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on Entrepreneurship |
| By: | Corina Boar (New York University); Matthew Knowles (University of Cologne) |
| Abstract: | We study optimal taxation in a model with endogenous financial frictions, risky investment and occupational choice, where the distribution of wealth across entrepreneurs affects how efficiently capital is used. The planner chooses linear taxes on wealth, capital and labor income to maximize the steady state utility of a newborn agent. Most agents in the model are poor, leading to a redistributive motive for taxation. Optimal tax rates can be written as a closed-form function of the size of the tax bases and their elasticities with respect to tax rates. We find that it is optimal to tax capital income because financial frictions reduce the elasticity of capital income with respect to taxes and because capital income taxes prevent excessive entry into entrepreneurship. Optimal wealth taxes are positive but close to zero, since they strongly discourage capital accumulation. |
| Keywords: | Entrepreneurship; Financial Frictions; Taxation |
| JEL: | E2 E6 H2 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:166&r= |
| By: | Matej Bajgar; Chiara Criscuolo; Jonathan Timmis |
| Abstract: | This paper presents new evidence on the growing scale of big businesses in the United States, Japan and 11 European countries. It documents a broad increase in industry concentration across the majority of countries and sectors over the period 2002 to 2014. The rising concentration is strongly associated with intensive investment in intangibles, particularly innovative assets, software and data, and this relationship is magnified in more globalized and digital-intensive industries. The results are consistent with intangibles disproportionately benefiting large firms and enabling them to scale up and raise their market shares, increasingly over time. |
| Keywords: | competition, industry and entrepreneurship, innovation |
| Date: | 2021–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1806&r= |
| By: | Caliendo, Marco (University of Potsdam); Graeber, Daniel (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Seebauer, Johannes (DIW Berlin) |
| Abstract: | We investigate the effect of the COVID-19 pandemic on self-employed people’s mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis. |
| Keywords: | representative longitudinal survey data, gender, mental health, COVID-19, self-employment, PHQ-4 score, resilience |
| JEL: | L26 D31 I14 I18 J16 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15260&r= |
| By: | Noemi Oggero; Francesco Devicienti; Mariacristina Rossi; Davide Vannoni |
| Abstract: | In this paper, we investigate how the intergenerational transmission of entrepreneurship varies between sons and daughters, and whether such a process depends on living in a country characterized by a high gender gap. Using the SHARE dataset, we find that the effect on daughters’ entrepreneurial choices of having an entrepreneur as father is lower than the one on sons only in countries with a high gender gap. Moreover, it is just in countries with high gender inequality that the effect of having an entrepreneurial mother is different between sons and daughters, with the impact being positive for daughters only. We also develop an individual-level indicator of gender gap within countries that corroborates our findings, which we interpret as evidence of the presence of a role modeling mechanism. However, we find evidence of convergence across time of the intergenerational transmission process to the gender-independent transfer typical of more gender equal countries. |
| Keywords: | Entrepreneurship, Gender, Parents, Intergenerational transmission |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:cca:wpaper:675&r= |
| By: | Yojiro Ito (Economist, Institute for Monetary and Economic Studies (currently, Personnel and Corporate Affairs Department), Bank of Japan (E-mail: youjirou.itou@boj.or.jp)); Daisuke Miyakawa (Associate Professor, Hitotsubashi University Business School (E-mail: dmiyakawa@hub.hit-u.ac.jp)) |
| Abstract: | Studies on firm performance have found that exiting firms in Japan persistently show better performance than surviving firms, and this persistence adversely affects aggregate productivity. We use the panel data of business enterprises along with unique information on their exit modes (i.e., default, voluntary closure, and merger) to show that a large part of such a "negative exit effect" is attributed to the firms exiting through mergers. Further, we confirm that the causal effect of those mergers results in positive growth in the productivity of merging firms. Given that the size of such a positive causal effect overwhelms the negative exit effect, resource reallocation through mergers positively contributes to the aggregate growth in productivity for Japanese firms. |
