nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒01‒22
nine papers chosen by
Marcus Dejardin
Université de Namur

  1. Immigrant entrepreneurship By Pekkala Kerr, Sari; Kerr, William R.
  2. The Origins and Extent of Entrepreneurial Action-Orientedness: An Experimental Study By Ahmad Barirani; Randolph Sloof; Mirjam van Praag
  3. Skills and entrepreneurship: Are return migrants 'Jacks-of-all-trades'? By Mahé, Clothilde
  4. Self-Employment, Wealth and Start-up Costs: Evidence from a Financial Crisis By Koffi Elitcha; Raquel Fonseca
  5. Disentangling Innovation in Small Food Firms: The role of External Knowledge, Support, and Collaboration By Wixe, Sofia; Nilsson, Pia; Naldi, Lucia; Westlund, Hans
  6. The economic performance of innovations in a collaborative setting: the case of KIBS firms By Anna Cabigiosu; Diego Campagnolo
  7. Re-imaging Capitalism through Social Entrepreneurship By Chatterjee, Susmita; Datta Gupta, Sangita
  8. Setting up a Technology Commercialization Office at a Non-Entrepreneurial University: An Insider's Look at Practices and Culture By Katerina Sideri; Andreas Panagopoulos
  9. Firm dynamics and business cycle: What doesn't kill you makes you stronger? By Roger M. Gomis; Sameer Khatiwada

  1. By: Pekkala Kerr, Sari; Kerr, William R.
    Abstract: We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantities 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: 2016–12–21
  2. By: Ahmad Barirani (Copenhagen Business School, Denmark); Randolph Sloof (Amsterdam School of Economics, University of Amsterdam, The Netherlands); Mirjam van Praag (Copenhagen Business School in Denmark, Tinbergen Institute in The Netherlands)
    Abstract: We test the hypothesis, based on popular and theoretical perspectives, that entrepreneurs are more action-oriented than other occupational groups. We compare their playing strategies in an optimal stopping game using a randomized online experiment among 100s of entrepreneurs, managers and employees. Our experimental results show that entrepreneurs are indeed more action-oriented than others. We theorize that this is driven by their lower levels of loss aversion and higher levels of curiosity. Our empirical test results show that (i) entrepreneurs score indeed higher, on average, than managers and employees on curiosity and lower on loss aversion; (ii) the di fference in action-orientedness between entrepreneurs and others vanishes when controlling for individual curiosity levels and (iii) an alternative treatment that provides subjects with counterfactual information (about what would have happened in case of stopping) increases their willingness to stop. Under some assumptions, the combination of these results leads to the conclusion that the higher action-orientedness of entrepreneurs can be linked to their greater curiosity, but not to their lower level of loss aversion. Hence, we find support for the intuitive idea that (curiosity driven) action-orientedness enhances the identi fication and/or exploitation of opportunities.
    Keywords: Entrepreneurs; Managers; Employees; Inaction; Curiosity; Loss aversion; Lab-in-the field experiment.
    JEL: L26 C93 D03
    Date: 2017–01–13
  3. By: Mahé, Clothilde (UNU-MERIT)
    Abstract: This paper examines whether and how return migrants may be more likely to be entrepreneurs. With reference to Lazear's Jack-of-all-trades hypothesis, we posit that return migrants may be more likely to choose self-employment as a result of the diverse work experience they gain as migrants. Using the 2012 Egyptian Labour Market Panel Survey, seemingly unrelated regression model estimates show that return migration increases the propensity to be self-employed, controlling for the possession of savings. This is found to be due to a Jack-of-all-trades effect, whereby migration helps accumulating more occupations and jobs. Sector-specific rather than multi-sector experience may also benefit entrepreneurship, as it was found that the more industries an emigrant worked in, the less the probability of self-employment upon return. Self-employed might thus need a generalist, balanced mix of occupational skills, within a relatively narrow set of industries. These findings hold for non-agricultural activities.
