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on Entrepreneurship |
| By: | Rodepeter, Elisa; Gschnaidtner, Christoph; Hottenrott, Hanna |
| Abstract: | Big Data (BD) is becoming widely available and manageable. This raises the question of whether Big Data Analytics (BDA) in companies leads to better decision-making andhence performance. Based on a large, representative set of start-ups in Germany, we study the adoption of BDA among small and young ventures and analyze its economic effects using various short- and longer-term performance measures. We investigate the effect of adopting BDA on the new ventures' cost structure, sales, profits, survival rate, growth, and their probability of receiving Venture Capital (VC) financing while taking into account fac tors that drive BDA adoption. Our findings, however, show that using BDA does not lead to an immediate competitive advantage in terms of the classical short-term performance measures. BDA adoption is rather associated with greater sales/profit uncertainty, higher (personnel) costs, and a higher probability of failure. Yet, the increased risk of adopting BDA is compensated by a prospect of higher long-term performance conditional on survival. BDA-adopting start-ups perform better than comparable ones when considering longer-term performance measures such as their growth and their ability to secure VC. |
| Keywords: | Big data, Innovation, Productivity, Start-ups, Survival, Venture capital |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283582&r=ent |
| By: | Runst, Petrik; Thomä, Jörg |
| Abstract: | The literature has established that young firms engaged in R&D exhibit a pronounced asymmetry in their economic performance, with high premia at the upper end of the conditional growth distribution. We argue that this binary view - i.e., R&D-oriented firms versus all others - is somewhat limited. In particular, non-R&D innovation activity should be treated as an important category in its own right, and that its sui generis mode of learning is reflected in a distinct growth pattern. We examine data from the German IAB/ZEW Start-up Panel. Our evidence suggests that young non-R&D innovators also exhibit asymmetric and improved economic performance relative to non-innovators, although less so than R&D firms. Our results also suggest that firms engaged in non-R&D innovation grow in a less risky and costly way than R&D innovators, and that a young firm's decision whether to engage in R&D for the purpose of innovation and growth can therefore usefully be understood as being driven by a specific risk-return trade-off. |
| Keywords: | Firm growth, R&D, non-R&D innovation, Modes of innovation |
| JEL: | D21 L11 L25 L26 O31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:285360&r=ent |
| By: | Joe, Dong-Hee |
| Abstract: | Because international trade is essential for the Republic of Korea’s economic growth and development, the government actively promotes exports by large companies and especially by small and medium-sized enterprises (SMEs). Several programmes support participation by SMEs in cross-border e-commerce, which may have contributed to their rapidly rising exports through this channel. This report reviews selected programmes implemented by the Korea SMEs and Startups Agency (KOSME) and the Korea Trade-Investment Promotion Agency (KOTRA). To maximize the programmes’ impact, KOSME and KOTRA apply a circular process of assigning the required budget, selecting the most promising SMEs, coordinating with private sector stakeholders, and evaluating results. This document reviews each of these aspects in detail for a selection of the programmes. |
| Date: | 2024–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68862&r=ent |
| By: | Jennifer De la Cruz (Departamento de Economía de la Pontificia Universidad Católica del Perú.) |
| Abstract: | Empirical studies suggest that credit constraints prevent the development of Micro and Small Enterprises (MSEs). This study contributes to the analysis by exploring whether higher regional financial development affects the creation and growth of MSEs in Peru. Based on four cross-sectional databases, mainly the 2018 National Household Survey on Living Conditions and Poverty, this paper finds that there is a positive impact on entrepreneur profits; however, the effect is negative on the likelihood of running a business. Interactions between informality and financial frictions may explain this result. Informal financing emerges as an alternative in this context. This study addresses endogeneity issues by using the number of commercial bank branches per 1, 000 inhabitants in 1995 as an instrument of the degree of regional financial development in 2018. JEL Classification-JE: G20, O16, R11. |
| Keywords: | Financial Development, Micro and Small Enterprises, Informal Finance, Instrumental Variables. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pcp:pucwps:wp00532&r=ent |
| By: | Rachid Achbah (UL2 UFR SEG) |
| Abstract: | This study aims to empirically investigate the impact of managers' characteristics on their choice between in-court and out-of-court restructuring. Based on the theory of upper echelons, we tested the preferences of 342 managers of financially distressed French firms regarding restructuring decisions. The overall findings of this study provide empirical support for the upper echelons theory. Specifically, managers with a long tenure and those with a high level of education are less likely to restructure before the court and are more likely to restructure privately. The findings also indicate that managers' age and gender do not significantly affect their choice between in-court and out-of-court restructuring. This study contributes to the literature on bankruptcy and corporate restructuring by turning the focus from firm characteristics to manager characteristics to explain restructuring decisions. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.18135&r=ent |
| By: | Brian C. Albrecht; Ryan A. Decker |
| Abstract: | In recent decades, various measures of “business dynamism”—such as new business entry rates and gross job or worker flows—have seen significant declines in the U.S.. Over a similar time frame, there is evidence that an important measure of market power—the average markup—has risen significantly (figure 1, left panel; De Loecker, Eeckhout, and Unger 2020). A natural question is whether these patterns are related. |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2024-03-08-2&r=ent |
| By: | Deborah Amorim Paixão (FACE/UFMG); Márcia Siqueira Rapini (CEDEPLAR/UFMG); Nathália Domingues Oliveira Barbosa (CTIT/UFMG e PPGTI/UFMG) |
| Abstract: | This paper aims to analyze the difficulties faced by academic spin-offs (SOAs) in their creation and development. To this end, a case study was carried out with SOAs from UFMG that have ceased their activities. The interviews conducted indicated that the main obstacles faced in setting up and consolidating the companies are similar to those reported in the literature, such as the need for funding, the importance of managerial knowledge (and not just technical knowledge), adapting to regulatory issues, and the founding professor's difficulty in reconciling his activities in the company with his academic obligations. University skills - such as support from the TTO Office in intellectual property and technology transfer activities, courses and business incubation - were highlighted as relevant to the entrepreneurial process. However, for all three companies, discontinuity or a reduction in demand for technology were determining factors for the closure or non-growth of the companies, showing that the growth and sustainability of SOAs go beyond institutional university initiatives or policies to promote ST&I. |
| Keywords: | academic spin-offs; technology transfer; innovation, UFMG. |
| JEL: | O31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td668&r=ent |
| By: | Mageste, Stephania; Plottier, Cecilia; Rocha, Carolina; Saporito, Nunzia |
| Abstract: | En las últimas décadas, los Gobiernos de países desarrollados y en desarrollo han mostrado creciente interés en fomentar el nacimiento de empresas innovadoras e intensivas en tecnología, a las que comúnmente se ha denominado empresas emergentes (start-ups). América Latina y el Caribe no ha sido la excepción y varios países de la región han implementado programas de política pública que incentivan su creación. En este escenario, en este trabajo se realiza una primera aproximación a una definición de las empresas emergentes para la región, planteándolas como un agente de innovación y desarrollo económico, y se identifica y analiza, utilizando una base de datos comercial (Crunchbase), un extenso conjunto de estas empresas que se encontraban en operaciones al momento de realizar el estudio. A diferencia de lo realizado en trabajos previos, el conjunto de empresas que se analiza cumple con ciertos criterios de tiempo en operación, número de trabajadores, posición relativa en términos de notoriedad en el mercado e intensidad innovadora. Los resultados proveen una primera identificación y análisis de una realidad empresarial fundamental para lograr ecosistemas productivos más complejos, sofisticados y que permitan construir nuevas capacidades en la región. |
| Date: | 2024–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68855&r=ent |