|
on Entrepreneurship |
By: | Caliendo, Marco (University of Potsdam); Künn, Steffen (Maastricht University); Weissenberger, Martin (University of Potsdam) |
Abstract: | From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix. |
Keywords: | entrepreneurship, start-up subsidies, business growth, innovation, job creation |
JEL: | L26 M13 J68 |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12690&r=all |
By: | Stephen G. Dimmock; Jiekun Huang; Scott J. Weisbenner |
Abstract: | We study how access to high-skill labor affects the outcomes of start-up firms. We obtain exogenous variation in firms’ ability to access skilled labor by using win rates in H-1B visa lotteries. Relative to other firms that also applied for H-1B visas, firms with higher lottery win rates are more likely to receive additional venture capital funding and to have a successful exit via an IPO or acquisition. H-1B visa lottery winners also subsequently receive more patents and patent citations. Overall, our results show that access to high-skill labor is a critical determinant of success for start-up firms. |
JEL: | D22 G24 G32 J23 J24 J61 O3 |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26392&r=all |
By: | Robert W. Fairlie; Frank M. Fossen |
Abstract: | A proposed explanation for why business creation is often found to increase in recessions is that there are two components to entrepreneurship – “opportunity” and “necessity” – the latter of which is mostly counter-cyclical. Although there is some agreement on the conceptual distinction between these two factors driving entrepreneurship, there is little consensus in the literature on empirical definitions. The goal of this paper is to propose an operational definition of opportunity versus necessity entrepreneurship based on the entrepreneur’s prior work status (i.e. based on previous unemployment) that is straightforward, based on objective information, and empirically feasible using many large, nationally representative datasets. We then explore the validity of the definitions with theory and empirical evidence. Using datasets from the United States and Germany we find that 80-90 percent of entrepreneurs are opportunity entrepreneurs. Applying our proposed definitions, we document that opportunity entrepreneurship is generally pro-cyclical and necessity entrepreneurship is strongly counter-cyclical both at the national levels and across local economic conditions. We also find that opportunity vs. necessity entrepreneurship is associated with the creation of more growth-oriented businesses. The operational definitions of opportunity and necessity entrepreneurship proposed here may be useful for distinguishing between the two types of entrepreneurship in future research. |
JEL: | J23 J64 L26 |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26377&r=all |
By: | Charles Amoyea Atogenzoya (Ca' Foscari University of Venice); Anna Comacchio (Ca' Foscari University of Venice) |
Abstract: | Using a multiple-case study approach of nine social enterprises operating in Ghana and Ivory Coast, this study looks in depth at the nature of social-business tensions in micro and small social enterprises (SEs) in challenging environments such as those found in developing countries and the strategies that are adopted to manage those tensions. Through our multiple-case analysis, we show that micro and small SEs experience tensions in the areas of mission, acquisition of fundamental resources, legal form, allocation of resources and human resources management. The study also reveals that owner-managers of micro and small SEs adopt various strategies within the aggregate dimensions of ?integration and differentiation? strategies to respond to social-business tensions by having a well-defined social mission, image management, leveraging resources from unrestricted sources among others. The study contributes to the growing interest in how hybrid organisations can remain committed to their social mission whilst sustaining effective operations. |
Keywords: | Social Entrepreneurship; Dual Goals; Hybrid Organisations; Paradox Theory; Mission Drift |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:8612069&r=all |
By: | Aniceth Kato Mpanju (Tanzania Institute of Accountancy) |
Abstract: | The major purpose of this paper is to analyze the impact of microfinance services on SME?s performance in Dar-es-Salaam region, Tanzania. Using a sample of 350 SMEs, the study adopted a descriptive-correlation research design an econometric analysis using statistical package for social sciences (SPSS) version 24. The results show that microfinance services in the form of financial intermediation and enterprise development had to a large extent adequate to small and medium-sized entrepreneurs. Then from above analysis we may conclude that there existed a strong relationship between the extent of microfinance services and the performance of SMEs and that microfinance services influenced the performance of the SMEs in the Dar-es-Salaam region. |
Keywords: | Microfinance services, SMEs, Microfinance institutions, Financial literacy and enterprise development |
JEL: | G29 |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9412214&r=all |
By: | Sirisuhk Rakthin (College of Management, Mahidol University); Nattawat Pisitsupakarn (College of Management, Mahidol University); Karuna Aksaravut (College of Management, Mahidol University) |
