nep-ent New Economics Papers
on Entrepreneurship
Issue of 2018‒10‒08
fourteen papers chosen by
Marcus Dejardin
Université de Namur

  1. Innovation Capital By Audretsch, David; Link, Albert
  2. The Regional Emergence of Innovative Start-ups: A Research Agenda By Michael Fritsch
  3. The added value of implicit motives for management research Development and first validation of a Brief Implicit Association Test (BIAT) for the measurement of implicit motives By Hendrik Slabbinck; Arjen Van Witteloostuijn; Julie Hermans; Johanna Vanderstraeten; Marcus Dejardin; Jacqueline Brassey; Dendi Ramdani
  4. Switching from Job Seekers to Job Creators: Transmogrifying Necessity Entrepreneurs and Ratifying Opportunity Entrepreneurs in Zimbabwe By Nyoni, Thabani
  5. Skills, entrepreneurship and new business models: Ways to rejuvenate the German industrial model By Bienert, Jörg; Deutsch, Klaus-Günter; Klös, Hans-Peter; Röhl, Klaus-Heiner
  6. Social Networks and Entrepreneurship. Evidence from a Historical Episode of Industrialization By Javier Mejia
  7. Small firms in the sustainable transformation of food industry: entangling entrepreneurship and activism in grassroots innovation processes By Emilie Lanciano; Séverine Saleilles
  8. Actor Fluidity and Knowledge Persistence in Regional Inventor Networks By Michael Fritsch; Moritz Zöllner
  9. The Relations Between Unemployment and Entrepreneurship in Turkey: Schumpeter or Refugee Effect? By Apaydın, Şükrü
  10. Optimal Growth Policies in a Two-Sector Model with Financial Market Imperfections By Nguyen, Quoc Hung
  11. Incubators, Accelerators and Regional Economic Development By Margarida Madaleno; Max Nathan; Henry Overman; Sevrin Waights
  12. Crowdfunding in a duopoly under asymmetric information By Miglo, Anton
  13. Crowdfunding Under Market Feedback, Asymmetric Information And Overconfident Entrepreneur By Miglo, Anton
  14. Le caratteristiche imprenditoriali delle farmacie di comunità : un’indagine esplorativa By Emidia Vagnoni; Caterina Cavicchi

  1. By: Audretsch, David (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: In this paper we compare the relationship between a firm’s innovation capital and the likelihood that a firm will commercialize an invention. Our index of innovation capital is the product of the firm’s human capital, social capital, and reputational capital. We find from our empirical experiment, which uses Small Business Innovation Research (SBIR) data, that innovation capital is a statistically more important entrepreneurial input to the innovation output of commercialization than any of its components.
    Keywords: innovation capital; human capital; social capital; reputational capital; entrepreneurship; commercialization;
    JEL: L31 O31 O38
    Date: 2018–09–21
  2. By: Michael Fritsch (FSU Jena)
    Abstract: This paper reviews the empirical evidence concerning the regional emergence of innovative new businesses. It is argued that analyses using aggregate data that focus on the regional level and do not account for career patterns of innovative founders are of limited value in guiding policy that is aimed at fostering the emergence of innovative new businesses. Progress can be mainly expected from research that investigates the family backgrounds, education, and employment careers of potential founders. Moreover, it would be helpful to develop clearer empirical definitions of what constitutes an innovative new business, and the distinctions between different types of innovative businesses.
