nep-ent New Economics Papers
on Entrepreneurship
Issue of 2023‒10‒30
thirteen papers chosen by
Marcus Dejardin, Université de Namur

  1. A systematic review of performance measurement systems and their relevance to social enterprises By Cosa, Marcello; Urban, Boris
  2. Bottom-up Policies Trump Top-down Missions By Henrekson, Magnus; Stenkula, Mikael
  3. Entrepreneurship as Religion: The Sacred Cosmos of Entrepreneurial Capitalism By Weiss, Tim
  4. Self-Employment Within the Firm By Vittorio Bassi; Jung Hyuk Lee; Alessandra Peter; Tommaso Porzio; Ritwika Sen; Esau Tugume
  5. Does Economic Freedom Moderate Perceived Corruption for Firms in India? By Dutta, Nabamita; Kar, Saibal; Stivers, Adam
  6. Innovation During Challenging Times By Cascaldi-Garcia, Danilo; Vukoti, Marija; Zubairy, Sarah
  7. The Effect of the Covid-19 Pandemic on the Innovation Process of Small and Medium-sized Regional Firms By Shigeno, Hidenori; Matsuzaki, Taisuke; Ueki, Yasushi; Tsuji, Masatsugu
  8. The elusive impact of R&D grants on firm productivity By Fernando Alexandre; Diogo Ferreira; Sandro Mendonça; Miguel Portela
  9. The Causal Impact of Covid-19 Government-backed Loans on MSMEs Liquidity and Earnings By Cerda, Maikol; Gertler, Paul; Higgins, Sean; Montoya, Ana María; Parrado, Eric; Undurraga, Raimundo
  10. Bringing Technology to Market: National Heart, Lung, and Blood Institute SBIR Phase IIB Projects By Nienow, Sara; Leonchuk, Olena; O'Connor, Alan; Link, Albert
  11. Enhancing the Knowledge Economy: A Cross-Country Study of Knowledge Creation By Moid, Md Zubab Ibne; Buaka, Emefa; Link, Albert
  12. Annual Survey of Micro, Small, and Medium Enterprises (MSMEs) In India: Leveraging E-commerce for the Growth of MSMEs By Tanu Goyal; Radhicka Kapoor
  13. Branding für Start-Ups: Ein Praxisleitfaden By Keppler, Lea

  1. By: Cosa, Marcello; Urban, Boris
    Abstract: Social enterprises (SEs) aim to optimise social value and financial performance, posing unique challenges for performance measurement. While performance measurement systems (PMSs) have been extensively studied in for-profit firms, they have not been widely taken up in SEs, potentially reflecting perceived difficulties in balancing social and financial goals. To better understand the evolution of the adoption, use, and effectiveness of PMSs in SEs, we conducted a systematic review encompassing 24 papers identified through comprehensive searches in Web of Science, Scopus, and EBSCO. Through thematic analysis, we classified the scholarly research into three key themes: ‘adoption’, ‘usability’, and ‘effectiveness’. Overall, our study confirmed that PMS uptake in SEs has been limited. We identified multiple barriers, but among the most prominent reasons were a lack of sufficient financial or human resources to implement them and cultural barriers whereby social entrepreneurs seek to distance themselves from seemingly traditional business practices. Future research should focus on practical applications of these tools in addressing specific social entrepreneurship sectors’ challenges.
    Date: 2023–07–19
  2. By: Henrekson, Magnus (Research Institute of Industrial Economics); Stenkula, Mikael (IFN - Research Institute of Industrial Economics)
    Abstract: Mission-oriented innovation policies are becoming increasingly popular among policymakers and scholars. We maintain that these policies are based on an overly mechanistic view of innovation and economic growth, suggesting that a more bottom-up approach is called for. By invoking an entrepreneurial ecosystem perspective, we point out that innovative entrepreneurship requires many other actors—besides the entrepreneur—whose skills and abilities are necessary to realize an entrepreneurial project. When mission-oriented policies play a large role in the economy, connections between actors in the ecosystem risk becoming distorted. A functioning and well-balanced entrepreneurial ecosystem requires instead an institutional framework that levels the playing field for potential entrepreneurs and encourages productive entrepreneurship. To promote this kind of system, we discuss in more detail eight key areas where appropriate horizontal or bottom-up policy measures can foster innovation and, in the end, the welfare-enhancing productive entrepreneurship policymakers and scholars strive for.
