nep-ent New Economics Papers
on Entrepreneurship
Issue of 2019‒09‒09
seventeen papers chosen by
Marcus Dejardin
Université de Namur

  2. September 11 and the Rise of Necessity Self-Employment among Mexican Immigrants By Wang, Chunbei; Lofstrom, Magnus
  3. Synergizing Ventures By Ufuk Akcigit; Emin Dinlersoz; Jeremy Greenwood; Veronika Penciakova
  4. Role conflict, coping strategies and female entrepreneurial success in sub-Saharan Africa By Hundera, Mulu
  5. Crowdfunding Dynamics By Paul Belleflamme; Thomas Lambert; Armin Schwienbacher
  6. Intended and unintended effects of public incentives for innovation. Quasi-experimental evidence from Italy By Mellace, Giovanni; Ventura, Marco
  7. Assessing Financing, Innovation and Growth Linkage: New Evidence for Policy By Anabela Santos; Michele Cincera; Giovanni Cerulli
  8. Value-Capture in the Face of Known and Unknown Unknowns By Burkhard C. Schipper; Kevin Bryan; Michael Ryall
  9. Impact of entrepreneurship education on youth unemployment: A Case of Ummaru Ali Shinkafi Polytechnic Sokoto, Nigeria. By Amina Ahmad Kwaido
  10. Environmental innovation and firm profitability: An analysis with respect to firm size By Axenbeck, Janna
  11. Entrepreneurship and household food security in Malawi By Kankwamba, Henry; Kornher, Lukas
  12. Learning Management through Matching: A Field Experiment Using Mechanism Design By Abebe, Girum; Fafchamps, Marcel; Koelle, Michael; Quinn, Simon
  13. The Role of Commercial Bank in Financing Small Scale Industries By Ruth Asantewaa Owusu
  14. Farmers to Entrepreneurs By Di Falco, Salvatore; De Giorgi, Giacomo
  15. Effect of Active Learning Instructional Strategies on Pre-Service Chemistry Teachers Acquisition of Entrepreneurial Skills By CHINWE NJELITA
  16. Verankerung von Entrepreneurship Education in landwirtschaftlichen Hochschulstudiengängen in Deutschland By Huchtemann, Jan-Philipp; Theuvsen, Ludwig
  17. Unternehmertum und Entrepreneurship in der Landwirtschaft - eine empirische Untersuchung in Deutschland By Graskemper, Viktoria; Feil, Jan-Henning; Quiring, Andreas

  1. By: Daunfeldt, Sven-Olov (Institute of Retail Economics (Handelns Forskningsinstitut)); Westerberg, Hans (Institute of Retail Economics (Handelns Forskningsinstitut))
    Abstract: The number of refugees in Europe has increased dramatically in recent years, and many countries are facing great challenges to integrating these refugees into their societies. A small group of high-growth firms have at the same time attracted attention because they create the most new jobs at any given point in time. Using matched employer-employee data from Statistics Sweden, we find that these high-growth firms in general are more likely to recruit first-generation immigrants that are unemployed. This provides support for the hypothesis that managers in high-growth firms, to greater extents, recruit marginalized individuals because they want to take advantage of their growth opportunities and therefore do not wait for the best match. Rapidly growing firms are thus less selective in their hiring decisions, and policies that are focused on increasing the number of high-growth firms might also help immigrants who face difficulties entering the labor market.
    Keywords: Firm growth; Gazelles; High-growth firms; Immigration; Integration; Labor market; Matching models; Resource based theory; Interaction effects; Logit; Odds ratio
    JEL: D22 J15 L25 L26
    Date: 2019–08–30
  2. By: Wang, Chunbei (University of Oklahoma); Lofstrom, Magnus (Public Policy Institute of California)
    Abstract: Since the September 11 attacks (9/11), the U.S. has seen a tightening of immigration policies. Previous studies find that stricter immigration enforcement has the unintended effect of pushing undocumented immigrants into self-employment. This paper builds on the literature to better understand the changes in the types of self-employment among Mexican immigrants triggered by the tightened immigration enforcement after 9/11. Using a difference-in-differences approach, and the recently developed measures by Fairlie and Fossen [2018] to distinguish between necessity and opportunity self-employment, we find that both necessity and opportunity self-employment increased among Mexican immigrants after 9/11. However, the effect is most prominent on necessity self-employment, consistent with the hypothesis that they are pushed into self-employment as a survival alternative.
