nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒08‒08
eleven papers chosen by
Marcus Dejardin
Université de Namur

  1. Individual exposure to armed conflict and entrepreneurship By Arzu Kibris; Phillip Nelson
  2. Gender gaps in frontier entrepreneurship? Evidence from 1901 Oklahoma land lottery winners By Jason Poulos
  3. Creative-entrepreneurs and new venture performance a study of the creative class at the firm-level. By Marcos Segantini; Lori A. Dickes
  4. Recurrent funding in entrepreneurship: an analysis of repeated events. By Marcos Segantini; Lori A. Dickes
  5. Entrepreneurs or Employees: What Chinese Citizens Encouraged to Become by Social Attitudes? By Xu, Tao; Zhu, Weiwei
  6. Unpacking the process of overseas knowledge recontextualisation in returnee entrepreneurship - a learning perspective : a study of returnee entrepreneurs in Vietnam By Mai, Nhat Chi
  8. Informal versus Formal: Microfirms' Productivity Gaps By Gutiérrez, L. H.; Rodríguez- Lesmes, P.
  9. IFAD Research Series Issue 76: Upscaling of traditional fermented foods to build value chains and to promote women entrepreneurship By Materia, Valentina C.; Linnemann, Anita R.; Smid, Eddy J.; Schoustra, Sijmen E.
  10. Unternehmertum, Netzwerke und Innovationen in ländlichen Räumen: Ergebnisse der Begleitforschung zum Modellvorhaben Land(auf)Schwung im Handlungsfeld „Regionale Wertschöpfung“ : Band 2 der Begleitforschung Land(auf)Schwung By Tuitjer, Gesine; Bergholz, Christian; Küpper, Patrick
  11. La transmisión intergeneracional en el autoempleo: El efecto de la situación financiera familiar By Gutiérrez, Antonio; Velilla, Jorge

  1. By: Arzu Kibris (University of Warwick); Phillip Nelson (University of Warwick)
    Abstract: We study the individual level impacts of exposure to armed conflict on entrepreneurial activity. We introduce new data from a large-N field survey we conducted in Turkey in 2019. Our study is built on a natural experiment setting that allows us to identify random exposure to armed conflict, to establish a clear timeline, to isolate the individual effects from any conflict induced deterioration in the economic environment, and to demonstrate the causal impact of armed conflict exposure. We show that while exposure to the conflict environment reduces the likelihood of private economic activity, those individuals who directly experience traumatizing violent events in that environment become significantly and substantially more likely to setup their own business. However, results also indicate that, while they are more likely to venture into private economic activity, these individuals are also more likely to fail in those ventures. Our analyses indicate exposure-induced changes in outlook on life as a potential mechanism behind these causal associations.
    Date: 2022–02
  2. By: Jason Poulos
    Abstract: The paper investigates gender differences in entrepreneurship by exploiting a large-scale land lottery in Oklahoma at the turn of the 20$^{\text{th}}$ century. Lottery winners claimed land in the order in which their names were drawn, so the draw number is an approximate rank ordering of lottery wealth. This mechanism allows for the estimation of a dose-response function that relates each draw number to the expected outcome under each draw. I estimate dose-response functions on a linked dataset of lottery winners and land patent records, and find the probability of purchasing land from the government to be decreasing as a function of lottery wealth, which is evidence for the presence of liquidity constraints. I find female winners were more effective in leveraging lottery wealth to purchase additional land, as evidenced by significantly higher median dose-responses compared to those of male winners. For a sample of winners linked to the 1910 Census, I find that male winners have higher median dose-responses compared to female winners in terms of farm or home ownership. These results suggest that liquidity constraints may have been more binding for women entrepreneurs in the market economy.
    Date: 2022–06
  3. By: Marcos Segantini (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía); Lori A. Dickes (Clemson University)
    Abstract: Human capital has been a central topic since the beginning of entrepreneurship as a field of academic research. This paper analyzes the association of the human capital level of entrepreneurial teams on the performance of nascent projects by applying a relatively new theory of human capital. The creative class theory, widely used in the research of entrepreneurship at the regional level, is applied here for its first time at the firm level. This article's findings indicate similar results at the firm level to those found at the regional level. More creative-entrepreneur-owned startups are strongly associated with job creation, and to less extent, with projects' survival. As in regional studies, the results of this research also question the classic measures of human capital focused on entrepreneurs' formal education, but now at the firm level.
