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on Entrepreneurship |
| By: | Erik Stam |
| Abstract: | In this paper we show that a culture of independent entrepreneurship and a culture of ambitious entrepreneurship are two distinct dimensions of culture in entrepreneurial ecosystems, and are differently related to Venture Capital, growth-oriented entrepreneurship and the prevalence of unicorns in a country. We map the different types of entrepreneurship around the globe, and show the extreme spatial unevenness of entrepreneurial outputs of entrepreneurial ecosystems. We analyze the unicorn production chain from Total Entrepreneurial Activity, to growth-oriented entrepreneurship, and unicorns, and how this connects to culture and capital. |
| Keywords: | entrepreneurial ecosystem, entrepreneurship, growth-oriented entrepreneurship, scale-ups, unicorns, venture capital, culture, ambition |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2112&r= |
| By: | Pouliakas, Konstantinos (European Centre for the Development of Vocational Training (Cedefop)); Ranieri, Antonio (European Centre for the Development of Vocational Training (Cedefop)) |
| Abstract: | The increasing use of online labour platforms as intermediaries for finding work – known as crowdwork or gig work – is a new form of 'hybrid' (solo)self-employment that hinges on the borders of dependent and self-employment. In this study we use a novel international dataset of online platform workers, the Cedefop Crowdlearn dataset, to analyse if engagement in hybrid digital self-employment could augment individuals' skills and hence potentially act as a stepping stone towards fuller entrepreneurship. We also examine if a digital proto-entrepreneurial experience is sustainable over time by analysing crowdworkers' satisfaction from their work. The paper's findings provide some support to the hypothesis that hybrid work experiences, especially when platform work is carried out alongside another dependent job, can facilitate additional and varied skill development done via one's secondary platform activity and potentially spur fuller entrepreneurial commitment. However, such skill formation dividends are deficient for part-time hybrids who are mostly driven towards solo self-employment out of necessity, making their journey from proto- to full entrepreneurship less feasible. Our paper provides additional evidence to the marked diversity and hybridity of different forms of (solo)self-employment in modern labour markets. |
| Keywords: | hybrid self-employment, platform/gig economy, crowdworkers, skills, learning, entrepreneurship, digitalisation |
| JEL: | J22 J24 J62 J28 L26 J49 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15344&r= |
| By: | Bernardo Melo Pimentel (Forward College); Guillermo Hunter (ESCP Europe - Ecole Supérieure de Commerce de Paris) |
| Abstract: | We review the state of current industrial champions debate and make the case for small, nimble Davids, rather than resource-hungry Goliaths. These export-based SMEs have shown robust performance in recent years and may help economies increase their resilience in times of significant instability. They are more autonomous than traditional champions and they are already in our midst. The challenge for policy makers is how to foster an environment that supports Davids while keeping an eye on national strategic interests. |
| Date: | 2022–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03685959&r= |
| By: | Natee Amornsiripanitch; Paul Gompers; George Hu; Will Levinson; Vladimir Mukharlyamov |
| Abstract: | This paper proposes a non-pecuniary measure of career achievement, Seniority. Based on a database of over 5 million resumes, this metric exploits the variation in job titles and how long they take to attain. When non-monetary factors influence career choice, inference benefits from the use of non-wage measures, such as seniority. We apply it to study labor market outcomes of VC-backed entrepreneurs. Would-be founders experience accelerated career trajectories prior to founding, significantly outperforming graduates of same-tier colleges with similar first jobs. After exiting their start-ups, they obtain jobs about three years more senior than their right-before-founding peers. Even failed founders land jobs with higher seniority than those attained by their peers in the meantime. |
| JEL: | J0 J3 J30 J31 J44 J6 J63 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30179&r= |
| By: | Bahaj, Saleem (Bank of England); Piton, Sophie (Bank of England); Savagar, Anthony (University of Kent and Centre for Macroeconomics) |
| Abstract: | We use data on business registrations in the UK to study the response of firm entry to the Covid-19 pandemic. We find that firm entry increased during the pandemic, unlike typical recessions where firm entry declines. The rise in firm creation is driven by individual entrepreneurs creating companies for the first time, and particularly creating companies in online retail. We link the rise in firm creation to declines in brick-and-mortar retail footfall via Google mobility data, and show that it takes 10 weeks for a firm to be registered after a shock to footfall. To study the impacts of the newly created firms, we merge entry data with online job postings from Indeed and show that the rise in firm creation drives increased vacancy postings. However, we also show there is a higher probability of pandemic startups dissolving relative to pre-pandemic cohorts. Therefore, we conclude that booming firm creation aided the rapid recovery of the UK economy in the short run, but the long-run implications are more uncertain. |
| Keywords: | Firm dynamics; Covid-19; business dynamism; firm entry. |
| JEL: | E32 L25 L26 |
| Date: | 2022–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:0981&r= |
| By: | Peichang Zhang |
| Abstract: | This paper presents an endogenous growth model in which R&D improves product quality and venture capital supports these qualityenhancing activities both financially and nonfinancially. In the model, the venture capitalists' skill in evaluating entrepreneurs' innovative abilities plays a key role in achieving innovation and economic growth. When their skill is suciently low, neither innovation nor economic growth occurs even if entrepreneurs are abundant in the economy. Moreover, insucient market size discourages entrepreneurs from engaging in R&D activities. Therefore, competent venture capitalists and a suciently large market are indispensable to the economy's long-run growth. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tupdaa:19&r= |
| By: | Butzin, Anna; Flögel, Franz |