    Keywords: mexican immigrants, self-employment, 9/11, tightened immigration policies, necessity
    JEL: J15 L26
    Date: 2019–08
  3. By: Ufuk Akcigit; Emin Dinlersoz; Jeremy Greenwood; Veronika Penciakova
    Abstract: Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC-backing increases a startup’s likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture capitalists provide both expertise and financing for business startups, is constructed to match these facts. The presence of venture capital, the degree of assortative matching between startups and financiers, and the taxation of VC-backed startups matter significantly for growth.
    JEL: G24 O31 O32 O40
    Date: 2019–08
  4. By: Hundera, Mulu (Tilburg University, School of Economics and Management)
    Abstract: This dissertation shed light on the various issues related to role conflict, coping strategies and the success of female entrepreneurs in SSA. It did so by conducting four studies. The studies show that the female entrepreneurs experience role conflict in balancing social role expectations and entrepreneurial role demands. They cope with the role conflicts in various ways, which depend on the level of role conflict, stage of business where they are active and personal resources available. The coping strategies were also found to affect the female entrepreneurs’ success in business. Finally, the researcher recommends responsiveness to the issue of role conflict, particularly from gender stereotypic social role expectations. This can be done during the provision of business development services are provided to effectively empower women economically.
    Date: 2019
  5. By: Paul Belleflamme; Thomas Lambert; Armin Schwienbacher
    Abstract: Various forms of social learning and network effects are at work on crowdfunding platforms, giving rise to informational and payoff externalities. We use novel entrepreneur-backer data to study how these externalities shape funding dynamics, within and across projects. We find that backers decide to back a particular project based on past contributions not only to that project—as documented by prior work—but also to other contemporaneous projects—a novel result. Our difference-in-differences estimates indicate that such ‘cross-project funding dynamics’ account for 4-5% in the increase of contributions that projects generate on a daily basis. We show that recurrent backers are the main transmission channel of cross-project funding dynamics: by initiating social learning about project existence and quality, recurrent backers encourage future funding by other backers. Our results demonstrate that even though contemporaneous projects compete for funding, they jointly benefit from their common presence on the platform. We finally show that these crowdfunding dynamics stir platform growth, with important consequences for competition among platforms.
    Keywords: crowdfunding, digital platforms, FinTech, network effects, social learning
    JEL: D43 G23 L14 L26 L86
    Date: 2019
  6. By: Mellace, Giovanni (Department of Business and Economics); Ventura, Marco (Department of Economics and Law)
    Abstract: This paper provides an extensive empirical evaluation of a policy introduced in Italy at the end of 2012 to incentivize young innovative start-up firms. Using a Regression Discontinuity Design (RDD) we estimate the causal effects of the policy on the firms’ share of intangible assets, turnover, number of employees, and number of partners. Our results indicate that two years after its implementation the policy was effective only in increasing the number of partners, thus attracting private investments, but failed, at least in the short run, in boosting innovation or increasing employment. It follows that the new investors generated by the policy might have been attracted only by the tax benefit and had little interest in innovation.
