|
on Entrepreneurship |
| By: | Dorgyles C.M. Kouakou (Univ Rennes, CNRS, CREM – UMR6211, F-35000 Rennes France) |
| Abstract: | Using a large firm-level dataset from the World Bank Enterprise Surveys, which covers 134 countries from 2006 to 2023 and includes over 134, 000 observations, we examine whether past informality affects the credit constraints of registered firms. Estimations, based on the entropy balancing method, indicate that registered firms that began operations informally are more likely to be credit-constrained than those that started in the formal sector. This finding is extremely robust to a variety of robustness tests, including instrumental variables, propensity score matching, potential omitted variables, restricted samples, alternative measures of credit constraints, different specifications such as Linear Probability, Logit, and Probit models, and clustering standard errors at the country level. Heterogeneity analysis reveals that the detrimental impact of past informality lessens with firm size, firm age, and better structural factors like regulatory quality, trade openness, entrepreneurial dynamism, and public spending. Productivity, competition from the informal sector, and the quality of financial statements are key channels through which past informality increases credit constraints for registered firms. |
| Keywords: | Past informality status; Credit constraints; Entropy balancing |
| JEL: | G20 O12 O16 O17 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:tut:cremwp:2024-08 |
| By: | Grimaud, André; Gray, Elie |
| Abstract: | We formalize inter-sectoral knowledge diffusion in a standard fully endogenous Schumpeterian growth model. Each sector is simultaneously sending and receiving knowledge; thereby, to produce new knowledge, the research and development activity of each sector draws from a pool of knowledge which stems from this diffusion. This enables us to revisit the scale effects issue by revealing how this property (inconsistent with empirical evidence) relates with knowledge diffusion (the importance of which is empirically highlighted). We show that suppressing knowledge diffusion across sectors is a sufficient but not necessary condition for obtaining scale-invariancy. Then, we identify several sets of assumptions which enable us to obtain models which are reasonably consistent with empirical evidence both on scale effects and how knowledge diffuses in the economy. Specifically, these models do not exhibit scale effects (or at least not significant ones) while considering various scope of knowledge diffusion (including possible occurrence of general-purpose technologies). |
| Keywords: | Schumpeterian growth theory, Scale effects, Knowledge diffusion, Knowledge; spillovers, Non rivalry, echnological distance |
| JEL: | O30 O31 O33 O40 O41 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129742 |
| By: | Chiplunkar, Gaurav (University of Virginia); Goldberg, Pinelopi Koujianou (Yale University) |
| Abstract: | We develop a framework for quantifying barriers to labor force participation (LFP) and entrepreneurship faced by women in India. We find substantial barriers to LFP, and higher costs of expanding businesses through the hiring of workers for women entrepreneurs. However, there is one area in which female entrepreneurs have an advantage: the hiring of female workers. We show that this is not driven by the sectoral composition of female employment. Consistent with this pattern, policies promoting female entrepreneurship can significantly increase female LFP even without explicitly targeting female LFP. Counterfactual simulations indicate that removing all excess barriers faced by women entrepreneurs would substantially increase the fraction of female-owned firms, female LFP, earnings, and generate substantial gains for the economy. These gains are due to higher LFP, higher real wages and profits, and reallocation: low productivity male-owned firms previously sheltered from female competition are replaced by higher productivity female-owned firms previously excluded from the economy. |
| Keywords: | female entrepreneurship, gender discrimination, misallocation, economic development |
| JEL: | J16 J70 O17 O40 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17281 |
| By: | Drydakis, Nick (Anglia Ruskin University) |
| Abstract: | Information and communication technology (ICT) can boost existing socio-economic inequalities if the former is socially exclusive. Longstanding barriers prevent minoritized populations from accessing ICT, thus leading to a vicious circle between digital divide and poor development. The digital divide can be most important when assessing United Nations (UN) sustainable development goals No. 4 (lifelong learning opportunities), No. 5 (empowerment), No. 8 (growth), and No. 10 (reduced inequalities). The current study presents the outcomes of a business apps training intervention, targeting immigrant entrepreneurs running small firms in Greece, Cyprus and the UK. Multifaceted gender digital divides were unravelled, and training was found to improve entrepreneurs' internet/digital skills and firms' digital competencies, whilst also boosting empowerment and reducing gender digital disparities. Given the positive contribution of immigrant firms to countries' growth, ways to facilitate sustainable performances through digital skills training merit consideration. Further, improving immigrant female entrepreneurs' digital skills requires intersectional approaches that address a vector of socio-economic and cultural barriers, ensuring that ICT-driven sustainable development is much more inclusive. |
