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on Entrepreneurship |
| By: | Sari Pekkala Kerr; William R. Kerr; Tina Xu |
| Abstract: | We review the extensive literature since 2000 on the personality traits of entrepreneurs. We first consider baseline personality traits like the Big-5 model, self-efficacy and innovativeness, locus of control, and the need for achievement. We then consider risk attitudes and goals and aspirations of entrepreneurs. Within each area, we separate studies by the type of entrepreneurial behavior considered: entry into entrepreneurship, performance outcomes, and exit from entrepreneurship. This literature shows common results and many points of disagreement, reflective of the heterogeneous nature of entrepreneurship. We label studies by the type of entrepreneurial population studied (e.g., Main Street vs. those backed by venture capital) to identify interesting and irreducible parts of this heterogeneity, while also identifying places where we anticipate future large-scale research and the growing depth of the field are likely to clarify matters. There are many areas, like how firm performance connects to entrepreneurial personality, that are woefully understudied and ripe for major advances if the appropriate cross-disciplinary ingredients are assembled. |
| JEL: | D03 D81 D86 L26 M13 O3 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24097&r=ent |
| By: | Elisenda Jové-Llopis (Department of Economics – CREIP, Universitat Rovira i Virgili); Agustí Segarra-Blasco (Research Group of Industry and Territory, Universitat Rovira i Virgili) |
| Abstract: | This study investigates the effects of eco-strategies on firm performance in terms of sales growth in an extensive sample of 11,336 small and medium-sized enterprises (SMEs) located in 28 European countries. Our empirical results suggest that not all eco-strategies are positively related to better performance, at least not in the short term. We find that European companies using renewable energies, recycling or designing products that are easier to maintain, repair or reuse perform better. Those that aim to reduce water or energy pollution, however, seem to show a negative correlation to firm growth. Our results, also, indicate that high investment in eco-strategies improves firm growth, particularly in new members that joined the EU from 2004 onwards. Finally, we observe a U-shaped relationship between eco-strategies and firm growth, which indicates that a greater breadth of eco-strategies is associated with better firm performance. However, few European SMEs are able to either invest heavily or undertake multiple eco-strategies, thus leaving room for policy interventions. |
| Keywords: | eco-strategy, firm growth, Europe, SMEs |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2017-15&r=ent |
| By: | S. Roux; F. Savignac |
| Abstract: | This paper studies the divergence/convergence process of European countries as regard the financing behavior of small and medium sized enterprises. Using a firm level and country representative survey, we construct country-time indicators of SMEs’ use of three external financing sources: bank loans, credit line/overdraft and trade credit. These indicators account for composition effects and demand effects. We find substantial differences between countries in the SMEs’ use of the three financing sources. In particular, the cross-country differences related to SMEs’ use of bank loans have significantly increased over the period 2010-2014. This divergence is not related to a global increase in the volatility of this use between countries. Instead, it has been driven by a sharper increase (resp decrease) in the countries where SMEs’ use was initially higher (resp. lower). Finally, we investigate whether SMEs’ uses of financing sources are correlated at the country level with various macroeconomic and banking structure indicators. The results suggest that indicators about banking concentration are good candidates to explain the cross-country divergence of SMEs’ use of bank loans. |
| Keywords: | credit constraints, bank financing, trade credit, institutional factors. |
| JEL: | G31 G01 D22 C35 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:654&r=ent |
| By: | Jean Bonnet (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique); Sébastien Bourdin (Métis - Métis - Ecole de Management de Normandie); Fatten Gazzah (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2017–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01619798&r=ent |
| By: | Jean-Pierre Cling (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Mireille Razafindrakoto (LEDa - Université Paris Dauphine (Paris 9)); François Roubaud (LEDa - Université Paris Dauphine (Paris 9)) |
| Abstract: | This article sets out to investigate the reasons why some household businesses decide to register and become formal (while others do not) in order to shed light on the origins of informality. We use qualitative as well as quantitative data on household businesses (HB) derived from first-hand representative surveys implemented in Hanoi and Ho Chi Minh city. The study reveals that although most of the informal businesses operate ‘illegally’, this is more due to unclear registration legislation than the mark of a deliberate intention to evade the economic regulations.Among the different factors which influence the registration decisions, the reason for setting up the business appears to be a determining one: the more it is a real choice (businesses set up to be independent or to follow a family tradition) and the less a constraint (set up for lack of an job alternative), the more the HB is more inclined to be registered. Furthermore, the analysis highlights that incentives do prove decisive insofar as the probability of having a formal business is greater among HB heads who consider that registration provides at least partial protection from corruption. Besides, access to information, the market and large business orders also drive the informal entrepreneurs to register. These results stress the need for clarification of the legal framework as well as incentive policies in order to address the issue of informality. |
