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on Entrepreneurship |
| By: | Brunetti, Marianna (University of Rome Tor Vergata); Zaiceva, Anzelika (University of Modena and Reggio Emilia) |
| Abstract: | Using a unique Italian dataset covering the period 2004-2020, we assess the immigrant-native gap in entrepreneurship and investigate channels behind it. The data allows us to account for many observable characteristics as well as for risk aversion, which is usually not observed, yet crucial for the self-employment decision. Unlike most of the existing empirical literature, we find that immigrants in Italy are less likely to be self-employed. The negative gap is confirmed when propensity score matching methodology is used. Heterogeneity analysis suggests that the negative gap is larger for men, for economic migrants and those coming from Sub-Saharan Africa, while it is not significant for mixed immigrant-native couples, for highly skilled, and for migrants from Asia and Oceania. The largest gap is found for those working in the agricultural sector. Regarding additional channels, we explore the role of access to credit, including the informal one, and whether migrants are credit constrained, as well as the importance of migrant networks, easiness of doing business, and expenditures on services for migrants. Despite finding significant correlations between self-employment and some of these factors, none of them seem to decrease the magnitude of the negative gap. |
| Keywords: | immigrants, self-employment, gender, intermarriage, propensity score matching |
| JEL: | F22 J21 O15 J15 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16314&r=ent |
| By: | Bustamante, Maria Cecilia; Zucchi, Francesca |
| Abstract: | We develop a model to examine how discount rates affect the nature and composition of innovation within an industry. Challenging conventional wisdom, we show that higher discount rates do not discourage firm innovation when accounting for the industry equilibrium. Higher discount rates deter fresh entry—effectively acting as entry barriers—but encourage innovation through the intensive margin, which can lead to a higher industry innovation rate on net. Simultaneously, high discount rates foster explorative over exploitative innovation. The model rationalizes observed patterns of innovation cyclicality, and predicts that lower entry in downturns hedges innovating incumbents against higher discount rates. JEL Classification: G31, G12, O31 |
| Keywords: | creative destruction, risk premia, time-varying discount rates, Vertical and horizontal innovation |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232835&r=ent |
| By: | FUKUGAWA Nobuya |
| Abstract: | Growth of knowledge-based economies hinges on the systematic application of science, which makes the efficient commercialization of university knowledge critical. Economic theory identifies determinants of the commercialization modes of science (license and entrepreneurship), such as search costs for licensees, post-license development costs, intellectual property ownership, commercialization skills of firms, and the efficiency of innovation intermediaries. Based on this theoretical framework, this study analyzes comprehensive university-level panel data (2018–2021) and presents the first evidence of the factor that most influences the commercialization modes of science. Estimation results reveal that universities that intensively engage in basic research create more university spinoffs. Basic research is conducive to radical innovation which tends to be commercialized by entrepreneurial firms that do not suffer from the replacement effect. Therefore, encouraging a broad range of universities to engage in basic research facilitates academic entrepreneurship, which should have positive implications on economic growth. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23053&r=ent |
| By: | Ruochen Dai; Dilip Mookherjee; Kaivan Munshi; Xiaobo Zhang |
| Abstract: | This research examines the determinants of entrepreneurship in the initial transition from agriculture to industrial production and the subsequent transition to higher value exporting in China. Using data covering the universe of registered firms over the 1994-2009 period, we find that individuals born in rural counties with higher agricultural productivity and population density had a greater propensity to enter domestic production in the first transition, but that this association was reversed in the second transition to exporting. This is despite the fact that revenues (and productivity) were increasing more steeply over time for firms drawn from denser birth counties in both activities. The model that we develop to reconcile these facts incorporates a productivity enhancing role for hometown (birth county) networks. We provide causal evidence, using shift-share instruments, that these networks of firms were active and that more densely populated rural counties gave rise to networks that were more effective at increasing the revenues of their members, both in domestic production and exporting. While this generated faster transition in the first stage, the incumbent (more successful) domestic networks drawn from denser counties created a disincentive to subsequently enter exporting. Our analysis identifies a novel dynamic inefficiency that could arise in any developing economy where (overlapping) networks are active. |
| JEL: | O11 O12 O14 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31477&r=ent |
| By: | Krämer-Eis, Helmut; Block, Jörn; Botsari, Antonia; Lang, Frank; Lorenzen, Solvej; Diegel, Walter |
| Abstract: | The EIF VC Survey and the EIF Private Equity Mid-Market Survey (the largest combined regular survey exercises among General Partners on a pan-European level) provide an opportunity to retrieve unique market insights. This publication is based on the results of the 2022 waves of these two surveys and examines how the Russian offensive war against Ukraine that started in 2022 affected VC and PE mid-market fund managers and their portfolio companies. The results show that the war - and the related consequences - had a strong impact on the two investor types and on entrepreneurial finance in Europe, inter alia regarding the challenges faced, investment strategies as well as LPs' reaction to the changed macroeconomic and geopolitical environment. The results have implications for VC and PE investors and for policy-makers due to the importance of the entrepreneurial finance sector for supporting entrepreneurship and innovation in Europe. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eifwps:202389&r=ent |
