|
on Entrepreneurship |
| By: | Milovanska-Farrington, Stefani (The University of Tampa); Mateer, Dirk (University of Texas at Austin) |
| Abstract: | This paper builds upon the work of McCaffrey (2016) who explores how economics can enhance entrepreneurship education. We extended the work of McCaffrey in two distinct ways. First, we emphasize the economic understanding every private enterprise needs to be successful. Second, we developed teaching guides which feature three successful Gen Z entrepreneurs – Max Hayden, Mikaila Ulmer, and Alexandr Wang. Their stories embody business acumen and the entrepreneurial ability necessary to succeed in a rapidly changing world. The lessons build upon the work of Milovanska-Farrington et al. (2023) and DeWind et al. (2023) who illustrate foundation-level economic concepts in an engaging way that resonates with Gen Z students. |
| Keywords: | entrepreneurs, principles of economics, private enterprise, Gen Z, Max Hayden, Mikaila Ulmer, Alexandr Wang |
| JEL: | A20 A21 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17638 |
| By: | Kim, Minho |
| Abstract: | South Korea's 'national champion policy, ' designed to foster global enterprises, has yet to deliver measurable outcomes in sales and productivity, suggesting inefficiencies in resource allocation linked to 'the risk of picking winners.' Accordingly, the incentive structure of growth policies for Small- and Medium-Sized Enterprises (SMEs) needs an operational shift, moving away from conventional subsidy assistance toward a bespoke model that integrates private investment, consulting, and networks to address their business challenges collaboratively. Furthermore, in order to enhance policy accountability and effectiveness, it is crucial to consolidate support details and performance outcomes while ensuring transparency through public disclosure. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:309587 |
| By: | Gerth, Florian; Briggs, Chad M.; Diaz, John Francis T. |
| Abstract: | This paper investigates the dynamics of entering and exiting firms in determining the long-lasting drop in aggregate Total Factor Productivity (TFP) following the Great Recession in the UK. We decompose the growth rate of UK industry productivity over the 2006-2014 period into four components; the within, the between, the entry, and the exit effect employing the Diewert and Fox (2010) method using the FAME micro-level dataset. The main factor driving the aggregate TFP decline is the within effect, which is the productivity decline within surviving firms. However, the entry and exit effects also significantly contribute to the long-lasting drop in aggregate TFP. First, exiting firms tend to have higher than average TFP. Second, newly entering firms tend to have lower than average TFP. And third, newly entering firms fail to increase their TFP levels over time, thereby depressing the within effect. |
| Keywords: | Great Recession; Firm Dynamics; United Kingdom; Total Factor Productivity; Credit Rationing |
| JEL: | D24 E13 E32 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123325 |
| By: | Eric Iversen; Arvid Raknerud (Statistics Norway); Marit Klemetsen; Brita Bye (Statistics Norway) |
| Abstract: | What difference does government support of business R&D make to the rate of innovation? Addressing this important question has deep theoretical roots and broadening practical applications in OECD countries. The analysis of output additionality has been hampered by incomplete data combined with adaption of problematic methodologies. In this light, we contribute to the formative literature in three main ways: we analyze comprehensive panel data of Norwegian enterprises over a 20-year period; we include trademarks and industrial designs as well as patents to broaden measures of innovation output; and we apply machine learning methods to estimate treatment effect functions, thereby addressing the problem of a practically unlimited number of potential confounding factors. Our findings support and elaborate earlier work that fiscal stimulus tends to have greatest impact on previously non-innovative firms. The impact of support measures, alone or in combination, is on the extensive rather than intensive margin. For previously R&D-active firms, our results indicate that public support has low additionality and even risks crowding-out private financing of R&D. |
| Keywords: | Innovation; R&D support; Output additionality; Intellectual property rights; Patents; Trademarks; Public policy instruments; Lasso; Double selection; Poisson regression |
| JEL: | C33 C52 O31 O34 O38 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1020 |
| By: | VEUGELERS Reinhilde; AMARAL-GARCIA Sofia (European Commission - JRC) |
