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on Entrepreneurship |
| By: | Eric Fesselmeyer; Kiat Ying Seah |
| Abstract: | We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive effect. Additionally, in order to minimize the effect of cross-city sorting, we use a narrower sample constructed from outcomes of young adults and find a similar effect. Our findings are important because historically entrepreneurship has been an avenue out of poverty, and entrepreneurship has been promoted as a way to decrease welfare and unemployment. |
| Keywords: | Entrepreneurship; Inequality; Segregation |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_277&r=ent |
| By: | Olabimtan Adebowale and David Lawson |
| Abstract: | Abstract The role of finance in stimulating entrepreneurship in developing countries is well documented. However, the specific impact of finance on part-time entrepreneurship is less well known. Drawing on the entrepreneurship discourse that self-employment is not a sufficient measure of entrepreneurship in developing countries, this study extends the finance–poverty debate by investigating the impact of finance on households’ part-time and self-employed entrepreneurship choices. It also examines the role of external finance in enterprise growth, with a focus on the ‘missing lower-end’ of the industrial scale. Using Nigeria Living Standard Measurement Study (LSMS) surveys, our analysis suggests heterogeneity in the effects of finance on households’ non-farm entrepreneurial choices, with part-time entrepreneurs more likely to be financially constrained. The empirical evidence shows that self-employed entrepreneurs are seemingly not financially constrained. This is, however, not to say that self-employed entrepreneurs are not financially constrained; it may just be that they are concentrated in the informal sector or less capital-intensive sectors of the economy. The results also show that, contrary to findings in previous studies, external finance does not strongly explain household enterprise growth. The results are robust to the use of an alternative econometric approach on identical models and specifications. The policy implication is that improving access to formal financial services may not, on its own, be sufficient to drive the structural transformation process without the integration of the informal financial sector into the mainstream financial system. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:262018&r=ent |
| By: | Barnett, William; Hu, Mingzhi; Wang, Xue |
| Abstract: | Impacts on the probability of transition to entrepreneurship in rural China associated with the utilization of information communication technology (ICT) are estimated using longitudinal data from the China Family Panel Studies (CFPS) survey. We identify cell phone ownership and internet use as proxy variables for ICT utilization and find that cell phone ownership and internet use have positive impacts on entrepreneurship. After controlling for observables and time and regional fixed effects, cell phone users (internet users) are 2.0 (6.4) percentage points more likely to engage in entrepreneurship than the others. Considering that the average entrepreneurship rate for rural households is only 9.5% in the sample, the influence of cell phone ownership and internet use are very strong in the economic sense. Our results are robust to unobservable individual characteristics, model misspecification, and reverse causality of entrepreneurship to ICT utilization. Evidence also suggests that social network and information and knowledge acquisition play the mediating roles in the impact of ICT utilization on entrepreneurship. |
| Keywords: | ICT; social network; information acquisition; entrepreneurship |
| JEL: | D10 M51 Q55 |
| Date: | 2018–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86479&r=ent |
| By: | Tamara ?maguc (Faculty of Organization and Informatics, University of Zagreb); Ksenija Vukovi? (Faculty of Organization and Informatics, University of Zagreb) |
| Abstract: | The promise of entrepreneurial zones development in Northern Croatia has been huge. In the last decade 282,2 million kuna has been invested on the area of Vara?din and Me?imurje county in the Republic of Croatia and the result has been activation of 52 zones financed from public sources and generation of 14,4 thousand working vacancies (Republic of Croatia, Ministry of Entrepreneurship and Crafts, 2015). Despite certain employment capacity there is still a large number of non-active or half-filled entrepreneurial zones that are a reason for suspicion in cost effectiveness of these investments. In this paper investment efficiency of local self-government units (municipalities and towns) on the area of Vara?din and Me?imurje county in the Republic of Croatia has been assessed by using data envelopment analysis. The analysis has been conducted by using CCR and BCC model oriented on outputs. Concretely, the results of the conducted analysis are valuable due to the fact that political management of towns and municipalities ? that has been non-efficient investor in entrepreneurial zones ? is given information on necessary changes and their extent and also on good practice examples from neighbour towns and municipalities. |
| Keywords: | entrepreneurial zones, relative efficiency assessment, data envelopment analysis, Vara?din county, Me?imurje county |
| JEL: | L26 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508474&r=ent |
| By: | Pereira, Luiz C. Bresser |
| Abstract: | Since the beginning of the twentieth century there are three basic social classes: the capitalist class or bourgeoisie, the working class and the professional class or technobureaucracy. In the first part of the century, the high technobureaucrats replaced the business entrepreneurs in the management of the corporations; from the 1980s, the rentier capitalist, most of them heirs, replaced the entrepreneurs in the ownership of such corporations. To manage their wealth a special class of professionals emerged, the financiers, bright people formed in the best universities, who assumed also the role of economic policymakers and of ideologues or organic intellectuals. They adopt the neoliberal ideology, and, as its justification, either the neoclassical, or the Austrian economics. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:477&r=ent |
| By: | IKEUCHI Kenta; KIM Young Gak; KWON Hyeog Ug; FUKAO Kyoji |
| Abstract: | Although many researchers have investigated Japan's so-called lost decades (1990s and 2000s), a real puzzle is why productivity growth has slowed down since the 1990s for such a long time with just a weak recovery. To solve it, much research has been done using micro-level data on firm and establishment activity, which sheds great light on our understanding of the mechanism of the productivity dynamics in the long-lasting Japan's lost decades. However, most of the research only uses the data on medium-sized or large firms. Especially, research on productivity dynamics in the non-manufacturing industry is extremely limited. Against these backgrounds, this paper analyzes the productivity dynamics among the small and medium-sized enterprises (SMEs). Our analysis covers non-manufacturing firms as well as manufacturing, which makes this research unique and contributes to the literature of economic growth. The dataset used for the analysis is a unique, large, and comprehensive firm level panel dataset of the Credit Risk Database. We find that the productivity dynamics among SMEs is very different from that of large firms. In contrast to the case of large firms, reallocation effect, not within effect, is the main driver of the productivity dynamics among SMEs, implying that market mechanism is properly working among them. However, the shutting down of a small number of highly productive firms drives most of the negative exit effect, which implies another malfunctioning aspect of the market mechanism among SMEs. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:18019&r=ent |