nep-ent New Economics Papers
on Entrepreneurship
Issue of 2020‒09‒07
sixteen papers chosen by
Marcus Dejardin
Université de Namur

  1. Corporate taxes and high-quality entrepreneurship: evidence from a tax reform By Ana Venâncio; Victor Barros; Clara Raposo
  2. Spouses, Children and Entrepreneurship By Joao Galindo da Fonseca; Charles Berubé
  3. Skilled Human Capital and High-Growth Entrepreneurship: Evidence from Inventor Inflows By Benjamin Balsmeier; Lee Fleming; Matt Marx; Seungryul Ryan Shin
  4. Initial Impact of the COVID-19 Pandemic on the Employment and Hours of Self-Employed Coupled and Single Workers by Gender and Parental Status By Kalenkoski, Charlene M.; Pabilonia, Sabrina Wulff
  5. Immigrant Entrepreneurs as Job Creators: The Case of Canadian Private Incorporated Companies By Picot, Garnett; Rollin, Anne-Marie
  6. Geographical contexts of entrepreneurship: Spaces, places and entrepreneurial agency By Stam, Erik; Welter, Friederike
  7. Small Business Survival Capabilities and Policy Effectiveness: Evidence from Oakland By Robert P. Bartlett III; Adair Morse
  8. EntreComp Playbook. Entrepreneurial learning beyond the classroom. By Margherita BACIGALUPO; Lilian WEIKERT GARCIA; Yashar MANSOORI; William O’KEEFFE
  9. EntreComp at Work: The European Entrepreneurship Competence Framework in action in the labour market: a selection of case studies. By Elin McCALLUM; Lisa McMULLAN; Rebecca WEICHT; Stefano Kluzer
  10. Financial Support to Innovation: the Role of European Development Financial Institutions By Stefano CLÃ’; Marco FRIGERIO; Daniela VANDONE
  11. The Targeting and Impact of Paycheck Protection Program Loans to Small Businesses By Alexander W. Bartik; Zoe B. Cullen; Edward L. Glaeser; Michael Luca; Christopher T. Stanton; Adi Sunderam
  12. Skills Training and Business Outcomes: Experimental Evidence from Liberia By Ana Dammert; Aisha Nansamba
  13. The Decline of Small Cities: Increased Competition from External Shopping Malls or Long-Term Negative Trends? By Daunfeldt, Sven-Olov; Mihaescu, Oana; Rudholm, Niklas
  14. Pour une meilleure appréhension de la variété des trajectoires d’internationalisation des entreprises artisanales By Catherine Thevenard-Puthod
  15. Zukunftspanel Mittelstand 2020: Update der Expertenbefragung zu aktuellen und zukünftigen Herausforderungen des deutschen Mittelstands By Brink, Siegrun; Levering, Britta; Icks, Annette
  16. De l'entrepreneur et de l'entrepreneuriat By Yvon Pesqueux

  1. By: Ana Venâncio; Victor Barros; Clara Raposo
    Abstract: We examine the impact of corporate taxation on entrepreneurship, using a quasi-natural experiment, which substantially reduced the corporate tax rate for start-ups located in inland municipalities in Portugal. The combination of a high quality and universal firm level database for Portugal allows the detailed study of firm's behaviour. We use BPlim’s harmonized Central Balance Sheet panel for the period of 2006 to 2015 to evaluate the different behaviour of exporters and non-exporters in Portugal. We follow on the self-selection and learning-by-exporting literature, estimating several exporter productivity premiums. After finding solid evidence of a productivity advantage of exporters compared to non-exporters, which seems to emerge several years before firms start to export, we expand our study in order to explore the causality of the previous findings. Thus, we estimate a logit fixed effects model to assess the impact of several variables in the export propensity of a firm. We corroborate the self-selection theory, given the significance of labour productivity in probability of a firm exporting, as well, as significant effects of firm absolute size, relative market share, sector concentration and investment.
