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on Entrepreneurship |
| By: | Michael Fritsch (Friedrich Schiller University Jena) |
| Abstract: | This article discusses the concept of entrepreneurial ecosystems. In particular, three propositions are made for further development of the concept. First, it is argued that entrepreneurial ecosystems should be regarded a part of the regional innovation system. Second, the scope of the concept should be expanded beyond high-performance start-ups and their founders to include the entire universe of "‘everyday" entrepreneurship. Third, the concept should account for the incumbent firms and the regional workforce. The paper then outlines main challenges of further development of the concept. |
| Keywords: | Regional entrepreneurship, entrepreneurial ecosystems, regional development, entrepreneurship policy |
| JEL: | L26 R11 O2 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-0067 |
| By: | Camarero Garcia, Sebastian; Murmann, Martin |
| Abstract: | Business creation is economically important, and unemployment precedes the creation of a substantial share of new firms. Yet, most research has focused on analyzing the effects of unemployment insurance policies on re-employment outcomes, ignoring self-employment. In this paper, we analyze how the potential duration of unemployment benefits, a fundamental design choice of unemployment insurance systems, affects whether new firms are founded out of opportunity or necessity and their growth potential. To this end, we construct a comprehensive dataset on German firm founders that links administrative social insurance information with business survey data. Exploiting reform and age-related exogenous variation in the potential duration of unemployment benefits, we find that longer potential benefit duration implies longer actual unemployment and, as a consequence, more necessity entrepreneurship and worse startup outcomes in terms of sales and employment growth. We explain this overall effect of potential benefit duration through a mix of compositional and individual-level duration effects. Our findings underline that new firms started out of unemployment are a highly heterogeneous group and suggest that the (optimal) design of unemployment insurance systems has important externalities on whether innovation- and growth-oriented firms are started out of unemployment. |
| Keywords: | entrepreneurship, unemployment insurance, self-employment, opportunity entrepreneurship, fiscal externality |
| JEL: | L26 M13 L11 L25 D22 J21 J23 J44 J62 J64 J65 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:301863 |
| By: | Wenli Cheng (Department of Economics, Monash University) |
| Abstract: | This paper presents a monetary model of economic growth that brings together 3 main growth drivers: real savings, entrepreneurship and finance. In addition to the familiar result that real savings and entrepreneurship are critical to capital formation and technology implementation, the model demonstrates how the quintessential bank – by issuing loans, taking deposits and providing payment services – plays a pivotal role in the sustainment and the growth of an economy. In particular, the bank creates purchasing power through loan issuance, which enables the entrepreneur to form capital and adopt new technologies. The bank also pays deposit interests to encourage real savings and provides payment services to facilitate monetary transactions. The model shows that following the adoption of new technologies, there is a discontinuous jump in economic output. Numerical simulations suggest that the economy will continue to grow for some time and will eventually reach a steady state. Sustained growth over the long term requires continued development and adoption of ever better technologies. |
| Keywords: | credit creation, finance, entrepreneurship, real savings, economic growth |
| JEL: | G21 D90 O40 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2024-14 |
| By: | Wafaa El Gouz (Mohamed V University, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | The purpose of this comparative research is to analyze the complex link that exists between the education of company owners and the financial success of family-owned companies in Morocco. A sizeable percentage of the corporate landscape is comprised of family businesses, which provide a major contribution to the economic growth of the nation. For the purpose of determining the influence that entrepreneurial training has on financial results, the study takes a comparative approach, evaluating both family firms and enterprises that are not family businesses. This inquiry digs into the particulars of family companies, considering the unique difficulties and opportunities that family firms face in the Moroccan economic climate. The purpose of this research is to give significant insights into the processes that determine the economic success of family businesses by taking a closer look at the association between entrepreneurial training and financial performance. In terms of methodology, the study takes a holistic approach, using both quantitative and qualitative data to capture the many facets that are associated