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on Entrepreneurship |
| By: | Sari Pekkala Kerr; William R. Kerr |
| Abstract: | We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantifies immigrant contributions to new firm creation in a wide variety of fields and using multiple definitions. While significant research effort has gone into understanding the economic impact of immigration into the United States, comprehensive data for quantifying immigrant entrepreneurship are difficult to assemble. We combine several restricted-access U.S. Census Bureau data sets to create a unique longitudinal data platform that covers 1992-2008 and many states. We describe differences in the types of businesses initially formed by immigrants and their medium-term growth patterns. We also consider the relationship of these outcomes to the immigrants' age at arrival to the United States. |
| JEL: | F22 J15 J44 J61 L26 M13 O31 O32 O33 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22385&r=ent |
| By: | Michele Di Maio (Department of Business and Economic Studies, University of Naples Parthenope (Italy) and HiCN); Giorgio Fabbri (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS & EHESS); Vincenzo Lombardo (Department of Business and Economic Studies, University of Naples Parthenope) |
| Abstract: | This paper presents a theoretical model exploring the effects of industrial policy (IP) when entrepreneurs are characterized by different ability levels and sectors are heterogeneous as for their profitability and social externalities generated. The optimal structure of IP in terms of monetary transfers is shown to crucially depend on the distribution of entrepreneurs abilities. Moreover, we find that IP increases aggregate welfare under very general conditions, also in the presence of Government failures. In an extension of the model, we consider the case in which the Government can use also the provision of business training to entrepreneurs as an additional instrument of IP. Based on these results, policy implication for industrial policy in developing countries are discussed. |
| Keywords: | Entrepreneurs; Heterogeneous Abilities; Training. |
| JEL: | O25 O15 O14 |
| Date: | 2016–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1622&r=ent |
| By: | Tsvetkova, Alexandra |
| Abstract: | This paper tests the effect of diversity, creativity and localized competition on firm formation in US computer and electronic product manufacturing within the knowledge spillover theory of entrepreneurship (KSTE) framework. Fixed effects instrumental variable estimation results support the KSTE contention of a positive relationship between knowledge and entrepreneurship. Industrial diversity and diversity of knowledge tend to promote endogenous firm entry, whereas evidence on other factors is mixed. This points to sensitivity of conclusions in the KSTE literature to regional and industrial environments and calls for caution in interpreting and generalizing findings obtained in various settings. |
| Keywords: | innovation, entrepreneurship, firm formation, knowledge spillover theory of entrepreneurship, computer and electronic product manufacturing |
| JEL: | O1 O3 R1 R11 |
| Date: | 2016–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72349&r=ent |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The surplus that is created in a successful entrepreneurial venture is much higher than the profit corresponding to the risk-adjusted market rate of return. The part of the surplus that exceeds this level may be enoted “entrepreneurial rent.” Such rents normally disappear in the long run but so-called isolating mechanisms ensure that these rents persist in the short or medium run. Entrepreneurial rents arise when successful entrepreneurship is exercised and entrepreneurial firms create and successfully commercialize something new and unique. The presence of and search for entrepreneurial rents is a prerequisite for the innovations and structural change required to generate economic growth. High ex post compensation for successful entrepreneurship cannot be taxed harshly without affecting entrepreneurs’ willingness to supply effort. |
| Keywords: | Entrepreneurship; Economic rent; Entrepreneurial rent; Innovation; Imitation |
| JEL: | D51 J30 L26 O31 |
| Date: | 2016–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1128&r=ent |
| By: | Nuno Campos Pereira (Católica Porto Business School, Universidade Católica Portuguesa); Nuno Araújo (CATIM - Centro de Apoio Tecnológico à Indústria Metalomecânica); Leonardo Costa (Católica Porto Business School and CEGE, Universidade Católica Portuguesa) |