    Keywords: entrepreneurship, human capital, creative class.
    Date: 2020–12
  4. By: Marcos Segantini (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía); Lori A. Dickes (Clemson University)
    Abstract: There is extensive evidence of differential factors in accessing external capital for entrepreneurs. The effects of receiving monitored external funds on the survival probability of entrepreneurial projects have also been well-described by specialized literature. However, it has not yet been analyzed how entrepreneurs acquire different kinds of funds at different stages during the entrepreneurial process and their relationships with entrepreneurship success. This paper aims to fill these gaps by analyzing the relationship between a broad set of entrepreneurial tangible and intangible assets and their impact on receiving external funding several times during new ventures' gestation. Receiving external funding is a critical factor for entrepreneurial success. This article extends from the Matthew effect theory, explaining how initial advantages lead to further cumulative advantages in external funding access.
    Keywords: entrepreuneurship, external funding, event history.
    Date: 2020–12
  5. By: Xu, Tao; Zhu, Weiwei
    Abstract: The traditional way of the "troika" cannot support sustainable development for China, and future economic growth should be pushed by entrepreneurship, which can be the key to innovation. The paper analyses the importance and necessity of entrepreneurship in the context of China and its current situation systematically, and methodically studies whether it is entrepreneurs or employees that social attitudes encourage citizens to become. Using Chinese General Social Survey data, the paper explores the essentiality of social attitudes from three perspectives: social equity, social happiness and social trust that can reflect the social atmosphere, and examines the influential factors in terms of personal characteristics through an empirical approach. The paper finds that citizens' feelings and perceptions of social equity and social happiness have a significant positive impact on encouraging them to be entrepreneurs, with positive factors such as income, social security and children, and negative factors such as education, political identity and hukou. The effect can be more significant for urban citizens than rural ones; men and women are affected differently by the same factors in their choice to become employees or entrepreneurs.
    Keywords: Entrepreneurship; Social Attitude; Equity; Happiness; Social Atmosphere; Chinese General Social Survey
    JEL: J1 J12 J13 J16 M1 M13 M14 M2 O1 O3 O4
    Date: 2022–06–20
  6. By: Mai, Nhat Chi
    Abstract: International entrepreneurship research has recently been directed towards returnee entrepreneurship, a phenomenon in which individuals who acquire knowledge in overseas developed markets return to start businesses in their home emerging markets. Returnee entrepreneurs serve as knowledge brokers in their home country. However, research has yet to explain how they transform their overseas knowledge, which is contextually bound, into entrepreneurial outcomes – a process termed overseas knowledge recontextualisation. The thesis positions itself at the intersection of returnee entrepreneurship, international knowledge transfer, and entrepreneurial learning, and explores the phenomenon from both a learning and a socio-cognitive perspective. It approaches the recontextualisation process at an individual entrepreneurial level to answer three research questions: (1) What constitutes the knowledge brought back by returnee entrepreneurs?; (2) What is the process by which returnee entrepreneurs recontextualise their overseas knowledge?; and (3) How do returnee entrepreneurs learn to facilitate the process of overseas knowledge recontexualisation? A qualitative exploratory approach was employed comprising 14 in-depth cases of returnee entrepreneurs in three cities in Vietnam - an emerging economy in South East Asia where returnee entrepreneurship has become increasingly prevalent. To ensure the rigour and validity of the research, multiple data sources were used for triangulation. Given the dynamics of the recontextualisation process and the aim to build a data driven theory, the analysis was underpinned by process thinking and grounded theory principles. The thesis contributes to three distinctive strands of literature. First, it extends the returnee entrepreneurship literature by unpacking the holistic process model of knowledge recontextualisation which involves sensemaking, experimenting, and integrating knowledge, each of which is facilitated by the respective learning mechanisms and intertwined with entrepreneurial outcomes. Second, it adds new understanding at an individual entrepreneurial level to international knowledge transfer literature by highlighting the idiosyncratic role of returnees as simultaneous transferors and receivers of knowledge. Specifically, it elucidates mixed-embedded knowledge structures of returnees and identifies key recontextualisation practices pertaining to returnee entrepreneurship. Third, it adds on entrepreneurial learning literature by unpacking the complex learning mechanisms that facilitate the process of recontextualisation. Finally, it proposes that, throughout the recontextualisation process, returnees not only enact the overseas knowledge per se, they also transform themselves and influence the home country through cognitive, social, psychological and behavioural processes which denote the micro-foundations of the entrepreneurial dynamic capability displayed by returnees.