    Keywords: Innovative start-ups, universities, employment career
    JEL: L26 D22 O31 R12 R30
    Date: 2018–09–24
  3. By: Hendrik Slabbinck (Universiteit Gent [Ghent]); Arjen Van Witteloostuijn (VU - Vrije Universiteit Amsterdam [Amsterdam], Universiteit Antwerpen [Antwerpen]); Julie Hermans (CERPE - Centre de Recherches en Economie Régionale et Politique Economique - Université de Namur [Namur], UCL - Université Catholique de Louvain); Johanna Vanderstraeten (Universiteit Antwerpen [Antwerpen]); Marcus Dejardin (CERPE - Centre de Recherches en Economie Régionale et Politique Economique - Université de Namur [Namur], UCL - Université Catholique de Louvain); Jacqueline Brassey (Tilburg University [Netherlands]); Dendi Ramdani (Universiteit Antwerpen [Antwerpen])
    Abstract: Many Management (sub-)disciplines, from Organizational Behavior and Marketing to Accounting and Strategy, are interested in antecedents and consequences of individual attitudes and traits. A key aspect of personality profiles are explicit and implicit motives. Yet, Management scholars mainly focus on explicit motives, with limited attention to implicit motives. We argue that this state of affairs probably came into being because current Management researchers mainly rely on implicit motive measures that are either difficult to apply or to develop, hampering researchers from applying implicit motive measures. To overcome the downsides of available instruments, we develop a Brief Implicit Association Test (BIAT) as an efficient, reliable and valid measure of implicit motives, particularly the needs for achievement, affiliation and power. To explore our BIAT's predictive validity, we apply this measure to a specific research domain within Management: Entrepreneurship. We examine implicit motives' association with entrepreneurial self-efficacy, business founding, and financial profitability. Our results show that the introduction of implicit motives can unlock stranded discussions in this research domain. Overall, we argue that implicit motives can help to push the boundaries of the study of deep-level attributes in a wide range of organizational and managerial settings.
    Date: 2018
  4. By: Nyoni, Thabani
    Abstract: Zimbabwe is open for business. Indeed, after a period of over three decades of self – inflicted economic stagnation; Zimbabwe is finally open for business! This is a meritorious development in the history of this country. The limitation to a new Zimbabwe, the new Zimbabwe that we all desire; is the serious lack of entrepreneurs, opportunity – based entrepreneurs. Without opportunity entrepreneurs, the unemployment puzzle in Zimbabwe is likely to remain unsolved. Opportunity entrepreneurs have the capacity to solve the unemployment problem, especially considering the fact that Zimbabwe is a beautiful country characterized by many business opportunities. It’s high time we must switch from seeking jobs to creating jobs. While there are a number of entrepreneurs in Zimbabwe, it is not surprising that their contribution to economic growth remains minimal because the bulk of them are necessity instead of opportunity entrepreneurs. For the economy of Zimbabwe to grow in a sustainable manner, there is need to transmogrify necessity entrepreneurs into opportunity entrepreneurs. The time to do away with the job seeking mentality is now! Zimbabwe is open for business; indeed, Zimbabwe is open for job creators. This paper looks at entrepreneurship, but from an interesting point of view: opportunity – based entrepreneurship view. I systematically make it clear why policy makers in Zimbabwe need to prioritize opportunity entrepreneurs as opposed to necessity entrepreneurs. Policy implications from this analysis are envisioned to assist policy makers in light of enhancing entrepreneurship, promoting sustainable economic growth and fostering job creation in the new Zimbabwe.
    Keywords: Entrepreneurs, Entrepreneurship, Job creation, Necessity - based entrepreneurship, Opportunity - based entrepreneurship
    JEL: L26
    Date: 2018–09–04
  5. By: Bienert, Jörg; Deutsch, Klaus-Günter; Klös, Hans-Peter; Röhl, Klaus-Heiner
    Abstract: New business models are at the heart of the global competitive challenge. In several areas of manufacturing and closely related services industries, new market participants, business models and technologies lead to faster change in market conditions and the competitive environment. These developments pose new challenges for the successful German industrial system. Strategic treatment of innovation, a stronger focus on disruptive technologies or business models, organ-izational experimentation such as spin-outs to retain entrepreneurial employees, less intra-cor-porate bureaucracy in such ventures and the interaction with new business partners are key elements to master the evolving challenges. Entrepreneurship, new business models and inno-vation in rapidly changing markets should be fostered by focused approaches of management and general economic policies. This includes measures to facilitate to entrepreneurship educa-tion, an entrepreurial culture and corporate training. [...]
