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on Entrepreneurship |
| By: | Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Tina Wolf (University of Southern Denmark, Department of Marketing and Management) |
| Abstract: | Earlier studies have shown that entrepreneurs play a key role in shaping regional development. Innovator networks where these entrepreneurs are members of have been identified as one among many critical factors for their firms' success. This paper intents to go one step further and analyses in how far differing characteristics of these networks lead to different firm performances along the early stages of the organizational life cycle (nascent stage, emergent stage, early growth stage). A sample of 149 patenting (innovative) firms in Thuringia is analysed, using data from the commercial register and the German patent office. The results show that there is an inverted u-shaped relationship between the chances of a firm to survive and the connectivity of the network the firms are connected to but only in the later stage of the early organizational life cycle; while the structure of the ego-network never plays a role. A quite central position in the network shows-up to be unfavourable. |
| Keywords: | Innovation, Entrepreneurship, Networks, Inventor, Patents, Survival |
| JEL: | L25 L26 O30 L14 |
| Date: | 2016–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2016-021&r=ent |
| By: | Brixy, Udo; Murmann, Martin |
| Abstract: | Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on aggregate data by analyzing cyclical effects at the firm level. Using new linked employer-employee data on German start-ups we show that under constant human capital of the firms' founders, employment growth in less than 11=2-year-old start-ups reacts countercyclically and employment growth in older start-ups reacts procyclically. The young start-ups realize their countercyclical growth by hiring qualified labor market entrants who might be unable to find employment in incumbent firms during crises. This mechanism is highly important in economic and management terms and has not been revealed by prior research. |
| Keywords: | Firm growth,Entrepreneurship,Business cycle,Crisis |
| JEL: | E32 J23 L26 M13 L25 L11 D22 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16079&r=ent |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The purpose of this paper is to nuance the widely held view that well-functioning institutions are the ultimate prerequisite for innovation and entrepreneurship. This is done by putting the spotlight on the role that formal and informal institutions have in serving the economic status quo, conserving old habits and incumbent economic interests. Therefore, existing institutions often act as impediments to entrepreneurship and innovation. We argue that a common yet underappreciated source of institutional change arises when individuals deviate from the behavior stipulated by existing institutions. All types of deviations are certainly not beneficial, but when they take the form of innovations introduced by entrepreneurs, they can be a particularly powerful source of economic and institutional change. An institutional setup should strike a balance between the need for stability that protects people’s expectations and flexibility and adaptability to innovations and the ensuing entrepreneurship. |
| Keywords: | Regulation; Norms; Innovation; Entrepreneurship |
| JEL: | L50 M13 O31 |
| Date: | 2016–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1144&r=ent |
| By: | Halkos, George; Skouloudis, Antonis |
| Abstract: | Extreme Weather Events (EWEs) pose unprecedented threats to modern societies and represent a much-debated issue strongly interlinked with current development policies. Small and medium-sized enterprises (SMEs) that constitute a driving force of economic growth, employment and total value-added remain highly vulnerable to and ill-prepared for such environmental perturbations. This study assesses barriers to SMEs’ resilience to EWEs in an attempt to shed light on enabling factors which can define effective SMEs responses to nonlinear environmental stimuli. Relying on an exploratory quantitative survey, the assessment offers essential research findings for practitioners on SME management and sets forth linkages with current mechanisms for policy interventions towards an appropriate resilience agenda for SMEs. |
| Keywords: | Extreme weather events; organizational resilience; small and medium-sized enterprises; climate change; environmental perturbations. |
| JEL: | Q01 Q50 Q54 Q56 Q59 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75562&r=ent |
| By: | Hagedoorn, John (Organisation and Strategy; Mt Economic Research Inst on Innov/Techn); Lokshin, Boris (Organisation and Strategy); Malo, Stéphane (american university of paris) |
| Abstract: | We explore the innovation performance benefits of alliances for spin-off firms, in particular spin-offs from either other firms or from public research organizations. During the early years of the emerging combinatorial chemistry industry, the industry on which our empirical analysis focuses, spin-offs engaged in alliances with large and established partners, partners of similar type and size, and with public research organizations, often for different reasons. We seek to understand to what extent alliances of spin-offs with other firms (either large or small and medium sized firms) affected their innovation performance and also how this performance may have been affected by their corporate or public research background. We find evidence that in general alliances of spin-offs with other firms, in particular alliances with large firms, increased their innovation performance. Corporate spin-offs that formed alliances with other firms outperformed public research spin-offs with such alliances. This suggests that, in terms of their innovation performance, corporate spin-offs that engaged in alliances with other firms seemed to have benefitted from their prior corporate background. Interestingly, it turns out that the negative impact of alliances on the innovation performance of public research spin-offs was largely affected by their alliances with small and medium sized firms. |
| Keywords: | alliances, spin-offs, entrepreneurial firms, innovation performance |
| JEL: | L24 L26 L65 M13 O32 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2016041&r=ent |
| By: | Calá, Carla Daniela; Manjón-Antolín, Miguel; Arauzo-Carod, Josep-Maria |
