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on Entrepreneurship |
| By: | Nilsen, Øivind Anti (Norwegian School of Economics); Raknerud, Arvid (Statistics Norway) |
| 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: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15529&r= |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Johansson, Dan (Örebro University School of Business); Karlsson, Johan (Centre for Family Entrepreneurship and Ownership (CeFEO)) |
| Abstract: | Based on a review of 700+ peer-reviewed articles since 1990, identified using text mining methodology and supervised machine learning, we analyze how neo-Schumpeterian growth theorists relate to the entrepreneur-centered view of Schumpeter (1934) and the entrepreneurless framework of Schumpeter (1942). The literature leans heavily towards Schumpeter (1942); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are (probabilistically) deterministic, the entrepreneur becomes redundant. Abstracting from genuine uncertainty implies that central issues regarding the economic function of the entrepreneur are overlooked, such as the roles of proprietary resources, skills, and profits. |
| Keywords: | Creative destruction; Economic growth; Entrepreneur; Innovation; Judgment; Knightian uncertainty |
| JEL: | B40 O10 O30 |
| Date: | 2022–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1441&r= |
| By: | Jörn Block (Trier-University, Erasmus-University Rotterdam, The Netherlands, University Witten/Herdecke); Alexander S. Kritikos (DIW Berlin, University of Potsdam, IZA Bonn, IAB Nuremberg); Maximilian Priem (DIW Econ Berlin); Caroline Stiel (DIW Berlin) |
| Abstract: | The self-employed faced strong income losses during the Covid-19 pandemic. Many governments introduced programs to financially support the self-employed during the pandemic, including Germany. The German Ministry for Economic Affairs announced a €50bn emergency-aid program in March 2020, offering one-off lump-sum payments of up to €15,000 to those facing substantial revenue declines. By reassuring the self- employed that the government ‘would not let them down’ during the crisis, the program had also the important aim of motivating the self-employed to get through the crisis. We investigate whether the program affected the confidence of the self-employed to survive the crisis using real-time online-survey data comprising more than 20,000 observations. We employ propensity score matching, making use of a rich set of variables that influence the subjective survival probability as main outcome measure. We observe that this program had significant effects, with the subjective survival probability of the self- employed being moderately increased. We reveal important effect heterogeneities with respect to education, industries, and speed of payment. Notably, positive effects only occur among those self-employed whose application was processed quickly. This suggests stress-induced waiting costs due to the uncertainty associated with the administrative processing and the overall pandemic situation. Our findings have policy implications for the design of support programs, while also contributing to the literature on the instruments and effects of entrepreneurship policy interventions in crisis situations. |
| Keywords: | self-employment, emergency-aid, treatment effects, Covid-19, entrepreneurship policy, subjective survival probability |
| JEL: | C21 H43 L25 L26 J68 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:55&r= |
| By: | Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio |
| Abstract: | In this article we have estimated the value of “Opportunity Driven Entrepreneurship” in Europe. We use data from European Innovation Scoreboard-EIS of the European Commission for 36 countries in the period 2010-2019. We use Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, Pooled OLS, and Dynamic Panel. Our results show that “Opportunity Driven Entrepreneurship” is positively associated, among others, to “Innovation Friendly Environment” and “Turnover Share Large Enterprises”, while it is negatively associated, among others, to “Sales Impacts” and “R&D Expenditure Business Sectors”. |
| 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: | 2022–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114716&r= |
| By: | Ferrazzi,Matteo; Tueske,Annamaria |
