nep-ent New Economics Papers
on Entrepreneurship
Issue of 2021‒11‒08
eleven papers chosen by
Marcus Dejardin
Université de Namur

  1. Serial Entrepreneurs, the Macroeconomy and Top Income Inequality By Sónia Félix; Sudipto Karmakar; Petr Sedlácek
  2. Start-Up Subsidies and the Sources of Venture Capital By Hottenrott, Hanna; Berger, Marius
  3. Growing Through Spinoffs By Maurizio Iacopetta; Raoul Minetti; Pierluigi Murro
  4. Promoting Self-employment:Does it create more Employment and Business Activity? By Gilbert Cette; Jimmy Lopez
  5. Scale-up phase in deeptech start-ups: Replication or massive learnings? By Louise Taupin; Pascal Le Masson; Blanche Segrestin
  6. From automation to databased business models - Digitalization and its links to innovation in small and medium-sized enterprises By Thomä, Jörg; Bischoff, Thore Sören
  7. Small Firms and the Pandemic: Evidence From Latin America By Christopher Neilson; Maria Guerrero; John Humphries; Naomi Shimberg; Gabriel Ulyssea
  8. Impact of Covid-19 on Different Entrepreneurial Schemes By Publishers, KMF; Yadav, Ankit
  9. Revisiter l’innovation : la vulnérabilité organisationnelle des PME innovantes dans le secteur des sports outdoor By Bastien Soulé; Julie Hallé; Eric Boutroy; Bénédicte Vignal
  10. Rechtsrahmen eines Start-Up-Managements By Zerres, Thomas; Zerres, Christopher
  11. Unternehmensgrößenstatistik 2019: Auswirkungen der Berücksichtigung geringfügig Beschäftigter im Unternehmensregister auf die KMU-Kennzahlen By Braun, Simone; Kay, Rosemarie

  1. By: Sónia Félix; Sudipto Karmakar; Petr Sedlácek
    Abstract: Are serial entrepreneurs – owners of multiple firms – important for understanding the sources and aggregate consequences of business dynamism? Using unique administrative data, we show that – compared to other businesses – firms of serial entrepreneurs are larger, more productive, grow faster, exit less often and disproportionately contribute to aggregate job creation and productivity growth. Moreover, even the very first firms of serial entrepreneurs feature these “premia”, suggesting an important role of innate abilities, rather than luck or learning. Finally, we show theoretically and quantitatively that serial entrepreneurship is also important for understanding and modelling of top income inequality.
    JEL: D22 E24 L1
    Date: 2021
  2. By: Hottenrott, Hanna; Berger, Marius
    JEL: G24 L26 O25 O31
    Date: 2021
  3. By: Maurizio Iacopetta (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Raoul Minetti (Michigan State University [East Lansing] - Michigan State University System); 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
    Date: 2020–04–29
  4. By: Gilbert Cette; Jimmy Lopez
    Abstract: We assess the economic impact of reforms promoting self-employment in the three countries that have implemented such reforms since the early 2000s: the Netherlands, the United Kingdom and France. To that end, we use an unbalanced cross country-industry dataset of 4,226 observations, including 12 OECD countries and 20 market industries, over the 1995-2016 period. We first observe, using country-level data, that the share of self-employed workers in total employment is quite stable or declines over the period in all countries in our dataset, except in the three countries where large reforms promoting self-employment have been implemented, and only after these reforms. We econometrically confirm this impact on self-employment in our set of 20 industries and we find that, at the end of the period, the reforms may have increased the share of self-employed workers in total employment by 5.5pp on average in the Netherlands, 2.5pp in the United Kingdom and 2pp in France. Then, we investigate the impact of reforms on total employment and value added using a difference-in-differences approach. In spite of a broad sensitivity analysis, we find no evidence that the reforms may have impacted either total employment or value-added.These results suggest that the reforms promoting self-employment may have raised the number of self-employed workers, but mostly through a substitution effect between the self-employed and employees, and not through a supply effect or a substitution effect with informal activities. This means that the reforms may have failed to achieve their main objectives.
    Keywords: Self-employment, Entrepreneurship, Structural Reforms.
