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on Entrepreneurship |
| By: | Hellmann, Thomas (Sa¨ıd Business School, Oxford University and NBER); Montag, Alexander (Kelley School of Business, Indiana University, and); Tåg, Joacim (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Startups face a trade-off between short-term profitability versus long-term growth where investors tolerate prolonged financial losses. We present a new theory and empirical evidence about the existence and shape of so-called J-curves. The theory predicts that investors facing better exit opportunities have a higher loss tolerance, encouraging startups to pursue more ambitious growth strategies. Empirically, we examine a large Swedish dataset with detailed cash flow information. Swedish startups backed by US venture capitalists experience deeper J-curves than those backed by non-US venture capitalists. They have more successful exits, higher exit values, faster sales growth, and more follow-on funding. |
| Keywords: | Venture capital; Loss tolerance; J-curves; Entrepreneurship; Exits |
| JEL: | F39 G24 L26 O16 |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1500 |
| By: | Czarnitzki, Dirk; Prüfer, Malte |
| Abstract: | This paper investigates the impact of Public Procurement of Innovation (PPI) and Research and Development (R&D) grants on firms' R&D investment using data from Belgian R&D-active firms over the past decade. Our empirical analysis robustly reveals a non-negligible crowding-out effect between the two instruments, suggesting a substitutive relationship. While each policy individually positively influences R&D investment, their combined implementation diminishes their effectiveness. These results challenge prevailing evidence and emphasize the need for a careful policy implementation, raising policymakers' awareness against a blanket increase in innovation policies without considering potential interactions. |
| Keywords: | Public procurement of innovation, Research and Development, Econometric policy evaluation, Crowding-out |
| JEL: | H57 O38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:301866 |
| By: | Zitian Gao; Yihao Xiao |
| Abstract: | In the Venture Capital(VC) industry, predicting the success of startups is challenging due to limited financial data and the need for subjective revenue forecasts. Previous methods based on time series analysis or deep learning often fall short as they fail to incorporate crucial inter-company relationships such as competition and collaboration. Regarding the issues, we propose a novel approach using GrahphRAG augmented time series model. With GraphRAG, time series predictive methods are enhanced by integrating these vital relationships into the analysis framework, allowing for a more dynamic understanding of the startup ecosystem in venture capital. Our experimental results demonstrate that our model significantly outperforms previous models in startup success predictions. To the best of our knowledge, our work is the first application work of GraphRAG. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.09420 |
| By: | Julia Taferner (University of Graz) |
| Abstract: | This research paper addresses the use of artificial intelligence (AI) in startup ecosystems, focusing on the impact on growth strategies as well as clarifying expansion opportunities and barriers. Utilizing a qualitative methodology, the study conducts an in-depth analysis of diverse startup scenarios to unravel the complexities of AI integration. It categorically differentiates between 'purist' and 'pragmatist' paradigms of AI application.The empirical results of this investigation underscore the central role of AI in fostering sustainable corporate advancement. Specifically, AI is found to catalyze growth opportunities, with a significant increase in productivity and operational efficiency, while providing better opportunities to secure financing through private equity and public funding mechanisms. However, the advantageous impacts of AI are moderated by several challenges, most notably the substantial resource allocation required for its implementation.This contribution is significant to the scholarly discourse by articulating the distinct methodologies of 'purist' versus 'pragmatist' AI implementation in the context of startups, providing a holistic perspective on the ensuing opportunities for growth and the associated challenges. This nuanced exploration extends the existing academic discourse by shedding light on the strategic incorporation of AI within startup environments.However, the applicability of the study's conclusions is acknowledged to be confined to certain startup settings, suggesting a potential limitation in their generalizability across broader business landscapes. The study points a way forward for future research to assess the relevance of these insights in varied organizational contexts.From a practical perspective, the findings from this research endeavor can serve as a strategic guide for startups considering the integration of AI, enabling a calibrated approach to leveraging growth opportunities while navigating the attendant challenges. Furthermore, this study highlights the transformative impact of AI on venture growth strategies, implies extensive implications for economic proliferation and job creation within the technological sector. |
| Keywords: | Artificial Intelligence (AI); Startup Ecosystems; Growth Strategies |
| JEL: | L26 O32 M13 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14416262 |
