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on Entrepreneurship |
| By: | Mel, Suresh de (University of Peradeniya, ); McKenzie, David (World Bank Research Group ); Woodruff, Christopher (The University of Warwick ) |
| Abstract: | Previous research shows that capital injections lead to higher profits in microenterprises, but to little sustained growth. We conduct an experiment which provides overlapping treatments designed to provide capital, incentives to hire new employees and management training. Working with a sample of 1,525 Sri Lankan enterprises with two or fewer paid employees at baseline, we find that the treatments have largely temporary effects, suggesting that while they may speed convergence to a steady state, they do not appear to put firms on a different growth path. Wage incentives lead to higher levels of employment, but not to higher profits, suggesting that the typical firm does not face constraints to hiring which result in the marginal product of labor exceeding the market wage rate. We use data from surveys of wage workers and SME owners conducted at the same time as the baseline survey to estimate characteristics associated with entrepreneurial ability. We find that highability firms, if anything, benefit less from the treatments. The results are consistent with the view of the world illuminated by Lucas‟ 1978 model of firm size distribution. |
| Keywords: | Microenterprises |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:212&r=ent |
| By: | Erkan Gören (University of Oldenburg, Department of Economics ) |
| Abstract: | This paper suggests a theoretical framework and provides empirical evidence for a hump-shaped relationship between the fraction of novelty-seeking traits in society and current levels of per capita income. The hypothesis is that novelty-seeking traits produce two countervailing effects on aggregate productivity and hence economic development. The beneficial effect consists in explorative knowledge acquisition, which contributes significantly to the process of economic development. The detrimental effect results from a certain amount of this knowledge not being used reliably for capital accumulation due to the high fraction of individuals engaged in exploration rather than in production. One main conclusion of the empirical analysis is that the high fraction of novelty-seeking individuals in society engaged in short-run explorative knowledge acquisition prevent permanent settlement and therefore act as an obstacle to the development of centralized states, which are a precursor to modern industrial production. |
| Keywords: | Novelty-Seeking Behavior, Entrepreneurial Traits, Economic Development, Natural Selection, Genetic Diversity |
| JEL: | N50 O10 O50 Z10 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:374&r=ent |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN) ); Andersson, Fredrik (Örebro university ); Wennberg, Karl (The Ratio institute and Stockholm Scool of Economics ) |
| Abstract: | This paper studies the long - term impact of entrepreneurship education and training in high school on entrepreneurial entry, performance, and survival. Using propensity score matching, we compare three Swedish cohorts from Junior Achievement Company Program (JACP) alumni with a matched sample of similar individuals and follow these for up to 16 years after graduation. We find that while JACP participation increases the long - term probability of starting a firm as well as entrepreneurial incomes, there is no e ffect on firm survival |
| Keywords: | Entrepreneurship Education; Quasi - experiment; Performance |
| JEL: | D22 L25 L26 |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0245&r=ent |
| By: | Roxana Gutierrez-Romero (Departament d’Economia Aplicada, Universitat Autonama de Barcelona ); Luciana Méndez Errico (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona ) |
| Abstract: | We assess the extent to which historical levels of inequality affect the likelihood of businesses being created, surviving and of these creating jobs overtime. To this end, we build a pseudo-panel of entrepreneurs across 48 countries using the Global Entrepreneurship Monitor Survey over 2001-2009. We complement this pseudo-panel with historical data of income distribution and indicators of current business regulation. We find that in countries with higher levels of inequality in the 1700s and 1800s, businesses today are more likely to die young and create fewer jobs. Our evidence supports economic theories that argue initial wealth distribution influences countries’ development path, having therefore important policy implications for wealth redistribution. |
| Keywords: | Entrepreneurship, income distribution, job creation, pseudo-panel, instrumental variables |
| JEL: | M2 O1 D3 C23 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1501&r=ent |
| By: | B. Zorina Khan |
| Abstract: | Endogenous growth models raise fundamental questions about the nature of human creativity, and the sorts of resources, skills, and knowledge inputs that shift the frontier of technology and production possibilities. Many argue that the nature of early British industrialization supports the thesis that economic advances depend on specialized scientific training or the acquisition of costly human capital. This paper examines the contributions of different types of knowledge to British industrialization, by assessing the backgrounds, education and inventive activity of the major contributors to technological advances in Britain during the crucial period between 1750 and 1930. The results indicate that scientists, engineers or technicians were not well-represented among the British great inventors until very late in the nineteenth century. Instead, important discoveries and British industrial advances were achieved by individuals who exercised commonplace skills and entrepreneurial abilities to resolve perceived industrial problems. For developing countries today, the implications are that costly investments in specialized human capital resources might be less important than incentives for creativity, flexibility, and the ability to make incremental adjustments that can transform existing technologies into inventions that are appropriate for prevailing domestic conditions. |
