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on Entrepreneurship |
| By: | Jesus Fernandez-Villaverde (University of Pennsylvania); Yang Yu (Shanghai Jiao Tong University); Francesco Zanetti (University of Oxford) |
| Abstract: | Defensive hiring of researchers by incumbent firms with monopsony power reduces creative destruction. This mechanism helps explain the simultaneous rise in R&D spending and decline in TFP growth in the US economy over recent decades. We develop a simple model highlighting the critical role of the inelastic supply of research labor in enabling this effect. Empirical evidence confirms that the research labor supply in the US is indeed inelastic and supports other model predictions: incumbent R&D spending is negatively correlated with creative destruction and sectoral TFP growth while extending incumbents’ lifespan. All these effects are amplified when ideas are harder to find. An extended version of the model quantifies these mechanisms’ implications for productivity, innovation, and policy. |
| Keywords: | Productivity growth, innovation, R&D, patents, creative destruction |
| JEL: | E22 L11 O31 O33 |
| Date: | 2025–03–11 |
| URL: | https://d.repec.org/n?u=RePEc:pen:papers:25-007 |
| By: | David, Alexandra; Terstriep, Judith |
| Abstract: | Microaggressions, subtle yet pervasive forms of discrimination, undermine migrant entrepreneurs by adversely affecting their psychological well-being and hindering their business development. Through a qualitative multiplecase approach, we show how microaggressions - such as avoidance and pathologisation - impact the business success of migrant entrepreneurs in Germany. Our study highlights the compounded challenges of intersecting marginalised identities, urging targeted interventions for inclusive entrepreneurial ecosystems. We call for diverse research and strategies to mitigate microaggressions, urging action by policymakers and practitioners to foster an equitable entrepreneurial landscape. |
| Keywords: | migrant entrepreneurship, minority entrepreneurship, ethical microaggressions, entrepreneurial ecosystems |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iatfor:313552 |
| By: | Brüggemann, Immo; Buse, Stephan; Villarreal, Nohemi |
| Abstract: | This paper examines how generative artificial intelligence (AI) can be integrated into the strategic management process to strengthen the resilience of small and medium-sized enterprises (SMEs). The strategic management process is divided into three phases: First, the collection and structuring of unstructured data from the macro- and microeconomic environment takes place. Here, AI provides support by efficiently collecting and clustering relevant information, enabling decision-makers to better assess current trends and developments. In the second phase, the evaluation of internal resources, AI helps to capture implicit knowledge within the company and systematically analyze it in order to uncover strengths and weaknesses. In the final phase of strategy development, AI combines internal and external data, generates new strategic approaches and thus supports the derivation of concrete fields of action. AI acts as a partner that significantly improves decision-making and strengthens the company's resilience through sound strategic planning. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:tuhtim:313609 |
| By: | Keogh, Colin |
| Abstract: | This paper explores the development and application of a toolkit designed to facilitate the commercialization of PhD research. The toolkit aims to provide PhD students with the necessary resources and guidance to transform their research into viable commercial products or services. The study draws on a variety of sources, including academic literature and practical examples, to illustrate the potential benefits and challenges of this entrepreneurial approach to research commercialization. |
| Date: | 2023–08–11 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:ws82q_v1 |
| By: | Dieter Van Esbroeck |
| Abstract: | This paper assesses whether the persistence of firm dominance reflects Schumpeterian dynamism or socialization. A cross-country comparison encompassing Europe, North America and Asia using the Forbes Global 2000 reveals comparable levels of dynamism. The evolution over time is examined for the United States based on Compustat and the Fortune 500, finding an increase in dynamism since 1950. An analysis of the Brussels Stock Exchange shows that the survival probability at the top has remained fairly stable in Belgium for almost two centuries. Generally, firms have a similar chance of survival at the top irrespective of their ranking and firms that have been present longer at the top have a slight advantage for persistence. Multiple mechanisms are identified as potential drivers. The empirical results suggest a Poisson process to model large firm dynamics which, combined with geometric Brownian motion, leads to power-law behavior in the tail of firm size. |
