nep-ent New Economics Papers
on Entrepreneurship
Issue of 2016‒06‒18
ten papers chosen by
Marcus Dejardin
Université de Namur

  1. EntreComp: The Entrepreneurship Competence Framework for Citizens By BACIGALUPO MARGHERITA; KAMPYLIS PANAGIOTIS; PUNIE YVES; VAN DEN BRANDE GODELIEVE
  2. Knowledge creates markets: The influence of entrepreneurial support and patent rights on academic entrepreneurship By Dirk Czarnitzki; Thorsten Doherr; Katrin Hussinger; Paula Schliessler; Andrew A. Toole
  3. Economic Transition and the Determinants of Self-employment in Urban China: 2007-2013 By Ma, Xinxin; Li, Shi
  4. Property Rights, Extortion and the Misallocation of Talent By Ranasinghe, Ashantha
  5. The New Economics of Entrepreneurship, Innovation and Institutions: Considerations for Australian Agriculture By Potts, Jason
  6. The funding of small and medium companies by shadow-banks in China By Löchel, Horst; Packham, Natalie; Hölzl, Eugen
  7. Gender and Innovativeness of the Enterprise: the Case of Transition Countries By Maryia Akulava
  8. Overcoming the Discrete Nature of Innovation Financing in the Early Stages of Russia By Barinova, Vera; Eremkin, Vladimir; Lanshina, Tatiana
  9. SME Stock Exchanges – Should They Have a Greater Role? By Aljosa Sestanovic
  10. Strategic behavior of private entrepreneurs in China: Collective action, representative claims, and connective action By Heberer, Thomas

