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on Entrepreneurship |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | Emerging literature shows that spatial differences in entrepreneurship tend to persist over longer periods of time. A potential mechanism underlying this pronounced persistence is that high levels of start-up activity lead to the emergence of a regional culture and a supporting environment in favor of entrepreneurship that particularly involves social capital. This chapter summarizes the available empirical evidence on the regional persistence of entrepreneurship and elaborates in detail how different elements of such a culture, such as social capital, can exert an influence on the level of new business formation and self-employment. As a demonstration for the relevance of a regional entrepreneurship culture for new business formation, we highlight the case of Germany where we find pronounced persistence of start-up activity despite radical structural and institutional shocks over the course of the 20th century. The German case suggests that there is a long-lasting local culture of entrepreneurship that can survive disruptive changes. We discuss the relationship between place-specific social capital and a regional culture of entrepreneurship and draw policy conclusions. |
| Keywords: | Entrepreneurship, social capital, economic development, self-employment, new business formation, entrepreneurship culture, institutions |
| JEL: | L26 R11 O11 |
| Date: | 2015–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2015-009&r=ent |
| By: | Blumberg, Boris F. (Maastricht University); Pfann, Gerard A. (Maastricht University) |
| Abstract: | This paper studies the event history of business foundation. Three theoretical concepts of human, financial and social capital are linked to investigate variations over time of people's decision processes to become self-employed. Data from a cohort of Dutch inhabitants born in 1939/1940 who have been interviewed three times during their lives in 1952, 1983, and 1993 allows for testing theoretical hypotheses that state clear differences between two different roads towards business ownership. Empirical results show that the baseline hazard decreases with time for transgenerational entrepreneurs with self-employed parents, but increases for self-made startups. Social capital in the form of strong ties is a better predictor of enterprise than human capital. |
| Keywords: | entrepreneurship, family business, new venture creation |
| JEL: | D92 M14 M21 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9155&r=ent |
| By: | Cueto, Begona; Pruneda, Gabriel |
| Abstract: | A large body of the literature on job satisfaction concludes that self-employed workers enjoy higher levels of job satisfaction than their wage counterparts. In this article, we test this statement by including as an explanatory variable the preference of individuals for either type of employment. Using data drawn from 24,187 workers in the Spanish private sector, our results show that only self-employed workers report higher satisfaction levels than salaried employees when they actually display a preference for self-employment. Our conclusions posit that it is not self-employment per se, but being on the type of employment of preference (wage or self-employment) what contributes to explain the greater job satisfaction of self-employed workers when compared to employees. Additionally, our findings provide evidence on the lower level of satisfaction of reluctant entrepreneurs when compared to latent entrepreneurs. In other words, self-employed workers who prefer salaried employment are less satisfied than employees who report a preference for self-employment. |
| Keywords: | job satisfaction; preferences; self-employment; wage employment; entrepreneurship |
| JEL: | J28 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65432&r=ent |
| By: | Flavio Calvino; Chiara Criscuolo; Carlo Menon |
| Abstract: | The report provides a description of start-up dynamics exploiting the richness of the recently collected DynEmp v.2 database. The contribution of new firms in terms of new jobs to the existing workforce can be expressed as a combination of four different elements: the start-up rate; the average size of firms at point of entry; the survival rate; and the average growth rate of survivors. This decomposition shows that the four elements interplay in very different ways, even across economies with similar aggregate start-up contributions. The most homogenous component across countries is the survival rate, which is equal to just above 60% after three years from entry, to about 50% after five years, and to just over 40% after seven years. Furthermore, in most countries the probability of exiting is highest at the age of two, and decreases (linearly) beyond that age. When looking at employment growth of surviving businesses, it is found that the large majority of surviving micro start-ups do not grow; however, the tiny proportion of small start-ups which do grow creates a disproportionate amount of jobs. |
| Keywords: | entrepreneurship, start-ups, firm demographics, employment dynamics |
| JEL: | D22 L11 L26 |
| Date: | 2015–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2015/6-en&r=ent |
| By: | NISHITATENO Shuhei |