| Abstract: | Cet article se propose d'analyser les raisons pour lesquelles certaines unités de production (household businesses, HB) décident de s'enregistrer et de devenir formelles (et pourquoi d'autres ne le font pas) afin d'éclairer les origines de l'informalité. Nous mobilisons des données aussi bien quantitatives que qualitatives sur les HB, issues d'enquêtes représentatives et de première main conduite par nos soins à Hanoï et Ho Chi Minh ville. L'étude révèle que bien que la plupart des unités informelles opère "illégalement", ce trait procède plus d'une législation floue et méconnue que d'une volonté délibérée d'échapper aux régulations publiques. Parmi les différents facteurs qui jouent sur la décision de s'enregistrer, le motif qui a conduit à s'établir à son compte est déterminant : plus il s'agit d'un véritable choix (volonté d'échapper au salariat ou par tradition familiale) et moins il résulte d'une contrainte (manque d'alternative d'emploi), et plus le chef d'unité sera enclin à s'enregistrer. De plus, l'analyse met en évidence le rôle des incitations dans la probabilité de devenir formel. Ainsi, ceux qui considèrent que l'enregistrement protège (au moins partiellement) de la corruption sont plus nombreux à régulariser leur situation. Enfin, l'accès à l'information, aux marchés et aux commandes des grandes entreprises favorisent l'enregistrement. Ces résultats soulignent le besoin de clarification de la législation des entreprises ainsi que l'importance de politiques incitatives pour s'attaquer à la question de l'informalité. |
| Keywords: | Informal Sector,Vietnam,Registration,Corruption,Incentives |
| Date: | 2017–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-01664202&r=ent |
| By: | Hazarika, Bhabesh (National Institute of Public Finance and Policy) |
| Abstract: | There exists a noteworthy gender income gap in the micro-entrepreneurial activities, and typically the females earn lower than the males. While such gender income gap in wage employment is well-documented, the aspect needs attention in the context of the micro-entrepreneurship, particularly in the informal sector. It is important to analyze how differently the gender difference in endowments affect the income of the male and the female micro-entrepreneurs. The present study, based on primary data, analyses gender income gap and its compositions throughout the income distribution of the handloom micro-entrepreneurs in Assam. On an average, the female micro-entrepreneurs earn 51 percent lesser than their male counterpart. The unconditional quantile decomposition reveals that the gender income gap increases along the income distribution. The differences in the productive characteristics (endowment effects) explain much of the income gap at the median level and beyond than the heterogeneous returns to such characteristics (discriminatory effects). The endowment effects related to education, financial literacy, risk attitude, SHGs membership, and technology adoption are found in favor of the male micro-entrepreneurs. The results suggest that poor management of entrepreneurial activities of the female results in wider gender gap throughout the income distribution. The study urges for policy prescriptions towards dissemination of technological, financial, and managerial know-how to make the females more organized towards addressing the gender income gap. |
| Keywords: | Micro-entrepreneurs ; Handloom ; Gender ; Income Gap ; Unconditional Quantile Decomposition |
| JEL: | L26 L67 D13 D33 D63 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:17/216&r=ent |
| By: | Huu Chi Nguyen (Développement, Institutions & Mondialisation - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Christophe Jalil Nordman (Développement, Institutions & Mondialisation - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine, LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine) |
| Abstract: | Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. One first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on the business technical efficiency. The assumption is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realize a lower output than what could be possible with the same amount of resources. We find evidence of a productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We stress the importance of professional networks for successful entrepreneurship. |
| Abstract: | En utilisant un panel de microentreprises familiales au Vietnam, cet article met en relation le réseau social des entrepreneurs et de leur ménage avec la performance de la microentreprise familiale. Nous abordons deux questions connexes. La première examine la possibilité d'effets différenciés de l'emploi des membres de la famille par rapport à des travailleurs recrutés sur le marché du travail sur la performance de la microentreprise. Une deuxième question aborde les effets respectifs des différentes dimensions des réseaux sociaux sur l'efficience technique de la microentreprise. L'hypothèse testée est que, au-delà du canal de la productivité du travail, les entrepreneurs qui sont confrontés à un environnement social défavorable pourraient produire moins efficacement et réaliser une valeur ajoutée plus faible que ce qui pourrait être possible avec la même quantité de ressources. Nous montrons qu'il existe en effet un différentiel de productivité entre le travail familial et le travail recruté sur le marché, et nos résultats attestent de la présence d'effets défavorables du réseau social pour certains ménages gérant une microentreprise. Nous soulignons aussi l'importance des réseaux professionnels pour la réussite de l'entreprenariat familial. |
| Keywords: | Social network capital,Sharing norms,Informality,Household business,Vietnam,Family labour,Kinship and ethnic ties,Travail familial,Liens ethniques et de parenté,Normes de partage,Capital du réseau social,Informalité,Microentreprises familiales,Panel |
| Date: | 2017–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01619799&r=ent |
| By: | Christophe Nordman (LEDa - Université Paris Dauphine (Paris 9)); Julia Vaillant (Institut de Recherche pour le Développement (IRD)) |
