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on Entrepreneurship |
| By: | Cao, Ruiqing; Koning, Rembrand (Harvard Business School); Nanda, Ramana |
| Abstract: | Using data from a prominent online platform for launching new digital products, we document that the composition of the platform's `beta testers' on the day a new product is launched has a systematic and persistent impact on success. Specifically, we use word embedding methods to classify products launched on this platform as more or less focused on the needs of female customers, and show that female-focused products launched on a typical day—when nine-in-ten users on the platform are men—experience 40% less growth and are 5 percentage points less likely to have an any users a year after launch. Using exogenous variation driven by the platform's daily newsletter, we find that that the product gender gap shrinks on days when women are more likely to engage with the platform. Conversely, entrepreneurs who happen to launch a female-focused product on an especially male-dominated day reduce their product development efforts by roughly 30% and are 4 percentage points less likely to raise venture funding. Overall, our findings suggest that sample bias can systematically corrupt signals of a startup's market potential, bias entrepreneurial strategy, and so lead to a dearth of innovations aimed at consumers who are underrepresented among early-users. |
| Date: | 2020–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:g6wjn&r=all |
| By: | Scandura, Alessandra; Bolzani, Daniela (University of Turin) |
| Abstract: | This paper investigates the importance of the network of collaborations with other firms, research institutions, and business associations as key drivers of innovation, providing a comparison between immigrant-owned firms and non-immigrant-owned firms. We hypothesise that the network of collaboration is more important for innovative activities of immigrant entrepreneurs than for natives, due to their migrant condition, and that immigrant entrepreneurs’ acculturation to the host country culture moderates the influence of such network. We test our hypotheses on a unique matched-pair sample of immigrant and native domestic entrepreneurs active in high-tech mainstream (non-ethnic) markets. Our results show that universities and research institutions along with business associations are more important for immigrant-owned companies; we further show that immigrant entrepreneurs’ acculturation to the host country culture acts as a substitute for interactions with business associations. These findings are highly relevant for the academic and policy discourses on the link between immigrant entrepreneurship and innovation in developed countries. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202021&r=all |
| By: | Maurizio Iacopetta (Observatoire français des conjonctures économiques); Raoul Minetti (Michigan State University); Pierluigi Murro |
| Abstract: | New firms are often based on ideas that the founders developed while working for incumbent firms. We study the macroeconomic effects of spinoffs through a growth model of product variety expansion, driven by firm entry, and product innovation. Spinoffs stem from conflicts of interest between incumbent firms' shareholders and employees. The analysis suggests that incumbents invest more in product innovation when knowledge protection is stronger. An inverted-U shape relationship emerges, however, between the intensity of spinoff activities and the strength of the rule of law. A calibration experiment indicates that, with a good rule of law, loosening knowledge protection by 53 reduces product innovation by one fifth in the short run and one seventh in the long run, but boosts the spinoff rate by one tenth and one sixth in the short and long run, respectively. Nevertheless, per capita income growth drops and welfare deteriorates. The trade-offs are broadly consistent with evidence from Italian firms. |
| Keywords: | Corporate governance; Endogenous growth; Spinoffs |
| JEL: | E44 O40 G30 |
| Date: | 2020–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/2c47q6gpge8vrbqjak551kmu6c&r=all |
| By: | Velilla, Jorge |
| Abstract: | We analyze the existence of a long-run intergenerational correlation of self-employment in Europe, providing cross-country comparative evidence. Using the 2011 special module on Intergenerational Transmission of the European Union Statistics on Income and Living Conditions (EU-SILC), we analyze the correlations between the current self-employment status of respondents, and that of their parents when respondents were 14 years old, in nine European countries. After controlling for both individual and macroeconomic observable factors, our estimates show that the intergenerational correlation of self-employment is strong between men and their fathers, while it is not robust for females. Furthermore, working in the same occupation as parents appears to be a strong channel of intergenerational correlation of self-employment. |
| Keywords: | Intergenerational transmission; self-employment; EU-SILC data |
| JEL: | J62 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104184&r=all |
| By: | Francesco Aiello (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Paola Cardamone (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Lidia Mannarino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Valeria Pupo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | Using a large sample of Italian small–medium-sized firms, this note analyses the effects of formal inter-firm cooperation on the performance of family firms (FFs). The study is based on the network contract (“Contratto di rete”) implemented in Italy in 2009. The results show that networks have a positive effect on FFs, while no conclusive evidence is found for non-family firms. Additionally, the advantages for southern FFs and for small firms are considerable. |
