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on Entrepreneurship |
| By: | Julie A. Nelson |
| Abstract: | Behavioral research has revealed how normal human cognitive processes can tend to lead us astray. But do these affect economic researchers, ourselves? This article explores the consequences of stereotyping and confirmation bias using a sample of published articles from the economics literature on gender and risk aversion. The results demonstrate that the supposedly “robust†claim that “women are more risk averse than men†is far less empirically supported than has been claimed. The questions of how these cognitive biases arise and why they have such power are discussed, and methodological practices that may help to attenuate these biases are outlined. |
| Keywords: | stereotyping, bias, confirmation bias, gender, risk aversion, effect size, index of similarity |
| JEL: | D83 D03 D81 J16 B41 C9 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:2013_07&r=ent |
| By: | Skriabikova, Olga (Maastricht University); Dohmen, Thomas (University of Bonn); Kriechel, Ben (Economix Research & Consulting) |
| Abstract: | This paper analyses the impact of risk attitudes on the decision to become self-employed among individuals who grew up under the communist regime in Ukraine, which banned self-employment so that individuals could not observe what it is like to be self-employed. Since the intra-family transmission of self-employment experiences was largely shut down, the observed correlation between risk preferences and self-employment after transition is unlikely to be driven by parents transmitting self-employment experience and risk preferences to their children. Robustness checks on a sample of East Germans confirm that such a third factor explanation is implausible, thus shedding light on the causal nature of the relation between risk preferences and the decision to become self-employed. |
| Keywords: | self-employment, risk attitudes, intergenerational transmission of self-employment and risk attitudes, SOEP, ULMS |
| JEL: | J24 D81 P3 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8354&r=ent |
| By: | Saul Estrin; Seçil Hülya Danakol; Paul Reynolds; Utz Weitzel |
| Abstract: | This paper explores the effects of foreign direct investment, measured by mergers and acquisitions, on domestic entrepreneurial entry. We use a micro‐panel of more than two thousand individuals disaggregated by industry in seventy countries including both developed and developing economies, 2000‐2009. The theory yields ambiguous predictions about the relationship between FDI and entrepreneurship; positive spillovers via dissemination of technology or negative because of crowding out. Our empirical analysis is conducted at three levels of aggregation. We find the relationship between FDI and domestic entrepreneurship in aggregate and intra‐industry to be negative. Policies need to consider how to counteract this effect. |
| Keywords: | Foreign direct investment, entrepreneurship, new firm entry, spillovers |
| JEL: | F23 M13 L26 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1268&r=ent |
| By: | Peter van der Zwan |
| Abstract: | This paper focuses on SMEs – firms with 250 employees at most – and the proportion of their requested loan that is granted by the bank. Financial data for SMEs in 38 European countries for 2011 are used (SMEs’ Access to Finance survey) to test the relationship between ownership structure and innovation on the one hand and loan application success on the other hand. The set of control variables includes firm age, firm size, past firm growth, expected firm growth, and sector orientation. Focusing on the determinants of access to finance is important because restricted access could hinder firm growth. It turns out that SMEs that are part of a business group and SMEs with a multiple ownership structure have higher probabilities of receiving the requested bank loan than SMEs with a single owner. There is some evidence that female owned business have more success regarding their loan applications than male owned businesses. Furthermore, SMEs that adopt product or process innovations are less likely to receive the requested loan than SMEs that do not display innovative behavior. The robustness of these findings across several model specifications is shown and the implications of the findings are discussed. |
| Date: | 2014–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201404&r=ent |
| By: | Karen Mills (Harvard Business School, General Management Unit); Brayden McCarthy (Harvard Business School) |
| Abstract: | Small businesses are core to America's economic competitiveness. Not only do they employ half of the nation's private sector workforce - about 120 million people - but since 1995 they have created approximately two-thirds of the net new jobs in our country. Yet in recent years, small businesses have been slow to recover from a recession and credit crisis that hit them especially hard. This lag has prompted the question, "Is there a credit gap in small business lending?" This paper compiles and analyzes the current state of access to bank capital for small business from the best available sources. We explore both the cyclical impact of the recession on small business and access to credit, and several structural issues in that impede the full recovery of bank credit markets for smaller loans. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:15-004&r=ent |
| By: | Kevin Levillain (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Blanche Segrestin (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Armand Hatchuel (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Venture Capital is generally thought to be a key link in the complex chain of financing for young innovative firms. By helping them at critical stages of innovation development, it would help an economy to leverage its public research and sustain its growth. However, recent research reveals that the performance of VC funds, both internal (profitability) and external (growth), does not reach the expectations. In this paper, we aim to show that paradoxically, the theoretical model of VC conveyed by the literature does not take the management of innovation into account, and makes unrealistic assumptions on the composition of project portfolios. Conversely, based on interviews with some VC funds managers, we show that actual funds can invent alternative management models, for example based on the structuration of ecosystems for the start-ups, the development of "external valuation" mechanisms, or the creation of synergies between financed projects. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00969096&r=ent |
| By: | Priit Vahter (University of Tartu, Estonia); James H. Love (Aston Business School); Stephen Roper (Warwick University Business School) |
| Abstract: | Traditionally, literature on open innovation has concentrated on analysis of larger firms. We explore whether and how the benefits of openness in innovation are different for small firms (less than 50 employees) compared to medium and large ones. Using panel data over a long time period (1994-2008) from Irish manufacturing plants, we find that small plants have on average significantly lower levels of openness, a pattern which has not changed significantly since the early 1990s. However, the effect of ‘breadth’ of openness (i.e. variety of innovation linkages) on innovation performance is stronger for small firms than for larger firms. For small firms (with 10-49 employees) external linkages account for around 40 per cent of innovative sales compared to around 25 per cent in larger firms. Small plants also reach the limits to benefitting from openness at lower levels of breadth of openness than larger firms. Our results suggest that small firms can gain significantly from adopting an open innovation strategy, but for such firms appropriate partner choice is a particularly important issue. |
| Keywords: | open innovation, SMEs, boundary-spanning linkages, learning effects, Ireland |
| JEL: | O31 O32 L25 |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:enr:rpaper:0012&r=ent |
| By: | Hind El Makrini |
| Abstract: | We study the export performance of firms from developing countries based on the resource based view (RBV) of a firm. Drawing on the extant literature review, we found firm size, research and development (R&D) expenditure, advertising expenditure and business group affiliation to be important factors of export performance. A quantitative design was particularly used in this study. A two-stage least square estimation (G2SLS) was employed on a sample of 168 Moroccan SMEs over a period of four years from 2009 to 2013. Morocco is an illustrative case of a developing country where export performance studies are very limited. The findings suggest that export sales and domestic sales are interdependent and influence each other. R&D expenditure and business group affiliation have positive and significant impacts on export sales, while advertising expenditure has a negative and significant influence on export sales. The study has useful managerial implications for academics, practitioners and public policy makers, providing guidelines and interesting recommendations for a better export performance. |
| Keywords: | Developing economies, Export performance, Moroccan SMEs, Resource-based View (RBV), Two-stage least square estimation (G2SLS). |
| Date: | 2014–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-431&r=ent |