    JEL: H24 J21 J38 K31
    Date: 2021
  5. By: Louise Taupin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, BPIFRANCE); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Because of the possible response to main, current and global issues, a particular attention is paid to deeptech start-ups and their growth mechanisms. Nevertheless, first observations on technological start-ups point out a limited growth. As deeptech start-ups are developing by nature advanced technologies, they are intended to be deployed on different markets, revealing technological genericity. Scaling these technologies encounters unfortunately some hurdles and seems to be more complex. This article focuses on scale-up for deeptech startups and on means to achieve this development phase. Literature usually considers scale-up as a phase of business model replication, suggesting low learnings. On the contrary, our hypothesis is to regard scale-up as a more complex phase in deeptech start-ups development, through additional means and learnings that have to be determined. This research is based on 8 case studies from different fields: For each start-up, we study what should be learnt and what should be relevant design strategies to ensure scale-up. Main issue in scale-up phase appears to prove that most of activities will not change, that should refer to the concept of creation heritage, taking into account external interactions.
    Keywords: Start-up deeptech,Scale-up
    Date: 2021–07–07
  6. By: Thomä, Jörg; Bischoff, Thore Sören
    Abstract: Digitalization is one of the main trends affecting firm-level innovation today. In this context, a better understanding of the multidimensional relationship between digital technologies, competences and firm-level innovation is necessary. For this purpose, this paper examines the role of digital transformation in the context of innovation activities of small and medium-sized enterprises (SMEs). Based on a systematic review of the fourth edition of the Oslo Manual and a subsequent qualitative content analysis (QCA) of interview data on innovating German SMEs, a category system is derived covering different facets of the digitalization-innovation link along seven main categories and 32 sub-categories. This category system is employed to analyze the interview data, with several findings pointing to the heterogeneity of innovating SMEs in terms of digitalization. It emerges that there tend to be two ideal types of "digitalizers" among innovating SMEs. On the one hand, process innovators using digital technologies and practices to generate efficiency and automation benefits, whereby they must build up basic digital competences within the firm to achieve this aim. On the other hand, product innovators with advanced competences in digitalizing their goods and services that have often already gained experiences in adopting a digital business model. The paper concludes with implications for innovation measurement, policy and further research.
    Keywords: Digitalization,Digital innovation,Innovation measurement,Qualitative content analysis,SMEs
    JEL: D22 O31 O32 O33
    Date: 2021
  7. By: Christopher Neilson (Princeton University); Maria Guerrero (UCLA); John Humphries (Yale University); Naomi Shimberg (Yale University); Gabriel Ulyssea (UCL)
    Abstract: This paper studies the effects of the COVID-19 pandemic on small businesses between March and November 2020 using new survey data on 35,000 small businesses in eight Latin American countries. We document that the pandemic had large negative impacts on employment and beliefs regarding the future, which in turn predict meaningful economic outcomes in the medium-term. Despite the unprecedented amount of aid, policies had limited impact for small and informal firms. These ï¬ rms were less aware of programs, applied less, and received less assistance. This may have lasting consequences, as businesses that received aid reported better outcomes and expectations about the future.
    Keywords: COVID-19, small business, Latin America
    JEL: I10 D22
    Date: 2021–10
  8. By: Publishers, KMF; Yadav, Ankit
    Abstract: India saw economic downturn in 2018 due to various reasons, slipping from the tag of world fastest economy, moody amended India’s outlook to negative, unemployment rate were at 6.1% highest ever since 45 years, also registered electric generation growth at 1.8% lowest since 1990 accompanied by negative export growth rate which was around -1% in 2019. Which means Indian economy was almost at doorsteps of recession when Covid-19 made an appearance. This would probably the worst timing when covid-19 pandemic could have hit the economy. In order to resuscitate the economy from slippery slope of recession, government introduces some serious measures, but they were curtailed by covid-19 pandemic. Most of private firms lay-off their workers in order to save themselves from mounting losses due to lockdown, while other experienced a salary cut. Entrepreneurs are the building blocks of any nation & the same was realized by Indian government due to which some serious measures were taken to facilitate the entrepreneurs such as ATAL Innovation Mission, Startup India Initiative, ASPIRE etc. The main aim of government was to bring youth under the umbrella of self employement in order to tackle various issues to paddle out economy from grip of slowdown & to save entrepreneurial activities of micro business. It would be a descriptive study in which researcher aims to analyze the different schemes undertaken by government prior to covid-19 era & how these were impacted by covid-19. The study is going to provide an apogee that does pandemic may or may not have impacted entrepreneurial activities. Also it will highlight gravity of Government measures for micro businesses in India.
