nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒08‒29
sixteen papers chosen by
Marcus Dejardin
Université de Namur

  1. Personality and Entrepreneurship By Kritikos, Alexander
  2. Reassessing women’s participation in entrepreneurial activities in the nineteenth century: A review of the literature. By Sonia Baijot; Charlotte Le Chapelain
  3. The Effects of Immigration on Entrepreneurship and Innovation By Krol, Robert
  4. Small Firm Growth and the VAT Threshold : Evidence for the UK By Liu, Li; Lockwood, Ben; Tam. Eddy
  5. Were Small Businesses More Likely to Permanently Close in the Pandemic? By Robert W. Fairlie; Frank M. Fossen; Reid L. Johnsen; Gentian Droboniku
  6. Work from Home Arrangements and Organizational Performance in Italian SMEs :Evidence from the COVID-19 Pandemic By Laura Abrardi; Elena Grinza; Allessandro Manello; Flavio Porta
  7. From Education to Exploitation – New Insights to promote successful Entrepreneurial Activities By Dilmetz, Daniel
  8. Effects of Short-time Work Schemes on firm survival during the Covid-19 crisis: insights from new Spanish data By Garcia-Clemente, Javier; Congregado, Emilio
  9. Russian small and medium-sized businesses during coronavirus crisis By Barinova Vera; Zemtsov Tsepan; Tsareva Yulia
  10. The Paycheck Protection Program & Small Business Performance: Evidence from Craft Breweries By Staples, Aaron J.; Krumel, Thomas P. Jr.
  11. Economic Opportunities in Food Entrepreneurship: Survey of Food Businesses Operating in Shared-Use Commercial Kitchens By Edmondson, Hailey; McFadden, Dawn D. Thilmany
  12. Value creation, appropriation and destruction in coopetitive relationships among micro-firms By Anne Albert-Cromarias; Alexandre Asselineau; Grégory Blanchard
  13. A Synthetic Indicator of the Quality of Support for Businesses in Burkina-Faso, Cameroon, and Ghana By Jean C. Kouam; Simplice A. Asongu; Bin J. Meh; Robert Nantchouang; Fri L. Asanga; Denis Foretia
  14. De la validation du business model au patrimoine de création : le scale-up vu par la conception. Cas d'une startup à la frontière avec la deeptech By Louise Taupin; Raphaëlle Barbier; Pascal Le Masson; Ellyn Redheuil; Blanche Segrestin; Chipten Valibhay
  15. Die Leistungsfähigkeit agiler KMU auf dem Prüfstand der Ungewissheit: Sondierungsstudie in einem Dienstleistungs-KMU By Hubert Elisé Fotso
  16. Building a Support Model for Design Management for SMEs (Japanese) By NISHIGAKI Atsuko; NUMAMOTO Kazuki; HARADA Takashi; HIRAYAMA Yuka; WASHIDA Yuichi; HIGO Ai

  1. By: Kritikos, Alexander
    Abstract: Does personality matter? Is an individual who is open to experience more or less likely to become an entrepreneur? Is it better to score low or high in agreeableness for surviving as an entrepreneur? To the extent that personality captures one part of entrepreneurial abilities, which are usually unobservable, the analysis of traits and personality characteristics helps better understanding such abilities. This article reviews research on the relationship between personality and entrepreneurship since 2000 and shows that possessing certain personality characteristics will make it more likely that an individual will start an own business and hire staff. More specifically, with respect to the entry decision, research finds that nearly all so-called Big Five factors as well as several specific personality characteristics influence the entry probability into entrepreneurship. Further, entrepreneurs are more likely to hire, the higher they score in risk tolerance, trust, openness to experience, and conscientiousness. However, different factors such as low scores in agreeableness, the only Big Factor that does not affect entrepreneurial entry, influence entrepreneurial survival. And for some of characteristics that influence entrepreneurial entry, like high scores in the factor openness for experience or in risk tolerance, "revolving door effects" are found, explaining why some entrepreneurs subsequently exit again the market.
    Keywords: entrepreneurship,personality
    JEL: L26
    Date: 2022
  2. By: Sonia Baijot; Charlotte Le Chapelain
    Abstract: This article reviews recent literature on women entrepreneurship in the nineteenth century. We first examine the reasons why female entrepreneurship in the process of industrialization has so long remained ignored or considered at best a very marginal phenomenon. Second, this paper reviews the methods used in the recent revisionist literature in order to identify women entrepreneurs in the historical records and to assess the importance of their participation in entrepreneurial activities.
    Keywords: Women entrepreneurship, industrialization, nineteenth century.
    JEL: N13 N83
    Date: 2022
  3. By: Krol, Robert (Mercury Publication)
    Abstract: Abstract not available.
