nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒04‒09
six papers chosen by
Marcus Dejardin
Université de Namur

  1. Capital market financing, firm growth, and firm size distribution By Tatiana Didier; Ross Levine; Sergio L. Schmukler
  2. Truth and consequences: Bogus pipeline experiment in informal small business lending By Römer, Ulf; Weber, Ron; Mußhoff, Oliver; Turvey, Calcum G.
  3. The Nexus Between Informal Credit and Informal Labor for Micro and Small Enterprises in Egypt: Sources of Finance and Enterprises Informality: Evidence from MSE Surveys in Two Governorates By Mohamed El Komi; Mona Said
  4. Public R&D support in Italy. Evidence from a new firm-level patent data set By Aiello, Francesco; Albanese, Giuseppe; Piselli, Paolo
  6. Unternehmerisches Verhalten im Zuge der Unternehmensnachfolge By Pahnke, André; Kay, Rosemarie; Schlepphorst, Susanne

  1. By: Tatiana Didier; Ross Levine; Sergio L. Schmukler
    Abstract: How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution (FSD)? To evaluate these questions, we construct a new dataset by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. Three main patterns emerge from the analysis. (1) Only a few large firms issue equity or bonds, and among them a small subset has raised a large proportion of the funds raised during the 1990s and 2000s. (2) Issuers grow faster than non-issuers in terms of assets, sales, and employment, i.e., firms do not simply use securities markets to adjust their financial accounts. (3) The FSD of issuers evolves differently from that of non-issuers, tightening among issuers and widening among non-issuers. JEL Classification: F65, G00, G10, G31, G32, L25
    Keywords: access to finance, bond markets, capital market development, capital raisings, firm dynamics, firm financing, stock market
    Date: 2016–03
  2. By: Römer, Ulf; Weber, Ron; Mußhoff, Oliver; Turvey, Calcum G.
    Abstract: The prevention of asymmetric information plays a major role in successful small business lending. The purpose of this research is to determine if small business applicants report their income information correctly when requesting a loan. Therefore, a randomized controlled trial bogus pipeline experiment was set up during a typical cash-flow analysis of a bank for small businesses in the Philippines. Results indicate that loan applicants of the treatment group reported a lower income, an effect which is most pronounced in the lowest income percentile. Moreover, our analyses reveal higher loan delinquencies in the control group.
    Keywords: Small business finance,Income reporting,Asymmetric information,Bogus pipeline,Randomized controlled trial
    Date: 2017
  3. By: Mohamed El Komi (Durham University); Mona Said (American University in Egypt)
    Abstract: As a result of the economic meltdown in 2008, the hardest hit sector of the economy was the micro and small enterprises (MSE’s) sector. MSEs’ access to formal finance has been facing increasing restrictions, due to the adoption of more cautious lending strategies by both public and private banks. Hence, MSEs in Egypt still heavily rely on informal credit to finance their operations. This paper identifies the linkages between different sources of finance and their impact on informality of MSEs based on small scale surveys on credit and labor use in household businesses in villages in two governorates in Egypt. Preliminary analysis of this new data confirms that relying on self-finance is associated with increased informality of the surveyed enterprises in both governorate subsamples, whereas access to formal loans is associated with formalization through enterprise registration in non-agricultural enterprises surveyed in one of the governorates. These results provide preliminary evidence that policies that enhance access to formal credit and attempts to formalize informal sources of credit, such as RoSCAs, are likely to impact MSE’s formalization positively in Egypt.
    Date: 2017–03–30
  4. By: Aiello, Francesco; Albanese, Giuseppe; Piselli, Paolo
    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: C21 L1 O31 O38
    Date: 2017–03–27
  5. By: Širůček, Martin; Čajka, Ondřej
    Abstract: This paper is dedicated to venture capital as a way of company funding in IT sector. The aim of the thesis is to analyze and evaluate an impact of using venture capital financing on selected businesses (IT companies in Czech Republic) according to changes in selected indicators financial analysis. The evaluation is provided also by using alternative indicators. Literature review focuses on the ways of company funding, description of the current venture capital trend and its history. Empirical analysis evaluate the influence of venture capital is examined by selected financial analysis indices, bankruptcy models, and alternative indicators recommended by investors themselves. The results of this thesis are stated in conclusion where they are also discussed and compared with other studies conducted on this topic.
    Keywords: alternative sources, business financing, financial indicators, investment, private equity, venture capital.
    JEL: G24 G34
    Date: 2016
  6. By: Pahnke, André; Kay, Rosemarie; Schlepphorst, Susanne
    Abstract: Die vorliegende Studie untersucht auf Basis von Daten des IAB-Betriebspanels das unternehmerische Verhalten vor und nach der Übergabe und wie sich dieses Verhalten auf die wirtschaftliche Situation der Unternehmen auswirkt. Dabei greifen die Analysen auf die Annahmen der Investitionsstau- und der Wachstumsimpulshypothese zurück. Mit Heranrücken der geplanten Übergabe werden einige Maßnahmen wie die Investitionstätigkeit, die Weiter-bildungsförderung der Mitarbeiter oder FuE-Aktivitäten in zunehmend geringerem Ausmaß ergriffen. Zugleich zeigen sich die neuen Eigentümer in manchen Bereichen wie der Aus- und Weiterbildungsbeteiligung und der Investitionstätigkeit aktiver, in anderen wie Prozessinnovationen hingegen weniger aktiv. Diese betrieblichen Maßnahmen stehen überwiegend jedoch in keinem unmittelbaren Zusammenhang mit dem Übergabeereignis selbst. Auch ist kein systematisches Verhalten zu erkennen, das die beobachtete Umsatz- und Beschäftigungsentwicklung nach dem Eigentümerwechsel erklärt.
    Keywords: Familienunternehmen,Unternehmensnachfolge,Wachstum,Investitionen,family businesses,business succession,growth,investments
    JEL: L25 L26 M2
    Date: 2017

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