nep-ent New Economics Papers
on Entrepreneurship
Issue of 2016‒10‒23
thirteen 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 Blattman, Christopher J.; Dercon, Stefan
  2. Heterogeneous Entrepreneurs, Government Quality and Optimal Industrial Policy By Michele Di Maio; Giorgio Fabbri; Vincenzo Lombardo
  3. On the Origins of Entrepreneurship: Evidence from Sibling Correlations By Lindquist, Matthew; Sol, Joeri; van Praag, Mirjam; Vladasel, Theodor
  4. Self-employment programmes for young people : a review of the context, policies and evidence By Burchell, Brendan.; Coutts, Adam.; Hall, Edward.; Pye, Nick.
  5. Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review By Kluve, Jochen; Puerto, Olga Susana; Robalino, David A.; Romero, Jose M.; Rother, Friederike; Stöterau, Jonathan; Weidenkaff, Felix; Witte, Marc
  6. Job Creation and the Role of Dependencies By Fornaro, Paolo; Luomaranta, Henri
  7. Enhancing women’s entrepreneurship in Kenya : initial qualitative assessment of the ILO’s GET Ahead business training programme By Stangl, Anne.; Farley, Katheryn.; Sievwright, Kirsty.; Brady, Laura.; Fritz, Katherine.
  8. Access to finance and enterprise growth : evidence from an experiment in Uganda By Fiala, Nathan.
  9. Women business training programme in Kenya : impact of incentives By Diwan, Faizan.; Makana, Grace.; McKenzie, David.; Paruzzolo, Silvia.
  10. Toward a Matching Approach to Support CBM (Collaborative Business Model) Processes between Regional Entrepreneurs within the RIS3 Policy By Jérémie Faham; Maxime Daniel; Jérémy Legardeur
  11. Entrepreneurship as a Driver of Economic Growth: Evidence from Enterprise Development in Nigeria By FARAYIBI, Adesoji
  12. Louis Pasteur's entrepreneurship : an economic history of science. By Gabriel Galvez-Behar
  13. “Crowdfunding” et diasporas : l’apparition des plateformes modifie-t-elle la structure du marché et les stratégies des acteurs du financement diasporique ? By Cécile Fonrouge

  1. By: Blattman, Christopher J. (Harris School, University of Chicago); Dercon, Stefan (Department for International Development (DFID))
    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.
    Keywords: wage labor, factories, employment, entrepreneurship, cash transfers, field experiment
    JEL: J24 O14 F16 J81 O17
    Date: 2016–10
  2. By: Michele Di Maio (Universita degli studi di Napoli "Parthenope" [Napoli]); Giorgio Fabbri (AMSE - Aix-Marseille School of Economics - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - EHESS - École des hautes études en sciences sociales); Vincenzo Lombardo (Universita degli studi di Napoli "Parthenope" [Napoli])
    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: industrial policy,entrepreneurs,heterogeneous abilities,training
    Date: 2016–06
  3. By: Lindquist, Matthew; Sol, Joeri; van Praag, Mirjam; Vladasel, Theodor
    Abstract: Promoting entrepreneurship has become an increasingly important part of the policy agenda in many countries. The success of such policies, however, rests in part on the assumption that entrepreneurship outcomes are not fully determined at a young age by factors that are unrelated to current policy. We test this assumption and assess the importance of family background and neighborhood effects as determinants of entrepreneurship, by estimating sibling correlations in entrepreneurship. We find that between 20 and 50 percent of the variance in different entrepreneurial outcomes is explained by factors that siblings share (i.e., family background and neighborhood effects). The average is 28 percent. Hence, entrepreneurship is far less than fully determined at a young age. Our estimates increase only a little when allowing for differential treatment within families by gender and birth order. We then investigate a comprehensive set of mechanisms that explain sibling similarities. Parental entrepreneurship plays a large role in explaining sibling similarities, as do shared genes. We show that neighborhood effects matter, but are rather small, particularly when compared with the overall importance of family factors. Sibling peer effects, and parental income and education matter even less.
