nep-ent New Economics Papers
on Entrepreneurship
Issue of 2018‒11‒19
seventeen papers chosen by
Marcus Dejardin
Université de Namur

  1. A General Equilibrium Theory of Occupational Choice under Optimistic Beliefs about Entrepreneurial Ability By Dell’Era, Michele; Opromolla, Luca David; Santos-Pinto,
  2. Migrant STEM Entrepreneurs By Christopher F. Baum; Linda Dastory; Hans Lööf; Andreas Stephan
  3. Entrepreneurship and ageing: Exploring an economic geography perspective By Heike Mayer, Birgit Leick
  4. The Rise of Private Foundations as Owners of Swedish Industry: The Role of Tax Incentives 1862–2018 By Johansson, Dan; Stenkula, Mikael; Wykman, Niklas
  5. Creative Class Competition and Innovation in the Absence of Patent Protection By Batabyal, Amitrajeet
  6. Does Entrepreneurial Orientation Matter in Entrepreneurial Intention, Effectual Behavior, and Entrepreneurial Outcomes of Japanese SMEs? By Yamamoto, Satoshi; Kan, Viktoriya
  7. Barriers to Entry and Regional Economic Growth in China By Loren Brandt; Gueorgui Kambourov; Kjetil Storesletten
  8. Entrepreneurs and Junior Markets: An Assessment By Cécile Carpentier; Jean-Marc Suret
  9. Self-Employment and the Economic Cycle in Spain By Lasierra, Jose Manuel
  10. Crowdinvesting in entrepreneurial projects: Disentangling patterns of investor behavior By Maximilian Goethner; Sebastian Luettig; Tobias Regner
  11. Microcredit as an important instrument for the development of rural areas. Region of Shkodra By Armalda Reci
  12. The effects of innovation on the decisions of exporting and/or importing in SMEs: empirical evidence in the case of Spain. By Alfonso Expósito; Juan A. Sanchis-Llopis
  13. Position and development of small and medium enterprises in European countries By Mária Jano?ková; Katarína ?ulková; Adriana Csikósová
  14. Mother s Non-Farm Entrepreneurship and Child Secondary Education in Rural Ghana By Janssens, C.; Van Den Broeck, G.; Maertens, M.; Lambrecht, I.
  16. Resilience and effectuation for a successful business takeover By Aude D’andria; Ines Gabarret; Benjamin Vedel
  17. Mères et entrepreneures : étude de la motivation entrepreneuriale des mampreneurs françaises By Aude D’andria; Ines Gabarret

  1. By: Dell’Era, Michele; Opromolla, Luca David; 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: entrepreneurship; General Equilibrium; Optimism
    JEL: D50 H21 J24 L26
    Date: 2018–10
  2. By: Christopher F. Baum (Boston College; DIW Berlin; CESIS, KTH Royal Institute of Technology); Linda Dastory (CESIS, KTH Royal Institute of Technology); Hans Lööf (CESIS, KTH Royal Institute of Technology); Andreas Stephan (Jönköping International Business School; DIW Berlin)
    Abstract: STEM workers are considered to be key drivers for economic growth in the developed world. Migrant workers play an increasing role in the supply of this occupational category. We study the universe of STEM workers in the Swedish economy over the period 2003-2015 and find that migrants are less likely to form their own business, but those who are entrepreneurs earn income at least as large as that of their native-born counterparts. While the income differential for labor migrants may be partially explained by self-selection, the estimated effect is not significantly different between natives and refugee migrants.
    Keywords: STEM, migration, entrepreneurship, income, panel data
    JEL: F22 L26 J44 J61 O14
    Date: 2018–10–23
  3. By: Heike Mayer, Birgit Leick
    Abstract: The traditional understanding of entrepreneurship is biased towards certain population groups and specific locations. Yet the literature points to a much more diverse perspective on entrepreneurship and regional development. In this paper, we argue that regional characteristics such as the extent to which a region faces demographic change (population growth or decline, population ageing, emigration of youth, etc.) may exert a strong influence both on the individual propensity to start a business and the aggregate numbers of entrepreneurial activities. In addition, demographic change also influences the types of businesses or business models found in different regional contexts. With this idea in mind, we argue that the opportunities and challenges that are associated with old age entrepreneurship depend strongly on the regional context. We place old age entrepreneurship into a regional context and illustrate the ways in which opportunities and constraints arise from such a context and, in particular, from demographic change occurring in different regional types.
