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on Entrepreneurship |
| By: | Gaillard, Alexandre; Kankanamge, Sumudu |
| Abstract: | This paper introduces a quantitative general equilibrium model with risky entrepreneurship and search frictions designed to endogenously match the magnitude of the occupational flows between entrepreneurship, paid-employment and unemployment. The model also accounts for the general shape of these flows as well as key entrepreneurial and labor market features in the US, based mostly on micro CPS and SCF data. We use this model to examine the mitigation of the bias created by most current unemployment insurance programs in favor of paid-employment and at the expense of self-employment. We show that an entrepreneurial insurance program can significantly reduce this bias and we decompose the elements that most contribute to this reduction. Comparing this policy to an entrepreneurial subsidy, we find that entrepreneurial insurance selects more talented, wealthier, faster growing and longer lasting entrepreneurs from the unemployment pool. Finally, we find that UI system attributes have a significant impact on entrepreneurship, which might be an important additional concern for optimal UI design. |
| Keywords: | entrepreneurship; labor market mobility; unemployment; insurance; |
| JEL: | E24 E61 J68 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:32738&r=ent |
| By: | Herv\'e Lebret |
| Abstract: | In the domain of technology startups, biotechnology has often been considered as specific. Their unique technology content, the type of founders and managers they have, the amount of venture capital they raise, the time it takes them to reach an exit as well as the technology clusters they belong to are seen as such unique features. Based on extensive research from new databases, the author claims that the biotechnology startups are not as different as it might have been claimed: the amount of venture capital raised, the time to exit, their geography are indeed similar and even their equity structure to founders and managers have similarities. The differences still exist, for example the experience of the founders, the revenue and profit level at exit. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1805.12108&r=ent |
| By: | Michael, Stuetzer; David, Audretsch; Martin, Obschonka; Samuel, Gosling; Jason, Rentfrow; Jeff, Potter |
| Abstract: | An extensive literature has emerged in regional studies linking organization-based measures of entrepreneurship (e.g., self-employment, new start-ups) to regional economic performance. A limitation of the extant literature is that the measurement of entrepreneurship is not able to incorporate broader conceptual views, such as behaviour, of what actually constitutes entrepreneurship. This paper fills this gap by linking the underlying and also more fundamental and encompassing entrepreneurship culture of regions to regional economic performance. The empirical evidence suggests that those regions exhibiting higher levels of entrepreneurship culture tend to have higher employment growth. Robustness checks using causal methods confirm this finding. |
| Keywords: | Entrepreneurship; Entrepreneurship Culture; Regional Development; Economic Growth |
| JEL: | L26 M13 N9 N91 O3 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87234&r=ent |
| By: | Lakdawala, Leah (Michigan State University, Department of Economics) |
| Abstract: | This paper seeks to understand household business decisions in response to increased credit access in an environment with multiple market failures. A simple model suggests that households at certain wealth thresholds might be able to overcome the fixed costs of entering entrepreneurship when they have increased access to credit. In the presence of labor market imperfections however, these same households may also be more likely to employ child labor. I test these predictions using household- and child-level panel data from Thailand. To isolate the causal impacts of household borrowing, I exploit the exogenous timing and institutional features of the Million Baht Program, one of the largest government initiatives to increase household access to credit in the world. I find that, consistent with the model, expanded access to credit raises entry into entrepreneurship for households in specific wealth groups while simultaneously increasing the use of child labor in these households. The results suggest that through the avenue of encouraging entrepreneurial activity, expanding credit access may have unintended consequences for the supply of child labor. |
| Keywords: | Credit; Microcredit; Entrepreneurship; Child Labor; Child Work; Schooling |
| JEL: | D13 J22 O12 O15 |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:msuecw:2018_004&r=ent |
| By: | Davide Castellani; Mariacristina Piva; Torben Schubert; Marco Vivarelli |
| Abstract: | Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech industries), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change at least in medium and low-tech sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which - instead of purely aiming at stimulating higher R&D expenditures - works on improving the firms' capabilities to transform R&D into productivity gains. |
| Keywords: | R&D; productivity; economic crisis; US; EU |
| Date: | 2018–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/16&r=ent |
| By: | Stjepan Srhoj (Department for Economics and Business Economics, University of Dubrovnik); Bruno Skrinjaric (The Institute of Economics, Zagreb); Sonja Radas (The Institute of Economics, Zagreb) |
| Abstract: | Impact evaluations of entrepreneurship policies targeting young firms have been somewhat neglected thus far in the literature. This paper seeks to contribute to this topic in the context of a long recession period, such as the one experienced in Croatia from 2009 to 2014. These policies awarded small grant amounts for activities such as business plan development, consultancy, marketing and office renovation. Awarding small grant amounts to many firms might be tempting for politicians, but is this political populism or smart policy? This paper estimates the impact of matching grants for business development on three types of outcomes: bank loans, firm survival and firm performance. The full firm-level census dataset was supplemented with entrepreneur-level court register and firm-level data on grant recipients. Policy evaluation was performed using matching techniques with a combination of nearest neighbor and exact matching, and robustness of results was tested using a placebo test and Rosenbaum bounds. The results show that grants had a positive impact on firm survival after the recession, and on obtaining long-term bank loans during the recession. However, no empirical support was found for the grants’ impact on growth in turnover, employment and labor productivity. |
