|
on Entrepreneurship |
| By: | Lars Hornuf; Matthias Mattusch |
| Abstract: | Fintech startups have set out to revolutionize the financial world. However, little is known about how successful and innovative these firms actually are. This paper investigates firm failure, funding success, and innovation capacity using a hand-collected dataset of 892 German fintechs founded between 2000 and 2021. We find that founders with a business degree and entrepreneurial experience have a better chance of obtaining funding, while founder teams with science, technology, engineering, or mathematics backgrounds file more patents. Early third-party endorsements and foreign partnerships substantially increase firm survival. We also establish the following stylized facts: (1) fintechs focusing on business-to-business models and which position themselves as technical providers prove to be more effective; and (2) fintechs competing in segments traditionally reserved for banks are generally less successful and less innovative. These results have important implications for the early-stage success management of fintech firms and the investment decisions of venture capital funds and government startup programs. |
| Keywords: | Fintech industry, firm funding, firm failure, innovation capacity |
| JEL: | G24 M13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11301 |
| By: | Marius Berger; Antoine Dechezleprêtre; Milenko Fadic |
| Abstract: | Government Venture Capital (GovVC) has emerged as a policy tool to complement private venture capital (Private VC) by funding innovation-driven firms that might not attract traditional VC investment. This study analyses GovVC's role in OECD Member countries using comprehensive data on entrepreneurial firms, investors, and patents, with GovVC entities identified through surveys of ministry experts. The analysis shows that GovVC-funded firms are typically riskier than Private VC funded ones and generally demonstrate lower performance in securing follow-on funding and innovation output. However, when GovVCs partner with Private VC investors, these performance gaps diminish significantly. In co-investment scenarios, firms show comparable innovation and exit performance to those funded solely by Private VC. The findings indicate that GovVC can effectively direct capital to overlooked firms, particularly when working in partnership with private investors. |
| Keywords: | Entrepreneurship, Government Policy, Innovation, Venture Capital |
| JEL: | G24 O38 O31 |
| Date: | 2024–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/10-en |
| By: | Hammond, Peter J (University of Warwick) |
| Abstract: | A decision-making agent is usually assumed to be Bayesian rational, or to maximize subjective expected utility, in the context of a completely and correctly speci ed decision model. Following the discussion in Hammond (2007) of Schumpeter's (1911, 1934) concept of entrepreneurship, and of Shackle's (1953) concept of potential surprise, this paper considers enlivened decision trees whose growth over time cannot be accurately modelled in full detail. An enlivened decision tree involves more severe limitations than model mis-speci cation, unforeseen contingencies, or unawareness, all of which are typically modelled with reference to a universal state space large enough to encompass any decision model that an agent may consider. We consider three motivating examples based on: (i) Homer's classic tale of Odysseus and the Sirens; (ii) a two-period linear-quadratic model of portfolio choice; (iii) the game of Chess. Though our novel framework transcends standard notions of risk or uncertainty, a form of Bayesian rationality is still possible. Instead of subjective probabilities of different models of a classical finite decision tree, we show that Bayesian rationality and continuity imply subjective expected utility maximization when some terminal nodes have attached real-valued subjective evaluations instead of consequences. Moreover, subjective evaluations lie behind, for example, the kind of Monte Carlo tree search algorithm that has been used by some powerful chess-playing software packages. |
| Keywords: | Prerationality ; consequentialist decision theory ; entrepreneurship ; potential surprise ; enlivened decision trees ; subjective evaluation of continuation ; subtrees ; Monte Carlo tree search. JEL Codes: D81 ; D91 ; D11 ; D63 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1524 |
| By: | C. Champenois (Audencia Business School); D. Saurier (Audencia Business School); E. Béliard |
| Abstract: | The article sheds light on the process of fabrication of a polysemous, ambiguous and mocking French entrepreneurial expression−the "start-up nation"−construed as an empty signifier. The fabrication of such empty signifiers in the discourses of entrepreneurship and management, what creates them and what they create, remain little explored questions. This article addresses the following question: How do repeated quotations of an empty signifier enable it to perform entrepreneurship? We trace the circulation of the expression from its first utterance in the political sphere by Emmanuel Macron, then French Minister of the Economy, through to the media and the scientific sphere, using a communicative analysis of Emmanuel Macron's speeches (n=4), press articles (n=210) and academic productions (n=30). We show the shifts in meaning and values that take place, in particular the way in which the "start-up nation" takes on denunciatory and pejorative values, and is transformed from a political formula into a pejorative, decontextualized little phrase. Our results enrich the critical literature on management and entrepreneurship, particularly the analysis of the performativity of entrepreneurial discourse. By describing the manufacture of an empty signifier through its circulation in social space, the study reveals the counter-power potential of performativity. The results also highlight the surprising absence of an academic critical dimension |
