; accompagnement innovant;
    JEL: O31 L26 L53
    Date: 2013–10
  14. By: Jacques Arlotto; Jean-Michel Sahut; Frédéric Teulon
    Abstract: The concept of "Business Model" emerged from the mid 90s with the rise of eCommerce and more generally of the "new economy". The mutations responsible of its development are technological, economic and regulatory. Then, the concept of business model was built by successive additions and sedimentation of many papers, reports and books that came to define its meaning over time. In addition to its ability to explain why some firms perform better than others, this concept opens up many ways and applications for entrepreneurship research.
    Date: 2014–04–29
  15. By: Jean-Sebastien Lantz; Jean-Michel Sahut; Frédéric Teulon
    Abstract: Le capital risque industriel (CVC) joue un rôle moteur dans le développement d’innovations technologiques. C’est à la fois un apport en fonds propres ainsi qu’en compétences techniques et stratégiques aux start-up. Mais c’est également une stratégie entrepreneuriale réalisée à l’extérieur des grands groupes car ces derniers ne peuvent plus se contenter d’essayer de créer en interne des innovations. Le capital risque industriel permet ainsi de réduire le risque de l’innovation tout en gardant un certain contrôle sur l’entreprise cible ou une option de rachat sur l’innovation une fois que cette dernière aura dépassé le stade de l’émergence. Le CVC apparaît donc comme un mode de financement de l’innovation externe et plus efficient. Malgré les crises, il continue de se développer dans les secteurs high-tech les moins touchés notamment dans les biotechnologies. Les avantages qu’il apporte à chaque étape du projet par rapport au financement par des fonds de capital risque sont un gage de sa pérennité.
    Keywords: capital risque, innovation, performance, financement, motivation, investissement
    Date: 2014–04–22
  16. By: Jean Rédis; Jean-Michel Sahut
    Abstract: This article is about the existence of potential differences in access to venture capital between serial entrepreneurs (who have founded several businesses, either one after the other or simultaneously) and new entrepreneurs (who create a business for the first time). Even though the empirical results differ regarding the serial entrepreneurs’ outperformance compared to new entrepreneurs, numerous examples seem to suggest that serial entrepreneurs have an easier access to venture capital. This paradox can be explained through organisational theory. The distribution of venture capital is characterized by an information asymmetry between the investor and the entrepreneur. This problem can either be solved through contracts or rely on a mutual confidence. If we look at the second solution, the entrepreneurial experience, because considered as entrepreneurial training, is an advantage for the serial entrepreneur, because he or she has both more human capital (experience) and social capital (network) than a new entrepreneur. These are advantages that can give the entrepreneur easier access to venture capital. A review of empirical studies points towards an easier access to venture capital for serial entrepreneurs. They access funds more quickly, and receive bigger amounts than new entrepreneurs. But the studies are less conclusive if we look for a higher valuation of the serial entrepreneurs’ businesses compared to those of the new entrepreneurs.
    Keywords: entrepreneurial finance ; venture capital ; start-up ; organizational capital ; human capital ; social capital ; serial entrepreneurship.
    Date: 2014–04–29
  17. By: Delmar, Frédéric (Sten K. Johnson Centre for Entrepreneurship School of Economics and Management, Lund University and Research Institute of Industrial Economics.); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics.)
    Abstract: Akademisk teori såväl som politiska diskussioner framhåller ofta entreprenörskap som gynnsamt för ekonomisk tillväxt. De specifika teoretiska mekanismerna som gör att entreprenörskap leder till tillväxt har dock inte kunnat fastslås och det är därför inte klart om entreprenörskap alltid är ekonomiskt gynnsamt, och, om så är fallet, för vem? I denna artikel kommer vi att sammanfatta den empiriska forskningen inom entreprenörskap för att kritiskt diskutera de potentiella relationerna mellan entreprenörskap och tillväxt.
    Keywords: Entreprenörskap; Tillväxt; Institutioner; Ojämlikhet
    JEL: E24 L26 O15 P46
    Date: 2014–04–22

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