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on Entrepreneurship |
| By: | Michael Fritsch; Alina Sorgner; Michael Wyrwich |
| Abstract: | We propose an extension of the standard occupational choice model to analyze the life satisfaction of senior entrepreneurs as compared to paid employees and particularly retirees in Germany. The analysis identifies income and health status as main factors that shape the relationship between occupational status and life satisfaction. Senior entrepreneurs enjoy higher levels of life satisfaction than retirees and senior paid employees. This higher life satisfaction is mainly due to their higher income. Physical and mental health play a crucial role in determining both an individual’s occupational status and their overall life satisfaction. We find that senior self-employed report to be healthier compared to other groups of elderly individuals. However, when controlling for health, retirees exhibit an even higher level of life satisfaction compared to their self-employed counterparts. Heterogeneity analysis of various types of senior entrepreneurs and senior paid employees confirms this general pattern. In addition, we find some evidence indicating that senior entrepreneurs may compromise their leisure time, a main asset of retired individuals. Implications for research, policy, and practitioners are discussed. |
| Keywords: | Senior entrepreneurship, health conditions, well‐being, life satisfaction, age |
| JEL: | L26 I31 J10 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1196&r=ent |
| By: | Catherine Laffineur (Université Côte d'Azur; GREDEG CNRS); Maria Minniti (Syracuse University, New-York); Benjamin Montmartin (SKEMA Business School) |
| Abstract: | Most individuals accumulate work experience before starting a venture. Does the knowledge gained from the worker’s occupation influential of the decision to become self-employed? Does it make a difference for the business? Data on the career history of individuals are used to identify whether being employed in an occupation requiring high managerial knowledge matter for the processes by which individuals move into and perform in all kinds of self-employment. We find that higher knowledge in management increases the likelihood to start a business and improves business performance. We also find that workers with higher knowledge in management perform better when they start an incorporated business. |
| Keywords: | Entrepreneurship, Self-Employment, Occupational Choice, Firm Performance |
| JEL: | J62 L25 L26 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2023-19&r=ent |
| By: | Michael Fritsch (Friedrich Schiller University Jena, Germany); Maria Greve (Utrecht University, The Netherlands, and Friedrich Schiller University Jena, Germany); Michael Wyrwich (University of Groningen, The Netherlands, and Friedrich Schiller University Jena, Germany) |
| Abstract: | We describe and analyze the long-term development of self-employment in German regions between 1895 and 2019. Based on rankings ("league tables") for the two years we identify those regions where the relative level of self-employment significantly increased ('leapfroggers'), and those where the level of self-employment as compared to other regions deteriorated ('plungers'). Germany is a particularly interesting case due to the turbulent history of the country over the 20th century that includes two lost World Wars, occupation by foreign armies, forty years of division into a capitalist and a socialist state, as well as reunification and shock transformation of the eastern part to a market economy. While there is some persistence of regional self-employment despite all the disruptive changes, we also find and discuss considerable changes of regional levels of entrepreneurial activity. |
| Keywords: | Entrepreneurship, self-employment, regional dynamics |
| JEL: | L26 R11 O52 |
| Date: | 2024–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-001&r=ent |
| By: | Inessa Love (University of Hawaii); Boris Nikolaev (Colorado State University); Chandra Dhakal (Royal Thimphu College, Bhutan) |
| Abstract: | We present new evidence on the well-being of women entrepreneurs using data from the World Values Survey for 80 countries. We find that in low- and middle-income countries, female entrepreneurs have lower well-being than male entrepreneurs, while in high-income countries, they have higher well-being. We further explore several macro and micro-level mechanisms-- institutional context, gender roles, and individual characteristics--that potentially moderate this relationship. We find that the gender gap in well-being is larger in countries with higher gender inequality, lower level of financial development, and stricter adherence to sexist gender roles. We also find that women entrepreneurs with lower education, more children, and risk-averse preferences are likely to report lower well-being. Our results suggest several policy mechanisms that can be used to enhance the well-being of women entrepreneurs. |
| Keywords: | well-being, women entrepreneurs, institutions, entrepreneurship |
| JEL: | M13 I31 J24 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202303&r=ent |
| By: | Inessa Love (University of Hawaii); Eliana Carranza (World Bank); Chandra Dhakal (Royal Thimphu College, Bhutan) |
