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on Entrepreneurship |
| By: | Márta Bisztray (Centre for Economic and Regional Studies, Budapest and Corvinus University Budapest, CERGE-EI Foundation Teaching Fellow); Francesca de Nicola (World Bank, Washington DC); Balázs Muraközy (University of Liverpool Management School, Liverpool and Centre for Economic and Regional Studies, Budapest) |
| Abstract: | This paper investigates the contribution of high-growth firms (HGFs) to aggregate productivity growth. Four stylized facts emerge. First, HGFs mainly contribute to productivity growth during their high-growth phase but not afterwards. Second, their contribution varies substantially across industries and it is not necessarily positive. Third, the impact on productivity depends on how HGFs are defined. Output-based HGFs substantially outperform employment-based ones in terms of their productivity contribution while the difference in terms of job creation is low. Fourth, HGFs' contribution to productivity is higher in industries where industry dynamics favor growing firms, captured by the strength of reallocation and the relationship between productivity growth and size growth. We present a simple model to show that these patterns arise naturally under realistic correlation structures. Our results suggest that policies supporting HGFs may focus on firms increasing their sales, and these can effectively be complemented by framework policies promoting efficient reallocation |
| Keywords: | high-growth firms, productivity growth, reallocation, industry dynamics |
| JEL: | L25 O40 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2047&r=all |
| By: | Aldén, Lina (Department of Economics and Statistic, Linnaeus University); Bastani, Spencer (Institute for Evaluation of Labor Market and Education Policy (IFAU), Uppsala); Hammarstedt, Mats (Linneaus University) |
| Abstract: | In this paper, we use a randomized field experiment in Sweden to investigate how self-employment experience is valued in the labor market. We find that self-employment experience negatively impacts the probability of receiving a positive response from employers. For male applicants, this holds regardless of their ethnic background, and independently of whether we consider applicants with experience solely from self-employment, or applicants with a mix of experience from wage-employment and self-employment. For female applicants, the results are less clear-cut. Our findings provide input into the discussion about the impact of self-employment on the chances for natives and immigrants to obtain wage-employment. |
| Keywords: | Self-employment; Wage-employment; Randomized experiment; Discrimination; Labor market outcomes |
| JEL: | J15 J24 J71 L26 |
| Date: | 2020–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1369&r=all |
| By: | Daniel Graeber; Alexander S. Kritikos; Johannes Seebauer |
| Abstract: | We investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affected the self-employed relative to employed individuals in Germany and, secondly, to what extent the female self-employed were more strongly hit than their male counterparts. For our analysis, we use representative real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that self-employed individuals were much more likely to suffer income losses than employees. Among the self-employed, women were 35% more likely to experience income losses than men, as women are disproportionately working in industries that are more severely affected by the COVID-19 pandemic. We conclude that future policy measures intended to mitigate such shocks should account for this variation in economic hardship. |
| Keywords: | Self-employed, COVID-19, income, gender, representative real-time survey data, decomposition methods |
| JEL: | L26 J31 J71 I18 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1108&r=all |
| By: | Ljunge, Martin (Research Institute of Industrial Economics (IFN)); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Intrapreneurs, entrepreneurial employees, constitute an important force behind innovations in the economy. Yet, what factors that promote intrapreneurship at the country level are an underdeveloped research area. This paper provides a seminal contribution regarding the methodological approach and the broad set of potential explanatory factors studied. Based on machine-learning techniques (LASSO and EBA methods), we investigate the influence of over 60 factors capturing institutional, demographic, cultural, and developmental factors. We find that the quality of government measured as impartiality, i.e., that the political institutions treat the citizens in a non-discriminatory fashion and do not favor some groups or individuals, and the level of human capital, measured as the average years of schooling, are the most important factors predicting the level of intrapreneurship across countries. Instrumental variable results support a causal interpretation. The findings emphasize the importance of policy to establish well-functioning and impartial institutions as well as to promote higher education. |
| Keywords: | Intrapreneurship; Impartial institutions; Human capital; Machine-learning |
| JEL: | E02 I20 L26 O17 O30 |
| Date: | 2020–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1368&r=all |
| By: | Gang, Ira N.; Natarajan, Rajesh Raj; Sen, Kunal |
| Abstract: | How does informal economic activity respond to increased financial inclusion? Does it become more entrepreneurial? Does access to new financing options change the gender configuration of informal economic activity and, if so, in what ways and what directions? We take advantage of nationwide data collected in 2010/11 and 2015/16 by India's National Sample Survey Office on unorganized (informal) enterprises. This period was one of rapid expansion of banking availability aimed particularly at the unbanked, under-banked, and women. We find strong empirical evidence supporting the crucial role of financial access in promoting entrepreneurship among informal sector firms in India. Our results are robust to alternative specifications and alternative measures of financial constraints using an approach combining propensity score matching and difference-in-differences. However, we do not find conclusive evidence that increased financial inclusion leads to a higher likelihood of women becoming entrepreneurs than men in the informal sector. |