    Keywords: Policy evaluation; regression discontinuity design; incentives to innovations
    JEL: C21 H32 L52 O31
    Date: 2019–08–28
  7. By: Anabela Santos; Michele Cincera; Giovanni Cerulli
    Abstract: Financing, innovation and growth linkage is a multi-stage process. First, access to finance has a leverage effect on innovation and secondly this additional innovation has an impact on growth. However, few authors have assessed the effect of these three components at the same time. Furthermore, the scientific literature usually focuses more on assessing only the effect of one type of source of financing, such as public support or venture capital, on innovation or firm growth. The aim of the present study is to go further and to assess the effect of eight different sources of financing (internal funds, bank loan, credit line, trade credit, grants, equity, leasing and factoring) on innovation and then on firm growth. Using data from the Survey on the Access to Finance of Enterprises and a three-step econometric approach, the study provides evidence that external sources of financing have a positive effect on innovation and then an additional effect on firm growth (turnover and employment). However, not all sources of external financing have the same impact.Equity financing has a larger effect on the strategic decision to innovate, and the highest output additionality on firm turnover growth, when compared to the effects of other sources of financing.Grants registered a moderate effect on innovation and on output additionality on firm growth (both turnover and employment) and its effect does not appear to be statistically different from other financing instruments (excluding equity). Moreover, grants show higher employment growth than turnover. Furthermore, the number of financing instruments used together also seems to matter, revealing that a financing instrument used alone has no effect on innovation. Our findings suggest that state aid to promote R&D and innovation needs to rely on sounder public/private support integration for it to be successful. All these conclusions could be particularly useful for policy-makers since recommendations for a European Innovation CouncilKeywordsFinancing; Innovation; Firm growth; Europe
    Keywords: Innovation, Microfinance, Microfinance in Europe
    Date: 2019
  8. By: Burkhard C. Schipper; Kevin Bryan; Michael Ryall (Department of Economics, University of California Davis)
    Abstract: A large theoretical literature on value capture following Brandenburger and Stuart (1996) uses cooperative games under complete information to study how and why firms earn supernormal profits. However, firms often have different information, beliefs, or creative foresight. We extend value capture theory to incomplete information (``known unknowns'') or unawareness (``unknown unknowns''), and illustrate some conceptual issues with that extension. Using the case study of Cirque du Soleil, we show how an entrepreneurial firm can profit even when it does not contribute materially to value creation.
    Keywords: cooperative games, unawareness, incomplete information, coarse core, business strategy, value-capture theory
    JEL: D21 D83 C71
    Date: 2019–08–28
  9. By: Amina Ahmad Kwaido (Umaru Ali Shinkafi Polytechnic Sokoto, Nigeria.)
    Abstract: Educational orientation of youths in Nigeria is white-collar job directed, which is one of the factors responsible for the youth unemployment in the country, because the educational system itself fails to empower the ones passing through it. To solve the problem of unemployment in this situation, there is need to reorient the youths to think of job creation away from the mindset of job seekers, by inculcating entrepreneurship skill into the youths and building their interests towards entrepreneurship, especially while they are still in school. The study examined the strength of entrepreneurship education on impacting the right skills and attitudes to students and determined the extent to which students exposed to entrepreneurial education are willing to undertake the establishment of their own enterprises. The methodology adopted was based on Descriptive survey design which relied on primary and secondary sources of gathering data, through the use of structured questionnaires. Two hundred (200) questionnaires were administered, and one hundred and fifty four (154) were returned. The study adopted simple random sampling technique. The data was analyzed and Presented using Descriptive statistics (frequencies, percentages) and chi-square was adopted to analyze data. The study shows that entrepreneurial education in Ummaru Ali Shinkafi polytechnic is effective in imparting entrepreneurial skills and attitudes to students as well as building their interests towards establishing their own businesses.The study recommends that tertiary institutions, government, parents and the international donors supporting higher education projects must work together to create an ecosystem of support including training, mentorship, and access to finance Start -up Capital should be provided through micro-finance banks and other specialized agencies to adequately empower young entrepreneurs. There is an urgent need for the government to provide an enabling environment in the forms of efficient and available basic infrastructural facilities.
    Keywords: Youth unemployment, Entrepreneurship, Entrepreneurship Education
    JEL: A23 A00 A19
    Date: 2019–07
  10. By: Axenbeck, Janna
    Abstract: This paper investigates the effect of environmental innovations on firm profitability with respect to differences between small and medium-sized (SME) and large (LE) enterprises. Using data from the Mannheim Innovation Panel (MIP) 2015, results show that, in general, SME benefit more from environmental innovations than LE. This effect is particularly strong for resource efficiency-improving innovations induced by regulation. These environmental innovations are significantly related to an increase in profits of SME, whilst related to a decrease in profits of LE. A robustness check with data from the MIP 2009, however, does not confirm this result as the effect for LE is insignificant and differences between the two groups cannot be found in this survey wave. A reason why negative effects for LE are observed in the MIP 2015 - but not in the MIP 2009 - might be that most LE had already exploited the potentials of environmental innovations when they were surveyed in the MIP 2015. This is supported by evidence suggesting that size-related differences in the MIP 2015 are driven by a negative relationship between LE's profits and environmental innovations related to externalities that were reduced by innovations in periods before.