| Abstract: | This paper offers a new conceptual framework on female entrepreneurial activity. First, we discuss how female-run businesses are different. We emphasize non-economic outcomes, which are frequently overlooked. Second, we offer a comprehensive discussion of drivers explaining these differences. We present a novel taxonomy of drivers categorized into 4 distinct dimensions: 1) choices and preferences, 2) endowments, 3) external constraints, and 4) internal constraints. Finally, we highlight the relevance of the drivers for the design of policies and draw attention to gaps in the literature. |
| Keywords: | well-being, women entrepreneurs, institutions, entrepreneurship |
| JEL: | M13 I31 J16 J24 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202304&r=ent |
| By: | Sara Amoroso; Benedikt Herrmann; Alexander S. Kritikos |
| 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 defining 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: | Business dynamics, Regulation, Institutions, Regional data |
| JEL: | L50 L25 H11 O43 R11 R50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2053&r=ent |
| By: | Francesca Melillo (Skema Business School; CNRS, GREDEG, France) |
| Abstract: | While the literature documents a wage loss for entrepreneurs that return to paid employment, we examine how these entrepreneurs are re-integrated into the labor market. We consider which type of employers hire entrepreneurs and their satisfaction with the new corporate job. Using matched employer-employee data from Belgium combined with an ad-hoc survey, we find that entrepreneurs are hired by smaller employers that offer fewer employee benefits and pay less, contributing to explaining the wage loss. We also find that entrepreneurs are more satisfied than observationally equivalent employees when they are assigned to jobs that involve higher task variety. This effect is more pronounced for entrepreneurs who sort into better employers. Our findings highlight the importance for managers to assign entrepreneurs to the "right" job tasks. |
| Keywords: | Entrepreneurs, job satisfaction, task variety, employee benefits, wage loss |
| JEL: | J23 J24 L26 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2023-21&r=ent |
| By: | Ghinami, Francesca; Montresor, Sandro |
| Abstract: | This paper aims to investigate the role that different forms of proximity have in the access to Venture Capital (VC) by Innovative Startup Companies (ISC). By referring to the population of Italian innovative startups, we find that tangible (spatial) proximity account for this matching, but more in functional than in geographical terms. Industrial proximity between the two actors matters too, and makes the role of functional proximity less binding for the matching. The greatest correlation emerges with respect to a relational kind of proximity, due to the closeness between partners in organisational and social terms. |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:hqrj7&r=ent |
| By: | Laurent Bossavie (World Bank); Joseph-Simon Görlach (Bocconi University); Çağlar Özden (World Bank); He Wang |
| Abstract: | This paper examines international temporary migration as an intermediary step among aspiring entrepreneurs to accumulate the needed capital when they face credit constraints at home. The analysis is based on a representative dataset of lifetime employment histories of return migrants from Bangladesh. After establishing the credit constraints that potential entrepreneurs face, the paper shows that non-agricultural self-employment rates are significantly higher among returning migrants over half versus around 20% of non-migrants. Most migrants transition into self-employment by using their savings from abroad as the main source of financing. The paper then offers, for the first time, a detailed account of the financial costs and benefits of international migration. Our findings suggest that temporary migration can contribute to the structural transformation of lower-income countries by enabling credit-constrained workers to enter into non-agricultural entrepreneurship. |
| Keywords: | Temporary migration, credit constraints, risky investment, entrepreneurship |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:2318&r=ent |
| By: | Kyung Min Lee; Mee Jung Kim; J. David Brown; John S. Earle; Zhen Liu |
| Abstract: | We evaluate the contributions of immigrant entrepreneurs to innovation in the U.S. using linked survey-administrative data on 199, 000 firms with a rich set of innovation measures and other firm and owner characteristics. We find that not only are immigrants more likely than natives to own businesses, but on average their firms display more innovation activities and outcomes. Immigrant owned firms are particularly more likely to create completely new products, improve previous products, use new processes, and engage in both basic and applied R&D, and their efforts are reflected in substantially higher levels of patents and productivity. Immigrant owners are slightly less likely than natives to imitate products of others and to hire more employees. Delving into potential explanations of the immigrant-native differences, we study other characteristics of entrepreneurs, access to finance, choice of industry, immigrant self-selection, and effects of diversity. We find that the immigrant innovation advantage is robust to controlling for detailed characteristics of firms and owners, it holds in both high-tech and non-high-tech industries and, with the exception of productivity, it tends to be even stronger in firms owned by diverse immigrant-native teams and by diverse immigrants from different countries. The evidence from nearly all measures that immigrants tend to operate more innovative and productive firms, together with the higher share of business ownership by immigrants, implies large contributions to U.S. innovation and growth. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:23-56&r=ent |