| Keywords: | grants, recession, young firms, survival, firm performance, bank loans |
| JEL: | H25 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:iez:wpaper:1802&r=ent |
| By: | John Forth (National Institute of Social and Economic Research); Alex Bryson (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor) |
| Abstract: | We examine the impact of management practices on firm performance among SMEs in Britain over the period 2011-2014, using a unique dataset which links survey data on management practices with firm performance data from the UK's official business register. We find that SMEs are less likely to use formal management practices than larger firms, but that such practices have demonstrable benefits for those who use them, helping firms to grow and increasing their productivity. The returns are most apparent for those SMEs that invest in human resource management practices, such as training and performance-related pay, and those that set formal performance targets. |
| Keywords: | SMEs; small and medium-sized enterprises; employment growth; high-growth firms; productivity; workplace closure; management practices; HRM; recession |
| JEL: | L25 L26 M12 M52 M53 |
| Date: | 2018–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1804&r=ent |
| By: | Gonçalo Brás (Polytechnic Institute of Tomar); Elias Soukiazis (CeBER and Faculty of Economics, University of Coimbra) |
| Abstract: | As a multidisciplinary concept, entrepreneurship can be explained by numerous factors. Therefore, the aim of this study is to test empirically the determinants of entrepreneurship (overall and sectoral) in the Portuguese economy. Despite the methodological limitations inherent in such studies, which are mainly due to the incompatibility of some series and the temporal limitations of some data, the novelty involving a cross-sectoral view of the entrepreneurial phenomenon fuels this challenge. For this purpose, we employ an estimation approach based on time series models to confirm (or reject) a diversity of hypotheses. The main results indicate that the determinants of entrepreneurship in industry are significantly different from the determinants of entrepreneurship in the service sector in Portugal. On the other hand, the determinants of entrepreneurship in the service sector are very similar to those explaining the overall entrepreneurial activity, due to the high share of services in total economic activity. The main conclusions of the study can guide institutional decision-makers to adopt adequate policies for promoting entrepreneurship in Portugal. Additionally, strategic routes for the sustainable development of entrepreneurial activity are suggested. |
| Keywords: | entrepreneurship; sectoral entrepreneurship; determinants of entrepreneurship; entrepreneurial activity; business services; time series models. |
| JEL: | L26 O11 O14 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:papers:2018-4&r=ent |
| By: | Gabriele Pellegrino; Mariacristina Piva; Marco Vivarelli |
| Abstract: | In this work, we test the employment impact of distinct types of innovative investments using a representative sample of Spanish manufacturing firms over the period 2002-2013. Our GMM-SYS estimates generate various results, which are partially in contrast with the extant literature. Indeed, estimations carried out on the entire sample do not provide statistically significant evidence of the expected labor-friendly nature of innovation. More in detail, neither R&D nor investment in innovative machineries and equipment (the so-called embodied technological change, ETC) turn out to have any significant employment effect. However, the job-creation impact of R&D expenditures becomes highly significant when the focus is limited to the high-tech firms. On the other hand - and interestingly - ETC exhibits its labor-saving nature when SMEs are singled out. |
| Keywords: | Innovation; R&D; Embodied Technological Change; Employment; GMM-SYS |
| Date: | 2018–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/15&r=ent |
| By: | Bhagaporn Wattanadumrong (Naresuan University); Nattachet Poonchareon (Department of Economics Faculty of Business, Economics and Communications, Naresuan University); Warawude Rurkwararuk (Department of Business Administration Faculty of Business, Economics and Communications, Naresuan University) |
| Abstract: | This paper analyses regional investment in Phitsanulok Province located in the lower north of Thailand. Using data for 3,623 local business registered from 1906 to 2015. This study examines their performance of the city growth and socio-economic problems to promote entrepreneurship based on locally-owned (LOEs) enterprises and nonlocally-owned (NLOEs) enterprises. The key determinants are identified using a unique assembled data recorded by local authority recording and comprising all local business sectors over time. The descriptive analytical approach will be applied to full sample (all sectors) and other relevant issues (capital based, size of business into SMEs; Small Medium Enterprises). Most enterprises are small business; while, there are few medium and large sizes in the community areas.The aim of the research is to explore the evolution of local business development in the province and the major determinants to increase the investment into local. The quantitative approach has been investigated together with face to face interview from the purposive samples by sectors. The results show that local entrepreneurs experience the high competitiveness from outsides especially from the large and medium nonlocally-owned enterprises. The development of entrepreneurship in the areas based of Phitsanulok has gradually changed. The huge capital investment from outside has injected into the areas. The phenomenon how the small ? medium enterprises will be survived from the large enterprises dominated into the areas has to be discussed in terms of policy priority actions and the economic and social instruments at the level of economic entities of local business development in the areas. This study briefly examines the city growth of businesses? existence and its changes over time. This approach can be applied to analyze the city growth at provincial-level of the country. |