| Keywords: | information and communication technology, digital divide, immigrants, business apps training, empowerment, digital competencies |
| JEL: | O3 M2 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17275 |
| By: | Elodie Andrieu; John Morrow |
| Abstract: | How do firms diffuse resources and do they spillover outside headquarter intensive areas? We show R&D subsidies induce French firms to hire new workers, often in new establishments and commuting zones. Using subsidy induced labor demand shocks and past employment patterns, we estimate a within industry spillover elasticity of .26 to non-subsidy firms, rising to .35 for openings outside of headquarter areas. Spillovers are also significant across firm branches and for firms. While subsidies are nominally awarded to headquarters, firms expand to distribute spillovers more broadly. |
| Keywords: | multi-establishment firms, subsidies, directed growth, spillovers |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2035 |
| By: | Balila Acurio (Central Bank of Peru); Alessandro Tomarchio (University of Michigan, Ann Arbor and Central Bank of Peru) |
| Abstract: | Government-backed business loan programs have commonly been used as a policy tool for mitigating the impact of adverse scenarios such as the recent pandemic. However, the effects of these policies on micro, small and medium enterprises remain unclear, particularly in developing countries. Using firmlevel data and a Fuzzy Regression Discontinuity Design, we studied the impact of a large credit support program deployed in Peru in 2020 (Reactiva Perú). We examined real outcomes such as employment, sales, and survival. A positive and significant effect of the Reactiva loans on the number of employees was found; this effect continues to linger three years after the pandemic. |
| Keywords: | government-backed loans; regression discontinuity; small and medium-sized enterprises; developing country; business loans; crisis |
| JEL: | H81 E26 H32 G20 |
| Date: | 2024–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp20-2024 |
| By: | Satoshi KAWAKATSU; Tomoki SEKIGUCHI |
| Abstract: | Recently, two published studies examined the relationship between psychological resilience and entrepreneurs’ well-being during the COVID-19 pandemic. One study demonstrated that entrepreneurs’ psychological resilience was related to their well-being during the COVID-19 pandemic period, whereas the other study showed that entrepreneurs’ psychological resilience was unnecessary in maintaining well-being during the same period. We argue that these seemingly contradictory findings can be resolved by using the set-theoretic approach rather than the regression-based approach, which allows the examination of multiple causal pathways to outcomes and to differentiate and identify necessary and sufficient conditions in causality. The results of qualitative comparative analysis (QCA) using the Japanese data demonstrated that psychological resilience is sufficient but not necessary condition for entrepreneurs’ well-being when a threat to the business is perceived by entrepreneurs, which is consistent with the findings of the two previous studies. Based on the findings, we propose future research to better understand the nature of entrepreneurial resilience. |
| Keywords: | entrepreneurship, resilience, well-being, COVID-19, fuzzy set qualitative comparative analysis (fsQCA) |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:kue:epaper:e-24-006 |
| By: | TORRECILLAS CARO Cristina; MERIDA MARTIN Fernando (European Commission - JRC); SASSO Simone (European Commission - JRC) |
| Abstract: | Innovation and entrepreneurship can play a central role in revitalizing rural areas and turning them into places of opportunity. This report, part of the Startup Village Forum initiative’s research activities, explores four cases of rural villages or groups of villages on their journey toward fostering innovation and entrepreneurial ecosystems. Using the Startup Village Conceptualization framework, it assesses resource endowments, institutional arrangements, stakeholder engagement, and outcomes. The findings underscore the importance of institutional support, collaborative leadership, and skill development for successful startup villages, advocating for bottom-up governance and network establishment to drive rural development. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc137918 |
| By: | Cheikh T. Ndour (Dakar, Senegal); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This study aims to investigate the effect of fear of failure on entrepreneurship intent. It utilises survey data from the Global Entrepreneurship Monitor (2015) conducted in Senegal. Analysing a sample of 2364 individuals, the probit model was employed, revealing three key findings. Firstly, fear of failure significantly diminishes entrepreneurship intent. Secondly, individuals who are partially employed demonstrate a heightened inclination towards entrepreneurship. Thirdly, fear of failure consistently impacts entrepreneurship intent regardless of gender. A key policy implication of this research is the necessity to address discrimination in policies designed to support individuals with greater entrepreneurial aspirations. |
| Keywords: | Entrepreneurship intent, probit, occupation, gender, Senegal |
| JEL: | L26 J29 J16 C25 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:aak:wpaper:24/008 |
| By: | Christophe André; Peter Gal |