| Keywords: | Start-up nation, Macron, discourse, entrepreneurship, critical approaches, Butler. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04752802 |
| By: | Lakemann, Tabea; Beber, Bernd; Lay, Jann; Priebe, Jan |
| Abstract: | In many developing countries, micro, small, and medium enterprises (MSMEs) employ more people than any other type of firm, so identifying ways to raise productivity, improve employment conditions, and formalize labor in these settings is of prime policy importance. However, due to the small number of workers per firm and the possibly long results chain linking management to employment, few MSME-targeted interventions and evaluations address job-related outcomes directly. We do so in a randomized controlled trial (RCT) of a support program for MSMEs in Côte d'Ivoire that included financial management and human resources (HR) components. Six and 18 months after the end of the program, we find muted impacts on business practices, access to finance, and firm performance. On the employment side we find positive and significant impacts on job quality, driven by the share of employees receiving at least the minimum wage and the share with written contracts. We find no significant effect on the number of staff. Taken together, our results underscore the difficulty of boosting firm performance and creating jobs with a low-intensity intervention on the one hand, and the feasibility and importance of improvements in employment quality in MSMEs in developing countries on the other. |
| Keywords: | Côte d'Ivoire, MSME support, employment quality, firm performance, randomized controlled trial |
| JEL: | O12 L26 M10 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:gigawp:305255 |
| By: | Rodrigo Sekkel; Tamon Takamura; Yaz Terajima |
| Abstract: | This paper analyzes the dynamic and heterogeneous responses of loan performance to a monetary-policy shock using loan-level panel data for small-scale private firms in Canada. Our dataset contains detailed loan characteristics information that allows us to distinguish the effects of the aggregate-demand channel, which affects loan performance through general-equilibrium effects, and the cash-flow channel that directly impacts debt service of firms through variable rates. We find that the effects on loan performance through both channels materialize with a delay and are persistent over time. The peak effect of the cash-flow channel is as large as that of the aggregate-demand channel. Moreover, we investigate whether collateral can reduce the sensitivity of variable-rate loan performance to a policy-rate shock through an ex post disciplinary effect that incentivizes loan repayment by small firms. We find that collateral induces repayment incentives of borrowers relative to unsecured loans but only for ex ante safe loans that are used for investment rather than for other purposes such as working capital. This implies that collateral has a limited impact on reducing financial frictions of small firms. |
| Keywords: | Monetary policy transmission; firm dynamics |
| JEL: | C32 E17 E37 E52 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-41 |
| 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: | Depuis le début des années 2000, l'industrie de l'accompagnement entrepreneurial est particulièrement dynamique et foisonnante, et ce, au niveau international. Ce contexte participe à la reconnaissance du rôle des incubateurs d'entreprises, mais contribue à la création d'un environnement concurrentiel où les ressources financières s'amenuisent. La construction de la légitimité semble dès lors un enjeu pour ces organisations. Paraitre légitime permettrait à un incubateur d'attirer des entrepreneurs et des financeurs publics ou privés pour tirer leur épingle du jeu concurrentiel. Dans cette recherche, nous nous focalisons sur la compréhension du processus de légitimation en contexte d'accompagnement entrepreneurial. Une étude de cas multiple a été réalisée auprès de trois incubateurs français. Les premiers résultats révèlent une chronologie des mécanismes de légitimation identitaire, associatif et organisationnel utilisés par les incubateurs lors de leurs processus de légitimation. Nous présentons également une typologie des contributions des membres de l'incubateur au processus de légitimation, fondée sur leur niveau d'engagement et leurs motivations professionnelles. Les principales contributions de ce travail sont de proposer une analyse processuelle de la légitimation des incubateurs, et de repositionner les membres de l'incubateur dans le développement de la légitimité. |
| Keywords: | incubateur, légitimation, processus, étude de cas |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04753133 |