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on Entrepreneurship |
| By: | Gries, Thomas (University of Paderborn); Jungblut, Stefan (University of Paderborn); Naudé, Wim (Maastricht University) |
| Abstract: | We propose that the rate of creation and failure of start-up firms can be modelled as a search and matching process, following labor market matching models. Setting out an endogenous growth model with entrepreneurship we derive a Entrepreneurship Beveridge Curve, through which we illustrate that entrepreneurial start-ups are the outcome of the efficiency with which entrepreneurial abilities are matched with business opportunities. The Entrepreneurship Beveridge Curve is a potentially useful analytical tool to add to the formalization of the economics of entrepreneurship, and we mention a number of extentions and applications. |
| Keywords: | entrepreneurship, start-ups, labor market matching |
| JEL: | L26 M13 O10 O14 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9744&r=ent |
| By: | Lougui, Monia (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This study investigates the relationship between mergers and acquisitions (M&A) and employee entrepreneurship in human capital-intensive service sectors. We investigate two sets of theoretical mechanisms. First, M&As may push employees entrepreneurship by lowering the average barriers of leaving the current employment (i.e. being associated with general deterioration of working conditions). Second, M&A activities may generate new entrepreneurial opportunities, which are first and foremost accessible by employees directly affected by M&As. Results on employee entrepreneurship in 3 039 Swedish firms during the time period 2000-2009 confirm that the number of firms spawned from a specific incumbent increases following an M&A. Push-oriented factors are found to contribute to this effect, but a dominating part of the total effect remains unexplained. This suggests that pull-oriented explanations of opportunity creation in the wake of M&As constitute an important avenue for further research on employee entrepreneurship. |
| Keywords: | employee entrepreneurship; mergers; acquisitions; opportunity costs; entrepreneurial opportunity |
| JEL: | G34 L26 L80 M50 |
| Date: | 2016–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0427&r=ent |
| By: | Hvide, Hans K; Jones, Benjamin |
| Abstract: | National policies take varied approaches to encouraging university-based innovation. This paper studies a natural experiment: the end of the "professor's privilege" in Norway, where university researchers previously enjoyed full rights to their innovations. Upon the reform, Norway moved toward the typical U.S. model, where the university holds majority rights. Using comprehensive data on Norwegian workers, firms, and patents, we find a 50% decline in both entrepreneurship and patenting rates by university researchers after the reform. Quality measures for university start-ups and patents also decline. Applications to literatures on university technology transfer, innovation incentives, and taxes and entrepreneurship are considered. |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11139&r=ent |
| By: | Saul Estrin; Susanna Khavul |
| Abstract: | In recent years, the UK has become a leader in fostering an entirely novel mechanism for raising capital for small business enterprises. Saul Estrin and Susanna Khavul explain how 'equity crowdfunding' works - and the benefits that online financial marketplaces provide for large networks of investors and entrepreneurs. |
| Keywords: | crowdfunding, entrepreneurs, business enterprise, taxation, venture capital |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:462&r=ent |
| By: | Thom, Marco |
| Abstract: | This article aims to define crucial skills for the entrepreneurial success of working fine artists as these skills have not yet been clearly identified for this professional group. The identification could be beneficial for artists' entrepreneurship education at higher education institutions (HEIs) in order to prepare them for their careers as effectively as possible. In order to achieve this aim, the paper is first focused on the entrepreneurship literature to identify the skills that are, in general, important for the entrepreneurial success and failure of entrepreneurs. In a second step, a survey was distributed to lecturers in Fine Art at HEIs in the UK and Germany, all of whom were simultaneously working artists, to determine the crucial skills for fine artists based on their professional experience. Both survey and literature findings show evidence that in particular seven skills, the "five plus two" skills, are crucial for the entrepreneurial success of professional fine artists. |
| Keywords: | entrepreneurial skills,entrepreneurial success,fine artist |
| JEL: | A22 A23 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:0116&r=ent |
| By: | Bottasso, Anna (University of Genova); Conti, Maurizio (University of Genova); Sulis, Giovanni (University of Cagliari) |
| Abstract: | In this paper we analyse the impact of employment protection legislation (EPL) on firms' entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms' entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings. |
| Keywords: | entry and exit, turnover, employment protection legislation, reallocation |
| JEL: | J65 L11 L26 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9740&r=ent |
| By: | Rui Castro (University of Western Ontario); Pavel Sevcik (ESG UQAM) |
