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on Entrepreneurship |
| By: | Frank M. Fossen; Johannes König; Carsten Schröder |
| Abstract: | We present first evidence how individual risk preferences shape entrepreneurial investment among the very wealthy using novel survey data from the top of the wealth distribution, which have been added to the 2019 German Socio-economic Panel Study. The data include private wealth balance sheets, in particular the value of own private business assets, and a standard measure of risk tolerance. We find that wealthy individuals are more likely to be entrepreneurs and invest a larger share of their wealth in their own businesses when they are more willing to take risks. These associations are stronger among wealthy than among less wealthy individuals. The results imply that policies affecting the riskiness of income and wealth, such as tax policy and bankruptcy law, affect risky investment decisions at the top of the wealthdistribution in ways strongly determined by individual risk tolerance. Since the wealthy dominate aggregate risky investment, their risk preferences must be taken into account for theory development, empirical analysis, and policy evaluations. |
| Keywords: | wealth, entrepreneurship, risk, portfolio choice |
| JEL: | J22 J23 L26 D14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1117&r=all |
| By: | Lise Clain-Chamosset-Yvrard (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - Centre National de la Recherche Scientifique - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UL2 - Université Lumière - Lyon 2 - ENS Lyon - École normale supérieure - Lyon); Xavier Raurich (UB - Universitat de Barcelona); Thomas Seegmuller (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Entrepreneurship, growth and total factor productivity are larger when there is a financial bubble. We explain these facts using a growth model with financial bubbles in which individuals face heterogeneous wages and returns on productive investment. The heterogeneity in the return of in- vestment separates individuals between savers and entrepreneurs. Savers buy financial assets, which are deposits or a financial bubble. Entrepreneurs incur in a start-up cost and borrow to invest in productive capital. The bubble provides liquidities to credit-constrained entrepreneurs. These liquidities increase investment and entrepreneurship when the start- up cost is large enough, which explains that growth and entrepreneurship can be larger with bubbles. Finally, productivity can be larger when the bubble further increases the investment of more productive entrepreneurs. This can occur when the return of investment is correlated with wages. |
| Keywords: | bubble,entrepreneurship,growth,productivity |
| Date: | 2021–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03134474&r=all |
| By: | John M. Barrios (University of Chicago - Booth School of Business); Jung Ho Choi (Stanford University - Stanford Graduate School of Business); Yael V. Hochberg (Rice University - Jones Graduate School of Business); Jinhwan Kim (Stanford University - Stanford Graduate School of Business); Miao Liu (University of Chicago - Booth School of Business) |
| Abstract: | We examine the relationship between public firm disclosure and aggregate new business formation. Consistent with the notion that public company disclosures provide information spillovers that reduce the extent of uncertainty about new investment opportunities, we find that increased public firm presence is positively associated with new business formation in an industry. Furthermore, using plausibly exogenous information shocks generated by new IPOs in a geographic area, we find that post-IPO, new business registration in the public company's geographic area rise by 4 to 10%, consistent with soft information channels serving to reinforce hard information in public disclosures. New IPOs are associated with significant increases in Edgar downloading activity in the IPOs’ geographic area, consistent with the notion that public firm disclosures are providing important investment opportunity information that facilitates new business formation. |
| Keywords: | Entrepreneurship, financial disclosures, real effects, externalities, IPOs |
| JEL: | D80 D81 D83 L26 M41 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2020-92&r=all |
| By: | Rudkin , Simon (Swansea University); He, Ming (Xi’an Jiaotong-Liverpool University); Chen, Yang (Xi’an Jiaotong-Liverpool University) |
| Abstract: | Agglomeration theory supports and existing findings confirm the geographical proximity of similar firms and spatial attraction of firms to universities. In addition to that, we are able to identify whether universities as one type of innovative units are attracted by firm-type innovators and the size of such attraction. Testing the bidirectional spatial innovation linkage contributes to the debate on firm- or university-led innovation. Using a large patent dataset from Shenzhen, the first innovation-led city in the People’s Republic of China, and employing a spatial point process analysis technique, underutilized in the literature that allows the bidirectional testing of coagglomeration, we find varying attraction distances between the same type of innovative units and across university–firm innovation pairs. Attractions are not only limited to identical technology fields but also generate coagglomerations across different technology fields of firms and universities. We find the attraction from firms to universities is more than that from universities to firms. Support is offered to the integration of firms into the university-led innovation clusters in science parks; firm innovation in patent fields like human necessities, physics, and electrical deserve more policy focus to benefit university research and innovation. |