| Abstract: | We developed a Counting Multidimensional Innovation Index (MII) framework for measuring and benchmarking innovation of Small and Medium Enterprises (SMEs), groups of SMEs, industries, regions, and countries. The methodology behind the MII is similar to the methodology behind the United Nations Multidimensional Poverty Index and follows the innovation definitions stipulated by the OECD Oslo Manual, covering dimensions and partial indicators suggested by this Manual and/or adapted from the Innovation Union Scoreboard (IUS) and from the Global Innovation Index (GII). To illustrate the MII framework, a survey was conducted among SMEs of the metalworking industry in Portugal. |
| Keywords: | Innovation, SME, Multidimensional Innovation Index, Portuguese Metal working Industry |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:cap:wpaper:012016&r=ent |
| By: | Iwasaki, Ichiro; Maurel, Mathilde; Meunier, Bogdan |
| Abstract: | In this paper, we aim to empirically analyze the determinants of firm entry and exit in Russia using a regional-level panel data for the years of 2008-2014, with special emphasis on institutional failures and the politico-economic impact of external crises. We found that these two elements exhibit statistically significant and economically meaningful effects both on the creation and destruction of Russian firms, controlling for potentially explanatory factors. Our empirical results also suggest that the process of firm entry and exit is manifold across Russian regions due to their heterogeneity. Nevertheless, a surprisingly robust estimate of the world oil price (irrespective of the difference in target regions) suggests a possible high exposure of each Russian region to a global crisis. This comes from the importance of oil trade with the world and, accordingly, the ongoing crisis may bring a harmful influence to regeneration of Russian businesses. |
| Keywords: | firm entry, firm exit, institutions, economic integration, crisis, Russia |
| JEL: | D22 F15 G01 P31 P33 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:rrcwps:59&r=ent |
| By: | Malamud, Semyon; Zucchi, Francesca |
| Abstract: | We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that financing constraints lead firms to decrease production but may spur investment in innovation (R&D). We characterize which firms should substitute production for innovation in the face of constraints and thus display a "gambling" type of behavior. We embed our firm dynamics into a model of endogenous growth and show that financing frictions have offsetting effects on economic growth. JEL Classification: D21, G31, G32, G35, L11 |
| Keywords: | cash management, endogenous growth, financial constraints, innovation |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20161919&r=ent |
| By: | Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong |
| Abstract: | The notions of entrepreneurship and creativity in developed economies, despite having gained attention among researchers, remain embryonic in numerous emerging economies. Being focused on entrepreneurs in a typical transitional and emerging market economy, Vietnam, this paper aims to empirically explore the influence that past entrepreneurial efforts may exert on the perceptions of entrepreneurs about their own creativity performance. The study also seeks to understand how entrepreneurs social networks contribute to perceived creativity capacity by entrepreneurs who participate in those societies. The empirical research results suggest that entrepreneurs with business experience and active networking engagement are more likely to believe in their own creativity. This knowledge and insights in turn offer some implications for addressing the lack of radical creativity among Vietnamese entrepreneurs. |
| Keywords: | Creativity/innovation; entrepreneurship; emerging economy; Vietnam |
| JEL: | M13 O33 P21 P27 |
| Date: | 2016–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/233156&r=ent |
| By: | Caroline Freund (Peterson Institute for International Economics); Gary Clyde Hufbauer (Peterson Institute for International Economics); Euijin Jung (Peterson Institute for International Economics) |
| Abstract: | Small and medium-sized enterprises (SMEs) employ about half the American workforce, and as a result their needs are deemed important for the economic health of the United States. From this perspective, the fact that 98 percent of exporters are small businesses suggests that trade is a critical component to the economic vitality of SMEs. Proponents of trade agreements argue that such agreements open markets to businesses of all sizes and that simplifying customs and promoting e-commerce can especially help small businesses. But critics of trade agreements cite the relatively high share of total exports by large firms as an indication that large firms—and their investors—are the main beneficiaries of open markets. This Policy Brief examines the evidence for these conflicting claims and shows that exports from both small and large firms are boosted when trade barriers are reduced. Foreign market liberalization offers as much to small firms as it offers to large firms. One important difference is that exports from small firms are likely to be boosted by increased participation—i.e., more firms export when trade costs fall—while exports from large firms are more likely to grow in volume—i.e., each firm exports more. |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb16-7&r=ent |