| JEL: | J24 N13 O14 O3 O31 O34 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20853&r=ent |
| By: | Braunerhjelm, Pontus (Swedish Entrepreneurship Forum, Department of Industrial Economics and Management, Centre of Excellence for Science and Innovation Studies (CESIS) & Royal Institute of Technology (KTH) ); Henrekson, Magnus (Research Institute of Industrial Economics (IFN) ) |
| Abstract: | This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity. |
| Keywords: | Entrepreneurship; Innovation; Institutions; Innovation policy; R&D; Technology transfer; University-industry relations |
| JEL: | J24 O31 O32 O57 |
| Date: | 2015–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0391&r=ent |
| By: | Berglund, Henrik (Chalmers University of Technology ); Sandström, Christian (The Rato institute ) |
| Abstract: | Abstract: Why do entrant firms sometimes gain the upper hand under conditions of discontinuous technological change? Previous research on this topic has either looked at the role of established competencies and/or firm incentives to invest in a new technology. In this paper we explore an alternative explanation. Drawing upon evidence from the ongoing transition from CCTV to digital, IP based video surveillance, we argue that entrant firms may be more prone to act entrepreneurially, i.e. more inclined to proactively create or transform markets and build ecosystems. As new technologies frequently require altered behaviour among customers and stakeholders, this capability is sometimes critical in order to succeed in a technological transition. Our contribution therefore lies in pointing out that not only may incentives to allocate R&D resources differ among entrants and incumbents, firms might also have different incentives to engage in entrepreneurial activities of creating or transforming markets. |
| Keywords: | Disruptive Innovation; Entrepreneurship; Incentives; Technological Discontinuities; business model; ecosystem. |
| JEL: | O14 |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0239&r=ent |
| By: | Anagnosti, Afroditi ; Zampetakis, Leonidas A. ; Rozakis, Stelios |
| Abstract: | There is a growing body of literature arguing that individuals who have taken entrepreneurship courses generally intend to start a business. The purpose of this study is to investigate the impact of relevant courses on the entrepreneurial intentions of students in agriculture, using Ajzen’s (1991) the theory of planned behavior (TPB). The results show that the entrepreneurship education program has affected the student’s perceived behavior control and anticipated positive and negative effect. |
| Keywords: | Agricultural University, Entrepreneurship Education, Entrepreneurial Intentions, Theory of Planned Behavior, Teaching/Communication/Extension/Profession, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:183047&r=ent |
| By: | Nakasone, Eduardo ; Torero, Maximo |
| Abstract: | We analyze the impact of the Strengthening Women Entrepreneurship in Peru (SWEP) program. SWEP trained female micro-entrepreneurs on business management practices (e.g. accounting, marketing, etc.). The training was provided in 4-5 hour sessions using soap operas and practical exercises specifically designed for the program. We conducted a field experiment among a group a micro-entrepreneurs based in two Peruvian cities (Lima and Piura) to investigate whether SWEP had a positive impact on its beneficiaries. Our results show the program positively affected the adoption of business practices taught by the program. In particular, those who received the training were 4-6 percentage points more likely to assign themselves a fixed salary (rather than taking cash from their businesses based on personal needs) and 6-11 percentage points more likely to keep better records of potential business contacts. We also find some positive impacts on the adoption of bookkeeping practices (4-6 percentage points), though this result is not significant across all of our specifications. While these changes in adoption rates were large compared to their baseline levels, they were rather small in absolute terms. Therefore, we do not find any impact on average business performance, household expenditures, or women empowerment in the household. Qualitative information suggests that micro entrepreneurs were satisfied with the training, but considered that many of the practices taught by the program were difficult to follow because of time constraints. |
| Keywords: | Trainig, Women entrepeneurship, impact evaluation, RCT |
| JEL: | D2 D22 J1 J2 J24 J3 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61302&r=ent |
| By: | Harwood, Alison ; Konidaris, Tanya |
| Abstract: | In recent years, many emerging market countries have developed or are in the process of developing SME Exchanges to provide financing to SMEs, but few have succeeded. This paper aims to help stock exchanges and policy makers think through the key questions to be addressed to determine if, when, how and for whom to develop an SME Exchange in emerging market countries. It takes stock of some of the actions that exchanges can take to reduce issuance costs, in time and money for SMEs, without compromising the prudential needs of investors. The paper draws on the experience of seven SME Exchanges and the World Federation of Exchanges that participated in a workshop organized and led by the WBG to discuss these and other questions. It does not recommend a specific model to follow and does not address specific context issues, however the analysis suggests approaches that are widespread and/or could be beneficial to consider such as (1) focus on SMEs with a sizeable growth rate, (2) have the SME exchange legally related to the main board, (3) do not reduce disclosure content to reduce costs, (4) allow private placements, (5) have well regulated advisors to vet issuers and provide comfort to investors about the quality of the issue, (6) have outreach, public awareness campaign and training for SMEs, (7) consider tax incentives for investors. The report is the first in a series on this topic, and subsequent reports will address and expand on related and broader issues. |
