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on Entrepreneurship |
| By: | Jean-François Wen |
| Abstract: | Turnover taxes are prevalent in developing countries as a simple form of presumptive taxation of business income. Such simplified tax regimes can reduce the relatively high compliance costs of micro and small enterprises, which might otherwise discourage entrepreneurs from formalizing their activities and paying taxes. The note addresses design issues for a turnover tax regime—which taxes it replaces, what the criteria are for eligibility, how to determine the optimal threshold, and how to set the tax rate. A key observation is that, although low turnover tax rates may incite larger firms to artificially reduce their sales, the rate should also not be so high as to discourage formalization of activities. A table of tax rates and turnover thresholds observed internationally is provided. The note concludes by suggesting analytical steps to guide practitioners in designing turnover tax regimes. |
| Keywords: | Presumptive tax; turnover tax; informal sector; microenterprises; taxpayer Compliance cost; turnover tax rate; turnover tax systems; IMF library; Sales tax; Income and capital gains taxes; Income tax systems; Corporate income tax; Effective tax rate; Africa; South America; Eastern Europe; West Africa; Western Europe |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfhtn:2023/002&r=ent |
| By: | Buser, Thomas (University of Amsterdam); Oosterbeek, Hessel (University of Amsterdam) |
| Abstract: | A large empirical literature in behavioral economics investigates heterogeneity across individuals and groups in preferences for competition. In this study, we provide a more detailed view on competitiveness by differentiating between four different motivations for entering competitions – enjoyment of competition, desire to win, competition for personal development, and general challenge seeking. We investigate which of these dimensions are picked up by traditional measures of competitiveness; how they predict individual and gender differences in career outcomes including income, holding a leadership position, and entrepreneurship; how they predict wellbeing; and how they relate to other personality traits, skills, and preferences. |
| Keywords: | competitiveness, personality traits, labor market outcomes, leadership, gender |
| JEL: | C92 D91 J24 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16224&r=ent |
| By: | Fernando Leibovici; David Wiczer |
| Abstract: | This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to credit, are more likely to default than firms with more access to credit. This difference widened substantially in the Great Recession while, in contrast, default rates did not vary much by size, age, or productivity. We identify conditions under which standard models of firms subject to financial frictions can be consistent with these facts. |
| Keywords: | Firm exit; Great Recession; Credit constraints; Financial distress |
| JEL: | E32 G01 |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmoi:96367&r=ent |
| By: | Fien van Solinge (CPB Netherlands Bureau for Economic Policy Analysis); Beau Soederhuizen (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | In our new study we find that strengthening insolvency law increases the amount of long-term debt, as a percentage of total assets, on firms’ balance sheets in Europe. Since we also find a negative effect on short-term leverage, it seems that improving insolvency law causes a shift from short-term to long-term debt. Longer debt maturities can protect firms from rising interest rates and credit crunches. Furthermore, we find that these effects are stronger for large firms with a lot of tangible assets and in countries with short insolvency procedures. These findings are relevant for policy makers because there are proposals to further harmonize insolvency law in the European Union (EU). The first steps have already been taken. In 2019 the EU adopted a directive to harmonize preventative restructuring. Currently, a Commission proposal on further harmonization of in-court insolvency procedures is being discussed in the European Parliament. The goal is to strengthen European capital markets and to enhance financing possibilities for firm. Therefore, our study adds to the policy debate and gives insight into the possible effects changing insolvency law could have. |
| JEL: | G15 G32 G33 K22 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:448&r=ent |
| By: | Ufuk Akcigit; Raman Singh Chhina; Seyit M. Cilasun; Javier Miranda; Eren Ocakverdi; Nicolas Serrano-Velarde |
| Abstract: | Small and young businesses are essential for job creation, innovation, and economic growth. Even most of the superstar firms start their business life small and then grow over time. Small firms have less internal resources, which makes them more fragile and sensitive to macroeconomic conditions. This suggests the need for frequent and real-time monitoring of the small business sector’s health. Previously this was difficult due to a lack of appropriate data. This paper fills this important gap by developing a new Intuit QuickBooks Small Business Index that focuses on the smallest of small businesses with at most 9 workers in the US and the UK and at most 19 workers in Canada. The Index aggregates a sample of anonymous QuickBooks Online Payroll subscriber data (QBO Payroll sample) from 333, 000 businesses in the US, 66, 000 in Canada, and 25, 000 in the UK. After comparing the QBO Payroll sample data to the official statistics, we remove the seasonal components and use a Flexible Least Squares method to calibrate the QBO Payroll sample data against official statistics. Finally, we use the estimated model and the QBO Payroll sample data to generate a near real-time index of economic activity. We show that the estimated model performs well both in-sample and out-of-sample. Additionally, we use this analysis for different regions and industries. |