    Keywords: collaborative innovation bloc, entrepreneurial ecosystem, entrepreneurship policy, institutions, public choice
    JEL: H50 L26 O31 P16
    Date: 2023–09
  3. By: Weiss, Tim
    Abstract: Modern-day entrepreneurship ideology prominently features religious characteristics. When viewed through the analytical foil of religion, the sacred cosmos of entrepreneurial capitalism comes into relief, endowing entrepreneurship with a meaning structure of mysterious, awesome, and seductive qualities.
    Date: 2023–06–19
  4. By: Vittorio Bassi; Jung Hyuk Lee; Alessandra Peter; Tommaso Porzio; Ritwika Sen; Esau Tugume
    Abstract: We collect time-use data for entrepreneurs and their workers in over 1, 000 manufacturing firms in urban Uganda. We document limited labor specialization within the firm for establishments of all sizes and argue that this is likely due to the prevalence of product customization. We then develop a general equilibrium model of task assignment within the firm, estimate it with our data, and find large barriers to labor specialization. This setting is close, in terms of aggregate productivity and firm scale, to an extreme benchmark in which each firm is just a collection of self-employed individuals sharing a production space. Given how firms are organized internally, the benefits from alleviating other frictions that constrain firm growth are muted: most African firms resemble artisanal workshops whose business model is not easily scalable.
    JEL: L23 L25 O11 O14 O17
    Date: 2023–09
  5. By: Dutta, Nabamita (University of Wisconsin, La Crosse); Kar, Saibal (Centre for Studies in Social Sciences, Calcutta); Stivers, Adam (University of Wisconsin, La Crosse)
    Abstract: Available wisdom suggests that a negative relationship prevails between economic freedom and perceived corruption among firms. However, the relationship is far from linear and a number of complex interactions make it fairly nuanced. We show that greater competition may accentuate the problem of corruption. This is contrary to the general observation that regulations create conditions for corrupt practices. This study uses a broad-based survey for India to examine the role of economic freedom in influencing perceived corruption. The firm-level data helps to explore the relationship between economic freedom across Indian states and the perceived corruption in the formal sector. A statistically significant negative relationship as we obtain implies a fall in perceived corruption as a function of rise in contemporaneous and lagged economic freedom. These results hold when we design matching models and add a number of covariates with potentially opposite impact overall. The empirical structure clearly highlights the process of identification and shows that small and young firms and those with sole ownership perceive greater benefits from higher economic freedom. However as claimed above, older firms perceive higher corruption when economic freedom is higher. This lends support to the idea that competition facilitated by economic freedom can increase rent seeking behavior. Our study contributes to the literature by emphasizing that the relationship between economic freedom and corruption in India is layered, with firm characteristics playing a crucial role.
    Keywords: perceived corruption, economic freedom, firm size, ownership, India
    JEL: D73 E26 J54 L11 P37
    Date: 2023–09
  6. By: Cascaldi-Garcia, Danilo (Federal Reserve Board); Vukoti, Marija (University of Warwick); Zubairy, Sarah (Texas A&M University and NBER)
    Abstract: When is receiving positive news regarding future technological advancements most impactful on the economy: during recessions or economic booms? A recession might represent an opportune time for investing in relatively cheaper, productivityenhancing activities. However, tighter financial constraints during recessions might hinder the ability to secure funds for these activities. We explore this dichotomy by exploiting patent-based innovation shocks, which are constructed using changes in stock market valuations of firms that obtain patent grants. We find that aggregate patent-based innovation shocks have a greater impact on the economy during recessions, leading to a more significant increase in private investment. Additionally, our exploration of firm-level data uncovers supporting evidence that firms tend to boost their capital investment and R&D expenditures in response to these innovation shocks, particularly during recessions. The financial constraints of firms play a crucial role, with capital investments by firms with low default risk driving the larger impact observed during recessions.
