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on Entrepreneurship |
| By: | Marco Caliendo; Alexander S. Kritikos; Claudia Stier |
| Abstract: | Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance. |
| Keywords: | Entrepreneurship, Push and Pull Theories, Start-up Motivation, Survival, Job Creation, Firm Growth, Innovation |
| JEL: | L26 C14 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2029&r=ent |
| By: | Naudé, Wim (RWTH Aachen University); Amorós, Ernesto (EGAP Tecnológico de Monterrey CEM); Brück, Tilman (ISDC - International Security and Development Center) |
| Abstract: | This paper investigates the relationship between state-based conflict and entrepreneurship. From a survey of the existing literature, we formulate two hypotheses: (1) state-based conflict has a negative association with productive and opportunity-motivated forms of entrepreneurship, and (2) a positive association with unproductive and necessity-motivated forms of entrepreneurship. We test these hypotheses by drawing on several state-based conflict and entrepreneurship measures, using appropriate estimators, and employing robustness checks. The evidence supports our hypotheses. Necessity-motivated start-up entrepreneurship is, on average, almost three times higher in countries in conflict than in countries not in conflict. Development level matters. In countries with less unemployment, more finance, and higher levels of physical, human capital and GDP, entrepreneurship is more resilient, and the ratio of female-to-male entrepreneurs in opportunity-motivated entrepreneurship higher. |
| Keywords: | entrepreneurship, conflict, war, small business, employment |
| JEL: | L26 M13 J23 N40 O11 O17 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15946&r=ent |
| By: | Mirella Schrijvers; Niels Bosma; Erik Stam |
| Abstract: | The process of structural change is investigated in six European regions that were recently confronted with a severe decline in manufacturing jobs. Entrepreneurs are key actors in this process, as they are the agents driving creative destruction that is needed to transform the economy. The entrepreneurial ecosystem of each of the regions is analysed using ecosystem metrics and case study methods. Having a strong entrepreneurial ecosystem helps regions to be resilient to shocks, such as a decline in traditional industries or closures of large focal firms. Institutions, knowledge, and skilled labour play key roles in a successful economic transformation. Formal institutions can provide the leadership and investment needed to quickly adapt to shocks, as shown in the West Midlands (UK), Eindhoven (NL), and Oulu (Finland). The cases of Sofia, Bulgaria, and the Ruhr region, Germany, show however that a strong ecosystem does not guarantee a swift structural transformation. To explain these exceptions, it is important to consider the economic history and regional context. For example, a strong dependence on one industry or firm can create a lock-in effect that prevents resilience in the face of shocks. When diagnosing ecosystems to inform policies, it is therefore crucial to combine metrics with a thorough understanding of the regional context. |
| Keywords: | Structural change, entrepreneurship, entrepreneurial ecosystem, regional diversity, economic resilience |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2202&r=ent |
| By: | Robert Blackburn; Stephen Machin; Maria Ventura |
| Abstract: | The sixth LSE-CEP survey of the self-employed was undertaken in November 2022 and found that the downward trend in income levels of the self-employed reported in May 2022 has continued. The cost of living crisis is hitting small businesses particularly hard, with the increase in energy prices and other output costs compounding the effects of the Covid-19 pandemic. Another concern facing the self-employed is their relatively low levels of pension provision - almost three quarters do not make contributions to a personal pension scheme. The self-employed do manage to sustain their activities even in difficult economic conditions but the series of shocks encountered over the past three years is fully testing their resilience. Consequently, we have observed a recent exodus of the self-employed. This analysis suggests that the exodus will continue, even among the most robust enterprises given the scale of challenges. |
| Keywords: | Covid-19, self-employed, cost of living crisis, pensions gap |
| Date: | 2023–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcvd:cepcovid-19-029&r=ent |
| By: | Zhiyuan Chen; Minjie Deng; Min Fang |
| Abstract: | This paper documents that firms are increasingly financing innovation using their stock of innovation, measured as patents. We refer to this behavior as financing innovation with innovation. Drawing on patent collateral data from both the US and China, we first show that (1) in both countries, the total number and share of patents pledged as collateral have been rising steadily, (2) Chinese firms employ patents as collateral on a smaller scale and with a lower intensity than US firms, (3) firms increase their borrowing and innovation after they start to use patent collateral. We then construct a heterogeneous firm general equilibrium model featuring idiosyncratic productivity risk, innovation capital investment, and borrow- ing constrained by patent collateral. The model emphasizes two barriers that hinder the use of patent collateral: high inspection costs and low liquidation values of patent assets. We parameterize the model to firm-level panel data in the US and China and find that both barriers are significantly more severe in China than in the US. Finally, counterfactual analyses show that the gains in innovation, output, and welfare from reducing the inspection costs in China to the US level are substantial, moreso than enhancing the liquidation value of patent assets. |
