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on Entrepreneurship |
| By: | Saheel A. Chodavadia; Sari Pekkala Kerr; William R. Kerr; Louis J. Maiden |
| Abstract: | Immigrants contribute disproportionately to entrepreneurship in many countries, accounting for a quarter of new employer businesses in the US. We review recent research on the measurement of immigrant entrepreneurship, the traits of immigrant founders, their economic impact, and policy levers. We provide updated statistics on the share of US entrepreneurs who are immigrants. We utilize the Annual Business Survey to quantify the greater rates of patenting and innovation in immigrant-founded firms. This higher propensity towards innovation is only partly explained by differences in education levels and fields of study. We conclude with avenues for future research. |
| JEL: | F22 F6 J15 J61 L26 M13 O15 O3 R23 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32400&r= |
| By: | Philippe Aghion; Maxime Gravoueille; Matthieu Lequien; Stefanie Stantcheva |
| Abstract: | We use individual panel data and the introduction of simpler tax regimes for the self-employed in France to assess the extent to which individuals' shift towards the simpler tax regimes is driven by tax simplicity and by tax evasion motives. We find evidence of a quest for simplicity from estimating the amount of bunching at the eligibility thresholds for the simpler self-employment tax regimes, and from observing that bunching is increasing in the degree of simplicity of the tax regime. We argue that tax evasion plays a significant role in explaining individuals' attraction towards simpler tax regimes. We develop a structural model to quantitatively assess the importance of simplicity and evasion motives for choosing a simpler self-employment regime. The model suggests a considerable preference for tax simplicity, ranging from 162 to 5654 euros per year per self-employed individual, which in turn entails a sizeable evasion elasticity. |
| Keywords: | self-employment, taxation, entrepreneurship |
| Date: | 2024–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1999&r= |
| By: | Maria S. Mavillonio |
| Abstract: | In this paper, we leverage recent advancements in large language models to extract information from business plans on various equity crowdfunding platforms and predict the success of firm campaigns. Our approach spans a broad and comprehensive spectrum of model complexities, ranging from standard textual analysis to more intricate textual representations - e.g. Transformers-, thereby offering a clear view of the challenges in understanding of the underlying data. To this end, we build a novel dataset comprising more than 640 equity crowdfunding campaigns from major Italian platforms. Through rigorous analysis, our results indicate a compelling correlation between the use of intricate textual representations and the enhanced predictive capacity for identifying successful campaigns. |
| Keywords: | Crowdfunding, Text Representation, Natural Language Processing, Transformers |
| JEL: | C45 C53 G23 L26 |
| Date: | 2024–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2024/308&r= |
| By: | Ubfal, Diego (World Bank) |
| Abstract: | Innovative women entrepreneurs can be agents of change and offer novel solutions to global challenges. However, they face multiple barriers to growing their businesses. This paper reviews the literature on strategies to support women entrepreneurs in improving their business outcomes. It focuses on interventions designed to address four areas of constraints that influence their decisions and can impact their business performance: gaps in human capital, access to finance, access to technology and markets, and contextual factors such as legal and regulatory constraints, social norms, access to care, and gender-based violence. The review concludes that evidence of modest average treatment effects and heterogeneity in treatment effects across various interventions suggest the need for more precise targeting. The multiple constraints faced by women entrepreneurs necessitates testing different packages of interventions. Moreover, the successful implementation and adoption of proposed solutions require consideration of the contextual constraints that differentially affect women-led businesses. While the review highlights several interventions that show promise in supporting women entrepreneurs, significant gaps remain in the evidence concerning the most effective strategies. |
| Keywords: | literature review, gender, entrepreneurship, women-led businesses |
| JEL: | J16 L25 L26 O12 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16950&r= |
| By: | Calista Cheung; James Fudurich; Janki Shah; Farrukh Suvankulov |
| Abstract: | Attempts to measure and track the Indigenous economy in Canada are limited by data availability and quality. Also, little is known about the business environment on reserves. Filling these information gaps is important to ensure that policy-makers and Indigenous leaders can make well-informed decisions that benefit the long-term prosperity of Indigenous communities. To help narrow these knowledge gaps, the Bank of Canada partnered with the Canadian Council for Aboriginal Business and Global Affairs Canada to conduct a large-scale, national survey of Indigenous-owned firms between May and September 2021. This paper reports findings from the survey results, including Indigenous-owned firms’ main sources of financing and their expectations about wages, prices and inflation. These results are compared with those from other Canadian business surveys such as the Bank’s quarterly Business Outlook Survey (BOS) to better understand the unique conditions and challenges Indigenous businesses face. Overall, we find that, compared with the average small business in Canada, Indigenous firms were significantly less likely to use financial institutions as main sources of financing. Indigenous businesses also had stronger inflation expectations and weaker wage-growth expectations, on average, than non-Indigenous firms in Canada, based on results from the BOS during the same time frame. The relatively high inflation expectations partly reflect the large share of Indigenous firms located in rural areas compared with the total business population in Canada. Indigenous firms in rural locations tended to expect higher inflation and higher price increases than their counterparts in urban areas. |
