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on Entrepreneurship |
| By: | Michael Wyrwich (University of Groningen, and Friedrich Schiller University Jena); Michael Fritsch (Friedrich Schiller University Jena) |
| Abstract: | Mounting empirical evidence shows that regional differences of entrepreneurship are persistent over long periods of time that may reflect the prevalence of an entrepreneurial culture. We explore three important mechanisms behind the transmission of such an entrepreneurial culture. First, we analyze the role model effects at the household level. We hypothesize that the larger the households of self-employed, the greater the opportunities for role model effects such as an intergenerational transfer of entrepreneurial values and attitudes, and hence the higher the regional start-up rate in later periods. Second, we investigate how the economic success of regional entrepreneurs fuels the role model effects. Third, we analyze if and to what extent the economic success in of regional entrepreneurship stimulates a collective memory of historical entrepreneurship that spurs self-employment in later periods. The analysis of entrepreneurship in German regions over a period of more than 90 years provides support for the significance of all three transfer channels. |
| Keywords: | Entrepreneurship, intertemporal transfer, regional trajectories |
| JEL: | L26 R11 O15 J1 |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-006&r=ent |
| By: | Mella-Barral, P.; Sabourian, H. |
| Abstract: | Firms can voluntarily create independent firms to implement their technologically distant innovations and capture their value through capital markets. We argue that when firms repeatedly compete to make innovations, there is inefficient external implementation of innovations and “excessive†creation of such firms. This inefficiency is most exacerbated in the early stages of an industry, when the number of firms is still limited. |
| Keywords: | Repeated Innovations, Spin-Offs, Voluntary Firm Creation |
| JEL: | M13 O31 O33 |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2347&r=ent |
| By: | McShane, William; Sevilir, Merih |
| Abstract: | We propose a novel mechanism through which established firms contribute to the startup ecosystem: the allocation of R&D tax credits to startups via the M&A channel. We show that when established firms become eligible for R&D tax credits, they increase their R&D and M&A activity. In particular, they acquire more venture capital (VC)-backed startups, but not non-VC-backed firms. Moreover, the impact of R&D tax credits on firms' R&D is increasing with their acquisition of VC-backed startups. The results suggest that established firms respond to R&D tax credits by acquiring startups rather than solely focusing on increasing their R&D intensity in-house. We also highlight evidence that startups do not appear to benefit from R&D tax credits directly, perhaps because they typically lack the taxable income necessary to directly benefit from the tax credits. In this context, established firms can play an intermediary role by acquiring startups and reallocating R&D tax credits, effectively relaxing the financial constraints faced by startups. |
| Keywords: | indirect effects, innovation, mergers and acquisitions (M&A), research and development (R&D), startups, tax credits |
| JEL: | G00 G34 H24 M13 O31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:152023&r=ent |
| By: | Poschke, Markus (McGill University) |
| Abstract: | Poor countries have low wage employment and high self-employment. This paper shows that they also have high unemployment relative to wage employment, and that self-employment increases with this ratio. To understand the sources of these patterns, I build a search and matching model with choice between job search and self-employment and with learning about matches, and calibrate it to match all transition rates between wage employment, unemployment and self-employment as well as separation hazards by job duration, separately for all 37 countries with available data. Quantitative analysis of the model shows that labor market frictions affect self-employment as much as unemployment. Labor market frictions also reduce aggregate output, not only by raising unemployment, but also by worsening the average quality of both wage employment matches and active self-employment projects. |
| Keywords: | wage employment, unemployment, self-employment, labor market frictions, occupational choice, productivity |
| JEL: | O11 E24 J64 L26 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16271&r=ent |
| By: | Klaus Gugler (Department of Economics, Vienna University of Economics and Business); Florian Szücs (Department of Economics, Vienna University of Economics and Business); Ulrich Wohak (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | We evaluate the impact of big-tech acquisitions on the incentives for investment and innovation. Using data on several hundred acquisitions by Google, Apple, Facebook, Amazon and Microsoft (GAFAM), we study the evolution of venture capital investment and patenting relative to control groups. The results show a clear negative impact on investment, while the effect on innovation depends on the acquirer and period. Both outcomes improve over time, as GAFAM firms become more similar in terms of their product and tech-portfolios, increasing competition. Yet, around 10% of acquisitions impact both metrics negatively. |
| Keywords: | M&A, big-tech, innovation, investment |
| JEL: | D22 G34 K21 L41 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp340&r=ent |
| By: | Shrestha, Samyam; Sant'Anna, Hugo |
| Keywords: | Labor and Human Capital, Institutional and Behavioral Economics, Agribusiness |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335611&r=ent |
