nep-ent New Economics Papers
on Entrepreneurship
Issue of 2021‒09‒20
eleven papers chosen by
Marcus Dejardin
Université de Namur

  1. William J. Baumol: Innovative Contributor to Entrepreneurship Economics By Henrekson, Magnus; Stenkula, Mikael
  2. Entrepreneurial Migration By Bryan, Kevin; Guzman, Jorge
  3. Productivity Dispersion, Entry, and Growth in U.S. Manufacturing Industries By Cindy Cunningham; Lucia Foster; Cheryl Grim; John Haltiwanger; Sabrina Wulff Pabilonia; Jay Stewart; Zoltan Wolf
  4. Merging Competencies, Valuing Diversity: The Multicultural Enterprise as an Emerging Model By Arrighetti, Alessandro; Lasagni, Andrea; Gnarini, Daniela; Semenza, Renata
  5. The Role Of CEO Characteristics In Firm Innovative Performance: A Comparative Analysis Of EU Countries And Russia By Fernanda Ricotta; Victoria Golikova; Boris Kuznetsov
  6. Large-scale Victorian manufacturers: reconstructing the lost 1881 UK employer census By Hannah, Leslie; Bennett, Robert J.
  7. The Color of Money: Federal vs. Industry Funding of University Research By Tania Babina; Alex Xi He; Sabrina T. Howell; Elisabeth Ruth Perlman; Joseph Staudt
  8. Staying afloat in the milk business: Borrowing and selling on credit among informal milk vendors in Nairobi By Myers, Emily; Heckert, Jessica; Galiè, Alessandra; Njiru, Nelly; Alonso, Silvia
  9. Empowerment of Rural Young People in Informal Farm Entrepreneurship: The Role of Corporate Social Responsibility in Nigeria’s Oil Producing Communities By Joseph I. Uduji; Elda N. Okolo-Obasi
  10. Public Service Innovation Network for Social Innovation: A European overview By Céline Merlin-Brogniart; Lars Fuglsang; Ada Scupola; Anne Hansen; Rolf Rønning; Siv Magnussen; Alberto Peralta; Miklós Rosta; Márton Katona; Éva Révész
  11. A European state-of-the-art of Public Service Innovation Network for Social innovation By Céline Merlin-Brogniart; Lars Fuglsang; Ada Scupola; Rolf Rønning; Siv Magnussen; Alberto Peralta

  1. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Stenkula, Mikael (Research Institute of Industrial Economics (IFN))
    Abstract: William J. Baumol was one of the most prolific economists of his generation, analyzing a broad range of central economic issues addressing real problems of the world. In this essay, we present and critically evaluate Baumol’s research contributions in entrepreneurship economics and point to areas for future research. Baumol contributed an impressive number of important insights, increasing our understanding of entrepreneurship from both a macro and a micro perspective. He also devoted a large part of his writings to discussing public policy, linking his theoretical insights with policy issues in practice. His analyses are rooted in contemporary mainstream neoclassical economics, and one of his main objectives was to integrate the entrepreneur into this tradition. Today, Baumol is best known for his tripartite distinction between productive, unproductive, and destructive entrepreneurship and his associated idea that the institutional framework, “the rules of the game,” will determine how entrepreneurs allocate their time and effort across different—productive or unproductive—activities. An institutional environment that encourages productive entrepreneurship and spontaneous experimentation while disincentivizing unproductive activities becomes, through this insightful lens, the driving force of economic growth. As an economist, Baumol was knowledgeable and well acquainted with earlier scholars and their writings about entrepreneurship. Baumol’s writings were greatly inspired by Joseph Schumpeter’s views on entrepreneurship, and he made several attempts to formalize Schumpeter’s concept of the innovative entrepreneur. Baumol was in all senses an innovative contributor to entrepreneurship economics. His work has inspired the research community of entrepreneurship scholars, but like all great scientists, he also encountered criticism.
    Keywords: Entrepreneurship; Innovation; Institutions; Rent seeking
    JEL: B41 D02 J48 L26 L53 O31 Z10
    Date: 2021–09–10
  2. By: Bryan, Kevin; Guzman, Jorge
    Abstract: We use cross-state business registrations to track the geographic movement of startups with high growth potential. In their first five years, 6.6% percent of these startups move across state borders. Though startup births are concentrated geographically, hubs like Silicon Valley and Boston on net lose startups to entrepreneurial migration. A revealed preference approach nonparametrically identifies the average utility of cities to migrant founders. University towns and startup hubs have low relative utility. This pattern is due neither to vertical sorting nor industrial specialization. The higher-quality startups move to lower-tax, business-friendly cities, while less growth-oriented startups move to low-tax, high-amenity cities.
