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on Entrepreneurship |
| By: | Hammarstedt, Mats (Linnaeus University Centre for Discrimination and Integration Studies); Miao, Chizheng (Linnaeus University Centre for Discrimination and Integration Studies) |
| Abstract: | We present a study of immigrant self-employment in Sweden using the recent matched employer-employee data from 2014. We find large variations in self-employment rates among immigrant groups as well as between immigrants with different points for their time immigration to Sweden. High self-employment rates are found for male immigrants from the Middle East. Immigrants are less likely than natives to have employees in their firms but after controlling for firm characteristics we find that self-employed immigrants are more likely than self-employed natives to have employees. Especially non-European immigrants are more likely than natives to employ other immigrants, and even non-European and recently arrived immigrants, in their firms. Immigrants are more likely than natives to hire their spouses as employees. We conclude that self-employed immigrants play a role in the labour market integration of other immigrants. We also conclude that the family plays a central role for self-employment activities among immigrants and that more knowledge regarding the explanations behind the results is needed. |
| Keywords: | Self-employment; Immigrants; Employment; Employees; Sweden |
| JEL: | F22 J21 J61 L26 |
| Date: | 2018–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1235&r=ent |
| By: | Michelle Dell’Era; Luca David Opromolla; Luís Santos-Pinto |
| Abstract: | This paper studies the impact of optimism on occupational choice using a general equilibrium framework. The model shows that optimism has four main qualitative effects: it leads to a misallocation of talent, drives up input prices, raises the number of entrepreneurs, and makes entrepreneurs worse off. We calibrate the model to match U.S. manufacturing data. This allows us to make quantitative predictions regarding the impact of optimism on occupational choice, input prices, the returns to entrepreneurship, and output. The calibration shows that optimism can explain the empirical puzzle of the low mean returns to entrepreneurship compared to average wages. |
| Keywords: | General Equilibrium; Entrepreneurship; Optimism |
| JEL: | D50 H21 J24 L26 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp0502018&r=ent |
| By: | Shai Bernstein; Emanuele Colonnelli; Davide Malacrino; Timothy McQuade |
| Abstract: | New firm formation is a critical driver of job creation, and an important contributor to the responsiveness of the economy to aggregate shocks. In this paper we examine the characteristics of the individuals who become entrepreneurs when local opportunities arise due to an increase in local demand. We identify local demand shocks by linking fluctuations in global commodity prices to municipality level agricultural endowments in Brazil. We find that the firm creation response is almost entirely driven by young and skilled individuals, as measured by their level of experience, education, and past occupations involving creativity, problem-solving and managerial roles. In contrast, we find no such response within the same municipalities among skilled, yet older individuals, highlighting the importance of lifecycle considerations. These responsive individuals are younger and more skilled than the average entrepreneur in the population. The entrepreneurial response of young individuals is larger in municipalities with better access to finance, and in municipalities with more skilled human capital. These results highlight how the characteristics of the local population can have a significant impact on the entrepreneurial responsiveness of the economy. |
| JEL: | E26 J24 L26 O12 O13 O17 O20 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25112&r=ent |
| By: | Källner, Emelie (Department of Industrial Economics and Management, KTH, The Royal Institute of Technology); Nyström, Kristina (The Ratio Institute) |
| Abstract: | This paper studies the entrepreneurial motivation and idea generation process of displaced employees. The empirical results are based on both quantitative (survey) and qualitative (interviews) data collected from displaced employees who decided to become entrepreneurs after the closure of R&D facilities of the pharmaceutical company AstraZeneca in Lund (2010) and Södertälje (2012), Sweden. The empirical findings show that the previous experience and expertise gained from AstraZeneca greatly influenced the idea generation process. Although the employees were affected by their job displacement, still 70 percent of the entrepreneurial activities could be regarded as opportunity-based, suggesting that many entrepreneurs are driven by a combination of push and pull motives. With regard to the timing of the idea generation process, about one third of the entrepreneurs came up with their business ideas before learning about the facility closures. Hence, in many cases, being affected by the displacement spurred the launch of ideas that already existed. |
