nep-ent New Economics Papers
on Entrepreneurship
Issue of 2016‒05‒14
nine papers chosen by
Marcus Dejardin
Université de Namur

  1. Entrepreneurs and Freelancers: Are They Time and Income Multidimensional Poor? The German Case By Merz, Joachim; Rathjen, Tim
  2. Effects of FDI on Entrepreneurial Activity: Evidence from Right-to-Work and Non-Right-to-Work States By Ozkan Eren; Masayuki Onda; Bulent Unel
  3. Historical Shocks and Persistence of Economic Activity: Evidence from a Unique Natural Experiment By Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
  4. An Economic Analysis of Entrepreneurship in the Piedmont Triad of North Carolina By Rodriguez, Beatriz; McDowell, Donald
  5. The (displacement) effects of spatially targeted enterprise initiatives: evidence from UK LEGI By Elias Einiö; Henry G. Overman
  6. Does the Policy Lending of a Government Financial Institution to Mitigate the Credit Crunch Improve Firm Performance? Evidence from loan level data in Japan By SEKINO Masahiro; WATANABE Wako
  7. Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia By Sdiri, Hanen; Ayadi, Mohamed
  9. Marketing Mix Strategies and Entrepreneurial Competence: Evidence from Micro Restaurants in Calabar Metropolis, Cross River State, Nigeria. By Umeze, Gerald E.; Ohen, Susan B.

