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on Entrepreneurship |
| By: | Tania Babina; Paige P. Ouimet; Rebecca Zarutskie |
| Abstract: | Using matched employee-employer US Census data, we examine the effect of a successful initial public offering (IPO) on employee departures to startups. Accounting for the endogeneity of a firm’s choice to go public, we find strong evidence that going public induces employees to leave for start-ups. Moreover, we document that the increase in turnover following an IPO is driven by employees departing to start-ups; we find no change in the rate of employee departures for established firms. We present evidence that, following an IPO, many employees who received stock grants experience a positive shock to their wealth which allows them to better tolerate the risks associated with joining a startup or to obtain funding. Our results suggest that the recent declines in IPO activity and new firm creation in the US may be causally linked. The recent decline in IPOs means fewer workers may move to startups, decreasing overall new firm creation in the economy. |
| Keywords: | Entrepreneurship ; Initial Public Offerings ; New Firms ; Wealth |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2017-22&r=ent |
| By: | Z.V. Kambourova; F.C. Stam |
| Abstract: | Recent research on cognitive biases in decision making suggests that over-optimism critically influences entrepreneurs’ decisions to establish and sustain new firms. This paper looks at entrepreneurs’ over-optimism during the early life course of the firm, in order to uncover the dynamics and persistence of over-optimism. We use a representative sample of start-ups in the Netherlands, which we divide into solo self-employed and employer firms. We find that while there is a persistence of over-optimism for the solo self-employed, namely initial over-optimist are more likely to be overoptimistic in subsequent periods; this is not the case for the employer firms. |
| Keywords: | over-optimism, entrepreneurship, learning, risk-propensity, biases, early life course of the firm, firm growth |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1614&r=ent |
| By: | Rachel Lock (Private Sector Development); Helen Lawton Smith (Birkbeck, University of London) |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:26&r=ent |
| By: | In Hwan JO; SENGA Tatsuro |
| Abstract: | Access to external finance is a major obstacle for small and young firms. Thus, providing subsidized credit to small and young firms is a widely used policy option across countries. We study the impact of such targeted policies on aggregate output and productivity and highlight indirect general equilibrium effects. To do so, we build a model of heterogeneous firms with endogenous entry and exit, wherein each firm may be subject to a forward-looking collateral constraint for external borrowing. Subsidized credit alleviates credit constraints facing small and young firms, which helps them achieve an efficient and larger scale of production. This direct effect, however, is either reinforced or offset by indirect general equilibrium effects. Factor prices increase as subsidized firms demand more capital and labor. As a result, higher production costs induce more unproductive incumbents to exit, while replacing them selectively with productive entrants. This cleansing effect reinforces the direct effect by enhancing the aggregate productivity. However, the number of firms in operation decreases in equilibrium, and this, in turn, depresses the aggregate productivity. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17017&r=ent |
| By: | OGANE Yuta |
| Abstract: | This paper examines the effects of main bank switching on the probability of small business bankruptcy by employing a propensity score matching estimation approach. We use a unique firm-level data set of more than 1,000 small and medium-sized enterprises (SMEs) incorporated in Japan; the firms are young and unlisted SMEs just after incorporation. We find that main bank switching increases the probability of firm bankruptcy. In addition, the result suggests that switching increases the probability of bankruptcy when firms switch to financial institutions with which they have not previously transacted. This result may be because such switching worsens the financial conditions of client firms. We also find that the result holds only when the ex-post main banks are not descendants of their ex-ante main banks. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17019&r=ent |
| By: | F.C. Stam; Ben Spigel |