| Keywords: | agglomeration; innovation; patents; spatial distribution; universities |
| JEL: | O31 R11 R12 |
| Date: | 2020–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0608&r=all |
| By: | Job Boerma; Loukas Karabarbounis |
| Abstract: | Reparations is a policy proposal aiming to address the wealth gap between Black and White households. We provide a first formal analysis of the economics of reparations using a long-run model of heterogeneous dynasties with an occupational choice and bequests. Our innovation is to introduce endogenous dispersion of beliefs about risky returns, reflecting differences in dynasties' experiences with entrepreneurship over time. Feeding the exclusion of Black dynasties from labor and capital markets as driving force, the model quantitatively reproduces current and historical racial gaps in wealth, income, entrepreneurship, mobility, and beliefs about risky returns. We use the model to evaluate reparations and find that transfers eliminating the racial gap in average wealth today do not lead to wealth convergence in the long run. The logic is that century-long exclusions lead Black dynasties to enter into reparations with pessimistic beliefs about risky returns and to forego investment opportunities. We conclude by showing that entrepreneurial subsidies are more effective than wealth transfers in achieving racial wealth convergence in the long run. |
| JEL: | D31 E21 J15 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28468&r=all |
| By: | , AISDL |
| Abstract: | The purpose of this research was to propose a sustainability model of Vietnamese women entrepreneurs. The study addresses questions concerning factors that trigger decisions by Vietnamese women to start a business or transition from employee to ownership status; identifies obstacles encountered because of societal prejudice and government policies; and examines the factors associated with business success. To investigate these research questions, a mixed methods approach was adopted. For the qualitative phase of the study, 30 Vietnamese women entrepreneurs were interviewed. Thematic analysis performed on interview data revealed that Vietnamese women entrepreneurs face social prejudice regarding their business expertise, that the Vietnamese government is not effectively communicating its support to these women, and that its policies are too vague. |
| Date: | 2020–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:kjmdr&r=all |
| By: | Farid Naufal Aslam; Andry Alamsyah |
| Abstract: | The internet's rapid growth stimulates the emergence of start-up companies based on information technology and telecommunication (ICT) in Indonesia and Singapore. As the number of start-ups and its investor growth, the network of its relationship become larger and complex, but on the other side feel small. Everyone in the ICT start-up investment network can be reached in short steps, led to a phenomenon called small-world phenomenon, a principle that we are all connected by a short chain of relationships. We investigate the pattern of the relationship between a start-up with its investor and the small world characteristics using network analysis methodology. The research is conducted by creating the ICT start-up investment network model of each country and calculate its small-world network properties to see the characteristic of the networks. Then we compare and analyze the result of each network model. The result of this research is to give knowledge about the current condition of ICT start-up investment in Indonesia and Singapore. The research is beneficial for business intelligence purposes to support decision-making related to ICT start-up investment. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.09102&r=all |
| By: | Aurélie Ewango-Chatelet (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | L'essentiel des recherches empiriques conduites dans le domaine de l'entrepreneuriat comparé prend la forme d'enquêtes de comparaisons internationales par questionnaires. Pourtant les méthodes qualitatives sont reconnues pour permettre de saisir le processus entrepreneurial dans sa complexité et dans la diversité de ses contextes. La communication questionne la place de la comparaison dans les études contextualisées de l'entrepreneuriat en révisant des travaux empiriques adoptant une approche qualitative en entrepreneuriat comparé. Si les imperfections des conceptions et les failles des pratiques sont dévoilées, cette mise en perspective du dilemme comparaison-contextualisation suggère tout de même des pistes de stratégies pour agir. |
| Keywords: | approche critique,comparaison internationale,méthodologie,épistémologie,impact,entrepreneuriat comparé,contextualisation |
| Date: | 2019–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03091312&r=all |