| By: | Guglielmo Maria Caporale; Cristiana Donati; Nicola Spagnolo |
| Abstract: | This paper investigates how access to finance and skilled workforce endowments affect the propensity of European small and medium sized enterprises (SMEs) to adopt different types of resource efficiency measures (REMs), possibly simultaneously. For this purpose, a Multinomial Logit model is estimated using data from the 2017 Flash Eurobarometer survey covering a large sample of European firms. The analysis is carried out first for the whole sample and then for clusters based on two contextual factors measured by the Ease of Access to Loans Index (EAL) and the European Skill Index (ESI). The findings suggest that the two firm characteristics considered lead to the adoption of more than one REM simultaneously. Moreover, the propensity to implement them is stronger in the case of firms located in countries with easier access to financial resources, whilst the workforce skill-set appears to be a less important factor in this context. |
| Keywords: | resource efficiency measures, financing, SMEs, workforce skills |
| JEL: | G32 O16 Q40 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10799&r=ent |
| By: | Heather M. Stephens (Regional Research Institute, West Virginia University); Zachary T. Keeler (Assistant Professor of Practice, Business Economics, Texas Tech University); Mark D. Partridge (Professor, Swank Chair in Rural-Urban Policy, Agricultural, Environmental, and Development Economics, The Ohio State University) |
| Abstract: | The abrupt onset of Covid-19 disrupted the US and global economy. After the initial shock, the US saw persistently large increases in new-business applications, reversing a downward trend since the late 1970s. Since new and small businesses create more net jobs and provide more economic benefits to communities, understanding factors associated with their creation is important in crafting greater regional-economic resilience and long-term economic growth. Since the size of this change varies geographically, a good question is whether startups were created out of necessity due to job losses and other difficulties, or to exploit potential new opportunities formed in the pandemic’s wake. Using US state-level data, we find “necessity†reasons best explain growing state-level applications. Moreover, we do not find state-by-state parallel shifts in applications, but rather widespread changes in how startups respond to different underlying factors pre- and post-Covid (i.e., not from a post-Covid state dummy-variable parallel-shift or trend-shift but by different post-Covid regression coefficients for the control variables). Self-employment’s role in creating female-employment opportunities and supporting entrepreneurial culture appear to be significant, especially due to behavioral changes among women ages 25-44, with childcare availability being one intervening consideration. In sum, an ironic outcome of the pandemic is it helped local economies become more resilient by generating more startups. |
| Keywords: | entrepreneurship, business applications, self-employment, Covid-19 pandemic |
| JEL: | L26 M13 R10 |
| Date: | 2023–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:rri:wpaper:2023wp02&r=ent |
| By: | Marize Abdou Kalliny (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Nadia Hasham; Modesta Adjoa Nsowaa-Adu; Regina Kaseka |
| Abstract: | Young women and men play critical roles in trade, as entrepreneurs, skilled workers, cross-border traders, and consumers, yet face structural and capacity barriers to participating in trade. This paper investigates the participation of young women and men in trade with a focus on their entrepreneurial and employee roles. It considers the challenges faced by small and medium-sized enterprises (SMEs), which youth are more likely to own or run. In the absence of age-disaggregated data, the authors use the World Bank Enterprise Surveys to assess the characteristics and the barriers faced by SMEs engaged in global value chains. This is complemented by literature and qualitative evidence that can be applied to the experience of youth. The paper then investigates the situation of youth in employment by considering the gap in skilled labour faced by trading firms that can be addressed by youth, with a particular focus on digital skills. A gender mainstreaming approach is applied throughout to assess the differences in the experiences of young women and men. The analysis then considers successful policy, private sector, and partner interventions to address these gaps and highlights the newer trend of integrating youth considerations in trade agreements. Findings suggest that the primary challenge faced by youth-owned or -led smaller trading firms is access to finance and that greater integration in global value chains allows SMEs to overcome barriers related to factors of production. Trading firms may provide more stable and skilled employment for young women and increased opportunities for youth if successful policies and programmes to address a labour-skills mismatch are scaled. Youth participation in leadership and decision-making can address sustainability and impact gaps through a holistic approach involving capacity building and mentorship. Existing experience and evidence show initial successes and provide insight into approaches stakeholders can take at the level of trade agreements, policy, and implementation to ensure young women and men fully benefit from trade and trade outcomes are enhanced as a result. The paper ultimately argues that policies and programmes to encourage and ensure the full participation of youth in trade in all their roles can address market gaps and enhance trade. |