| Keywords: | Firm dynamics |
| JEL: | C83 D0 J15 G38 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:24-04&r= |
| By: | Khadija ANGADE (Ibn Zohr University Agadir, (Morocco)) |
| Abstract: | The cooperative sector is currently an important lever for local, regional and national development. Due to their legal form and associated social and tax advantages, cooperatives actively contribute to reducing unemployment and improving living conditions in various regions, especially in rural areas. The positive impact also extends to individuals, with women primarily benefiting. This explains the rapid growth of this sector in Morocco. The Office for the Development of Cooperatives (ODCo) recently published statistics on Morocco’s cooperative sector for the end of 2021. In six years (from 2015 to 2021), the number of cooperatives has tripled, from 15, 735 to 47, 609, bringing the total number of members to 689, 617 (ODCo, 2023). This article highlights the characteristics of women cooperatives in Morocco through the case study of women’s cooperative of Souss Massa region. Unique aspects of women's participation will be explored by presenting the results of a comprehensive survey of cooperatives in the Souss Massa region (SM), covering all genders. The results of this survey represent the first phase of a research project entitled “Collective entrepreneurship as a driver of sustainable development: a case study of cooperatives in the Souss Massa region.†In the first part we will review the history of the cooperative movement in Morocco from independence to today. This will allow us to better understand the special entrepreneurial spirit that characterizes this industry. Subsequently, through the above survey results, an overview of women's cooperatives is revealed. |
| Keywords: | Cooperative, SSE, Gender, Entrepreneurship, Morocco, Souss Massa, Management, development policy |
| JEL: | A3 L3 M2 O1 R1 Z1 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:crc:wpaper:2402&r= |
| By: | Biswajit Banerjee (Ashoka University; National Bank of Slovakia); Jelena Ćirjaković (Bank of Slovenia) |
| Abstract: | Using annual firm-level data for Slovenia, this paper examines the impact of the Covid-19 pandemic on firm exit, sales, employment and take-up of different types of government financing support. The outcomes in the pandemic year are compared with those in the pre-Covid and post-Covid periods. The firm exit rate did not increase during the pandemic period. The process of cleansing out of less productive firms was still at work during the pandemic but did not intensify. Small and young firms were not impacted disproportionately more from the pandemic shock compared to the pre-Covid period. Government financing support had a strong positive effect on facilitating employment growth. Such support went to firms with greater need. There was little evidence of misallocation of resources towards zombie firms and low productivity firms. |
| Keywords: | COVID-19; Firm exit; FTE employment; government financing support; sales outcome |
| Date: | 2023–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ash:wpaper:108&r= |
| By: | HONDA, Tomohito; ONO, Arito; UESUGI, Iichiro; YASUDA, Yukihiro |
| Abstract: | In this study, we use a detailed and comprehensive dataset on out-of-court debt workouts for distressed small and medium-sized enterprises in Japan to describe characteristics of these workouts. We then investigate their determinants and the subsequent effects on firm performance. We find that most debt restructurings involve a rescheduling (deferral of debt repayment). In contrast, firms infrequently use more drastic measures, some of which reduce their debt overhang. For the determinants, firms with operating surpluses and negative net worth are more likely to take a drastic measure to restructure debt, which is consistent with the debt overhang theory. Firms with operating surpluses are more likely to adopt measures to hold management responsible and to use new outside executives. For performance, firms that use drastic debt restructurings have better gross sales and profits. Firms that use restructuring to hold management more responsible reduce employment and improve profits. These results indicate that firms that use measures to reduce their debt overhang and limit their moral hazard improved their performance. |
| Keywords: | out-of-court debt workouts, debt overhang, moral hazard, zombie firms |
| JEL: | G21 G33 G34 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:hit:rcesrs:dp24-2&r= |
| By: | Okan Akarsu; Altan Aldan; Huzeyfe Torun |
| Abstract: | Financial constraints may hamper firm exports since firms may have to bear export-related costs before they obtain export revenues. Hence, export credits are widely used around the world to mitigate the negative effects of financial constraints. This paper focuses on a specific type of subsidized export credit, namely the export rediscount credit scheme implemented by the Central Bank of the Republic of Türkiye (CBRT), and investigates whether credit-using firms' exports increase more than they do for firms that do not use this credit in the short run without implying a causal relationship. To achieve this, we combine four datasets: the firm-level monthly data on rediscount credit, firm-level monthly data on exports, firms’ annual balance sheet and income statements, and firm-level annual data on employment. We find that receiving rediscount credit is positively correlated with export growth in the short run. This correlation is robust to using alternative measures of credit use, such as a discrete measure of receiving the rediscount credit and the amount of credit. Second, we discover that the correlation between the use of rediscount credits and export growth is stronger among small and medium-sized enterprises (SMEs). Third, we investigate whether the association between rediscount credits and firm exports is non-linear and find that exports increase less proportionately for a higher level of rediscount credits. Finally, we find that both FX- and TL-denominated credits are positively correlated with exports. |
| Keywords: | Rediscount credit, Exports, Türkiye |
| JEL: | D22 F14 O16 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:2407&r= |