| By: | Elvira Vieira (Applied Management Research Unit (UNIAG), Instituto Politécnico de Bragança, Campus de Santa Apolónia / ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto / IPVC ? Polytechnic Institute of Viana); Daniela Silva (ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto); Victor Tavares (ISAG ? European Business School, Porto / Research Center in Business Sciences and Tourism (CICET ? FCVC), Porto) |
| Abstract: | Digital marketing is increasingly essential for the competitiveness of small and medium-sized enterprises (SMEs), particularly in key economic sectors. This paper focuses on the Portuguese footwear industry, dominated by SMEs, to examine the role and effects of digital marketing on business performance. Through qualitative research, including in-depth interviews with managers from five leading companies, we assess how these firms have adopted digital marketing and the impact of such practices. Many SMEs show hesitancy towards digital transformation in marketing, often due to limitations inherent in their business structures and models. This reluctance may compromise their competitive advantage and long-term viability. Given the critical importance of the footwear sector to Portugal's economy, it is vital to understand the factors driving or impeding digital marketing adoption. Our findings indicate that digital marketing substantially boosts the performance of SMEs within this industry. Despite initial resistance, those adopting these practices have seen marked improvements in competitiveness and market positioning. The paper concludes with a call for further research into integrating digital marketing in SMEs, emphasizing its potential to transform business success. These insights provide a foundational reference for future studies on digital marketing strategies and their operational implications in similar sectors dominated by SMEs. |
| Keywords: | Business Digitalization, Competitive Advantage, Digital Marketing, Footwear Industry, Small and Medium-sized Enterprises Performance |
| JEL: | L25 M31 O33 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14316278 |
| By: | Schilirò, Daniele |
| Abstract: | This contribution delves into the analysis of beyond-Earth innovations and their profound impact on human life and Earth's progress. The paper first examines the literature on innovation, highlighting that innovation, which represents the primary source of progress, is complex, uncertain, and somewhat disorderly, requiring various types of knowledge, capabilities, skills, and resources. The development of innovations also necessitates collaboration among various actors and diverse ways of thinking. It is often the result of the cross-pollination of ideas that break down barriers between functions, industries, sectors, nations, and geographic distances. Furthermore, the paper underscores that ecosystems play a central role in innovation, as exemplified by the Mearth Ecosystem. Mearth consists of a geographic space representing the interconnectedness of Earth and its satellite, the Moon. Additionally, the strategic importance of the innovative activities being developed and to be developed beyond Earth, particularly within Mearth, is explained and emphasized. Finally, the important new role of private organizations and startups is highlighted in the exploration and commercialization of activities beyond Earth and their strategic contributions to innovations. |
| Keywords: | Innovations; Beyond-Earth, Mearth; Ecosystem; Beyond-Earth Commercialization; Earth’s Progress. |
| JEL: | L26 M13 O30 O31 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121831 |
| By: | Irsan Firmansyah; Luthfi Nur Rohman; Nur Al Faizah; Dyan Widyaningsih; Ana Rosidha Tamyis; Akhmad Ramadhan Fatah; Dwi Purnomo; Yasmin Anwar Putri; Zulfa Raudatul Jannah |
| Keywords: | entrepreneurship, youth |
| URL: | https://d.repec.org/n?u=RePEc:agg:wpaper:2885 |
| By: | Suguru Otani (Market Design Center, University of Tokyo and Junior Research Fellow, Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN) |
| Abstract: | I investigate how explicit cartels, known as "shipping conferences", in a global container shipping market facilitated the formation of one of the largest globally integrated markets through entry, exit, and shipbuilding investment of shipping firms. Using a novel data, I develop and construct a structural model and find that the cartels shifted shipping prices by 20-50% and encouraged firms' entry and investment. In the counterfactual, I find that cartels would increase producer surplus while slightly decreasing consumer surplus, then may increase social welfare by encouraging firms' entry and shipbuilding investment. This would validate industry policies controlling prices and quantities in the early stage of the new industry, which may not be always harmful. Investigating hypothetical allocation rules supporting large or small firms, I find that the actual rule based on tonnage shares is the best to maximize social welfare. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2024-28 |
| By: | Marianne Sytchkov (NIMEC - Normandie Innovation Marché Entreprise Consommation - UNICAEN - Université de Caen Normandie - NU - Normandie Université - ULH - Université Le Havre Normandie - NU - Normandie Université - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Keywords: | narration, conte, accompagnement entrepreneurial |
| Date: | 2023–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04667539 |