nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒10‒24
eleven papers chosen by
Marcus Dejardin
Université de Namur

  1. Business Dynamism, Sectoral Reallocation and Productivity in a Pandemic By Guido Ascari; Andrea Colciago; Riccardo Silvestrini
  2. Hiring Entrepreneurs for Innovation By Louise Lindbjerg; Theodor Vladasel
  3. Towards a Causal Model and Causal Inference of Regional Entrepreneurship Development Index, its antecedents and outcomes in European regions By Behnam Azhdari; Jean Bonnet; Sébastien Bourdin
  4. Enhancing Female Entrepreneurship through Cash Grants By Samih Ferrah; Jules Gazeaud; Nausheen Khan; Eric Mvukiyehe; Varada Shrotri; Olivier Sterck; Samir Ben Zineb
  5. Dynamics of First-Time Patenting Firms By Øivind Anti Nilsen; Arvid Raknerud
  6. Sustainable Venture Capital By Sam Johnston
  7. Financing gaps of companies during the Covid-19 pandemic By Demary, Markus; Hagenberg, Anna-Maria; Zdzralek, Jonas
  8. Using Digital Solutions to Address Barriers to Female Entrepreneurship By Lucero Burga; Noa Gimelli; Sofya Muradyan; Anja Robakowski; Margaret Miller; Marlon Rawlins; Gwen Snyder
  9. Unlocking the Potential of Women Entrepreneurs in Uganda By Amy Copley; Birce Gokalp; Daniel Kirkwood
  10. The Evolution and State of Singapore’s Start-up Ecosystem By Toni Eliasz; Jamil Wyne; Sarah Lenoble
  11. Corporate venture e inovação aberta em grandes empresas no Brasil By Tatiane de Freitas Cordeiro; Márcia Siqueira Rapini

