nep-ent New Economics Papers
on Entrepreneurship
Issue of 2019‒02‒04
nine papers chosen by
Marcus Dejardin
Université de Namur

  1. Risk Aversion and Entrepreneurship: New Evidence Exploiting Exposure to Massive Earthquakes in Italy By de Blasio, Guido; De Paola, Maria; Poy, Samuele; Scoppa, Vincenzo
  2. Different Strokes for Different Folks: Entrepreneurs' Job Satisfaction and the Intersection of Gender and Migration Background By Teita Bijedić; Alan Piper
  3. Prediction Based on Entrepreneurship-Prone Personality Profiles: Sometimes Worse Than the Toss of a Coin By Alexander Konon; Alexander Kritikos
  4. The behavioural foundations of female entrepreneurship: what can experiments teach us? By Della Giusta, Marina; Clot, Sophie; Razzu, Giovanni
  5. The Survival of Italian Individual Firms to Local Demand Shocks During the Great Recession By Giovanni Marin; Marco Modica
  6. The inverted-U relationship between credit access and productivity growth By Aghion, Philippe; Bergeaud, Antonin; Cette, Gilbert; Lecat, Rémy; Maghin, Hélène
  7. Incubators, accelerators and regional economic development By Madaleno, Margarida; Nathan, Max; Overman, Henry; Waights, Sevrin
  8. Boosting social entrepreneurship and social enterprise development in the Netherlands: In-depth policy review By Lou Aisenberg; Stina Heikkilä; Antonella Noya; Filipe Santos
  9. Stärkung der Migrantenökonomie: Empowerment im Kontext des Inclusive Entrepreneurship By David, Alexandra

