nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒01‒31
twelve papers chosen by
Marcus Dejardin
Université de Namur

  1. A Golden Opportunity: The Gold Rush, Entrepreneurship and Culture By Stuetzer, Michael; Brodeur, Abel; Obschonka, Martin; Audretsch, David; Rentfrow, Peter J.; Potter, Jeff; Gosling, Samuel D.
  2. Being Your Own Boss and Bossing Others: The Moderating Effect of Managing Others on Work Meaning and Autonomy for the Self-Employed and Employees By Nikolova, Milena; Nikolaev, Boris; Boudreaux, Christopher
  3. A Long View of Employment Growth and Firm Dynamics in the United States: Importers vs. Exporters vs. Non-Traders By Kyle Handley; Fariha Kamal; Wei Ouyang
  4. Comparing Crowdfunding Theory and Practice: The Case of Technology Firms in England By Miglo, Anton
  5. SMEs Amidst the Pandemic and Reopening: Digital Edge and Transformation By Cong, Lin William; Yang, Xiaohan; Zhang, Xiaobo
  6. Tackling the Scale-up Gap: Evidence and impact of the scale-up financing gap for innovative firms in Europe and reflections on potential solutions By Anita Quas; Colin Mason; Ramón Compañó; James Gavigan; Giuseppina Testa
  7. Financial Frictions, Firm Dynamics and the Aggregate Economy: Insights from Richer Productivity Processes By Ruiz-García, J. C.
  8. A Welfare Analysis on Start-Up Decisions under Default Risk By Nicola Comincioli; Paolo Panteghini; Sergio Vergalli
  9. EU Sustainability Taxonomy for non-financial undertakings: summary reporting criteria and extension to SMEs By Andrea Giacomelli
  10. Innovation Ecosystems in the Creative Sector: The Case of Additive Manufacturing and Advanced Materials for Design By Ubaldo Spina; Ramón Compañó
  11. Values of Farmers in the Context of Entrepreneurship – Evidence from Germany By Graskemper, Viktoria; Meine, Karolin; Feil, Jan-Henning
  12. Im Auge des Betrachters? Warum wir zwischen KMU und Mittelstand unterscheiden müssen By Pahnke, André; Welter, Friederike; Audretsch, David B.

  1. By: Stuetzer, Michael (Technische Universität Ilmenau); Brodeur, Abel (University of Ottawa); Obschonka, Martin (Queensland University of Technology); Audretsch, David (Indiana University); Rentfrow, Peter J. (University of Cambridge); Potter, Jeff (Atof Inc., Cambridge); Gosling, Samuel D. (University of Texas at Austin)
    Abstract: We study the origins of entrepreneurship (culture) in the United States. For the analysis we make use of a quasi-natural experiment – the gold rush in the second part of the 19th century. We argue that the presence of gold attracted individuals with entrepreneurial personality traits. Due to a genetic founder effect and the formation of an entrepreneurship culture, we expect gold rush counties to have higher entrepreneurship rates. The analysis shows that gold rush counties indeed have higher entrepreneurship rates from 1910, when records began, until the present as well as a higher prevalence of entrepreneurial traits in the populace.
    Keywords: gold rush, entrepreneurship, culture
    JEL: L26 R12 N5 N9
    Date: 2021–11
  2. By: Nikolova, Milena (University of Groningen); Nikolaev, Boris (Emory University); Boudreaux, Christopher (Florida Atlantic University)
    Abstract: We examine the moderating role of being a supervisor for meaning and autonomy of self-employed and employed workers. We rely on regression analysis applied after entropy balancing based on a nationally representative dataset of over 80,000 individuals in 30 European countries for 2005, 2010, and 2015. We find that being a self-employed supervisor is correlated with more work meaningfulness and autonomy compared with being a salaried supervisor working for an employer. Wage supervisors and self-employed supervisors experience similar stress levels and have similar earnings, though self- employed supervisors work longer hours. Moreover, solo entrepreneurs experience slightly less work meaningfulness, but more autonomy compared with self-employed supervisors. This may be explained by the fact that solo entrepreneurs earn less but have less stress and shorter working hours than self- employed supervisors.
    Keywords: self-employment, supervisors, autonomy, work meaningfulness
    JEL: I31 L26 M10
    Date: 2021–12
  3. By: Kyle Handley; Fariha Kamal; Wei Ouyang
    Abstract: The first experimental product from the U.S. Census Bureau's Business Dynamics Statistics (BDS) program -- BDS-Goods Traders -- provides annual, public-use measures of business dynamics by four mutually exclusive goods-trading classifications: exporter only, importer only, exporter and importer, and non-trader. The BDS-Goods Traders offers a comprehensive view of employment growth at firms associated with goods trading activities in the United States from 1992-2019. We highlight three patterns. First, employment is skewed towards goods traders in several ways. Only 6% of all U.S. firms are goods traders but they account for half of total employment. Moreover, 80% of large firms and 70% of older firms are goods traders. Second, exporter-importer firms represent 70% of manufacturing employment and over half of employment in services-producing industries (management, retail, transportation, utilities, and wholesale). Third, goods-traders exhibit higher net job creation rates than non-traders controlling for firm size, age, and sector. Goods traders contribution to total job creation grows over time, rising to more than half after 2008.
