|
on Entrepreneurship |
| By: | Josh Lerner; Jinlin Li; Tong Liu |
| Abstract: | This paper studies how investing in venture capital (VC) affects the entrepreneurial outcomes of individual limited partners (LPs). Using comprehensive administrative data on entrepreneurial activities and VC fundraising and investments in China, we first document that individual LPs, on average, contribute about 50% of the capital of each fund in which they participate, and over 50% of them are entrepreneurs. We then exploit an identification strategy by comparing the entrepreneurial outcomes of individual LPs in funds that eventually launched with those in funds that failed to launch. The fraction of committed capital from corporate LPs in industries that subsequently encounter poor returns is used as an instrument for funds’ launch failures. We find that after investing in a successfully launched VC fund, individual LPs create significantly more ventures than do LPs in funds which failed to launch. These new ventures tend to be high-tech firms and file more patents than do the LPs’ prior ventures. We find evidence consistent with venture investments being a channel through which individual LPs learn. |
| JEL: | D83 G23 G24 L25 L26 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31897&r=ent |
| By: | Mircea Epure; Victor Martin-Sanchez; Sebastian Aparicio; David Urbano |
| Abstract: | We argue that the positive relationship between pro-market institutions and entrepreneurial growth aspirations is dampened for individuals with general human capital (higher education), but augmented for those with specific human capital (experience in the marketplace). However, during a crisis, the differential effect of pro-market institutions on growth aspirations manifests only for entrepreneurs with specific human capital, with stronger effects than in good economic times. We run our empirical analysis on a dataset of individual- and country-level characteristics during 2005– 2020, thus exploiting variation from the Global Financial Crisis and the Covid-19 pandemic. We confirm our predictions and show stronger results for early stage (compared to nascent) entrepreneurs, and potential complementarities between human capital types. Altogether, our work paves the way to institutional adaptive policymaking. |
| Keywords: | pro-market institutions, human capital, growth aspirations, entrepreneurship, crisis |
| JEL: | L26 M13 I25 J24 K2 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1414&r=ent |
| By: | Kogler, Michael; Keuschnigg, Christian; Matt, Johannes |
| JEL: | E23 E44 G21 O4 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277586&r=ent |
| By: | Alfonso Expósito ((University of Málaga, Spain). ORCID number: 0000-0002-9248-4879); Juan A. Amparo Sanchis-Llopis ((University of Valencia and ERICES, Spain). ORCID number: 0000-0002-0872-7859); Juan A. Juan A. Sanchis-Llopis ((University of Valencia and ERICES, Spain). ORCID number: 0000-0001-9664-4668) |
| Abstract: | This study explores whether there are significant differences between female- and male-led businesses in terms of the performance results they obtain from innovating. We use a sample of 1, 376 Spanish small and medium enterprises (SMEs) to analyze the impact of entrepreneur gender on business performance considering the mediating effect of innovations, that is, the possibility that gender indirectly influences business performance by affecting the introduction of innovations. Using econometric techniques, we estimate discrete choice models to explore the relationship among gender, innovations and business’ performance. Our analysis is multidimensional in that we consider two types of performance indicators, financial and operational, and three types of innovations: product, process and organisational innovations. Our empirical findings show that, after controlling for other entrepreneurial and business characteristics, menled SMEs are more likely to obtain better performance from their innovations, and in particular, from their higher propensity to introduce process innovations, as compared to women-led SMEs. We extend existing empirical literature in the gender and entrepreneur research fields regarding the role of entrepreneur gender in the innovation-performance relationship, and contribute to the understanding of the role of gender in SMEs performance. Our study suggests the need to incorporate a gender perspective in those policies dealing with enhancing SMEs innovativeness and performance. |
| Keywords: | Gender of entrepreneur; small and medium-enterprises; innovations; financial performance; operational performance; bivariate probit model. |
| JEL: | C35 J16 F14 M21 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:2308&r=ent |
| By: | Laatsit, Mart (CIRCLE, Lund University); Lindholm-Dahlstrand, Åsa (CIRCLE, Lund University); Nilsson, Magnus (CIRCLE, Lund University) |
| Abstract: | A new generation of innovation policies has placed renewed attention on understanding the innovation processes taking place on and affecting the system level. On one hand, there is a growing demand for policy instruments addressing the need for system change. On the other hand, there is still a lack of understanding of how innovation policy instruments contribute to a system-level impact. We address this gap by taking a programme perspective and proposing an analytical framework for assessing three types of effects: first-order, second-order, and system-level. Our approach is inspired by the functions of technological innovation system literature (TIS). We apply the analytical framework to the analysis of an innovative entrepreneurship instrument, the Swedish Innovation Agency VINNOVA’s Innovative SME programme. We find that the public support programmes contributed significantly to SMEs’ ability to influence system functions. Based on the findings, we argue that the analysis of innovation policy programmes should move beyond a narrow assessment of direct effects and consider more the second-order and system-level effects. |
| Keywords: | innovation policy; Sweden; public funding |
| JEL: | O33 O38 |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2023_012&r=ent |
| By: | Keraga, Mezid N. (Addis Ababa University); Stephan, Andreas (Linnaeus University) |
| Abstract: | This paper provides novel evidence on the question of whether innovation expands or reduces employment using firm-level data from the World Bank Enterprise Survey (ES) for six African economies. The results of the difference-in-differences estimations combined with propensity score matching confirm that both product and process innovations significantly expand job opportunities in Africa. In addition, the findings show significant intra-industry innovation spillover effects on employment. In sum, this study supports the view that innovation enhances employment in the analyzed African economies. |
| Keywords: | Innovation; Employment; Sub-Saharan; Spillover effects; DID; Matching approach |
| JEL: | J20 O30 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0494&r=ent |