| JEL: | D22 E24 J20 J21 J24 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31350&r=ent |
| By: | Jean-Michel Severino (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, I&P - Investisseurs et Partenaires, UCA - Université Clermont Auvergne) |
| Abstract: | The article below argues for the need to strongly accelerate public involvement in support of entrepreneurial emergence in poor and fragile countries. After mentioning the economic and employment issue, it explains how this priority has long disappeared from the international agenda as well as from domestic public policies, particularly in Africa. Efforts to promote the private sector have in practice focused on foreign direct investment and the largest companies. Middle- and emerging income countries, and a limited number of sectors and financial instruments, such as debt, have been valued. The article evokes the gradual change of perception on this subject from the beginning of the century and the emergence of new so- called impact actors focused particularly on SMEs in poor countries, accompanied by some public private sector financing institutions (DFIs), development agencies or foundations. |
| Date: | 2023–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04123965&r=ent |
| By: | Violeta Moskalu (Institut d'Administration des Entreprises (IAE) - Metz) |
| Abstract: | Our research proposes a conceptual framework for understanding diaspora entrepreneurship and outlines a future research agenda to advance the field. The diaspora entrepreneurship is a unique phenomenon that involves the creation and development of new ventures by members of a diaspora community, who draw on their cultural, social, and economic ties to their homelands to create economic opportunities in their host countries, or vice versa (Moskalu, 2018). We propose a conceptual framework that includes three dimensions of the diaspora entrepreneurial orientation: diaspora networks, diaspora mindset and more specifically its psychological ownership and institutional context (rules, regulations, policies, cultural factors), to bridge the gap between theory, practice, and policy (Elo & al., 2022) by using an international business and entrepreneurship lens to analyze the diaspora entrepreneurship phenomena. The two main scientific contributions of our research are 1) we have proposed a research design on diaspora entrepreneurship for the creation of public value, with an unprecedented intersection articulating different dimensions of the phenomenon of entrepreneurship; and 2) we have designed the future research agenda on diaspora entrepreneurship. |
| Keywords: | diaspora entrepreneurship, entrepreneurial situation, entrepreneurial orientation, trust, entrepreneurial support, social capital |
| Date: | 2023–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04108836&r=ent |
| By: | Nisha Taneja (Indian Council for Research on International Economic Relations (ICRIER)); Sanjana Joshi (Indian Council for Research on International Economic Relations (ICRIER)); Shravani Prakash |
| Abstract: | In recent years India has increasingly come to recognize the importance of empowering women and promoting gender equality in its growth story. However, the multitude of schemes and initiatives supporting entrepreneurship among women are primarily focussed on handholding early-stage development. The focus is on capacity building, mentoring and small value collateral free starting loans. Support for internationalization of women-owned enterprises through targeted measures to boost women’s participation in international trade has lagged. This policy brief identifies the key gaps and recommends an active affirmative strategy of gender mainstreaming across three composite elements of the enabling ecosystem for trade – a clear guiding vision, institutional set-up and international cooperation. It is recommended that the upcoming Foreign Trade Policy which is slated for 2021-2026 be used to mainstream gender in the national trade agenda. The recognition of the gender specific impediments and vulnerabilities that women entrepreneurs face should be reflected in both the vision and strategy, with a holistic focus on export promotion, integration in global value chains (GVCs), ease of doing business, and trade facilitation. Secondly, there is need for a robust institutional set-up underpinned by support programs and incentives, regular gender consultation, timely collection of gender disaggregated data and impact assessment. With gender equality considerations gaining traction in bilateral and multilateral trade discussions and agreements, India should also include women entrepreneurs as important stakeholders in domestic consultations on free trade agreements and their aspirations and concerns should be reflected in the final texts through gender responsive provisions. |
