nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒06‒11
four papers chosen by
Marcus Dejardin
Université de Namur

  1. The Impact of Bank Expansion on Self-Employed Business Owners: Evidence from US States By Anindo Sarker; Bulent Unel
  2. Entrepreneurship and policy dynamics: a theoretical framework By Trofimov, Ivan
  3. Can Efficient Provision of Business Development Services Bring Better Results for SMEs?: Evidence from a Networking Project in Thailand By Suzuki, Aya; Igei, Kengo
  4. Creating good conditions for innovation-driven productivity gains in Australia By Philip Hemmings; Taejin Park

  1. By: Anindo Sarker; Bulent Unel
    Abstract: We use state-level bank branch deregulations to study the impact of changes in credit on entrepreneurship at the individual-owner level. We classify self-employed individuals into incorporated and unincorporated business owners. Exploiting the variation in the staggered timing of banking deregulations, we find that branching reforms affected the entry and exit rates of the incorporated self-employed. Further, the branching reforms encouraged unincorporated businesses to incorporate. Finally, the effects of reforms are different across groups based on gender, race, and age. We find stronger effects on incorporated business creation among minorities, and higher exit rates among the young and minorities.
  2. By: Trofimov, Ivan
    Abstract: This paper examines the current state of entrepreneurship theory in the public domain and proposes a theoretical framework applying the concepts of entrepreneurship developed by I. M. Kirzner and J. A. Schumpeter in the field of economics to the field of public policy. A distinction is made between political and policy entrepreneurship. Three generic policy entrepreneurship functions (policy leadership, innovation and coordination) which are performed by specific means by a variety of actors scattered across the policy system, are identified. It is shown that these entrepreneurial functions can provide a complete explanation of adjustments taking place during policy regime formation (including agenda setting and policy negotiation). It is postulated that during this process (denoted as policy equilibration), the complementarity of entrepreneurship functions is essential. The paper also considers possible exercise of policy entrepreneurship functions in the trade policy domain and examines what actors can act as entrepreneurs.
    Keywords: Entrepreneurship; trade policy; agenda setting
    JEL: D78 F13 L26
    Date: 2017
  3. By: Suzuki, Aya; Igei, Kengo
    Abstract: Recent systemic reviews on the impact of business development services (BDS) on small and medium enterprises (SMEs) reveal mixed effects on various outcomes. For example, the effects on improving skills or practices are often found to be positive while those on employment creation are modest and those on financial outcomes are weak. While there are many BDS providers in developing countries, SMEs’ BDS usage is still very low. Studies have attributed this to reasons such as a lack of information about BDS, a shortage of credits, and the limited availability of BDS. However, most of the existing literature focuses on impacts of demand-side interventions, and empirical evidence about BDS providers is still lacking. We focus on the supply-side constraints of BDS. We take a case from Thailand in which the government, in collaboration with the Japan International Cooperation Agency, implemented a project to establish a formal network among the existing BDS providers with the aim of enhancing their effectiveness in supporting the SMEs. Using the primary data of SMEs and BDS providers, we find that the BDS providers in project provinces increased their interaction with SMEs and improved their BDS practices. SMEs’ network and interactions with BDS providers also increased. We also find some positive evidence that SMEs have more contracts and more certified products on average, and provincial heterogeneous impacts on increasing profits and the percentage of domestic sales in some provinces. These together suggest that networking BDS providers improves the performances of both BDS providers and SMEs. A policy implication follows that an efficient delivery of public services can bring tangible results.
    Keywords: SME,BDS,network,impact evaluation,Thailand
    Date: 2017–03
  4. By: Philip Hemmings (OECD); Taejin Park
    Abstract: Innovation is key to boosting Australia’s productivity and inclusiveness. This paper examines the policies that create good conditions for innovation, not only in science and technology but also wider forms, such as business-model innovation. Competition and flexible markets are particularly important in the Australian context. Also there is room to improve the environment for firm entry and exit, and intellectual property arrangements. However, the returns to public spending on Australia’s numerous innovation-related SME support schemes are uncertain. Federal and state governments are taking a positive approach to the new wave of “disruptive” service-sector innovations, such as those underway in personal transport, accommodation, legal and financial services. Harnessing the full benefits of today's innovation requires household and business have access to high-speed ICT; and there is room for improvement on this front in Australia. In education, Australia’s STEM-oriented strategy could be strengthened. Innovation in public-services should receive considerable attention as this can raise aggregate productivity and improve living standards.
    Keywords: competition, firm dynamics, ICT, intellectual property, public sector, SME
    JEL: O30 O31 O33 O34 O38 O56
    Date: 2017–06–08

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