with entrepreneurial training and financial achievement. The purpose of this study is to investigate the complex relationships that exist between the training programs that are offered to family entrepreneurs and the subsequent financial health of their businesses. This will be accomplished with questionnaires, interviews, and financial analyses. Moreover, the results of this study not only provide a contribution to the academic knowledge of family entrepreneurship in Morocco, but also offer practical consequences for enterprises, governments, and educational institutions. It is possible to design strategies for promoting the sustainable development of family businesses by gaining an understanding of the association between training and financial success. This will contribute to the overall economic growth and stability of the Moroccan business environment. |
| Keywords: | family businesses, professional training, financial success, Morocco |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0360 |
| By: | Hernán Bejarano (Division of Economics, CIDE); Pedro Hancevic (Division of Economics, CIDE); Héctor Núñez (Division of Economics, CIDE) |
| Abstract: | In this paper, we analyze the impact of the COVID-19 pandemic on the sales and expenditures of small and medium-sized businesses in Mexico. Using a novel survey that captures the economic conditions and expectations before and during the pandemic, we also incorporate electricity billing data as a proxy for economic activity and as a revealed measure of firms' flexibility in reducing costs. We examine these variables in relation to firms' characteristics, adaptation strategies, and expectations during the pandemic. Our analysis employs non-parametric tests and a set of econometric models, revealing a significant decline in sales alongside limited flexibility in expenditures. The effects vary depending on the strategies firms adopt to cope with the crisis and their negative expectations regarding a quick return to normality. Consequently, most SMEs face a precarious economic situation, highlighting the need for new policies and strategies to enhance their survival prospects in emerging economies such as Mexico. |
| Keywords: | COVID-19, small and medium-sized enterprises (SME), activity restrictions, electricity consumption, emerging countries |
| JEL: | D22 L20 Q41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte639 |
| By: | Hening Wikan Sawiji; Adinda Angelica; Faiq Yahya; Paul Vanderberg; Palmira Permata Bachtiar |
| Keywords: | tech startup, tech startup ecosystem, digital talent development, incubator/accelerator, financial institution |
| URL: | https://d.repec.org/n?u=RePEc:agg:wpaper:3864 |
| By: | Görg, Holger; Jäkel, Ina Charlotte |
| Abstract: | In this paper, we investigate whether gender norms and institutions act as a constraint to the performance of female businesses. We exploit novel and unique micro data on start-ups in Denmark, which we combine with information on individual-level characteristics of the entrepreneur as main decision maker of the firm. We overcome the challenge of disentangling norms and institutional biases against women from other constraints and hurdles that female businesses might face by exploiting detailed trade data. In this trade context, we study the relative performance of firms across markets with varying institutions, while controlling for other factors that affect female businesses uniformly across all markets. We provide evidence that gender inequality and institutional biases against women in trade partner countries play an important role in explaining gender differences in export and import behaviour. We also perform an event study of a concrete policy change in a destination market - the introduction of quotas for the share of females on the boards of directors in Norway - and how it has affected the gender gap in trade participation. |
| Keywords: | Gender Inequality, Firm Internationalization, Start-up Performance |
| JEL: | F14 J16 M13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:302556 |
| By: | Princi Tanwar (Turiba University, Riga, Latvia) |
| Abstract: | Effective communication plays a pivotal role in the growth and development of business activities. In today’s globalized environment, communication is the bridge to collaboration, understanding and innovation. Clear communication aligns every stakeholder on goals, strategies, and expectations, minimizing confusion and boosting efficiency. It builds trust with stakeholders like customers, suppliers, or investors. Trust, in turn, is foundational for long-term partnerships and collaborations, contributing significantly to the sustainability and growth of a business. Open communication is vital for fostering a positive and inclusive organizational culture. It empowers employees to express their ideas, concerns, and feedback. Businesses that encourage open communication are better positioned to adapt to changes, identify opportunities, and stay ahead in competitive markets. In the realm of marketing and customer relations, effective communication is paramount. A well-crafted communication strategy sets businesses apart, attracts customers, and builds brand loyalty. Fast, efficient communication tools in today's digital age fuel growth by enabling rapid decision-making, problem-solving, and seamless collaboration across geographically dispersed teams. In summary, effective communication is not just a supportive function but a strategic imperative for business growth. It underpins organizational success by fostering understanding, trust, innovation, and efficiency. Businesses that prioritize robust communication strategies are better equipped to navigate the complexities of the modern business landscape, ultimately positioning themselves for sustained growth. |
