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on Entrepreneurship |
| By: | Naijia Guo (Chinese University of Hong Kong); Charles Ka Yui Leung (City University of Hong Kong) |
| Abstract: | Elite college attendance significantly impacts students' entrepreneurship decisions and career dynamics. We find that an elite college degree is positively correlated with entrepreneurship (i.e., owning an incorporated business) but not with other self-employment forms. Our overlapping generations model captures self-selection in education and career choices based on heterogeneous ability and family wealth endowments over the life-cycle. Our estimates show that (1) entrepreneurs and other self-employed individuals require different types of human capital, and (2) elite colleges generate considerably more human capital gain than ordinary colleges, particularly for entrepreneurs. Distinguishing between elite and ordinary colleges improves our prediction of entrepreneurship decisions. Providing subsidies for elite colleges is more efficient than subsidizing their ordinary counterparts to encourage entrepreneurship, enhance intergenerational mobility, and enhance welfare. In contrast, although start-up subsidy increases entrepreneurship, it does not improve their performance, and it is inferior to education subsidy in generating efficiency, equality, and intergenerational mobility. |
| Keywords: | entrepreneurship, elite college, intergenerational transfer |
| JEL: | D15 I20 J24 |
| Date: | 2021–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:cth:wpaper:gru_2021_006&r=all |
| By: | Ring, Marius |
| Abstract: | I provide evidence that adverse shocks to the wealth of business owners during the Financial Crisis had large effects on their firms' financing, \ employment, and investment. I use individual-level portfolio data from Norway to exploit the dispersion in stock returns during 2008–09 as a source of exogenous variation in entrepreneurs' wealth. I then trace out the effects of these shocks to the entrepreneurs' privately-held firms. I find that the adverse employment and investment effects are primarily driven by young firms who—relative to mature firms—obtain considerably less bank financing following an owner wealth shock. Firms adjust employment primarily through hiring less, rather than firing, consistent with firms providing extensive-margin insurance for existing workers. These findings provide a causal link between asset price shocks and the real economy; \ and document that equity-financing frictions and the procyclicality of entrepreneurial wealth are important channels through which economic shocks amplify. |
| Keywords: | Financial Crisis; Employment; Entrepreneurs; Equity Financing |
| JEL: | D14 E24 G01 G32 J23 |
| Date: | 2019–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107020&r=all |
| By: | Filomeni, Stefano; Modina, Michele; Tabacco, Elena |
| Abstract: | By exploiting a unique and proprietary panel dataset comprising 18,682 Italian SMEs operating with 99 cooperative banks over the period 2008-2014, we investigate the influence of the trade credit channel on firm investment decisions in the Italian market, distinguished by a considerable presence of relationship cooperative banks’ branches with a heterogeneous geographical distribution. Firstly, our findings confirm a significant influence of the trade credit channel on firm investment decisions. Secondly, we document that those SMEs located in those Italian provinces with an abundance of cooperative banks’ branches rely less on trade credit to finance investments. Lastly, we show that longer firm-bank relationships decrease firm dependence on trade credit to boost investments. Our study is of particular relevance because it strengthens the effectiveness of the commercial credit channel for SMEs in spurring corporate investments. Indeed, fostering a deep understanding of the real effects of firm financing sources is paramount to encourage investment by SMEs and to allow them to preserve their positioning in the market. Moreover, we exploit the Italian market, well-suited to perform such an analysis, since it is characterized by more inter-personal financing relationships as compared to other countries. |
| Keywords: | SMEs, trade credit, investment, relationship lending, soft information, cooperative bank |
| Date: | 2021–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:esy:uefcwp:30149&r=all |
| By: | Uduji, Joseph; Okolo-Obasi, Elda; Asongu, Simplice |
| Abstract: | Purpose – The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on youth development in informal farm entrepreneurship in Nigeria. Its special focus is to investigate the impact of the GESS on rural youths’ adoption of new technologies needed to sustainably increase food security in Nigeria. Design/ methodology/ approach – This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 800 rural youths were sampled across the six geopolitical zones of Nigeria. Findings – The result from the use of a bivariate probit model indicate that the GESS has a significant impact on rural youths’ innovations in farming. Practical implication – This suggests that information and communication technology (ICT) could provide new opportunities for making farming more interesting and enterprising for rural young people. Social implication – It implies that while old male and female farmers are less likely to adopt the new farming technologies needed to achieve Nigeria’s agricultural transformation agenda (ATA), a younger generation can help introduce new technologies, whilst also learning from traditional methods. Originality/ value – This research adds to the literature on informal farm entrepreneurship and rural communities’ debate in developing countries. It concludes that engaging youths in GESS should form the foundation of the ATA in Nigeria, which, in turn, would offer adequate combination of new and traditional solutions to address the challenges of food insecurity in sub-Saharan Africa. |
| Keywords: | Youth Development Initiative, Informal Farm Entrepreneurship, Growth Enhancement Support Scheme (GESS), Rural Communities in Nigeria |
| JEL: | C5 O1 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107140&r=all |
| By: | Matthies, Eike; Haverkamp, Katarzyna; Thomä, Jörg; Bizer, Kilian |
| Abstract: | While an increasing number of conceptual studies postulate that vocational education and training (VET) activities have a positive impact on the innovative capacity of training companies, empirical evidence on the subject remains scarce. This study exploits establishment data from a representative survey of German companies to estimate the effects of firms' participation in initial VET on their innovation outcomes. The results based on linear probability models and instrumental variable regressions with entropy balancing show that the impact of VET activity on innovation is more ambiguous than postulated. Overall, the participation in initial VET has virtually no effect on product innovation and radical novelties. For the total population of all German companies, the positive impact of VET activities is only observable in case of process innovation. However, our results point to significant causal effects on the innovative capacities of small and medium-sized enterprises (SMEs). We conclude that companies' participation in the VET system facilitates organizational learning in training companies and knowledge transfer from VET institutions to those enterprises, which are otherwise more likely to be detached from modern technology networks. The paper concludes with implications for policy and research. |
| Keywords: | education,apprenticeship training,modes of innovation,innovation without R&D,SMEs |
| JEL: | I20 J24 O31 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:302021&r=all |