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on Entrepreneurship |
| By: | Bjuggren, Carl Magnus (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This paper investigates career choices of women who marry high-income men. We find that women married to men in the top of the income distribution are more likely to enter self-employment, which is also associated with a lower income. This can be interpreted as a career choice that produces a more flexible work schedule in return for lower income. In a Nordic welfare state where work is the norm for women, self-employment offers a way to avoid the stay-at-home stigma. It allows one to stay in the workforce while enjoying approval from society and being in control of one’s work schedule and personal demands. |
| Keywords: | Career choice; Entrepreneurship; Marriage; Self-employment; Women |
| JEL: | J12 J13 J16 J22 L26 |
| Date: | 2018–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1200&r=ent |
| By: | Ryan Decker; John Haltiwanger; Ron S. Jarmin; Javier Miranda |
| Abstract: | The pace of job reallocation has declined in all U.S. sectors since 2000. In standard models, aggregate job reallocation depends on (a) the dispersion of idiosyncratic productivity shocks faced by businesses and (b) the marginal responsiveness of businesses to those shocks. Using several novel empirical facts from business microdata, we infer that the pervasive post-2000 decline in reallocation reflects weaker responsiveness in a manner consistent with rising adjustment frictions and not lower dispersion of shocks. The within-industry dispersion of TFP and output per worker has risen, while the marginal responsiveness of employment growth to business-level productivity has weakened. The responsiveness in the post-2000 period for young firms in the high-tech sector is only about half (in manufacturing) to two thirds (economy wide) of the peak in the 1990s. Counterfactuals show that weakening productivity responsiveness since 2000 accounts for a significant drag on a ggregate productivity. |
| Keywords: | Dynamism ; Entrepreneurship ; Job reallocation ; Labor supply and demand ; Productivity |
| JEL: | J23 D22 O47 E24 D24 L26 M13 |
| Date: | 2018–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2018-07&r=ent |
| By: | Hvide, Hans K |
| Abstract: | We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers' industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers.Third, an entrepreneur that starts a firm in the same 5-digit industry as where his father was employed tends to outperform entrepreneurs in the same industry whose fathers did not work in that industry. We consider various explanations for these facts and conclude that "dinner table human capital", where children obtain industry knowledge through their parents, is an important factor behind what type of firm is started and how well it performs. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12608&r=ent |
| By: | Jain, Rajesh; Mendonca, Valerie; Vohra, Neharika; Sharma, Supriya |
| Abstract: | From a neoclassical economics perspective, entrepreneurship involves rational decision-making and entrepreneurs engage in rational, goal-driven behavior. However, such a view is put to test in current, dynamic business environments characterized by high level of uncertainty. Expert entrepreneurs adopt a nimble, iterative and effectual approach to be able to navigate such dynamic environments. While there is growing confidence about the desirable outcomes of an effectual logic, there is limited evidence based understanding of how such a logic is perceived by stakeholders in the entrepreneurial ecosystem. For instance, how do investors assess causal vs. effectual logics of entrepreneurs? This study attempts to pursue this question. We use data from a national level entrepreneurship competition held in India in 2015 to understand the influence of entrepreneurs’ logics on their funding outcomes. We find that the logics of the selected and not selected entries are significantly distinct. Furthermore, results from a binary logistic regression reveal an inclination of investors towards causal logic. Adoption of causal logic increases a startup’s chances of funding by about 50%. Findings are discussed in reference to implications for the current entrepreneurship ecosystem. |
| Date: | 2018–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14587&r=ent |
| By: | Chiara Burlina |
| Abstract: | This study investigates a particular type of network, the inter-firm network (IFN), and its impact on performances of Italian firms between 2010-2015. After revising the literature on alliances and networks for what concerns the geographical and industrial dimension, I focus my attention on networks’ performance and innovation propensity. The empirical analysis, based on a sample of about 4,000 firms, is divided in two parts: firstly, applying a “differencein- difference” technique, is tested the impact of being in an IFN; secondly, focusing on year 2013, are measured the different effects of IFN characteristics. Results demonstrate that belonging to an IFN has a positive impact on firms’ growth. Moreover, industry heterogeneity of members and internationalisation scope (rather than innovation) turn out to be the main factors increasing firm’s profitability and economic growth. |
| Keywords: | Inter-firm network, Alliances, Performance, Difference-in-Difference, Innovation. |
| JEL: | C3 L25 P25 R12 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0216&r=ent |
| By: | Michele Cincera; Gilles Eric Fombasso Toyem |
