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on Entrepreneurship |
| By: | Gidehag, Anton (Örebro University School of Business); Lodefalk, Magnus (Örebro University School of Business) |
| Abstract: | We examine the link between new employees in leading positions and subsequent productivity in small- and medium-sized (SME) enterprises. Managers and professionals are likely to possess important tacit knowledge. They are also in a position to influence the employing firm. Exploiting rich and comprehensive panel data for Sweden in the 2001-2010 period and employing semi-parametric and quasi-experimental estimation techniques, we find that newly recruited leading personnel have a positive and statistically significant impact on the productivity of the hiring SME. Interestingly, our results suggest that professionals with experience from international firms and enterprise groups contribute the most to total factor productivity. Overall, the findings suggest the importance of mobility of leading personnel for productivity-enhancing knowledge spillovers to SMEs. |
| Keywords: | recruitment; knowledge spillovers; firm growth; productivity; SME |
| JEL: | D22 D24 D83 J24 J62 |
| Date: | 2016–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2016_006&r=ent |
| By: | Vincent Van Roy (European Commission - JRC); Daniel Nepelski (European Commission - JRC) |
| Abstract: | This report contributes to a better understanding of the framework conditions that are conducive to the emergence and the growth of entrepreneurial activities in Europe. It takes into account a broad variety of framework conditions, including entrepreneurial culture, access to human capital, support initiatives for knowledge creation and networking, market conditions, availability of sufficient and appropriate finance, prevailing business regulations and the quality of the supporting infrastructure. For each of these framework conditions, the prevailing literature identifies the underlying components that affect the creation and growth of firms respectively. A set of two composite indicators – i.e. the Entrepreneurship and Scale-up Indices (ESIS) –have been constructed to facilitate the comparison across Member States. As such, this report provides a working tool to monitor and benchmark EU Member States in the creation of a business-friendly environment that can foster both the creation and the growth trajectories of firms. |
| Keywords: | ecosystem; financial; growth; ICT; indicator; innovation; policy; research; industry |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc103350&r=ent |
| By: | Akcigit, Ufuk; Kerr, William R. |
| Abstract: | We build a tractable growth model where multi-product incumbents invest in internal innovations to improve their existing products, while new entrants and incumbents invest in external innovations to acquire new product lines. External and internal innovations generate heterogeneous innovation qualities, and firm size affects innovation incentives. This framework allows us to analyze how different types of innovation contribute to economic growth and how the firm size distribution can have important consequences for the types of innovations realized. Our model aligns with many observed empirical regularities, and we quantify our framework by matching Census Bureau operating data with patent data for U.S. firms. We observe that internal innovation scales moderately faster with firm size than external innovation. |
| Keywords: | Citations; Endogenous Growth; Entrepreneurs.; External; innovation; Internal; patents; Research and Development; Scientists |
| JEL: | L16 O31 O33 O41 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11660&r=ent |
| By: | Maurizio Cisi (Department of Management, University of Torino, Italy); Francesco Devicienti (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy); Alessandro Manello (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy); Davide Vannoni (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy) |
| Abstract: | Using a large sample of Italian small and medium enterprises (SMEs), we investigate the effect of membership in a formal business network (“contratto di rete†) on firms’ economic performance. We find that network participation has a positive effect on value added and exports, but not on profitability. The advantages of networking are stronger in the case of: smaller SMEs, firms operating in traditional and in more turbulent markets, firms located in less developed areas and firms not already exploiting the weaker ties offered by industrial districts. Network characteristics, such as size, geographical dispersion and diversity, are also found to influence performance. |
| Keywords: | Formal Business Network, Small and Medium Firms, Economic Performance |
| JEL: | D22 L24 L25 M21 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:039&r=ent |
| By: | Dan Andrews; Chiara Criscuolo; Peter N. Gal |
| Abstract: | In this paper, we aim to bring the debate on the global productivity slowdown – which has largely been conducted from a macroeconomic perspective – to a more micro-level. We show that a particularly striking feature of the productivity slowdown is not so much a lower productivity growth at the global frontier, but rather rising labour productivity at the global frontier coupled with an increasing labour productivity divergence between the global frontier and laggard (non-frontier) firms. This productivity divergence remains after controlling for differences in capital deepening and mark-up behaviour, suggesting that divergence in measured multi-factor productivity (MFP) may in fact reflect technological divergence in a broad sense. This divergence could plausibly reflect the potential for structural changes in the global economy – namely digitalisation, globalisation and the rising importance of tacit knowledge – to fuel rapid productivity gains at the global frontier. Yet, aggregate MFP performance was significantly weaker in industries where MFP divergence was more pronounced, suggesting that the divergence observed is not solely driven by frontier firms pushing the boundary outward. We contend that increasing MFP divergence – and the global productivity slowdown more generally – could reflect a slowdown in the diffusion process. This could be a reflection of increasing costs for laggard firms of moving from an economy based on production to one based on ideas. But it could also be symptomatic of rising entry barriers and a decline in the contestability of markets. We find the rise in MFP divergence to be much more extreme in sectors where pro-competitive product market reforms were least extensive, suggesting that policy weaknesses may be stifling diffusion in OECD economies. |
