nep-ent New Economics Papers
on Entrepreneurship
Issue of 2016‒10‒02
eight papers chosen by
Marcus Dejardin
Université de Namur

  1. Occupational Choice in Early Industrializing Societies: Experimental Evidence on the Income and Health Effects of Industrial and Entrepreneurial Work By Christopher Blattman; Stefan Dercon
  2. Why Family Matters: The Impact of Family Resources on Immigrant Entrepreneurs’ Exit from Entrepreneurship By Bird, Miriam; Wennberg, Karl
  3. R&D and Productivity in the US and the EU: Sectoral Specificities and Differences in the Crisis By Davide Castellani; Mariacristina Piva; Torben Schubert; Marco Vivarelli
  4. Conflict: Opening up to International Investment and Diversification – a case study of Vietnam By Dr. Stephanie Jones; Rafael Masters
  5. The market-based dissemination of modern-energy products as a business model for rural entrepreneurs: Evidence from Kenya By Bensch, Gunther; Kluve, Jochen; Stöterau, Jonathan
  6. Macroeconomics implications of female entrepreneurs facing financial frictions to access to credit: A DSGE model approach in Cameroon By Thierry Kame Babilla; Adele Ngo Bilong; Sandra Kendo; Martin Jaures Ndzana Eloundou
  7. Exploring Antecedents of Service Innovation Excellence in Manufacturing SMEs By Mennens, Kars; van Gils, Anita; Odekerken - Schröder, Gaby; Letterie, Wilko
  8. Les Communautés de Pratique de startups innovantes By Tatiane Guimarães; Luciana Castro-Gonçalves; Glaucia Vasconcellos Vale

  1. By: Christopher Blattman; Stefan Dercon
    Abstract: As low-income countries industrialize, workers choose between informal self-employment and low-skill manufacturing. What do workers trade off, and what are the long run impacts of this occupational choice? Self-employment is thought to be volatile and risky, but to provide autonomy and flexibility. Industrial firms are criticized for poor wages and working conditions, but they could offer steady hours among other advantages. We worked with five Ethiopian industrial firms to randomize entry-level applicants to one of three treatment arms: an industrial job offer; a control group; or an “entrepreneurship” program of $300 plus business training. We followed the sample over a year. Industrial jobs offered more hours than the control group’s informal opportunities, but had little impact on incomes due to lower wages. Most applicants quit the sector quickly, finding industrial jobs unpleasant and risky. Indeed, serious health problems rose one percentage point for every month of industrial work. Applicants seem to understand the risks, but took the industrial work temporarily while searching for better work. Meanwhile, the entrepreneurship program stimulated self-employment, raised earnings by 33%, provided steady work hours, and halved the likelihood of taking an industrial job in future. Overall, when the barriers to self-employment were relieved, applicants appear to have preferred entrepreneurial to industrial labor.
    JEL: F16 J24 J81 O14 O17
    Date: 2016–09
  2. By: Bird, Miriam (Center for Family Business, University of St. Gallen); Wennberg, Karl (Stockholm School of Economics, Institute of Analytical Sociology (IAS) and the Ratio Institute)
    Abstract: We integrate insights from the social embeddedness perspective with research on immigrant entrepreneurship to theorize on how family resources influence exit from entrepreneurship among previously unemployed immigrant entrepreneurs. Results from a cohort study of immigrant entrepreneurs in Sweden reveal that family resources are important for immigrants to integrate economically into a country. We find that having family members in geographical proximity increases immigrant entrepreneurs’ likelihood of remaining in entrepreneurship. Further, family financial capital enhances immigrant entrepreneurs’ likelihood of remaining in entrepreneurship as well as their likelihood of exiting to paid employment. Although often neglected in immigrant entrepreneurship studies, resources accruing from spousal relationships with natives influence entrepreneurs’ exit behavior. We discuss contributions for research on entrepreneurial exit, entrepreneurs’ social embeddedness, and immigrant entrepreneurship.