    Keywords: exporters, importers, job creation, job destruction, entry, exit
    JEL: F10 F14 F23
    Date: 2021–12
  4. By: Miglo, Anton
    Abstract: This article analyzes crowdfunding campaigns of technology firms in England. We compare the predictions of crowdfunding theories with empirical evidence. We are particularly focused on factors of campaign success related to indirect signalling (such as the choice of campaign target) by founders that have mixed evidence in existing research as opposed to direct signalling (eg. the number of updates by founders). We have found that the campaign target has U-shape effect on success of campaign. For example, the probability of success increases if the threshold value is neither very small or significantly large. This is consistent with the spirit of some theoretical research on crowdfunding. We also provide an overview of literature related to informational problems in crowdfunding, highlight gaps and controversial areas and provide some suggestions for future research.
    Keywords: crowdfunding, reward-based crowdfunding, crowdfunding in technology sector, digital entrepreneurship, information asymmetry, signalling, factors of crowdfunding success, campaign target
    JEL: G32 M21 O33
    Date: 2022–01
  5. By: Cong, Lin William; Yang, Xiaohan; Zhang, Xiaobo
    Abstract: Using administrative universal firm registration data as well as primary offline and online surveys of small businesses in China, we examine (i) whether digitization helps Small and Medium Enterprises (SMEs) better cope with the COVID-19 pandemic, and (ii) whether the pandemic has spurred digital technology adoption. We document significant economic benefits of digitization in increasing SMEs’ resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. Post the January 2020 lockdown, firm entries exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced initial drop and a quicker rebound. Moreover, the pandemic has accelerated digital transformation of existing firms and the aggregate industry in multiple dimensions (e.g., altering operation scope to include e-commerce, allowing remote work, and adopting electronic information systems). The effect persists one year after full reopening, offering suggestive evidence for the long-term impact of the pandemic and transitory mitigation policies.
    Keywords: Health Economics and Policy
    Date: 2021–11–01
  6. By: Anita Quas (University of Milan); Colin Mason (University of Glasgow); Ramón Compañó (European Commission - JRC); James Gavigan (European Commission - JRC); Giuseppina Testa (European Commission - JRC)
    Abstract: The number of scale-up businesses in the EU, particularly unicorns, lags behind the US and China. This is partially attributed to a deficit in scale-up finance. Based on an a webinar between experts which took place on 5th October 2021, this paper reports and comments on the available evidence of the scale-up financing gap in the EU and discusses its causes and consequences. The paper also reviews what types of instruments might address this gap and discusses issues that need to be addressed in the formulation of effective policy interventions. Finally, it points to missing data, existing knowledge gaps, and areas on which further analysis is required to define better policies.
    Keywords: startups, scaleups, venture capital, finance, innovation
    JEL: O32 O31 O25
    Date: 2021–12
  7. By: Ruiz-García, J. C.
    Abstract: How do financial frictions affect firm dynamics, allocation of resources across firms, and aggregate productivity and output? Is the nature of productivity shocks that firms face primary for the effects of financial frictions? I first use a comprehensive dataset of Spanish firms from 1999 to 2014 to estimate non-parametrically the firm productivity dynamics. I find that the productivity process is non-linear, as persistence and shock variability depend on past productivity, and productivity shocks are non-Gaussian. These dynamics differ from the ones implied by a standard AR(1) process, commonly used in the firm dynamics literature. I then build a model of firm dynamics with financial frictions in which productivity shocks are non-linear and non-Gaussian. The model is consistent with a host of evidence on firm dynamics, financial frictions, and firms’ financial behaviour. In the model economy, financial frictions affect the firm life cycle. Without financial frictions, the size of an entrant firm will be three times larger. Furthermore, profit accumulation, which allows firms to overcome financial frictions, is slow, and it only speeds up when firms are mature. As a consequence, the average exiting firm is smaller than it would be without financial frictions. The aggregate consequences of financial frictions are significant. They result in misallocation of capital and reduce aggregate productivity by 16%. This figure is only 8% if productivity dynamics evolve according to a standard AR(1) process.
    Keywords: Firm Dynamics, Non-Linear Productivity Process, Financial Frictions, Misallocation
    JEL: E22 G32 O16
    Date: 2021–08–03
  8. By: Nicola Comincioli; Paolo Panteghini; Sergio Vergalli
    Abstract: This short article studies the tax effects on a start-up investment decision under uncertainty. Since the representative firm can decide both when to invest and how much to borrow, the distortive effects are twofold. We thus show that the deadweight loss (namely, the ratio between the welfare loss and tax revenue) ranges from 25 to 32%, whereas mature firms face a lower distortion (as shown by Comincioli et al. (2021) the maximum deadweight loss is about 25%).