| Keywords: | Effective communication, organizational culture, employee engagement, stakeholders, relationships, innovation, leadership, business success |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0391 |
| By: | Wafaa El Gouz (Mohamed V University, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | The purpose of this study is to analyze the transformational influence that financial training has on the financial management practices of small enterprises in Morocco and to investigate the subsequent socioeconomic contributions that will result from this training. An all-encompassing research framework that incorporates both quantitative and qualitative research approaches is used in this study, which is conducted within the setting of a rapidly expanding small company sector that is experiencing financial difficulties. Research methods such as questionnaires, interviews, and case studies are applied in order to evaluate the effectiveness of financial training programs in providing small businesses with improved capacities to make responsible financial decisions. The results are intended to provide light on the actual effects of financial training, which include improvements in financial measures, risk management, and investment choices inside the organizations that were targeted. The study investigates not only the consequences on a micro level, but also the implications on a macro level that strengthened financial management will have on the socioeconomic landscape of Morocco as a whole. This research makes a contribution to the current body of knowledge by shedding light on the complex interaction that exists between financial management, financial training, and the generation of socioeconomic value. It is anticipated that the findings will provide policymakers, educators, and business leaders with information on effective techniques to promote financial resilience within small firms, hence creating sustained contributions to the socioeconomic growth of Morocco. |
| Keywords: | financial management, financial training, risk management, small businesses |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0387 |
| By: | Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | This research investigates the complex dynamics of innovation postures inside family businesses, revealing a typology that combines a predilection for risk with a strong adherence to tradition. The diverse routes illuminated by the Seasoner, Re-enactor, Digger, and Adventurer attitudes inside family enterprises have a distinctive impact on the innovation atmosphere. Through an examination of the relationship between these positions and the aspects of the family system, namely aim variety and coherence, we can decipher the paradox of innovation willingness in family businesses. Moreover, succession presents a critical occasion for reorientation, providing insight into how intergenerational family enterprises manage the intricate equilibrium between risk-taking and tradition. |
| Keywords: | innovation dynamics, tradition, family-owned firms, intergenerational family enterprises |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0395 |
| By: | Hernán Bejarano (Division of Economics, CIDE); Pedro Hancevic (Division of Economics, CIDE); Yadira Peralta (Division of Economics, CIDE) |
| Abstract: | This paper aims to contribute to understanding the relationship between environmental attitudes and behaviors with environmental impacts. We achieve this goal by assessing the psychometric validity of the New Ecological Paradigm (NEP) scale in Mexico and exploring correlations between identified factors (attitudes) and real-world behaviors. In contrast to existing literature primarily focused on individuals and households in developed countries, our study investigates how pro-environmental values relate to electricity consumption, energy efficiency, and adoption of environmentally friendly technologies among small- and medium-sized commercial and service businesses in Mexico. We identified four cohesive factors that encapsulate distinct attitudes. Our findings indicate that companies where employees exhibit skepticism towards environmental issues and climate change tend to consume more energy, use less energy-efficient lighting, and have poorer insulation. Additionally, individuals holding stronger beliefs in an impending environmental crisis and human ingenuity are more. |
| Keywords: | NEP scale, Mexico, SMEs, electricity consumption, energy efficiency, green technology adoption. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte636 |