    Keywords: Firm Behavior,Firm Size,Porter hypothesis,Environmental Technology Adaption,Technological Innovation,Environmental Regulation
    JEL: D22 L25 Q52 Q55 Q58
    Date: 2019
  11. By: Kankwamba, Henry; Kornher, Lukas
    Keywords: Agricultural and Food Policy
    Date: 2019–06–25
  12. By: Abebe, Girum (Policy Studies Institute); Fafchamps, Marcel (Stanford University); Koelle, Michael (University of Oxford); Quinn, Simon (University of Oxford)
    Abstract: We place young professionals into established firms to shadow middle managers. Using random assignment into program participation, we find positive average effects on wage employment, but no average effect on the likelihood of self-employment. We match individuals to firms using a deferred-acceptance algorithm, and show how this allows us to identify heterogeneous treatment effects by firm and intern characteristics. We find striking heterogeneity in self-employment effects, and show that some assignment mechanisms can substantially outperform random matching in generating employment and income effects. These results demonstrate the potential for matching algorithms to improve the design of field experiments.
    Keywords: propensity score, field experiments, management practices, self-employment, causal inference
    JEL: J24 J64
    Date: 2019–08
  13. By: Ruth Asantewaa Owusu (Saint Mary’s University, 923 Robie Street, Halifax Nova Scotia, Canada)
    Abstract: Bank finance has been found as an important source of funds for most firms in Ghana. The study assessed the impact of GCB SME LOAN on the activities of Small Scale Industries. The study used primary data which were designed and administered to SMEs customers of GCB and staff of GCB. A sample size of 170 made up of 20 staff of GCB bank and 150 owners of SME customers who deal with the bank and have benefited from the SME LOAN SUITE. The study concluded that with the use of GCB SME LOAN, there has been improvement in the profits of both the customers and bank. Also, the study identified four main challenges which were; increased in the amount of money, reduce interest rate, advertisement and extend the period of bridge loan that militate against the GCB SME LOAN of GCB bank. It was recommended that since GCB bank is contributing more to SMEs, they should give in their best to increase the amount of the loan and to extend the period of bridge loan to help boost their outreach.
    Keywords: SMEs, Economic Development, Bank finance
    Date: 2018
  14. By: Di Falco, Salvatore; De Giorgi, Giacomo
    Keywords: International Development
    Date: 2019–06–25
    Abstract: This study investigated the effect of active learning instructional strategies (ALIS) on pre-service chemistry teacher?s acquisition of entrepreneurial skills. The study adopted quasi-experimental design ? pre-test, post-test non-equivalent control group. The study was conducted in two colleges of education in the south-east geo-political zone of Nigeria. Purposive sampling was used based on proximity and class size using intact classes guide. Out of these two institutions selected, the pre-service chemistry teachers in one college of education were exposed to ALIS involving field trip, demonstration followed by projects as experimental group while the other institution served as control group exposed to conventional lecture method. One hundred and twenty (120) pre-service chemistry teachers were used for the study. Test on entrepreneurial skills acquisition (TOESA) developed by the researcher served as instrument for data collection. The face and content validity of the instrument were determined using two chemistry educators and specialist in education psychologist from researcher?s institution. The reliability of the instrument was established using Kuder-Richardson formula ? 21 which was established as 0.89. Mean and standard deviation were used to test the research questions. The hypotheses were tested at 0.05 level of significance using the Analysis of covariance (ANCOVA) statistics. The result of the study revealed that the selected ALIS enhance entrepreneurial skills acquisition amongst pre-service chemistry teachers. It also revealed that there is a statistical difference between the mean skill score of male and female pre-service chemistry teachers taught with selected ALIS and it is in favour of male pre-service chemistry teachers. Based on these findings, it was recommended that chemistry educators should apply the use of selected ALIS namely field trip, demonstration and projects strategies in their classroom instructions.
