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on Entrepreneurship |
| By: | Zhuoxin Li (McCombs School of Business, The University of Texas at Austin, 2110 Speedway Stop B6500, Austin, Texas, 78712); Jason A. Duan (McCombs School of Business, The University of Texas at Austin, 2110 Speedway Stop B6700, Austin, Texas, 78712) |
| Abstract: | Crowdfunding is a fast emerging internet fundraising mechanism for soliciting capital from the crowd to support entrepreneurial ventures. This paper empirically investigates the dynamics of investors’ backing behaviors in the presence of network externalities and a finite time window. The proposed model captures how investors dynamically update their expectations on the prospect of a project based on its current funding status and time progress. Model estimation shows that investors are more likely to back a project that has already attracted a critical mass of funding (positive network externalities). For the same amount of achieved funding, the backing propensity declines over time (negative time effects). These two opposing forces give rise to a critical mass of funding the project must attain on time to achieve successful funding by the deadline. Counterfactual simulations show that projects may fail to attain the critical mass because of unfavorable shocks in investor visits at the early stage of the funding cycle. We derive dynamic seeding strategies for project owners to maximize the likelihood of funding success. |
| Keywords: | crowdfunding; group buying; entrepreneurship; network externality; hazards model; Bayesian inference |
| JEL: | D12 C81 L26 L86 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1409&r=ent |
| By: | Nadine LEVRATTO (EconomiX, CNRS, University of Paris Ouest Nanterre, La Défense, Centre d’Etudes de l’Emploi, Kedge Business School) |
| Abstract: | This paper seeks to shed some light on the influence that the characteristics of the local context in a given area and in adjacent ones exert on the entrepreneurial process. In order to make a distinction between the purely local factors and the role played by the neighbourhood, we mobilize the so-called Exploratory spatial data analysis which determines the degree of spatial dependence and its consequence on entry rate. We empirically address this question by considering the case of French employment areas from 2006 to 2010 using spatial econometric models adapted to panel data. Our results show that financial, material, human and organisational resources locally available are far from being the unique geographical determinants of firm creation. Instead, the entry rate in a given area also strongly depends on the propensity to create firms in the adjacent places. Spillover effects taking their origin in adjacent areas should thus be considered in explaining the local determinants of firm creation. |
| Keywords: | Firm creation, spatial dependence, spatial matrix |
| JEL: | L26 R11 C21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:rii:rridoc:40&r=ent |
| By: | Lilia CAVALLARI |
| URL: | http://d.repec.org/n?u=RePEc:ekd:002596:259600037&r=ent |
| By: | Nadine Levratto; Luc Tessier |
| Abstract: | Les recherches sur la contribution des Business Angels (BA) à la croissance de l’économie sont encore récentes et relativement peu diffusées, en France notamment. Afin de comparer la dynamique d’entreprises adossées à des BA à des entreprises qui ne le sont pas, nous proposons une méthode d’analyse empirique consistant à estimer des modèles multivariés permettant de rendre compte de l’influence de l’intervention des BA sur différents indicateurs de structure de l’entreprise. Notre analyse repose sur une base de données unique composée de 300 sociétés françaises financées par des investisseurs providentiels. Les résultats obtenus permettent de rendre compte de l’influence de l’intervention d’un BA sur les trajectoires des entreprises. Celle-ci exerce un effet contrasté sur la croissance de l’effectif et un effet quasi nul sur le chiffre d’affaires mais favorise visiblement la réalisation d’investissements productifs. Ces résultats sont robustes dans la mesure où ils ne dépendent pas de l’échantillon contrefactuel retenu. Ils demeurent également valides sous différentes spécifications des modèles obtenues grâce à l’introduction de diverses variables expliquées. |
| Keywords: | Business Angels, croissance des PME, financement, France. |
| JEL: | G24 L25 M13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2014-48&r=ent |