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on Entrepreneurship |
| By: | Viinikainen, Jutta (Jyväskylä University School of Business and Economics); Heineck, Guido (University of Bamberg); Böckerman, Petri (Labour Institute for Economic Research); Hintsanen, Mirka (University of Oulu); Raitakari, Olli (University of Turku); Pehkonen, Jaakko (Jyväskylä University School of Business and Economics) |
| Abstract: | Is there an entrepreneurial personality and does it appear early in life? We provide a new answer on this question by using the so-called Type A behavior traits (Aggression, Leadership, Responsibility, and Eagerness-Energy), measured in childhood and adolescence, and examining their relationship to self-employment propensity in adulthood. Using data from the Young Finns Study linked to the Finnish Longitudinal Employer-Employee Data and the Longitudinal Population Census of Statistics, our results show that the early-life Leadership-dimension is significantly associated with a higher likelihood 1) of becoming self-employed later in life and 2) of being more successful as an entrepreneur, as approximated by sales. Our results also reinforce the prior evidence on the intergenerational transmission of entrepreneurship. |
| Keywords: | Type A behavior, personality, self-employment, entrepreneurship, intergenerational transmission of entrepreneurship |
| JEL: | L26 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9805&r=ent |
| By: | Jorge Guzman; Scott Stern |
| Abstract: | While official measures of business dynamism have seen a long-term decline, early-stage venture financing of new companies has reached levels not observed since the late 1990s, resulting in a sharp debate about the state of American entrepreneurship. Building on Guzman and Stern (2015a; 2015b), this paper offers new evidence to inform this debate by estimating measures of entrepreneurial quality based on predictive analytics and comprehensive business registries. Our estimates suggest that the probability of a significant growth outcome (either an IPO or high-value acquisition) is highly skewed and predicted by observables at or near the time of business registration: 69% of realized growth events are in the top 5% of our estimated growth distribution. This high level of skewness motivates the development of three new economic statistics that simultaneously account for both the quantity as well as the quality of entrepreneurship: the Entrepreneurial Quality Index (EQI, measuring the average quality level among a group of start-ups within a given cohort), the Regional Entrepreneurship Cohort Potential Index (RECPI, measuring the growth potential of firms founded within a given region and time period) and the Regional Entrepreneurship Acceleration Index (REAI, measuring the performance of a region over time in realizing the potential of firms founded there). We use these statistics to establish several new findings about the history and state of US entrepreneurship using data for 15 states (covering 51% of the overall US economy) from 1988 through 2014. First, in contrast the secular decline in the aggregate quantity of entrepreneurship observed in series such as the Business Dynamic Statistics (BDS), the growth potential of start-up companies (RECPI relative to GDP) has followed a cyclical pattern that seems sensitive to the capital market environment and overall economic conditions. Second, while the peak value of RECPI is recorded in 2000, the level during the first decade during this century was actually higher than the late 1980s and first half of the 1990s, and also has experienced a sharp upward swing beginning in 2010. Even after controlling for changes in the overall size of the economy, the second highest level of entrepreneurial growth potential is registered in 2014. Third, the likelihood of start-up firms for a given quality level to realize their potential (REAI) declined sharply in the late 1990s, and did not recover through 2008. These findings suggest that divergent assessments of the state of American entrepreneurship can potentially be reconciled by explicitly adopting a quantitative approach to the measurement of entrepreneurial quality. |
| JEL: | C53 L26 O51 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22095&r=ent |
| By: | Flavio Calvino; Chiara Criscuolo; Carlo Menon |
| Abstract: | This paper provides new cross-country evidence on the links between national policies and the growth patterns of start-ups. In particular, it compares for the first time the heterogeneous effects of national policies on entrants and incumbents, within the same country, industry, and time period. A number of key facts emerge. First, start-ups in volatile sectors and in sectors that exhibit higher growth dispersion are significantly more exposed to national policies than start-ups in other sectors. Second, start-ups are systematically more exposed than incumbents to the policy environment and national framework conditions. Third, the results suggest that timely bankruptcy procedures and strong contract enforcement are key to establishing a dynamic start-up environment. |
