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on Entrepreneurship |
| By: | Pedro Bento; Diego Restuccia |
| Abstract: | A well-documented observation of the U.S. economy in the last few decades has been the steady decline in the net entry rate of employer firms, a decline in business dynamism, suggesting a possible connection with the recent slowdown in aggregate productivity growth. We consider the role of nonemployers, businesses without paid employees, in business dynamism and aggregate productivity. Notwithstanding the decline in the growth of employer firms, we show that the total number of firms, which includes nonemployer businesses, has increased in the U.S. economy since the early 1980s. We interpret this trend, along with the evolution of the employment distribution across firms, through the lens of a standard theory of firm dynamics. The model implies that firm dynamics have contributed to an average annual growth rate of aggregate productivity of at least 0.26% since the early 1980s, over one quarter of the productivity growth of 1% in the data. Further, our implied measure of productivity growth moves closely over time with measured productivity growth in the data. |
| Keywords: | Nonemployers, employer firms, business dynamism, productivity, TFP. |
| JEL: | O1 O4 O5 E02 E1 |
| Date: | 2019–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-640&r=all |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN)); Stam, Erik (Utrecht School of Economics); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Trust and entrepreneurship are seen as key ingredients of long-term prosperity. However, it is not clear how these two are related. Part of the confusion can be traced back to the measurement of entrepreneurship, biased towards independent entrepreneurship (self-employed and new firms), and excluding entrepreneurship within established organizations. We shed new light on the relationship between trust and entrepreneurship, by proposing two mechanisms relating trust to entrepreneurship by employees, so-called intrapreneurship. We hypothesize that generalized trust influences the prevalence of intrapreneurship in an economy, and the allocation of entrepreneurial talents between independent entrepreneurship and intrapreneurship, through two mechanisms. First, generalized trust may substitute for complete contracts as a means of organizing labor in society, enabling a level of job autonomy in organizations necessary for intrapreneurship to flourish. Second, by way of its influence on the size and scope of the welfare state, generalized trust may increase the benefits of employment relative to self-employment, causing entrepreneurial individuals to elect to be intrapreneurs rather than independent entrepreneurs. Using a novel dataset, we find support for these hypotheses in a cross-country regression model covering the time period 2011–2017. |
| Keywords: | Trust; Intrapreneurship; Entrepreneurship; Entrepreneurial behavior; Institutions; Job autonomy; Welfare state |
| JEL: | H30 J20 J83 L26 M13 O12 O31 O43 O57 |
| Date: | 2019–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1280&r=all |
| By: | Martin Obschonka; David B. Audretsch |
| Abstract: | While the disruptive potential of artificial intelligence (AI) and Big Data has been receiving growing attention and concern in a variety of research and application fields over the last few years, it has not received much scrutiny in contemporary entrepreneurship research so far. Here we present some reflections and a collection of papers on the role of AI and Big Data for this emerging area in the study and application of entrepreneurship research. While being mindful of the potentially overwhelming nature of the rapid progress in machine intelligence and other Big Data technologies for contemporary structures in entrepreneurship research, we put an emphasis on the reciprocity of the co-evolving fields of entrepreneurship research and practice. How can AI and Big Data contribute to a productive transformation of the research field and the real-world phenomena (e.g., 'smart entrepreneurship')? We also discuss, however, ethical issues as well as challenges around a potential contradiction between entrepreneurial uncertainty and rule-driven AI rationality. The editorial gives researchers and practitioners orientation and showcases avenues and examples for concrete research in this field. At the same time, however, it is not unlikely that we will encounter unforeseeable and currently inexplicable developments in the field soon. We call on entrepreneurship scholars, educators, and practitioners to proactively prepare for future scenarios. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1906.00553&r=all |
| By: | Bishnupriya Gupta (University of Wawick); Dilip Mookherjee (Boston University); Kaivan Munshi (University of Cambridge); Mario Sanclemente (University of Warwick) |
| Abstract: | We argue that community networks played an important role in the emergence of Indian entrepreneurship in the early stages of the cotton textile and jute industry in the late 19th and early 20th century respectively, overcoming the lack of market institutions and government support. From business registers, we construct a yearly panel dataset of entrepreneurs in these two industries. We find no evidence of entry patterns being affected by price shocks or pre-industrial accumulation of wealth or experience in trading in the corresponding upstream sector. Firm directors exhibited a high degree of clustering of entrepreneurs by community. The dynamics of entry is consistent with a model of network-based dynamics. |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:bos:iedwpr:dp-318&r=all |
| By: | Richard Adu-Gyamfi (International Trade Centre, Switzerland); John Kuada (Aalborg University, Denmark); Simplice A. Asongu (Yaoundé, Cameroon) |
| 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; Development; Africa |
| JEL: | O10 O30 O55 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:18/025&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | Purpose- This study examines how doing business affects inclusive human development in 48 sub-Saharan Africa for the period 2000-2012. Design/methodology/approach- The measurement of inclusive human development encompasses both absolute pro-poor and relative pro-poor concepts of inclusive development. Three doing business variables are used, namely: the number of start-up procedures required to register a business; time required to start a business; and time to prepare and pay taxes. The empirical evidence is based on Fixed Effects and Generalised Method of Moments regressions. Findings- The findings show that increasing constraints to the doing of business have a negative effect on inclusive human development. Originality/value- The study is timely and very relevant to the post-2015 Sustainable Development agenda for two fundamental reasons: (i) Exclusive development is a critical policy syndrome in Africa because about 50% of countries in the continent did not attain the MDG extreme poverty target despite enjoying more than two decades of growth resurgence. (ii) Growth in Africa is primarily driven by large extractive industries and with the population of the continent expected to double in about 30 years, scholarship on entrepreneurship for inclusive development is very welcome. This is essentially because studies have shown that the increase in unemployment (resulting from the underlying demographic change) would be accommodated by the private sector, not the public sector. |
| Keywords: | Doing Business; Inclusive Development; Entrepreneurship; Africa |
| JEL: | M20 I30 O10 O30 O55 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:18/031&r=all |