| By: | Masatoshi Kato (School of Economics, Kwansei Gakuin University) |
| Abstract: | This study explores internal research and development (R&D) and external knowledge acquisition of firms during the start-up period, using panel data from original questionnaire surveys conducted in Japan. In particular, the study highlights the role of entrepreneurial human capital in the adoption of internal R&D and external knowledge acquisition strategies (licensing-in and joint R&D). Based on estimates of a bivariate probit model, the analysis provides evidence that firms managed by entrepreneurs with a high level of human capital are more likely to engage both in internal R&D and external knowledge acquisition. More specifically, while generic human capital, such as educational attainment, plays a significant role in explaining internal R&D, specific human capital, such as prior work experience in a related field or innovation experience, tends to have a prominent in uence on external knowledge acquisition. As a supplementary analysis, the effectiveness of internal R&D and external knowledge acquisition strategies is assessed by examining the link with innovation outcomes (product innovations and patent applications). The results suggest that the two innovation strategies have positive effects on innovation outcomes. |
| Keywords: | Start-up, entrepreneur, internal R&D, external knowledge acquisition, generic human capital, specific human capital |
| JEL: | M13 L26 O32 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:145&r=ent |
| By: | Madalina Cristina TOCAN (Faculty of Economics, Ecological University of Bucharest) |
| Abstract: | The terms "Entrepreneurship" and "Entrepreneur" became increasingly used worldwide because the entrepreneurship tends to be associated with the economic development and well-being of a nation. Entrepreneurship is a powerful driver of economic growth and job creation: it creates new companies and jobs, opens up new markets, and nurtures new skills and capabilities. According to EU Entrepreneurship Action Plan 2020 “Entrepreneurship makes economies more competitive and innovative and is crucial in achieving the objectives of several European sectorial policies” 'The objective of this paper is to present an analysis of the Romanian entrepreneurial ecosystem and the factors which influence it. Development of the present paper has been carried out through the analysis of the Romanian entrepreneurial business environment, using data supplied by the Global Entrepreneurship Monitor 2014, European Commission and Ernst & Young study “Entrepreneurs Talk”. |
| Keywords: | Entrepreneurship, skills and capabilities, entrepreneurial system |
| JEL: | L26 L31 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:eub:wp2015:2015-03&r=ent |
| By: | GUIMARÃES BARBOSA, EVALDO |
| Abstract: | This article reports results from an empirical search for the determinants of the very small firms’ survival prospects. Research in the area seems to be excessively concentrated in new firms and fails to include measures related to the investment policies and market strategies of the small firms. Making use of information from balance sheets and perceptual data collected through a survey of a small sample of incumbent small manufacturing enterprises of the traditional sectors in Brazil, the Cox proportional hazard model, new variables and new and unconventional model specifications, the study achieves striking results. The many identified determinants of the small businesses’ hazard rates concern the financing, working capital and production technology policies, the matching of investment and financing maturities, the market strategies, the characteristics of the entrepreneur, business risk, profitability and the economic climate. Results are suggestive that the small manufacturing enterprises’ viability is highly dependent on keeping under control the elements of the running of the businesses whose judicious administration is advocated by the management science. Whether the successful choices are conscious or the corresponding enterprises are selected in the way predicted by the organizational ecology approach remains unsettled. |
| Keywords: | Small firms; Business survival determinants; Business strategies; Cox regression |
| JEL: | L25 M1 M13 |
| Date: | 2016–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72304&r=ent |
| By: | Regis, Paulo José (Division of Economics, Xi'an Jiaotong-Liverpool University) |