| Abstract: | We study the aggregate productivity effects of firm-level financial frictions. Credit constraints affect not only production decisions but also household-level schooling decisions. In turn, entrepreneurial schooling decisions impact firm-level productivities, whose cross-sectional distribution becomes endogenous. In anticipation of future constraints, entrepreneurs under-invest in schooling. Frictions lower aggregate productivity because talent is misallocated across occupations, and capital misallocated across firms. In addition, firm-level productivities are also lower due to distortions induced by the schooling responses. We find that these effects combined account for about 1/5 of the U.S.-India aggregate productivity difference. Requiring the model to match schooling differences significantly amplifies the impact of frictions, and the model accounts for 58% of the aggregate productivity difference. |
| Keywords: | Aggregate Productivity; Financial Frictions; Entrepreneurship; Human Capital |
| JEL: | E24 I25 J24 O11 O15 O16 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:hcuwoc:20162&r=ent |
| By: | Marco Grazzi; Daniele Moschella |
| Abstract: | This work investigates how the export status of the firm influences the patterns of growth at different age classes. We address this research question resorting to a novel set of data that links together the universe of Italian firms and detailed data on export transactions. We find that the positive relationship between export status and growth declines with firm age. Further, we also find that, even when accounting for the role of age, the negative size-growth relationship does not disappear, contrary to some recent evidence. These results, which are robust to a series of controls, suggest for a positive signaling role of the export status which is stronger for young exporters or born globals. Exploiting the product-country level dimension of the customs data we also provide, for the first time, evidence on differences in exchange rates pass through between young and experienced exporters. In particular, we find that early exporters appear to be well equipped to face exchange rates variations as their exports decrease less following a currency appreciation. |
| Keywords: | Firm age and performance, Firm growth, International trade, Born global, Exchange rates pass-through |
| Date: | 2016–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/07&r=ent |
| By: | BOŻENA MIKOŠAJCZYK (UNIVERSITY OF LODZ) |
| Abstract: | The analysis of the functioning of Poland within the European Union allows to conclude that the economy of our country effectively adapts to the structures of the European Union. The visible positive effects include a.o. an increase of the financial credibility and of the investment attractiveness.The current economic growth is a result of entrepreneurship, cheap labor force, the catch-up effect resulting from the import of technologies from developed countries. The growth is mainly due to an increase in the total factor productivity. This means innovation and its ability to be implemented. Poland's shift in the innovation ranking of the EU countries up from the group of modest innovators in 2012 to moderate innovators in 2013 is not very satisfactory. The goal of this paper is to present the role of EU funds in improving innovation both within the "Innovative Economy" program 2007-2013 and the "Smart Growth" program 2014-2020.Special attention was paid to small and medium-sized enterprises, which are the driving force of economic development, and to balancing the levels of development of Polish regions. A new strategy for the financing of small and medium-sized enterprises in both analyzed periods was also presented. Particular attention was paid to the promotion of research and its links with business, the development of innovative technologies and actions improving the competitiveness of enterprises.The paper is also focused on the evolution of financial instruments allowing the change from the business innovation model based on buying innovative solutions to the creation of the firm's own innovations. The creation of a viable model of knowledge-based economy linking science with business is the most important task for improving innovation.The new perspective and new aid programs 2014-2020 will provide strong support for future beneficiaries of the EU budget grants. Smart use of EU support for innovative economy is the biggest challenge faced not only by Poland but the whole Central and Eastern Europe. |
| Keywords: | EU funds, SMEs, financing innovation |
| JEL: | O31 M13 D92 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:3205743&r=ent |
| By: | MATSUDA Naoko; TSUCHIYA Ryuichiro; IKEUCHI Kenta; OKAMURO Hiroyuki |
| Abstract: | Research on the factors related to start-ups has been developed worldwide, but that on the willingness and/or preparation for starting a business have rarely been conducted, mainly due to data availability. This paper shows the quantitative analysis factors of willingness and preparation for starting a business in Japan, utilizing for the first time the individual micro data of the Employment Status Survey conducted by the Ministry of Internal Affairs and Communications (MIC). Three primary aspects of Japanese entrepreneurs are revealed. First, female workers are less willing to start a business compared to male workers, but in the subsequent process for preparing the start-ups, the gender difference disappears. Second, workers with higher than university level education in their 50s have a higher willingness and preparation for start-ups. Third, workers with higher compensation or who are board members tend to be more willing to start up a business but less willing to move into the preparation process compared with others. |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:16009&r=ent |