    Keywords: Firm entry; Job creation; Tax policy; Corporate taxes; High-quality entrepreneurship
    JEL: H24 H26 J24 L26 M13 H25
    Date: 2020–01
  2. By: Joao Galindo da Fonseca (Université de Montréal and CIREQ); Charles Berubé (Innovation, Science and Economic Development Canada)
    Abstract: We develop a model of endogenous entrepreneurship and marriage. Spouses influence entrepreneurship via three channels: they reduce benefits by working less the more profitable the business is, they reduce costs by working more in case of business failure, and children, associated with a spouse, increase the cost of failure. We use administrative matched owner-employer-employee spouse data to estimate the specifications derived from our model. The model is informative on the sources of endogeneity and the IV strategy. We show that higher marriage rates induce less entry but larger firms on average. Through the lens of our model, marriage increases firm productivity.
    Keywords: labor markets, family economics, macroeconomics, firm dynamics
    JEL: E24 E23 J12 J60
    Date: 2020–04
  3. By: Benjamin Balsmeier; Lee Fleming; Matt Marx; Seungryul Ryan Shin
    Abstract: To what extent does high-growth entrepreneurship depend on skilled human capital? We estimate the impact of the inflow of inventors into a region on the founding of high-growth firms, instrumenting mobility with the county-level share of millions of inventor surnames in the 1940 U.S. Census. Inventor immigration increases county-level high-growth entrepreneurship; estimates range from 29-55 immigrating inventors for each new high-growth firm, depending on the region and model. We also find a smaller but significant negative effect of inventor arrival on entrepreneurship in nearby counties.
    JEL: J24 J61 L26
    Date: 2020–07
  4. By: Kalenkoski, Charlene M. (Texas Tech University); Pabilonia, Sabrina Wulff (U.S. Bureau of Labor Statistics)
    Abstract: This study examines the initial impact of COVID-19 shutdowns on the employment and hours of unincorporated self-employed workers using data from the Current Population Survey. Although the shutdowns decreased employment and hours for all groups, differential effects by gender, couple status, and parental status exist. Coupled women were less likely to be working than coupled men, while single women were more likely to be working than single men. However, fathers of school-age children who remained employed were working reduced hours compared to men without children. Remote work mitigated some of the negative effects on employment and hours.
    Keywords: COVID-19, coronovirus, self-employment, entrepreneurship, gender, remote work, working from home, labor supply, child care
    JEL: D1 J1 J16 J2 J23
    Date: 2020–07
  5. By: Picot, Garnett; Rollin, Anne-Marie
    Abstract: Using data from Statistics Canada’s Canadian Employer–Employee Dynamics Database (CEEDD), this paper has three objectives: (1) determining how the number of jobs created or destroyed by immigrant-owned private incorporated companies compared with that of firms with Canadian-born owners, (2) determining whether immigrant-owned firms were more likely than firms with Canadian-born owners to be high growth firms or rapidly shrinking firms, and (3) determining which immigrant characteristics were associated with a higher likelihood of immigrant-owned firms being high growth firms or rapidly shrinking firms. This paper addresses gross job creation (jobs created by expanding continuing firms and entering firms), gross job destruction (jobs terminated by contracting continuing firms and exiting firms), and net job change (the difference between gross job creation and gross job destruction).
    Keywords: Job departures, Job creation, Immigrants, Entrepreneurs
    Date: 2019–04–24
  6. By: Stam, Erik; Welter, Friederike
    Abstract: This chapter focuses on contexts of entrepreneurship, in particular geographical contexts, and entrepreneurial agency. The twin concepts space and place are key in understanding geographical contexts for entrepreneurship, not least because place does not exist without physical space. Important research in this regard has touched upon the role of gendered places and spaces for entrepreneurship, social places such as families, households and neighbourhoods and explored new spaces for entrepreneurship such as makerspaces. We combine these spaces and places in a model of entrepreneurial ecosystems that allows us to focus simultaneously on the geographical contexts for entrepreneurship and the agency of entrepreneurs within those. The chapter ends with a future research agenda on geographical contexts for entrepreneurship.