    Keywords: International migration, Return migration, Entrepreneurship, Human capital, North Africa, Egypt
    JEL: F22 J24 L26 O12 O15
    Date: 2016–12–16
  4. By: Koffi Elitcha; Raquel Fonseca
    Abstract: Financial constraints affect individuals’ decision to become self-employed, suggesting a positive relationship between the propensity to become entrepreneur and personal wealth. Recent evidence confirms this hypothesis, and shows that the importance of the entrepreneurship—wealth relationship increases with the extent of liquidity constraints and flattens with the magnitude of start-up costs. Using individual-level data from 3 European and U.S. surveys as well as the World Bank, we investigate the impact of start-up costs on the self-employment—wealth relationship. Results confirm the strong positive relationship between entrepreneurial choice and wealth, as well as the negative effect stemming from an increase in start-up costs. Although there is no strong evidence that wealth in itself played a bigger role during the last global financial crisis, the negative impact of higher start-up costs on wealth proved significant.
    Keywords: Self-Employment, Occupational Choice, Wealth, Liquidity Constraints, Start-up Costs, Financial Crisis
    JEL: E02 E21 J21 J24
    Date: 2016
  5. By: Wixe, Sofia (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Sweden); Nilsson, Pia (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Swede); Naldi, Lucia (Centre for Family Enterprise and Ownership (CeFEO ), Jönköping International Business School, Sweden); Westlund, Hans (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, & KTH Royal Institute of Technology, Sweden)
    Abstract: This paper applies unique survey data on innovation and external interaction of small food producers in Sweden. The overall purpose is to test if firms that are more engaged in external interaction are more innovative. To disentangle innovativeness beyond new goods and services, innovation is measured as new processes, new markets, new suppliers, new ways of organization, and new distributors. Findings point to a positive relationship between firm innovation and external interaction, both in terms of collaboration, external knowledge and support from regional actors. In particular, collaboration regarding transports and sales is shown to enhance most types of innovation. Product and process innovation benefit from external knowledge from extra-regional firms as well as regional support from the largest firm. Findings suggest that current innovation policies can improve their efficiency by increasing their flexibility to enable tailor-made innovation policies at the local level.
    Keywords: Innovation; collaboration; food industry; rural regions
    JEL: L25 L66 O31 R12
    Date: 2017–01–16
  6. By: Anna Cabigiosu (Dept. of Management, Università Ca' Foscari Venice); Diego Campagnolo (Dept. of Economics and Management, University of Padova)
    Abstract: Collaborative innovation literature shows that collaborating with clients enhances the innovation performance of firms particularly as regard the development of highly new products. In this setting, are highly new products the innovation category that drives the most firmÕs performance? This is a relevant research question in the innovation literature since it warns about the risks and limits of highly new products but has not considered the firmÕs performance implications of different categories of innovations developed by collaborating with clients. In this paper we consider different categories of innovation, product and process innovations new to the industry and new to the firm respectively, and develop original hypotheses about their implications over firmÕs performance. We develop and test our hypotheses on a sample of 99 Italian KIBS firms. We focus on KIBS firms since they are used to customize their services and collaborate with clients during the development of new services. Results support the idea that highly innovative product innovations are more strongly associated with a KIBS firmÕs growth, while weakly innovative process innovations are more strongly associated with a KIBS firmÕs productivity, but only in small firms. Theoretical and managerial implications for collaborative innovations settings are drawn.
    Keywords: collaborative innovation, innovation categories, firmÕs performance, KIBS
    JEL: O32 O33
    Date: 2016–11
  7. By: Chatterjee, Susmita; Datta Gupta, Sangita
    Abstract: Abstract: Social Entrepreneurship focuses on activities that make world a better place to live in Social Entrepreneurship addresses various social issues. One such issue is rural development and poverty eradication. One way to achieve this is through self-Help groups. Self –Help group ( SHG) is a unique concept in India Self Help group is a homogenous group of people who have come together with the intention of increasing their income, improve their standard of living and status in society. Self –Help groups is a tool to eradicate poverty and encourage rural development. This study looks into journey of two women from two self-help groups of West Bengal. One SHG is located in rural area and another is in urban area. Self help groups helped them in developing their enterprise. These two micro entrepreneurs in turn provided livelihood to many women in their locality. They have been instrumental in providing other women in their locality with decent income. Self-Help groups not only helped in eradication of poverty but also helped in empowerment of women by providing them with income and social recognition.