| Abstract: | We analyse the determinants of exit in a developing country using Argentina as an illustrative case. We focus on regional determinants but estimate panel count data models for firms of different size, thus indirectly controlling for a major firm-level determinant. We find that most of the determinants used in previous studies analysing developed countries are also relevant here. The fit of the model improves, however, when variables that proxy for the specificities of developing economies are considered. We also find that while the exit of micro-small firms seem to be mostly driven by factors that are commonly found in developed countries, large firms are more influenced by factors that are typically not considered in developed countries' studies. These results raise doubts about the usefulness of public policies based on evidence from developed countries and show the importance of a differentiated analysis across firm size. |
| Keywords: | Dinámica Empresarial; Cese de Actividad; Tamaño de la Empresa; Modelo de Panel; Argentina; |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2548&r=ent |
| By: | Nathan Goldschlag*; Javier Miranda† |
| Abstract: | Modern market economies are characterized by the reallocation of resources from less productive, less valuable activities to more productive, more valuable ones. Businesses in the High Technology sector play a particularly important role in this reallocation by introducing new products and services that impact the entire economy. Tracking the performance of this sector is therefore of primary importance, especially in light of recent evidence that suggests a slowdown in business dynamism in High Tech industries. The Census Bureau produces the Business Dynamics Statistics (BDS), a suite of data products that track job creation, job destruction, startups, and exits by firm and establishment characteristics including sector, firm age, and firm size. In this paper we describe the methodologies used to produce a new extension to the BDS focused on businesses in High Technology industries. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:16-55&r=ent |
| By: | Rammer, Christian; Kinne, Jan; Blind, Knut |
| Abstract: | This paper investigates the micro-location pattern of innovative and non-innovative firms in Berlin using detailed information on the firms' addresses and their local environment. The study employs a unique, representative panel data set of Berlin-based firms from manufacturing and services covering a five-year period (2011-2015) and applying the standard concepts and measurement approaches used in the Community Innovation Surveys. While controlling for firm size, age and sector, we find product innovators and R&D performing firms located closer to research infrastructures, start-ups and other firms from the same industry. They tend to prefer more dynamic neighbourhoods and avoid very densely populated areas. For process innovators, no significant differences from non-process innovators are found. Firms are more likely to introduce new-to-market innovations if other firms in their direct neighbourhood had introduced such innovations in the previous period, but also if firms with such innovations have moved out of their neighbourhood. The 'creative environment' of a firm in terms of bars, cafes, clubs, leisure facilities or cultural locations does not seem to be linked to the innovative activity of firms. |
| Keywords: | Microgeography,Innovation,Location Decision,Berlin,Knowledge Spillovers |
| JEL: | O31 O32 O33 R12 R39 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16080&r=ent |
| By: | Nicholas Bloom (Stanford University); Fatih Guvenen (University of Minnesota); Sergio Salgado (University of Minnesota) |
| Abstract: | This paper studies how the distribution of the growth rate of firm-level variables (sales, profit, inventories, and employment) changes over the business cycle. Using a panel of Compustat firms from 1964 to 2013 we find that, in addition to the well-documented counter cyclicality in dispersion, the third moment---skewness---is strongly pro cyclical. This happens because the distribution of negative growth rates expands during recessions while the distribution of positive growth rates changes little. In fact, this pattern---of lower tail greatly expanding during recessions---is also the main driver behind the counter cyclicality of dispersion. These results are robust to different selection criteria, across firm size categories, and across industries. We also analyze the distribution of macroeconomic outcomes such as GDP growth and stock returns using a panel of developed and developing countries. Here we also find evidence of declining skewness during periods of low economic activity. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1621&r=ent |
| By: | Patrick Bolton (Columbia University); Neng Wang (Columbia Business School); Jinqiang Yang (School of Finance, Shanghai University of Finance and Economics) |
| Abstract: | We formulate a dynamic financial contracting problem with risky inalienable human capital. We show that the inalienability of the entrepreneur’s risky human capital not only gives rise to endogenous liquidity limits but also calls for dynamic liquidity and risk management policies via standard securities that firms routinely pursue in practice, such as retained earnings, possible line of credit draw-downs, and hedging via futures and insurance contracts. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1703&r=ent |
| By: | Wanphen Sreshthaputra (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office) |
| Abstract: | South Asia has emerged as one of the most dynamic subregions in the world but its potential is undermined by inequalities, including gender inequalities across all dimensions of economic and social life -- in access to education, health, employment, opportunities and resources and the rights of women to be treated equally with men. Such impediments prevent South Asia from achieving truly equitable, inclusive and sustainable development. Building on the outcomes of the ESCAP programme on Enabling entrepreneurship for women’s economic empowerment in Asia- Pacific, including its South Asian component and related studies, this Policy Brief makes a case for prioritizing women’s entrepreneurship in South Asia as a strategy for realizing inclusive and sustainable growth. |
| Keywords: | South Asia, Gender equality, Women's empowerment, Women's entrepreneurship |
| URL: | http://d.repec.org/n?u=RePEc:eap:pbsswa:pb0004&r=ent |
| By: | Dutta, Sourish |
| Abstract: | The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). .Therefore, in this paper I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of Indian market system. |
| Keywords: | Innovation, Financing Frictions, Entrepreneurial Finance |
| JEL: | G11 G24 O31 O32 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75584&r=ent |