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on Entrepreneurship |
| By: | Pierre St-Amant; David Tessier |
| Abstract: | There are indications that business dynamism has declined in advanced economies. In particular, firm entry and exit rates have fallen, suggesting that the creative destruction process has lost some of its vitality. Meanwhile, productivity growth has slowed. Some believe that lower entry and exit rates partly explain the weaker productivity growth. However, the evidence supporting, or invalidating, this view is scarce. In the present paper, we use multi-horizon causality tests and dynamic simulations with Canadian and US data to examine the following question: Do changes to entry and exit rates provide information about, or Granger-cause, future productivity? We do not find significant evidence that entry rates Granger-cause productivity. But we do find evidence that productivity causes entry rates. Using small models with economy-wide data (but not at the sectoral level), we find some evidence that exit rates cause productivity in both countries. This suggests that the decline in productivity growth is partly caused by a decline in the productivity-based exit selection process. However, when other variables, such as measures of the business cycle and the real effective exchange rate, are controlled for, the significance of exit rates in explaining productivity tends to fall. Specifically, business-cycle measures appear to cause both productivity and the exit rate. This suggests that firm dynamics are an intermediate, not an ultimate, cause of productivity growth. |
| Keywords: | Firm dynamics, Productivity |
| JEL: | M13 D24 O47 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:18-15&r=ent |
| By: | Bratti, Massimiliano (European Commission – JRC); De Benedictis, Luca (University of Macerata); Santoni, Gianluca (CEPII) |
| Abstract: | In this paper we highlight a new complementary channel to the business and social network effect à la Rauch (2001) through which immigrants generate increased export flows from the regions in which they settle to their countries of origin: they can become entrepreneurs. Using very small-scale (NUTS-3) administrative data on immigrants' location in Italy, the local presence of immigrant entrepreneurs (i.e. firms owned by foreign-born entrepreneurs) in the manufacturing sector, and on trade flows in manufacturing between Italian provinces and more than 200 foreign countries, we assess the causal relationship going from diasporas and immigrant entrepreneurs towards export flows. Both the size of the diaspora and the number of immigrant entrepreneurs have a positive, significant and economically meaningful effect on exports. In particular, we find that increasing the stock of (non-entrepreneur) immigrants by 10% would lead to a 1.7% increase in exports in manufacturing, while increasing the number of immigrant entrepreneurs in manufacturing by 10% would raise exports by about 0.6%. |
| Keywords: | exports, immigrants, gravity model, immigrant entrepreneurs, Italy |
| JEL: | F10 F14 F22 R10 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:201801&r=ent |
| By: | Kimberly Bayard; Emin Dinlersoz; Timothy Dunne; John Haltiwanger; Javier Miranda; John Stevens |
| Abstract: | This paper reports on the development and analysis of a newly constructed dataset on the early stages of business formation. The data are based on applications for Employer Identification Numbers (EINs) submitted in the United States, known as IRS Form SS-4 filings. The goal of the research is to develop high-frequency indicators of business formation at the national, state, and local levels. The analysis indicates that EIN applications provide forward-looking and very timely information on business formation. The signal of business formation provided by counts of applications is improved by using the characteristics of the applications to model the likelihood that applicants become employer businesses. The results also suggest that EIN applications are related to economic activity at the local level. For example, application activity is higher in counties that experienced higher employment growth since the end of the Great Recession, and application counts grew more rapidly in counties engaged in shale oil and gas extraction. Finally, the paper provides a description of new public-use dataset, the “Business Formation Statistics (BFS),” that contains new data series on business applications and formation. The initial release of the BFS shows that the number of business applications in the 3rd quarter of 2017 that have relatively high likelihood of becoming job creators is still far below pre-Great Recession levels. |
| JEL: | C81 E17 L26 M13 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24364&r=ent |
| By: | Hermans, Julie; Slabbinck, Hendrik; Vanderstraeten, Johanna; Brassey, Jacqueline (Tilburg University, School of Economics and Management); Dejardin, Marcus; Ramdani, Dendi; van Witteloostuijn, Arjen (Tilburg University, School of Economics and Management) |
| Abstract: | We examine the fundamental tension between explicit and implicit power motives; and their combined impact on the importance attached to prosocial organizational goals in small businesses (SMEs). We show that key decision-makers with a dominant implicit power motive attach more importance to the prosocial goals of job creation and taking care of the environment in their businesses. However, we reveal that this positive relationship is moderated by their explicit power motive. Once decision-makers in SMEs consciously seek for power, the positive relationship is neutralized. With these results, we highlight the conceptual and methodological differences between implicit and explicit power motives. We could obtain these results because we developed and validated an innovative implicit motive measurethe Shortened Pictorial Attitude Implicit Association Test (SPA-IAT). Contrary to the currently available implicit motive measures, the SPA-IAT is fast and easy to use and analyze, which makes this novel instrument well suited for research in business settings. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:51db3f0c-5e5f-41b1-b560-558dfb69da0a&r=ent |
| By: | Pandow, Bilal; Ashai, Salma; Hussain, Gousiya |
| Abstract: | The entrepreneurship growth is being recognized as a serviceable means of tackling Jammu and Kashmir’s [J&K] socioeconomic challenges of high unemployment, and unbalanced distribution of income. The unemployment rates revealed by National Sample Survey Office (NSSO) for the state presents a depressed image of the condition of women in the state. According to the NSSO employment position of females in urban areas are worse than that of men. The indicators were analyzed and found that the females in urban arears are unemployed and the rate is at 11.7 percent. And the same pointer for the unemployment rate for male population is hovering at 6.7 percent and the figure at all-India level for the female (urban) unemployment rate is at 7.9 percent. It is observed that existing policies overlook the gender as a potential input for addressing the grave issue. Despite this females have proven their mettle using their peculiar gender nature effectively and efficiently in small and micro business which calls for an immediate attention by the government towards promotion of women in entrepreneurship. |
| Keywords: | Gender, Entrepreneurship, Jammu and Kashmir, Sociocultural diversity |
| JEL: | J2 J3 J5 J7 |
| Date: | 2018–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84840&r=ent |
| By: | Laurence Cohen (Centre de Recherche Magellan - Université Jean Moulin - Lyon III - Institut d'Administration des Entreprises (IAE) - Lyon); Peter Wirtz (Centre de Recherche Magellan - Université Jean Moulin - Lyon III - Institut d'Administration des Entreprises (IAE) - Lyon) |
| Abstract: | Cet article vise à mieux comprendre comment la finance entrepreneuriale interagit avec les processus complexes de croissance des jeunes entreprises technologiques. Plus spécialement, nous examinons comment les différentes trajectoires de croissance sont façonnées par les interactions des entrepreneurs avec les différentes catégories d'investisseurs : business angels (BAs) et capital-investisseurs (VCs). À travers une étude comparative de cas contrastant-une entreprise engagée dans une dynamique d'hypercroissance et une entreprise ayant connu une croissance modérée – nous montrons que les trajectoires de croissance dépendent fortement de la capacité de l'entrepreneur à obtenir simultanément auprès des BAs et CIs des ressources aussi bien financières que cognitives. Nous montrons que l'aptitude des entrepreneurs à agir ainsi, dépend de leurs caractéristiques psychologiques et cognitives spécifiques aussi bien que de leur processus de prise de décision. |
| Keywords: | Business Angel,Capital-Investisseur,Caractéristiques cognitives et psychologiques,Processus cognitif,Trajectoire de croissance |
| Date: | 2018–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01723858&r=ent |