| Abstract: | While the benefits of innovative activities are universally acknowledged, current research on how and when governments should intervene to assist firms still has substantial knowledge gaps. In this paper, we consider two forms of government intervention, namely EUREKA network and cluster technological collaborative projects, and assess their impact on the performance of beneficiary firms over the period 2005-2015. The methodology implemented consists in comparing the beneficiaries of projects (which are typically R&D SMEs) with a similar control group, using the difference-in-differences estimation technique. We find that beneficiaries of both network and cluster projects have created on average more jobs and have increased their sales more than non-funded firms over the period of study. We also find that smaller R&D consortia (i.e. network projects) have a positive and greater influence in terms of commercialisation, whereas bigger consortia (i.e. cluster projects) have a positive and greater influence in terms of employment growth. In general, projects of shorter duration (i.e. from one to two years) are those showing the best outcomes compared to projects of longer duration (i.e. from three to seven years). |
| Keywords: | EUREKA programme, R&D SMEs, Counterfactual analysis, Diff-in-diff estimation, Employment growth, Turnover growth |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/267672&r=ent |
| By: | Cornille, David; Rycx, François; Tojerow, Ilan |
| Abstract: | This paper takes advantage of access to detailed matched bank-firm data to investigate whether and how employment decisions of SMEs have been affected by credit constraints in the wake of the Great Recession. Variability in banks’ financial health following the 2008 crisis is used as an exogenous determinant of firms’ access to credit. Findings, relative to the Belgian economy, clearly highlight that credit matters. They show that SMEs borrowing money from pre-crisis financially less healthy banks were significantly more likely to be affected by a credit constraint and, in turn, to adjust their labour input downwards than pre-crisis clients of more healthy banks. These results are robust across types of loan applications that were denied credit, i.e. applications to finance working capital, debt or new investments. Yet, estimates also show that credit constraints have been essentially detrimental for employment among SMEs experiencing a negative demand shock or facing strong product market competition. In terms of human resources management, credit constraints are not only found to foster employment adjustment at the extensive margin but also to increase the use of temporary layoff allowances for economic reasons. This outcome supports the hypothesis that short-time compensation programmes contribute to save jobs during recessions. |
| Keywords: | SMEs,banks’ financial health,credit constraints,employment,short-time compensation programmes,Great Recession,matched bank-firm data |
| JEL: | C35 C36 D22 G01 G21 J21 J23 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:169&r=ent |
| By: | Nguyen, Ngoc Anh; Doan, Quang Hung; Nguyen, Ngoc Minh; Tran-Nam, Binh |
| Abstract: | Corruption has been found to have complex effects on firm innovation.Limited theoretical and empirical evidence to date has been rather inconclusive. This study employs econometric estimation techniques to analyze data from small and medium manufacturing enterprises in Vietnam to assess the impact of petty corruption on firm innovation. The empirical results tend to support the "greasing" impact of corruption on innovation. Specifically, informal payments by Vietnamese firms are shown to encourage overall innovation, product improvement, innovation and new innovation. In view of the commonplace business practice of paying small informal fees to speed up transactions in the inefficient public sector in Vietnam, this finding is not entirely unexpected, though troubling. |
| Keywords: | Corruption, Viet Nam, Innovation |
| JEL: | O17 O3 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71902&r=ent |
| By: | Miguel García-Posada Gómez (European Central Bank and Banco de España) |
| Abstract: | We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a large panel of small and medium-sized enterprises from 12 European countries for the period 2014-2016. The data come from the Survey on the access to finance of enterprises (SAFE), a survey that is especially designed to analyse the problems in the access to external finance of European SMEs. The key identification challenge is a potential reverse-causality bias, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects and instrumental variables. Our findings suggest that credit constraints, both in bank financing and other financing (e.g. trade credit), have strong negative effects on investment in fixed assets, while the impact on firm growth and working capital is less robust. |
| Keywords: | investment, firm growth, working capital, ordered probit, instrumental variables |
| JEL: | G30 G31 G32 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1808&r=ent |
| By: | Herte, Anamaria Diana |
| Abstract: | Small and medium-sized enterprises (SMEs) are considered as being the engine of the European economy. They lead to job creation and economic growth, guaranteeing social stability. Nine out of ten enterprises are SMEs, which generate two out of three new jobs. SMEs also stimulate entrepreneurship and innovation, and are therefore very important for boosting competitiveness and employment. Given their importance to Europe's economy, SMEs are a major objective of the European Union's policy. The European Commission has as its major aim to promote entrepreneurship and improve the business environment for SMEs by enabling them to fully realize their potential in today's globalized economy by giving them the opportunity to access funds through various programs. This paper contains some definitions and interpretations of SMEs and start-ups and aims to outline their importance in the contemporary economy as well as their support policies. |
| Keywords: | SMEs; Start-up concepts and policies, EU, Romania |
| JEL: | E60 M21 |
| Date: | 2017–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84174&r=ent |