  1. By: Merz, Joachim (Leuphana University Lüneburg); Rathjen, Tim (Leuphana University Lüneburg)
    Abstract: Entrepreneurs and freelancers, the self-employed, commonly are characterized as not only to be relatively rich in income but also as to be rich in time because of their time-sovereignty in principle. Our introducing study scrutinises these results and notions about the well-being situation of self-employed persons not only by asking about traditional single income poverty but also by considering time poverty within the framework of a new interdependent multidimensional (IMD) poverty concept. The German Socio-economic panel with satisfaction data serves as the data base for the population wide evaluation of the substitution/ compensation between genuine, personal leisure time and income. The available detailed Time Use Surveys of 1991/92 and 2001/2 of the Federal Statistics Office provide the data to quantify the multidimensional poverty in all the IMD poverty regimes. Important result: self-employed with regard to single income poverty, single time poverty and interdependent multidimensional time and income poverty in both years are much more affected by time and income poverty than all other active persons defining the working poor. A significant proportion of non-income-poor but time poor of the active population are not able to compensate their time deficit even by an above poverty income. These people are neglected so far within the poverty and well-being discussion, the discussion about the "working poor" and in the discussion about time squeeze and time pressure in general and in particular for the self-employed as entrepreneurs and freelancers.
    Keywords: liberal professions (Freie Berufe), entrepreneurs, self-employed, interdependent multidimensional time and income poverty, time and income substitution, extended economic well-being, satisfaction/happiness, CES welfare function estimation, working poor, German Socio-Economic Panel, German Time Use Surveys 1991/02 and 2001/02
    JEL: D31 D13 J22
    Date: 2016–04
  2. By: Ozkan Eren; Masayuki Onda; Bulent Unel
    Abstract: This paper investigates the impact of Foreign Direct Investment (FDI) on entrepreneurial activity at the individual-owner level in U.S. states over 1996- 2008. Our results indicate that FDI has no effect on entrepreneurial activity in Right-to-Work (RTW) states. In non-RTW states, however, we find that an increase in FDI decreases the average monthly rate of business creation and destruction. Specifically, a 10-percent increase in FDI decreases the average monthly rate of business creation and destruction by roughly 4 and 2.5 percent (relative to sample mean), respectively.
  3. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Alina Sorgner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Evguenii Zazdravnykh (National Research University, Higher School of Economics, Saint-Petersburg)
    Abstract: This paper investigates the persistence of entrepreneurship in the region of Kaliningrad between 1925 and 2010. During this time period the area experienced a number of extremely disruptive shocks including; devastation caused by World War II, a nearly complete replacement of the native German population by Soviets, and 45 years under an anti- entrepreneurial socialist economic regime followed by a shock-type transition to a market economy. Nevertheless, we find a surprisingly high level of persistence of industry-specific self-employment rates in the districts of the Kaliningrad region. Our analysis suggests that persistence of entrepreneurship is higher in regions with a history of successful entrepreneurship. That is, in regions where a specific industry was particularly efficient and entrepreneurial activity was especially pronounced.
    Keywords: Entrepreneurship, regional culture, persistence
    JEL: L26 N94 P25 P5
    Date: 2016–04–21
  4. By: Rodriguez, Beatriz; McDowell, Donald
    Abstract: Abstract Rural America can be characterized as having lower economic growth, larger poverty levels, and a higher concentration of the socially disadvantaged. One primary way of revitalizing and sustaining rural America is through the development of entrepreneurship opportunities. Thus, this study focuses on increasing the number and sustainability of entrepreneurs targeting the rural areas of North Carolina. This study employed a combination of analytical approaches to examine past and ongoing factors that contribute to rural entrepreneurs’ success in the Piedmont Triad Prosperity Zone. Data derived from a survey of current entrepreneurs in the Piedmont Triad Prosperity Zone was analyzed using various qualitative and quantitative statistical methods. Analysis of variance was used to determine if there is statistical significant difference in growth of the different size of firms in different economic sectors. Trade area analysis was employed to determine the magnitude of consumer migration to various counties. The data indicated a larger migration of consumers from rural counties to the urban counties, taking advantage of agglomeration. Factor analysis and linear regression revealed that the sustainability (survival) of entrepreneurship was dependent on demographic and socio-economic factors such as business structure, location, gender, obstacles and, marital status.
    Keywords: Entrepreneurship, Factor Analysis, Economic analysis, ANOVA, Survivor Technique, Trade Area Capture, Pull factor, Entrepreneurs, Piedmont Triad Region, Piedmont Triad Prosperity Zone, Agribusiness, Community/Rural/Urban Development, Marketing, Production Economics, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, O, R,
    Date: 2016
  5. By: Elias Einiö; Henry G. Overman
    Abstract: We investigate the impacts of a significant area-based intervention (LEGI) that aimed to increase employment and entrepreneurial activity in 30 disadvantaged areas across England. We examine the spatial pattern of effects at a fine spatial scale using panel data for small geographic units and a regression discontinuity design that exploits the programme eligibility rule. The results indicate considerable local displacement effects. Employment increases in treated areas close to the treatment area boundary at the cost of significant employment losses in untreated localities just across the boundary. These differences vanish quickly when moving away from the boundary and do not persist after the programme is abolished. These findings support the view that area-based interventions may have considerable negative displacement effects on untreated parts of the economy. This displacement can substantially reduce (or in this case eliminate) any net benefits.
    Keywords: place-based policy; programme evaluation; displacement; employment; industrial policy
    JEL: H25 J20 O40 R11
    Date: 2016–02
  6. By: SEKINO Masahiro; WATANABE Wako
    Abstract: Using the data of individual loan contracts extended by the government-owned Japan Finance Corporation for Small and Medium Enterprise (JASME), we examine how the JASME's lending from December 1997 through March 1999 that aimed at mitigating the adverse effects of the credit crunch affected firm performance. We find that the return on assets (ROA) and earnings before income, tax, depreciation and amortization (EBITDA) to total assets ratio are negative a few years after the loans are made, but that this negative effect dissipates afterward.
    Date: 2016–03
  7. By: Sdiri, Hanen; Ayadi, Mohamed
    Abstract: The aim of this paper is to analyze the extent to which Tunisian firms regard corruption as a major obstacle to their product and process innovation. Using firm-level data from the World Bank Enterprise Survey conducted in 2013, we empirically test how innovation accentuates or mitigates the corruption obstacle. We show that innovation has a negative and statistically significant effect on the corruption obstacle. Besides, we prove that competition and the obstacle to corruption are negatively related. This result teaches that the Tunisian firms face a rent-shifting corruption.
    Keywords: Innovation, Corruption obstacle, Rent-shifting.
    JEL: D73 L80 O31 O32
    Date: 2016–05–04
    Abstract: Small and medium enterprises play an important role in the development of the economy of Poland. They are characterized by rapid response capability with reference to market needs, creativity, flexibility and adaptive efficiency and relatively low costs of maintaining jobs. SMEs are usually prepared for the initial stage of functioning while referring to their own savings, the support of the family and friends. Difficulties in access to capital frequently occur at the subsequent stage of life of the company when it is essential for its further functioning and development. The problem does not only refer to new businesses. Experienced entrepreneurs, who think about further development or expansion, also complain about difficulties in financing. The access to external financing of Polish small and medium enterprises is dependent on many factors, among which the following should be listed: the size of the company, type of the conducted activity, its financial situation and its individual preferences and possibilities. The aim of the paper is the evaluation of the access to external sources of the financing of activities of the SME sector in Poland based on literature studies and the information resulting from the research carried out by the Confederation of Lewiatan in the framework of the project “Monitoring the condition of the MSME sector 2014†. In the included analysis, the attention has also been drawn to the availability of external sources, directions of their allocation and the achieved results or problems occurring while achieving relevant capital. Recognized the problem of the research work is valid and important because of the role played by SMEs in the development of the Polish economy.
    Keywords: Sources of financing, credits, leasing, loads, EU funds, SMEs.
    JEL: M21
  9. By: Umeze, Gerald E.; Ohen, Susan B.
    Abstract: The paper assessed the utilization of marketing mix strategies and entrepreneurial competencies of micro restaurant owners in Calabar metropolis. Proportionate random sampling was used to select 132 restaurants which formed the sample of the study. Results showed that preparing quality/tasty meal was the most utilized marketing mix factor with mean value of 3.85. On entrepreneurial competence, relationship competence recorded the highest mean score of 3.92. A significant Chi Square (χ2) value of 10.739 indicated that there was an association between the use of marketing mix strategies and entrepreneurial competencies of the business owners. Kendall’s coefficient of concordance (w) value of 0.31 proved that there is a reasonable degree of agreement among the respondents regarding the ranking of the constraints facing their enterprises. The study recommended consistent application of 7Ps marketing mix strategies to eliminate most of the constraints identified by the operators and continuous capacity building on entrepreneurial skills.
    Keywords: Entrepreneurial Competence, Marketing Mix Strategies, Micro Enterprises, Restaurant., International Development, Marketing, Q13,
    Date: 2015

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