| Abstract: | The information contained in the Enterprise Survey—administered by the World Bank (WB), theEuropean Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB)—is used to build afirm-level “Corporate Environmental, Social, and Governance Responsibility” composite indicator. The novelty of theindicator, compared with the corporate social responsibility scores and environmental, social, and governance (ESG)scores already available, is due to its unique coverage, namely, a large number of private sector small andmedium-size enterprises in selected emerging economies (morethan 40 economies covered by the Enterprise Survey). The composite indicator summarizes information on private sectoractions on environmental, social, and governance factors. The analysis shows that the actions of private sector smalland medium-size enterprises in emerging economies to foster sustainability and green growth significantly lag in thetransition to a more sustainable business environment, and large gaps persist. Among emerging economies, those in theMiddle East and North Africa—which deserve special attention due to the urgent need to green their growth model—are amongthe worst performers. Larger companies in the Middle East and North Africa show better environmental, social, andgovernance performance than small and medium-size enterprises in other areas; but smaller firms in the MiddleEast and North Africa show extremely weak performance in many aspects, even if controlling for the relative level ofeconomic development. The weakness of environmental, social, and governance practices among firms in the Middle East andNorth Africa is due to the social (with large gaps in female participation in the workforce and management) andenvironmental topics. This calls for urgent policy action to address such weaknesses and exploit the full potential ofthe region. |
| Date: | 2022–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10065&r= |
| By: | Jeremy Greenwood; Pengfei Han; Hiroshi Inokuma; Juan M. Sanchez |
| Abstract: | This article uses an endogenous growth model to study how the improvements in financing for innovative start-ups brought by venture capital (VC) affect firm innovation and growth. Partial equilibrium results show how lending contracts change as financing efficiency improves, while general equilibrium results demonstrate that better screening and development of projects by VC investors leads to higher aggregate productivity growth. |
| Keywords: | endogenous growth; financial development; innovation; IPO; screening; research and development; startups; venture capital |
| JEL: | E13 E22 G24 L26 O16 O31 O40 |
| Date: | 2022–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:94817&r= |
| By: | Falk Bräuning; José Fillat; J. Christina Wang |
| Abstract: | Using supervisory data on small and mid-sized nonfinancial enterprises (SMEs), we find that those SMEs with higher leverage faced tighter constraints in accessing bank credit after the COVID-19 outbreak in spring 2020. Specifically, SMEs with higher pre-COVID leverage obtained a smaller volume of new loans and had to pay a higher spread on them during the pandemic period. Consistent with an inward shift in loan supply, these effects were concentrated in loans originated by banks with below-median capital buffers. Highly levered SMEs that relied on low-capital large banks for funding before the pandemic were not able to substitute to other sources of debt financing and thus experienced more of a reduction in total debt as well as a decline in investment and employment. On the other hand, the unprecedented public support, especially the Paycheck Protection Program (PPP), mitigated the adverse real effect stemming from bank credit constraints. |
| Keywords: | leverage; small business; credit supply; bank capital; COVID-19 |
| JEL: | G21 G28 G32 |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:94908&r= |
| By: | Arnaud Dornel; Meriem Ait Ali Slimane; Komal Mohindra |
| Keywords: | Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Microfinance International Economics and Trade - Trade Finance and Investment Private Sector Development - Small and Medium Size Enterprises |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34898&r= |
| By: | Sam Z. Njinyah (Manchester Metropolitan University, UK); Sally Jones (Manchester Metropolitan University, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The performance of small and medium size enterprises (SMEs) is an important determinant of economic development, especially in developing countries like Cameroon. However, due to financial constraints, SMEs in Cameroon do face significant challenges to exporting, which affect their export performance. Many SMEs develop relationships with financial institutions to benefit from loans to overcome export barriers. However, there is no evidence as to whether such benefits help them overcome the limitations of their financial constraints to improve their export performance. Using data from the World Bank Enterprise Survey 2016 in Cameroon, we examine the moderation effect of loans as a benefit of networks on the relationship between financial constraints and export performance for SMEs in Cameroon using regression analysis. Our results show that financial constraints negatively affect export performance. The moderation effect was significant but negative which means the benefit of network (loans) was not enough to offset the negative effect of financial constraints on export performance. Studies on export barriers and export performance for SMEs in Cameroon are scarce and our research provides some policy and managerial implications to help SME exporting in Cameroon. |
| Keywords: | Export barriers, Lack of finance, Network, Export performance, and Cameroon |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/073&r= |