nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒07‒09
seven papers chosen by
Marcus Dejardin
Université de Namur

  1. New firms’ bankruptcy: does local banking market matter? By Giuseppe Arcuri; Maurizio La Rocca; Nadine Levratto
  2. Feminization of entrepreneurship in developing countries? Evidence from GEM data By Jorge, Velilla
  3. Necessity or opportunity? the effects of State fragility and economic development on entrepreneurial efforts rights: a stochastic frontier index By José Ernesto Amorós Espinosa; Luciano Ciravegna; Vesna Mandakovic; Pekka Stenmolm
  4. Mobile Phone Innovation and Entrepreneurship in Sub-Saharan Africa By Simplice Asongu; Nicholas Biekpe
  5. Pre- and post-award outsourcing: Temporary partnership versus subcontracting in public procurement By Laura Rondi; Paola Valbonesi
  6. Why growth rates differ? Path of innovation in Italian provinces. By Michele Capriati; Marialuisa Divella
  7. Development of SME Competitiveness Using IoT in the Fourth Industrial Revolution (Japanese) By IWAMOTO Koichi; HATANO Aya

  1. By: Giuseppe Arcuri; Maurizio La Rocca; Nadine Levratto
    Abstract: This paper investigates the role of local context, with regard to the effect of local financial development and banking concentration, on a new firm’s probability of bankruptcy. Our empirical setting is based on the Logit Multilevel Model that better allows the treatment of data referring to different levels of aggregation (firm and local variables) applied to new firms located in Italian provinces. We find that a higher level of financial development in a province decreases the likelihood of a new firm’s bankruptcy. This result is robust considering a 2SLS regression in which we use instruments for the local financial development and for the concentration of bank branches. In addition, our estimations suggest that the effect of local financial development and bank concentration is shaped by size. Local financial development is particularly significant for small start-ups, which traditionally suffer from great difficulty in accessing credit, whereas local banking concentration reduces the probability of bankruptcy for large, new firms.
    Keywords: Probability of bankruptcy, new firms, multilevel model, local banking structure
    JEL: C26 C30 M13 R11
    Date: 2017
  2. By: Jorge, Velilla
    Abstract: Certain analyses have studied gender differences in entrepreneurial activity, but, in general, the lack of specific controls may have led to biased results. In this paper, we analyze whether male or female individuals have a higher probability of becoming entrepreneurs in developing regions (Eastern Europe, Latin America and the Caribbean, South-East Asia, and Africa). Using GEM data from 2009 to 2014, we avoid the potential confounding problems arising from the definition of entrepreneurship. We find that the descriptive statistics show constant gender gaps in entrepreneurial activity in favor of males, for all the regions. However, when individual and environmental entrepreneurial characteristics are taken into account, these gaps diminish significantly in Eastern Europe, disappear in Asia and Africa, and are reversed in Latin America.
    Keywords: Gender; Feminist; Entrepreneurship; Developing countries; GEM Data
    JEL: L26
    Date: 2017–07–03
  3. By: José Ernesto Amorós Espinosa; Luciano Ciravegna; Vesna Mandakovic; Pekka Stenmolm (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the level of economic development moderates the relationship between state fragility and necessity-driven entrepreneurial efforts reducing the likelihood of the latter. We discuss the implications for theory and for pro-entrepreneurship policy
    Keywords: Entrepreneuship, State fragility, Economic development
    Date: 2017–06
  4. By: Simplice Asongu (Yaoundé/Cameroun); Nicholas Biekpe (Cape Town, South Africa.)
    Abstract: This study assesses how knowledge diffusion modulates the effect of the mobile phone on entrepreneurship in Sub-Saharan Africa with data for the period 2000-2012.The empirical evidence is based on interactive Generalised Method of Moments in which mobile phones are interacted with three knowledge diffusion variables, namely: education, internet penetration and scientific output. Ten variables of entrepreneurship are used. The following three main findings are established. First, the net effects from interacting mobile phones with the internet and scientific publications are negative whereas the corresponding net impact from the interaction between mobile phones and education is positive on the cost of doing business. Second, the mobile phone interacts with education (the internet) to have a positive (negative) net effect on the time needed to construct a warehouse whereas, the corresponding interaction with the internet yields a