| Keywords: | Entrepreneurship; firm closure; firm exit; entrepreneurship after displacement; entrepreneurial idea generation |
| JEL: | J63 L26 |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0311&r=ent |
| By: | Kede Ndouna, Faustine; Tsafack Nanfosso, Roger |
| Abstract: | This study aim is to identify, according to microeconomic approach, the determinants of the performance of individual entrepreneurs in the informal sector in Cameroon, through their units performance. Using the Second Survey in the Informal sector and Employment (SSIE) collected in 2010 in Cameroon, we made two regressions of a profit function of an entrepreneur with the method of multiple regressions after a statistic analysis of some characteristics that influence entrepreneur performance in the informal activities. After this analysis, some lessons emerge. First, there are significant gaps in the income generated by informal activities. Then, the impact of factors that can improve the performance of entrepreneurs varies widely depending on the measurement used to capture their performance (sales or income). Finally, individual factors such as education level, seniority, specific experience in entrepreneurship and the time spent on the job significantly increase the performance of informal entrepreneurs. Similarly, the factors of the firm (sector of activity, level of capital, number of permanent employees) exception due to the age of the firm, also significantly improve the performance of informal entrepreneurs better than the individual factors (27% against 15%). However, the main factor that reduce their performance are the economic environment (difficulties in accessing to infrastructure and finance). This could be explained by the fact that, operating in the informal sector, reduce access to financial services and public infrastructures. Several recommendations can be made in line with the improvement of informal entrepreneurship and access to financial services, in order to build strong entrepreneurship in developing countries. |
| Keywords: | Informal Entrepreneur, individual characteristics, firm characteristics, environmental characteristics, entrepreneurial performance. |
| JEL: | C30 L26 O17 |
| Date: | 2017–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88665&r=ent |
| By: | Nguyen Thi Thu Phuong (Centre for Analysis and Forecasting, Vietnamese Academy of Social Sciences); Laure Pasquier-Doumer (IRD, UMR DIAL, PSL, Université Paris-Dauphine) |
| Abstract: | Household business owners mainly rely on their social networks of strong ties to acquire resources in Vietnam. However, no consensus is found in the literature on the influence of strong ties on the performance of small firms in developing countries. Using an original set of qualitative data, this paper provides new evidence on the influence of social networks on household businesses by following a relational approach of the networks. It contributes to the literature by distinguishing the effects of social networks at different phases of the business cycle. It shows that, in the business creation process, strong ties are by far the preferred source of the initial capital as well as information supports. They shape the business at a small size and make it not adapted to rapid changes in the market demand and the technologies in the latter phase of business development. Weak ties are much less mobilized at the start of the business, but they provide a source of valuable information to create innovative businesses. The more the business grows, the higher is the strength of the weak ties. The study illustrates that the use of social networks, including the weak ties, should be understood to be embedded in family structures and local community contexts, with a set of duties and rights embedded in reciprocal relationships beyond not only the business interactions. Les entreprises informelles comptent principalement sur leurs réseaux familiaux pour acquérir des ressources au Vietnam. Cependant, aucun consensus ne se dégage de la littérature sur l’influence des liens forts sur la performance des petites entreprises dans le contexte des pays en développement. À l’aide d’un corpus d’entretiens original, cet article fournit un nouvel éclairage sur l’influence des réseaux sociaux dans le fonctionnement des petites entreprises. En suivant une approche relationnelle des réseaux, il contribue à la littérature en distinguant les effets des réseaux sociaux à des phases différentes du cycle de vie de l’entreprise. Il montre que les liens forts sont la source privilégiée pour obtenir le capital initial et les informations nécessaires dans le processus de création d’entreprise. L’usage des liens forts façonne l’entreprise en la conditionnant à une petite taille et la rendant inadaptée aux changements rapides de la demande et des technologies. Les liens faibles sont beaucoup moins mobilisés au début de l'entreprise, mais ils constituent une source d'informations précieuses pour créer des entreprises innovantes. Plus l'entreprise se développe, plus les liens faibles deviennent cruciaux. L’étude montre que l’utilisation des réseaux sociaux, y compris des liens faibles, est fortement incluse dans les structures familiales et les contextes communautaires locaux, qui supposent un ensemble de droits et de devoirs, notamment une réciprocité qui va au-delà des relations commerciales. |