    Date: 2020–07–06
  7. By: Eunice Cascant (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon, UJML - Université Jean Moulin - Lyon 3 - Université de Lyon)
    Abstract: This paper aims to highlight how harnessing female refugee activities through social entrepreneurship is beneficial not only to the host country's economy but also a driver of refugee integration in host communities (Akter, Rahman, & Radicic, 2019).This paper bridges the conceptual and contextual gap in female refugee social entrepreneurship literature (Czinkota et al., 2021; Elo et al. 2018; Sinkovic & Reuber, 2021; Zucchella, 2021).In addition to the scarcity of research on the relevance of gender in the social entrepreneurship field despite claims that social enterprises can effectively contribute to addressing gender-related issues such as women empowerment in the society also in the case of female refugees as it reduces precariousness as they discover social venture opportunities.
    Abstract: Cet article vise à souligner comment l'exploitation des activités des femmes réfugiées par l'entrepreneuriat social est bénéfique non seulement pour l'économie du pays d'accueil, mais aussi un moteur de l'intégration des réfugiés dans les communautés d'accueil (Akter, Rahman, & Radicic, 2019).Cet article comble le fossé conceptuel et contextuel dans la littérature sur l'entrepreneuriat social des femmes réfugiées (Czinkota et al., 2021; Elo et al. 2018; Sinkovic & Reuber, 2021; Zucchella, 2021). En plus de la rareté des recherches sur la pertinence du genre dans le domaine de l'entrepreneuriat social, malgré les affirmations selon lesquelles les entreprises sociales peuvent contribuer efficacement à la résolution des problèmes liés au genre tels que l'autonomisation des femmes dans la société, y compris dans le cas des femmes réfugiées, car elles réduisent la précarité et peuvent découvrir des opportunités d'entreprises sociales.
    Date: 2022–03–09
  8. By: Gutiérrez, L. H.; Rodríguez- Lesmes, P.
    Abstract: Although evidence of a productivity gap between formal and informal firms is observed, this 'formality premium' is less explored for microfirms. The informality of microfirms is a central concern in low- and middle-income countries, and a crucial demand is noted for designing policies addressing this issue because they are the bulk of the economic tissue. We fill this void by estimating a productivity premium for the case of Colombia, considering two margins of informality: extensive, referring to business registration, and the intensive, which includes as well labor regulations. We use a unique longitudinal dataset from the Microenterprise Survey by the Colombian Statistics Department, which follows approximately 39,000 micro-establishments with up to 9 employees during 2012–2016. We utilize the transition into and out of formality to estimate the productivity premium (yearly sales per worker) between informal and formal firms, thereby exploring differences concerning initial productivity. We use a fixed-effects quantile regression to explore differential effects along the productivity distribution. We find evidence of a premium for both the extensive (20%) and intensive margins (6%), a gap that is decreasing along with the firm's productivity. The evidence of these premiums is related to two growth strategies of firms: an increase in capital investments for the extensive margin and an increase in human capital quality for the intensive margin. Further, we find the premium is notoriously wider for young firms (less than three years in the business) with a steeper gradient. We do not find systematic differences across sectors, gender of the owners, and motivation. These results are new evidence that supports the existence of a premium and the transition into and out of formality of microfirms in middleincome countries. Moreover, they suggest that microfirms' formalization and growth policies should be oriented toward promoting and enhancing formality's benefits.
