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on Entrepreneurship |
| By: | Francine Lafontaine; Kathryn Shaw |
| Abstract: | Among typical entrepreneurs, is the serial entrepreneur more likely to succeed? If so, why? We answer these two questions using a comprehensive and unique data set on all establishments started at any time between 1990 and 2011 to sell taxable goods and services in the state of Texas. An entrepreneur is defined as the owner of a new business. A serial entrepreneur is one who opens repeat businesses. The success of the business is measured by the duration over which the business is in operation. The data show that serial entrepreneurship is relatively uncommon in retail trade. Of the almost 2.3 million retail businesses of small owners of new businesses in our data, only 25 percent are started by owners who have started at least one business before, and only 8 percent are started by an owner who is still operating at least one other business started earlier. However, once one becomes an entrepreneur for a second time, the probability of becoming one a third time, or fourth time, and so on, keeps rising. Moreover, we find that an owner's prior experience at starting a business increases the longevity of the next business opened, and that controlling for person fixed effects, prior experience still matters. Finally, experience at starting retail businesses in other sectors (e.g. a clothing store versus a repair shop) is beneficial as well, though not as much as same sector experience, and not in the restaurant sector. We conclude that prior experience imparts general skills that are useful in running the new business. |
| JEL: | J00 J24 L26 L81 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20312&r=ent |
| By: | Gale, William; Brown, Samuel |
| Abstract: | Small businesses occupy an iconic place in American public policy debates. This paper discusses interactions between the federal tax code, small business, and the economy. We summarize the characteristics of small businesses, identify the tax provisions that most affect small businesses, and review evidence on the impact of tax and other policies on entrepreneurial activity. We also examine evidence suggesting that it is young firms, not small ones, where job growth and innovation tend to occur. Policies that aim to stimulate young and innovative firms are likely to prove different than policies that subsidize small businesses. |
| Keywords: | entrepreneurship, tax policy, innovation, small business |
| JEL: | H2 |
| Date: | 2013–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57384&r=ent |
| By: | Massón-Guerra, José Luis; Ortín-Angel, Pedro |
| Abstract: | Entrepreneurship capital has been considered in the literature to be a public good, so it will positively affect a region’s total factor productivity. There is evidence confirming a positive relationship between entrepreneurship capital measures and regional production. This paper argues that the number of firms in a region will be positively related with the regional production in the presence of decreasing returns to scale in firms’ production technology. So if we do not control for the number of firms (and entrepreneurship capital is positively related with the stock of firms) we may be mixing both effects, returns to scale and public goods. This paper provides a methodological benchmark for distinguishing between both effects. The analysis conducted using a sample of 52 Spanish provinces for eleven years suggests major differences and conclusions between methodologies. In our data, previous methods overestimate the effect of regional entrepreneurship capital on the economy. |
| Keywords: | Entrepreneurship Capital, Regional Productivity, Scale Economies |
| JEL: | L26 O4 R11 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57470&r=ent |
| By: | Brunello, Giorgio (University of Padova); Langella, Monica (University of Verona) |
| Abstract: | We ask whether local agglomeration affects how recessions impact on entrepreneurship by comparing the probability of being an entrepreneur before and after the Great 2008 Recession in local labour markets where industrial districts are present and in comparable areas. Using Italian Labour Force quarterly data from 2006 to 2011 and a "difference-in-differences" approach, we find that for males aged 40 to 55, who are more likely to be entrepreneurs, the negative effect of the recession on entrepreneurship has been sharper in areas with industrial districts. After examining alternative explanations – ranging from specialization to access to credit, from propensity to export to the industrial sector – we conclude that our findings are consistent with the view that intense social interaction in industrial districts acts as a multiplier that amplifies the response to shocks. |
| Keywords: | entrepreneurship, recession, Italy, industrial districts |
| JEL: | J21 J24 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8331&r=ent |
| By: | Clara Cardone-Riportella (Department of Financial Economics and Accounting, Pablo de Olavide University); María José Casasola-Martinez (Business Administration Faculty, Carlos III University); Isabel Feito-Ruiz (Department of Business Administration, University of Leon) |