| Keywords: | Debt Markets,Emerging Markets,Microfinance,Markets and Market Access,Small Scale Enterprise |
| Date: | 2015–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7160&r=ent |
| By: | Höhler, Julia ; Kuhl, Rainer |
| Abstract: | The Agribusiness is in flux: a shrinking number of up- and downstream corporations questions traditional equilibrium concepts. How will the population of firms develop and which consequences will arise for competition? In 1931, Gibrat stated the firm size and a firm’s growth rate to be independent. Testing the validity of Gibrat’s law for the German Agribusiness allows drawing conclusions on future developments of concentration. By investigating 551 manufacturing downstream enterprises, we reject Gibrat’s law and find small firms to grow stronger than bigger firms in relation to their initial size. Consequently, the sector could reach a steady state in concentration. |
| Keywords: | Agribusiness, structural change, empirical growth, Agribusiness, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182689&r=ent |
| By: | Tomasz Norek (University of Szczecin, Poland ); Daniel Luis Arenhardt (Federal University of Santa Maria, Brasil ) |
| Abstract: | The basic goal of this article is an attempt to conduct comparative analysis of innovation determinants in companies of small and medium enterprises sector in Brazil and Poland. The comparison shall enable evaluation which determinants stimulate and which are barriers to innovativeness development in the SME sector in the researched countries. Additionally, such comparison shall indicate if and in what way the economical potentials, cultural differences and different historical conditions of the economic development of the researched countries influence the determinants of the innovative activity of the SME sector. The Authors put forward the following research hypothesis: H1: The determinants forming the innovative potential are similar for Brazilian and Polish companies of SME sector. In order to examine the hypothesis, the Authors have browsed the world literature on the subject of innovative actions determinants in companies with a special consideration of SME sector companies, they have presented the present condition of innovativeness in SME sector companies in Brazil and Poland (an Internet questionnaire has been used in the research) and they have conducted own empirical researches on the determinants influencing the innovativeness level. The received results have been subject to basic statistical comparative analysis and on this basis with the logical induction the Authors have made conclusions on the determinants of innovative activity in researched companies. The article includes the results of all the empirical researches conducted by the Authors in the years 2009-2013 and generally available data considering the innovativeness level in the researched countries. |
| Keywords: | innovative SMEs; determinants of innovation activity; SMEs in Brazil and Poland |
| JEL: | O10 O30 O50 O57 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2014:no41&r=ent |
| By: | Fındık, Derya ; Beyhan, Berna |
| Abstract: | This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process oriented impacts of innovation. Among these three groups, product and process oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product oriented impact of innovation.While product oriented impact are larger for small firms, large firms focus more on process oriented impact. Anova results also indicate that perceptions on process oriented impact significantly differ among exporter firms, domestic market oriented firms and firms being active in internal and external markets. Process oriented impact generate results in favor of exporting firms. |
| Keywords: | innovation impact, product oriented impact, process oriented impact |
| JEL: | L2 M1 M2 O3 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60961&r=ent |
| By: | Jean Bonnet (CREM UMR CNRS 6211, Université de Caen Basse-Normandie, UFR SEG (Sciences Economiques et Gestion), Normandie Université, France ); Domingo Garcia Perez De Lema (Faculty of Business, Polytechnic University of Carthagène, Spain ); Carlos Martinez-Abarca-Pastor (Faculty of Business, Polytechnic University of Carthagène, Spain ); Ugo Rizzo (Department of Economics and Management, University of Ferrara, Italy ) |
| Abstract: | This report aims at highlighting the determining factors in the choice made by members of the higher establishments of Caen (France) and of the universities of Carthagène (Spain) and Ferrare (Italy) to create a company rather than resorting to another type of economic valorization of their research activities. Compared to the existing literature we show that these choices have psychological components. If the desire to engage in economic valorization of research activities remains strongly related to the fact that the individuals anticipate it will not mean a break in their career, the choice to resort to entrepreneurship is also characteristic of a young population for which this commitment is prestigious and likely to solve the financial problems inherent to the lack of seniority. The research laboratory does not specifically appear to encourage them to get into entrepreneurship (particularly in France) and the main policies to favor academic entrepreneurship would lie, according to the respondents, in providing financial support and facilitating the mastery of financial abilities and techniques. |
| Keywords: | Economic valuation of research activities, University staff, Professional Values, Dissatisfactions, Incentives |
| JEL: | L26 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201417&r=ent |