    Keywords: Microfirms, firm informality, productivity premium, Colombia
    Date: 2022–07–05
  9. By: Materia, Valentina C.; Linnemann, Anita R.; Smid, Eddy J.; Schoustra, Sijmen E.
    Abstract: Fermentation is an ancient processing technique that relies on microbes to transform raw materials into products with increased food safety, commercial value, nutritional value, health features, and sensory attributes. Despite its benefits, fermentation remains a neglected practice in many countries. In Africa, the agrifood sector has great potential for entrepreneurship, job creation, innovation, and and economic and social empowerment of women and youth. Yet many local, traditional, and nutritious foods—including fermented foods—have not reached the broad range of potential consumers due to small-scale processing and a lack of effective value chains. Small-scale fermentation activities represent an important economic opportunity, particularly for women. This paper explores how traditional processing of fermented foods can be scaled up while enhancing functional food properties and strengthening local value chains.
    Keywords: Agricultural and Food Policy, Food Security and Poverty
    Date: 2022–05–01
  10. By: Tuitjer, Gesine; Bergholz, Christian; Küpper, Patrick
    Abstract: The pilot scheme ‚Land(auf)Schwung‘, funded by the German Federal Ministry of Food and Agricul- ture, was designed to test new approaches in the development of rural areas. 13 peripheral rural counties received between 2.25 and 2.9 million euros each in total funding between the years 2015 ii Kurzfassung und Abstract and 2019, to develop new approaches in the provision of basic services and to foster regional growth and net value creation. Deprived rural areas often face a rather low innovation potential due to a lack of knowledge infra- structure, a composition of the local economy characterized by low-tech branches, few start-ups and an overall dominance of small businesses. The regional economy in rural areas does not offer many jobs for a high-skilled workforce and low levels of productivity prevent competitive salaries for skilled labour. Against this background, the thirteen regions of this pilot scheme experimented with new ap- proaches to strengthen the regional economy. For example, small businesses from the food sector received investment funding to develop new and innovative products, to develop regional market- ing initiatives and networks and to increase the sale of regional products. Likewise, in some regions centres for technology and entrepreneurship were installed. Based on the vast landscape of funded projects in the 13 regions, this research project draws conclusions and recommendations for the development of rural areas. For example, case-studies were conducted analysing the biographical development of innovative products in small food businesses. The development of two technology centres was likewise analysed. In total, 83 interviews were conducted with various stakeholders and agents in rural development, and a survey conducted with 166 members in regional marketing initiatives (micro businesses). The research depicts the vivid innovation activities of the micro and small businesses under focus. By funding specialized machinery, which is adapted to match the needs of small and micro businesses with a niche strategy, the growth of these businesses can be supported. Regional marketing initiatives initiate local cooperation and knowledge sharing be- tween their members and can this way boost innovation in small businesses, which eventually leads to business growth. However, because local marketing initiatives come with comparable overhead for a shared logistic, the regional conditions for an efficient running of a shared logistics unit should be evaluated first. While technology centres can lower the entrance barriers to self-employment, they should always be integrated into a comprehensive regional strategy of economic develop- ment, to unlock their full potential.
    Keywords: Community/Rural/Urban Development, Financial Economics, Labor and Human Capital, Marketing, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–07–12
  11. By: Gutiérrez, Antonio; Velilla, Jorge
    Abstract: Existing research has concentrated on the determinants of entrepreneurship and the behaviours that give rise to it. There is a great deal of evidence, which points to intergenerational transmission as one of the fundamental reasons behind the decision of becoming an entrepreneur. However, there is no consensus on the channels of transmission. This Master Thesis empirically analyses the effect of the family financial situation on the intergenerational transmission of self-employment. Using data from the 2019 European Union Statistics on Income and Living Conditions (EU-SILC) we report on the existence of a statistically significant intergenerational correlation of self-employment. In this sense, the results show the relevance of family financial resources on the intergenerational correlations of self-employment.
    Keywords: Self-employment, Intergenerational transmission, Financial status, EU-SILC data, Europe
    JEL: J23 J62 O52
    Date: 2022–06

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