    Keywords: real options, business taxation, default risk
    JEL: H25 G33 G38
    Date: 2021
  9. By: Andrea Giacomelli (Department of Economics, University Of Venice CÃ Foscari)
    Abstract: The European Taxonomy defines in a technically robust way the system of sustainability objectives at the level of the European Union and the technical criteria for verifying which economic activities contribute to achieve the system of objectives. Compared to the current practices on sustainability, the EU Taxonomy introduces new and articulated principles for assessing the environmental sustainability of undertakings and new operational challenges, which are complex to implement. Indeed, the contents of the Taxonomy have a strong impact and therefore require in-depth analysis on many fronts. The paper aims to contribute to shed light on the above issues, focusing on non-financial undertakings and pursuing 3 main objectives. The first objective of the paper is to disseminate the main contents of the Taxonomy. The second objective is to introduce general criteria to satisfy in order to represent the articulated contents required by the Taxonomy in an exhaustive and easy-to consult summary reporting. The third objective concerns some preliminary reflections on possible ways of extending the Taxonomy to Small and Medium Enterprises (SMEs), which play a very significant role in the European economic system.
    Keywords: EU sustainability taxonomy, environmental sustainability, sustainability plan, sustainable investment, ESG risk, climate change risk, transition risk, ESG sustainability report
    JEL: D81 K32 O21 Q50 Q51 Q56
    Date: 2021
  10. By: Ubaldo Spina; Ramón Compañó (European Commission - JRC)
    Abstract: This report provides an ecosystem analysis of cultural and creative industry (CCI) sector with regard to the adoption of new technologies and as case studies additive manufacturing and advanced materials as these two technologies are becoming consolidated in prototyping and manufacturing in many industrial sectors, but are still in their infancy in the CCI. The introduction of these two technologies, however, is the base of emerging new business models as showcased by a number of promising startups. We identified 430 CCI-startups in Europe that operate innovative products or services and that were further analysed via an online survey to which 83 companies participated. In addition, we discuss the role innovation ecosystems for the CCI development in Europe taking four ecosystems as example, namely the ‘Finnish Additive Manufacturing Ecosystem’ in Helsinki, the ‘Design Farm’ in Berlin, the ‘Sustainable and Tech Fashion’ hub in Amsterdam and “Portuguese footwear cluster” in the northern region of Portugal. Our study shows that green and digital transformations make additive manufacturing and advanced materials technologies quite worth looking into for CCI firms. The survey demonstrates a high degree of business dynamism of those companies that have fully embraced additive manufacturing and advanced materials as their operational basis. Furthermore we show that an effective ecosystem are key for deploying novel technologies to the sector, mostly composed by small and very small enterprises.
    Keywords: cultural and creative industries, additive manufacturing, 3D printing, materials, startups, business models,innovation
    JEL: O32 O31 O25
    Date: 2021–12
  11. By: Graskemper, Viktoria; Meine, Karolin; Feil, Jan-Henning
    Keywords: Farm Management
    Date: 2020–09–18
  12. By: Pahnke, André; Welter, Friederike; Audretsch, David B.
    Abstract: Bis heute gibt es kein gemeinsames, weithin akzeptiertes und konsequent angewandtes Verständnis dessen, was den Mittelstand ausmacht. Die meisten empirischen Untersuchungen zu mittelständischen Unternehmen stützen sich auf Daten von kleinen und mittleren Unternehmen (KMU). Obwohl diese einfach zu messenden Kriterien (wie die Gesamtzahl der Beschäftigten und/oder der Jahresumsatz) nur hilfsweise verwandt wurden, werden sie mittlerweile als charakteristische Merkmale von mittelständischen Unternehmen angesehen. Gerade in der internationalen Literatur hat sich so der Irrtum verbreitet, dass der Begriff des mittelständischen Unternehmens mit KMU übersetzt werden könne. Die vorliegende Arbeit stellt diese Gleichsetzung von Mittelstand und KMU in Frage. Wir untersuchen verschiedene Ansätze zur Analyse von mittelständischen Unternehmen, indem wir uns auf drei Kriterien konzentrieren: Unternehmensgröße, Eigentumsstrukturen und das Gefühl, zum Mittelstand zu gehören. Unsere empirischen Analysen entlang dieser drei Kriterien stützen das Argument, dass die Gleichsetzung von Mittelstand und KMU generell problematisch ist, weil diese Ansätze nicht deckungsgleich sind. Wenn man jedoch die Einheit von Eigentum und Leitung als Kernelement des Mittelstandes in den Mittelpunkt stellt, eröffnen sich umfassende und zugleich bes-ser vergleichbare Forschungsansätze.
    Keywords: KMU,Mittelstand,Unternehmertum,Firmengröße
    JEL: L26 M13
    Date: 2021

This nep-ent issue is ©2022 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.