| Keywords: | creative economy, culture, employment, output, intellectual property, G20 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdc:ppaper:12&r=ent |
| By: | Gan, Siew Wei (Asian Development Bank Institute); Sarma, Vengadeshvaran (Asian Development Bank Institute); Tang, Yu Hoe (Asian Development Bank Institute); Sim, Siew Chen (Asian Development Bank Institute) |
| Abstract: | Online marketplace participation is a strategy for reducing barriers for female entrepreneurs who qualify as persons with disabilities (PWDs). Adapting a framework focused on causal interaction, entrepreneurial action, and the sociocultural context, we analyzed data using a mixed-methods approach from an entrepreneurial training program aimed at PWDs and implemented in three Southeast Asian nations, namely Indonesia, Malaysia, and the Philippines, to evaluate whether online marketplace participation helps female PWDs generate better income and support their families. Findings indicate that female PWD entrepreneurs who participate in the online marketplace generate better earnings than those who do not, although heterogeneities by nature of the product/service in question are prevalent. The results also show that trainees are better able to meet their families’ financial needs. Despite the advantages, online marketplace participation among female PWD entrepreneurs is still low due to constraints regarding capital, technical know-how, and suitability of products. Hence, targeted intervention is necessary to enhance their participation. |
| Keywords: | entrepreneurship; PWDs; online marketplace; training |
| JEL: | I31 L26 O17 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1342&r=ent |
| By: | Bednarik, Zuzana; Marshall, Maria I. |
| Keywords: | Community/Rural/Urban Development, Research Methods/Statistical Methods, Institutional and Behavioral Economics |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335449&r=ent |
| By: | Yuwandono, Rr Jihan Faadhilah; Maisyaroh, Siti; Ridayati, Salija; Pandin, Maria Yovita R |
| Abstract: | The purpose of this study was to determine the level of understanding and concern of Micro, Small and Medium Enterprises in the gate Garment ethical paper relating to the application of green accounting in its business. Green Accounting is the development of accounting information, which has its own role through voluntary reporting in the company's financial statements related to environmental costs. Observation, interview and documentation techniques were used to collect research data. Data analysis in this qualitative descriptive research using Miles and Huberman data analysis model in (Sugiyono, Metode Penelitian Kuantitatif, Kualitatif, dan R&D., 2017) specifically reduces data, presents data, then makes conclusions. The results of this study indicate that two out of three Micro, small and medium Garment business actors in Gerbang Kertasusila understand and understand about good care in maintaining the work environment as a form of green accounting. Although for details about the expenditure of business costs garment and the environment they have not telesuri in detail but they realize that the environmental cost is a responsibility that is loaded on the financial statements of their businesses that do not include details, but they recognize that the environmental cost is the responsibility of reporting on their business finance research. |
| Date: | 2023–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:ztq9p&r=ent |
| By: | Radhicka Kapoor (Indian Council for Research on International Economic Relations (ICRIER)) |
| Abstract: | This paper seeks to review the role of MSMEs in employment generation by examining key stylized facts and trends on the evolution of the enterprise size distribution in India for the time period between 2000-01 and 2015-16 using the two main available establishment databases, namely the Annual Survey of Industries and the NSSO’s Enterprise Survey of Unincorporated Enterprises. These surveys cover enterprises in the registered/formal and informal/unincorporated manufacturing sector respectively. |
| Keywords: | Employment, Manufacturing, MSME, SME Policy |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdc:wpaper:409&r=ent |
| By: | Jean-Michel Severino (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, I&P - Investisseurs et Partenaires, UCA - Université Clermont Auvergne) |
| Abstract: | L'article plaide pour la nécessité d'accélérer fortement l'implication publique en faveur de l'émergence entrepreneuriale dans les pays pauvres et fragiles. Après avoir évoqué l'enjeu économique et d'emploi, il explique comment cette priorité a longtemps disparu de l'agenda international comme des politiques publiques intérieures, notamment en Afrique. Les efforts de promotion du secteur privé se sont en pratique concentrés sur les investissements directs étrangers et les plus grandes entreprises. Les pays à revenu intermédiaire et émergents, comme un nombre limité de secteurs et d'instruments financiers, dont la dette, ont été valorisés. L'article évoque le changement progressif de perception sur ce sujet à partir du début du siècle et l'émergence de nouveaux acteurs dits d'impact focalisés particulièrement sur les PME des pays pauvres, accompagnés par quelques institutions publiques de financement du secteur privé (DFIs), agences de développement ou fondations. |
| Date: | 2023–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04123956&r=ent |