| Date: | 2016–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:29-en&r=ent |
| By: | José Ernesto Amorós; María Soledad Etchebarne; Isabel Torres Zapata; Christian Felzensztein (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | The internationalization of new small and medium-sized enterprises is a challenge for many developing countries, especially those with open economies and small internal markets like Chile. This study, in an exploratory way, analyzes some of the factors that determine how new ventures are oriented to international markets from their early-stages. This paper develops a model that integrates variables related to firm characteristics like industrial sector, competitiveness, and size of the firm with a degree of internationalization. The empirical analysis uses data from the Global Entrepreneurship Monitor´s (GEM) adult population survey carried out in Chile during the period 2007-2013 (n=4,208). An ordinal logit regression model was used to test the hypotheses. Descriptive results show that 12.8% of Chilean entrepreneurs in the sample have a relatively high tendency towards internationalization and that the factors related to competitiveness are significant in respect to this tendency. The size of the firm and the propensity to create employment are also significant. Practical implications are discussed |
| Keywords: | Early internationalization; industrial sector; size; competitiveness; Chile; Global Entrepreneurship Monitor |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:29&r=ent |
| By: | Tavassoli, Sam (CIRCLE, Lund University); Bengtsson, Lars (Faculty of Engineering, Department of Industrial Management and Logistics, Lund University); Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies (CESIS), KTH, Stockholm; Jönköping International Business School & Blekinge Institute of Technology, Karlskrona, Sweden) |
| Abstract: | The literature in the Strategic Entrepreneurship (SE) is increasingly embracing the concept and implication of knowledge spillovers. In this paper, we add to the theoretical literature on SE and knowledge spillovers by investigating the types of knowledge spillovers and what they imply for various dimensions of SE. On the one hand, we distinguish between spatial and aspatial knowledge spillovers. On the other hand, we distinguish between various dimensions of SE, i.e. inputs, resource orchestration, and output. Finally, we conceptually link the various types of knowledge spillovers and dimensions of SE and discuss the implications. Doing so, we argue that spatial knowledge spillovers (inter-firm) play the major role in increasing the amount of ‘inputs’ dimension of SE, while the aspatial knowledge (either inter-regional or intra-firm) play the major role not only for ‘inputs’, but also for ‘rresource orchestration’ dimension. At the end, the paper provides suggestions for future research and managerial implications. |
| Keywords: | Strategic entrepreneurship; knowledge spillovers; spatial; aspatial |
| JEL: | L26 O31 R23 |
| Date: | 2016–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_008&r=ent |
| By: | Mikel Casares (Departamento de Economía-UPNA); Hashmat Khan (Carleton University, Canada) |
| Abstract: | We document empirical evidence on the determinants of U.S. regional growth over the last 25 years, with a special attention to the role of entrepreneurial activity or `business dynamism'. The main data source is the Business Dynamics Statistics (BDS) released by the U.S. Census Bureau. The key findings are: i) business entry and exit rates are similarly distributed across states, ii) neither entry nor exit rates have had a significant impact on regional growth, iii) higher business density results in faster regional growth, iv) entry rates have fallen over time and the states with greater business detrending have had weaker economic growth, v) states where entry and exit show substantial comovement (business churning) tend to grow faster, especially after 2007, vi) state-level population growth has no substantial e ffect on regional growth, and vii) the convergence hypothesis holds across the states of the U.S. |
| Keywords: | Business dynamism, Entry-exit rates, Economic growth |
| JEL: | O30 O40 O51 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nav:ecupna:1601&r=ent |
| By: | Markus Demary (Cologne Institute for Economic Research); Joanna Hornik (College of Europe, Department of European Economic Studies); Gibran Watfe (College of Europe, Department of European Economic Studies) |