| Abstract: | The EU is challenged by a persistent leadership gap in the global health innovation landscape, with the US leading in corporate health innovation and venture capital (VC) funding. The EU health innovation landscape is more concentrated in older "incumbent leading firms, " while the US has a more dynamic landscape with higher R&D growth rates. Financing constraints are highly relevant in the health sector, particularly for startups and scale-ups with risky breakthrough ideas and technologies. The EU-US gap in dynamic innovative performance in health may be partly due to differences in access to risk finance, particularly venture capital. This paper analyzes trends in VC financing for health-related innovations in Europe compared to the US, using data from Dealroom. The results show that the weakness of the European health VC market continues to hold in the early and late stages, where less progress seems to have been made. Some of the main findings include the following: the EU is lagging behind the US in the number of health VC deals, with a larger gap in late-stage deals; European deal sizes are below the US, with a larger gap in late-stage deals, the EU has a lower occurrence of co-investment deals, which does not help reduce the gap in health VC deals. Overall, the European health VC market is particularly missing larger-sized investors (investment funds) with late-stage deals. To address this gap, policy attention is needed to identify and reduce barriers for European health VC investors to grow to a critical scale and engage in a higher number and larger-sized deals. All in all, Europe should further develop and strengthen its strongest asset, i.e., its Open Single Market, reducing the fragmentation in flows of venture capital, reaching a truly single European Venture Capital market. For an EU open strategic autonomy industrial policy for health, an open single market for health remains the critical instrument to further develop and monitor. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202501 |
| By: | Grover, Arti (World Bank); Viollaz, Mariana (CEDLAS-UNLP) |
| Abstract: | This paper provides evidence on the nature of financial constraints faced by women entrepreneurs, especially in contexts of stringent social norms. Using micro-data from the World Bank Enterprise Surveys for 61 countries, the analysis shows that formal firms managed by women do not face credit constraints on the extensive margin. They are equally likely to apply for credit as their male counterparts and experience lower rates of credit rejection, with a higher likelihood of opening credit lines. However, on the intensive margin, firms managed by women receive lower credit amounts, indicating signs of credit constraints. This disparity in access to credit cannot be explained by gender differences in risk profiles, profitability, or productivity. However, firms managed by women have lower sales per worker, suggesting challenges in accessing product and labor markets. The paper finds suggestive evidence of capital misallocation based on gender, particularly in countries with more restrictive gender and cultural norms. Firms managed by women demonstrate a 15 percent higher average return on capital compared to firms managed by men, indicating the potential benefits of increased access to credit for women-led businesses. These findings emphasize the importance of addressing gender-specific constraints to accessing finance and promoting gender-inclusive policies to enhance firm growth and reduce capital misallocation. |
| Keywords: | firms, credit, capital misallocation, gender, social and cultural norms |
| JEL: | D22 D24 J16 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17630 |
| By: | Dolores Añon Higón (Department of Applied Economics II and ERICES, Faculty of Economics (Universitat de València), Avda. Tarongers, s/n, 46022 Valencia (Spain)); Juan A. Máñez (Department of Applied Economics II and ERICES, Faculty of Economics (Universitat de València), Avda. Tarongers, s/n, 46022 Valencia (Spain)); Amparo Sanchis (Department of Applied Economics II and ERICES, Faculty of Economics (Universitat de València), Avda. Tarongers, s/n, 46022 Valencia (Spain)); Juan A. Sanchis (Department of Applied Economics II and ERICES, Faculty of Economics (Universitat de València), Avda. Tarongers, s/n, 46022 Valencia (Spain)) |
| Abstract: | We examine how financial constraints influence the digitalization of Spanish manufacturing firms, taking into account the business cycle. Our study covers a representative sample of Spanish manufacturing firms from 2001 to 2017. We offer empirical insights into the moderating role of the business cycle on the impact of financial constraints on firms’ digitalization efforts, distinguishing between large firms and small and medium-sized enterprises (SMEs). We build a firm-year financial score aimed to mirror the extent of financial constraints, and a synthetic index of digitalization, both at the firm level. We estimate a panel data specification for firms’ digitalization intensity using a fractional response method. Our findings highlight that financial constraints pose a hurdle to digitalization, particularly for SMEs, and show that firms’ digitalization exhibits a counter-cyclical pattern, both for SMEs and large firms. |
| Keywords: | Digitalization, manufacturing firms, financial constraints, business cycle |
| JEL: | L60 L23 M20 O33 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eec:wpaper:2502 |
| By: | Greenland , William (University of Sydney); Toth , Russell (University of Sydney) |