| Abstract: | This paper reviews and discusses the emergent entrepreneurial ecosystem approach. Entrepreneurial ecosystems are defined as a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory. The purpose of this paper is to critically investigate the emerging literature on entrepreneurial ecosystems. Current work on ecosystems is underdeveloped, focusing more on superficial generalizations based on successful case studies such as Silicon Valley or Boulder, Colorado rather than on rigorous social science research. The paper provides a review of the multiple definitions of ecosystems found within the literature, and discusses the relationships between ecosystems and allied concepts such as industrial districts, clusters, and innovation systems. The paper concludes by discussing an integrative model that connects the functional attributes of entrepreneurial ecosystems (including framework conditions and systemic conditions) with entrepreneurial outputs and welfare outcomes. The framework conditions consist of the social (informal and formal institutions) and physical conditions enabling or constraining human interaction. Systemic conditions are the heart of the ecosystem and include networks of entrepreneurs, leadership, finance, talent, knowledge, and support services. |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1613&r=ent |
| By: | Milos Markovic (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Michael Stemmer (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Using a unique dataset of unlisted Serbian firms during the period between 2005 and 2012, we analyze the impact of internal financial constraints on firm growth with respect to several firm-level characteristics. We also assess potential effects created by the 2008-2009 Global Financial Crisis. To do so, we rely on panel data models, which estimate via GMM cash flow sensitivities of firm growth, following the dynamic specification of Guariglia et al. (2011). Controlling for investment opportunities, our results show that Serbian firms face high financial constraints and exhibit generally a high reliance on retained earnings for firm growth. We do not find evidence for a crisis effect, potentially due to ex ante accumulated internal funds. Conventional firm characteristics such as age, size or overall performance largely determine the dependency on cash for firm growth. Moreover, foreign-owned companies seem to escape the financing gap by tapping other resources. A comparison with Belgian firms contrasts our results with an advanced country setting. |
| Keywords: | Financial constraints,firm growth,transition countries,dynamic panel data,GMM |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01489222&r=ent |
| By: | Mary Anne Anderson; Samia Amin; Irma Perez-Johnson; Caroline Massad Francis |
| Abstract: | This brief describes early findings on the implementation of seed capital microgrants within the Self-Employment Training program. This pilot program tested strategies to support dislocated workers (unemployed and underemployed) who want to start their own businesses. |
| Keywords: | Self-Employment Training (SET), pilot program, dislocated workers, self-employment, unemployment, seed capital, microgrant, entrepreneurial training, microenterprise development, small business, entrepreneurship |
| JEL: | J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:1af8dc28b1524531a6421c18de5e6960&r=ent |
| By: | Samia Amin; Caroline Massad Francis; Irma Perez-Johnson |
| Abstract: | This brief describes early findings on the implementation of case management within the Self-Employment Training program, which was a pilot program testing strategies to support dislocated workers (unemployed and underemployed) who want to start their own businesses. |
| Keywords: | Self-Employment Training (SET), pilot program, dislocated workers, unemployed workers, self-employment, unemployment, case management, entrepreneurial training, microenterprise development, small business, entrepreneurship |
| JEL: | J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:6b7937fc014b481ab37b31690970ccf0&r=ent |
| By: | Caroline Massad Francis; Irma Perez-Johnson; Samia Amin; Mary Anne Anderson |
| Abstract: | This brief describes study participants in the Self-Employment Training program. This pilot program tested strategies to support dislocated workers (unemployed and underemployed) who want to start their own businesses. |
| Keywords: | Self-Employment Training (SET), pilot program, dislocated workers, self-employment, unemployment, entrepreneurial training, microenterprise development, small business, entrepreneurship |
| JEL: | J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:4bc5832321894c5e89ffaedcaa2184e2&r=ent |
| By: | Natalie Holden (Birkbeck, University of London) |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:27&r=ent |
| By: | Luísa Cagica Carvalho (Universidade Aberta and CEFAGE - Universidade de Évora, Portugal); Bruno Cibrão (Universidade Aberta, Portugal) |
| Abstract: | Nowadays there is a consensus on the importance that is given to entrepreneurship in the creation of wealth and employment in countries. In this context, entrepreneurship education is particular relevant. In fact, although there are currently several studies that investigates teaching methods of entrepreneurship in classroom, this subject continues understudied with regard to virtual classes where physical distance can difficult or even make impossible the use of some of the methodologies reported in several studies on this matter. Therefore this article gives some background on the notion of Digital Storytelling, enhancing its relevance to the development of entrepreneurial skills, taking into account their particularities and the appropriate technologies. It also presents a study on the application of this methodology in a virtual class of entrepreneurship at Universidade Aberta (Uab). The results of virtual class students’ perception on the use of Digital Storytelling in entrepreneurship teaching, suggests benefits in the use of this methodology. |