    Keywords: Innovation shocks ; Patent-Based Innovation Index ; Financial Frictions ; Firms heterogeneity ; State dependency
    Date: 2023
  7. By: Shigeno, Hidenori; Matsuzaki, Taisuke; Ueki, Yasushi; Tsuji, Masatsugu
    Abstract: The objective of this study is to analyze how the innovation process has been affected by Covid-19 pandemic by focusing on SMEs. The RQs are: RQ1: Whether there is a difference in the innovation of SMEs between before and during Covid-19 RQ2: If any, how Covid-19 affects the innovation process This study is based on two surveys in February 2014 and 2022 to the same 1324 SMEs and 87 which responded to both surveys are employed for analysis. Measures include (i) the ratio of R&D investment to sales, (ii) open innovation, (iii) sources of ideas, (iv) problem solving ability, (v) human resource development, (vi) business development strategies. In the second questionnaire, the level of the effect of Covid-19 on variables are asked for the five Likert scale. The method used in this study is PSM-DID, which is the combination DID and PSM and to cope with biases such as sample selection and time trend. For the construction of the model, in-depth field surveys were conducted, which leads to hypothesis such that face-to-face communications were impeded between partners of transactions by the COVID-19 pandemic. This hypothesis and RQs are demonstrated by PSM-DID.
    Keywords: PSM-DID, measures of innovation, open innovation, R&D, open innovation, face-to-face communications
    Date: 2023
  8. By: Fernando Alexandre (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Diogo Ferreira (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Sandro Mendonça (Business Research Unit (BRU-IUL), University Institute of Lisbon; Research Unit on Complexity and Economics (UECE), Research in Economics and Mathematics (REM), Lisbon School of Economics & Management (ISEG), University of Lisbon; Science Policy Research Unit (SPRU), University of Sussex.); Miguel Portela (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; IZA, Bonn)
    Abstract: This paper evaluates the effectiveness of R&D subsidies, provided by the European Regional Development Funds, on firms’ productivity. Using detailed longitudinal firm-level data covering the period 2007-2019, we employ state of the art differences-in-differences estimators to evaluate the impacts of R&D grants. Positive causal effects on gross value added and labour productivity are discernible for micro- and small-sized firms participating in co-promotion but not in individual projects. However, these effects seem to be elusive. No evidence of a positive effect of these grants on firm performance for medium- and large-sized firms or for individual R&D projects is found. This investigation contributes to a more comprehensive understanding of the relative effectiveness of productivity enhancement programs.
    Keywords: R&D grants; productivity; European funds; co-promotion
    JEL: D22 H25 L25 L52
    Date: 2023
  9. By: Cerda, Maikol; Gertler, Paul; Higgins, Sean; Montoya, Ana María; Parrado, Eric; Undurraga, Raimundo
    Abstract: We conducted two randomized controlled trials (RCTs) to evaluate the impact of government-guaranteed loans offered by the Chilean and Colombian governments. The public funds of these programs greatly expanded following the start of the Covid-19 pandemic and offered loans to Micro, Small and Medium Enterprises to mitigate the negative impact of the shock. Through a collaboration with private banks, we launched two experiments which offered loans to a sub-set of the 10, 072 Chilean and 3, 079 Colombian small businesses that took part in our experiments. Most of these firms had previously applied for a loan during the pandemic--but prior to the RCTs--but were rejected by banks due to their risk analysis of the firms. With take-up rates of 27% and 29%, respectively, we find that Covid-19 loans had a significant positive impact on the total liquidity that treated MSMEs could access: total liquidity with the formal banking system increased by 15.7% (statistically significant at the 1% level). The results of our RCTs will inform Latin American governments concerning their strategies to support MSMEs via government-backed loan programs and will shape similar public policies in the future.