| Abstract: | This paper analyzes the impacts of gender and family business background on entrepreneurship intention (EI) and on start-up behavior (SUB) developed by the graduate students of a Spanish international online Master of Business Administration (OL-MBA) program. The main results show that coming from an entrepreneurial family increases entrepreneurial intention, and this result is reinforced when the OL-MBA student is female. Additionally, female students are more likely to engage in start-up behavior if she comes from an entrepreneurial family consistent with the argument that females develop more entrepreneurial skills and have less likely to become a family successor than males. However, this start-up behavior is reduced when female students receive entrepreneurial education or if they have children (dependency context). Also, other personal characteristics, such as non-risk-adverse personality, can motivate EI and SUB. |
| Keywords: | Postgraduate studies impact; Entrepreneurship education; Entrepreneurship intention; Start-up behavior; Gender; Family implications |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:pab:fiecac:14.04&r=ent |
| By: | Owoo, Nkechi S. (University of Ghana); Naudé, Wim (Maastricht University) |
| Abstract: | The productivity of non-farm enterprises in rural Africa may be associated with the productivity of other spatially proximate farm and non-farm enterprises. To test for the presence and significance of such spatial autocorrelation we use data from the geo-referenced 2011 Ethiopian Rural Socioeconomic Survey (ERSS) and the 2010/2011 Nigeria General Household Survey (NGHS). We find evidence of significant spatial autocorrelation. Productivity of non-farm enterprises is widely dispersed across space in both countries. In Ethiopia rural non-farm enterprises are more productive in locations where farms are less productive. In Nigeria, we find evidence for spatial autocorrelation at the individual enterprise level but not at the community level, once we control for location variables. Hence, taking spatial autocorrelation into account using spatial lag and spatial error models, we find education, age, size of the household, religious affiliation and community infrastructure are significant determinants of the labour productivity of non-farm enterprises in Ethiopia and Nigeria. This is the first time, to the best of our knowledge, that the productivity of rural non-farm enterprises in Africa has been studied in this way. |
| Keywords: | entrepreneurship, Africa, rural development, agriculture, spatial autocorrelation, Ethiopia, Nigeria |
| JEL: | L26 C21 M13 O55 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8295&r=ent |
| By: | Bartha, Zoltán; S. Gubik, Andrea |
| Abstract: | The goal of the chapter is to develop an index (Small and Medium-Sized Enterprise Internationalisation Index – SMINI) to measure the degree of internationalisation in the SME sector, and to uncover its most important influencing factors. The index was calculated from a data set obtained from a questionnaire conducted among 1,124 firms from the Visegrad (V4) countries, comprised of 270 Polish, 597 Czech, 113 Hungarian and 144 Slovak firms. The relationship between the index value and the influencing factors was also tested using the same dataset. The influencing factors were chosen based on a literature review. We found that the factors suggested by the literature (company size, company age, ownership structure, innovation activity, network participation and sectorial structure) have a significant effect on the SMINI, but the strength of relationship is either weak or weak to moderate. A multiway ANOVA analysis revealed that three of our variables – firm size, family ownership and innovation – have an 11.8% combined effect on the SMINI. |
| Keywords: | internationalisation, small and medium-sized enterprises, degree of internationalisation |
| JEL: | F23 L25 M16 |
| Date: | 2014–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57382&r=ent |
| By: | Thorsten Beck; Hans Degryse; Ralph de Haas; Neeltje van Horen |
| Abstract: | Using a novel way to identify relationship and transaction banks, we study how banks' lending techniques affect funding to SMEs over the business cycle. For 21 countries we link the lending techniques that banks use in the direct vicinity of firms to these firms' credit constraints at two contrasting points of the business cycle. We show that relationship lending alleviates credit constraints during a cyclical downturn but not during a boom period. The positive impact of relationship lending in an economic downturn is strongest for smaller and more opaque firms and in regions where the downturn is more severe. |
| Keywords: | Relationship banking; credit constraints; business cycle |
| JEL: | F36 G21 L26 O12 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:431&r=ent |
| By: | MATSUDA Naoko; MATSUO Yutaka |
| Abstract: | Using comprehensive data of Japanese firms, including small-sized and unlisted firms, this paper empirically analyzes the relationship of initial public offerings (IPOs) and the governing boards. The results show that board size, interlocks with other firms, and interlocks with other listed firms are all positively related to the probability of an IPO. These results imply that a firm's intention to conduct an IPO can be estimated by the size and interlocks of the firm's board, and that knowledge diffusion of an IPO occurs among firms. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14040&r=ent |