| Keywords: | Digital Storytellin; Empreendedorismo; Ensino Virtual; Metodologia. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2016_09&r=ent |
| By: | Francesco Aiello; Giuseppe Albanese; Paolo Piselli (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | This paper evaluates the impact of R&D public support on the innovation activities of a sample of Italian SMEs. Unlike most of the literature, the analysis focuses more deeply on the innovation output than on the innovation input. The innovation output is measured through patent data. By using a new data set obtained by combining information from EPO records and the Capitalia data set on Italian corporations, we find that publicly supported firms have similar patenting activity to other R&D performers, regardless of the type of policy tool used to foster innovation. However, as far as patenting is concerned, supported SMEs face higher R&D spending than others. |
| Keywords: | Patents, R&D policy support, SMEs |
| JEL: | O31 O38 L1 C21 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201702&r=ent |
| By: | HOSHINO Tadao; SHIMAMOTO Daichi; TODO Yasuyuki |
| Abstract: | Network formation is often characterized by homophily—the tendency that agents connect with others who have similar attributes. However, while most agents are homophilous, others may be heterophilous, namely, aiming to create ties with dissimilar agents. This study finds evidence supporting this hypothesis for the first time in the literature by applying random coefficient models to information-sharing network data for Vietnamese small and medium-sized enterprises (SMEs). One possible interpretation for this heterophily is that firms can obtain more useful and performance-improving information from those dissimilar—as opposed to similar—to themselves, as suggested by certain social network studies. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:17023&r=ent |
| By: | Lodefalk, Magnus (Örebro University School of Business); Tang, Aili (Örebro University School of Business) |
| Abstract: | We examine heterogeneous productivity effects of hiring top workers on small and medium-sized enterprises, using longitudinal employer-employee data. We find the productivity effect to be stronger for firms with higher absorptive capacity in terms of having a well-educated workforce, being in a knowledge-intensive industry or performing R&D. Technological laggards within an industry benefit more strongly from hiring top workers if their workforce is more well-educated. |
| Keywords: | recruitment; knowledge spillover; firm growth; productivity; SME; absorptive capacity |
| JEL: | D22 D24 D83 J24 J62 |
| Date: | 2017–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2017_002&r=ent |
| By: | Karbowski, Adam |
| Abstract: | In this work empirical studies (published in the time period 2001-2015) on R&D cooperation of firms are reviewed. In the empirical literature on R&D cooperation of firms the following research strands can be distinguished: (1) research on impact of R&D cooperation of firms on enterprise innovation, (2) research on characteristics of firms and markets conducive to formation of R&D cooperation in industry, (3) research on impact of knowledge spillovers on R&D cooperation of firms, and (4) research on impact of R&D cooperation on enterprise profitability. Empirical studies revealed a positive relationship between R&D cooperation and enterprise innovation, though the existence and strength of the indicated relationship depend heavily on the enterprise innovation measure selected by the authors of the research. The impact of (i) firm’s size, (ii) degree of market concentration, (iii) R&D intensity, and (iv) type of research performed by the enterprise on the probability of forming R&D cooperation is ambiguous. The analysis of relevant empirical studies indicates that knowledge spillovers incentivize firms to form R&D cooperation in the industry. The empirical literature further suggests that firms cooperating in R&D attain on average lower profit margins than firms competing in R&D. |
| Keywords: | R&D cooperation of firms, empirical studies |
| JEL: | O3 O31 O32 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77698&r=ent |
| By: | Yvon Pesqueux (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - CNAM - Conservatoire National des Arts et Métiers [CNAM]) |
| Abstract: | éco-conception, écologie industrielle, consommation collaborative, économie circulaire, économie contributive (ou économie de la contribution), économie coopérative, économie de la fonctionnalité, économie distributive, économie participative, économie positive, économie quaternaire, économie sociale et solidaire, économie symbiotique, économie verte, freeware, freemium, logiciel libre, matériel libre, FabLab, travail collaboratif, crowdfunding, innovation frugale, du modèle collaboratif comme business model, du business model circulaire, du business model symbiotique |
| Keywords: | formes d'organisation |
| Date: | 2016–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cel-01418994&r=ent |