    Keywords: Entrepreneurship; Family Background; Intergenerational Persistence; Neighborhood Effects; Occupational Choice; Sibling Correlations.
    JEL: D13 J62 L26
    Date: 2016–10
  4. By: Burchell, Brendan.; Coutts, Adam.; Hall, Edward.; Pye, Nick.
    Abstract: The aim of this paper is to provide a comprehensive analysis of the key issues surrounding the use of self-employment interventions as labour market attachment mechanisms for young people.
    Keywords: youth employment, self employment, employment creation, transition from school to work, entrepreneurship, survey, emploi des jeunes, travail indépendant, création d'emploi, passage de l'école à la vie active, esprit d'entreprise, enquête, empleo de jóvenes, trabajo por cuenta propia, creación de empleos, transición de la escuela a la vida profesional, capacidad empresarial, encuesta
    Date: 2015
  5. By: Kluve, Jochen (Humboldt University Berlin, RWI); Puerto, Olga Susana (Youth Employment Network (UN, ILO, World Bank)); Robalino, David A. (World Bank); Romero, Jose M. (World Bank); Rother, Friederike (World Bank); Stöterau, Jonathan (RWI); Weidenkaff, Felix (ILO International Labour Organization); Witte, Marc (University of Oxford)
    Abstract: This study reviews the evidence on the impact of youth employment programs on labor market outcomes. The analysis looks at the effectiveness of various interventions and the factors that influence program performance including country context, targeted beneficiaries, program design and implementation, and type of evaluation. We identify 113 counterfactual impact evaluations covering a wide range of methodologies, interventions, and countries. Using meta-analysis methods, we synthesize the evidence based on 2,259 effect sizes (Standardized Mean Differences, or SMD) and the statistical significance of 3,105 treatment effect estimates (Positive and Statistically Significant, or PSS). Overall, we find that just more than one-third of evaluation results from youth employment programs implemented worldwide show a significant positive impact on labor market outcomes – either employment rates or earnings. In general, programs have been more successful in middle- and low-income countries; this may be because these programs' investments are especially helpful for the most vulnerable population groups – low-skilled, low-income – that they target. We also conjecture that the more-recent programs might have benefited from innovations in design and implementation. Moreover, in middle and low income countries, skills training and entrepreneurship programs seem to have had a higher impact. This does not imply, however, that those programs should be strictly preferred to others; much depends on the needs of beneficiaries and program design. In high-income countries, the role of intervention type is less decisive – much depends on context and how services are chosen and delivered, a result that holds across country types. We find strong evidence that programs that integrate multiple interventions are more likely to succeed because they are better able to respond to the different needs of beneficiaries. We also find evidence about the importance of profiling and follow-up systems in determining program performance, and some evidence about the importance of incentive systems for services providers.
    Keywords: youth employment, active labor market policy, impact evaluations, systematic review, meta-analysis
    JEL: J21 J48 E24
    Date: 2016–10
  6. By: Fornaro, Paolo; Luomaranta, Henri
    Abstract: We contribute to the extensive literature on the relationship between firm size and job creation, by examining the effects of dependencies between enterprises. Using Finnish monthly data encompassing the population of Finnish private businesses, we calculate the gross job creation and destruction, together with the net job creation, for different size classes and industries. Importantly, we divide firms into a dependent (i.e. owned, at least partially, by a large company) and independent category. Due to the quality of the data, we are able to isolate the 'organic' growth of firms, disregarding the effects of mergers, split-offs and other legal restructuring. We find that independent companies have shown a considerably higher net job creation, regardless of their size class. However, dependent firms do not show particularly different behaviors with respect to the sensitivity to aggregate conditions, compared to their independent counterparts. Once we control for age, we find that independent firms generate more (net) jobs during the early years of their existence but destroy more jobs once they become older.
