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on Entrepreneurship |
| By: | Yoshiki Ando (University of Pennsylvania) |
| Abstract: | The role that venture capital (VC) plays in helping promising startups achieve high growth is examined. Three facts are documented from administrative US Census data and proprietary VC datasets. First, VC-backed firms achieve substantial growth in employment and payroll compared to non-VC-backed firms. Second, VC-backed firms typically raise funding more than 10 times their revenue at age 0 and intensively invest in research and development. Third, venture capitalists acquire around 3.3% extra equity stakes relative to Angel investors. Based on the evidence, I develop a firm dynamics model with endogenous firm productivity and choice of financing from VC, Angel (non-VC-equity) investors, and banks. Venture capitalists provide equity-based funding and managerial advice, but they are in limited supply. The model shows the benefit of VC and Angel financing over bank financing for high-potential firms because of their large investment in innovation, which creates a debt repayment issue with bank financing when innovation is unsuccessful. VC-backed firms achieve substantial growth as a result of endogenous sorting, equity-based funding, and managerial advice. The calibrated model implies that venture capitalists’ advice accounts for around 24% of the growth of VC-backed firms. Finally, policy experiments predict that subsidies to innovation expenditures or equity investments enhance aggregate output and consumption in the steady state in contrast to bank loan subsidies. |
| Keywords: | Venture capital, firm dynamics, innovation, upfront investment, equity, debt, default, endogenous sorting |
| JEL: | D22 D25 E22 G24 G30 O32 |
| Date: | 2024–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:24-012&r= |
| By: | Alexander S. Kritikos (DIW Berlin, University of Potsdam, GLO Essen, IAB Nuremberg, CEPA); Mika Maliranta (University of Jyväskylä); Veera Nippala (University of Jyväskylä); Satu Nurmi (Statistics Finland) |
| Abstract: | We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is – starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role for the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses in male ownership maintain a gender pay gap of around 10 percent also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others – firm managers – determine wages and no differences in the pay gap are observed between male- and female-owned firms. |
| Keywords: | entrepreneurship, gender pay gap, discrimination, linked employer-employee data |
| JEL: | J16 J24 J31 J71 L26 M13 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:76&r= |
| By: | Clint Harris; Jon Eckhardt; Brent Goldfarb |
| Abstract: | Selection into samples undermines efforts to describe populations and to estimate relationships between variables. We develop a simple method for correcting for sample selection that explains differences in survey responses between early and late respondents with correlation between potential responses and preference for survey response. Our method relies on researchers observing the number of data collection attempts prior to each individual's survey response rather than covariates that affect response rates without affecting potential responses. Applying our method to a survey of entrepreneurial aspirations among undergraduates at University of Wisconsin-Madison, we find suggestive evidence that the entrepreneurial aspiration rate is larger among survey respondents than the population, as well as the male-female gender gap in the entrepreneurial aspiration rate, which we estimate as 21 percentage points in the sample and 19 percentage points in the population. Our results suggest that the male-female gap in entrepreneurial aspirations arises prior to direct exposure to the labor market. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.17693&r= |
| By: | Katarína ?ulková (Technical University of Ko?ice); Mária Jano?ková (Faculty of Business Economics in Ko?ice, University of Economics in Bratislava) |
| Abstract: | Over the last thirty years, controlling has become so established in corporate management that it occupies a leading position in the management of modern companies. The paper deals with the use of controlling tools in corporate governance in a selected region of Slovakia on the basis of a questionnaire survey on the current state in management in small and medium enterprises. The results show that mostly in small companies there are no separate controlling departments. Based on the results the conditions for the implementation of controlling into business practice were defined, which can contribute to the development of the business. |
| Keywords: | Controlling tools, Enterprise management, Questionnaire research, Slovakia |
| JEL: | D23 G32 M20 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14116022&r= |
| By: | Lamia SABOUR ALAOUI (National School of Business and Management (ENCG)) |
| Abstract: | SMEs have a high rate of disappearance, an SME in the course of its life may face the risk of failure. This failure is due to several micro or macro-economic factors. The objective of this article is to address the positioning of Moroccan small and medium enterprises in relation to Turkish SMEs. As such, we have chosen Turkey, as it is among the best economic powers in the world.The comparative analysis will focus on Turkey's strengths and advantages, notably in terms of the means to solve problems and difficulties related to R&D, competition from informal enterprises, access to finance, lack of managerial and entrepreneurial skills and the capacity of SMEs to participate in the exportable offer. |
| Keywords: | SMEs, Benchmarking, Managerial skills, Informal enterprises, R&D, Morocco, Turkey. |
| JEL: | A10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14115841&r= |