| Keywords: | Productivity dynamics, Exit effects, Mergers |
| JEL: | D24 G33 G34 O47 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ime:imedps:22-e-07&r= |
| By: | Brett Barkley; Mark E. Schweitzer |
| Abstract: | We apply data from the Federal Reserve’s Small Business Credit Survey from 2016 to 2020 to estimate disparities in access to small business financing through loan denials and discouragement. We find that substantial credit disparities continue to exist despite the growth of fintech lenders, which prior research shows have expanded the set of small businesses receiving credit. Because the pandemic period brought many direct changes to the business and lending environment, we separately analyze the change to lending in 2020. PPP loans represented an unprecedented support for small businesses, support that was not dependent on the creditworthiness of businesses, but minority-owned businesses are estimated to have received a smaller fraction of the funds they applied for from the program. |
| Keywords: | small business lending; minority credit access; fintech; COVID-19 |
| JEL: | G21 L5 R3 |
| Date: | 2022–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:94290&r= |
| By: | Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio; Matarrese, Marco Maria |
| Abstract: | The following article investigates the determinants that lead innovative SMEs to collaborate. Data from 36 European countries is analyzed using Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS, WLS and Dynamic Panel models. The analysis shows that the ability of innovative SMEs to collaborate is positively associated with the following variables: "Linkages", "Share High and Medium high-tech manufacturing", "Finance and Support", "Broadband Penetration", "Non-R&D Innovation Expenditure" and negatively to the following variables: "New Doctorate graduates", "Venture Capital", "Foreign Controlled Enterprises Share of Value Added", "Public-Private Co-Publications", "Population Size", "Private co-funding of Public R&D expenditures". A clustering with k-Means algorithm optimized by the Silhouette coefficient was then performed and four clusters were found. A network analysis was then carried out and the result shows the presence of three composite structures of links between some European countries. Furthermore, a comparison was made between eight different predictive machine learning algorithms and the result shows that the Random Forest Regression algorithm performs better and predicts a reduction in the ability of innovative SMEs to collaborate equal to an average of 4.4%. Later a further comparison is made with augmented data. The results confirm that the best predictive algorithm is Random Forest Regression, the statistical errors of the prediction decrease on average by 73.5%, and the ability of innovative SMEs to collaborate is predicted to growth by 9.2%. |
| Keywords: | Innovation, and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation |
| JEL: | O30 O31 O32 O33 O34 |
| Date: | 2022–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113008&r= |
| By: | Ram Mohan, M.P.; Wadhwa, Muskaan |
| Abstract: | Insolvency and bankruptcy have always attracted a measure of stigma. The negative attitude towards insolvency emerged due to the historically harsh treatment of bankrupts and the perception of bankruptcy as a breach of a sacred relationship between the debtor and creditor. Majority of the existing legal scholarship studying the bankruptcy stigma focuses on personal insolvencies, while its influence on corporate insolvencies has largely been neglected. This paper attempts to fill this gap by examining the impact and manifestations of stigma in the context of corporate insolvency. The paper does so by contrasting the corporate insolvency schemes of the United States and the United Kingdom. It argues that while both jurisdictions prioritise the rehabilitation of corporate debtors, there is a divergence in the methodologies across the Atlantic due to the varied historical, cultural, and economic attitudes towards business failures. With this background, the paper explores bankruptcy stigma in the Indian context and shows how certain provisions of the Insolvency and Bankruptcy Code, 2016 seem to reinforce and perpetuate the stigma against incumbent management and promoters of corporate debtors. The paper argues that there is a need to ameliorate the stigma associated with corporate insolvency for the successful rescue and rehabilitation of distressed corporations and for promoting entrepreneurship, innovation, and economic growth in the country. |
| Date: | 2022–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14673&r= |
| By: | Mai, Nhat Chi |
