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on Entrepreneurship |
| By: | Audretsch, David (Indiana University); Kuratko, Donald (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper seeks to distinguish between dynamic and static entrepreneurship. We define the construct of dynamic entrepreneurship in terms of Schumpeterian innovativeness and then develop a hypothesis suggesting that human capital is conducive to such action. In contrast, a paucity of human capital is more conducive to static entrepreneurship (defined in terms of organizational or ownership status). Based on a rich data set of entrepreneurs receiving research funding through the U.S. Small Business Innovation Research (SBIR) program, our empirical evidence suggests that academic-based human capital is positively correlated with dynamic behavior, whereas as business-based human capital and prior business experience is not. |
| Keywords: | Dynamic entrepreneurship; Static entrepreneurship; Schumpeterian innovation; human capital; Small Business Innovation Research (SBIR) Program |
| JEL: | J24 L26 O38 |
| Date: | 2016–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2016_002&r=ent |
| By: | Colombelli, Alessandra; Krafft, Jackie; Vivarelli, Marco (University of Turin) |
| Abstract: | This paper investigates the reasons why entry per se is not necessarily good and the evidence showing that innovative startups survive longer than their non-innovative counterparts. In this framework, our own empirical analysis shows that greater survival is achieved when startups engage successfully in both product innovation and process innovation, with a key role of the latter. Moreover, this study goes beyond a purely microeconomic perspective and discusses the key role of the environment within which innovative entries occur. What shown and discussed in this contribution strongly supports the proposal that the creation and survival of innovative start-ups should become one qualifying point of the economic policy agenda. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201601&r=ent |
| By: | Calderon,Gabriela; Iacovone,Leonardo; Juarez,Laura |
| Abstract: | Entrepreneurs that voluntarily choose to start a business because they are able to identify a good business opportunity and act on it -- opportunity entrepreneurs -- might be different along various dimensions from those who are forced to become entrepreneurs because of lack of other alternatives -- necessity entrepreneurs. To provide evidence on these differences, this paper exploits a unique data set covering a wide array of characteristics, including cognitive skills, non-cognitive skills and managerial practices, for a large sample of female entrepreneurs in Mexico. Descriptive results show that on average opportunity entrepreneurs have better performance and higher skills than necessity entrepreneurs. A discriminant analysis reveals that discrimination is difficult to achieve based on these observables, which suggests the existence of unobservables driving both the decision to become an opportunity entrepreneur and performance. Thus, an instrumental variables estimation is conducted, using state economic growth in the year the business was set up as an instrument for opportunity, to confirm that opportunity entrepreneurs have higher performance and better management practices. |
| Keywords: | Business in Development,E-Business,Business Environment,Microfinance,Competitiveness and Competition Policy |
| Date: | 2016–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7636&r=ent |
| By: | Jagtiani, Julapa (Federal Reserve Bank of Philadelphia); Lemieux, Catharine (Federal Reserve Bank of Chicago) |
| Abstract: | The recent decline in small business lending (SBL) among U.S. community banks has spurred a growing debate about the future role of small banks in providing credit to U.S. small businesses. This paper adds to that discussion in three key ways. First, this research builds on existing evidence, suggesting that the decline in SBL by community banks is a trend that began at least a decade before the financial crisis. Second, the authors show that in the years preceding the crisis, small businesses increasingly turned to mortgage credit to fund their operations. Finally, this paper illustrates how community banks face an increasingly dynamic competitive landscape, including the entry of deep-pocketed alternative nonbank lenders using technology to find borrowers and to underwrite loans, often using unconventional lending practices. Although these lenders may pose a competitive threat to community banks, the authors explore emerging examples of partnerships and alliances among community banks and nonbank lenders. |
| Keywords: | Small business lending; Online lending; Lending technology; Shadow banking; Community banks; Large and small banks |
| JEL: | G21 G23 |
| Date: | 2016–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:16-8&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: | Iota Kaousar Nassr; Virginia Robano; Gert Wehinger |