| Abstract: | This review takes stock of the large body of evidence on aggregate productivity growth, its structural drivers, and the role of a wide range of policies. It aims to synthesise evidence on how public policies can promote productivity through their impacts on both the incentives and the capabilities of businesses and workers, taking account of different specificities of firms at the frontier and below, and integrating complementarities across policy areas. It also identifies gaps in knowledge, thus offering potential directions for future work. |
| Keywords: | Economic policy, Efficiency frontier, Entrepreneurship, Firm Performance, Intangible capital, Investment, Productivity, Technological diffusion |
| JEL: | D24 E22 E24 E6 J24 L25 L26 L5 O31 O32 O33 O38 O47 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1822-en |
| By: | Eddy Garcia (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UM - Université de Montpellier); Stephany Eric (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UM - Université de Montpellier) |
| Abstract: | Our study explores the impact of Design Thinking (DT) (Brown 2008) on the performance of innovative companies during the initialization phase of governance within the specific framework of seed funding. Our analysis highlights the role of DT in understanding the emotional mechanisms (Goglin 2020) necessary to optimize stakeholder relationships in a context of uncertainty. In this article, we analyze how DT improves decision-making, fosters social innovation, and how its integration into governance can lead to financing strategies that are consistent with those defined during the business plan design. Through a literature review, we observe that emotional levers can influence the performance of innovative companies, while suggesting that DT can develop more informed financing strategies by better leveraging cognitive mechanisms. Our article opens up future opportunities on the theoretical approach to specific tools based on empathetic and narrative methods, or informational exchanges between factual and conceptual environments, to better understand the needs of both investors and entrepreneurs. This can lead to better communication between stakeholders, helping to manage, for example, 'adverse selection' and 'information asymmetry' (Kaplan and Stromberg 2003; Lerner 1994). By focusing particularly on the interrelational exchanges of stakeholders, this exploratory study emphasizes the importance of integrating DT to reduce the sense of uncertainty (Wallmeroth, Wirtz, and Groh, 2018), thereby optimizing the company's financial and operational performance at a crucial stage of its development: the due diligence phase. |
| Abstract: | Notre étude explore l'impact du Design Thinking (DT) (Brown 2008) sur la performance des entreprises innovantes dans la phase d'initialisation d'une gouvernance liée au cadre particulier du financement d'amorçage. Notre analyse met en lumière le rôle du DT dans la compréhension des mécanismes émotionnels (Goglin 2020) nécessaires pour optimiser la relation que les parties prenantes entretiennent dans un contexte d'incertitude. Nous analysons dans cet article la manière dont le DT améliore la prise de décision, favorise l'innovation sociale, et comment son intégration dans la gouvernance peut conduire à des stratégies de financement cohérentes avec les stratégies définies lors de la conception du business plan. A travers une revue de la littérature, nous relevons que des leviers émotionnels peuvent agir sur la performance des entreprises innovantes, tout en suggérant que le DT peut développer des stratégies de financement plus éclairées grâce à une meilleure exploitation des mécanismes cognitifs. Notre article ouvre des opportunités futures sur l'approche théorique d'outils spécifiques s'appuyant sur des méthodes empathiques et narratives, ou des échanges informationnels entre environnements factuels et conceptuels, pour mieux comprendre les besoins des investisseurs et ceux des entrepreneurs. Ce qui peut conduire à une meilleure communication entre les parties prenantes pour mieux gérer par exemple la 'sélection adverse' et 'l'asymétrie d'information' (Kaplan et Stromberg 2003 ; Lerner 1994). En se concentrant particulièrement sur les échanges interrelationnels des parties prenantes, cette étude exploratoire souligne l'importance d'intégrer le DT pour favoriser la réduction du sentiment d'incertitude (Wallmeroth, Wirtz et Groh, 2018), et ainsi optimiser les performances financières et opérationnelles de l'entreprise à un moment crucial de son développement : la phase de due diligence. |
| Keywords: | gouvernance des entreprises innovantes due diligence design thinking émotions, gouvernance des entreprises innovantes, due diligence, design thinking, émotions |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04691550 |
| By: | Paul Bergin; Ling Feng; Ching-Yi Lin |
| Abstract: | While the trade literature has tended to view export activity and innovation as complementary activities, we present evidence that financial constraints are a reason the two activities can act as substitutes for small exporters. In particular, we find that small exporters have lower expenditure on R&D than comparable non-exporters, and we find a corresponding pattern in the leverage ratio of the capital structure of small firms. A model that combines firm decisions regarding the amount of innovation, exporting, and endogenous financial capital structure is able to account for these empirical findings. The model implies that small firms are unable to fully reap the gains from exporting due to financial constraints, as they reduce R&D to finance the costs of export participation. |
| JEL: | E44 F41 G32 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32904 |