nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒04‒25
seven papers chosen by
Marcus Dejardin
Université de Namur

  1. Investing in the Next Generation: The Long-Run Impacts of a Liquidity Shock By Patrick Agte; Arielle Bernhardt; Erica M. Field; Rohini Pande; Natalia Rigol
  2. Transferable Skills? Founders as Venture Capitalists By Paul A. Gompers; Vladimir Mukharlyamov
  3. How women social entrepreneurs are innovating global impact By Leila Farraj; Aminanur Chaia; Shumaila Yousafzai
  4. Investigating Entrepreneurial Intention of Developing Economy Citizens: A PLS-SEM Approach By Mushkoor ul Hassan Zaidi, Syeda Anzalna; Fazil, Malik; Khalid, Hamza Bin; Jawed, Shahzain; Aleem, Muhammad Owais
  5. COVID-19, Fintech, and the Recovery of Micro, Small, and Medium-sized Enterprises: Evidence from Bangladesh By Hossain, Monzur; Chowdhury, Tahreen Tahrima
  6. Evolving Impacts of the COVID-19 Pandemic on Micro, Small, and Medium-Sized Enterprises in Asia By Igarashi, Takiko; Takeda, Asami; Truong, Hoa T.; Sonobe, Tetsushi
  7. Die volkswirtschaftliche Bedeutung von Familien- und Frauenunternehmen By Fels, Markus; Wolter, Hans-Jürgen