| Keywords: | Social network, strength of ties, informal sector, Vietnam. |
| JEL: | L14 L26 O17 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:dia:wpaper:dt201813&r=ent |
| By: | Michał Gradzewicz (Narodowy Bank Polski and Warsaw School of Economics) |
| Abstract: | The aim of the study is to investigate the firm-level relationship between investment spikes and subsequent productivity developments. We used census data of Polish firms with employment above 9 persons, we measured investment spike and constructed a control sample for comparison. We showed various performance indicators before and after investment spike. We tested for the effects of a spike using generalized difference-in-difference models. The results suggest different effects for SMEs and larger companies. In smaller firms investment spike is associated with subsequent sales and employment expansion and lagged labor productivity rise, consistently with learning-by-doing model. TFP of smaller firms falls directly after a spike and only gradually rises thereafter. In larger firms investment spike also result in expansion of sales, but labor productivity is not improving relative to control group, despite a drop of employment. Moreover, capital deepening of larger firms results in significantly lower TFP, both in absolute and relative terms. |
| Keywords: | investment spike, productivity, TFP, efficiency, firm-level data, difference-in-difference |
| JEL: | D22 D24 L16 O3 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:291&r=ent |
| By: | Pureta, Igor; Pureta, Tanja |
| Abstract: | Entrepreneurial orientation is a tendency of businesses to act autonomously and innovative, take risks and is taking proactive initiatives to potential market conditions There is a positive relationship between entrepreneurial orientation and business performance of the company. Although the entrepreneurial orientation commonly referred to as a feature the company and not the individual, since the people are supporting tasks within business, there are defined characteristic behaviors that define the entrepreneurial orientation of individuals. This behavior have so far examined the entrepreneurs, not the employees. This paper aims to determine the extent to which employees in the organization have developed entrepreneurial behavior (vision of their own areas of responsibility development, goal setting needed to achieve the vision, planning of specific activities, actively seeking information, persistence in its realization in spite of obstacles and actively seeking feedback about own performance), and whether employees with more developed entrepreneurial behavior more represented in private companies or in the public sector, and if they have intention to found their own company. |
| Keywords: | entrepreneurial orientation, entrepreneurial behavior, proactivity |
| JEL: | J5 J50 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89208&r=ent |
| By: | Adu-Gyamfi, Richard; Kuada, John; Asongu, Simplice |
| Abstract: | Despite the good intentions in sub-Sahara Africa (SSA), previous policy initiatives on entrepreneurship have been disjointed, unambitious, and implemented without commitment and required resources. Furthermore, there has been limited research that can provide insight into the reasons why some of the policy initiatives appear to be successful while others fail. Some scholars have suggested that without a context-specific classificatory guide, policymakers are unlikely to be accurate in their assessment of the growth capabilities of prospective candidates for specific promotion initiatives and this can explain some of the policy failures. This observation has motivated the present paper. Our aim is to provide a framework that helps identify the different contextual dimensions influencing enterprise creation processes in SSA. |
| Keywords: | Entrepreneurship, Africa |
| JEL: | O1 O55 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89133&r=ent |
| By: | Emin M. Dinlersoz; Nathan Goldschlag; Amanda Myers; Nikolas Zolas |
| Abstract: | This paper reports on the construction of a new dataset that combines data on trademark applications and registrations from the U.S. Patent and Trademark Office with data on firms from the U.S. Census Bureau. The resulting dataset allows tracking of various activity related to trademark use and protection over the life-cycle of firms, such as the first application for a trademark registration, the first use of a trademark, and the renewal, assignment, and cancellation of trademark registrations. Facts about firm-level trademark activity are documented, including the incidence and timing of trademark registration filings over the firm life-cycle and the connection between firm characteristics and trademark applications. We also explore the relation of trademark application filing to firm employment and revenue growth, and to firm innovative activity as measured by R&D and patents. |