| By: | Sam Z. Njinyah (Manchester Metropolitan University, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The purpose of this paper was to examine the relationship between a firm starting operation informally and its future innovation and whether this relation is moderated by institutional support (having access to finance from financial institutions to run their business).Data from the World Bank Enterprise Survey on 30 Eastern European and Central Asian countries were analysed using probit regression analysis. The findings show that there is a positive significant relationship between firms that start operation informally and the firm’s innovation and that such effect persists overtime. The study found that this relationship is stronger if the firms can gain access to finance to expand their business activities. Finally, the results show that such a relationship is based on the type of innovation being pursued by the firm. By examining the moderation effect of access to finance on starting a business informally, the study provides an alternative explanation to policymakers on how to deal with informal firms to benefit from their contribution to growth. |
| Keywords: | Informality/unregistered firms, innovation, institutions, Eastern European and Central Asian countries |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/037&r=ent |
| By: | Anna-Katharina Lenz; Martin Valdivia |
| Abstract: | Do behavioral biases and the distortions generated by the presence of organized crime limit microentrepreneurs’ adoption of growth-oriented business practices? We explore this question in a field experiment with informal microentrepreneurs in which we provide informational visits and text messages about the advantages and convenience of a formalization program. All microentrepreneurs operated in Complexo Maré, a Favela in Rio de Janeiro, Brazil, where an important contextual factor was the presence of organized crime groups. After a recent state intervention, violence had increased in the intervened territories. Our average results suggest that while informative in-person visits do increase the knowledge about the formalization program and even the interest in formalizing, complementing the intervention with reminding messages is needed to increase business formalization. That is, treatment groups that received either information sessions or text messages show no effect, while those receiving both treatments show an increase in formalization by 8.5 percentage points. We also find, however, that these effects of the nudging intervention can be cancelled out by the distortions imposed by organized crime, in particular, by the mobility restrictions they often use to control their territories. We interpret these results as evidence in support of the importance of behavioral interventions such as reminder messages, to overcome limited attention and procrastination biases by microentrepreneurs, but also as an indication of the impacts that organized crime may have on adopting good business practices. |
| Keywords: | Entrepreneurship, Behavioral Biases, Formalization, Nudges, Attention Allocation, Development |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:194&r=ent |
| By: | Natália Barbosa; Ana Paula Faria (Department of Economics and NIPE, University of Minho; Department of Economics and NIPE, University of Minho,) |
| Abstract: | Productivity disparities in the European regions tend to persist. In order to understand the underlying sources of this phenomenon we assess the importance of science and regional innovation modes on firms’ productivity growth on a sample of 150, 712 firms across 161 NUTSII European regions, over the period 2012-2017. We find that science is a major source of firms’ productivity growth, and it has been particularly important to firms located in Southern Europe and, to less extent, in Eastern EU regions, indicating that a science-push convergence process is at work in the EU peripheral regions. Our findings also show that the fast-growing productivity firms are those who benefit more from external knowledge and innovation. Growth by imitation seems to be a viable strategy restricted to the slow-growing productivity firms. These results help to conciliate contentious evidence regarding firms’ benefits from spillovers, namely from scientific knowledge. |
| Keywords: | Territorial innovation patterns, Firm productivity, Europe, Quantile regression |
| JEL: | O33 O38 L25 R11 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0175&r=ent |
| By: | Munawaroh, Isvana |
| Abstract: | The purpose of writing this article is to find out the implementation of the entrepreneurship program market day as a means of building character in SD N Gayam 5 Sukoharjo. Character education that must be taught in schools and entrepreneurship education which is also important for students' provision is a combination of activities that can instill character values in students. This research is a type of qualitative descriptive research using observation and documentation methods. The results of this study are that each stage of the activity teaches character education to students. The characters that are built are the characters of discipline, cooperation, responsibility, independence, honesty, creativity, and self-confidence. In cultivating this character the role of the teacher is needed to direct and guide students. In its application, planting character with activities market day there are still obstacles that become challenges for students and become evaluations for activities market day furthermore. |
| Date: | 2023–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rvzs2&r=ent |
| By: | Guillaume Denos (IAE Angers - Institut d'Administration des Entreprises (IAE) - Angers - UA - Université d'Angers, GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Pauline Olivier-Morinière |
| Abstract: | Cette communication repose sur le retour d'expérience croisé d'un chercheur et d'une porteuse de projet innovant en ESS faisant l'objet d'une recherche immersive depuis 2019. Nous partageons nos réflexions sur l'intérêt d'analyser et de s'engager dans ce type de projet en nous basant sur le cadre méthodologique de la recherche-action. Pour préciser les déclinaisons adaptées en recherche-action autour de nouveaux objets de l'ESS, nous revenons sur les tensions et difficultés rencontrées en considérant les regards d'acteur et de chercheur. |
| Keywords: | Recherche-action, ESS, entrepreneuriat, innovation sociale |
| Date: | 2023–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04130952&r=ent |