| Abstract: | The attention to "left behind" places triggered a debate about alternative development approaches. Unlike prosperous regions and their prioritisation on high-tech sectors, strategies for left behind places should shift to the foundational economy, community-based social innovation and well-being. While supporting this emphasis, we see a tendency to neglect importance of research and teaching in high-tech areas for developing left behind places. Our case study in the old industrial region Ruhr shows, how unrelated initial funding for cutting-edge research sparked the development of today's cybersecurity ecosystem. The ecosystem contributes to a positive identification within the region and a dynamic start-up landscape. |
| Keywords: | left behind places,entrepreneurial ecosystem,cybersecurity,hightech sectors,regional development |
| JEL: | O31 O32 O18 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iatdps:2204&r= |
| By: | Eduard Baumohl (University of Economics in Bratislava & Faculty of Economics, Technical University of Kosice, Slovakia); Evzen Kocenda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & CESifo, Munich; IOS, Regensburg) |
| Abstract: | We survey the empirical evidence on corporate survival and its determinants in European emerging markets. We demonstrate that (i) institutional quality is a significant preventive factor for firm survival in all sectors of the economy, which holds for small, medium and large firms alike. On the other hand, (ii) the impact of financial performance indicators is lower than one would expect. However, (iii) other firm-level variables play more important roles in firm survival, and the most important preventive factors are the legal form of a limited liability company, the number of large shareholders, and the presence of a foreign owner. |
| Keywords: | firm survival, institutions, financial development, European emerging markets, survival and exit determinants, hazards model |
| JEL: | D22 G01 G33 G34 P34 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2022_16&r= |
| By: | Mai, Nhat Chi |
| Abstract: | Vietnam is well known as a country in successful transition to a market economy with a high concentration of Small and Medium sized Enterprises (SMEs). SMEs contributed significantly to overcoming the “shocks” associated with the transition from a centrally planned to a market-oriented economy with the collapse of the socialist bloc in Eastern Europe. Although they are major contributors to Vietnamese socio-economic success, SMEs in Vietnam have to deal with many difficulties in their survival and development. To solve these problems, SMEs need to understand how their business is operating, identify where improvements should be made, and have a clear strategic planning process. Applying a performance measurement system provides SMEs with a more complete view of an organization through the different measures and perspectives that link together and enable the development of a dynamic system that monitors both internal and external contexts and supports the organization’s objectives. The Balanced Scorecard introduced by Kaplan and Norton in 1992 is a relevant tool that provides SMEs with a framework for dealing with today’s business environment. There have been extensive calls for research into the use of the Balanced Scorecard by SMEs in different national contexts. |
| Date: | 2021–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:5hx2r&r= |
| By: | Jorge Pozo (Central Reserve Bank of Peru) |
| Abstract: | In this work, we aim to study the implications of the interest rate cap in an emerging economy. To do so we develop a two-period banking model with entrepreneurs that undertake risky projects and with formal and informal lenders. Entrepreneurs are heterogeneous in their level of net worth. We find that a cap on the lending interest rate excludes entrepreneurs with a low level of net worth, which in turn increases the participation of the informal credit market, but also might reduce bank markups increasing entrepreneurs' welfare. As a result, our model implies that the lower the market power of banks, the smaller the likelihood that the cap might have some positive impact on aggregate credit and investment. |
| Keywords: | Interest rate cap; Informal credit market; monopoly banks |
| JEL: | E5 G21 G23 |
| Date: | 2022–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heidwp16-2022&r= |
| By: | Jana Hamdan; Yuanwei Xu |
| Abstract: | We examine the medium-term impact of COVID-19 for financial well-being and technology adoption in a low-income country. The analysis is based on regionally representative panel data consisting of 1,975 micro-entrepreneurs from rural Uganda. Using a LASSO approach, we first show that several business characteristics predict longer business shutdown due to COVID-19, including running a service business. We also find several respondent characteristics correlate with non-compliance to the lockdown, the strongest predictors being independence of mobility restrictions, financial pressure and extreme remoteness. Second, comparing pre- and post-lockdown levels, we document a sharp increase in the use of financial services. Moreover, we find a substantial drop in business investments and profits. Third, we adopt an instrumental variable approach to analyze the causal impact of the COVID-19 business shutdown. We find that businesses which closed longer are more likely to adopt mobile money services and better business practices. |
| Keywords: | COVID-19, Lockdown, Micro-enterprises, Mobile Money, Coping Strategies, Uganda |
| JEL: | I18 I31 O12 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2007&r= |
| By: | Conner Mullally; Sarah Janzen; Nicholas Magnan; Shruti Sharma; Bhola Shrestha |
| Abstract: | Gender norms may constrain the ability of women to develop their entrepreneurial skills, particularly in rural areas. By bringing entrepreneurial training to women rather than requiring extended time away from home, mobile technology could open doors that would otherwise be closed. We randomly selected Nepali women to be trained as veterinary service providers known as community animal health workers. Half of the selected candidates were randomly assigned to a traditional training course requiring 35 consecutive days away from home, and half were assigned to a hybrid distance learning course requiring two shorter stays plus a table-based curriculum to be completed at home. Distance learning strongly increases women's ability to complete training as compared to traditional training. Distance learning has a larger effect than traditional training on boosting the number of livestock responsibilities women carry out at home, while also raising aspirations. Both training types increase women's control over income. Our results indicate that if anything, distance learning produced more effective community animal health workers. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.03919&r= |