nep-ent New Economics Papers
on Entrepreneurship
Issue of 2016‒05‒21
nine papers chosen by
Marcus Dejardin
Université de Namur

  1. Related Variety, Unrelated Variety, and Regional Growth: The Role of Absorptive Capacity and Entrepreneurship By Michael Fritsch; Sandra Kublina
  2. Entrepreneurs and freelancers: Are they time and income multidimensional poor? The German case By Joachim Merz; Tim Rathjen
  3. R&D and Productivity in the US and the EU: Sectoral Specificities and Differences in the Crisis By Castellani, Davide; Piva, Mariacristina; Schubert, Torben; Vivarelli, Marco
  4. Implementation of the Small Business Act in the context of new internal market strategy By Joanna Kuczewska
  5. Exporter Dynamics and Partial-Year Effects By Andrew B. Bernard; Renzo Massari; Jose-Daniel Reyes; Daria Taglioni
  6. Bankruptcy prediction for SMEs using relational data By TOBBACK, Ellen; MOEYERSOMS, Julie; STANKOVA, Marija; MARTENS, David
  7. Developing Innovative Students Through Cohort Innovation Programs By Mehlhorn, Joey; Tewari, Rachna; Parrott, Scott; Pruitt, Ross
  8. Position of Entrepreneurial Thinking in Iran's Education System By Mohammad Alizadeh Jamal; Habib Safarzadeh; seyed Jalal Langari; Mouna bibi Langari
  9. Diferencias entre auto-empleados y asalariados en los usos del tiempo: Aragón vs. Spain By Campaña, Juan Carlos; Gimenez-Nadal, J. Ignacio; Molina, Jose Alberto