    Date: 2021–09–08
  3. By: Cindy Cunningham; Lucia Foster; Cheryl Grim; John Haltiwanger; Sabrina Wulff Pabilonia; Jay Stewart; Zoltan Wolf
    Abstract: Within-industry productivity dispersion is pervasive and exhibits substantial variation across countries, industries, and time. We build on prior research that explores the hypothesis that periods of innovation are initially associated with a surge in business start-ups, followed by increased experimentation that leads to rising dispersion potentially with declining aggregate productivity growth, and then a shakeout process that results in higher productivity growth and declining productivity dispersion. Using novel detailed industry-level data on total factor productivity and labor productivity dispersion from the Dispersion Statistics on Productivity along with novel measures of entry rates from the Business Dynamics Statistics and productivity growth data from the Bureau of Labor Statistics for U.S. manufacturing industries, we find support for this hypothesis, especially for the high-tech industries.
    Keywords: dispersion; entry; innovation; productivity; manufacturing; high-tech industries
    JEL: O3 O4
    Date: 2021–08
  4. By: Arrighetti, Alessandro; Lasagni, Andrea; Gnarini, Daniela; Semenza, Renata
    Abstract: Multicultural enterprises can be considered as a subset of the complex phenomenon of migrant entrepreneurship Starting from a theoretical overview of the phenomenon, the study analyzes multicultural enterprise experiences. Various topics, ranging from perceived advantages to obstacles encountered in everyday business, are discussed. In its conclusion, the study presents recommendations on how to adjust support actions to the specific needs of multicultural enterprises.
    Keywords: Multicultural Firm,Migrant Firm
    JEL: L20
    Date: 2020
  5. By: Fernanda Ricotta (University of Calabria); Victoria Golikova (National Research University Higher School of Economics); Boris Kuznetsov (National Research University Higher School of Economics)
    Abstract: In this paper, we investigate whether CEO characteristics (owner-manager status, age and gender) influence firm innovative performance and test empirically if the effect differs for market and transition economies. We use cross-sectional data of manufacturing firms in six EU countries and in Russia. To address heterogeneity, we explore innovation performance by size among SMEs and large businesses and by Pavitt sector. In both institutional settings, the presence of a family CEO either has no effect or improves innovative performance. On the contrary, the role of CEO gender is different in Russia and in the EU. In the EU, female CEOs are associated with less innovation, especially in SMEs and in the traditional sector. In Russia, CEO gender is not associated with differences in innovative performance and when it is (for the traditional sector), it favors female-run firms. For CEO age, considering product innovations, the oldest group of CEOs are less active in European firms while mature CEOs are more innovative in Russia.
    Keywords: CEO age, gender, manager-owner status, innovation, manufacturing firms
    JEL: D21 L60 P50
    Date: 2021
  6. By: Hannah, Leslie; Bennett, Robert J.
    Abstract: We present the first available - and near-complete - list of large UK manufacturers in 1881, by complementing the employer data from that year’s population census (recovered by the British Business Census of Entrepreneurs project) with employment and capital estimates from other sources. The 438 largest firms with 1,000 or more employees accounted for around one-sixth of manufacturing output. Examples can be found in most industries. Exploiting powered machinery, intangible assets, new technologies and venture capital, and generally operating in competitive markets, their exports about equalled domestic sales. The more capital-intensive accessed stock markets, more - and in larger firms - than in follower economies. Some alleged later causes of UK decline relative to the US or Germany cannot be observed in 1881. Indeed, contemporary overseas observers - capitalist and socialist - correctly recognized the distinctive features of UK manufacturing as its exceptional development of quoted corporations, professional managers and “modern,” scalable, factory production.
    Keywords: large manufacturers; capital intensity; industrial concentration; stock exchanges
    JEL: L60 N63 N83
    Date: 2021–09–01
  7. By: Tania Babina; Alex Xi He; Sabrina T. Howell; Elisabeth Ruth Perlman; Joseph Staudt
    Abstract: U.S. universities, which are important producers of new knowledge, have experienced a shift in research funding away from federal and towards private industry sources. This paper compares the effects of federal and private university research funding, using data from 22 universities that include individual-level payments for everyone employed on all grants for each university year and that are linked to patent and Census data, including IRS W-2 records. We instrument for an individual’s source of funding with government-wide R&D expenditure shocks within a narrow field of study. We find that a higher share of federal funding causes fewer but more general patents, more high-tech entrepreneurship, a higher likelihood of remaining employed in academia, and a lower likelihood of joining an incumbent firm. Increasing the private share of funding has opposite effects for most outcomes. It appears that private funding leads to greater appropriation of intellectual property by incumbent firms.