| Abstract: | The proposal for a European Capital Markets Union (CMU) carries large potential economic benefits from enhancing the financing possibilities for Small and Medium-Sized Enterprises (SMEs). By deepening the capital markets and strengthening crossborder integration, the European Commission hopes to stimulate economic growth and boost employment. In this paper, we discuss to what extent these goals can be achieved, in light of the complex business environment of European SMEs. We outline the different types of SMEs in terms of their financing structures as well as the pervasive differences across the EU, concluding that any policy approach must take into account the diversity of the companies’ financing needs and the market realities in the Member States. We argue that the CMU is likely to have a heterogeneous impact, with some types of SMEs and certain regions gaining more than others. |
| Keywords: | Capital Markets Union, SME financing, European integration |
| JEL: | O16 F21 E61 G32 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:coe:wpbeep:40&r=ent |
| By: | Dilli, Selin (Economic and Social History); Elert, Niklas (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Although institutional reforms are necessary to increase rates of entrepreneurship in European countries, we argue that one-size-fits-all reform strategies are unlikely to be successful. Reform strategies must be informed by a better knowledge of the varieties of European capitalism and the institutional complementarities that drive these differences. We investigate these issues by gathering a number of potentially relevant entrepreneurial regime measurements as well as indicators of formal and informal institutions based on data available from the 2000s onward. We employ principal component analysis, factor analysis and cluster analysis to examine how 21 European countries and the United States cluster in the entrepreneurial and institutional dimensions. Our results reveal six country clusters, or entrepreneurial regimes, with a distinct bundle of entrepreneurial characteristics and institutional attributes. The main implication is that different reform strategies are appropriate to promote entrepreneurship and economic growth in European countries in different clusters. |
| Keywords: | Entrepreneurship; Innovation; Institutions; Regulation |
| JEL: | L50 M13 O31 P14 |
| Date: | 2016–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1118&r=ent |
| By: | Doorley, Karina (LISER (CEPS/INSTEAD)); Pestel, Nico (IZA) |
| Abstract: | This paper examines the effect of wealth on labour market behaviour. Providing convincing evidence on this relationship is challenging since wealth and labour supply may be endogenously determined. We overcome this by looking at wealth shocks in the form of inheritances, distinguishing between unanticipated and anticipated inheritances. We provide a theoretical framework which outlines how an individual's labour market behaviour may be expected to react to a wealth shock under different circumstances including perfect/imperfect anticipation and a credit constrained environment. We test our model predictions using rich household and individual level micro-data for Germany. We find that women decrease their hours of work in response to an inheritance. Both men and women are more likely to stay self-employed after a large inheritance and male entrepreneurs are also more likely to recruit. The effect of inheritances on the self-employed is amplified for those who are credit constrained. The magnitude of these effects is similar for anticipated and unanticipated inheritances but the timing varies, with effects visible before the event in the case of anticipated inheritances. |
| Keywords: | inheritance, wealth, labour supply, self-employment, Germany |
| JEL: | D31 J22 L26 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9822&r=ent |
| By: | Kevin Levillain (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In successful privately held companies, where main shareholders and managers are strongly linked, the exit of a founder creates a dilemma between maximizing their wealth through external investment and perpetuating the organizational model by limiting external shareholders. Papers generally show that the entrepreneurs’ personal motivations are stronger factors, thus explaining the frequent transition of startups to public corporation models. But is there leeway to design different governance models, for example aiming to facilitate the firm’s transmission? Based on a case study of a french management consulting firm, we reveal a variety of parameters that can be at play when designing the ownership and management structure of such a company, and thus of the possible governance systems to be considered. Although the validity area of the case we exhibit is presumably limited, we contend that it opens a category of models that research could explore, strengthen and potentially contribute to diffuse. |
| Keywords: | Corporate governance,Firm succession,Partnerships,Professional Service Firms,Privately held companies |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01292956&r=ent |