    JEL: H25 L53 L60 O32
    Date: 2018
  6. By: Javier Mejia (Division of Social Science)
    Abstract: This paper explores the relationship between social networks and entrepreneurship by constructing a dynamic social network from archival records. The network corresponds to the elite of a society in transition to modernity, characterized by difficult geographical conditions, market failures, and weak state capacity, as in late 19th- and early 20th-century Antioquia (Colombia). With these data, I estimate how the decision to found industrial firms related to the position of individuals in the social network. I find that individuals more important bridging the network (i.e. with higher betweenness centrality) were more involved in industrial entrepreneurship. However, I do not find individuals with a denser network to be more involved in this type of activity. The rationale of these results is that industrial entrepreneurship was a highly-complex activity that required a wide variety of complementary resources. Networks operated as substitutes for markets in the acquisition of these resources. Thus, individuals with network positions that favored the combination of a broad set of resources had a comparative advantage in industrial entrepreneurship. I run several tests to prove this rationale.
    Date: 2018–09
  7. By: Emilie Lanciano (COACTIS - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne]); Séverine Saleilles (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)
    Abstract: The literature in Social Movement Theory, Organization Studies and Entrepreneurship emphasizes on the linkages between social movement action and economic organization. Indeed, social entrepreneurship and social movement studies tend to be more and more linked: activists and social entrepreneurs do not represent separate and distinct actors with different logics of action, but tend to transfer their tactics, such as framing, mobilization, protest and negation. This paper explores how activism and entrepreneurship can be combined in an innovative way by small firms in order to contribute to an industry's transformation towards sustainable development. We specially investigate the field of food industry and Alternative Food Networks. In a context of growing interest and sensitivity towards more sustainable food models, how do small firms combine activism and entrepreneurship to frame grassroots innovation processes and translate this frame into organizational model?
    Date: 2017–08
  8. By: Michael Fritsch (FSU Jena, School of Economics and Business Administration); Moritz Zöllner (FSU Jena, School of Economics and Business Administration)
    Abstract: The development of inventor networks is characterized by the addition of a significant number of new inventors, while a considerable number of incumbent inventors discontinue. We estimate the persistence of knowledge in regional inventor networks using alternative assumptions about knowledge transfer. Based on these estimates we analyze how the size and structure of a network may influence knowledge persistence over time. In a final step, we assess how persistent knowledge as well as the knowledge of new inventors effect the performance of regional innovation systems (RIS). The results suggest that the knowledge of new inventors is much more important for RIS performance than old knowledge that persists.
    Keywords: Innovation networks, knowledge, RandD cooperation, patents, persistence
    JEL: O3 R1 D2 D8
    Date: 2018–09–26
  9. By: Apaydın, Şükrü
    Abstract: The main purpose of this study is to determine the relations between unemployment and entrepreneurship in Turkey. Thus, it is empirically investigated whether the effects of Schumpeter and Refugee are valid or not. In the study, the Autoregressive Distributed Lag – ARDL method was adopted and Turkey’s 2000-2016 period data were used. The results of estimation show that there is an inverse relationship between entrepreneurship and unemployment. Accordingly, when the rate of entrepreneurship increases, unemployment decreases or vice versa. Causality is from entrepreneurship to unemployment. In other words, the while the Schumpeter effect is valid, it is concluded that the refugee effect is invalid.
    Keywords: Entrepreneurship, Unemployment, ARDL Method, Turkey.
    JEL: C22 C51 E24 L26 O31
    Date: 2018–05
  10. By: Nguyen, Quoc Hung
    Abstract: This paper studies the pro-growth policies in an endogenous growth model where heterogeneous entrepreneurs face collateral constraints, skilled workers accumulate human capital, and the government intervenes to promote human and physical capital formation. It shows that the model has a balanced-growth path whose rate depends on government policy and financial development level. The theoretical analysis also shows that when the distribution of idiosyncratic productivity is heavy-tailed, the government must subsidize productive entrepreneurs to achieve optimal pro-growth policies.