| Keywords: | Gender, Youth, Trade |
| Date: | 2023–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04310241&r=ent |
| By: | Chloé Zapha |
| Abstract: | This paper identifies the bank credit restrictions that small firms face after bankruptcy. Using the French credit register, I implement a difference-in-difference strategy that exploits staggered removal of bankruptcy flags in the form of an exogenous change in credit ratings. I focus on small and medium-sized businesses between 2012 and 2019 and show that flag removal leads to an increase in bank credit of 1.7% and a 2 percentage point higher chance of forming new banking relationships. Less well-informed banks increase their credit supply after flag removal, particularly to firms whose credit rating reveals good financial performance. New banks start lending to the most constrained firms. As a result, firms substitute trade credit for bank credit and increase their investment rate. This paper supports the policy choice of shortening the bankruptcy flag. |
| Keywords: | Corporate bankruptcy, Debt Restructuring, Credit Rating, Bank Lending Relationship, SMEs |
| JEL: | G21 G24 G33 G34 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:928&r=ent |
| By: | Batbaatar, Maral (The Ratio Institute); Sandström, Christian (The Ratio Institute); P Larsson, Johan (The Ratio Institute); Wennberg, Karl (The Ratio Institute) |
| Abstract: | This paper reviews theoretical rationales for mission-oriented innovation policy and provides an empirical overview of extant 28 papers and 49 cases on the topic. We synthetize varieties of mission formulations, actors involved, and characteristics of missions described as more or less failed or successful. 59 percent of the studied missions are still ongoing, 33 percent are considered successful and 8 percent as failures. 67 percent of the studied missions have taken place in Europe, 24 percent in North America and 8 percent in Asia. The majority of innovation projects referred to as missions do not fulfill the criteria defined by the OECD. Results suggest that missions related to technological or agricultural innovations are more often successful than broader types of missions aimed at social or ecological challenges. Challenges regarding the governance and evaluation of missions remain unresolved in the literature. We find no case that contains a cost-benefit analysis or takes opportunity cost into account. |
| Keywords: | Innovation; Government agencies; Mission-oriented Policies; Grand societal challenges |
| JEL: | H11 H50 L26 L52 O32 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0368&r=ent |
| By: | Stijn Kelchtermans (KU Leuven; Hasselt University); Francesca Melillo (Skema Business School; CNRS, GREDEG, France) |
| Abstract: | Entrepreneurs often find co-founders among past colleagues. While previous work focused on the knowledge that entrepreneurs may transfer from their shared prior employer to the new venture, , this paper takes on a full career perspective to explore more comprehensively how shared affiliations affect the selection of co-founders. Using Crunchbase and LinkedIn data, we construct a detailed panel of 712 solo and team founders of innovative startups in Belgium from 1970 to 2019, including harmonized indicators of their prior affiliations (schools, firms) and expertise (study fields, job functions). We estimate logit models for the odds of co-founding for 379 actual co-founder pairs matched to a control group of counterfactual co-founders, accounting for each entrepreneur’s unobserved preference for founding solo. Our results confirm the shared employer effect on the odds of co-founding from prior research but show that it interacts negatively with shared schooling backgrounds. Drawing on theory of team formation strategies, i.e., resource-seeking and interpersonal attraction motives, we argue that co-founders weigh the complementarity of the network of their co-founder more heavily than interpersonal relations stemming from overlapping study and career trajectories. We rule out other explanations by controlling for other resource complementarities between the co-founders, for which we find they are not conducive to team formation, on the contrary. Our findings show the value of looking back further than only the recent shared work experience of entrepreneurs, contributing to the literature on team formation in new ventures. |
| Keywords: | Founding team, shared employer experience, resource-seeking, interpersonal attraction |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2023-22&r=ent |
