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on Entrepreneurship |
| By: | Peter van der Zwan (Erasmus University Rotterdam, the Netherlands); Jolanda Hessels (Erasmus University Rotterdam, the Netherlands); Cornelius A. Rietveld (Erasmus University Rotterdam, the Netherlands) |
| Abstract: | We investigate how a transition from paid employment to self-employment in the labor market influences life satisfaction. Furthermore, we consider the dynamics of work and leisure satisfaction because the balance between work and leisure is an important element of life satisfaction. Fixed-effects regressions using German Socio-Economic Panel data (1984-2012) reveal that switching to self-employment benefits life and work satisfaction. The effects on life satisfaction are weak and temporary, but they are pronounced and relatively persistent for work satisfaction. However, the gain in work satisfaction is outweighed by a decrease in leisure satisfaction, thus placing work-life balance under severe pressure. |
| Keywords: | Self-employment; Entrepreneurship; Life satisfaction; Work satisfaction; Work-life balance |
| JEL: | I31 J24 J28 J31 L26 |
| Date: | 2015–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150099&r=all |
| By: | Bublitz, Elisabeth; Nielsen, Kristian; Noseleit, Florian; Timmermans, Bram |
| Abstract: | Contrary to employees, there is no clear evidence that entrepreneurs' education positively effects income. In this study we propose that entrepreneurs can benefit from their education as a signal during the recruitment process of employees. This process is then assumed to follow a matching of equals among equals. Using rich data from Germany and Denmark we fully confirm a matching on qualification levels for high-skilled employees, partially for medium-skilled employees but not for low-skilled employees, suggesting that as skill levels of employees decrease it becomes equally probable that they work for different founders. Founder qualification is the most reliable predictor of recruitment choices over time. Our findings are robust to numerous control variables as well as across industries and firm age. |
| Keywords: | returns to education,labor demand of small firms,human capital,matching,signaling |
| JEL: | J23 J24 J21 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwirp:166&r=all |
| By: | Sari Kerr; William R. Kerr; Ramana Nanda |
| Abstract: | We examine the relationship between house prices and entrepreneurship using micro data from the US Census Bureau. Increases in house prices are often thought to drive entrepreneurship through unlocking the collateral channel for bank loans, but this interpretation is challenged by worries regarding omitted variable biases (e.g., rising local demand) or wealth effects (i.e., that people with more valuable homes are more likely to enter entrepreneurship for reasons other than access to collateral). We construct an empirical environment that utilizes very localized price changes, exploits variations in initial home values across residents in the same zip code, and embeds multiple comparisons (e.g., owners vs. renters, homestead exemption laws by state). For the United States during the 2000-2004 period, the link of home prices to the rate of entrepreneurship through home equity channels is modest in economic magnitude. This is despite a focus on a time period that experienced the largest concentration of US home price growth over the last two decades. Even when we do connect home equity to entrepreneurship, part of the effect is linked to an increased demand for entrepreneurship. While housing collateral plays a role in the entry that we observe, it does not seem to be a major barrier to entrepreneurship in our context. |
| JEL: | E44 G21 L26 M13 R12 R31 R32 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21458&r=all |
| By: | Laurent Vilanova (COACTIS - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne); Nadège Marchand (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon); Walid Hichri (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon) |
| Abstract: | We test in the laboratory how entrepreneurs' skill perceptions influence the design of financing and advising contracts. Our theoretical framework proposes that selfconfident entrepreneurs prefer issuing debt whereas low self-confident ones prefer equity which induces strong investor assistance. The prevalence of overconfidence makes investors more reluctant to accept debt offers and constrains self-confident entrepreneurs to finance through mixed securities. Experimental results show that self-confident entrepreneurs issue more debt-like securities and receive less assistance. We also show that entrepreneurs learn not to offer pure debt and that initial ignorance of their own skills reinforces entrepreneurs' ability to learn through risky choices. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01154514&r=all |
| By: | Nyström, Kristina (Centre of Excellence in Science & Innovation Studies (CESIS), Department of Industrial Economics and Management, Royal Institute of Technology (KTH), and The Ratio Institute.) |