| Keywords: | Patent collateral; innovation investment; financial frictions; firm dynamics; |
| JEL: | E22 G32 O31 O33 |
| Date: | 2023–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-749&r=ent |
| By: | Shai Bernstein; Emanuele Colonnelli; Mitchell Hoffman; Benjamin Iverson |
| Abstract: | In an RCT with US small businesses, we document that a large share of firms are not well-informed about bankruptcy. Many assume that bankruptcy necessarily entails the death of a business and do not know about Chapter 11 bankruptcy, where debts are renegotiated so that the business can continue operating. Small businesses are also unaware of a recent major reform that lowered the costs of bankruptcy procedures to enhance their protection. In addition, they exhibit substantial stigma related to bankruptcy, believing that bankruptcy is embarrassing, a sign of failure, and a negative signal to employees and customers. Randomly providing short educational videos that address information or stigma gaps leads to increased firm knowledge about bankruptcy and decreased perceptions of stigma, both immediately and durably over 4 months. The videos also increase reported interest in using Chapter 11 bankruptcy and increase firms' intended debt and investment. However, we do not find long-term evidence of real effects. We then conduct a survey of bankruptcy attorneys and judges, who point to entrepreneurs' overconfidence and, to a lesser extent, excessive perceived legal fees as first-order frictions explaining the limited real impact of treatments that only address information and stigma. Our findings help inform the design of policies targeting the limited use of bankruptcy protection by small businesses. |
| JEL: | G33 M5 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30933&r=ent |
| By: | Paul X. McCarthy; Xian Gong; Fabian Stephany; Fabian Braesemann; Marian-Andrei Rizoiu; Margaret L. Kern |
| Abstract: | Startup companies solve many of today's most complex and challenging scientific, technical and social problems, such as the decarbonisation of the economy, air pollution, and the development of novel life-saving vaccines. Startups are a vital source of social, scientific and economic innovation, yet the most innovative are also the least likely to survive. The probability of success of startups has been shown to relate to several firm-level factors such as industry, location and the economy of the day. Still, attention has increasingly considered internal factors relating to the firm's founding team, including their previous experiences and failures, their centrality in a global network of other founders and investors as well as the team's size. The effects of founders' personalities on the success of new ventures are mainly unknown. Here we show that founder personality traits are a significant feature of a firm's ultimate success. We draw upon detailed data about the success of a large-scale global sample of startups. We found that the Big 5 personality traits of startup founders across 30 dimensions significantly differed from that of the population at large. Key personality facets that distinguish successful entrepreneurs include a preference for variety, novelty and starting new things (openness to adventure), like being the centre of attention (lower levels of modesty) and being exuberant (higher activity levels). However, we do not find one "Founder-type" personality; instead, six different personality types appear, with startups founded by a "Hipster, Hacker and Hustler" being twice as likely to succeed. Our results also demonstrate the benefits of larger, personality-diverse teams in startups, which has the potential to be extended through further research into other team settings within business, government and research. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.07968&r=ent |
| By: | Aria, Dr |
| Abstract: | Today's organizations are facing a number of challenges in terms of their operational and strategic performance. This is due to the uncertainties of the environment, the turbulence of markets, and the heterogeneity of employees. The trend of corporate entrepreneurship is becoming obvious to a greater and greater extent as companies increasingly turn to it. This is in order to be able to develop and nurture both today's core competencies and those of tomorrow at the same time in order to successfully meet the challenge of meeting the needs of tomorrow. Due to the above factors, it has become increasingly important for managers at every level of the organization to be actively involved in the creation and implementation of a corporate entrepreneurship strategy in order to achieve success. As a general consensus, a number of studies from the past decade, which are based on a number of studies that have been conducted over the past few years, have suggested that successful corporate entrepreneurship (CE) is associated with improved firm performance. However, this is not a consensus that is universal, as there are a number of studies that differ on this point. Corporate entrepreneurship may be viewed from a variety of different perspectives, and there are many ways to do so. As time passes, however, it is becoming increasingly evident that this is not the case and that it is in fact not the case at all. Due to its effectiveness, validity, and feasibility, corporate entrepreneurship has been shown to be an effective, valid, and feasible method of achieving high levels of performance at the organizational level, as a result of its effectiveness, validity, and feasibility. Moreover, executive coaching is now gaining recognition as one of the most effective and effective practices that have the potential of providing tangible and real advantages to a broad range of organizations at all levels of management, as well as being one of the most promising and effective management tools. |