  1. By: Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Sandra Kublina (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: This paper investigates the effect of related and unrelated variety on regional growth in West Germany. In particular, we analyze the role of regional absorptive capacity and new business formation for these effects. We find that West German regions benefit from both types of varieties. The positive effect of unrelated variety on growth is more pronounced in regions with higher levels of absorptive capacity in terms of R&D activities and with higher levels of new business formation. Such moderating effects cannot be found for related variety.
    Keywords: Related variety, unrelated variety, knowledge spillovers, regional absorptive capacity, entrepreneurship, regional growth
    JEL: R11 R12 D62
    Date: 2016–05–10
  2. By: Joachim Merz (LEUPHANA Universität Lüneburg); Tim Rathjen (LEUPHANA Universität 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
  3. By: Castellani, Davide (Henley Business School, University of Reading); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Schubert, Torben (CIRCLE, Lund University); Vivarelli, Marco (Università Cattolica del Sacro Cuore, IZA, UNU-MERIT)
    Abstract: Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech industries), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change at least in medium and low-tech sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which - instead of purely aiming at stimulating higher R&D expenditures - works on improving the firms’ capabilities to transform R&D into productivity gains.
    Keywords: R&D; productivity; economic crisis; US; EU
    JEL: O33 O51 O52
    Date: 2016–05–09
  4. By: Joanna Kuczewska (Faculty of Economics, University of Gdansk)
    Abstract: The aim of the paper is the assessment of the implementation of the SBA in the context of a new internal market strategy. This study will attempt to answer the following questions: Is the implementation process of the SMA principles in the EU Member States effective? Is this process align with the new internal market strategy? The tasks of the paper are the following: analysis of the main principles of SBA, implementation of the SBA in various combinations: countries comparison and principles comparison using the Eurostat database, assessment of the implementation of the SBA – opinions of companies and other organisations and finally presentation of the new SBA project in the context of new internal Market strategy. The first part of analysis carried in the paper is based on the SBA principles and objectives analysis. Then the assessment and level of its implementation has been done (cross-country and cross-principles statistical analysis). In the second part of this analysis, the results of direct survey carried out among companies and other organisations have been presented. The key results of the analysis indicate that the implementation of the SBA principles is not effective in all Member States and it must be aligned with the new internal market strategy. It should focus on SMEs and start-ups support.
    Keywords: the EU internal market strategy, Small Business Act principles
    JEL: L53 O52
    Date: 2016–04
  5. By: Andrew B. Bernard; Renzo Massari; Jose-Daniel Reyes; Daria Taglioni
    Abstract: Two identical firms that start exporting in different months, one each in January and December, will report dramatically different exports for the first calendar year. This partial-year effect biases down first year export levels and biases up first year export growth rates. For Peruvian exporters, the partial-year bias is large: first-year export levels are understated by 65 percent and the first year growth rate is overstated by 112 percentage points. Correcting the partial-year effect eliminates high first year export growth rates, raises initial export levels and almost doubles the contribution of net firm entry and exit to overall export growth.
    Keywords: export entry, export growth, margins of trade, heterogeneous firms
    JEL: F14 C81 D22
    Date: 2016–05
  6. By: TOBBACK, Ellen; MOEYERSOMS, Julie; STANKOVA, Marija; MARTENS, David
    Abstract: Bankruptcy prediction has been a popular and challenging research area for decades. Most prediction models are built using traditional data such as financial gures, stock market data and firm specific variables. We complement such dense data with ne-grained data by including information on the company's directors and managers in the prediction models. This information is used to build a network between Belgian enterprises, where two companies are related if they share or have shared a director or high-level manager. We start from two possibly related assumptions: (i) if a company is linked to many (or only) bankrupt firms, it will have a higher probability of becoming bankrupt and (ii) the management has an inuence on the performance of the company and incompetent or fraudulent managers can lead a company into bankruptcy. The weighted-vote relational neighbour (wvRN) classier is applied on the created network and transforms the relationships between companies in bankruptcy prediction scores, thereby assuming that a company is more likely to file for bankruptcy if one of the related companies in its network has failed. The more related companies have failed, the higher the predicted probability of bankruptcy. The relational model is then benchmarked against a base model that contains only structured data such as financial ratios. Finally, an ensemble model is built that combines the relational model's output scores with the structured data. We find that this ensemble model outperforms the base model when detecting the riskiest firms, especially when predicting two-years ahead.
    Date: 2016–04
  7. By: Mehlhorn, Joey; Tewari, Rachna; Parrott, Scott; Pruitt, Ross
    Abstract: In the fall 2014, a cohort innovation program was developed for undergraduate students to increase business skills and entrepreneurial capacity. The program focused on three primary areas: soft skills, critical thinking skills, and work experience. Students were pre-screened and selected based on an interview process related to potential, not GPA. The program utilized several unique teaching environments including the use of industry mentors, flipped classrooms, internships, video blogs, and student led program development. Students participated in innovation pitch sessions throughout the program to help develop entrepreneurial skills. Post participation surveys revealed that the program improved soft skills and the ability to work effectively in unfamiliar environments. Major improvements were seen in teamwork skills, project management leadership, and business and communication skills. Participants stated that the program motivated and empowered them to become industry ready innovators.
    Keywords: innovation, student learning outcomes, agribusiness, Teaching/Communication/Extension/Profession,
    Date: 2016–02–06
  8. By: Mohammad Alizadeh Jamal (Emam Mohammad Bagher Branch, Farhangian University, Bojnord, Iran); Habib Safarzadeh (Emam Mohammad Bagher Branch, Farhangian University, Bojnord, Iran); seyed Jalal Langari (Emam Mohammad Bagher Branch, Farhangian University, Bojnord, Iran); Mouna bibi Langari (Emam Mohammad Bagher Branch, Farhangian University, Bojnord, Iran)
    Abstract: Objectives of education systems of various societies will face new challenges through the path leads them into new and variable situation of new industrial technologies of the third millennium in which philosophical, scientific, cultural, social and economic foundations of societies will experience deep developments. The education system can play a key role to adapt societies to the new situation. The education system should pave the way for developing certain features such as independence-seeking, risk-taking, innovation, self-esteem and foresight in students through proposing proper training programs. Based on promoting entrepreneurial thinking, the education system can provide a condition in which the educated may act as producers instead of job seekers and may start businesses not only for themselves, but also for others. Thus, this study tries to analyze the position of entrepreneurial thinking in Iran's education system using examining the entrepreneurial features of students. To do so, a number of 335 students (third grade of high school) were selected through stratified random sampling based on discipline and gender. Then a questionnaire was used to collect and analyze the required data. The results gained from analysis of data imply that the educational programs of Iran's education system have failed to provide a proper condition to improve the entrepreneurial features of students. The results of the analysis of the variance, used to compare the performance of training programs in different schools, indicate that there was no difference among various schools in improving entrepreneurial spirit for students. There was no significant difference between students of various schools in terms of having entrepreneurial spirit, as well. Likewise T-test, used to compare the entrepreneurial spirit of girl and boy students in average, showed that there is no significant relationship between gender and entrepreneurial spirit.
    Keywords: Education System, Entrepreneurial Spirit, Students, Schools
  9. By: Campaña, Juan Carlos; Gimenez-Nadal, J. Ignacio; Molina, Jose Alberto
    Abstract: This paper analyzes the differences between Spanish self-employees and wage-earners in the time devoted to paid work, unpaid work, childcare, and leisure. To this end, we use the Time Use Surveys of Spain for the periods 2002-03 and 2009-10, differentiating between men and women and whether the self-employed and wage-earners belong to the Autonomous Community of Aragon or elsewhere in Spain. Our findings show that the self-employed devote more time to paid work and less time to childcare and leisure than do wage-earners, with these differences being more pronounced in the second period analyzed, and principally for self-employed women from Aragon.
    Keywords: Self-employees, Wage-earners, Time uses, Economic crisis, Unemployment
    JEL: D13 J13 J22
    Date: 2016–05–19

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