| JEL: | D22 L10 L21 L25 M30 O34 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25038&r=ent |
| By: | Ouaida, Fadila; El Hajjar, Samer |
| Abstract: | The benefits of e-commerce are apparent not only for small and medium enterprises (SMEs) and large firms, but also for micro firms. Hence, implementing e-sales for micro firms is worth exploring. This study examines the relationship between the use of e-commerce and productivity implications on micro firms in France using Propensity Score Matching (PSM) for the year 2012. Data used in the analysis is based on community survey "ICT & e-commerce" for micro firms. The main objective of using PSM is to assess productivity between, on the one hand, e-selling micro firms and, on the other hand, the non e-selling micro firms. The empirical results show that e-selling micro firms are more productive and have a higher turnover in 2012. |
| Keywords: | ICT,E-commerce,micro firms,productivity,Propensity Score Matching |
| JEL: | L81 O30 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201866&r=ent |
| By: | Stephen G. Cecchetti; Enisse Kharroubi |
| Abstract: | We examine the negative relationship between the rate of growth in credit and the rate of growth in output per worker. Using a panel of 20 countries over 25 years, we establish that there is a robust correlation: the higher the growth rate of credit, the lower the growth rate of output per worker. We then proceed to build a model in which this relationship arises from the fact that investment projects that are more risky have a higher return. As their borrowing grows more quickly over time, entrepreneurs turn to safer, hence lower return projects, thereby reducing aggregate productivity growth. We take this theoretical prediction to industry-level data and find that credit growth disproportionately harms output per worker growth in industries that have either less tangible assets or are more R&D intensive. |
| JEL: | D92 E22 E44 O4 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25079&r=ent |
| By: | Balakrishnan, VN; Mohamad Khan, Jamal Khan |
| Abstract: | Small and medium-sized enterprises (SME) of third-party logistics struggle to stay competitive and facing various pressure to stay competitive. One of the tactics to be competitive is to implement effective competitive measures. The purpose of this research was to explore the influential factors of competitive advantage on third-party logistics in Selangor Malaysia. Data collection included semi-structured questionnaires from 370 managers involved in logistics activities from the small and medium-sized enterprise manufacturing industries located in Selangor. Data analysis was used to identify key influential factors of competitive advantage progression. Correlation and regression analysis were conducted to test the research hypotheses. The results reflect that competitive measures needed extensive attention to stay competitive in the market. Thus, third-party logistics needs to cultivate competitive advantage knowledge and other competitive measures that will drive the third-party logistics service uniqueness. The findings may contribute to social change by helping small and medium-sized third-party logistics to improve their survival rate and to create their firm’s sustainable competitive capability and performance and as well provide solutions to challenges facing the third-party logistics. |
| Keywords: | Competitive strategy, network structure, information technology, competitive advantage, customer relationship management. |
| JEL: | D7 D8 D83 L1 L14 L21 L25 L26 M13 M31 |
| Date: | 2018–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89091&r=ent |
| By: | Ashish Arora; Wesley M. Cohen; Colleen M. Cunningham |
| Abstract: | We study how the inventive capability of a firm conditions its participation in a division of innovative labor. Capable firms are, by definition, able to invent; for them, external inventions substitute for their own R&D. However, external knowledge is an input into internal invention, and thus, more valuable to firms with inventive capability. Using a simple model of innovation and imitation, we explore how inventive capability affects a firm’s R&D investments, and thus whether and how it innovates, imitates, or does neither. Further, we study how these outcomes are conditioned by the supply of external knowledge as well as the supply of external inventions. In an advance over the literature, we treat firm inventive capability as unobserved, and use a latent class multinomial model to infer its value. Using a recent survey of product innovation and the division of innovative labor among US manufacturing firms, we find that high capability firms tend to use internal, rather than externally generated inventions, to innovate, and they use external knowledge to enhance their internal inventive activity. By contrast, lower capability firms are more likely to introduce “me-too” or imitative products, and when they innovate, are more likely to rely on external sources of inventions. Our findings suggest the successful pursuit of R&D-led growth depends both on firm inventive capability and the external knowledge environment. |