| Keywords: | family firms, formal business networks, performance |
| JEL: | G34 L24 L25 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:202007&r=all |
| By: | Majida Jrad; Yamina Tadjeddine |
| Abstract: | This paper examines the factors that affect the collateralizing of a loan specifically for SMEs in Lebanon that is a country with a small open emerging-market economy. Collateral should guarantee the bank loan but in practice it is adjusted according to other socio-economic criteria of companies. This is particularly true for SME's and even more so for emerging countries. We propose in this article to illustrate the signals mobilized by banks when providing collateralized loans. Data on these variables have been derived from the Lebanese Central Band and the World Bank. It contains observations for two samples – 532 firms for 2020 and 561 firms for 2014. Three sets of factors influence the level of collateral required: those related to firm characteristics (relevant variables: age, size, auditing financial statements, developing the qualification of workforce, export orientation, the sector of manufacturing, located in capital city, female manager, export orientation), to loan characteristics (no relevant variable), and to credit market specifics (interest rate). Regression estimates suggest the age and size of a firm contributed to more collateral required in 2019. Smaller collateral is required by firms with bigger size, auditing financial statements, developing the qualification of workforce, export orientation, belonging to the sector of manufacturing, located in capital city in 2013. Female manager, export orientation, and location in capital city contribute to smaller collateral required in 2019. Loan value does not seem to tighten collateral requirements. In opposite perspective, the increases in the interest rate entail stricter collateralizing the loans. |
| Keywords: | Financing, SMEs, collateral, credit risk, regression analysis, Lebanon. |
| JEL: | G32 O16 O53 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2020-46&r=all |
| By: | Chukwunonso Ekesiobi (Anambra state, Nigeria); Stephen K. Dimnwobi (Anambra state, Nigeria) |
| Abstract: | Purpose – This study presents an economic investigation of the entrepreneurship practise of the Igbos of South-Eastern Nigeria. It is intended to deepen entrepreneurial development and employment generation in the country. This study also provides empirical support to situate the Igbo entrepreneurship model (IEM) among existing entrepreneurship literature, particularly for research in developing countries. Design/methodology/approach – The study adopts a quantitative approach to examine 1187 responses carefully drawn from the Onitsha and Nnewi business clusters in Anambra state. In addition to descriptive demonstrations, the Propensity Score Matching (PSM) technique is employed to estimate the effects of treatment on the treated by pairing treatment and control units with similar attributes on the propensity score and other likely covariates. Specifically, the PSM is used to perform a counterfactual analysis of the effect of the entrepreneurship model on business outcomes by examining participants and non-participants in the IEM. Findings – The key findings of the study indicate that entrepreneurs who participated in the IEM have higher business survival rate, business growth rate and access to trade and informal credit, while non-IEM entrepreneurs have better access to formal credit source than the IEM graduates. Research Limitations/Implications – Generalisation of results can be limited since the study is based on responses of samples drawn from two clusters (Onitsha and Nnewi) in Anambra State, South-East Nigeria. The clusters, though situated in Igbo land, are not the only Igbo business locations in the South-East region and the rest of the country. However, with the larger number of the respondents and synchronisation with existing literature in this subject area guarantee the robustness and applicability of the study findings. Originality/value – The novelty of this study rests on its pioneering attempt to empirically examine how the IEM can drive entrepreneurial development in Nigeria. We also distil lessons for evidenced-based replication of the model to provide a sustainable employment channel for the country. The study posits, among other things, that the IEM can be a veritable approach for enterprise development and youth employment in Nigeria. |
| Keywords: | Igbo Entrepreneurship Model, Business outcomes, Clusters, Nigeria |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/085&r=all |
| By: | Ana Tomás; Nuno Valério |
| Abstract: | This working paper summarizes the evolution of the tobacco sector in Portugal, both from the perspective of the regime established by the government, and from the perspective of the entrepreneurs and firms that worked in the sector. This is the second working paper of a set started with working paper no. 68 on the railroad sector, with the final purpose of preparing a Business History of Portugal. |
| Keywords: | Portugal, tobacco sector, tobacco firms. JEL classification: L66 – tabaco / tobacco |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ise:gheswp:wp692020&r=all |