| Abstract: | This chapter provides a literature review of existing research and identifies research gaps related to the labor mobility of both entrepreneurs and employees in entrepreneurial firms. Regarding entrepreneurs, there is a lot of research on their individual characteristics, including prior experience, and how the individual characteristics and experiences influence the performance of the firm. However, less is known on the post-entrepreneurship employment activity of entrepreneurs and how their prior experiences influence their future labor market careers. Regarding the labor mobility of employees in entrepreneurial firms, there is an emerging stream of literature on the individual characteristics of these employees. However, many issues related to their prior experience remain unexplored. Furthermore, labor mobility after working with an entrepreneurial firm is relatively less explored at this point. Accordingly, this chapter intends to summarize current research and outline avenues for future research regarding a) pre-entrepreneurship labor mobility of entrepreneurs and b) post-entrepreneurship labor mobility of entrepreneurs, as well as c) pre-entrepreneurship labor mobility of employees in entrepreneurial firms and d) post-entrepreneurship labor mobility of employees in entrepreneurial firms. In addition, the role of institutions and, in particular, employment protection laws (EPLs) for labor mobility of entrepreneurs and employees in entrepreneurial firms are discussed. |
| Keywords: | entrepreneurship; labor mobility; employees in entrepreneurial firms |
| JEL: | J21 J62 L26 |
| Date: | 2015–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0420&r=all |
| By: | Mauricio Oyarzo (Departamento de Economia, Universidad Catolica del Norte); Gianni Romani (Departamento de Administracion, Universidad Catolica del Norte); Miguel Atienza (Departamento de Economia, Universidad Catolica del Norte); Marcelo Lufin (Departamento de Economia, Universidad Catolica del Norte) |
| Abstract: | This work investigates the spatio-temporal persistence of municipal rates of business startups in Chile between 2005 and 2011, using the database of the Internal Revenue Service (SII). The analysis was made with descriptive statistical, non-parametric tests and econometric models. The results show persistent spatio-temporal clusters, representing favorable and unfavorable environments for entrepreneurship, as well as a high probability of any municipality remaining in the same cluster. The factors that explain persistence reveal distinct effects on start-up creation for each level of municipal entrepreneurship, which suggests the need for policies that take into account the spatial differences in entrepreneurial dynamism. |
| Keywords: | entrepreneurship, regional development, spatio-temporal persistence, spatial clusters |
| JEL: | M13 R11 R1 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:cat:dtecon:dt201508&r=all |
| By: | Brixiova, Zuzana (University of Cape Town); Kangoye, Thierry (African Development Bank) |
| Abstract: | This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited. |
| Keywords: | gender and entrepreneurship, start-up capital, skills, training, multivariate analysis |
| JEL: | L53 O12 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9273&r=all |
| By: | Sacht, Stephen |
| Abstract: | In this paper we shed light on the relationship between labor market policy, entrepreneurship and youth unemployment prior to and in the aftermath of the global financial crisis in Spain. We discuss the situation, where labor market and macroeconomic policies were largely inefficient in reducing high levels of (youth) unemployment after 2007. We rise the question why in a situation of low inflation rates, an increase in (youth) unemployment had been observed although the labor market becomes more flexible due to the associated structural reform in 2010. We call this the Spanish Puzzle. The main reason for this observation can be found in the phenomena of downward nominal rigidity and the existence of a liquidity trap. Given the recovery of the Spanish economy in 2015, this development is grounded on (besides the increase in private consumption and a trade surplus) several policy measurements in order to strengthen entrepreneurial activity in 2013. The corresponding boost in private investment expenditure can be identified as the sustainable main driver for job creation in the long run. |
| Keywords: | Spain,Labor Market Policy,Entrepreneurship,Youth Unemployment,Macroeconomic Policy |
| JEL: | E24 E61 J13 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201555&r=all |
| By: | Mohammadi, Ali (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Shafi, Kourosh (Department of Management, Economics, and Industrial Engineering, Politecnico di Milano) |
| Abstract: | The scholars and popular news has argued that new form of investment through online platform known as equity Crowfunding increases the gender equality in financial market for both entrepreneurs and investors. In this paper we investigate whether there are gender-differences in the behavior of investors in firms seeking equity financing in comparison with other settings (e.g. stock market, pension saving). Using data from Swedish equity crowdfunding platform– Fundedbyme, we find that only 20% of investors are female. We also find female investors are less likely to invest in the equity of younger firms, high-technology firms, and those firms with higher percentage of equity offerings. This pattern seems consistent with more risk-aversion of female investors compared to male ones. Furthermore, women are more likely to invest in projects in which proportion of male investors is higher. Overall our result shows that there are not major in pattern of investment between equity crowdfunding and other traditional investment settings. |
| Keywords: | Equity crowdfunding; Gender; Herding; Observational learning; Risk-aversion |
| JEL: | G02 G11 G20 M13 |
| Date: | 2015–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0419&r=all |
