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on Entrepreneurship |
| By: | D'Al, Francesco; Santarelli, Enrico; Vivarelli, Marco |
| Abstract: | In this paper we integrate the insights of the Knowledge Spillover Theory of Entrepreneurship and Innovation (KSTE+I) with Schumpeter's idea that innovative entrepreneurs creatively apply available local knowledge, possibly mediated by Marshallian, Jacobian and Porter spillovers. In more detail, in this study we assess the degree of pervasiveness and the level of opportunities brought about by AI technologies by testing the possible correlation between the regional AI knowledge stock and the number of new innovative ventures (that is startups patenting in any technological field in the year of their foundation). Empirically, by focusing on 287 Nuts-2 European regions, we test whether the local AI stock of knowledge exerts an enabling role in fostering innovative entry within AI-related local industries (AI technologies as focused enablers) and within non AI-related local industries, as well (AI technologies as generalised enablers). Results from Negative Binomial fixed-effect and Poisson fixed-effect regressions (controlled for a variety of concurrent drivers of entrepreneurship) reveal that the local AI knowledge stock does promote the spread of innovative startups, so supporting both the KSTE+I approach and the enabling role of AI technologies; however, this relationship is confirmed only with regard to the sole high-tech/AI-related industries. |
| Keywords: | KSTE+I, Artificial Intelligence, innovative entry, enabling technologies |
| JEL: | O33 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1473 |
| By: | Klejdysz, Justyna (LMU Munich and ifo Institute); Zawisza, Tom (OECD and Institute for Fiscal Studies) |
| Abstract: | How does the differential tax treatment of employees versus self-employed affect the decision to switch to self-employment? Using administrative data on the universe of taxpayers, we study the impact of a large tax cut for business owners in Poland on high-income individuals’ decisions to transition from employment to self-employment. In 2004, the marginal tax rate for business owners in the top income bracket decreased from 40% to a flat rate of 19%, while employees remained subject to a progressive tax schedule with a top rate of 40%. We find a 17% increase in the probability of high-income employees switching to self-employment five years after the reform. The increase in entries to self-employment was driven by increased transitions to long-term solo self-employment (self-employment without dependent workers), especially in high-skilled service industries. In 2009, another reform reduced the tax differential. The entries from employment to self-employment temporarily decreased, but those who had previously switched to self-employment did not return to employment. These findings suggest that large tax differentials increased the attractiveness of self-employment as an alternative to employment but also increased the share of entrants to self-employment who do not hire workers. |
| Keywords: | employment; self-employment; optimal taxation; income tax; highincome earners |
| JEL: | D31 H20 J62 L26 |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:ris:mfplwp:0043 |
| By: | Rosa Sanchis-Guarner; Nikodem Szumilo; Antoine Vernet |
| Abstract: | We study the impact of improved rail access on entrepreneurship rates in England and Wales. We use data from the Census spanning 2001, 2011, and 2021 to analyse self-employment rates in granular geographic areas of around 200 residents. Specifically, we study how they respond to changes in the distance to the nearest train station occurring due to 56 new station openings. We find that all else equal, moving 1 km further away from a station reduces self-employment rates by 0.12 percentage points, with the effect dissipating beyond 7 km. Secondary results suggest that access to rail makes it easier to become self-employed while not making it more attractive compared to employment. Our findings suggest that rail infrastructure improvements can support local entrepreneurship and economic activity, contributing to regional development and reducing economic inequality. |
| Keywords: | entrepreneurship, rail, self-employment |
| JEL: | L26 O18 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11227 |
| By: | Grace C. Liu (Research to Empower, Syosset, New York, USA); Willem Spanjers (Kingston University London, UK; ICEA; Rimini Centre for Economic Analysis) |
| Abstract: | This research focuses on the role of uncertainty in explaining gender disparities in entrepreneurship by testing a behavioral decision model. It examines how misperceptions and ambiguity affect men’s and women’s decisions on founding startups or maintaining established firms in developed and developing countries. It starts from the theoretical assumption that entrepreneurial decision-making follows the specific version of cumulative prospect theory. This model incorporates the Ellsberg paradox and the Allais paradox. Data from the Global Entrepreneurship Monitor in 46 countries/territories over 2013–2019 was used for a panel data econometric analysis using Generalized Least Squares (GLS) and fixed-effects models. After the panel data analysis, a binomial sign test and signed-rank tests were done to validate the theory on gender disparities in entrepreneurship. Findings indicate that there are clear gender differences in behavioral characteristics of entrepreneurs in the face of varying uncertainty levels according to three business development stages. During the startup stage, confidence in ability and confidence from knowing an entrepreneur is positively associated with entrepreneurial rates, whereas fearing the worst is negatively associated. Gender-bias discount factor progressively hinders women rather than men as the business develops, particularly for women in developing countries. During the established business stage, fearing the worst, confidence, and high reference points are positively associated, especially for women’s entrepreneurship. Due to a self-selection effect, once women can enter the scale-up stage, they are more likely than men to continue to the established business stage. This research concludes that effective policies should consider the specific needs of women and the barriers that women face when setting up and sustaining businesses. It underlines how women’s economic empowerment contributes to gender equality and broader societal advancement. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:rim:rimwps:24-13 |