    Date: 2021–05–25
  4. By: Liu, Li (International Monetary Fund); Lockwood, Ben (University of Warwick); Tam. Eddy (King's College london)
    Abstract: This paper studies the effect of the VAT threshold on firm growth in the UK, using exogenous variation over time in the threshold, combined with turnover bin fixed effects, for identification. We find robust evidence that annual growth in turnover slows by about 1 percentage point when firm turnover gets close to the threshold, and weaker evidence of higher growth when the threshold is passed. Growth in firm costs shows a similar pattern, indicating that the response to the threshold is likely to be a real response rather than an evasion response. Firms that habitually register even when their turnover is below the VAT threshold (voluntary registered firms) have growth that is unaffected by the threshold, whereas firms that select into the Flat-Rate Scheme have a less pronounced slowdown response than other firms. Similar patterns of turnover and cost growth around the threshold are also observed for non-incorporated businesses. Finally, simulation results clarify the relative contribution of "noncrossers" ( firms who eventually register for VAT) and "non-crossers" (those who permanently stay below the threshold) in explaining our empirical findings. JEL Classification: H22 ; H25 ; H26
    Keywords: VAT ; size-based threshold ; firm growth
    Date: 2022
  5. By: Robert W. Fairlie; Frank M. Fossen; Reid L. Johnsen; Gentian Droboniku
    Abstract: Previous estimates indicate that COVID-19 led to a large drop in the number of operating businesses operating early in the pandemic, but surprisingly little is known on whether these shutdowns turned into permanent closures and whether small businesses were disproportionately hit. This paper provides the first analysis of permanent business closures using confidential administrative firm-level panel data covering the universe of businesses filing sales taxes from the California Department of Tax and Fee Administration. We find large increases in closures rates in the first two quarters of 2020, but a strong reversal of this trend in the third quarter of 2020. The increase in closures rates in the first two quarters of the pandemic was substantially larger for small businesses than large businesses, but the rebound in the third quarter was also larger. The disproportionate closing of small businesses led to a sharp concentration of market share among larger businesses as indicated by the Herfindahl-Hirschman Index with only a partial reversal after the initial increase. The findings highlight the fragility of small businesses during a large adverse shock and the consequences for the competitiveness of markets.
    JEL: H25 I18 L26
    Date: 2022–07
  6. By: Laura Abrardi; Elena Grinza; Allessandro Manello; Flavio Porta
    Abstract: We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers’ concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers’ concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH.
    Keywords: Work from home (WFH); teleworking; agile working; smart working; organizational performance; labor productivity; management by objectives (MBO); COVID-19; small- and medium-sized enterprises (SMEs); survey data
    JEL: D23 D24 M54
    Date: 2022–08–05
  7. By: Dilmetz, Daniel
    Abstract: This dissertation aims to answer current research questions related to entrepreneurship. Since the works of Joseph Schumpeter (1883 - 1950), who attributed the development of capitalism to entrepreneurship, it has been one of the most important factors influencing technological progress and the growth of economic structures. The motives of a person to become an entrepreneur are complex. While some founders actively pursue the goal of realizing themselves and being able to act autonomously, others discover an opportunity and develop an entrepreneurial initiative from this discovery, which ultimately results in their entrepreneurial action. Also, the change of circumstances, the environment, or other regularities can an individual to recognize an entrepreneurial opportunity. Ourselves have been experiencing such a change since the year 2020 when the Covid-19 pandemic changed our lives to an extent unimagined at that time. As a result, new problems of everyday life also arose, which were not infrequently addressed by innovations from start-up companies to ensure the safety of society in these times and still allow normal life to continue. Two years later, taking advantage of the technologies that have emerged, we have adapted. We now carry our vaccination records digitally at all times, use apps on our smartphones to track our whereabouts, and traditional meetings in our workday are replaced by digital meetings using apps like Zoom or Teams. Society is evolving and using the products and services of innovative young companies to counter the ”new now” and move on with life. In line with the high relevance of entrepreneurship for economic and social development and the advance of technological progress, research in this field has also expanded rapidly in recent decades, encompassing a considerable number of sub-fields. However, two questions, in particular, preoccupy this field of research: The origin of entrepreneurs and how they differ from other individuals, and the question of how entrepreneurs can exercise sustainable successful entrepreneurship. Concerning the origin of the entrepreneur, the question of whether founders are born or if the skills needed for successful entrepreneurship can be learned has prevailed almost since the beginning of research in the field of entrepreneurship. In the context of this question, educational institutions such as universities are the focus of research endeavors. Concerning the sustainable success