| Abstract: | Financial constraints are common in developing countries where financial systems are underdeveloped. In China, firms report access to finance is the most important obstacle in the business environment. This seems to be related to firms which fail to gain access to the credit market. We examine the likelihood of access to credit of firms where size and exporting seem to be key characteristics to consider. Credit constraints are significant to investment decisions. Together with size, access to credit is among the firm characteristics with the largest impact in the likelihood to invest. |
| Keywords: | access to finance, investment decision, Small and Medium-sized Enterprises, China |
| JEL: | G21 G32 O16 D52 |
| Date: | 2015–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2015-01&r=ent |
| By: | Stephane Verani (Federal Reserve Board) |
| Abstract: | Which financial frictions matter in the aggregate? This paper presents a general equilibrium model in which entrepreneurs finance a firm with a long-term contract. The contract is constrained efficient because firm revenue is costly to monitor and entrepreneurs may default. The cost of monitoring firms and the entrepreneurs' outside options determine the significance of moral hazard relative to limited enforcement for financial contracting. Calibrating the model to the U.S. economy, I find that the relative welfare loss from financial frictions is about 5 percent in terms of aggregate consumption with moral hazard, while it is 1 percent with limited enforcement. Reforms designed to strengthen contract enforcement increase aggregate consumption in the short-run, but their long-run effects are modest when monitoring costs are high. Weak contract enforcement contribute to aggregate fluctuations by amplifying the effect of aggregate technological shocks, but moral hazard does not. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:4&r=ent |
| By: | Chemla, Gilles; Tinn, Katrin |
| Abstract: | This paper examines the role of reward-based crowdfunding in learning about demand and improving investment decisions. The information gathered while raising funds from consumers provides firms with a real option to invest if demand is sufficiently high. Despite moral hazard problems stemming from the firms' ability to divert the funds raised, all-or-nothing schemes are nearly as efficient as frictionless surveys and full money-back guarantees. Dominant platforms adopt features such as limited campaign length and transparency between backers, which are essential to overcome moral hazard. Our results are consistent with stylized facts and provide new testable implications. |
| Keywords: | Kickstarter; learning; moral hazard; real options; Reward-based crowdfunding; uncertainty |
| JEL: | D80 G30 L14 L26 O30 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11363&r=ent |
| By: | Welter, Friederike; Levering, Britta; May-Strobl, Eva |
| Abstract: | Der Mittelstand wandelt sich seit Jahren. Angesichts eines neuen Selbstverständnisses im Mittelstand sollte sich daher auch die Mittelstandspolitik weiterentwickeln. Empfohlen wird eine rahmenorientierte Politik mit spezifischen Maßnahmen, die Einstellungen, Möglichkeiten und Fähigkeiten zum Unternehmertum positiv beeinflussen. Konkret bedeutet dies: Statt Nachteilsausgleich zu betreiben, sollte die Mittelstandspolitik an den Stärken ansetzen und die Potenziale des Mittelstands zur Erreichung gesamtwirtschaftlicher Ziele nutzen. Mittelstandspolitik ist eine Querschnittsaufgabe, denn nur gemeinsam mit anderen politischen Akteuren können die Besonderheiten des Mittelstands zur Geltung gebracht werden. Auch sollte sie die heterogenen Teilgruppen differenziert ansprechen, ohne dass jedoch eine Ausdifferenzierung in zahlreiche Förderprogramme stattfindet. |
| Abstract: | The German Mittelstand has been undergoing considerable change for several years now. In the light of a new self-perception of the Mittelstand, policies targeting the Mittelstand should adjust accordingly. We recommend a framework-oriented policy comprising specific measures which positively influence attitudes, opportunities and skills with regard to entrepreneurship. Policy should not compensate for disadvantages but should rather focus on the strengths of the Mittelstand and use its potential in order to reach overall economic and social aims. Mittelstand policies are a cross-sectional task, since the specific features and capabilities of the Mittelstand can only be fully exploited if the relevant policy makers and stakeholders co-operate. Policy should also specifically address the heterogeneous subgroups of the Mittelstand; however, without offering a broad range of different support programs for each group. |
| Keywords: | Mittelstand,Mittelstandspolitik,Rahmenpolitik,Nachteilsausgleich,German Mittelstand,policies on Mittelstand enterprises,business framework policy,compensation for disadvantages |
| JEL: | L53 O43 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmmat:247&r=ent |