    Keywords: Government schemes, Covid-19, pandemic, entrepreneur
    JEL: D1 D10 D2 D3 D4
    Date: 2021
  9. By: Bastien Soulé (L-VIS - Laboratoire sur les Vulnérabilités et l'Innovation dans le Sport (EA 7428) - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon); Julie Hallé; Eric Boutroy; Bénédicte Vignal
    Abstract: While innovating is likely to procure competitive advantage within the industry of sports goods, it is also a risky activity which may lead to damaging consequences for companies. It therefore seems relevant to take an interest in the potential detrimental effects of innovation processes within small, particularly creative, companies in the sports sector. In this paper, we seek to know if, and how, engaging in an innovation process leads to singular forms of organizational vulnerability. Case studies were carried out in five small or medium-sized French companies specializing in the outdoors. We conducted a total of 48 interviews with different actors in the innovation processes, accompanied by field observations and analysis of secondary data. The priority frequently given to meeting technical challenges is likely to distance the product from the customer and real use. In certain cases, "innovation fever" generates internal imbalance. Second, some companies are too dependent on a key figure in their functioning, the inventor-entrepreneur; it sometimes implies a weakening of the innovation network during its vital decoupling stage. Finally, although the creation of innovation networks is necessary, it heightens the dependence on stakeholders and exposes to specific threats. Excessive confidence in the benefits of innovation can prove problematic. Innovators should not be discouraged, but reminded of the contingent and uncertain nature of the processes in which they engage, requiring anticipation and measure. The challenge consists in managing both the present and the future, while acknowledging that the exploitation of a routine does not prevent the exploration of new solutions.
    Keywords: innovation management,organizational vulnerability,outdoor sports,product innovation,small companies,management de l’innovation,vulnérabilité organisationnelle,sports outdoor,innovation de produit,petites entreprises
    Date: 2021–10–01
  10. By: Zerres, Thomas; Zerres, Christopher
    Abstract: Ziel dieses Ratgebers ist es, die für Unternehmensgründer relevanten juristischen Aspekte aufzuzeigen und diese hierfür zu sensibilisieren. Während Ratgeber zur Ideengewinnung, zur Vermarktung oder auch zu Finanzierungsfragen relativ häufig zu finden sind, werden die rechtlichen Rahmenbedingungen kaum beleuchtet. Dabei weisen die Komponenten eines Start-up-Marketing unterschiedliche Schwerpunkte und Vertiefungsgrade zum traditionellen Marketingauf. Dieses wird im vorliegenden Ratgeber auch im Hinblick auf die rechtlichen Rahmenbedingungen berücksichtigt. Zu Beginn steht die Innovation oder die Geschäftsidee im Mittelpunkt. Diese sowie eine damit verbundene Marke gilt es zu schützen. Weitere zentrale Anfangsüberlegungen betreffen die zu wählende Rechtsform. Wichtige Aspekte sind zudem aus rechtlicher Sicht die Verträge mit den Investoren und diejenigen Rechtsfragen, die mit dem Internet verbunden sind, vor allem der Onlinevertrieb oder die Social-Media-Nutzung. Bei der Vermarktung seiner Leistungen muss ein Start-up-Verantwortlicher rechtliche Fragen möglichst proaktiv berücksichtigen sowie darauf achten, dass sein Verhalten im Wettbewerb nicht durch unlauteres Handeln geprägt wird. Dieser Ratgeber orientiert sich bei der Vorstellung der rechtlichen Rahmenbedingungen am Ablauf des Gründungsprozesses eines Start-ups: ➢ Anmeldung, ➢ Schutz der Geschäftsidee, ➢ Wahl der Rechtsform und ➢ Marketingaktivitäten.
    Keywords: Start-up-Management
    Date: 2021
  11. By: Braun, Simone; Kay, Rosemarie
    Abstract: Das Statistische Bundesamt hat methodische Anpassungen am Unternehmensregister vorgenommen, die sich auf den KMU-Anteil am Unternehmensbestand, am Umsatz und der Beschäftigung auswirken. Das Herabsetzen der Schwellenwerte für die Auswertungsrelevanz von Unternehmen führt zu einer Zunahme des Unternehmensbestands, vor allem der Kleinunternehmen. Die Berücksichtigung der geringfügig entlohnt Beschäftigten führt zu einer Verschiebung in der Unternehmensgrößenstruktur, weil es bei der Zuordnung der Unternehmen zu Unternehmensgrößenklassen zu Wechseln in die nächsthöhere Klasse kommt. Auf die jeweiligen KMU-Anteile wirken sich diese Verschiebungen jedoch nur geringfügig und letztlich vernachlässigbar aus. Allerdings haben die KMU einen deutlich höheren Anteil an den geringfügig entlohnt Beschäftigten als an den sozialversicherungspflichtig Beschäftigten, wodurch sich ihr Anteil an der Beschäftigung erhöht.
    Keywords: Business size statistics,SME key figures,Germany,Unternehmensgrößenstatistik,KMU-Kennzahlen,Deutschland
    JEL: C80 L11
    Date: 2021

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