| Keywords: | Entrepreneurship within corporations, Corporate Entrepreneurship and Technology, Challenges in corporate entrepreneurship, Corporate Entrepreneurship and Organizations |
| JEL: | L2 L26 L3 L31 O3 O32 O35 Q55 |
| Date: | 2021–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116344&r=ent |
| By: | Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | This study examined the impact of the government enterprise and empowerment programme (GEEP) on women’s performance in entrepreneurship development in Nigeria. Results from the use of difference-in-difference (DiD) quasi-experimental design indicate that GEEP intervention has significant impacts on enterprise turnover, reduction in per unit cost of production, increase in profitability and return on investment (ROI). The results also show unequal access to resources and opportunities available in GEEP, between rural and urban residents. The findings suggest that if the rural women had equal access to the resources and opportunities available to their urban counterparts in GEEP, they would participate in traditional industries and build livelihoods in rural economies. This implies that embracing increased GEEP interventions with rural dwellers will enhance women’s entrepreneurship development, raise women’s economic status and deter aggression in Nigeria. |
| Keywords: | Women’s entrepreneurship development, government enterprise and empowerment programme (GEEP), rural and urban residents, sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/014&r=ent |
| By: | Nathalie Touratier-Muller (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Karim Machat (LIREM - Laboratoire de Recherche en Management (LIREM) - UPPA - Université de Pau et des Pays de l'Adour); Jacques Jaussaud (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article explores the behaviour of small- and medium-sized enterprises (SMEs) regarding mandatory and voluntary measures established by the French government to reduce carbon dioxide (CO2) emissions generated by freight transport operations. Through semi-structured interviews with fourteen SMEs (five shippers, eight carriers and a consultant) located throughout France, this research examines the integration of sustainable development into organizational and decision-making practices since the introduction of these programmes on the French territory. Our qualitative study suggests that active environmental implications stem mainly from the company's internal dynamics, driven by its management, as well as end customers' expectations. The voluntary policies seem to appeal more to SMEs than the mandatory measures implemented since 2013. This research shows that the carriers surveyed are highly environmentally proactive, regardless of their size. It also sheds light on techniques that could increase the efficiency and widespread adoption of governmental measures, in particular through the increasing use of on-board telematics. |
| Abstract: | Cet article explore le comportement des petites et moyennes entreprises (PME) suite aux dispositifs obligatoires et volontaires mis en place par le gouvernement français pour réduire les émissions de CO2 générées par le transport de marchandises. Grâce à des entretiens semi-directifs réalisés auprès de quatorze entreprises réparties sur le territoire français (cinq chargeurs, huit transporteurs et un consultant), nous examinons la prise en compte du développement durable dans les pratiques organisationnelles et décisionnelles des PME depuis l'apparition de ces dispositifs. Notre étude qualitative suggère que les implications environnementales actives découlent principalement de la dynamique interne de l'entreprise, pilotée par sa direction, ainsi que des attentes des clients finaux. Ce sont les démarches volontaires qui semblent séduire davantage les PME par rapport aux dispositifs obligatoires mis en place depuis 2013. Nous identifions une forte proactivité environnementale des transporteurs interrogés, quelle que soit leur taille. Notre travail apporte également un éclairage sur les techniques qui permettraient d'accroître l'efficacité et l'adoption des dispositifs gouvernementaux, notamment via une utilisation croissante de la télématique embarquée. |
| Keywords: | Sustainable transport, government programmes, freight transport, SME, CO2 emissions reduction, Transport durable, dispositifs gouvernementaux, transport de fret, PME, réduction des émissions de CO2 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03691089&r=ent |
| By: | Bersch, Johannes; Murmann, Simona |
| Abstract: | In dieser Studie zum deutschen Innovationssystem berichtet das ZEW über die Unternehmensdynamik in der deutschen Wirtschaft, mit einem deutlichen Fokus auf die deutsche Wissenswirtschaft. Die Studie beinhaltet Informationen zum Gründungs- und Schließungsgeschehen in Deutschland bis zum Jahr 2021, auch differenziert für die einzelnen Bundesländer, sowie zum Vergleich der Dynamik im deutschen Unternehmenssektor mit der Unternehmensdynamik ausgewählter anderer Länder bis zum Jahr 2020. Zudem wird über die Entwicklung des Wagniskapitalmarktes in Deutschland und im internationalen Vergleich berichtet. Die Analysen zu den Gründungen und Schließungen für Deutschland erstrecken sich über den Zeitraum 2005 bis 2021. Für den internationalen Vergleich stehen Daten für die Jahre 2008 bis 2020 zur Verfügung. Empirische Grundlage für die Analysen zu Deutschland ist das Mannheimer Unternehmenspanel des ZEW (MUP), die internationalen Vergleiche beruhen auf der strukturellen Unternehmensstatistik (Structural Business Statistics) von Eurostat. Die Untersuchungen zum Wagniskapitalmarkt stützen sich in diesem Jahr für Deutschland sowie für den internationalen Vergleich auf Verbandsdaten von Invest Europe. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:efisdi:32023&r=ent |