| By: | Andrea Bellucci (Universita' degli Studi dell'Insubria and Mo.Fi.R.); Alexander Borisov (Lindner College of Business, University of Cincinnati and MoFiR); Alberto Zazzaro (University of Naples Federico II, CSEF and MoFiR) |
| Abstract: | This paper studies the interplay between allocation of decision-making authority and information production within a bank in the context of small business lending. Using a sample of credit lines to small businesses and changes in the overlap between decision-making authority and information production following an organizational restructuring of the bank, we show that an increase in the authority of the information-producing loan officer leads to a reduction in the use of collateral but leaves interest rates broadly unchanged. The reduction of collateral requirements is more pronounced when loan officers have tacit local knowledge or soft information or when their real authority is limited pre-restructuring. Our results highlight the effect of alignment of information production and decision-making authority on the contract terms of bank credit. |
| Keywords: | Soft and hard information, Collateral, Interest rate, Organizational hierarchies, SMEs financing |
| JEL: | D83 D21 G21 G30 L11 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wmofir:184&r=ent |
| By: | Marco Augliera (University of Trento); Gabriella Berloffa (University of Trento); Fabio Pieri (University of Trento) |
| Abstract: | This work investigates the relationship between the numerical flexibility of a firm’s workforce and its innovative performance, taking into account the heterogeneity of firms and labor contracts. Using longitudinal data on Italian firms, we find that the share of temporary employees has a positive and significant effect on innovation for small and micro firms in low-tech and less knowledge-intensive sectors and a negative effect for medium and large firms in high-tech and knowledge-intensive sectors. These results suggest that managers and entrepreneurs may use temporary employment as an effective human resource practice to foster innovation in those firms whose technology or knowledge do not require vast and firm- specific investments. They also highlight possible unintended consequences of changes in the employment protection legislation for firms’ innovative performance. Functional flexibility (training policies) and wage flexibility (second-level wage bargaining scheme) are neither substitutes nor complements to numerical flexibility, suggesting that firms use numerical, functional, and wage flexibility in different combinations. |
| Keywords: | Numerical flexibility; labor contracts; firm innovation; industrial relations |
| JEL: | D22 L23 M54 M55 J41 |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:481&r=ent |
| By: | Izumi, Atsuko (UTEcon); Sawada , Yasuyuki (University of Tokyo); Watanabe, Yasutora (UTEcon); Elhan-Kayalar, Yesim (Asian Development Bank) |
| Abstract: | In this paper, we review the overall micro, small, and medium-sized enterprise landscape in Asia, including the challenges and constraints faced by enterprises in physical (offline) and online markets. We then explore the unique circumstances and externalities that arise due to the special characteristics of platforms and how they impact merchants and other platform users. Our findings suggest that the unique features of platforms, and the two-sided market structure they foster, require a bespoke policy approach from competition authorities and policymakers. |
| Keywords: | competition policy; two-sided market; platforms; MSMEs |
| JEL: | K21 L41 L44 |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0704&r=ent |
| By: | Yu, Po-yang; Lai, Ching-Chong |
| Abstract: | This paper develops a monetary R&D-driven endogenous growth model featuring endogenous innovation scales and the price-marginal cost markup. To endogenize the step size of quality improvement, we propose a trade-off mechanism between the risk of innovation failure and the benefit of innovation success in R&D firms. Several findings emerge from the analysis. First, a rise in the nominal interest rate decreases economic growth; however, its relationship with social welfare is ambiguous. Second, either strengthening patent protection or raising the professional knowledge of R&D firms leads to an ambiguous effect on economic growth. Third, the Friedman rule of a zero nominal interest rate fails to be optimal in view of the social welfare maximum. Finally, our numerical analysis indicates that the extent of patent protection and the level of an R&D firm’s professional knowledge play a crucial role in determining the optimal interest rate. |
| Keywords: | intellectual property rights; economic growth; endogenous innovation scales; endogenous markups; inflation |
| JEL: | E41 L11 O30 O40 |
| Date: | 2022–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119381&r=ent |
| By: | Pierfederico Asdrubali |
