|
on Entrepreneurship |
| By: | Amoroso, Sara (DIW Berlin); Herrmann, Benedikt (European Commission); Kritikos, Alexander S. (DIW Berlin) |
| Abstract: | High growth firms (HGFs) are important for job creation and considered to be precursors of economic growth. We investigate how product- and labor-market regulations, as well as the quality of regional governments that implement these regulations, affect HGF development across European regions. Using data from Eurostat, OECD, WEF, and Gothenburg University, we show that both regulatory stringency and the quality of the regional government influence the regional shares of HGFs. Additionally, we find that the effect of labor- and product-market regulations ultimately depends on the quality of regional governments. The institutional quality has a moderating role in dening the effect of regulations on the regional shares of HGFs. Our findings contribute to the debate on the effects of regulations by showing that regulations are not, per se, "good, bad, and ugly", rather their impact depends on the efficiency of regional governments. Our paper offers important building blocks to develop tailored policy measures that may influence the development of HGFs in a region. |
| Keywords: | high growth firms, regulation, quality of governments, regional development |
| JEL: | H11 L25 L50 R11 R50 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16563&r=ent |
| By: | Sari Kerr; William Kerr |
| Abstract: | We generated a standardized sample of recently founded, non-public employer firms to evaluate the data consistency of key owner characteristics between the Survey of Business Owners (2007, 2012), Annual Survey of Entrepreneurs (2014-2016), and Annual Business Survey (2017-2019). We also contrast the trends found in this analysis to some of the Census Bureau press releases pertaining to a broader population of firms and owners, to the ACS IPUMS data on self-employed individuals in incorporated businesses, as well as our own previous disclosures using the LEHD first year top-3 earners of the founding team. We find some data consistency issues across the three surveys (SBO, ASE, ABS) that sometimes happen around changes in the way certain questions are posed. Other patterns suggest that there may have been differences in the type of respondents reached by the three surveys. We also provide some suggestions aimed at making the restricted access micro data and the public use data products more accessible to a wider range of researchers and other potential users. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:cen:tnotes:23-20&r=ent |
| By: | Akcigit, Ufuk; Alp, Harun; Diegmann, André; Serrano-Velarde, Nicolas |
| Abstract: | This paper investigates a unique policy designed to maintain employment during the privatization of East German firms after the fall of the Iron Curtain. The policy required new owners of the firms to commit to employment targets, with penalties for non-compliance. Using a dynamic model, we highlight three channels through which employment targets impact firms: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and instrumental variable approach, confirms these findings. We estimate a 22% points higher annual employment growth rate, a 14% points higher annual productivity growth, and a 3.6% points higher probability of exit for firms with binding employment targets. Our calibrated model further demonstrates that without these targets, aggregate employment would have been 15% lower after 10 years. Additionally, an alternative policy of productivity investment subsidies proved costly and less effective in the short term. |
| Keywords: | industrial policy, privatizations, productivity, size-dependent regulations |
| JEL: | D22 D24 J08 L25 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:279550&r=ent |
| By: | Gianluca Biggi; Andrea Mina; Federico Tamagni |
| Abstract: | Using a firm-level dataset from the Spanish Technological Innovation Panel (2003-2016), this study explores the characteristics of environmentally innovative firms and quantifies the effects of pursuing different types of environmental innovation strategies (resource-saving, pollution-reducing, and regulation-driven innovations) on sales, employment, and productivity dynamics. The results indicate, first, that environmental innovations tend to be highly correlated with firms’ technological capabilities, although to varying degrees across types of environmental innovation, whereas structural characteristics are less significant. Second, we observe heterogeneous effects of different types of environmental innovation on performance outcomes. We find no evidence that any type of environmental innovation fosters sales growth while pollution-reducing and regulation-driven innovations boost employment growth. Moreover, both resource-saving and pollution-reducing innovations bring about productivity advantage. |
| Keywords: | Environmental Innovation; Green Investments, Resource-saving, Pollution-reduction, Envi- ronmental compliance; Firm performance. |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/42&r=ent |
| By: | Colin Wessendorf; Nils Grashof |
| Abstract: | This study analyses the influence of Key Enabling Technologies (KETs) on radical innovation at the firm-level in 27 EU countries. KETs are a group of six technologies that are considered to be promising for Europe’s industrial competitiveness and innovativeness because they are horizontal and widely combinable, representing properties of General Purpose Technologies. We test this by investigating whether KET knowledge promotes the emergence of radical innovation in firms and whether regional specialization in KETs can moderate this relationship. Based on a unique firm-level database, our results show that KETs generally facilitate the emegence of radical innovation and that firms lacking KET knowledge in particular can benefit from being located in regions specialised in KETs. However, when focusing on the six individual KETs, the results get markedly heterogeneous and point to differences in the influence of engineering-oriented and science-based KETs. Our results therefore call for tailored, KET-specific, approaches – both in research and policy. |