| Keywords: | Firm dynamics; superstar firms; business dynamism; creative destruction. |
| Date: | 2025–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:ete:vivwps:760653 |
| By: | Nobuaki Hamaguchi (Research Institute for Economics and Business Administration, Kobe University and Research Institute of Economy, Trade and Industry, JAPAN); Joao Carlos Ferraz (Institute of Economics, Federal University of Rio de Janeiro, BRAZIL) |
| Abstract: | The objective of this article is to determine and analyse the factors behind the growth of Japanese startups. The framework of reference is derived from the Resource Based View of the firm (Penrose 2009) and the quantitative analysis relies on data from a survey carried out in 2022 with 753 Japanese startups. The article assesses internal (entrepreneur, workforce, innovation) and external (finance, knowledge access and location) resources under uncertainty. Econometric findings suggest that larger but younger firms with a domestic market orientation, and experienced entrepreneurs drive growth, while intellectual property ownership and equity financing for fixed capital investment positively impact economic success. Market-product mismatches and weak supplier quality hinder growth, and Tokyo's location benefits ICT start-ups but not others. Employment growth, though weakly linked to sales growth is strongly influenced by business confidence and access to skilled labour and investors. These findings provide strategic insights to inform policies to foster start-up success in Japan. |
| Keywords: | Internal resource; External resource; Uncertainty |
| JEL: | M13 O32 G32 R58 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:kob:dpaper:dp2025-05 |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | Policymakers around the globe have sought to stimulate Venture Capital (VC) investments, and an extensive literature has inquired into the institutional determinants of a vibrant VC market, including corporate law. We contribute to that literature by exploring the significance of corporate law for VC contracting and hence VC investments. Corporate law's relative rigidity or flexibility is key to the efficiency of the contractual technology governing VC deals. Importantly, it can hamper such transactions through a number of "constraints, " which we have identified in a companion paper. To illustrate our point, in another companion paper, we take German and Italian corporate laws as two case studies and show how they are largely averse to VC contracting. In addition, we show that the regulatory constraints they impose stem from blackletter corporate law much less often than from scholarly constructs and courts' interpretations. This chapter anticipates two objections that cast doubt over the importance of our findings as to the construction of vibrant VC markets in Germany and Italy. Specifically, the first of these objections is that VC funds and entrepreneurs planning to run their startups in Germany and Italy can circumvent the strictures of local corporate laws by incorporating abroad, and the other is that formal contracts are inconsequential in VC deals, meaning that the regulatory constraints we document are irrelevant. Meanwhile, the chapter also shows that the detailed understanding of regulatory constraints unveiled by our research can inform more effective policymaking. Ultimately, we make two policy recommendations: first, we propose the adoption of a statutory provision that would explicitly insulate the arrangements that typically shape U.S. VC deals from undue interventions; and, second, we argue in favor of a standard charter aligned with U.S. VC transactional practice that the law itself should declare entirely enforceable. |
| Keywords: | Comparative Corporate Law, Comparative Corporate Governance, Entrepreneurship, Financial Contracting, Private Ordering, Startups, Venture Capital, Entrepreneurial Finance |
| JEL: | G38 K22 L26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:313650 |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | Venture capital ("VC") has built a solid reputation for spurring innovation and economic growth, thus emerging as a crown jewel of the U.S. economy since the 1980s. The development of the U.S. VC market has benefited from the enabling nature of U.S. (Delaware) corporate law, which allows parties to devise a complex contractual framework that economists consider the best realworld solution to the market frictions bedeviling the finance of high-tech innovative projects. The law and finance literature has paid attention to corporate law as one of the determinants of VC investments by examining how variations in shareholder protection shape VC contracting. It has underscored the importance of flexible corporate law to enable the tailor-made arrangements that define VC-backed firms' unique governance structure. Vice versa, it has also documented anecdotally how mandatory corporate laws can impede the adoption and use of some specific components of the U.S. contractual framework. This article contributes to this literature, first, by conceptualizing, in a general theoretical framework, the role that flexible or rigid corporate law in action plays in supporting or hindering VC. Second, it identifies the channels through which mandatory corporate law constrains VC contracting. Third, it documents the real-world significance of these phenomena by illustrating how the constraints stemming from the corporate law regimes in force in two European jurisdictions, namely Germany and Italy, impact the transplant of the contractual framework governing VC deals in the U.S. |
