nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒06‒18
seven papers chosen by
Marcus Dejardin
Université de Namur

  1. Personal Bankruptcy Law and Entrepreneurship By Geraldo Cerqueiro; María Fabiana Penas; Robert Seamans
  2. Founders f human capital and external knowledge sourcing: An absorptive capacity perspective for innovative start-ups By Masatoshi Kato
  3. Collaborative Innovation: Creating Opportunities in a Changing World By van de Vrande, V.J.A.
  4. What is the Business of Business? By Andreas Nilsson; David T. Robinson
  5. European SME policy: Recommendations for a growth-oriented agenda By Röhl, Klaus-Heiner
  6. Capital Investment Decisions of Micro, Small and Medium Enterprises: The Case of Digos City By Relativo, Jona Princess; Sumayang, Mildred; Diasana, Sarah Jean; Murcia, John Vianne
  7. Das Zukunftspanel Mittelstand 2017 - Update einer Expertenbefragung zu aktuellen und zukünftigen Herausforderungen des deutschen Mittelstands By Kranzusch, Peter; May-Strobl, Eva; Levering, Britta; Welter, Friederike; Ettl, Kerstin

  1. By: Geraldo Cerqueiro; María Fabiana Penas; Robert Seamans
    Abstract: We study the effect of debtor protection on firm entry and exit dynamics. We find that more lenient personal bankruptcy laws lead to higher firm entry, especially in sectors with low entry barriers. We also find that debtor protection increases firm exit rates and that this effect is independent of firm age. Our results overall indicate that the wealth insurance provided by personal bankruptcy exemptions induce individuals to embrace entrepreneurship and that this in turn fosters competition in a Schumpeterian sense.
    Keywords: Debtor Protection, Personal Bankruptcy, Entrepreneurship.
    Date: 2017–01
  2. By: Masatoshi Kato (School of Economics, Kwansei Gakuin University)
    Abstract: This study explores the role of founders f human capital in determining the external knowledge sourcing (licensing-in and joint R&D) of a firm during the start-up period using panel data drawn from original questionnaire surveys conducted in Japan. The results of a probit model with an endogenous regressor show that firms managed by founders with a high level of specific human capital, measured as prior work experience in a related field or as technological experience, tend to engage in external knowledge sourcing because of their absorptive capacity. The findings indicate that this type of human capital also promotes R&D investment. Contrariwise, this study finds that firms managed by founders with a high level of general human capital, measured as educational attainment, tend to invest more in R&D as an absorptive capacity-building activity, which may promote external knowledge sourcing. The implications of these findings are discussed from the perspective of economic policy.
    Keywords: Start-up, Founder, General human capital, Specific human capital, R&D investment, External knowledge sourcing.
    JEL: M13 L26 O32
    Date: 2017–06
  3. By: van de Vrande, V.J.A.
    Abstract: Today’s business environment is characterised by fast and frequent change, which is often difficult to predict. As a consequence, companies need to continuously invest in the development of new business to remain competitive. However, due to the increasing complexity of the environment, internal development is often not enough, and collaborative innovation is becoming more important. There are three areas that warrant our attention. First, interest among employees and organisations to pursue entrepreneurial initiatives raises questions around the management and support that is needed to foster these initiatives and how to best organise internal corporate venturing. Second, the increasing number of start-ups provides opportunities for existing companies to tap into emerging technologies and business areas through corporate – start-up collaboration. Third, the changing nature of work provides an opportunity for existing organisations to rethink the relationship they have with their employees and to find a way to benefit from the increased flexibility of their own and other’s workers. I will raise a number of research questions in these areas and provide directions for future research in the field.
    Keywords: Entrepreneurship, Corporate venturing, Corporate venture capital, Collaboration, Innovation, Coworking, Start-ups
    JEL: M D21 L20 O31
    Date: 2017–06–02
  4. By: Andreas Nilsson; David T. Robinson