| Keywords: | regional investment, SMEs, Phitsanulok, local business development |
| JEL: | O18 M21 L26 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:5407727&r=ent |
| By: | Canare, Tristan A.; Francisco, Jamil Paulo; Labios, Jean Rebecca |
| Abstract: | Small and medium-sized enterprises (SMEs) are important in many developing countries, including the Philippines. However, this sector remains much less productive than their large counterparts. One factor that can help SMEs achieve higher productivity is to connect them to global value chains (GVCs) through internationalization. However, SMEs are faced with a host of obstacles in trying to participate in GVCs. This paper attempts to determine the challenges and enablers of connecting small and medium businesses to GVCs. It uses data from a survey of Metro Manila SMEs and a set of key informant interviews of SME owners and of government officials tasked to assist SMEs. Findings show that Philippine SMEs are weakly linked to GVCs. The challenges and enablers can be grouped into five themes, namely: (1) competition in ASEAN and East Asia; 2) international standards, regulatory requirements, and local institutions; (3) role of the government; (4) international market demand and inputs supply; and (5) entrepreneurial mindset. Based on the results, some policy implications were formulated. |
| Keywords: | competition, Philippines, global value chains, SMEs, small and medium enterprises, Philippine SMEs, internationalization, exports |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2018-07&r=ent |
| By: | Philippe Henry (Scènes et savoirs - UP8 - Université Paris 8 Vincennes-Saint-Denis) |
| Abstract: | In what way is the theme of cultural entrepreneurship something else than a simple societal or institutional injunction, particularly in France for micro-organisations with professional aim and other than profit-making goals in the field of culture ? While contextual developments, since the end of the last century, largely explain why this theme is currently so pregnant, it also gains to be looked at through the generic tensions of the cultural economy along with those that can be found in very small enterprises. An approach which gives its rightful place to the qualitative and collective dimensions of cultural entrepreneurship therefore seems more relevant than going no further than a conception which would be either far too economical or focused on the figure of the individual entrepreneur. The importance of non-profit-making goals is also to be underlined, even if the issue of a minimal economic viability for each project or organisation remains central. Those different elements are even more intense in very small enterprises. Attempts at cooperative arrangement between cultural micro-enterprises thus show the full interest, but also the structural difficulties, of such approaches, if only to ensure a minimal economic viability for projects whose stakes are not only economic. |
| Abstract: | En quoi le thème de l'entrepreneuriat culturel relève-t-il d'autre chose que d'une simple injonction sociétale ou institutionnelle, notamment en France pour les micro-organisations à visée professionnelle et à buts d'abord autres que lucratifs de ce domaine d'activité ? Si des évolutions contextuelles, depuis la fin du siècle dernier, expliquent pour une bonne part la prégnance actuelle de ce thème, celui-ci gagne aussi à être regardé au travers des tensions génériques de l'économie culturelle et de celles des très petites entreprises. Une approche donnant toute sa place aux dimensions qualitative et collective de l'entrepreneuriat culturel apparaît alors plus pertinente que d'en rester à une conception par trop économique ou centrée sur la figure de l'entrepreneur individuel. L'importance des buts autres que seulement lucratif est également à souligner, même si la question de la viabilité économique minimale de chaque projet ou organisation reste elle aussi centrale. Ces différents éléments se retrouvent comme exacerbés dans les très petites entreprises. Des tentatives d'agencement coopératif entre micro-entreprises culturelles montrent ainsi tout l'intérêt, mais aussi les difficultés en partie structurelles, de telles démarches, ne serait-ce que pour assurer une viabilité économique minimale à des projets porteurs d'enjeux d'abord non strictement économiques. |
| Keywords: | Cultural entrepreneurship , socioeconomic ,Entrepreneuriat culturel , socio-économie , coopération , arts |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01796400&r=ent |
| By: | MOTOHASHI Kazuyuki |
| Abstract: | Shenzhen has become a hot spot of innovation in China. In this paper, we characterize Shenzhen innovation by comparing Beijing and Shanghai using patent and venture investment data. First, the role of university and public research institutions is small in the Shenzhen innovation system, as compared to Beijing and Shanghai. In contrast, private high-tech firms such as Huawei, ZTE, and Tencent are leading the innovation scene in Shenzhen. Second, it is found that high-tech startups are geographically concentrated in the Nanshan district, particularly Yuehai JieDao where national level high-tech zones are located. Recently, the number of startups have been increasing and local big firms such as ZTE provide human resources for such startup firms. Third, inventor disambiguated information based on patent data allows us to look at inter organizational talents moves. It is found that such moves tend to occur within short distances, such as within the same district (e.g., Nanshan district). To sum up, Shenzhen has truly become a hot spot of high-tech entrepreneurship and innovation, however, the dynamics are very much regionally bounded. Therefore, it is important to become a local player in order to take advantage of innovation movements in Shenzhen, by means of minority investment by corporate venture capital (CVC) into local startup firms. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:18011&r=ent |