| Abstract: | A well-functioning and efficient Venture Capital (VC) market is one of the key pillars to enhance European medium- and long-term economic growth, through the creation of new businesses and sustainable employment, the improvement of managerial practices and increased capital investments, which boost innovation, productivity and competitiveness. These conditions are enhanced in the presence of an integrated VC market, which improves capital allocation, generates economies of scale and spurs competition and diversification of financing sources.This paper analyses cross-border VC flows in Europe in the 2007-2020 period, highlighting the deep fragmentation of the European market, with each country featuring its own peculiarities and evident disparities, and Northern European countries, the UK, and Ireland witnessing significantly higher cross-border volumes than Eastern-European and Mediterranean countries. Overall, the analysis of cross-border investments in the industry confirms that they are still rather infrequent, mainly due to local bias, with the domestic component accounting on average for 64.0% of the total VC activity and cross-border investments within Europe accounting on average for only 23.1%. Using a Grubel-Lloyd index, we find that the highest values of two-way flows of venture capital are concentrated in the major financial centres, with a prominent role of the United Kingdom. Furthermore, theory-grounded gravity equations investigate the determinants of cross-border VC flows, exploring, inter alia, the role of different financial structures across countries. Besides GDP (or market capitalisation) and distance, the quality of institutions and especially the degree of global financial integration do play a role in shaping cross-border VC flows. The uneven development of the financial market within Europe ‒ with a market-based country cluster distinct from a bank-based country cluster ‒ appears to matter little for cross-border VC flows. |
| JEL: | C58 F36 G24 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:195&r=ent |
| By: | Kongphop WONGKAEW; SAITO Yukiko |
| Abstract: | This study investigates the impact of the COVID-19 pandemic on zombification, firm exit, and chief executive officer (CEO) succession, and examines how CEO age moderates these effects. Using Japanese firm-level data from 2013 to 2021, we discover that the prevalence of zombification increased during the COVID-19 pandemic, as firm performance deteriorated and financial leverage increased. However, the pandemic had a limited impact on firm exit. We also find that the impact of the pandemic on firms varied depending on the age of their CEOs. Firms led by younger CEOs were more likely to increase their long-term borrowing and less likely to exit the market. Conversely, firms led by older CEOs were more likely to exit voluntarily or experience CEO turnover, and this was true especially for family-owned firms and those in peripheral prefectures. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23080&r=ent |
| By: | Böhm, Michael Johannes (TU Dortmund); Qendrai, Pamela (IZA) |
| Abstract: | We study the impact of COVID-19 on firm performance. Using financial accounts of a large number of German firms, we document that industry affiliation is an important economic dimension of the crisis. Motivated by this fact, we analyze an important industry-specific regulation, system relevance, which allows businesses to remain open in times of lockdown and other restrictions. A difference-in-differences estimation strategy shows that relative revenues of system-relevant firms increase by 6-9 percent and profits by 17-25 percent due to COVID. Controlling for channels that are arguably not driven by the system-relevance regulation, the impact on revenues decreases but remains significant. Overall, results indicate that regulations affecting the ability to operate as well as industry-level shocks play important roles for firm performance during a pandemic-induced crisis. |
| Keywords: | firm performance, industry shocks, system relevance, COVID-19 |
| JEL: | H12 L25 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16606&r=ent |
| By: | Gutierrez-Lythgoe, Antonio |
| Abstract: | This study explores the relationship between the identification as an entrepreneur and opinions on working from home, utilizing data from platform X, formerly Twitter. The results indicate significant correlations between being an entrepreneur and a lower probability of expressing negative opinions on working from home. Furthermore, a positive association is documented between this identification and activity metrics on the platform, such as followers, followings, retweets, and favorites. In terms of sentiment analysis, being an entrepreneur shows significant and positive correlations with the probability of being classified as positive. The interaction between this condition and male gender exhibits a negative and significant correlation in the probability of being classified as positive, indicating potential variation based on gender. These findings highlight differences in attitudes toward working from home in various work contexts, offering relevant insights into perspectives in the workplace and decision-making in the business environment. |
| Keywords: | Entrepreneurship; Work ing from home; Social Media; Statistics |
| JEL: | J24 L26 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119490&r=ent |
| By: | Koroleva, Ekaterina |