  1. By: BACIGALUPO MARGHERITA (European Commission – JRC - IPTS); KAMPYLIS PANAGIOTIS (European Commission – JRC - IPTS); PUNIE YVES (European Commission – JRC - IPTS); VAN DEN BRANDE GODELIEVE (European Commission, DG Employment)
    Abstract: The development of the entrepreneurial capacity of European citizens and organisations is one of the key policy objectives for the EU and Member States. Ten years ago, the European Commission identified sense of initiative and entrepreneurship as one of the 8 key competences necessary for a knowledge-based society. The EntreComp framework presented in this report proposes a shared definition of entrepreneurship as a competence, with the aim to raise consensus among all stakeholders and to establish a bridge between the worlds of education and work. Developed through a mixed-methods approach, the EntreComp framework is set to become a reference de facto for any initiative aiming to foster entrepreneurial capacity of European citizens. It consists of 3 interrelated and interconnected competence areas: ‘Ideas and opportunities’, ‘Resources’ and ‘Into action’. Each of the areas is made up of 5 competences, which, together, constitute the building blocks of entrepreneurship as a compe-tence. The framework develops the 15 competences along an 8-level progression model and proposes a compre-hensive list of 442 learning outcomes. The framework can be used as a basis for the development of curricula and learning activities fostering entrepreneurship as a competence. Also, it can be used for the definition of parame-ters to assess learners’ and citizens’ entrepreneurial competences.
    Keywords: citizen, education, employment, growth, competitiveness
    Date: 2016–06
  2. By: Dirk Czarnitzki; Thorsten Doherr; Katrin Hussinger; Paula Schliessler; Andrew A. Toole
    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
    Date: 2016–05
  3. By: Ma, Xinxin; Li, Shi
    Abstract: This paper conducts two hypotheses testing and provides evidence on the determinants of self-employment for local urban residents and migrants in urban China. Using CHIP2007 and CHIP2013, the employment status is divided into four categories— self-employed employers, own-account workers, employees, and the unemployed. Several major conclusions emerge. First, utilizing the imputed wage premiums, the business creation hypothesis is rejected for both the local urban residents and migrants groups in 2007. However, in 2013, the business creation hypothesis is supported when a worker choice to become a self-employed employer. Whereas the influences of wage premiums on the probability of becoming an own-account worker are negatively significant for both the local urban residents group and the migrants group, so the business creation hypothesis is rejected when a worker choice to become an own-account worker. Second, the choice to become a self-employed employer for the local urban residents group, and the choice to become an own-account worker for the migrants group in the initial economy reform period can gain more benefit, so the business creation hypothesis is supported for older generation group, whereas this hypothesis is rejected for the younger generation group for both the local urban residents and migrants groups.
    Keywords: self-employed employer, own-account worker, business creation hypothesis, disguised unemployment hypothesis, urban China
    JEL: J23 J31 O17
    Date: 2016–05
  4. By: Ranasinghe, Ashantha
    Abstract: Extortion is a severe obstacle to doing business in many countries, varies both in its frequency and magnitude across establishments. This paper presents a model of extortion to account for these features and assess its quantitative effects. In the model, entrepreneur capital is subject to extortion which affects both the extensive and intensive margins of entrepreneurship. Despite common property rights, extortion rates arise endogenously and are hump-shaped in entrepreneur ability. To discipline the quantitative analysis, the model is calibrated to match establishment-level evidence related to extortion in Poland and yields a number of implications broadly consistent with establishment-level facts in developing economies. For measures of property rights within a plausible range, output losses can be upwards of 10 percent.
    Keywords: extortion, misallocation, establishment size, property rights
    JEL: O1 O4
    Date: 2015–06
  5. By: Potts, Jason
    Abstract: Agriculture is often represented as a case study in perfect competition, with a large number of small price-taking producers choosing an optimal input mix from a simple production function to maximize profits. Entrepreneurship and innovation do not seem to enter into this story, and nor do institutions. But this characterization misrepresents the complexity and niche competition in agricultural markets and the opportunities for cooperation. Old models of innovation policy emphasized market failure and recommended more or less direct government support to fund R&D investment. Examples were public funding of agricultural science. But new approaches to economics of innovation emphasise the role of entrepreneurial or market (rather than technical) discovery, and the increasing use of private institutions to solve the innovation problem through pooling innovation resources in the ‘commons’. This shift from market failure to collective action models of the innovation problem, and from government solutions to governance solutions, represents a fundamental shift in modern economic thinking about how industries grow through entrepreneurship and innovation, and the role of government in this process.
    Keywords: Agricultural and Food Policy,
    Date: 2016–02
  6. By: Löchel, Horst; Packham, Natalie; Hölzl, Eugen
    Abstract: This paper looks at the current shadow-banking practices of Chinese SME's and the question if these practices have a positive impact on the development of those SME's. For this pur-pose, new primary data is examined: Four case studies and two supplementary sets of data. Although the data volume imposes limitations on the results, the two main findings are: First, shadow-banking does have such a positive effect. Second, interpersonal lending is by far the most important financing channel for this effect among all the shadow-banking types ob-served.
    Keywords: Shadow-banking,SME-funding,China's financial system
    JEL: D82 K42 O17
    Date: 2016
  7. By: Maryia Akulava
    Abstract: Little knowledge exists on difference in innovation behavior of men and women leading the SMEs in transition countries. This paper estimates whether there is a gender gap in SMEs innovation actions. Results show that propensity to innovate is higher among female owners and this finding preserves for 5 measures of innovativeness. Thus, female involvement in business might be beneficial for the innovative sustainable development of economy. Estimation of the gap in performance of implemented innovations did not reveal any strong prevailing gender in terms of efficiency.
    Keywords: Small and medium enterprises, innovation activities, gender differences
    JEL: O31 O32 J16 L25
    Date: 2015–10
  8. By: Barinova, Vera (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Gaidar Institute for Economic Policy); Eremkin, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Gaidar Institute for Economic Policy); Lanshina, Tatiana (National Research University Higher School of Economics)
    Abstract: The paper deals with the discontinuous process of establishment of an innovative company and aims to study the funding of innovative activities at the early stages in Russia to create opportunities for attracting funds at every stage of the evolution of ideas and companies. The authors study the process of a company establishment and picture its main theoretical and practical characteristics. The authors analyze international experience and Russian realities in the sphere of funds available for innovative projects at the early stages of development. The major result of this research are suggestions for introducing new elements and new mechanisms to decrease the possibility of development of the early stages funding gaps in innovative activities.
    Keywords: innovative company, funding, startup, Russia, venture
    Date: 2015–04–02
  9. By: Aljosa Sestanovic (Effectus - University Collage for Law and Finance)
    Abstract: Access to finance is widely recognized as one of the main impediments for growth and development of the small and medium enterprises. This article presents certain aspects of development of stock exchanges oriented towards small and medium-size enterprises. It aims to contribute towards the growing debate on funding of small and medium enterprises through dedicated stock exchanges and serve as a useful contribution to stakeholders to undertake certain steps toward implementation of effective policies for design of exchanges dedicated to financing of small and medium enterprises.
    Keywords: tržište Small and medium enterprises, stock exchanges, SME exchanges, alternative markets, multilateral trade facilities (MTFs), Zagreb Stock Exchange
    JEL: D53 G15 P34
    Date: 2015–06
  10. By: Heberer, Thomas
    Abstract: This paper starts out from James C. Scott's seminal book "Weapons of the Weak" dealing with everyday forms of collective action by private entrepreneurs. It raises the question by what kind of formal and informal mechanisms Chinese entrepreneurs exert political influence in order to protect or enforce their interests. The author explored two aspects: First, the way in which private entrepreneurs in China act in a collective manner, i. e. as a strategic group; and second, how collective action by private entrepreneurs is altering both political structures and the institutional setting of the political system and what effect this is having on stabilization of the system as a whole. In addition, this paper examines patterns of formal and informal representation of private entrepreneurs in Chinese politics. The author contends that as Chinese entrepreneurs increasingly turn to patterns of collective action they are developing into a coherent group with a broad range of strategies aimed at safeguarding their interests, and that in so doing they are playing a salient role as system stabilizers.
    Keywords: private entrepreneurs as strategic groups,political strategies and corporate political action,collective action,connective action,lobbying,weapons of the rich,everyday forms of policy influence
    Date: 2016

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