    Keywords: Entrepreneurship, Ageing, Silver Economy, Regional Development
    Date: 2018–11
  4. By: Johansson, Dan (Örebro University School of Business); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)); Wykman, Niklas (Örebro University School of Business)
    Abstract: The tax system has at times favoured firm control through private foundations, which has been argued to inhibit high-impact entrepreneurship and economic growth. However, research has been hampered due to a lack of systematic historical tax data. The purpose of this study is threefold. First, we describe the evolution of tax rules for private foundations in Sweden between 1862 and 2018. Second, we calculate the marginal effective tax rate on capital income. Third, we examine the incentives to use private foundations as a means for corporate control by comparing the taxation of private foundations and of high-impact entrepreneurs. Tax incentives help explain why economically significant private foundations were founded between World War I and the 1960s.​
    Keywords: Family firms; Foundations; High-impact entrepreneurship; Owner; Taxation
    JEL: D31 H32 K34 L26 N23 O43 P12 P14
    Date: 2018–11–06
  5. By: Batabyal, Amitrajeet
    Abstract: Recently, Batabyal and Yoo (2018) have analyzed Schumpeterian competition in a region that is creative a la Richard Florida and where the creative class is made up of existing and candidate entrepreneurs. These researchers assume that an existing entrepreneur has a fully enforced patent on the inputs or machines that he has produced. We dispense with this assumption and study a scenario in which there is no patent protection for the representative existing entrepreneur (REE). This REE can undertake two possible types of innovation at the same cost. The first (second) type of innovation is general (specific) and hence can (cannot) be copied by the so called candidate entrepreneurs. In this setting, we perform two tasks. First, we show that although the REE will never undertake the general innovation, he may undertake the specific innovation. Second, we point out that even though the general innovation is not undertaken, the value to the creative region from the general innovation exceeds that from the specific innovation.
    Keywords: Creative Class, General Innovation, Patent, Specific Innovation
    JEL: O31 R11
    Date: 2018–03–19
  6. By: Yamamoto, Satoshi; Kan, Viktoriya
    Keywords: Entrepreneurial Orientation, Entrepreneurial Intention, Effectual Behavior, Japanese Small and Medium-sized Enterprises
    Date: 2018–10
  7. By: Loren Brandt; Gueorgui Kambourov; Kjetil Storesletten
    Abstract: The non-state manufacturing sector has been the engine of China's economic transformation. Up through the mid-1990s, the sector exhibited large regional differences; between 1995 and 2004 we observe rapid convergence in terms of productivity, wages, and new firm start-up rates. To analyze the drivers of this behavior, we construct a Hopenhayn (1992) model that incorporates location-specific capital wedges, output wedges, and a novel entry barrier. Using Chinese Industry Census data we estimate these wedges and examine their role in explaining differences in performance across prefectures and over time. Entry barriers turn out to be the salient factor explaining performance differences. We investigate the empirical covariates of these entry barriers and find that barriers are causally related to the size of the state sector. Thus, the downsizing of the state sector after 1997 may be important in explaining the regional convergence and manufacturing growth after 1995.
    Keywords: Chinese economic growth; SOEs; fi rm entry; entry barriers; capital wedges; output wedges; SOE reform
    JEL: O11 O14 O16 O40 O53 P25 R13 D22 D24 E24
    Date: 2018–11–07
  8. By: Cécile Carpentier; Jean-Marc Suret
    Abstract: This article shows that a junior market can be an effective financing strategy for growth-oriented entrepreneurs who want to list on a senior stock exchange. We analyze 209 graduations from the Canadian junior market (TSXV) benchmarked with 191 initial public offerings (IPOs) on the senior exchange (TSX). Graduations are as frequent as IPOs, and the probability of reaching the TSX is significantly higher for TSXV firms than for venture capital-backed firms. The growth rate of revenues is significantly higher before graduations than before IPOs, allowing TSXV firms to reach the TSX earlier. Investors value both groups of firms similarly, indicating comparable perceived quality. In Canada, the junior market is a valuable financing strategy for growth-oriented entrepreneurs. It fulfills its role of fostering the development of innovative firms and feeding the senior exchange. However, the choice of the TSXV reduces entrepreneur ownership interest compared with the IPO strategy.
    Keywords: Junior Market,Graduation,Initial Public Offering,Small Firm,Stock Exchange,
    JEL: G32 G38 O16 M13
    Date: 2018–05–10
  9. By: Lasierra, Jose Manuel
    Abstract: In periods of economic crisis, self-employment emerges as a potential alternative to unemployment. Literature on the subject identified two distinct basic theories according to which predisposition towards self-employment occurs as an opportunity (pull) or a need (push), closely linked to the business cycle. Here, due to our concern that self-employment might be incentivized in periods of crisis leading to both financial and personal failures, we attempted to verify the validity of both of these theories. To do so, we used a series of personal and job-related variables signifying certain characteristics of persons who want to be self-employed. Our results point towards greater substantiation for the pull theories and refute certain beliefs held by academicians and managers. Furthermore, there are two variables with high, significant coefficients that serve as a synopsis to describe opportunity: workload and money. We link both of these with working hours and net income.