    Keywords: Dependencies, firm size, firm age, employment creation
    JEL: D22 E24 E32 L25
    Date: 2016–10–13
  7. By: Stangl, Anne.; Farley, Katheryn.; Sievwright, Kirsty.; Brady, Laura.; Fritz, Katherine.
    Abstract: The study includes quantitative and qualitative research components. This paper, titled Enhancing Women’s Entrepreneurship in Kenya: Initial Qualitative Assessment of the ILO’s GET Ahead Business Training Programme reports the results from the initial qualitative data collection exercise. Results of the follow up quantitative exercise will be available in mid-2015.
    Keywords: women workers, entrepreneur, entrepreneurship, gender equality, ILO Programme, training programme, evaluation, Kenya, travailleuses, entrepreneur, esprit d'entreprise, égalité des genres, programme de l'OIT, programme de formation, évaluation, Kenya, trabajadoras, empresario, capacidad empresarial, igualdad de géneros, programa de la OIT, programa de formación, evaluación, Kenya
    Date: 2015
  8. By: Fiala, Nathan.
    Abstract: The following paper Access to Finance and Enterprise growth: Evidence from an experiment in Uganda authored by Nathan Fiala sets out to understand the challenges to business growth in Uganda, relying on a sample of 1,550 micro- enterprise owners from the Northern and Central regions.
    Keywords: microfinance, access to credit, enterprise creation, men, women, model, Uganda, microfinance, accès au crédit, création d'entreprise, hommes, femmes, modèle, Ouganda, microfinanciamiento, acceso a créditos, creación de empresa, hombres, mujeres, modelo, Uganda
    Date: 2015
  9. By: Diwan, Faizan.; Makana, Grace.; McKenzie, David.; Paruzzolo, Silvia.
    Abstract: The working paper Women business training programme in Kenya: Impact of incentives explores the issue of how to increase the take-up of ILO business training in Kenya, the Gender and Enterprise Together (GET) Ahead training programme. The researchers test three different types of invitations to the training, offering the participants different choices of accepting or declining participation.
    Keywords: attendance, training programme, women, entrepreneur, small enterprise, programme frameworks, evaluation, Kenya, présence, programme de formation, femmes, entrepreneur, petite entreprise, cadres des programmes, évaluation, Kenya, asistencia, programa de formación, mujeres, empresario, pequeña empresa, marco de estrategias, evaluación, Kenya
    Date: 2015
  10. By: Jérémie Faham (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Maxime Daniel (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), LaBRI - Laboratoire Bordelais de Recherche en Informatique - Université Bordeaux Segalen - Bordeaux 2 - Université Sciences et Technologies - Bordeaux 1 - École Nationale Supérieure d'Électronique, Informatique et Radiocommunications de Bordeaux (ENSEIRB) - CNRS - Centre National de la Recherche Scientifique); Jérémy Legardeur (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: One of the objectives of the European Commission for 2014-2020 is to establish " Research and Innovation Strategies for the Smart Specialization " (RIS3). The originality of RIS3 is the " bottom-up " identification of regional priorities especially through the " Entrepreneurial Discovery " (ED) process. The Collaborative Business Models (CBM) approach has probably a role to play within this process as a suitable strategic tool to set up regional " value networks ". However, the preparatory stage of CBM and especially the identification and the matching processes among potential RE partners is often not addressed. This work is based on the need to support the discovering and the matching processes between " regional entrepreneurs " (companies, research , consulting, association, public authorities…) in order to improve the efficacy of CBM and RIS3. In this paper, we propose a review of the state of the art concerning the different dimensions linked to the matching processes.
