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on Entrepreneurship |
| By: | Cumming, Douglas; Werth, Jochen Christian; Zhang, Yelin |
| Abstract: | We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with other contractual rights that can bring about changes in a start-up necessary to successfully attract a strategic acquirer. Consistent with this view, we show that VCs often replace the founding entrepreneur as CEO long before an acquisition exit. On the other hand, acquisitions can come about through advice and support provided to the start-up, such as that provided by an incubator or technology park. Based on a sample of 251 Crunchbase companies in the U.S. over the years 2007 to 2014, we present evidence that is strongly consistent with these propositions. Further, we show that the data indicate a tension between VC-backing of start-ups resident in technology parks insofar as such start-ups are slower to become, and less likely to be, acquired. |
| Keywords: | Entrepreneurship,Entrepreneurial Finance,Governance,Technology Park,Incubator,Board of Directors,Venture Capital,Angel |
| JEL: | G23 G24 L26 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:135&r=ent |
| By: | Czarnitzki, Dirk; Doherr, Thorsten; Hussinger, Katrin; Schliessler, Paula; Toole, Andrew A. |
| Abstract: | We use an exogenous change in German Federal law to examine how entrepreneurial support and the ownership of patent rights influence academic entrepreneurship. In 2002, the German Federal Government enacted a major reform called Knowledge Creates Markets that set up new infrastructure to facilitate university-industry technology transfer and shifted the ownership of patent rights from university researchers to their universities. Based on a novel researcher-level panel database that includes a control group not affected by the policy change, we find no evidence that the new infrastructure resulted in an increase in start-up companies by university researchers. The shift in patent rights may have strengthened the relationship between patents on university-discovered inventions and university start-ups; however, it substantially decreased the volume of patents with the largest decrease taking place in faculty-firm patenting relationships. |
| Keywords: | intellectual property,patents,technology transfer,policy evaluation |
| JEL: | O34 O38 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16036&r=ent |
| By: | Lucia Foster; Patrice Norman |
| Abstract: | The Census Bureau continually seeks to improve its measures of the U.S. economy as part of its mission. In some cases this means expanding or updating the content of its existing surveys, expanding the use of administrative data, and/or exploring the use of privately collected data. When these options cannot provide the needed data, the Census Bureau may consider fielding a new survey to fill the gap. This paper describes one such new survey, the Annual Survey of Entrepreneurs (ASE). Innovations in content, format, and process are designed to provide high-quality, timely, frequent information on the activities of one of the important drivers of economic growth: entrepreneurship. The ASE is collected through a partnership of the Census Bureau with the Kauffman Foundation and the Minority Business Development Agency. The first wave of the ASE collection started in fall of 2015 (for reference period 2014) and results will be released in summer 2016. Qualified researchers on approved projects will be able to access micro data from the ASE through the Federal Statistical Research Data Center (FSRDC) network. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:15-40r&r=ent |
| By: | Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Abstract Due to information asymmetries between the debtor and potential outside investors, entrepreneurs often face sizeable and insurmountable financing constraints. This is a strong deterrent to either starting new or continuing already ongoing innovation projects which not only stymies entrepreneurs’ own future innovation potentials and growth prospects but also severely harms growth potentials of whole economies, making catching-up an unnecessarily long and arduous process. Against this backdrop, the analysis sheds light on the effects of prevailing credit constraints on different innovation strategies (i.e. R&D-based make versus M&E-based buy strategies) of establishments in Central, East and Southeast Europe (CESEE) and the Former Soviet Union (FSU) during three different economic phases. The results point to the detrimental effect of credit constraints which is particularly strong and consistent for the M&E-based ‘buy innovation strategy’ which dominates in the region, but less pronounced and relevant for the less prevalent R&D-based ‘make innovation strategy’. Furthermore, the analysis identifies firm characteristics that are conducive to innovative activities and demonstrates that establishment size, age, the particular international trading status, ownership status as well as whether subsidies were received are important determinants of different innovation strategies. |
| Keywords: | credit constraints, R&D-based and M&E-based innovation strategies, Central, East and Southeast Europe, Former Soviet Union |
| JEL: | G21 O16 O31 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:125&r=ent |
| By: | De Marco, Filippo; Wieladek, Tomasz |
| Abstract: | We study the effects of bank-specific capital requirements on Small and Medium Enterprises (SMEs) in the UK from 1998 to 2006. Following a 1% increase in capital requirements, SMEs' asset growth contracts by 6.9% in the first year of a new bank-firm relationship, but the effect declines over time. We also compare the effects of capital requirements to those of monetary policy. Monetary policy only affects firms with higher credit risk and those borrowing from small banks, whereas capital requirements affect both. Capital requirement changes, instead, do not affect firms with alternative sources of finance, but monetary policy shocks do. |
| Keywords: | Capital requirements; Firm-level real effects; prudential and monetary policy.; relationship lending; SMEs |
| JEL: | E51 G21 G28 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11265&r=ent |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Schubert, Torben (CIRCLE, Lund University); Srholec, Martin (CIRCLE, Lund University) |
| Abstract: | The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to comprehensively capture firm innovation activities. We contribute to overcoming this limitation by zooming in on the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relationship with firm growth. The paper draws on the differentiated knowledge base approach, distinguishing between analytical, synthetic, and symbolic knowledge, and measures these types of knowledge with detailed longitudinal linked-employer-employee micro data from Sweden. Econometric findings indicate positive relationships between the three knowledge types, in particular combinations thereof, and firm growth. These relationships remain robust in a wide range of models. Our analysis therefore suggests that the seemingly weak relationship between firm growth and innovation may be explained by the narrow measurement concepts that have dominated in this literature so far. |
| Keywords: | Knowledge; innovation; firm growth; micro data; Sweden |
| JEL: | C33 D22 O12 O32 O33 |
| Date: | 2016–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_013&r=ent |
| By: | Dosis, Anastasios (Essec Business School, Economics Department) |
| Abstract: | I study a credit market with adverse selection as a signalling game. I show that in the least-costly separating equilibrium, entrepreneurs of high-quality projects may over-or under-invest compared to the social optimum to signal their type. I then examine a simple budget-balanced tax-subsidy scheme applied by the government. At a first sight, the tax-subsidy scheme seems to benefit entrepreneurs of low-quality projects and harm entrepreneurs of high-quality projects because the former are cross-subsidised by the latter. Nonetheless, this result does not necessarily hold if entrepreneurs can pledge the subsidy as collateral. In that case, taxes can improve social welfare by either decreasing or increasing aggregate investment depending on whether entrepreneurs of high-quality projects over-or under-invest in equilibrium. Keywords : Adverse selection investment taxes welfare |
| Keywords: | Adverse selection; investment; taxes; welfare; |
| JEL: | D04 D60 D82 D86 H25 H82 |
| Date: | 2016–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:essewp:dr-16005&r=ent |
| By: | NERİMAN ÇELİK (SELCUK UNIVERSITY) |
| Abstract: | Humanity is at the parting of the ways because of the climate change taking place in the whole planet, draining of world's resources and destructions which are not easy to redeem. As a result of the activities of people during the past century, it has spread into the atmosphere in large amounts of carbon dioxide and other greenhouse gases. Global warming has negatively effect on environment, our water resources, agricultural conditions, energy production and transport system, our health and safety. The outcomes of the effects should be taken into consideration. Rapidly changing world order brings back changing of the business model in the business world. In this study, the necessity of the sustainability and the action that are taken to achieve this aim will be examined. |
| Keywords: | Sustainability, Entrepreneurship,Environmental |
| JEL: | L26 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3605569&r=ent |