    Keywords: Active Learning Instructional Strategies, Pre-service Chemistry Teachers, Acquisition, Entrepreneurial Skills, Chemistry.
    Date: 2019–06
  16. By: Huchtemann, Jan-Philipp; Theuvsen, Ludwig
    Abstract: Unternehmerisches Denken und Handeln sind in Zeiten globaler und sich digitalisierender Märkte und Wertschöpfungsketten wichtige Fähigkeiten für landwirtschaftliche Unternehmer, Fach- und Führungskräfte im Agribusiness und Absolventen landwirtschaftlicher Hochschulstudiengänge. Politik, Wirtschaft und Verbände treiben aktuell die Vermittlung unternehmerischer Fähigkeiten durch eine intensive Förderung in verschiedenen Initiativen voran. Ein Schwerpunkt der Förderung zur Vermittlung unternehmerischer Fähigkeiten sind die Hochschulen mit agrarwissenschaftlichen Fakultäten. Bislang ist allerdings wenig über die curriculare Verankerung der sogenannten Entrepreneurship Education in landwirtschaftlichen Hochschulstudiengängen bekannt. Eine Analyse von Studiendokumenten und die anschließende Auswertung der Modulkataloge bzw. Modulhandbücher von insgesamt 103 landwirtschaftlichen Hochschulstudiengängen in Deutschland liefern erste Erkenntnisse zur curricularen Verankerung. Die Untersuchung offenbart, dass in lediglich 18 Studiengängen (17,5%) ein Bezug zu Entrepreneurship Education vorhanden ist. Dies deutet auf eine schwache curriculare Verankerung dieses Ausbildungsinhaltes hin. In Bezug auf die Hochschulart zeigt sich, dass mehr als 60% der Studiengänge mit Entrepreneurship Education-Bezug an Fachhochschulen angeboten werden und es sich dabei zu 61,1% um Bachelorstudiengänge handelt. Insgesamt konnten 26 Module mit Entrepreneurship-Bezug identifiziert werden. Diese sind zu 57,7% Module in Masterstudiengängen, welche allerdings nur zu 3,8% als Pflichtmodul Bestandteil der Ausbildung in den Studiengängen sind. Die vorliegende Untersuchung bildet den aktuellen Stand des Themas Entrepreneurship Education in agrarwissenschaftlichen Studiengängen in Deutschland ab und dient als Diskussionsgrundlage für mögliche Veränderungen in den Curricula der landwirtschaftlichen Hochschulstudiengänge in Deutschland.
    Keywords: Agribusiness, Labor and Human Capital, Teaching/Communication/Extension/Profession
    Date: 2019–08–26
  17. By: Graskemper, Viktoria; Feil, Jan-Henning; Quiring, Andreas
    Abstract: Die Phänomene Unternehmertum und Entrepreneurship gewinnen in der Landwirtschaft vor dem Hintergrund sich verändernder Rahmenbedingungen landwirtschaftlicher Produktion zunehmend an Bedeutung. Zur Untersuchung von Determinanten unternehmerischer Aktivität von Landwirten wird ein Modell entwickelt, das die unternehmerische Aktivität von Landwirten nach zunehmender Intensität in die Stufen Reduktion, Beibehaltung, Ausbau und Gründung (Entrepreneurship) unterteilt. Auf Grundlage einer quantitativen Erhebung unter landwirtschaftlichen Betriebsleitern in Deutschland (N = 807) werden mithilfe eines sequentiellen Logit-Modells die Effekte erhobener Faktoren auf die jeweils unterschiedlichen Stufen innerhalb dieses Modells auf Grundlage einer Selbsteinstufung explorativ untersucht. Hier sind es vor allem persönliche Faktoren, die die unternehmerische Aktivität von Landwirten auf verschiedenen Stufen unterschiedlich beeinflussen. Hinzu kommen Faktoren des familiären und institutionellen Umfelds sowie einzelne betriebliche Faktoren. Die Unterscheidung der verschiedenen Stufen ermöglicht die Ableitung konkreter Politikimplikationen.
    Keywords: Farm Management
    Date: 2019–08–26

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