| Keywords: | firm dynamics, knowledge diffusion, productivity, regulation, technological change |
| JEL: | O43 O57 O30 O40 M13 |
| Date: | 2016–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaac:5-en&r=ent |
| By: | Janvier Nkurunziza (UNCTAD, Genève) |
| Abstract: | The business sector in Burundi is dominated by small firms, with a median firm size of seven permanent workers. This has implications for firm resilience, access to resources, productivity and welfare. Large firms are more resilient, more productive, offer higher wages and other job-related benefits, and have a better access to resources. The question explored in this paper is whether supporting MSMEs in a fragile state like Burundi could increase welfare. This issue should be analyzed using panel data, which is not yet available. Relying on cross-sectional data, there are indications that welfare could not be improved just through the provision of loans to MSMEs. Other channels could include the fostering of female entrepreneurship, increasing training, helping firms to grow, and focusing aid on MSMSEs outside the capital city where entrepreneurship suffers from the urban bias. |
| Keywords: | Burundi, welfare, firms |
| JEL: | I L O |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:0111&r=ent |
| By: | Mandiefe Piabuo, Serge; Menjo Baye, Francis; Chupezi Tieguhong, Julius |
| Abstract: | This paper assesses the determinants and effects of credit constraints on the productivity of small and medium-sized enterprises (SMEs) in Cameroon. Use is made of the Cameroon enterprise survey data collected by the World Bank in 2009 and an endogenous switching regression model. Results show that interest rates, size of enterprise, size of loan, size of collateral, maturity of loans and legal status of enterprises are major sources of credit constraints faced by SMEs. Results also indicate that medium enterprises are more credit constrained than small enterprises; meanwhile the effects of credit constraints affect small enterprises more than medium enterprises. Credit constrained firms have lower levels of productivity relative to unconstrained firms. These results have implications for the creation of credit bureaux, prudential stringency and rationalization of the Cameroon tax system. |
| Keywords: | Small and medium-sized enterprises, credit constraints, endogenous switching regression model, Cameroon tax system. |
| JEL: | C4 C40 D1 D53 |
| Date: | 2015–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67135&r=ent |
| By: | Catherine Refait-Alexandre (UBFC - Université Bourgogne Franche-Comté, CRESE - Centre de REcherches sur les Stratégies Economiques - UFC - UFC - Université de Franche-Comté); Stéphanie Serve (CSO - Centre de sociologie des organisations - Sciences Po - CNRS - Centre National de la Recherche Scientifique, Université de Cergy Pontoise) |
| Abstract: | This article focuses on the use of multiple banking relationships by SMEs, a key issue given their strong dependence on bank financing in a context of increasing financial constraints and higher risk of credit rationing since the crisis. We investigate whether the use of multiple banking relationships is explained by firms’ characteristics or by the quality of the banking relationship. We exploit the results of an original survey conducted on a sample of French SMEs in December 2012. According to the traditional theoretical framework of multiple banking, we find that older, bigger, and betterperforming firms are more likely to access multiple banking relationships. We further find that innovative firms are more likely to engage in multiple banking relationships. We also highlight the explanatory power of an alternative model based on the quality of banking relationship: when the manager trusts its main bank, or when he is closer to his loan officer, the firm will be less likely to engage in multiple banking relationships. |
| Keywords: | multiple banking relationships, trust, credit rationing, financial crisis |
| Date: | 2016–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01376901&r=ent |
| By: | Bernhard Dachs (Austrian Institute of Technology, Vienna); Martin Hud (ZEW Centre for European Economic Research, Mannheim); Christian Köhler (ZEW Centre for European Economic Research, Mannheim); Bettina Peters (ZEW, Mannheim, and CREA, University of Luxembourg) |
| Abstract: | A growing literature investigates how firms’ innovation input reacts to changes in the business cycle. However, so far there is no evidence whether there is cyclicality in the effects of innovation on firm performance as well. In this paper, we investigate the employment effects of innovations over the business cycle. Our analysis employs a large data set of manufacturing firms from 26 European countries over the period from 1998 to 2010. Using the structural model of Harrison et al. (2014), our empirical analysis reveals four important findings: First, the net effect of product innovation on employment growth is pro-cyclical. It turns out to be positive in all business cycle phases except for the recession. Second, product innovators are more resilient to recessions than non-product innovators. Even during recessions they are able to substitute demand losses from old products by demand gains of new products to a substantial degree. As a result their net employment losses are significantly lower in recessions than those of non-product innovators. Third, we only find resilience for SMEs but not for large firms. Fourth, process and organizational innovations displace labor primarily during upturn and downturn periods. |
| Keywords: | Innovation, employment, business cycle, resilience, Europe. |
| JEL: | O33 J23 C26 D2 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:16-20&r=ent |
| By: | Marcus Dejardin (CERPE - Centre de Recherches en Economie Régionale et Politique Economique - Facultés Universitaires Notre Dame de la Paix (FUNDP) - Namur, CIRTES - Centre interdisciplinaire de recherche Travail Etat et Société - UCL - Université Catholique de Louvain); Sylvain Luc (Université Laval, Département des Relations industrielles - Université Laval) |
| Abstract: | Composé du mot entrepreneurial auquel est ajouté le suffixe -isme, l’entrepreneurialisme serait l'entrepreneuriat comme idéologie. Nous nous concentrons sur ce sens donné à l’entrepreneurialisme. |
| Keywords: | Entrepreneurship,Entrepreneurialism,Entrepreneuriat,Entrepreneurialisme,Entrepreneur |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01390565&r=ent |