| Abstract: | Despite Greece’s long history as a trading nation, the country is failing to live up to its export potential. Small and medium-sized enterprises (SMEs) could significantly contribute to strengthening Greece’s export performance, thereby helping to jump-start economic growth and job creation as well as improving the sustainability of fiscal and external accounts. This paper explores aspects of the business, financial and regulatory environment that impede the greater involvement of SMEs in export activity. The paper also discusses the potential role of a development bank and stresses the importance of more R&D and innovation, the need to develop venture and other equity capital financing, and the need to build stronger links and networks between universities and industry. It draws some policy conclusions and suggests policy measures in the areas of finance, regulation, R&D and innovation. |
| Keywords: | development banks, entrepreneurship, small and medium-sized enterprises, business environment, export performance |
| JEL: | F1 F43 F6 G2 H81 I23 L25 L26 M13 O3 |
| Date: | 2016–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaad:41-en&r=ent |
| By: | Strausz, Roland |
| Abstract: | Crowdfunding provides innovation in that it enables entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard threatens this benefit. Studying the subsequent trade-off between screening and moral hazard, the paper characterizes optimal mechanisms. Popular all-or-nothing reward-crowdfunding schemes reflect their salient features. Efficiency is sustainable only if returns exceed investment costs by a margin reflecting the degree of moral hazard. Constrained efficient mechanisms exhibit underinvestment. As a screening tool for valuable projects, crowdfunding promotes social welfare. Crowdfunding complements rather than substitutes traditional entrepreneurial financing. |
| Keywords: | aggregate demand uncertainty; Crowdfunding; entrepreneurship; moral hazard; venture capital |
| JEL: | D82 G32 L11 M31 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11222&r=ent |
| By: | Schulte, Reinhard |
| Abstract: | This paper contributes to the literature on new firms in two ways. First, by addressing new venture investment, it focuses on a largely neglected, but important, issue of new firm business decisions. Second, it provides a valuable picture for how real investing by new businesses is going to evolve over time. Results suggest that investments by new firms are prone to an s-shaped time pattern rather than a random, linear or a gradually growing trajectory, or a capital market driven behavior as is assumed usually in the literature on investment decisions. By constructing a framework for future research on new venture investment, this article suggests specific research opportunities for future contributions to this body of knowledge. Based on the developed theorem, four main strands for future research can be identified, namely, (1) the empirical validation of the theorem per se, including trajectory, duration, and level of investment; (2) the link between investment and funding of the venture; (3) the link between investment and new venture development; and (4) investment as an adjustment of aggregate capital stock. |
| Keywords: | new ventures,start up,investment,investment dynamics,investment patterns |
| JEL: | D92 L25 M13 M21 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:luebgf:12&r=ent |
| By: | Nikolina Koporcic (Åbo Akademi University) |
| Abstract: | Interactive Branding (I-Branding) environment consists of business network environments in which companies cooperate with each other through mutual interactions that are based on three dimensions: internal, external and mutual branding dimension. I-Branding as an activity is therefore presented as a business strategy through which a company is positioning itself in a local and foreign network of business relationships. Internationalization provides a new lens for this process, in which different networks of large distances are all interconnected through interactions of three branding dimensions. Born global companies are small companies with early and rapid internationalization, which are successfully implementing their strategies and fighting for a favourable position in foreign networks. In order to discover challenges and opportunities of becoming successful so rapidly, a family owned company in the pharmaceutical industry is followed over the years. Based on case findings, the paper suggests managerial implications for start-ups and born global companies, together with some direction for a future theoretical and empirical research. |
| Keywords: | Interactive Branding, Born Globals, B2B, Business Networks, Internationalization. |
| JEL: | L19 F20 M13 |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:3405981&r=ent |
| By: | Doan, Quang Hung; Vu, Hoang Nam |
| Abstract: | By using the latest dataset from the survey of SMEs conducted in Vietnam in 2011, we show that a firm both participating in a wider network of input suppliers, buyers, and associations of enterprises and conducting innovative activities in production has higher labor productivity than others, implying that networks of enterprises and innovation are complementary to each other in affecting performance of SMEs in Vietnam. We also find that supports of the government including providing better infrastructure to the SMEs and helping the SMEs to be formalized when being established are conducive to the development of the SMEs in Vietnam. |
| Keywords: | Complementary, supermodularity, Network, Innovation, SMEs. |
| JEL: | D58 O3 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70591&r=ent |