    Keywords: Self-employment, Business cycle, Entrepreneurship, Labour Policy, Unemployment, Gender
    JEL: E32 J16 J64 J68 M21
    Date: 2018–10
  10. By: Maximilian Goethner (FSU Jena); Sebastian Luettig (FSU Jena); Tobias Regner (FSU Jena)
    Abstract: Crowdinvesting emerged recently as an alternative way of funding for start-up projects. Our dataset consists of all pledges made at Companisto, one of the largest crowdinvesting platforms in Europe. Using cluster analysis based on individual investment histories, we find that crowdinvestors differ in their investment strategies and motivations. We can distinguish three types of crowdinvestors that vary in their response to project quality signals of entrepreneurs, project-related information reducing the degree of uncertainty and social influence by fellow investors: Casual Investors, Crowd Enthusiasts, and Sophisticated Investors. We conclude that crowdinvestors are anything but a homogeneous group. Instead, they are motivated by different factors and respond to different signals when making investment decisions.
    Keywords: Crowdinvesting, Entrepreneurial finance, New ventures, Cluster analysis, Social influence, Signaling
    JEL: G23 L26
    Date: 2018–11–07
  11. By: Armalda Reci (Credins Bank)
    Abstract: Microfinance and in particular micro-credit has become a very important topic in global poverty reduction debates. It has become very popular the idea thet the "access in microcredits" helps poor families. Families start a micro-entrepreneurship that will enable them to improve their income and ultimately in reduction of poverty. So far the results of the research have been scarce, and most have been contested.The objective of this paper is to evaluate the impact of microcredits on family income and to identify the difficulties of poor families after the access to microcredit.The study is an experimental case of rural areas of Shkoder region where are analyzed the families participating in microcredit programs and non-participating, which will be observed by the time.Microcredit analysis integrated by the time, the microcredit impact on household income is expected to be positive and to have a significant impact on household income. The study is based on the data collected by 200 questionnaires distributed in the rural areas of Shkoder region.The new paper argues that providing affordable financial services to the rural population, microcredit remains to be an important strategic component of development. On the other hand, what this paper provides is the need to create new microfinance institutions that support their role in accumulation and wealth creation for their clients.
    Keywords: Microcredit, sustainable development, strategic development, rural development, lending.
    Date: 2018–10
  12. By: Alfonso Expósito (Department of Economic Analysis and Political Economy, University of Seville, Calle San Fernando 4, 41004 Sevilla (Spain).); Juan A. Sanchis-Llopis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)
    Abstract: This paper analyses the involvement of small firms in international trade activities by identifying the comprehensive impact of innovation. Specifically, we study how innovation introduced by these firms determines entrepreneurial decision-making process regarding whether to engage in exporting and/or importing. Moreover, we account for several innovation outputs (product, process, and organisational/managerial innovation) when estimating the potentially interrelated decisions of whether to export and/or import. Results confirm the simultaneity of firms’ exporting and importing decisions and consequently these two decisions should be estimated together when analysing the influence incurred by the introduction of alternative types of innovation on said decisions. Furthermore, findings show complementarity between types of innovation to be relevant in explaining export and import decisions made by SMEs. Specifically, cumulative effects as a result of combining product and process innovation, as well of product, process and organisational innovation, are highly significant in explaining export decisions, while in the case of imports, the combination of product and organisational innovation is shown to be significant. These findings lead to major policy and managerial implications regarding the promotion of SMEs’ participation in international trade flows through alternative innovation strategies.
    Keywords: innovation, exporting, importing, SME
    JEL: F14 O30 L20 M21
    Date: 2018–10
  13. By: Mária Jano?ková (Technical university of Ko?ice); Katarína ?ulková (Technical university of Ko?ice); Adriana Csikósová (Technical university of Ko?ice)
    Abstract: SMEs have irreplaceable task not only in macro-economic ? in area of working posts creation, contribution to the flexibility of market mechanism or its contribution to the value added creation, but they are profitable also at the micro-economic level. The goal of the contribution is to search position and development of such enterprises in the frame of chosen European countries and how they contribute to economic growth and competitive environment. During the analysis we considered SME Policy Index. Overall position and development had been analyzed by chosen indexes, mainly index of economic freedom, global competition index, doing business index and corruption perception index. The results speak about increasing trend of SMEs in EU, creating employment possibilities, with limitation of barriers to make business in individual countries.