Abstract: | Successful organization, in any size or type, must have engaged employees who have high potential, positive attitude, and devotion to do their job well. Employee engagement became more vital to small and medium-sized enterprises (SMEs) since they posses much fewer resources than large organizations. In Thailand, there are currently 2.9 million SMEs, which account for 99.6% of all business entities and employ 10.5 million people, or 77.8% of total Thai workforce. Although SMEs play a critical role in Thai Economy, most Thai SMEs still face many challenges ? limited competency and accessibility to sources of funds, IT competency, government business promotions services, and global markets. Limited resource accessibility for SMEs results in high employee turnover rate. Consequently, it is vital that Thai SMEs should adopt meaningful HR management tools to improve their long-term business sustainability. This research study aims to explore how employee?s 1) self-leadership, 2) interpersonal leadership, 3) process leadership, 4) adaptability, and 5) remuneration satisfaction could influence employee engagement in Thai SMEs. Also, the mediating effects of job satisfaction in these relationships are examined. Data have been collected via questionnaires from 497 employees in Thai SMES and hypotheses were tested using the partial least squares structural equation modeling (PLS-SEM). The results indicate that employee?s 1) self-leadership, 2) interpersonal leadership, 3) adaptability, and 4) satisfaction on existing remuneration have positive impacts on employee engagement. In addition, our results demonstrate that job satisfaction partially mediates relationships between 1) interpersonal leadership and 2) remuneration satisfaction and the SMEs? employee engagement. The research study demonstrates the value of employees? leadership, adaptability and satisfaction in increasing employee engagement, particularly in SMEs context. The research result can pave a path for better HR management in Thai SMEs, e.g., leadership training, compensation package design, and etc. |
Keywords: | Leadership, Employee Engagement, Job Satisfaction, SMEs, Thailand |
JEL: | J28 C30 M10 |
Date: | 2019–10 |
URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9412219&r=all |
By: | Antonia Grohmann; Lukas Menkhoff; Helke Seitz |
Abstract: | This RCT examines the effect of a new style finance training during which participants are given personalized feedback on their financial business outcomes in addition to a “rules-of-thumb” training approach. We compare this to the effects of a “rules-of-thumb” training by itself and to a control group. Targeting about 500 small and micro entrepreneurs in Kampala, Uganda, we find that the personalized feedback training significantly improves outcomes at the six-months horizon. The index of primary outcomes increases by 0.258 SD units and overall savings improve by 0.257 SD units. Analyzing the feedbacks provided we find evidence that feedback works by increasing motivation, in line with “feedback-intervention-theory.” |
Keywords: | Financial Training, Feedback, Small Business Growth, Economic Development |
JEL: | O12 D22 O16 L26 |
Date: | 2019 |
URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1823&r=all |
By: | Théo Nicolas |
Abstract: | This paper investigates the real effects of short-term financial constraints in the light of the working capital channel: cash credit constraints may force SMEs to forgo investment opportunities in order to finance their working capital needs. Building on unique indicators of cash and investment credit constraints derived from survey data, I find that: (1) short-term credit constraints are as important as long-term ones in SMEs' investment decisions; (2) the detrimental effect of cash credit constraints on corporate investment is even stronger for firms with higher working capital needs; (3) the negative relationship between working capital and fixed investment is associated with short-term financial frictions; and (4) only liquid SMEs are able to offset short-term financial frictions by adjusting their accounts receivable and inventories. |
Keywords: | : Investment, Bank credit, Financial constraints, Working capital, Survey data. |
JEL: | D82 E32 E51 G01 G21 |
Date: | 2019 |
URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:731&r=all |
By: | Mickaël Cita (CREDDI - Centre de Recherche en Economie et en Droit sur le Développement Insulaire - UA - Université des Antilles) |
Abstract: | It's not easy to evaluate small firm performance. With this few words we try to understand more how function a small firm and try evaluate the performance. We try to make tool to do it. |
Abstract: | La performance des micro-entreprises est souvent vu comme négligeable et pas toujours très reconnu, au travers de cet article nous allons essayer de mieux comprendre la performance que réalise celles-ci. Pour y parvenir il est important de faire une revue de la littérature sur la performance et en particulier la performance dans les microentreprises et les PME. |
Keywords: | small firm,PME,Microentreprise,performance,RUP |
Date: | 2019–10–11 |
URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02311502&r=all |
By: | Aurore Haas (Skema Business School - SKEMA Business School); Alexis Pokrovsky (Institut Supérieur du Commerce - ISC PARIS) |
Abstract: | Le secteur culturel français est confronté à des bouleversements économiques et institutionnels majeurs. L'entrepreneuriat culturel et créatif semble une voie prometteuse pour répondre à ces enjeux. Cependant, son accompagnement pose question:en effet il suppose de concilier les impératifs de la création artistique avec la logique économique d'exploitation d'une opportunité. Les recherches récentes sur l'accompagnement soulignent la nécessité de créer des dispositifs organisationnels et matériels adaptés permettant de développer les compétences,à l'instar des communautés de makers et des espaces de co-working. Or, la nature matérielle des dispositifs d'accompagnement est peu étudiée. En traitant la nature matérielle sous l'angle de deux dimensions, le lieu et les proximités, notre article se propose ainsi d'étudier le rôle des dispositifs matériels sur l'accompagnement des activités entrepreneuriales dans le cadre d'un incubateur du secteur créatif et culturel.L'étude de cas porte sur un cas unique en France, le 104Factory, un incubateur situé à Paris et rattaché à un établissement culturel, le 104. Notre recherche s'appuie sur une série d'entretiens menés avec des entrepreneurs hébergés au 104Factory. Notre étude met en évidence le rôle ambidextre des proximités et du lieu dans l'accompagnement des entrepreneurs culturels et créatifs. |
Keywords: | entrepreneur,accompagnement,proximité,incubateur |
Date: | 2018–06 |
URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02313756&r=all |