    Date: 2020
  7. By: Robert P. Bartlett III; Adair Morse
    Abstract: Using unique City of Oakland data during COVID-19, we document that small business survival capabilities vary by firm size as a function of revenue resiliency, labor flexibility, and committed costs. Nonemployer businesses rely on low cost structures to survive 73% declines in own-store foot traffic. Microbusinesses (1-to-5 employees) depend on 14% greater revenue resiliency. Enterprises (6-to-50 employees) have twice-as-much labor flexibility, but face 11%-to-22% higher residual closure risk from committed costs. Finally, inconsistent with the spirit of Chetty-Friedman-Hendren-Sterner (2020) and Granja-Makridis-Yannelis-Zwick (2020), PPP application success increased medium-run survival probability by 20.5%, but only for microbusinesses, arguing for size-targeting of policies.
    JEL: E61 G38 H32 J65 L26
    Date: 2020–07
  8. By: Margherita BACIGALUPO (European Commission - JRC); Lilian WEIKERT GARCIA (Espacio Res); Yashar MANSOORI; William O’KEEFFE (European Commission, Directorate General for Employment, Social Affairs and Inclusion (DG EMPL))
    Abstract: This playbook targets primarily learning facilitators who operate outside the formal education system. It aims to help them design and facilitate entrepreneurial learning activities in meaningful ways. The playbook can be applied in many setting: developing entrepreneurial competences in adults to increase their employability, up-skilling to face the changing needs of the labour market, career progression, support actors of change, as well as business start-ups within or outside existing ventures. The playbook can be used by the private, the public and the third sector alike. No two entrepreneurial learning activities will be alike, nor can an algorithm be scripted to produce the perfect intervention. Even when a format is defined, each learning group, each context bears its own circumstances and a facilitator will have to adapt and make the most of such circumstances. This playbook therefore is not a process guide: it rather provides readers with a selection of orientation tools for them to experiment and create their own map to entrepreneurial teaching and learning. The playbook sets out nine principles that any entrepreneurial learning facilitator should consider when designing entrepreneurial teaching and learning. It also describes three popular entrepreneurial methods and three pedagogical methods that can be adapted to foster entrepreneurial learning. The entrepreneurial methods give explicit guidance to practitioners to create value for others. They establish a logic that structures thought and action, by prescribing steps and offering tools to be used at each stage of the entrepreneurial process. The methods are based in both research and theory as well as in the practices of real-life entrepreneurs. The pedagogical methods, alike, aim to guide teachers and trainers cultivate EntreComp competences including perseverance, resilience, self-efficacy, creativity, teamwork and sensitivity to ethical and sustainability consequences of actions. They all aim at fostering learning through experiences, offering learners something to act upon, such as a problem or a challenge, they rely on questioning and inquiry and promote a growth mind-set. The list of methods is not exhaustive or comprehensive, but offers the readers a range of alternative approaches to explore, combine and experiment. Each of the methods can be adapted with the nine principles to help structure practical value creation experiences for learners to become more entrepreneurial. The final section of this playbook lists techniques, templates and tools to help learning facilitators design "situated" learning activities to help learners to become more entrepreneurial. The playbook is intended as learning exercise itself for those that have little or no experience in designing practical entrepreneurial experience. The playbook is built on the experiments, resilience, perseverance and lessons learned by users of EntreComp.