| Abstract: | Since 1986, Vietnam has continued to transform from a centrally-planned to market-oriented economy. Over the past 30 years, Vietnam has enjoyed one of the world’s best performances in terms of both economic growth and poverty reduction. Living standards have improved significantly – remarkable achievements based on the country’s socioeconomics. These results stem from the efforts of hundreds of thousands of small and medium sized enterprises (SMEs), and micro enterprises nationwide. They are considered the ‘backbone’ of the economy, and their development is a key driver of sustainable economic development. In 2007, Vietnam officially became a member of the World Trade Organization (WTO); integration that has delivered substantial benefits, as evidenced by the recent rapid growth in exports, income and employment to develop the economy. In this process, SMEs continue to play an important role in the distribution of income, employment levels, export growth and poverty reduction. |
| Date: | 2022–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:dv68m&r= |
| By: | Brent Meyer; Mark E. Schweitzer |
| Abstract: | Working with Federal Reserve staff, the US Census Bureau added to the 2021 Annual Business Survey (ABS) a special module of questions focused on the pandemic and small business finances. Questions ranged from the impact of the pandemic on business sales, to government assistance requested/received, and to the financial health of the firm. In this article, we report the results of these questions—and how they differ by race and ethnicity. The survey finds that more than 60 percent of business experienced declines in sales. Fully one-third experienced significant declines. More than 70 percent of survey respondents requested government assistance, with the majority receiving 75 to 100 percent of their requests. However, the results also reveal that the fraction of minority-owned businesses receiving at least 75 percent of their requests was significantly lower for minority-owned businesses than for firms not owned by minorities. In general, the results find that minority-owned businesses were disproportionately affected by the COVID-19 pandemic, and expectations for business operations in 2022 are less optimistic than those for nonminority-owned businesses. |
| Keywords: | COVID-19; racial equity; small business credit access |
| JEL: | G21 L5 R3 |
| Date: | 2022–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:a00001:94151&r= |
| By: | Kochetkov, Dmitry |
| Abstract: | Innovation is often perceived as an object of study in economics and management. However, the social and behavioural aspects of innovation acceptance are as important as the economics of the new product development. Based on the interdisciplinary perspective, the authors formulated their own definition of innovation for the purposes of this study. The authors consider innovation as a change in the way social action is conducted, entailing a wide range of social, economic, behavioural, and institutional changes. The variety of approaches gives rise to the need for a typology. J. Sundbo (1998) divided innovation into three groups depending on the aspect of the phenomenon: the theory of entrepreneurship; technological and social aspects; and the strategic aspect. Adopting the Sundbo conceptual framework, the authors supplemented and developed it based on the literature that appeared after 1998. The authors also added new directions at the second level of decomposition and the relationship between different aspects of innovation. In particular, attention was paid to such phenomena as open innovation, agile innovation, “helix” models, etc. Thus, the authors have developed a novel typology of innovations, which expands the theoretical knowledge in this field. |
| Date: | 2022–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:pv4zg&r= |
| By: | Kay, Rosemarie; Kranzusch, Peter; Nielen, Sebastian |
| Abstract: | Basierend auf der Gewerbeanzeigenstatistik und vielfältigen weiteren Informationen zum Gründungsökosystem untersuchen wir die Auswirkungen der Covid19-Pandemie auf das Gründungsgeschehen in den 401 Kreisen und kreisfreien Städten in Deutschland. Die Pandemie hat - neben der Novellierung der Handwerksordnung - in der Mehrzahl der Kreise zu einem Rückgang der Existenzgründungsintensität geführt. Das Ausmaß dieser Rückgänge variiert ebenso wie das Ausmaß der Anstiege erheblich. Regionale Faktoren des Gründungsökosystems scheinen auf diese Entwicklung jedoch kaum Einfluss ausgeübt zu haben. Der durch die Pandemie ausgelöste ökonomische Schock hat die Pfadabhängigkeit der Entwicklung des Gründungsgeschehens in den Regionen offenbar nicht gebrochen. |
| Keywords: | Regional start-up activities,Covid19 pandemic,Germany,Regionales Gründungsgeschehen,Covid19-Pandemie,Deutschland |
| JEL: | L26 R11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmduf:29&r= |