| Keywords: | entrepreneurship,financial constraints,gender,informal sector,difference-indifferences,India |
| JEL: | O12 G28 L26 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:708&r=all |
| By: | Campo, Francesco (University of Milan Bicocca); Nunziata, Luca (University of Padova); Rocco, Lorenzo (University of Padova) |
| Abstract: | We provide a large scale within-country analysis of the effect of language future time reference (FTR) on the choice of being an entrepreneur using individual-level data from Switzerland, a country characterized by a unique long-standing multilingualism and a large share of immigrant population. We test the hypothesis that speakers of weak FTR languages may have a closer perception of future rewards and be more willing to become entrepreneurs, a choice that reflects future orientation. Our analysis consistently indicates that immigrants who speak weak FTR languages are around 2 percent more likely to be entrepreneurs compared to speakers of strong FTR languages, net of unobservable ancestral cultural traits, districts of destination's characteristics, linguistic features other than FTR, and whether individuals maintain their native language or switch to one of the four Swiss languages. |
| Keywords: | entrepreneurship, language, future time reference, culture, migration, Switzerland |
| JEL: | D15 J24 J6 L26 Z1 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13897&r=all |
| By: | OECD |
| Abstract: | This paper offers an in-depth analysis of the characteristics of innovative start-up firms in Trentino, a high-income mountainous area in the North East of Italy. This work is part of a series of thematic papers on regional start-up landscapes in Italy, produced by the OECD Trento Centre for Local Development. Following the 2018 OECD Evaluation of the Italian Start-up Act, which embraced a national perspective, it represents a first attempt to analyse the impact of this policy at the local level. Among Italian regions, Trentino boasts the highest density of registered innovative start-ups over all young firms established locally. However, innovative start-ups spread unevenly throughout this territory, concentrating in urban areas. Female and young founders are less prevalent than in Italy at large. Firm dynamism, in particular high-growth and exit trends, the uptake of emerging technologies among local start-ups as well as their propensity to use national incentives are other key areas of this work, which concludes with a set of evidence-based recommendations for policy makers. |
| Keywords: | artificial intelligence, entrepreneurship, firm dynamism, innovation, local development, policy adoption, start-up |
| JEL: | D22 L26 M13 O38 R12 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/09-en&r=all |
| By: | OECD |
| Abstract: | The characteristics of innovative start-up firms in South Tyrol, the northernmost province of Italy, entirely mountainous, hosting a high-income population belonging to three main language groups. This work is part of a series of thematic papers on sub-national start-up landscapes in Italy, produced by the OECD Trento Centre for Local Development. It represents a first attempt to analyse the effect of the Italian policy framework for young innovative firms at the local level. South Tyrol is home to a relatively small number of registered innovative start-ups, pointing to the presence of obstacles to policy transfer. Evidence suggests that language barriers may play a critical role. Firm dynamism, in particular high-growth and exit trends, the spread of emerging technologies among local start-ups as well as their propensity to uptake national incentives are other major focuses of this work, which concludes with a set of evidence-based recommendations for policy-makers. |
| Keywords: | artificial intelligence, entrepreneurship, firm growth, innovation, local development, multi-level governance, policy adoption, start-up |
| JEL: | D22 L26 M13 O38 R12 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/07-en&r=all |
| By: | OECD |
| Abstract: | This paper offers an in-depth analysis of the characteristics of innovative start-up firms in Friuli-Venezia Giulia, an autonomous region situated at the extreme North East of the Italian territory, bordering with Austria and Slovenia. This work is part of a series of thematic papers on sub-national start-up landscapes in Italy, produced by the OECD Trento Centre for Local Development. Following the 2018 OECD Evaluation of the Italian Start-up Act, which embraced a national perspective, it represents a first attempt to analyse the impact of this policy at the local level. Friuli-Venezia Giulia hosts a polycentric, mainly urban start-up landscape, with a low prevalence of female and young founders. Its historical sub-regions of Friuli and Venezia Giulia present remarkable differences under several perspectives, including the industrial composition of their start-ups, the spread of emerging technologies among them and their propensity to use national incentives. Firm dynamism, notably high-growth and exit trends, constitutes another major focus of this work, which concludes with a set of evidence-based recommendations for policy-makers. |
| Keywords: | artificial intelligence, entrepreneurship, firm growth, innovation, local development, multi-level governance, policy adoption, start-up |
| JEL: | D22 L26 M13 O38 R12 |
| Date: | 2020–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/08-en&r=all |