    Keywords: Heterogeneity; Financial Deepening; Growth Policies
    JEL: E10 E22 E44 O16
    Date: 2018–09–08
  11. By: Margarida Madaleno; Max Nathan; Henry Overman; Sevrin Waights
    Abstract: A growing wave of co-location programmes promises to boost growth for young firms. Despite great public and policy interest we have little idea whether such programmes are effective. This paper categorises accelerators and incubators within a larger family of 'co-location' interventions. We then develop a single framework to theorise workspace-level impacts. We summarise available evaluation evidence and sketch implications for regional economic policy. We find clear evidence programmes are effective overall. But we know little about how effects operate - or who benefits. Providers and policymakers should experiment further to establish optimal designs.
    Keywords: incubators, accelerators, entrepreneurship, clusters, cities, economic development
    JEL: L26 O32 R30 R58
    Date: 2018–09
  12. By: Miglo, Anton
    Abstract: Traditionally crowdfunding has been used for funding very innovative projects. Recently, however, companies have begun using crowdfunding to finance more traditional products where they compete against other sellers of similar products. One of the major platforms Indiegogo launched several projects consistent with this trend. This paper offers a model of a duopoly where firms can use crowdfunding prior to direct sales. The model is based on asymmetric information between competitors regarding the demand for the product. It provides several implications that have not yet been tested. For example we find that high-demand firms can use crowdfunding to signal their quality.
    Keywords: crowdfunding, asymmetric information, reward-based crowdfunding, duopoly, signalling
    JEL: D43 D82 G32 L11 L13 L26 M13
    Date: 2018
  13. By: Miglo, Anton
    Abstract: This article is the first one that considers a model of the choice between the different types of crowdfunding, which contains elements of the asymmetric information approach and behavioral finance (overconfident entrepreneurs). The model provides several implications, most of which have not yet been tested. Our model predicts that equity-based crowdfunding is more profitable than reward-based crowdfunding when an entrepreneur is overconfident. This is because either the entrepreneur learns from the sale of shares before making production decisions or because the crowd anticipates the entrepreneur's behavior when valuing the shares offered for sale. The model also predicts that an equilibrium can exist where high-quality firms use equity-based crowdfunding in equilibrium which contrasts the spirit of traditional results (for example pecking-order theory) where equity represents an inferior security. The latter has rational managers. It also contrasts traditional behavioral finance literature (for example, Fairchild (2005)) where equity is not issued in equilibrium.
    Keywords: crowdfunding, asymmetric information, overconfidence, equity-based crowdfunding, reward-based crowdfunding, entrepreneurship and learning
    JEL: D82 G32 L11 L26 M13
    Date: 2018
  14. By: Emidia Vagnoni; Caterina Cavicchi
    Abstract: In the last ten years, community pharmacies have undergone relevant normative interventions which have led from one side, to an increase in the number of competitors for dispensing activities, and from the other, to a pharmacists’ eventual role in the implementation of new care services. Faced with a transforming scenario, community pharmacists are expected to develop managerial and professional competences in order to respond to environmental challenges and safeguard both their profitability and their ability to fulfil the goals posed by the national health and pharmaceutical policies. The present study seeks to investigate to what extent community pharmacists perceive environmental turbulence and to what extent they believe to possesses entrepreneurial and managerial orientation, and self-efficacy, to build their pharmacies’ competitive advantage. A survey was prepared and a questionnaire have been sent to the pharmacists belonging to the provincial Association of Young Pharmacists of Agrigento, Italy. The results of the exploratory analysis are discussed along the paper in the light of the major changes community pharmacies are currently experiencing.
    Keywords: entrepreneurial orientation; self-efficacy; managerial competences; community pharmacy
    JEL: L26 M00 I10
    Date: 2018–09–26

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