| By: | Di Nola, Alessandro; Kocharkov, Georgi; Scholl, Almuth; Tkhir, Anna-Mariia; Wang, Haomin |
| Abstract: | This paper studies the aggregate and distributional effects of raising the top marginal income tax rate in the presence of tax avoidance. To this end, we develop a quantitative macroeconomic model with heterogeneous agents and occupational choice in which entrepreneurs can avoid taxes in two ways. On the extensive margin, entrepreneurs can choose the legal form of their business organization to reduce their tax burden. On the intensive margin, entrepreneurs can shift their income between different tax bases. In a quantitative application to the US economy, we find that tax avoidance weakens the distortionary effects of higher income taxes at the top but makes them ineffective at lowering inequality. Eliminating tax avoidance by implementing an equal tax treatment of entrepreneurs across all legal forms of business organization substantially increases tax revenue, aggregate output, and welfare. |
| Keywords: | Tax Avoidance, Top Income Tax Rate, Occupational Choice, Legal Form of Organization, Wealth Inequality, Incomplete Markets, Heterogeneous Agents |
| JEL: | E21 E62 H25 H26 H32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:300700 |
| By: | Amandine Maus (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | In the highly competitive incubation industry, focus on the quality incubator's legitimation process is crucial. Legitimacy in this industry grants access to resources like funding and entrepreneurs to support. Limited academic research has delved into the mechanisms and processes of incubator legitimation. This study aims to address this gap by examining three cases of incubator legitimation process. Our findings reveal a common structure in these processes, initially relying on identity and associative legitimation mechanisms, followed by organizational legitimation in later stages. We identify three types of individual contributions within these processes: 1) supporting the legitimacy process, 2) delays and hesitations to act for the legitimacy development, and 3) losing confidence and abandon of a participation to the legitimation mechanisms. These contributions are influenced by individual skills, experiences, and emotions. |
| Keywords: | incubator, legitimation process, individual level, incubator legitimation process individual level |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04649151 |
| By: | Tara Merk |
| Abstract: | This paper asks why startups in the blockchain industry are exiting to Decentralized Autonomous Organizations (DAOs), an outstanding phenomena in the wider digital economy which has tended to retain centralized ownership and governance rights of many platforms, products and protocols. Drawing on a narrative analysis of three case studies, I find three possible drivers: (1) exit to DAO is motivated by both financial and stewardship goals which it simultaneously promises to realize via the issuance of tokens; (2) exit to DAO adds an additional layer of ownership and governance rights via tokens, without requiring existing rights to be relinquished, thus making it a lucrative strategy; and (3) markets, laws and social norms underpinning the broader environment in which exits to DAO occur, seem to play an important role in driving the decision. This paper contributes to the academic literature by situating DAOs as a hybrid (and perhaps incomplete) entrepreneurial exit strategy and identifying plausible drivers of the phenomenon which warrant further dedicated research. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.14327 |
| By: | Mercedes Campi; Masayasu Asai; Jonathan McFadden; Emilio Pindado; Alicia Rosburg |
| Abstract: | New entrants into agriculture are critical for the transformation of food systems. New entrants in OECD countries are younger, have higher levels of education and entrepreneurial skills, and are more likely to adopt new technologies than those already working in the sector. Yet, negative perceptions of farming, limited access to capital and land, lower access to services and regulatory complexities can all deter the entry to the sector. Digital technologies can make agriculture more attractive by reducing arduous tasks and health risks, enhancing working conditions, and supporting on-farm income diversification. Foresight analysis of macro trends and challenges to a digitalised, sustainable and inclusive future can be a useful tool to help anticipate farmer skills needs and transform mindsets. Governments can facilitate new entrants in agriculture, including by investing in human capital, improving digital infrastructure services, promoting innovation systems and removing barriers to entry. |
| Keywords: | Agricultural entrepreneurs, Agricultural innovation, Barriers to entry, Generational renewal |
| JEL: | O13 Q12 Q15 Q16 O33 |
| Date: | 2024–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:oec:agraaa:209-en |