    Keywords: employability, key competences, labour market intermediaries, entrepreneurship
    Date: 2020–08
  9. By: Elin McCALLUM (Bantani Education); Lisa McMULLAN (The Women’s Organisation); Rebecca WEICHT (Bantani Education); Stefano Kluzer
    Abstract: Today’s world is characterised by volatility, uncertainty, complexity and ambiguity. Technological developments are redefining the nature of work, transferring tasks from humans to algorithms or robots. Demographic trends, globalisation, climate change, are also contributing to rapid transformations of labour markets. To thrive in world where technology is pervasive and fast evolving, problems are wide-raging and challenges global, both individuals and collective entities, such as companies or public bodies, need to develop new competences that secure their resilience in the face of a fast changing economy and society. Being able to adapt to change, working well in teams, using office software, assisting customers, using a computer, solving problems, communicating well, being creative and able to prioritise and managing projects are often listed among the skills for the future. These are embedded in the knowledge, skills and attitudes that the 2018 Recommendation on Key Competences for Lifelong Learning has identified as critical for citizens not only to cope with fast changing labour markets, but also to be active contributors to more resilient societies. In particular, they relate to digital and entrepreneurship competences. To support these two competences the European Commission has published two reference frameworks, the Digital Competence Framework for Citizens, also known as DigComp , and the Entrepreneurship Competence Framework, known as EntreComp. EntreComp at Work focuses on how EntreComp is being used for the provision of services supporting individuals to progress towards and participate in labour market activities or entrepreneurial ventures. Presenting 10 case studies, this publication provides insights into actual uses of EntreComp to address the entrepreneurial skills challenge that Labour Market Intermediary organisations (LMI) face in support individuals in a journey towards sustainable employment.
    Keywords: employability, key competences, labour market intermediaries, entrepreneurship
    Date: 2020–08
  10. By: Stefano CLÃ’; Marco FRIGERIO; Daniela VANDONE
    Abstract: This paper explores the role of Development Financial Institutions (DFIs) in supporting innovation by facilitating the access to finance for start-ups and high-growth small and medium enterprises. After having mapped the population of DFIs in Europe, we benchmark their portfolio of equity deals to those of other European financial institutions (venture capital and private equity). We build a unique sample of European 12,437 Mergers and Aquisitions within the 2008–2017 period and for each target company we match the related patenting and economic data. We obtain a dataset of 80,713 yearly observations which allows us to empirically analyse the pre and post-deal patenting activity of companies targeted by both DFIs and other financial institutions. Our findings show that the target company patenting performance improves after receiving the support of financial institutions, and this effect is on average higher when DFIs participate to the equity deal. We also find that partnerships among DFIs and other financial institutions are associated with the best patenting performance of the target companies. These results are confirmed when a propensity score matching technique is adopted to address biases associated to the potential endogenous selection of the target company.
    Keywords: Development banking;Development Financial Institutions;public-private partnership; equitydeals; patenting activity; financial support to innovation
    Date: 2020
  11. By: Alexander W. Bartik; Zoe B. Cullen; Edward L. Glaeser; Michael Luca; Christopher T. Stanton; Adi Sunderam
    Abstract: The Paycheck Protection Program (PPP) aimed to quickly deliver hundreds of billions of dollars of loans to small businesses, with the loans administered via private banks. In this paper, we use firm-level data to document the demand and supply of PPP funds. Using an instrumental variables approach, we find that PPP loans led to a 14 to 30 percentage point increase in a business’s expected survival, and a positive but imprecise effect on employment. Moreover, the effects on survival were heterogeneous and highlight an important tradeoff faced by policymakers: while administering the loans via private banks allowed for rapid delivery of funds, it also limited the government’s ability to target the funding - instead allowing pre-existing connections between businesses and banks to determine which firms would benefit from the program.
    JEL: D22 G01 G2 L26 M13
    Date: 2020–07
  12. By: Ana Dammert; Aisha Nansamba
    Abstract: This paper explores whether skills training in business performance and customer practices was a promising way to increase business outcomes among self-employed workers who operate small businesses in developing countries. We randomized training in business-management skills and business and inter-personal skills among BRAC’s Small Enterprise Programme firm owners in Liberia. We found that firm owners who received either training experienced an increase in attention to customers, which consequently enhanced the performance of the businesses, including higher average monthly revenue, less loss of customers, and a smaller likelihood of encountering business losses. Customers, however, reported no effect on their customer experiences.