    Keywords: R&D, Science, Universities, Innovation, Entrepreneurship
    JEL: O3 G18 G38 I2
    Date: 2021–09
  8. By: Myers, Emily; Heckert, Jessica; Galiè, Alessandra; Njiru, Nelly; Alonso, Silvia
    Abstract: Studies on credit schemes for small-scale entrepreneurs have documented their potential to alleviate poverty and improve food security, nutrition, and health outcomes in low- and middle-income countries. Other studies find mixed impacts of credit schemes on reducing income inequality, empowering women, and enhancing children’s education. Moreover, growing evidence finds that entrepreneurs offer credit to customers; little is known about what this practice means for entrepreneurs, and even less about gendered differences in this practice. Herein, we consider the case of final retailers in agricultural value chains and examine how male and female informal milk vendors from peri-urban Nairobi borrow and sell on credit, and how these experiences affect their businesses where there are few formal safeguards to ensure repayment. In 2017, we conducted 49 individual interviews, four key informant interviews, and six focus groups with men and women who were current or former milk vendors. A thematic analysis revealed that vendors sell on credit to appeal to customers, which may be advantageous when vendors need to rid themselves of milk before it spoils, regardless of gender. With few strategies to recoup costs from customers who fail to repay, however, failure to collect debt may cause default for vendors who acquired milk via informal borrowing. The consequences are likely more severe for women vendors, who generally have less capital to fall back on relative to men. Development organizations should identify gender-sensitive financial services that can help entrepreneurs maintain viable businesses despite the volatility of borrowing and selling on credit.
    Keywords: KENYA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; milk production; enterprises; credit; microenterprises; gender; agricultural value chains; informal sector; qualitative analysis
    Date: 2021
  9. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria)
    Abstract: Purpose – The purpose of this paper is to critically examine the corporate social responsibility initiatives of multinational oil companies in Nigeria. Its main focus is to investigate the impact of the global memorandum of understanding (GMoU) on equipping the rural young people with essential farming skills and knowledge for adoption and application of modern agricultural inputs in the Niger Delta region. 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 young people were sampled across the oil producing region. Findings – The results from the use of combined propensity score matching and logit model indicate that the GMoU model has a significant impact on development of informal farm entrepreneurship generally, but somewhat undermined rural young people in the targeted agricultural clusters. Practical implications – This suggests that youth-specific CSR farm projects can be effective in providing young people with the extra push needed to tackle the knowledge gap and poor agronomic that erect the below-per yield and lack of competitiveness of small-holder farmers in the region. Social implications – It implies that a coherent and integrated CSR response from business would be necessary to unlock investment opportunities on young people in farms for agricultural competitiveness and food security in Africa. Originality/value – This research adds to the literature on informal farm entrepreneurship and rural communities’ debate in sub-Saharan Africa. It concludes that business has obligation to help in solving problems of youth unemployment in developing countries.
    Keywords: Global memorandum of understanding (GMoU), Rural young people, Informal farm entrepreneurship, sub-Saharan Africa
    Date: 2021–01
  10. By: Céline Merlin-Brogniart (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Lars Fuglsang (Roskilde University); Ada Scupola (Roskilde University); Anne Hansen (Roskilde University); Rolf Rønning (The Inland Norway University of Applied Sciences); Siv Magnussen (The Inland Norway University of Applied Sciences); Alberto Peralta (UAH - Universidad de Alcalá - University of Alcalá); Miklós Rosta (Corvinus University of Budapest); Márton Katona (Corvinus University of Budapest); Éva Révész (Corvinus University of Budapest)
    Abstract: In the context of the modernization of public management in Europe, the attention paid to social entrepreneurs for innovation is increasingly important. This paper reveals that these actors significantly contribute to the development of collaborative governance aimed at improving social innovation related to public service through their role as initiator, boundary spanner or network leader. However, the public sector actors involved in the governance also have a significant role to play in enabling these innovations to emerge. This paper analyzes the forms and processes of innovation taken by this multi-actors collaborative governance. It is based on the study of 25 case studies associated with five countries of the European Union.
    Date: 2021–01–21
  11. By: Céline Merlin-Brogniart (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Lars Fuglsang (Roskilde University); Ada Scupola (Roskilde University); Rolf Rønning (The Inland Norway University of Applied Sciences); Siv Magnussen (The Inland Norway University of Applied Sciences); Alberto Peralta (UAH - Universidad de Alcalá - University of Alcalá)
    Abstract: In the field of collaborative governance, governments tend to increasingly involve various actors to innovate in meeting social needs in terms of public services. This paper analyzes the key dimensions related to this type of governance in the scientific and grey literature of several European countries. Five research streams have been identified. One key dimension appears common to all countries: social entrepreneurship. Differences between countries are explained by the existence of different forms of welfare state.
    Date: 2021–01–21

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