of an enterprise, the acquisition of the necessary resources is crucial. In particular, securing financial resources is the most important challenge for the entrepreneur. From these two points of view, two of the largest scopes of research in the field of entrepreneurship have developed over the past decades: entrepreneurial education and entrepreneurial finance. This dissertation consists of a total of three studies that provide new insights in both areas and thus make a significant contribution to current entrepreneurial research. The first study focuses on the field of entrepreneurial education and investigates how the university ecosystem can influence students' innovation skills. Based on a survey of over 300 students before and after their first year within the university, we demonstrate in this study that individual elements of the university ecosystem can indeed have a positive impact on students' entrepreneurial development. Thus, this study also indicates through empirical findings that individuals can indeed learn the skills for successful entrepreneurial actions, thereby underscoring universities' role and relevance in this endeavor. The second and third studies deal respectively with the field of entrepreneurial financing, referring to a still rather young phenomenon in this field: crowdfunding as an alternative to traditional financing options such as venture capital financing. The second study examines how the use of words associated with creativity in the presentation of a crowdfunding campaign can affect its likelihood of success. This study is based on a dataset of more than 39,000 crowdfunding projects conducted between 2009 and 2019. The results of the study indicate that the use of words associated with creativity, when used to describe the campaign, has significant potential to in-crease the campaign's likelihood of success. This study thus makes a further contribution in terms of identifying signals for reducing information asymmetries between founders and investors. The third study then examines how project initiators can and should inform their supporters about the current status of the campaign. Using a dataset of 909 crowdfunding projects, this study investigates which topics have a particularly high potential to convince potential supporters of the quality of the project and, as a result, to make a financial contribution to the project through this information tool ("updates"). Each study discussed in this dissertation will be conducted with the help of empirical methods. The empirical methodology is explained in detail in each underlying chapter. Likewise, each underlying chapter of a study first deals with an overview of the current state of research and the derivation of the hypotheses related to the respective study. Subsequently, the empirical results of each study are presented and dis-cussed in detail. The final section of this dissertation summarizes the theoretical and practical contribution of the results obtained.
    Date: 2022
  8. By: Garcia-Clemente, Javier; Congregado, Emilio
    Abstract: This paper analyses the aggregated survival rates of more than a million employers followed quarterly from April 1st, 2020 to April 1st, 2021, using the Company Demographic Profile database, a new experimental statistic provided by the Spanish National Statistics Institute. Our approach makes use of fractional regression methods to explain the survival rate by region, sector, size and whether or not a Temporary Workforce Reduction Scheme (also Short-Time Work Scheme) had been used within the firm. These public schemes, known as ERTEs in Spain, were widely used during the pandemic and temporarily subsidised employee ́s wages, relieving labour adjustment costs to the employers. Our main results, based on the omputed average marginal effects, show that the survival rate was significantly higher for those firms which take up ERTE programs among their employees. Nevertheless, this effect was not homogeneous, particularly benefiting the most vulnerable firms. These firms were, as expected, the smallest –from 1 to 5 employees– and the ones which operate in some service sectors as leisure, education, tourism and hospitality.
    Keywords: Firm survival, Covid19, ERTE, STW, business closings.
    JEL: E65 J08 J38 J65 L10
    Date: 2022–07–26
  9. By: Barinova Vera (Gaidar Institute for Economic Policy); Zemtsov Tsepan (Gaidar Institute for Economic Policy); Tsareva Yulia (RANEPA)
    Abstract: Recently, the Russian government’s policy aimed at developing the small and medium-sized enterprise (SME) sector has included: the implementation of a reform of control and oversight activities; simplification of registration procedures for legal entities and individual entrepreneurs; digitalization of tax authorities; introduction of a tax maneuver for IT companies; expansion of support infrastructure facilities, etc. However, the contribution of SMEs to the economy remains modest compared to developed countries, and the sector’s performance deteriorated over the past two years. In 2021, the pandemic-induced harsh conditions for small businesses were: decreasing income, anti-epidemiological measures (lockdown in November, introduction of QR codes, masking regime, etc.). A considerable part of Russian small business belongs to the spheres that were among the most affected ones: retail trade in non-food products, provision of household services, and public catering. The coronavirus-induced crisis is unique in the scale of the imposed restrictions, due to the high contagiousness of the new infection and its duration. The situation is accentuated by the recurrence of morbidity waves, the emergence of new strains of the virus, and, consequently, the uncertainty of the end date and unpredictability of entrepreneurial risks.