    Keywords: RCT;Government-guaranteed loans;COVID-19 pandemic;Eventstudy;Impact Evaluation
    JEL: J16 L26 P52
    Date: 2023–02
  10. By: Nienow, Sara (RTI International); Leonchuk, Olena (RTI International); O'Connor, Alan (RTI International); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The National Heart, Lung, and Blood Institute (NHLBI) is the fourth largest institute in the U.S. National Institutes of Health (NIH). Surprisingly, there is a conspicuous void of policy studies related to the research activities of NHLBI in comparison to NIH or to the National Cancer Institute. This paper investigates the likelihood that a business funded through NHLBI’s Small Business Innovation Research (SBIR) program will commercialize from its Phase IIB translational support. Commercialization is one performance metric that quantifies a policy dimension of the success of the funded SBIR project. Based on an empirical analysis of 61 Phase IIB projects, we find that the most significant covariate with the likelihood of commercialization is the growth in human capital within the business since the Phase IIB award.
    Keywords: NHLBI; Phase IIB projects; SBIR program; technology commercialization;
    JEL: H11 H51 O38
    Date: 2023–10–06
  11. By: Moid, Md Zubab Ibne (University of North Carolina at Greensboro, Department of Economics); Buaka, Emefa (University of North Carolina at Greensboro, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: We identify quantitatively, using cross-country data from the Global Innovation Index, a path through which R&D (research and development) operates to affect economic growth and development. The path we consider is one that relates to enhancing the knowledge economy. Specifically, we contribute to the literature through the quantification of the antecedents and consequences of newly created knowledge: R&D creation of new knowledge economic growth and development. And, we show statistically that the R&D creation of new knowledge relationship is enhanced when businesses collaborate with universities. Not only is this collaborative indirect relationship new to the knowledge creation literature, but also it is based on the estimation of a model specification that has not previously been considered.
    Keywords: Global Innovation Index; knowledge economy; R&D; business-university collaboration;
    JEL: O33 O47 O50
    Date: 2023–10–18
  12. By: Tanu Goyal (Indian Council for Research on International Economic Relations (ICRIER)); Radhicka Kapoor (Indian Council for Research on International Economic Relations (ICRIER))
    Abstract: The results of the survey suggest that MSMEs have witnessed significant gains by integrating with e-commerce platforms. Improved market access is the most widely reported benefit of integration. Therefore, it is unsurprising that a majority of integrated enterprises report their willingness to increase the share of e-commerce sales in their total sales in the future. It is important to highlight the fact that at present, the volume of sales made through e-commerce platforms account for a relatively smaller share of the firms’ total sales compared to those made through traditional routes. And therefore, there is significant scope for MSMEs to increase share of online sales in total sales. The survey also examines the use of digital payments among MSMEs and how integrating with e-commerce platforms impacts their ability to access finance. A majority of the surveyed MSMEs report using digital wallets and mobile payments as the most frequently used payment mode for doing business. On average, cash-based sales are found to be higher for non-integrated MSMEs compared to integrated firms. Further, the use of bank loans is found to be marginally higher among integrated firms compared to non-integrated firms.
    Keywords: MSMEs, E-Commerce, Digital Wallets, icrier
    Date: 2023–09
  13. By: Keppler, Lea
    Abstract: Das Ziel dieses Praxisleitfadens ist es Start Ups dabei zu unterstützen ihre Marke und deren Auftritt so zu gestalten, dass sich ihre Brand Awareness erhöht.
    Keywords: Branding, Leitfaden, Start-ups
    Date: 2023

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