    Keywords: Matching,RIS3,Entrepreneurial Discovery,Collaborative Business Models,Profile Comprehension,Entrepreneurs
    Date: 2016–04–10
  11. By: FARAYIBI, Adesoji
    Abstract: This study provides an econometric analysis of the role of entrepreneurship in economic growth in Nigeria. The study also assesses the areas where the country has developed enterprise and innovations. Findings from empirical analysis confirm the roles of entrepreneurs as good drivers of economic growth in the country. Specifically, results reveal that credit to SMEs is statistically significant in the determination of economic growth, implying that increase in entrepreneurial financing has significant effect on economic growth in Nigeria. Particularly, the increase in the operations and activities of SMEs in Nigeria remains indispensable to the pursuit of economic growth and development as a nation. However, the major hindrance inhibiting entrepreneurship as a growth driver in Nigeria include; poor infrastructural facilities, inadequate start-up process, financial management problems, lack of strategic planning and other socio-cultural problems. The study recommends building an in-country entrepreneurial capacity by incorporating requisite enterprise trainings and development progammes into the nation’s education system at all levels. Also, government, banking institutions and the organized private sector should increase financial support for entrepreneurial oriented initiatives.
    Keywords: Entrepreneurship, Enterprise Development, SMEs, MSMEs, SMEDAN, YouWin
    JEL: L1 M2 M21
    Date: 2015–08–10
  12. By: Gabriel Galvez-Behar (IRHiS - Institut de Recherches Historiques du Septentrion - Université de Lille, Sciences Humaines et Sociales - CNRS - Centre National de la Recherche Scientifique)
    Abstract: For many studies, the current “commodification” of science ends with a period which started in the middle of the twentieth century. The scientific entrepreneur may renew old practices and reminds old figures like Louis Pasteur's one. Such an echo of the past justifies an historical approach. Thus this paper calls for a renewed economic history of science thanks to the study of Pasteur's scientific enterprise. Based on new approaches to entrepreneurship, he focuses here on the analysis of three very specific resources - money, patents and capital – in order to have a better understanding of Pasteur's entrepreneurial logic. This study uses sources, which were largely neglected or even unknown. At last, it highlights the accumulation process of Pasteur's enterprise, which allowed him to take more risk in his scientific activities.
    Abstract: De nombreux travaux considèrent que l’implication croissante de la science dans des formes de valorisation économique met fin à une parenthèse ouverte au milieu du XXe siècle. La figure actuelle du chercheur entrepreneur – ou de l’entrepreneur scientifique – renouerait avec des pratiques plus anciennes dont Louis Pasteur serait d’ailleurs l’un des symboles. Un tel constat appelle une histoire économique renouvelée des mondes savants à laquelle cet article entend contribuer à travers l’étude de l’entreprise scientifique de Louis Pasteur. S’inspirant d’approches nouvelles de l’entrepreneuriat, il se concentre ici sur l’analyse de trois ressources bien particulières – l’argent, les brevets d’invention et le capital – qui permettent de mieux saisir la logique entrepreneuriale de Louis Pasteur. Cette étude, qui repose sur l’exploitation de sources jusqu’alors largement négligées voire inexploitées, fait alors ressortir la logique d’accumulation de l’entreprise pasteurienne qui lui permet d’assumer des risques toujours croissants.
    Keywords: Economic History,History of science,Patents, Brevets,Pasteur (Louis), Histoire des sciences, Histoire économique
    Date: 2016–02
  13. By: Cécile Fonrouge (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Abstract: Crowdfunding is an emerging form of entrepreneurial finance. Financial flows from migrants and their descendants to their homeland are important. Does crowdfunding platforms disrupt this diaspora financial flow? By studying this new literature and interviewing keys fintechs entrepreneurs of French platforms, we propose a unique description: Diasporas typologies, investment motivations that are applied to Diaspora and trends on business models evolution for this new digital industry. The main results are about the equilibrium between emotional and rational motivations for the new generation of migration; the cohabitation of " crowd pull " and
    Keywords: Crowdfunding,finance participative,entrepreneuriat ethnique,migration,start-up sociales,modèles d’affaires,rupture
    Date: 2015–10–30

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