| By: | Konstantin Vishnevskiy (National Research University Higher School of Economics); Dirk Meissner (National Research University Higher School of Economics); Olga Egorova (National Research University Higher School of Economics) |
| Abstract: | This paper describes an approach to foresight for SME enterprises. Foresight has become a frequently used tool for technology and innovation management generally limited large corporations. Presumably this is mainly due to the complexity of the corporate foresight concept itself and the need to invest substantial resources. To overcome this challenge and make corporate foresight also applicable for small and medium sized enterprises an adjusted methodological approach is developed taking into account the special requirements and limitations of SMEs. Based on an analysis of best practices for the development of theoretical and methodological approaches to foresight for SMEs an approach is developed taking into account the limitations of financial, human and time resources inherent to SMEs is introduced. |
| Keywords: | corporate foresight, SMEs, roadmapping, innovation, scenarios |
| JEL: | O11 O18 O32 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:45sti2015&r=all |
| By: | Adam B. Jaffe; Trinh Le |
| Abstract: | This paper examines the impact of government assistance through R&D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we are able to control for large number of firm characteristics and thus minimise selection bias. We find that receipt of an R&D grant significantly increases the probability that a firm in the manufacturing and service sectors applies for a patent during 2005–2009, but no positive impact is found on the probability of applying for a trademark. Using only firms that participated in the Business Operation Survey, we find that receiving a grant almost doubles the probability that a firm introduces new goods and services to the world while its effects on process innovation and any product innovation are relatively much weaker. Moreover, there is little evidence that grant receipt has differential effects between small to medium (<50 employees) and larger firms. These findings are broadly in line with recent international evidence from Japan, Canada and Italy which found positive impacts of public R&D subsidy on patenting activity and the introduction of new products. |
| JEL: | O31 O34 O38 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21479&r=all |
| By: | Brown, J. David (U.S. Census Bureau); Earle, John S. (George Mason University) |
| Abstract: | We analyze linked databases on all Small Business Administration (SBA) loans, on all SBA lenders, and on all U.S. employers to estimate the effects of financial access on employment growth. Our methods combine regressions with matching on firm age, size, industry, year, and employment history, and with instrumental variables capturing ease of access to SBA lenders. The estimation results imply an increase of 3-4 jobs for each million dollars of loans, suggesting that credit constraints impede small business growth prior to loan receipt. We also investigate the variation in estimated employment effects for the SBA 504 versus 7(a) programs, and with respect to the business cycle, local credit conditions, and within-county versus non-SBA county-industry control firms. Finally, for loans issued over the 1992-2007 period, we estimate total job creation of 1.0-2.1 million and the government's cost per job of $8,200-$18,000 measured five years after the loan year. |
| Keywords: | finance, financial access, loans, employment, growth, small business administration, small business finance |
| JEL: | D04 G21 G28 H32 H81 J23 L53 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9267&r=all |
| By: | De Giorgi, Giacomo; Ploenzke, Matthew; Rahman, Aminur |
| Abstract: | Firm informality is pervasive throughout the developing world, Bangladesh being no exception. The informal status of many firms substantially reduces the tax basis and therefore impacts the provision of public goods. The literature on encouraging formalization has predominantly focused on reducing the direct costs of formalization and has found negligible impacts of such policies. In this paper, we focus on a stick intervention, which to the best of our knowledge is the first one in a developing country setting that deals with the most direct and dominant form of informality, i.e. registration with the tax authority with a direct link to the country's potential revenue base and thus public goods provision. We implement an experiment in which firms are visited by tax representatives who deliver an official letter from the Bangladesh National Tax Authority stating that the firm is not registered and the consequential punishment if the firm fails to register. We find that the intervention increases the rate of registration among treated firms, while firms located in the same market but not treated do not seem to respond significantly. We also find that only larger revenue firms at baseline respond to the threat and register. Our findings have at least two important policy implications: i. the enforcement angle, which could be an important tool to encourage formalization; and ii. targeting of government resources for formalization to the high-end informal firms. The effects are generally small in levels and this leaves open the question of why many firms still do not register. |
| Keywords: | development.; Firms; informality |
| JEL: | H25 H26 O1 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10779&r=all |