    Keywords: Social Entrepreneurship, Micro-Entrepreneurs, SHG, India,
    JEL: O2
    Date: 2016–12–29
  8. By: Katerina Sideri; Andreas Panagopoulos (Department of Economics, University of Crete, Greece)
    Abstract: The introduction of the entrepreneurial university and the accompanying drive for science to acquire commercial relevance has created tensions (Slaughter and Leslie, 1997; Slaughter and Rhoades, 2000; Ferne, 1995; Bennich-Bjorkman, 1997). One reason is that faculty scientists are nowadays expected to think as entrepreneurs (Lockett and Wright, 2005), and many feel uneasy with both their participation in the commercialization process and the role of University Technology Commercialization Offices (TCO) (Martinelli et al., 2008, Louis et al., 1989). Considering that the main resource for the creation of entrepreneurial universities is human capital (Guerrero and Urbano, 2012), the way faculty scientists view their role and their respective goodwill toward entrepreneurship and the TCO, must be considered when building an entrepreneurial environment (Krueger et al., 2000). Looking into faculty's perceptions is important because they encompass attitudes and values shaping informal rules of interaction in organisations (North, 1990; Vanaelst et al., 2006). The few studies analysing entrepreneurship among faculty scientists indicate that scientists have raised concerns about the role of markets in influencing academic freedom (Baldini, 2008; Davis et al., 2011), especially in terms of autonomy in self-selecting a research agenda and the respective method of dissemination (Jacobsen et al., 2001, Davis et al., 2011). Their concerns relate to the ways the pressure to patent can skew research priorities at the expense of fundamental research, and shift the attention of faculty away from activities best suited to their skills (Nelson, 2001), forcing universities to behave more like firms. Others fear that university patenting may restrict communication with colleagues (Blumenthal et al., 1996; Martinelli, et al., 2008), increase secrecy (Blumenthal et al., 1986), the withholding of data (Campbell et al., 2000), and inevitably limit the dissemination of knowledge (Calderini and Franzoni, 2004; Lee, 2000). This article builds on these insights and offers qualitative evidence about a related category of reasons for the hostile attitude towards commercialization of academic research: lack of a common mindset between TCO's and research faculty. It frequently escapes attention that the prerequisite for arranging a commercial deal is the existence of shared understandings and orientation towards common goals between the TCO, faculty and industry, so that a TCO assesses potential opportunities and sets up well defined legal relationships between the university and a commercial firm (Kaghan and Lounsbury, 2006). These shared understandings play an important role since faculty scientists are effectively gate keepers that control the informal flow of knowledge that is indispensable to the translation of academic research to products with commercial value (Agrawal and Henderson, 2002; Agrawal, 2006; Thursby et al., 2001; Thursby and Thursby, 2002). It follows that faculty's views of the merits of commercialisation and their role in the process can hinder or even sabotage technology transfer. Dispersing myths and addressing suspicion and deep misunderstandings held by communities of practice, such as the community of faculty researchers, is of paramount importance in order to develop a sense of comfort and build trust among faculty and the TCO.
    Keywords: technology, non-profit, university, patent
    JEL: K20 I20 O34
    Date: 2016–09–24
  9. By: Roger M. Gomis (Universitat Pompeu Fabra); Sameer Khatiwada (IHEID, Graduate Institute of International and Development Studies, Geneva and ILO Regional Office Bangkok)
    Abstract: This paper analyses the impact of recessions and booms on firm performance. We look at 70,000 firms in over 100 countries between 1986 and 2014 and document the trends in firm entry over the business cycle. Our paper confirms some standard facts about firm dynamics: employment growth is decreasing with size and age; entry rate is pro-cyclical while the exit rate is countercyclical. For example, in case of advanced economies, 97 per cent of employment creation is by firms between the ages of 0 and 5 years, while for developing and emerging economies, it is 86 per cent of all employment. Our main results are: first, we do see selection effects of recessions, particularly when we look at employment, sales and capital. Specifically, when a firm enters the market during good times, they tend to have lower employment and capital than firms that enter the market during bad times. Second, when we look at total factor productivity (TFP), we don’t see a clear “cleansing effect” of recessions – more productive firms entering the market while less productive leaving. Third, the effects of entering during a boom or a recession tend to persist for a long time, over 15 years. Fourth, we find notable differences between income groups – while recessions tend to create stronger firms in the advanced economies, booms tend to create stronger ones in case of the emerging economies. Lastly, the effects of recessions on firms tend to vary by sector.
    Keywords: business cycles, entry and exit, firm performance, total factor productivity
    JEL: D22 E32 L25 O4
    Date: 2017–01

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