    Keywords: Immigrant entrepreneurship; entrepreneurial exit; family resources; social embeddedness; relational embeddedness
    JEL: J60 L26
    Date: 2016–09–26
  3. By: Davide Castellani (Henley Business School, University of Reading); Mariacristina Piva; Torben Schubert; Marco Vivarelli
    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: 2016–06
  4. By: Dr. Stephanie Jones (Associate Professor, Organizational Behavior, Maastricht School of Management); Rafael Masters (Part-time student on the Maastricht MBA Program, School of Industrial Management, Ho Chi Minh University of Technology, Ho Chi Minh City, Vietnam)
    Abstract: One of the first pre-requisites for a country trying to attract foreign investment – especially one closed to international trade for many years – is to encourage entrepreneurship. An entrepreneur is often described as a person who can not only organize and manage an enterprise, especially a business, but who usually shows initiative and risk. In most places this would indeed be true. People hoping to succeed in business will have to use their initiative to seek out markets and offer attractive products, and bear the risk of wasting their time, effort and a large amount of money should their venture go awry. In Vietnam, however, the entrepreneurship success formula or paradigm has an interesting twist to it. As a developing country with a high level of technical competency and a young population, entrepreneurs will need to take the initiative to survive in a highly competitive and constantly evolving business environment, where trends can change quickly and their prospective customers or clients will be constantly looking for the next big thing. The risk, however, is offset by the low barriers to entry and starting up, the availability of cheap labor, and the low cost of living. So whilst entrepreneurs need to be quick and take advantage of every opportunity that comes their way, they need not necessarily risk everything to launch their dream company.
    Date: 2016–08
  5. By: Bensch, Gunther; Kluve, Jochen; Stöterau, Jonathan
    Abstract: This paper provides evidence on a key factor for the success of market-based approaches to disseminate modern-energy products in rural areas of developing countries: the employment and income perspectives of entrepreneurs in the related value chains. We assess the impact of a large-scale energy-access intervention in Kenya that supports individuals in starting a business in improved cookstoves or small solar products. To identify the causal effect of the intervention, the analysis is based on a staggered implementation evaluation design that takes advantage of sequential roll-out of the programme. The results demonstrate how active entrepreneurs use the new business opportunity to intensify and diversify their income-generating activities, often by shifting away from subsistence farming as a main source of income. This goes along with sizeable improvements in individual and household incomes as well as perceived economic well-being. Impacts significantly differ between the two technologies and across sub-groups, most notably gender. The findings support that market-based approaches can successfully establish sustainable local businesses to foster modern energy access in rural areas.
    Abstract: Der vorliegende Artikel untersucht einen entscheidenden Faktor für den Erfolg von marktbasierten Ansätzen zur Verbreitung moderner Energietechnologien in Entwicklungsländern: die Beschäftigungs- und Einkommensperspektiven von Kleinstunternehmern in den jeweiligen Wertschöpfungsketten. Zu diesem Zweck werden die Einkommenseffekte eines Programmes zur Energiegrundversorgung in Kenia untersucht. Das Programm unterstützt Einzelpersonen und Gruppen im ländlichen Raum dabei, eigene Kleinstunternehmen zum Verkauf energiesparender Kochherde oder Solarlampen zu gründen und zu etablieren. Der quasi-experimentelle Evaluationsansatz zur Messung kausaler Effekte der Maßnahme basiert auf der sequentiellen Einführung zusätzlicher Trainings. Unsere Ergebnisse zeigen, wie ausgebildete Kleinstunternehmer die neuen Einkommensmöglichkeiten nutzen, um ihre Erwerbstätigkeiten auszubauen und zu diversifizieren. Dies ist in vielen Fällen mit einer Abkehr von landwirtschaftlicher Subsistenzwirtschaft verbunden. Diese Neuausrichtung geht einher mit beträchtlichen Verbesserungen der Einkommenssituation von Individuen und Haushalten. Die Einkommenseffekte unterscheiden sich jedoch stark zwischen den beiden Energietechnologien und über bestimmte Teilnehmergruppen hinweg, insbesondere zwischen Männern und Frauen. Insgesamt erweist sich der marktbasierte Ansatz als erfolgreich darin, durch den Aufbau lokaler Unternehmen den Zugang zu modernen Energietechnologien im ländlichen Raum nachhaltig zu verbessern.