  1. By: Patrick Agte; Arielle Bernhardt; Erica M. Field; Rohini Pande; Natalia Rigol
    Abstract: How do poor entrepreneurs trade off investments in business enterprises versus children's human capital, and how do these choices influence intergenerational socio-economic mobility? To examine this, we exploit experimental variation in household income resulting from a one-time relaxation of household liquidity constraints (Field et al., 2013), and track schooling and business outcomes over the subsequent 11 years. On average, treatment households, who were made wealthier through the experiment, increase human capital investment such that their children are 35% more likely to attend college. However, schooling gains only accrue to children with literate parents, among whom college attendance nearly doubles. In contrast, treatment effects on investment among the illiterate accrue only on the business margin and are accompanied by adverse educational outcomes for children. As a result, treatment lowers relative educational mobility. In a forecasting exercise, we find that earnings gains for literate households are four times larger than the earnings gains for illiterate households, raising earnings inequality. Our findings highlight how parental investment choices can contribute to a growth in intergenerational earnings inequality despite reductions in urban poverty.
    JEL: G32 I24 I25 I26 I32 L26 O1 O15 O16
    Date: 2022–03
  2. By: Paul A. Gompers; Vladimir Mukharlyamov
    Abstract: In this paper we explore whether or not the experience as a founder of a venture capital-backed startup influences the performance of founders who become venture capitalists (VCs). We find that nearly 7% of VCs were previously founders of a venture-backed startup. Having a successful exit and being male and white increase the probability that a founder transitions into a venture capital career. Successful founder-VCs have investment success rates that are 6.5 percentage points higher than professional VCs while unsuccessful founder-VCs have investment success rates that are 4 percentage points lower than professional VCs. While successful founder-VCs do get higher quality deal flow than professional or unsuccessful founder-VCs, observably higher deal quality does not explain the entire difference in performance. Using an instrumental variables approach to separate unobservable deal quality from value-add, we find that the outperformance of successful founder-VCs is consistent with them adding more value post-investment.
    JEL: G02 G24 G30 L14 L20
    Date: 2022–04
  3. By: Leila Farraj; Aminanur Chaia; Shumaila Yousafzai
    Date: 2022
  4. By: Mushkoor ul Hassan Zaidi, Syeda Anzalna; Fazil, Malik; Khalid, Hamza Bin; Jawed, Shahzain; Aleem, Muhammad Owais
    Abstract: This study investigates the intention of graduate students towards entrepreneurial education in context of four factors (Risk-Taking Behavior, Innovativeness, Proactiveness, and Network ties) and their influence on an entrepreneurial intention. The objective is to explore that how people of a developing economy look towards the goal of becoming an entrepreneur instead of working for some organization. The developing economies are facing serious issues regarding lack of job opportunities, increasing inflation, and deteriorating economies conditions. Hence, it necessary to inspect people entrepreneurial intention. So that in upcoming times, it can be promoted. The universities are playing an important role for the higher education of students and the trend of entrepreneurship have been increasing day by day in the recent past years, this will create multiple job opportunities for the emerging talent. To dissect this, question this research was performed via data collection through structured questionnaires, in paper as well as Google survey forms, distributed to 200 respondents using Convenience sampling in different universities of Karachi. The data was analysed using PLS-SEM. We also use 5-point Likert scale Questioner for collection our primary data through online survey. Moreover, 2 paths are showing significant positive effect but 2 are showing insignificant positive effect that’s why 2 hypotheses are rejected and 2 are accepted out of 4. Results show that the study has a few limits hypothetical model was inspected on the University Students in Pakistan just perhaps the understudies are living in different nations and they don't have any source to introduce their thoughts before different people groups. The future review will zero in on taking the information of different nations, besides this study has not many factors so the future analyst will add different factors like business thought, Competitive benefit etc. Thus, further endeavors should think about a few subjective strategies with triangulation through meetings or center gatherings to additionally comprehend and affirm the quantitative outcomes.
    Keywords: Risk-Taking Behavior, Innovativeness, Entrepreneurship, Developing Economy
    JEL: A1 A13 A2 A23 M1
    Date: 2022
  5. By: Hossain, Monzur (Asian Development Bank Institute); Chowdhury, Tahreen Tahrima (Asian Development Bank Institute)
    Abstract: We assess the impact of the COVID-19 pandemic on micro, small, and medium-sized enterprises (MSMEs) and the role of fintech, in particular, mobile financial services (MFS), in their recovery from COVID-induced losses. We use data from a survey of 216 MSMEs from Bangladesh Small and Cottage Industries Corporation industrial estates in Bangladesh during January to March 2021. Our results suggest that firms have been recovering gradually after the withdrawal from lockdown in June 2020. So far, 80% of production of the firms compared with pre-COVID levels had recovered by the end of December 2020. We use instrumental variable regression to assess the impact of the use of MFS on firms’ production, sales, and profit for three periods: lockdown (March–May 2020), limited lockdown (June–September 2020) and the reopening period (October–December 2020). We find significant and positive impact from the use of MFS on the production, sales, and profit of firms during this pandemic. The results indicate that the use of digital finance facilitates firms’ production through ensuring a stable supply of raw materials and sales that have prompted them to recover faster. However, the concern is that only about 31% of our sample firms use MFS for their businesses and an even lower proportion of firms are accustomed to using an online platform. Therefore, more incentives and supportive policies are needed to motivate MSMEs to use digital finance and online platforms to stay active in operations, particularly during the pandemic.
    Keywords: fintech; MSMEs; Bangladesh Small and Cottage Industries Corporation Estates; BSCIC; COVID-19; firm recovery; Bangladesh
    JEL: D20 D22 G10 G20
    Date: 2022–04–01
  6. By: Igarashi, Takiko (Asian Development Bank Institute); Takeda, Asami (Asian Development Bank Institute); Truong, Hoa T. (Asian Development Bank Institute); Sonobe, Tetsushi (Asian Development Bank Institute)
    Abstract: Since the first quarter of 2020, micro, small, and medium-sized enterprises (MSMEs) in developing countries have faced significant hardship due to the economic shocks related to the COVID-19 pandemic. Questions arise, however, regarding the extent to which MSMEs’ hardship has varied between sectors and between countries over time, whether it is gender neutral, whether the digitalization of MSMEs could alleviate it, and whether government support has reached MSMEs. We answer these questions using new survey data from eight developing Asian countries around the middle and toward the end of 2020. We found a wide variation in the severity of and responses to the pandemic impacts on MSMEs between sectors and between countries. Turning to common trends, our significant findings were as follows. First, MSMEs’ sales and non-permanent employment tended to recover toward late 2020. Second, despite the general trend, the pandemic shocks concentrated on hard-hit industries, such as food processing, textiles, tourism, food and drink services, and education, which even deteriorated in the second half of 2020. Third, women-led enterprises remained vulnerable, exhibiting bleak prospects for sales or more job cuts than men-led but otherwise similar enterprises. Fourth, the digitalization intensity had a nonlinear relationship with MSMEs’ sales and employment, suggesting that online sales beyond a certain threshold, around 40% of the total sales, could generate more revenues and jobs for MSMEs. Last, the number of MSMEs receiving support from their governments increased in the second half of 2020. Still, such support did not effectively reach the most affected or vulnerable MSMEs.
    Keywords: COVID-19; MSMEs; layoffs; cash shortage; digitalization
    JEL: D22 J63 L25 O53
    Date: 2022–04–01
  7. By: Fels, Markus; Wolter, Hans-Jürgen
    Abstract: Das IfM Bonn schätzt seit 2001 wiederholt die Zahl der Familienunternehmen sowie die Zahl der frauengeführten Familienunternehmen in Deutschland. Die aktuelle Schätzung kommt für das Jahr 2019 auf eine Zahl von rund 3,2 Mill. Familienunternehmen. Dies entspricht rund 90 % aller Unternehmen. 591.000 oder 18 % dieser Familienunternehmen sind frauengeführt. Familienunternehmen erwirtschaften in Deutschland rund 37 % aller Umsätze. In ihnen sind rund 56 % aller sozialversicherungspflichtig Beschäftigten tätig.
    Keywords: Familienunternehmen,Frauenunternehmen,Mittelstand,family business,female entrepreneurship,owner management
    JEL: L19 M29
    Date: 2022

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.