    Keywords: Business environment, Europe, Global markets, Post-communist countries, Small and medium enterprises.
    JEL: L26 M29
    Date: 2018–10
  14. By: Janssens, C.; Van Den Broeck, G.; Maertens, M.; Lambrecht, I.
    Abstract: While an important share of the rural population in Sub-Saharan Africa owns a non-farm enterprise (NFE), it is unclear how these businesses, especially among female owners, contribute to rural development. This study investigates the missing link between rural NFEs and children s education in developing countries. Using nationally representative data for Ghana and instrumental variable regressions that pass weak and overidentification restrictions, we estimate the impact of mother s non-farm entrepreneurship on the propensity of child secondary school enrolment. We find a strong significant positive effect of 10.6% points, corresponding to a relative increase of 27.2%. We find a positive effect on Junior High School enrolment but not on Senior High School enrolment, which relates to lower expenses and a better spread in payment for Junior High School education. The school-improving effect of mother s NFE is equally strong for boys and girls and for high- and low-educated mothers, and stronger for poorer households. While most of NFEs are small-scale and informal, our results show that even these businesses result in increased investments in child schooling and directly contribute to development. The results imply that NFEs can stimulate schooling among children of low-educated and poor mothers and thereby reduce inequality in rural education. Acknowledgement : We gratefuly acknowledge the International Food Policy Research Institute (IFPRI), Accra, Ghana for the support provided in the field research and VLIR-UOS for the travel grant for the research stay in Ghana.
    Keywords: Labor and Human Capital
    Date: 2018–07
  15. By: Ines Gabarret (EDC Paris); Benjamin Vedel (LEM - Lille - Economie et Management - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Julien Decaillon
    Abstract: Social entrepreneurship is a relatively new object of research and, despite the growing interest it generates in the literature, there is a diversity of definitions and approaches. The objective of this paper is to contribute to the understanding of the motivation of social entrepreneurs by applying the push and pull approach. We study the entrepreneurial motivation of 8 social entrepreneurs. Findings suggest that social entrepreneurs are motivated by a combination of both push and pull factors and drivers of motivation are not only at an individual level (personal needs) but also at a social level through the recognition of social needs.
    Keywords: Entrepreneurship,Social entrepreneurs,Motivation,Push,Pull
    Date: 2017
  16. By: Aude D’andria (UEVE - Université d'Évry-Val-d'Essonne); Ines Gabarret (EDC Paris); Benjamin Vedel (LEM - Lille - Economie et Management - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Purpose: This study explores how resilience can support entrepreneurs in uncertain environments. The study's objective is to show how different dimensions of resilience (emotional/cognitive) are dynamically connected to different logics of actions (causation/effectuation) allowing the development of a successful entrepreneurial project. Methodology: The study is based on a qualitative analysis of a blog written by an entrepreneur during the first seventeen months of a search, negotiation, and financing process for a company takeover. Findings: The results highlight that in high uncertainty, strong entrepreneurial resilience and shift of logics of action can contribute to the success of a business takeover. This study identifies forms of resilience during the business takeover process that helped the entrepreneur overcome adversity and succeed. Moreover, these forms of resilience seem to be related to effectual and causal logics. Practical implications: This study could help future entrepreneurs succeed in the creation or takeover of an organization by improving knowledge of the relationship between resilience and logics of actions. Originality: This study proposes a different approach to the study of entrepreneurial resilience by analysing it in relation with the logics of action (causation/effectuation). Moreover, the study offers a modern methodological approach by using an internet blog as a data source.
    Keywords: Entrepreneurial resilience,business takeover,effectuation,small and medium-sized enterprises
    Date: 2018–05–14
  17. By: Aude D’andria (UEVE - Université d'Évry-Val-d'Essonne); Ines Gabarret (EDC Paris)
    Abstract: Dans cet article nous développons une recherche approfondie sur les déterminants de la motivation entrepreneuriale des mampreneurs en contexte français. Les résultats de notre étude montrent que les dimensions motivationnelles des mampreneurs françaises sont diverses et non mutuellement exclusives. Au delà de la conciliation travail-famille, la recherche de satisfaction, d'indépendance et de reconnaissance professionnelle sont des facteurs importants de motivation entrepreneuriale pour ces mères entrepreneurs. Ils sont cependant conditionnés par des facteurs contextuels perçus au moment de la décision de création et qui sont susceptibles d'évoluer dans le temps. Cet article propose alors un modèle de la motivation entrepreneuriale des mampreneurs qui inclut la prise en compte de différentes strates motivationnelles qui combinent des facteurs psychologiques, économiques et environnementaux.
    Date: 2017

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