nep-ent New Economics Papers
on Entrepreneurship
Issue of 2020‒02‒24
eight papers chosen by
Marcus Dejardin
Université de Namur

  1. Peer Networks and Entrepreneurship: A Pan-African RCT By Vega-Redondo, Fernando; Pin, Paolo; Ubfal, Diego; Benedetti-Fasil, Cristiana; Brummitt, Charles; Rubera, Gaia; Hovy, Dirk; Fornaciari, Tommaso
  2. How Institutions Influence Women Entrepreneurship? By Deepika Dixit; Anubha Shekhar Sinha
  3. Foreign Direct Investment and Female Entrepreneurship By Fang,Sheng; Shamseldin,Heba M.M.; Xu,L. Colin
  4. Selection and Absolute Advantage in Farming and Entrepreneurship By Alvarez-Cuadrado, Francisco; Amodio, Francesco; Poschke, Markus
  5. Basel III Implementation and SME Financing : Evidence for Emerging Markets and Developing Economies By Fisera,Boris; Horvath,Roman; Melecky,Martin
  6. Lights Off, Lights On : The Effects of Electricity Shortages on Small Firms By Hardy,Morgan L.; Mccasland,Jamie Lee
  8. Supporting Self-Employment as a Reemployment Strategy: Impacts of a Pilot Program for Dislocated Workers After 18 Months By Heinrich Hock; Mary Anne Anderson; Robert Santillano

  1. By: Vega-Redondo, Fernando (Universidad de Alicante); Pin, Paolo (Bocconi University); Ubfal, Diego (Bocconi University); Benedetti-Fasil, Cristiana (European University Institute); Brummitt, Charles (Harvard University); Rubera, Gaia (Bocconi University); Hovy, Dirk (Bocconi University); Fornaciari, Tommaso (Bocconi University)
    Abstract: Can large-scale peer interaction foster entrepreneurship and innovation? We conducted an RCT involving almost 5,000 entrepreneurs from 49 African countries. All were enrolled in an online business course, and the treatment involved random assignment to either face-to-face or virtual (Internet-mediated) interaction. We find positive treatment effects on both the submission of business plans and their quality, provided interaction displays some intermediate diversity. Network effects are also significant on both outcomes, although diversity plays a different role for each. This shows that effective peer interaction can be feasibly implemented quite broadly but must also be designed carefully, in view of the pursued objectives.
    Keywords: social networks, peer effects, entrepreneurship, innovation, semantic analysis
    JEL: C93 D04 D85 O12 O31 O35
    Date: 2019–12
  2. By: Deepika Dixit (Indian Institute of Management Kozhikode); Anubha Shekhar Sinha (Indian Institute of Management Kozhikode)
    Date: 2020–02
  3. By: Fang,Sheng; Shamseldin,Heba M.M.; Xu,L. Colin
    Abstract: Using World Bank Enterprise Survey data around the world, this paper examines how foreign direct investment is associated with female entrepreneurship (that is, a firm being managed and at least partly owned by women), along with other factors such as business environment and female empowerment, and their interactions with foreign direct investment. Female entrepreneurship rises with foreign direct investment inflow, lower entry barriers for women, women's better access to finance, higher female labor force participation, and women's better education. The positive association of foreign direct investment inflow and female entrepreneurship is stronger for firms in the service sectors and small firms. The horizontal competition effects of intra-industry foreign direct investment for female entrepreneurship are reduced when women face lower entry barriers for starting a business and have a higher labor force participation rate, and the effects do not depend on women's access to finance or their level of education.
    Date: 2019–12–16
  4. By: Alvarez-Cuadrado, Francisco (McGill University); Amodio, Francesco (McGill University); Poschke, Markus (McGill University)
    Abstract: Output per worker is lower in poor countries than in rich countries, and relatively more so in the agricultural sector. Sorting of heterogeneous workers can contribute to explain this fact if comparative and absolute advantage are aligned in agriculture, implying that average productivity in agriculture increases as the agricultural employment share decreases. We empirically investigate the correlation between comparative and absolute advantage using representative household-level panel data from four Sub-Saharan African countries. Around one third of households engage in both agriculture and non-farming entrepreneurship. We find that more productive farming households are more likely to also engage in non-farm entrepreneurship, allocate more hours to it if they do, and are more likely to enter it if not yet active. All three pieces of evidence imply that comparative and absolute advantage are negatively correlated – misaligned – in agriculture, casting doubt on the importance of selection as a root cause of the agricultural productivity gap.
    Keywords: agricultural productivity gap, selection, entrepreneurship, Africa
    JEL: J24 J31 J43 L26 O11 O13 O40
    Date: 2019–12
  5. By: Fisera,Boris; Horvath,Roman; Melecky,Martin
    Abstract: This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises'access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion?firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies.
    Date: 2019–12–02
  6. By: Hardy,Morgan L.; Mccasland,Jamie Lee
    Abstract: Entrepreneurs in developing countries report that unreliable electricity imposes a serious constraint, yet little evidence exists on how blackouts impact the micro firms that account for the majority of employment. This paper estimates the effects of outages on small firms using original firm-level panel data and finds evidence of differential effects by firm size. Firms without employees experience large reductions in revenues and profits. Outages have no measurable effect on the output of firms with employees, where worker hours increase, weekly wages paid decrease, and the analysis fails to reject that blackouts have no effect on (average firm-level) worker hourly wages.
    Date: 2019–12–19
  7. By: Reham Rizk (British University in Cairo); Ali Rashed (Economic Research Forum)
    Abstract: This paper conducts a detailed analysis of the trends and patterns of women’s role in household non-agricultural enterprises in Egypt. The paper uses the Egypt Labor Market Panel Survey (ELMPS) waves of 1998, 2006, 2012 and 2018. First, the paper examines whether households have enterprises and how this varies across female and male-headed households over time. Second, it investigates whether men and women own enterprises and how this differs by their characteristics. Third, it investigates the characteristics of women-owned enterprises vis-à-vis men. Finally, it examines the gendered patterns of participation in enterprises. The findings demonstrate that women are less likely to engage in or own non-agricultural enterprises than men. Although the trend in participation in enterprises has been declining for men, it has been flat for women. Women-owned enterprises are more likely to be informal, have less capital, and be homebased
    Date: 2019–11–20
  8. By: Heinrich Hock; Mary Anne Anderson; Robert Santillano
    Abstract: The Self-Employment Training (SET) pilot program was funded by the U.S. Department of Labor to test strategies for supporting dislocated workers interested in starting their own businesses. This report presents results from an evaluation of SET’s impacts on enrollee outcomes.
    Keywords: Self-Employment Training (SET), pilot program, dislocated workers, self-employment, unemployment, underemployment, reemployment, case management, entrepreneurial training, microenterprise development

This nep-ent issue is ©2020 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.