  1. By: Guido Ascari; Andrea Colciago; Riccardo Silvestrini
    Abstract: Asymmetric effects across sectors are the distinctive features of the Covid-19 shock. Business Formation Statistics in the United States show a reallocation of entry and exit opportunities across sectors in the initial phase of the pandemic. To explain these facts, we propose an Epidemiological-Industry Dynamic model with heterogeneous firms and endogenous firms dynamics. Our analysis suggests that the cleansing effect on business dynamism of the Covid-19 crisis, which typically characterizes recessions, is sector-specific. The framework can rationalize the dynamics of aggregate productivity during the crisis. Monetary policy and sticky wages are central ingredients to capture reallocation effects. Social distancing, by smoothing out cleansing in the social sector, slows down the reallocation process and prolongs the recession, but saves lives.
    Keywords: Covid-19; Productivity; Entry; Reallocation
    JEL: E3 L16 I3
    Date: 2021–09
  2. By: Louise Lindbjerg; Theodor Vladasel
    Abstract: Technical human capital improves firms’ invention outcomes, but generating innovation revenue may require distinct skills in bringing new ideas to market. We argue that former founders are endowed with execution skills, a generalist ability to create and exploit market gaps by acquiring and mobilizing resources, so entrepreneurial human capital enhances innovation in established organizations. Combining register and Community Innovation Survey data from Denmark, we show that entrepreneur hires are associated with higher sales from new products and services. This result is driven by founder hires in middle management, a hierarchical position where broader decision rights and resource access increase execution skills’ effectiveness. Founder hires are more tightly linked to innovation new to the firm or market, rather than world, consistent with our prediction that execution skills help bring incremental improvements to market, but do not necessarily generate radical innovation. Together, our findings suggest that entrepreneurial human capital may help firms appropriate a larger share of the value their knowledge generates.
    Keywords: innovation, learning by hiring, entrepreneurship, execution skills, human capital, middle management
    JEL: J24 L23 M12 M21 M51
    Date: 2021–12
  3. By: Behnam Azhdari (Department of Management, Khark Branch, Islamic Azad University, Shohada St. Khark Island, Boushehr, Iran); Jean Bonnet (Normandie Univ, Unicaen, CNRS, CREM, 14000 CAEN, FRANCE); Sébastien Bourdin (EM Normandie Business School, Métis Lab, 9 rue Claude Bloch, 14000 CAEN, FRANCE)
    Abstract: While the literature on entrepreneurial ecosystems (EEs) is growing, there is still a scarce literature on the causal effect between the components of the EEs and between the EEs and regional development. Our paper fills this gap and empirically identify the causal relationships between the EEs' components and the causal effect of the EE on regional development. We show that the growth of GDP/Inhabitant in European regions is only directly determined by the creation of new firms with a strong ambition to grow and create many jobs. The perception of regional opportunities and the risk acceptance are primitive points at the origin of most of the crucial nodes of successful entrepreneurial ecosystems in European regions.
    Keywords: Entrepreneurial Ecosystem, REDI Components, Causal Models, Bayesian Networks, Bayesian Inference
    JEL: C11 L26 M13 R11
    Date: 2022–09
  4. By: Samih Ferrah; Jules Gazeaud; Nausheen Khan; Eric Mvukiyehe; Varada Shrotri; Olivier Sterck; Samir Ben Zineb
    Keywords: Gender - Gender and Development Gender - Gender and Economic Policy Poverty Reduction - Services & Transfers to Poor Private Sector Development - Business Development Services Private Sector Development - Enterprise Development & Reform
    Date: 2021–07
  5. By: Øivind Anti Nilsen; Arvid Raknerud
    Abstract: This paper investigates firm dynamics in the period before, during, and after an event consisting of a first published patent application. The analysis is based on patent data from the Norwegian Industrial Property Office merged with data from several business registers covering a period of almost 20 years. We apply an event study design and use matching to control for confounding factors. The first patent application by a young firm is associated with significant growth in employment, output, assets and public research funding. Moreover, our results indicate that economic activity starts to increase at least three years ahead of the first patent application. However, we find no evidence of additional firm growth after patent approval for successful applicants. Our findings indicate that the existence of a properly functioning patenting system supports innovation activities, especially early in the life cycle of firms.
    Keywords: patenting, firm performance, panel data, event study design
    JEL: C33 D22 O34
    Date: 2022
  6. By: Sam Johnston
    Abstract: Sustainability initiatives are set to benefit greatly from the growing involvement of venture capital, in the same way that other technological endeavours have been enabled and accelerated in the post-war period. With the spoils increasingly being shared between shareholders and other stakeholders, this requires a more nuanced view than the finance-first methodologies deployed to date. Indeed, it is possible for a venture-backed sustainability startup to deliver outstanding results to society in general without returning a cent to investors, though the most promising outcomes deliver profit with purpose, satisfying all stakeholders in ways that make existing 'extractive' venture capital seem hollow. To explore this nascent area, a review of related research was conducted and social entrepreneurs & investors interviewed to construct a questionnaire assessing the interests and intentions of current & future ecosystem participants. Analysis of 114 responses received via several sampling methods revealed statistically significant relationships between investing preferences and genders, generations, sophistication, and other variables, all the way down to the level of individual UN Sustainable Development Goals (SDGs).
    Date: 2022–09
  7. By: Demary, Markus; Hagenberg, Anna-Maria; Zdzralek, Jonas
    Abstract: For firms' business and investment decisions their access to finance is a critical determinant. In times when access to finance becomes tight, corporations face either higher capital costs or they have to postpone their investment decisions when credit lines are not prolongated. Since business investment is a prerequisite to spur economic growth, access to finance is a critical variable in business cycle stabilization. Therefore, central banks take a close look at the financing conditions of companies, and they have to loosen monetary policy when access to finance becomes tighter. In contrast to the US, where firms rely to a great degree on capital market financing, euro area firms are dominantly funded by banks. For our empirical analysis we use data from the Survey of Access to Finance of Small and Medium-sized Enterprises (SAFE) from the ECB. SAFE is a semi-annual survey and it covers the relevant data on financing conditions from the viewpoint of euro area firms with a focus on SMEs. The first wave started in the first half of 2009. Regression analyses with only three macroeconomic variables (yield on sovereign bonds, GDP growth and unemployment rate) on the percentage of vulnerable firms yield the result of a strong positive correlation with long-term interest rates. This effect is reduced when adding access to finance or the change in the external financing gap to the equation, which are also positively correlated to the vulnerability of SMEs. At the same time, the vulnerability of companies is negatively correlated with GDP growth indicating that in times of economic crisis, the vulnerability is higher than in times of economic boom. However, the coefficient loses its significance, when the change in the financing gap and access to finance were added to the regression. Since these two variables are also dependent on the business cycle, they better explain the vulnerability than GDP.
    JEL: E32 E44 E58
    Date: 2022
  8. By: Lucero Burga; Noa Gimelli; Sofya Muradyan; Anja Robakowski; Margaret Miller; Marlon Rawlins; Gwen Snyder
    Keywords: Finance and Financial Sector Development - E-Finance and E-Security Finance and Financial Sector Development - Finance and Development Gender - Gender Informatics Gender - Gender and Economics Information and Communication Technologies - Information Technology
    Date: 2021–07
  9. By: Amy Copley; Birce Gokalp; Daniel Kirkwood
    Keywords: Finance and Financial Sector Development - Microfinance Gender - Gender and Development Gender - Gender and Economic Policy Gender - Gender and Poverty Private Sector Development - Microenterprises Private Sector Development - Private Sector Economics
    Date: 2021–08
  10. By: Toni Eliasz; Jamil Wyne; Sarah Lenoble
    Keywords: Private Sector Development - Business Environment Private Sector Development - Emerging Markets Private Sector Development - Private Sector Economics Public Sector Development - Regulatory Regimes
    Date: 2021–03
  11. By: Tatiane de Freitas Cordeiro (FACE/UFMG e Fundação Dom Cabral); Márcia Siqueira Rapini (Cedeplar/UFMG)
    Abstract: Within the open innovation paradigm, Corporate Venture (VC) appears as an alternative for large companies to execute their innovation strategy and R&D investments. In this sense, this study investigates whether VC practices undertaken by large companies in Brazil contribute to the fostering of open innovation and the execution of R&D and innovation activities. This was investigated from one of 19 responses to an empirical survey conducted with large companies, gathering national and multinational companies, operating in Brazil. The results indicate that the corporate venture strategy is not always aimed at fostering innovation, since corporations seek startups that have already gone through the most uncertain stages of the R&D process and already have validated products, services and/or solutions. Furthermore, corporate ventures are aimed at incorporating promising businesses with a view to diversifying risk and reaching new markets.
    Keywords: Corporate Venture, open innovation, R&D, multinational companies
    JEL: G24 M13
    Date: 2022–09

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