    Keywords: energy-access interventions,cookstoves,pico-solar,value chain,impact evaluation,entrepreneurship training,entropy balancing
    JEL: O13 O33 H43 L26
    Date: 2016
  6. By: Thierry Kame Babilla; Adele Ngo Bilong; Sandra Kendo; Martin Jaures Ndzana Eloundou
    Abstract: This research assesses the effects of financial frictions faced by female entrepreneurs on macroeconomics performances in Cameroon. We address this important issue, using a Dynamic Stochastic General Equilibrium model with financial micro-foundations. The model features two sectors such as, a production sector dominated by female entrepreneurs and a production sector dominated by male entrepreneurs. Financial frictions appear because entrepreneurs face collateral constraints when borrowing from the banking sector. The steady state and the calibration analysis demonstrate that the female sector is labor-intensive whereas the male sector is capital intensive. But, when the female sector is granted loans to the same extent as in the male sector, it performs better in term of value-added in GDP. The benchmark analysis reveals the complementary role of both sectors in sustaining economic activity during a downturn. The Scenarios analysis emphasizes the expansionary effect of the loosening financial constraint, with female entrepreneurs acting as main driver of the economy activity. Thus, institutional frameworks that relax collateral constraints, grant exemptions for enormous requirements, enforce properties right law, and promote transparency and credit-information sharing can make big inroads in alleviating borrowing constraints, increasing financial inclusion and enhancing macroeconomic outcomes.
    Keywords: Female Entrepreneurs, Financial Frictions, Macroeconomics Implications, DSGE Model, Cameroon.
    JEL: C11 C61 D21 E32 E44 O11
    Date: 2016
  7. By: Mennens, Kars (Marketing and Supply Chain Management); van Gils, Anita (Organisation and Strategy); Odekerken - Schröder, Gaby (Marketing and Supply Chain Management); Letterie, Wilko (Organisation and Strategy)
    Abstract: In this paper, we discuss factors that enable SMEs to achieve service innovation excellence. Using a knowledge based-perspective, we posit that absorptive capacity, which is the ability to identify, assimilate and exploit external knowledge, is one of these critical factors. Additionally, we investigate the effect of two potential drivers that can influence absorptive capacity, namely employee collaboration and an SME’s search breadth.
    Keywords: strategy , business administration and economics
    JEL: O31
    Date: 2016
  8. By: Tatiane Guimarães (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, ESIEE PARIS - Université Paris-Est, PUC Minas - Pontifícia Universidade Católica de Minas Gerais); Luciana Castro-Gonçalves (ESIEE PARIS - Université Paris-Est, IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Glaucia Vasconcellos Vale (PUC Minas - Pontifícia Universidade Católica de Minas Gerais)
    Abstract: Dans cet article, nous étudions comment les startups innovantes gèrent des logiques paradoxales liées à la coopétition au sein d'une communauté de pratique inter organisationnelle. La littérature sur les communautés de pratique permet de les considérer comme un potentiel espace de coopération pour le développement d'innovations, surtout pour des structures comme startups qui souffrent du manque de ressources. Les impératifs liés à la concurrence, pourtant très importants au niveau de cette population, ne sont cependant pas abordés. L'analyse de la communauté d'entrepreneurs San Pedro Valley au Brésil, souligne l'importance de considérer cette dimension pour évaluer les réels effets des dynamiques de coopétition dans un espace communautaire et sur le processus d'innovation à l'échelle d'une ville.
    Keywords: community of practice,communauté de pratique,coopétition,startup
    Date: 2015–10–01

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