    Abstract: This paper develops a simple framework for understanding the emergence of new organizational forms, such as socially responsible firms and social entrepreneurs, that embody the private sector's efforts to resolve problems that typically have been within the purview of government and traditional public charities. We consider organizations that can generate both financial and social returns. Differences in the technologies between the for-profit sector and the social sector give rise to comparative advantages and play a key part in the analysis. This allows us to analyze the conditions under which hybrid organizations emerge in place of traditional charities and profit-maximizers.
    JEL: G3 G32 G38 H44 M14
    Date: 2017–06
  5. By: Röhl, Klaus-Heiner
    Abstract: The economic policy of the European Union influences the almost 23 million small and medium-sized companies in the 28 Member States in a variety of ways. Yet, there exists no coherent EU policy on small and medium-sized enterprises. With the Small Business Act of 2008, small and medium-sized enterprises received greater attention, but this primarily applies to start-ups and small companies. As a result of the European debt crisis, start-ups and established small and medium-sized companies have returned into focus for policy-makers in Brussels. They hope that SMEs create more jobs and growth. Despite this, the concerns of SMEs are still not at the heart of economic policy and regulation. That is also clear when looking at the EU budget and its high agricultural expenditures. It is particularly problematic that larger family companies with over 250 employees or a turnover of 50 million euro are regarded as large companies. They are treated in the same way as big corporations. A better targeted EU policy on SMEs should reduce red tape for companies and include family companies that have grown beyond the defined SME thresholds. Additionally, it should recognise medium-sized industrial enterprises as key partners in implementing the objective of reinvigorating European industry by 2020.
    Date: 2017
  6. By: Relativo, Jona Princess; Sumayang, Mildred; Diasana, Sarah Jean; Murcia, John Vianne
    Abstract: This paper examined the capital investment decisions of micro, small and medium enterprises, with the aim of assessing its current levels and its conditions across industries in Digos City. Questionnaires measuring the four phases of capital investment decisions were administered to a stratified random sample of 125 owners or managers of micro, small and medium enterprises while further in-depth interviews were done to extract explanatory factors of capital investment decisions that were not accounted in the quantitative phase. Non-parametric test of association revealed no significant association of capital investment decisions and nature of industry being engaged by MSME owners/managers. Pearson r correlation test revealed that generation of investment opportunities, project analysis and approval, and post-implementation audit have significant relationship with years of operation. Further qualitative analysis of interviews revealed that the influential factors affecting financing decisions of MSME’s owners include sources of finances, entrepreneurs’ prior experiences, business trends, and diversification of investments.
    Keywords: capital investment decision, MSME, sequential-explanatory design, Digos City, Philippines
    JEL: D81 G31 L25 L26 M14 M2 M21
    Date: 2016–07–12
  7. By: Kranzusch, Peter; May-Strobl, Eva; Levering, Britta; Welter, Friederike; Ettl, Kerstin
    Abstract: Die Digitalisierung hat sich zu einer Herausforderung für den Mittelstand in vielen Bereichen entwickelt. Zu diesem Ergebnis kommt die jüngste Expertenbefragung für das Zukunftspanel Mittelstand 2017. Neben der digitalen Transformation, die grundlegende strategische Maßnahmen erfordert, sehen die Experten weitere Herausforderungen, insbesondere in den Handlungsfeldern Innovations-/Wettbewerbsfähigkeit, Internationalisierung unter Unsicherheit und Sicherung des Unternehmensbestandes. In Folge dessen wird auch die Mittelstandspolitik zukünftig in stärkerem Maße andere Politikfelder miteinbeziehen müssen: Neben der mittelstandsspezifischen Rahmensetzung gehören hierzu sind die Ordnungspolitik, Bildungspolitik, Regionalpolitik sowie Arbeitsmarkt- und Migrationspolitik.
    Keywords: Mittelstand in Deutschland,Mittelstandsforschung,Mittelstandspolitik,KMU-Politik,German Mittelstand,Mittelstand Research,Entrepreneurship Research,Mittel-stand policy,SME policy
    JEL: L20 L26
    Date: 2017

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