    Keywords: RCT, SME, Liberia
    JEL: C93
    Date: 2019
  13. By: Daunfeldt, Sven-Olov (Institute of Retail Economics (Handelns Forskningsinstitut)); Mihaescu, Oana (Institute of Retail Economics (Handelns Forskningsinstitut)); Rudholm, Niklas (Institute of Retail Economics (Handelns Forskningsinstitut))
    Abstract: We use the entry of 17 external shopping malls in Sweden to investigate how they have affected the performance of incumbent firms located in the city centres of small cities. We find that entry by external shopping malls decreased labour productivity for incumbent firms in city centres by -5.31%. However, when using time-specific fixed effects to control for common time trends in retailing in small cities, the impact on labour productivity, revenues, and number of employees due to the entry of external shopping malls becomes insignificant. The negative impact on incumbent firms is thus not due to the entry of external shopping malls but rather due to long-term negative economic trends in these cities.
    Keywords: external shopping malls; city centre; firm performance; agglomeration economies; competition; difference-in-differences
    JEL: D22 L25 P25 R12
    Date: 2020–08–24
  14. By: Catherine Thevenard-Puthod (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Le champ de l'entrepreneuriat international s'est fortement développé ces 20 dernières années et s'élargit aujourd'hui à toute forme de comportements entrepreneuriaux à l'international.Toutefois, malgré cet élargissement, les start-up et les entreprises de secteurs high tech demeurent les objets centraux des recherches. Peu de travaux s'intéressent aux entreprises de petite taille non récemment créées et appartenant à des activités traditionnelles, telles les entreprises artisanales (EA). L'objectif de cet article est donc d'améliorer la connaissance sur les processus utilisés par les entreprises artisanales pour se développer à l'international et sur les facteurs internes et externes qui influencent ces processus. Etant donné le caractère exploratoire de cette recherche, nous avons utilisé une méthodologie qualitative fondée sur l'étude de sept cas d'EA s'étant internationalisées. Le matériau empirique collecté permet d'identifier l'existence de différents types de trajectoires d'internationalisation au sein des EA. Il met également en avant le rôle plusieurs facteurs internes (la rareté du savoir-faire, le caractère innovant des produits ou services proposés et l'orientation entrepreneuriale du dirigeant) dans l'adoption des processus les plus rapides et précoces
    Keywords: Entreprise artisanale,Internationalisation,Entrepreneuriat international,Savoir-faire,Profil du dirigeant
    Date: 2020
  15. By: Brink, Siegrun; Levering, Britta; Icks, Annette
    Abstract: Die Sicherung der Innovations- und Wettbewerbsfähigkeit stellt aktuell und zukünftig die größte Herausforderung für mittelständische Unternehmen dar. Zu diesem Ergebnis kommt die jüngste Expertenbefragung für das Zukunftspanel Mittelstand 2020. Dabei stand die aktuelle Befragung fast vollständig unter dem Eindruck der Corona-Pandemie, die mit ihren weitreichenden wirtschaftlichen und gesellschaftlichen Auswirkungen den Mittelstand vor große Herausforderungen stellt. Vielfach ist bereits eine "neue Normalität" in den Unternehmen eingetreten, so dass die Bewältigung der Corona-Pandemie hinter den Herausforderungen der Umsetzung der Digitalisierung und der Deckung des Fachkräftebedarfs zurückbleibt. Nichtsdestotrotz wird sich die Mittelstandspolitik in naher Zukunft vor allem mit der Bekämpfung der Pandemie-Folgen befassen müssen, sei es bei der Gestaltung wirtschaftspolitischer Rahmenbedingungen, der Regional- oder der Arbeitsmarktpolitik.
    Keywords: Mittelstand in Deutschland,Mittelstandsforschung,Mittelstandspolitik,KMU Politik,German Mittelstand,Mittelstand Research,Entrepreneurship Research,Mittelstand policy,SME policy
    Date: 2020
  16. By: Yvon Pesqueux (EESD - Equipe en émergence sécurité défense - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Date: 2020–08–16

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