| By: | M. P. Ram Mohan; Muskaan Wadhwa |
| Abstract: | Insolvency and bankruptcy have always attracted a measure of stigma. The negative attitude towards insolvency emerged due to the historically harsh treatment of bankrupts and the perception of bankruptcy as a breach of a sacred relationship between the debtor and creditor. Majority of the existing legal scholarship studying the bankruptcy stigma focuses on personal insolvencies, while its influence on corporate insolvencies has largely been neglected. This paper attempts to fill this gap by examining the impact and manifestations of stigma in the context of corporate insolvency. The paper does so by contrasting the corporate insolvency schemes of the United States and the United Kingdom. It argues that while both jurisdictions prioritise the rehabilitation of corporate debtors, there is a divergence in the methodologies across the Atlantic due to the varied historical, cultural, and economic attitudes towards business failures. With this background, the paper explores bankruptcy stigma in the Indian context and shows how certain provisions of the Insolvency and Bankruptcy Code, 2016 seem to reinforce and perpetuate the stigma against incumbent management and promoters of corporate debtors. The paper argues that there is a need to ameliorate the stigma associated with corporate insolvency for the successful rescue and rehabilitation of distressed corporations and for promoting entrepreneurship, innovation, and economic growth in the country. |
| Date: | 2023–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14701&r=ent |
| By: | Al Said Ahmat (REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne) |
| Abstract: | L'article traite la manière dont les plateformes mobiles banking participent à la transformation de l'économie informelle dans les pays pauvres. L'objectif est de comprendre comment ces plateformes incitent les entrepreneurs informels à s'affilier aux dispositifs transactionnels afin de devenir des entreprises réelles et ainsi créer de la valeur pour leurs entreprises et pour l'économie du pays en général. A partir du cas de l'économie informelle au Tchad, nous montrons comment les petites entreprises se transforment via l'utilisation du mobile banking. |
| Keywords: | Économie informelle, plateforme mobile banking, entreprise locale., Économie informelle plateforme mobile banking entreprise locale, entreprise locale |
| Date: | 2023–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04157984&r=ent |
| By: | NAKAMURA Ryohei |
| Abstract: | The growth of regional economies requires an economic metabolism in which high-productivity firms newly enter the market, while low-productivity firms exit the market, resulting in a shift in labor and other production factors. A "revolving door" economy is an economy in which firms that enter the market exist only for a short time, withdraw and enter the market repeatedly, and new entrants do not contribute to productivity improvement. This means that if new entrants are not sufficiently innovative compared to incumbents, even if the rate of entry into business rises, they will simply be replaced by companies whose productivity level is not significantly higher, and this will not lead to job creation or improved productivity. A contrasting concept is the replacement of companies by Schumpeter's “creative destruction.†The high level of technology and productivity of new firms entering the market drives inefficient incumbents out of the market. Looking at the statistics, there is a tendency for large cities to have both higher business entry and exit rates, but the difference between the entry and exit rates is greater in metropolitan areas. Although it depends on the regional characteristics, location competitiveness is generally higher in metropolitan areas, and there is a tendency for the turnover rate to be comparatively higher or the survival period to be shorter. Before and after regional revitalization, we will examine whether or not there is a departure from the revolving door economy by industry and region, using economic census and TSR (Tokyo Shoko Research) data. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:23015&r=ent |
| By: | NAKAMURA Ryohei |
| Abstract: | The growth of regional economies requires an economic metabolism in which high-productivity firms newly enter the market, while low-productivity firms exit the market, resulting in a shift in labor and other production factors. A "revolving door" economy is an economy in which firms that enter the market exist only for a short time, withdraw and enter the market repeatedly, and new entrants do not contribute to productivity improvement. This means that if new entrants are not sufficiently innovative compared to incumbents, even if the rate of entry into business rises, they will simply be replaced by companies whose productivity level is not significantly higher, and this will not lead to job creation or improved productivity. A contrasting concept is the replacement of companies by Schumpeter's “creative destruction.†The high level of technology and productivity of new firms entering the market drives inefficient incumbents out of the market. Looking at the statistics, there is a tendency for large cities to have both higher business entry and exit rates, but the difference between the entry and exit rates is greater in metropolitan areas. Although it depends on the regional characteristics, location competitiveness is generally higher in metropolitan areas, and there is a tendency for the turnover rate to be comparatively higher or the survival period to be shorter. Before and after regional revitalization, we will examine whether or not there is a departure from the revolving door economy by industry and region, using economic census and TSR (Tokyo Shoko Research) data. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:23014&r=ent |