| Abstract: | Objective: to analyze the impact of the externalities of the policy of sanctions pressure on small and medium-sized enterprises and develop specific proposals that allow them to adapt to the conditions of uncertainty. Methods: general scientific methods of systemic, structural and comparative analysis, as well as specific scientific methods (static and graphical analysis, expert assessments). Results: Analysis of the externalities of the policy of sanctions pressure, which significantly affected the activities of Russian small and medium-sized enterprises has been made. The special role of this sector in eliminating disproportions in the country's economy in the face of a difficult geopolitical situation and economic instability has been indicated. It is proposed to study the tools for adapting small businesses to the above conditions, taking into account the systemic classification of enterprises in the SME sector, which consists in dividing firms into three categories (“children”, “genetic dwarfs”, “transformers”) and three subgroups (“travelers”, “reorganizers”, "imago"); their key functions are defined and adaptation tools for each category of enterprises are identified. Forecast trends in the development of small and medium-sized firms for the near future are formulated. Based on the analysis of externalities, the author proposes measures to increase the adaptability of enterprises in the studied segment of the economy, which can be used both by representatives of the business community and government agencies. Scientific novelty: it is proposed to explore ways of adapting small and medium-sized businesses to the externalities of the policy of sanctions restrictions, taking into account the systemic classification of enterprises in the SME sector, which made it possible to develop recommendations for improving the adaptability of small and medium-sized enterprises, taking into account their characteristics. Practical significance: the main provisions and conclusions of the article can be used in the educational process of educational institutions; in scientific activities for the development of academic competencies on the functioning of small and medium-sized enterprises; in the work of organizations that make up the infrastructure for the development and support of SMEs; and contributes to the study of ways and strategies for adapting entrepreneurship in the face of exogenous shocks. |
| Keywords: | small and medium business, sanctions, sanctions pressure, externalities, new economic reality, geopolitical risks, ways of adaptation |
| JEL: | M21 |
| Date: | 2023–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119291&r=ent |
| By: | Koroleva, Ekaterina; Abdyukova, Elina |
| Abstract: | The authors analyzed the activities of Russian small and medium-sized businesses for 2015-2022. The article identified the main problems faced by entrepreneurs as a result of the imposition of sanctions by Western countries. The measures of state support for small businesses currently being implemented have been systematized. The authors formulated recommendations that can be useful to entrepreneurs operating in the context of the sanctions policy of unfriendly countries and an unstable economic environment. |
| Keywords: | small and medium-sized businesses, financial support, sanctions, economic environment, analysis |
| JEL: | G00 G21 M21 |
| Date: | 2023–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119290&r=ent |
| By: | Schneider, Sebastian; Reiff, Annika; Schlömer-Laufen, Nadine |
| Abstract: | Die Bundesregierung möchte die öffentliche Vergabe von Aufträgen im Zuge ihrer Novellierung nachhaltiger und effizienter gestalten, ohne dabei die Zugangshürden für KMU zu erhöhen. Unsere Analyse öffentlich verfügbarer Stellungnahmen zur Novellierung der öffentlichen Vergabe in Deutschland sowie eine Durchsicht der internationalen Literatur zum Thema zeigen, dass KMU aktuell im Vergabeprozess in nahezu jeder Phase Hemmnisse erfahren. Häufig stehen diese im Zusammenhang mit den Vergabestellen oder den rechtlichen Grundlagen für die Vergabe. Deshalb sollten vor allem die bessere Ausstattung der Vergabestellen sowie eine Harmonisierung des Rechtsrahmens vorangetrieben werden. Eine größere Herausforderung stellt jedoch die Vereinbarkeit der verschiedenen ausgegeben Ziele der Novellierung dar. Es ist zu erwarten, dass insbesondere das Ziel der nachhaltigeren Beschaffung eine negative Wirkung auf die Mittelstandsfreundlichkeit entfaltet. In diesem Fall wäre es eine Lösung, dass zunächst Maßnahmen zum Abbau der Hemmnisse für die Beteiligung der KMU umgesetzt werden, bevor das strategische Ziel der Nachhaltigkeit stärker priorisiert wird. |
| Abstract: | The German government would like to amend public procurement without raising the access barriers for SME. Our analysis of publicly available statements on the amendment of public procurement in Germany, as well as a review of the international literature on the subject, show that SME experience barriers in the procurement process at almost every stage. Often, these barriers are related to the contracting authorities or the legal basis. For this reason, the better equipment of the contracting authorities and the harmonisation of the legal framework are important measures to improve the conditions for SME in Germany. However, a more challenging issue is to reconcile the various objectives of the amendment. We expect that especially the plans to strengthen the sustainable alignment of public procurement will have a negative effect on SME-friendliness. In this case, on solution would be to implement the proposed measures to reduce barriers to SME participation before prioritising the sustainable alignment of procurement more strongly. |
| Keywords: | Öffentliche Vergabe, KMU, public procurement, SME |
| JEL: | H57 K2 L20 M2 M38 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmmat:280398&r=ent |