| Keywords: | Radical Innovation, Recombinant Novelty, Knowledge Creation, General Purpose Technologies, Key Enabling Technologies, Firm-Level |
| JEL: | L25 O31 O33 R10 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:atv:wpaper:2303&r=ent |
| By: | Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This study examines how the starting of business by females can be promoted by assessing critical levels of microfinance institutions (MFIs) penetration that policy makers must endeavour to maintain and/or attain in order for female unemployment not to represent a constraint in the doing of business. A constraint in doing business is understood in terms of the procedure that a woman has to go through in order to start a business. The focus of the study is on 44 countries in Sub-Saharan Africa (SSA) for the period 2004-2018, while the empirical evidence is based on interactive quantile regressions. The following findings are established. The validity of tested hypotheses is exclusively apparent in the lowest and highest quantiles of the conditional distribution of the procedure women have to go through to start a business. MFI penetration levels needed to reverse the unfavorable incidence of female unemployment in doing business are provided. These are minimum MFIs penetration thresholds that are required in order for female unemployment not to negatively affect the procedure that a woman should go through to start a business. The study complements the extant literature by assessing critical microfinance penetration levels that are needed to promote female doing of business, contingent on existing levels of female doing of business. |
| Keywords: | Africa; Microfinance; Gender; Inclusive development |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/068&r=ent |
| By: | Asani Sarkar |
| Abstract: | In this post, we follow up on the previous Liberty Street Economics post in this series by studying other impacts of extreme weather on the real sector. Data from the Federal Reserve’s Small Business Credit Survey (SBCS) shed light on how small businesses in the Second District are impacted by natural disasters (such as hurricanes, floods, wildfires, droughts, and winter storms). Among our findings are that increasing shares of small business firms in the region sustain losses from natural disasters, with minority-owned firms suffering losses at a disproportionately higher rate than white-owned firms. For many minority-owned firms, these losses make up a larger portion of their total revenues. In a companion post, we will explore the post-disaster recovery of small firms in the Second District: how long do they remain closed and what are their sources of disaster relief? |
| Keywords: | climate; racial disparities; inequality; Second District |
| JEL: | D63 Q54 R10 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97312&r=ent |
| By: | Cherkashin, Pavel (Mindrock Inc) |
| Abstract: | This paper presents an in-depth exploration of the innovative approach adopted by the Mindrock Millennium Trust in the realm of venture capital, setting a new precedent in the industry. We aim to provide a comprehensive overview of the paper’s objectives, delving into the intricacies and distinctive characteristics of the Trust. The Mindrock Millennium Trust distinguishes itself through its unique integration of quantum mechanics principles and smart contract technology, redefining traditional venture capital methodologies. This fusion offers a groundbreaking perspective on investment strategies and operational dynamics, reshaping how venture capital operates in a technology-driven era. Central to our discussion is the concept of the quantum constitution, a novel framework within the venture capital sector. This paper elucidates how the quantum constitution underpins the Trust’s operations, influencing decision-making processes, investment strategies, and regulatory compliance. The significance of this constitution extends beyond mere operational guidelines, representing a pioneering approach in navigating the complexities and potentials of modern venture capital. |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:vsy6q&r=ent |
| By: | Gutierrez-Lythgoe, Antonio |
| Abstract: | This study aims to analyse disparities in entrepreneurship across the United States, taking into account the diverse socioeconomic contexts of each county and emphasizing the role of social capital structures and their connections to nearby regions. To conduct this research, we utilize data on Non-farm Proprietorships (NFP) as an indicator of entrepreneurial activity, sourced from the US Bureau of Economic Analysis, in conjunction with socioeconomic and demographic variables from the US Census Bureau, and social network data from Facebook via the Social Capital Atlas project. Employing spatial econometric techniques, we examine spatial dependence patterns and reveal a statistically significant and positive spatial autocorrelation. Particularly, we identify statistically significant correlations between the proportion of connections among different socioeconomic groups and entrepreneurial activity, as well as negative correlations between the Social Cohesion Index and non-farm proprietorships. These findings corroborate the significance of "weak ties" in social networks, as theorised by Granovetter, and underscore how associations with individuals of higher socioeconomic status could invigorate entrepreneurial initiatives, carrying notable practical implications for entrepreneurship promotion and policy development. |
| Keywords: | Non-farm proprietorship; Social Capital; Facebook data; Spatial Econometrics |
| JEL: | C21 L26 R11 |
| Date: | 2023–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119068&r=ent |