    Keywords: Russian economy, small businesses, medium-sized enterprises, OVID-19, lockdown
    JEL: C53 E37 L21 L52 I18 I19
    Date: 2022
  10. By: Staples, Aaron J.; Krumel, Thomas P. Jr.
    Keywords: Agricultural and Food Policy, Community/Rural/Urban Development, Research Methods/Statistical Methods
    Date: 2022–08
  11. By: Edmondson, Hailey; McFadden, Dawn D. Thilmany
    Keywords: Agribusiness, Marketing, Consumer/Household Economics
    Date: 2022–08
  12. By: Anne Albert-Cromarias (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]); Alexandre Asselineau; Grégory Blanchard
    Abstract: Although coopetition literature developed a lot for years, several dimensions remain under-studied. This paper addresses three of these gaps. First, the dilemma between value creation and value appropriation for coopetitors; second, the lack of empirical studies regarding the mechanisms of coopetition among micro-firms in traditional activities; third, the recent interest for geographic levels in coopetition, with a focus on the local level. Our research question is therefore: What are the mechanisms of value creation and value appropriation in local-level coopetition among micro-firms in traditional industries? We use an in-depth case study about a small French wine appellation, which is characterised by a modestly sized cultivated area occupied by small micro-firms, the existence of a cooperative cellar, but also a weak brand image. Our research contributes to the ongoing coopetition discussion in three ways: we enrich the literature on coopetition by documenting value creation and appropriation mechanisms, identifying nine different mechanisms that are collective or individual; we provide some empirical insights to coopetition literature regarding micro-firms and local-level coopetition; we produce some managerial recommendations.
    Keywords: Coopetition,Micro-firms,Value creation,Value appropriation,Value destruction,Wine
    Date: 2022–07
  13. By: Jean C. Kouam (Yaoundé, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Bin J. Meh (Yaoundé, Cameroon); Robert Nantchouang (Yaoundé, Cameroon); Fri L. Asanga (Yaoundé, Cameroon); Denis Foretia (Yaoundé, Cameroon)
    Abstract: This paper proposes a synthetic indicator of the quality of support for companies as well as identifies the factors that can contribute towards improving the quality of such support in three countries (i.e., Burkina-Faso, Cameroon, and Ghana). The approach used to construct this synthetic indicator builds on the works of Benzécri (1973) and Asselin (2002), who use static mechanics and apply techniques of factor analysis. A principal component analysis is performed on the data collected from 80 business support structures in the sampled countries. Afterconstructing the indicators, correlates are provided on how the constructed indicators are linked to the objectives of sustainable development. Our results are robust after controlling for variables relating to the general characteristics of the support structure. The findings are consistent with the thesis that taking sustainable development objectives into account in business support practices would significantly improve business performance in sampled countries and, by extension, in sub-Saharan Africa. The originality of the study stems from the fact that it considers specific SDGs (SDG4, SDG5, SDG8, and SDG9) and assesses their contribution to improving the quality of support for companies, a research area that has not been investigated hitherto by the extant literature. Implications for all stakeholders in the entrepreneurial ecosystem are discussed.
    Keywords: Synthetic indicator; Quality of support; Businesses; Sub-Saharan Africa
    JEL: C30 M20 O10 O30 O55
    Date: 2022–01
  14. By: Louise Taupin; Raphaëlle Barbier; Pascal Le Masson; Ellyn Redheuil (École des Mines de Paris, ESPCI Paris - Ecole Superieure de Physique et de Chimie Industrielles de la Ville de Paris - PSL - Université Paris sciences et lettres); Blanche Segrestin; Chipten Valibhay
    Date: 2022–05–31
  15. By: Hubert Elisé Fotso (UPVM - Université Paul-Valéry - Montpellier 3)
    Date: 2022–07–12
  16. By: NISHIGAKI Atsuko; NUMAMOTO Kazuki; HARADA Takashi; HIRAYAMA Yuka; WASHIDA Yuichi; HIGO Ai
    Abstract: From the perspective of utilizing design in business management, METI and JPO announced some characteristics of design management organization in the Declaration for Design Management. In this paper, we hypothesized that SMEs and large enterprises would benefit from having different design organizations and conducted a survey on how different organizations view design management. From this survey, we found that design management in SMEs is different from that of large enterprises, and that it is close to the elements in “The Nine Entrances†proposed by the Japan Patent Office. Seven similar factors were derived for large companies and SMEs, but for SMEs, many additional factors related to improving internal understanding were found. In particular, it is important to directly connect design management to business profits in the case of SMEs. Thus, when supporting the introduction of design management in SMEs, this paper concluded that for business construction (or reconstruction), it is desirable to provide support that is specific and appropriate to the situation of each company. This support should be provided by designers with specifically relevant design expertise. One policy implication from this paper is that building a support model for design management for SMEs is an important consideration for the direction of policy.
    Date: 2022–07

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