| Abstract: | The question of whether incumbent firms could deter new entrants in a more concentrated market has been a major concern by both antitrust authorities and industrial economists. This study is the first attempt to analyze the relationship between the market structure and entry in the intermediate goods market, utilizing unique data on auto parts transactions between automakers and auto parts suppliers in Japan during the period 1990-2010. The results suggest that there exists a U-shaped relationship between market concentration and entry, which sees entry decreasing and then increasing as markets concentrate. This result could emanate from a significant role of multi-product and multi-customer firms. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15081&r=ent |
| By: | Didier Brandao,Tatiana; Levine,Ross Eric; Schmukler,Sergio L. |
| Abstract: | How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new data set is constructed by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. Three main patterns emerge from the analysis. (1) Only a few large firms issue equity or bonds, and among them a small subset has raised a large proportion of the funds raised during the 1990s and 2000s. (2) Issuers grow faster than non-issuers in assets, sales, and employment, that is, firms do not simply use securities markets to adjust their financial accounts. (3) The firm size distribution of issuers evolves differently from that of non-issuers, tightening among issuers and widening among non-issuers. |
| Keywords: | Access to Finance,Economic Theory&Research,Debt Markets,Microfinance,Emerging Markets |
| Date: | 2015–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7353&r=ent |
| By: | Van Roy, Vincent (European Commission, Joint Research Centre); Vertesy, Daniel (European Commission, Joint Research Centre); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003-2012. The main outcome from the proposed GMM-SYS estimations is the labour-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services. |
| Keywords: | technological change, innovation, patents, employment, GMM-SYS |
| JEL: | O31 O33 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9147&r=ent |
| By: | Orman, Cuneyt |
| Abstract: | This paper develops a theory of the firm scope where not only research but also ordinary production employees can generate inventions. Separating research from production (“specialization”) solves the two-tier agency problem of inducing simultaneously research effort and managerial truthful-reporting but is costly when capital markets are imperfect. Improvements in capital markets, therefore, promote specialization, allowing a greater number of specialized firms to be established and also enabling them to undertake innovative projects with larger potential outcomes. Moreover, this capital market improvement effect is stronger for innovative activities that are less capital-intensive and that have weaker synergies with existing production activities. The model can help us understand the explosion of small company innovation in the U.S. since late 1970s and the contribution of venture capital to this change. |
| Keywords: | Innovation, Organizational form, Agency problems, Technological synergies, Financial imperfections. |
| JEL: | D86 D2 D82 O32 G24 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65441&r=ent |
| By: | Hufner, Daniel; Mossig, Ivo |
| Abstract: | Sie nennen sich Soundcloud, Researchgate, 6Wunderkinder oder Zalando - junge Gründer, die das Internet im Rahmen ihrer Geschäftsideen auf vielfältige Weise nutzen, zieht es nach Berlin. Nationale Gründerstatistiken zeigen, dass sich Internetunternehmen nirgendwo besser gründen lassen als in Berlin, Hamburg oder München. Allerdings finden Hamburg und München in der medialen Berichterstattung kaum Beachtung. Mit viel Hysterie und Enthusiasmus rufen Medien und Blogs stattdessen die Bundeshauptstadt als Start-up-Metropole der Zukunft aus. Doch warum ist das so? Wonach suchen digitale Existenzgründer in Berlin, was sie an anderen IT-Gründerhochburgen wie Hamburg oder München nicht finden? Warum konzentrieren sich Web- und Softwareunternehmen an einem Standort wie diesen? Antworten darauf gibt eine diskursanalytische Untersuchung der drei wichtigsten deutschsprachigen Gründer-Blogs. Die Ergebnisse zeigen, dass Berlin spezielle Standortansprüche der Gründer von Internetunternehmen bedient. Insgesamt identifiziert die Diskursanalyse drei zentrale Anforderungsbereiche: Die lokale Verfügbarkeit von Wagniskapital, die dortige Internationalität sowie ein szene-basiertes Ökosystem und sozio-kulturelles Raumangebot. |
| Abstract: | They call themselves Soundcloud, Researchgate, 6Wunderkinder or Zalando - young entrepreneurs with an affinity to the web prefer to move to Berlin. National founder statistics reveal: Nowhere else can internet companies be better established than in Berlin, Hamburg or Munich. However, Hamburg and Munich don't draw that much attention in the broad medial discussion about growing startup-cities. Instead, with a lot of hysteria and enthusiasm mass media and blogs proclaim Berlin as the start-up capital of the future. But what's the matter? What are the internet start-ups especially looking for in Berlin? Why do web- and software companies concentrate at specific locations? Answers will be given by a discourse analysis of three important german-speaking start-up-blogs. The results illustrate that foundings of internet companies are based on specific requirements on locations such as Berlin. Overall, the discourse analysis identifies three main requirements: The local availability of venture capital, a location with international structures as well as a community-based ecosystem and sociocultural space. |
| Keywords: | Startups,Internet,Standortanforderungen,kreative urbane Milieus,Diskursanalyse,Berlin,startups,internet,location requirements,creative urban milieu,discourse analysis |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:brebwr:12014&r=ent |