| Abstract: | We use a representative sample of informal entrepreneurs in Madagascar to add new evidence on themagnitude of the gender performance gap. After controlling for business and entrepreneur characteristics, female-owned businesses exhibit a value added 28 percent lower than their male counterparts. Correcting for endogenous selection into informal self-employment raises the gap by 5 percentage points. We then investigate the role of sharing norms and gender-differentiated allocationof time within the household in the gender performance gap, by estimating their effect on the technicalinefficiency of female and male entrepreneurs. Only male entrepreneurs seem subject to pressure to redistribute from the distant network. Our findings are consistent with situations where women working at home would essentially feel negatively the burden of their own community due to intensesocial norms and obligations in their workplace but also of domestic chores and responsibilities. Wefind evidence of females self-selecting themselves into industries in which they can combine marketorientedand domestic activities. |
| Abstract: | Nous utilisons un échantillon représentatif d’entrepreneurs informels à Antananarivo, Madagascar, pour mesurer et expliquer l'existence d'un écart de performance entre les unités de production informelles dirigées par des hommes et celles dirigées par des femmes. Une fois pris en compte les niveaux des facteurs de production, de capital humain, le secteur d'activité, l'année et la sélection endogène dans l'entreprenariat, l'écart de valeur ajoutée entre les entreprises féminines et masculines est d’environ 33%, au détriment des femmes. Nous étudions ensuite l’impact différencié des normesde partages au sein de la communauté et de la répartition des tâches au sein du ménage sur la capacitédes hommes et des femmes entrepreneurs à atteindre leur frontière de production. Notre analyse suggère que seuls les entrepreneurs masculins sont sujets à la pression à la redistribution de la part duréseau distant. Pour les femmes, opérer une activité à domicile n’est pas un handicap en soi, mais celaagit plutôt comme un vecteur de transmission des effets négatifs des normes sociales et de répartition des tâches sur la gestion de l’entreprise. Nos résultats sont compatibles avec des situations dans lesquelles les femmes entrepreneures opérant une activité à domicile ressentiraient davantage le poids de leur propre communauté, sans doute à cause de normes de solidarité contraignantes, mais aussi à cause de leurs responsabilités domestiques. |
| Keywords: | Madagascar,Gender,entrepreneurship,informal sector,household composition,sharing norms |
| Date: | 2017–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01618238&r=ent |
| By: | Vojislav Maksimovic; Gordon M. Phillips; Liu Yang |
| Abstract: | Using U.S. Census data, we track firms at birth and compare the growth pattern of IPO firms and their matched always-private counterparts over their life cycle. Firms that are larger at birth with faster initial growth are more likely to attain a larger size and to subsequently go public. We estimate a model to predict the propensity to become public (“public quality”) using initial conditions. Firms in the top percentile of public quality grow 29 times larger than the remaining firms fifteen years later if they actually become public and 14 times larger if they stay private, showing a large selection effect for IPO status. Public firms respond more to demand shocks after their IPO and are more productive than their matched private counterparts. This effect is stronger in industries that are capital intensive and dependent on external financing. Overall, initial conditions predict firm growth trajectories, selection into public status and responsiveness to demand shocks. We find no evidence of public market myopia when matching by initial conditions. |
| JEL: | G3 G32 L2 L20 L22 L25 L26 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24104&r=ent |
| By: | Moschner, Sandra-Luisa; Herstatt, Cornelius |
| Abstract: | Prior research has shown that investing into startups through corporate venturing is a sufficient tool for inter-organizational learning, harvesting innovation and engaging in entrepreneurial activities. Recently, a new model of open innovation collaboration between incumbents and startups has gained popularity in practice. In corporate accelerator programs both partners collaborate to advance entrepreneurial products by leveraging their complementary resource bases. In our study we, firstly, analyze the underlying external and internal motives that impel established firms to initiate a corporate accelerator and, secondly, which personnel is responsible for this. Further, we examine the adoption of the corporate accelerator practice for collaborating with new firms. In order to shed light onto the phenomenon, we use interview data from ten corporate accelerators (30 interviews with program managers, corporate employees and startups) from various industries in Germany. By drawing on institutional theory our findings show that the diffusion of the open innovation collaboration practice is either imitatively or normatively driven, depending on the position of the initiator. Further, we demonstrate, that incumbents adopt a corporate accelerator program for sourcing external exploitative or explorative knowledge. However, the degree of adoption of the practice is low and, thereby, not internalized. Although the corporate accelerator has still a short history and many programs follow a trial-and-error approach regarding program structures, established firms seem not to be interested primarily in promoting the collaborative usage of complementary assets with startups. It resembles a rather symbolic action utilizing open innovation collaboration as a marketing tool to let the incumbent's innovation activity glitter more. Therefore, we conclude that established firms seem to practice entrepreneurial washing with corporate accelerators similarly to green-washing activities in the field of corporate social responsibility. |
| Keywords: | corporate accelerator,open innovation collaboration,incumbent,startups,complementary resources,degree of adoption,symbolic action |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:102&r=ent |