| Abstract: | This paper examines the resilience of micro, small, and medium-sized enterprises (MSMEs) in Fiji against the economic impacts of major shocks including the coronavirus disease (COVID-19) pandemic and climate-related hazards, using a survey of 2, 400 MSMEs from early 2023. The analysis focuses on the effectiveness of government concessional loans in aiding pandemic recovery and evaluates MSMEs’ strategies for climate resilience. Findings indicate that while government support has been pivotal in mitigating pandemic-related economic downturns, its effectiveness is varied, highlighting the necessity of accessible and targeted financial support. Furthermore, experiences with natural hazards significantly influence MSMEs’ future resilience strategies, with a notable preference for self-funding recovery efforts among MSMEs that had experienced a significant climate-related disaster. The study underscores the importance of integrating immediate financial support with long-term climate adaptation strategies for MSMEs, offering insights for policy formulation aimed at enhancing economic resilience in emerging markets in the Pacific and beyond. |
| Keywords: | micro; small; and medium-sized enterprises; COVID-19 pandemic; concessional loans; climate resilience; Fiji |
| JEL: | L53 O56 Q54 |
| Date: | 2025–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0765 |
| By: | Rym Ibrahim (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The primary venue for the dissemination of academic knowledge remains overwhelmingly the classroom; however, the teaching of certain subjects may be subject to critical questioning – or even militant rejection – by students, thereby signalling a certain democratic vitality. In our case, this concerned a teaching module on innovation and entrepreneurship for ecological and solidarity-based transition. These refreshing challenges invite us to take these criticisms seriously and to search for the reasons behind these rejections in the content of the questioned teachings. In this essay, we specifically explore how the adoption of a performative epistemology might guide our ethical reflection as educators. It seems to us that teaching in innovation management and entrepreneurship constitutes an interesting case study, insofar as it raises a singular paradox: these subjects inherently carry the project of social evolution, if not transformation; yet, in doing so, they frequently draw their ontologies from other social science disciplines, particularly economics, whose systems of representation are often criticised. These teachings are now facing the growing politicisation and activism of young people in relation to climate issues and the questioning of an economic system they consider harmful to the planet. |
| Abstract: | Le lieu privilégié de la diffusion des connaissances académiques restant massivement la salle d'enseignement, l'enseignement de certaines matières peut être amenées à faire l'objet de remises en question critiques – voire d'un rejet militant – de la part des étudiants, signalant par là une certaine vitalité démocratique. Pour notre part, elles ont concerné un module d'enseignement en innovation et en entrepreneuriat pour la transition écologique et solidaire. Ces remises en question rafraichissantes nous invitent à prendre au sérieux ces critiques, et rechercher les raisons de ces rejets dans le contenu des enseignements mise en cause. Nous interrogeons notamment dans cet essai la manière dont l'adoption d'une épistémologique performative pourrait guider notre réflexion éthique en tant qu'éducateurs. Il nous semble que les enseignements en management de l'innovation et en entrepreneuriat constituent un cas d'étude intéressant dans la mesure où ils soulèvent un paradoxe singulier : ils portent intrinsèquement en eux le projet d'une évolution, sinon d'une transformation sociale ; ce faisant ils empruntent néanmoins fréquemment leurs ontologies à d'autres disciplines des sciences sociales, en particulier la science économique, dont les systèmes de représentation sont fréquemment décriés. Ces enseignements se confrontent désormais à la politisation et à l'activisme croissant des jeunes en matière de climat, et à la remise en cause d'un système économique qu'ils considèrent comme délétère pour la planète. |
| Keywords: | Innovation, Education, Ontology, Epistemology, Performativity, Entrepreneurship, Entrepreneuriat, Ontologies, Epistémologie, Performativité |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04893674 |
| By: | KOUAKOU, Thiédjé Gaudens-Omer |
| Abstract: | This article analyzes the conditions for endogenous entrepreneurial development, understood as the transition from entrepreneurship by necessity to local entrepreneurship by opportunity. The theoretical model that we develop shows that the presence of foreign-owned companies does not hinder local entrepreneurship by opportunity, but rather stimulates it through mimicry, thus triggering a cumulative dynamic of endogenous entrepreneurial development. The spatial proximity linking potential local entrepreneurs and foreign companies produces a cognitive proximity that allows the former to switch to entrepreneurship by opportunity by imitating the latter. The State can support this dynamic through better coordination of reforms: macroeconomic measures (improvement of the business climate, promotion of foreign direct investment, minimum infrastructure) must precede microeconomic measures (strengthening entrepreneurial capacities, financial support). |
| Keywords: | entrepreneuriat, externalités de savoir, mimétisme, politiques publiques |
| JEL: | D62 L26 L38 L53 |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123464 |