net negative effect on the time to enforce a contract. Third, there is a positive net effect from the interaction of mobile phones with education on the time to start a business. Given the construction of the education variable, the positive net effects from education are consistent with corresponding negative net effects from the other knowledge diffusion variables. The main policy implication is that mobile phone innovation (by means of internet penetration, scientific output and quality education) decreases constraints of entrepreneurship. Suggestions on how to boost these knowledge diffusion channels are discussed. Other practical and theoretical implications are also covered. To the best our knowledge, this is the first inquiry to assess the relevance of mobile phone innovation in entrepreneurship in Sub-Saharan Africa.
    Keywords: Entrepreneurship; the Mobile Phone; Knowledge Diffusion; Sub-Saharan Africa
    JEL: L59 L98 O10 O30 O55
    Date: 2017–05
  5. By: Laura Rondi (Politecnico di Torino); Paola Valbonesi (University of Padova)
    Abstract: This paper studies the impact of qualification rules for entry into public procurement auctions on firm bids and contract execution, contributing to the debate about which regulations foster the efficient participation of small and medium enterprises (SMEs). Using rich and detailed microdata on all public work contracts awarded by the regional government of Valle d’Aosta from 2000 to 2008, we investigate the differences between pre-award outsourcing by temporary partnerships (TPs) and post-award outsourcing by firms in optional or mandatory subcontracting. We find that both outsourcing status and firm size affect bids and the probability of time and cost overruns. TPs bid lower prices than mandatory and large optional firms and perform well in contract execution, similar to small optional firms. Mandatory firms are more likely to exceed expected cost and are no better in timely delivery. The evidence holds when we disentangle horizontal and vertical subcontracting. Our results highlight the TPs’ advantage of freedom in choosing economic size and technical boundaries before entering the auction.
    Keywords: Public procurement, Regulation on entry, Vertical and horizontal subcontracting/outsourcing, SMEs, Temporary consortium, Supply chain.
    JEL: H57 L23 L24 D44
    Date: 2017–06
  6. By: Michele Capriati (Università degli Studi di Bari Aldo Moro); Marialuisa Divella (Università degli Studi di Bari Aldo Moro)
    Abstract: This paper analyses the way in which innovation and absorptive capacity affect the productivity of Italian provinces. It builds on the Neo-Schumpeterian literature which investigates how technology gaps explain development disparities between countries and regions. The study is carried out at the provincial level, which allows a more fine-tuned analysis of the resource endowment linked to knowledge generation and economic performance. Moreover, it distinguishes between two very different types of innovation: those directly dependent on R&D and new knowledge generation which are generally measured by the number of patents; and those relying on the adaptation of processes, products and materials and thus mostly based on the exploitation of already existing knowledge, which are here measured by a new index based on registered utility models and industrial designs. Main results indicate a case of divergence in productivity levels instead of one of catching up among the Italian provinces; moreover, they suggest that the main effort to get productivity gains in this country has been carried out through a reduction of employment and of its related costs instead of via increasing R&D and human capital.
    Keywords: innovation, patents, utility models, industrial designs, provinces, proximity
    Date: 2017
  7. By: IWAMOTO Koichi; HATANO Aya
    Abstract: This paper describes the results of a study group which I held to look at the development of small and medium enterprises (SME) competitiveness using the Internet of Things (IoT) in 2016 and of related research. In Japan, it is rare to find complete IoT systems introduced in the production process of SMEs. The simple reason is that SME managers do not understand IoT, which can have two interpretations. The first one is the managers do not understand the complex technology. The second one is they do not understand the merits of the technology for their own companies. The study group adopted four SMEs as model cases, and fully conducted a trial and error process from the beginning of discussions to the introduction of IoT, which aims to have all SME managers consider this issue as their own matter. The discussions of the study group focused on the SMEs'production process.
    Date: 2017–06

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