| JEL: | O31 O32 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25051&r=ent |
| By: | J. Daniel Kim |
| Abstract: | This paper investigates the effectiveness of startup acquisitions as a hiring strategy. Unlike conventional hires who choose to join a new firm on their own volition, most acquired employees do not have a voice in the decision to be acquired, much less by whom to be acquired. The lack of worker agency may result in a preference mismatch between the acquired employees and the acquiring firm, leading to elevated rates of turnover. Using comprehensive employee-employer matched data from the US Census, I document that acquired workers are significantly more likely to leave compared to regular hires. By constructing a novel peer-based proxy for worker preferences, I show that acquired employees who prefer to work for startups – rather than established firms – are the most likely to leave after the acquisition, lending support to the preference mismatch theory. Moreover, these departures suggest a deeper strategic cost of competitive spawning: upon leaving, acquired workers are more likely to found their own companies, many of which appear to be competitive threats that impair the acquirer’s long-run performance. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-41&r=ent |
| By: | Pureta, Igor; Pureta, Tanja |
| Abstract: | Competitive advantage has an extremely important place in strategic thinking both within the organization and the country. The international competitiveness of a country is a reflection of the ability of the organizations within it to achieve success both on the national and international markets. The latest scientific researches attribute organizational performance and consequently competitive advantage to its leaders and their ability to optimally use available resources. Sources have shown that leaders facing the ongoing globalization market challenges through their behaviour can improve the organization's performance. Effective leaders enable it by increasing the level of entrepreneurial orientation of the organization (nurturing its proactive, innovative and risk-taking characteristics) through the interrelationships among its workers as well as their commitment, confidence and motivation for greater work quality. All these favourable effects are primarily enabled by transformational leadership style, first described by Burns (1978), and elaborated in detail by Bass (1985a), whose implementation is dominantly advocated in modern organizations. This paper explores which leadership characteristics can be used to improve the organization's performance, and whether less successful organizations can be distinguished from the ones that are more successful. The results of this study show that there are specific characteristics that the organization should nurture if it wants to be successful and that less successful organizations can be distinguished from the ones that are more successful according to leadership style they use. |
| Keywords: | competitive advantage, entrepreneurship orientation, organizational performance, leadership style |
| JEL: | L26 L29 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89209&r=ent |
| By: | Ibrahima Dia (Université des Antilles Pôle Martinique et associé Normandie Univ, Unicaen CNRS ,CREM, 14000 CAEN, France); Rafik Abdesselam (Université Lumière Lyon 2, COACTIS (Conception de l’Action en Situation), EA 4161, 16 quai Claude Bernard, F-69365 Lyon, France); Jean Bonnet (African Population Health Research Centre, Nairobi, Kenya) |
| Abstract: | Cet article vise principalement à mieux comprendre la participation des femmes aux activités entrepreneuriales de la région de Dakar. À partir de modèles théoriques bien connus, nous créons le modèle de l’entrepreneure sénégalaise en mettant l’accent sur la culture entrepreneuriale. Des méthodes d’analyse de données multidimensionnelles, à partir de données primaires collectées auprès de 153 femmes entrepreneures, nous permettent de créer des typologies supervisées de l’entrepreneuriat féminin selon les secteurs (formel, informel). Les résultats montrent que la création dépend du capital humain, social et culturel de l’entrepreneure, et confirment l’importance du capital social dans l’entrepreneuriat féminin des pays en développement. |
| Keywords: | entrepreneuriat féminin, secteur informel, modèles intentionnels, analyses discriminantes, Dakar |
| JEL: | L26 E26 M13 M14 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2018-10&r=ent |