  1. By: de Blasio, Guido (Bank of Italy); De Paola, Maria (University of Calabria); Poy, Samuele (Università Cattolica del Sacro Cuore); Scoppa, Vincenzo (University of Calabria)
    Abstract: This paper investigates the impact of risk attitudes on the decision to become an entrepreneur. In contrast to previous research, we handle endogeneity issues relying on an instrumental variables strategy considering as a source of exogenous variation in risk aversion the early exposure to a massive earthquake. Using several waves of the Bank of Italy Survey of Household Income and Wealth (SHIW), we find that individuals experiencing an earthquake become significantly more risk averse. Second-stage estimates show that risk aversion has a significant negative impact on the probability of becoming an entrepreneur.
    Keywords: entrepreneurship, risk attitudes, natural disasters, instrumental variables
    JEL: D81 D91 L26 C36
    Date: 2018–12
  2. By: Teita Bijedić; Alan Piper
    Abstract: Migrant enterprises comprise about 10% of all enterprises in Germany and are therefore a crucial part of the German economy and its entrepreneurial ecosystems. Relatedly, migrant entrepreneurship is a highly recognized topic within political discussions as well as within entrepreneurship research. While there is already an impressive body of work regarding the nature and quality of migrant enterprises, many questions regarding the personal motives and satisfaction of migrant entrepreneurs still remain unanswered (particularly with reference to gender and generation of migration). Using the German Socio-Economic Panel dataset, we close this research gap by investigating the job satisfaction of migrant entrepreneurs in Germany compared with native entrepreneurs, and also with conventionally employed migrants and natives. First generation migrants show, in general, less job satisfaction than the native population. Second generation male migrant entrepreneurs’ show less job satisfaction, however this association is reversed for females: second generation female migrant entrepreneurs are more satisfied with their self-employment than their native counterparts. These differing results lead to differing implications for policy makers who wish to create and develop entrepreneurial and labour market support for different target groups.
    Keywords: Migrant entrepreneurship, family firms, job satisfaction, intersectionality
    JEL: L26 J15 J16 J28
    Date: 2018
  3. By: Alexander Konon; Alexander Kritikos
    Abstract: The human personality predicts a wide range of activities and occupational choices—from musical sophistication to entrepreneurial careers. However, which method should be applied if information on personality traits is used for prediction and advice? In psychological research, group profiles are widely employed. In this contribution, we examine the performance of profiles using the example of career prediction and advice, involving a comparison of average trait scores of successful entrepreneurs with the traits of potential entrepreneurs. Based on a simple theoretical model estimated with SOEP data and analyzed with Monte Carlo methods, we show, for the first time, that the choice of the comparison method matters substantially. We reveal that under certain conditions the performance of average profiles is inferior to the tossing of a coin. Alternative methods, such as directly estimating success probabilities, deliver better performance and are more robust.
    Keywords: Advice, personality, entrepreneurship, profiles
    JEL: C15 D81 L26
    Date: 2018
  4. By: Della Giusta, Marina; Clot, Sophie; Razzu, Giovanni
    Abstract: We bridge the women entrepreneurship literature with the experimental economics literature on gender, with the aim to contribute a different perspective on the barriers and opportunities for women entrepreneurs, and one that we hope can help both fields by questioning some of the implicit assumptions that are often made (and used in policy) about the reasons for the differences observed between male and female headed businesses. In the course of the discussion we also revisit the definition of entrepreneur and the role of risk aversion in both neoclassical theory and in the identity perspective and draw implications in the context of the digital age and its potential to level the playing field between women and men in business venture.
    Keywords: women entrepreneurs, preferences, experiments
    JEL: D01 J24 J71
    Date: 2019
  5. By: Giovanni Marin (University of Urbino Carlo Bo, Italy; SEEDS, Italy); Marco Modica (Gran Sasso Science Institute, Italy; SEEDS, Italy)
    Abstract: The Great Recessions a ected the Italian economy in a particularly severe way in terms of GDP collapse, increase in the unemployment rate and also in terms of number of firms that left the market. Moreover, because of its peculiar structural features, that is characterized by a business sector composed prevalently by a large number of micro and small firms, the Italian economy results to be particularly exposed to recession periods, especially so when these periods are prolonged and hit many sectors in the economy. The aim of this paper is to evaluate the impact of the Great Recession on the survival of firms for universe of Italian individual firms. Our main contributions consist in the estimation of an indicator to capture the local demand shocks in order to infer about the link between local demand shock, firms' characteristics and hazard of exit. General results show that the conditional and unconditional hazard of exit is larger for female, old and foreign-born entrepreneurs. However, when considering the e ect of local demand shocks, this appears to be stronger for female, old, Italian entrepreneurs and for entrepreneurs located in highly- exposed labour market areas.
    Keywords: Resilience, Micro-firms, Survival, Great Recession
    Date: 2019–01
  6. By: Aghion, Philippe; Bergeaud, Antonin; Cette, Gilbert; Lecat, Rémy; Maghin, Hélène
    Abstract: In this paper we identify two counteracting effects of credit access on productivity growth: on the one hand, better access to credit makes it easier for entrepreneurs to innovate; on the other hand, better credit access allows less efficient incumbent firms to remain longer on the market, thereby discouraging entry of new and potentially more efficient innovators. We first develop a simple model of firm dynamics and innovation-base growth with credit constraints, where the above two counteracting effects generate an inverted-U relationship between credit access and productivity growth. Then we test our theory on a comprehensive French manufacturing firm-level dataset. We first show evidence of an inverted-U relationship between credit constraints and productivity growth when we aggregate our data at sectoral level. We then move to firm-level analysis, and show that incumbent firms with easier access to credit experience higher productivity growth, but that they also experienced lower exit rates, particularly the least productive firms among them. To confirm our results, we exploit the 2012 Eurosystem's Additional Credit Claims (ACC) program as a quasiexperiment that generated exogenous extra supply of credits for a subset of incumbent firms.
    Keywords: inverted-u relationship; credit; eurosystem
    JEL: J1 F3 G3
    Date: 2018–12
  7. By: Madaleno, Margarida; Nathan, Max; Overman, Henry; Waights, Sevrin
    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: L2 O32 R30 R58
    Date: 2018–09
  8. By: Lou Aisenberg; Stina Heikkilä; Antonella Noya; Filipe Santos
    Abstract: This report provides an in-depth analysis of the Dutch policy ecosystem in place for socialentrepreneurship and social enterprises. It identifies the country’s key strengths andchallenges and provides policy recommendations to support the development of a strongerpolicy ecosystem for social entrepreneurship and social enterprises in the country. Keypolicy issues analysed include: clarifying the conceptual framework (Chapter 2); formallyrecognising social enterprises and boosting social entrepreneurship (Chapter 3);promoting social impact measurement and reporting (Chapter 4); developing socialentrepreneurial capacity and skills (Chapter 5); improving access to markets and finance(Chapters 6 and 7); and ensuring sustainable institutional support for socialentrepreneurship and social innovation (Chapter 8).
    Keywords: local development, policy ecosystem, social economy, social enterprises, social entrepreneurship, social impact, social innovation
    JEL: L31 L33
    Date: 2019–01–29
  9. By: David, Alexandra
    Abstract: * UnternehmerInnen, die kulturelle Unterschiede nutzen, um Bekanntes in einem neuen Kontext umzusetzen oder denen es gelingt, aus widerspruchlichen Wissensstrangen neue Losungen/Businessideen zu entwickeln, zahlen zu den visionaren Zukunftsgruppen. * Darunter sind es vor allem migrantische UnternehmerInnen, die innovative Losungen in zunehmend multikulturellen und diversifizierten Gesellschaften finden. * Umso wichtiger ist es, migrantische UnternehmerInnen in ihren Vorhaben zu starken, nicht aus Not zu grunden, sondern Chancen zu erkennen, zu ergreifen und in einer unternhmerischen Aktivitat umzusetzen. * Empowerment gilt im Kontext des Inclusive Entrepreneurship als Selbstbefahigung, als Steigerung der Autonomie und des Selbstbewusstseins ebenso wie als Beitrag zur Identifizierung und Weiterentwicklung eigener Starken und Kompetenzen und ist somit ein gutes Instrument zur Starkung migrantischer Unternehmen. * Um Empowerment umzusetzen, braucht es Unterstutzungsinfrastrukturen, die ein verbessertes Zusammenwirken lokaler Akteure (migrantische Unternehmen, Kammern, IHKs, Wirtschaftsforderung etc.) langfristig forcieren und migrantische UnternehmerInnen in den ko-kreativen Prozess integrieren.
    Date: 2018

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