| Keywords: | Comparative Corporate Law, Comparative Corporate Governance, Entrepreneurship, Financial Contracting, Private ordering, Start-ups, Venture Capital |
| JEL: | G38 K22 L26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:313649 |
| By: | Travis Baseler (University of Rochester); Thomas Ginn (Center for Global Development); Ibrahim Kasirye (Economic Policy Research Centre); Belinda Muya (International Rescue Committee); Andrew Zeitlin (Georgetown University) |
| Abstract: | Constraints that inhibit small business growth are potentially amplified for groups with limited access to existing business networks like refugees and women. Programs that facilitate intergroup contact, in addition to capital, could potentially raise welfare, especially if incentives are aligned for participants to share information and invest effort in each other's outcomes. In a randomized trial with microentrepreneurs, we vary business grants, inclusion in a mentorship group, the gender and nationality composition of groups, and a "shared fate" component that compensates group members for the success of other members’ businesses. We find that grants substantially improve business outcomes for men, women, refugees, and hosts. Combining mentorship with cash has an additional positive effect for refugee men, but a negative effect relative to cash alone for women who run higher-profit firms. Mentors with higher baseline profits significantly improve mentees' business outcomes, while differences across group gender and nationality compositions are small. The shared fate addition worsens early outcomes in aligned groups but does not affect mixed groups. |
| Keywords: | Microentrepreneurship, Networks, Mentorship, Refugees |
| JEL: | D22 D74 D83 L14 L26 O12 O15 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:wpaper:716 |
| By: | Yasmin Bin-Humam; Julia Constanze Braunmiller; Mahmoud Elsaman |
| Keywords: | Social Development-Social Inclusion & Institutions Finance and Financial Sector Development-Access to Finance Gender-Gender Monitoring and Evaluation Gender-Gender and Economic Policy |
| Date: | 2023–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39659 |
| By: | Flavio de Carolis; Vinzenz Peters |
| Abstract: | We investigate how leverage and the debt maturity structure of SMEs influences their resilience to floods. Using a dataset of six million geo-coded firm-year observations across nine European countries and granular flood maps, we employ dynamic difference- in-differences estimators to assess the economic impacts of floods and the mediating effects of leverage and debt maturity. Our findings highlight a non-linear relationship between leverage and resilience. SMEs with high levels of short-term debt and low levels of long-term debt show more severe reductions in their post-flood employment growth. |
| Keywords: | Economic Resilience; Climate Change; Floods; Leverage; Small- and Medium-Sized Enterprises |
| JEL: | G32 J21 Q54 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:832 |
| By: | Armangue-Jubert, Tristany (Universitat Autònoma de Barcelona and Barcelona School of Economics); Pietrobon, Davide (Department of Economics, Lund University); Ruggieri, Alessandro (CUNEF Universidad) |
| Abstract: | We argue that capital misallocation arises endogenously due to incomplete consumption insurance. We model risk-averse entrepreneurs with heterogeneous productivity who face idiosyncratic output shocks and choose how much capital to rent before uncertainty unfolds. We show that incomplete markets operate as correlated distortions, leading to a reallocation of capital from more to less productive firms relative to the complete markets benchmark. Using Portuguese administrative data, we document that capital misallocation is greater in locations and industries with higher output shock volatility, consistent with our framework. Leveraging the structure of the model, we show that completing insurance markets increases aggregate productivity and income by 64% and 97%, respectively. |
| Keywords: | Insurance; volatility; misallocation; distortions; efficiency. |
| JEL: | D61 E22 L23 L26 |
| Date: | 2025–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lunewp:2025_002 |
| By: | Republic of Korea Ministry of Justice; World Bank |
| Keywords: | Law and Development-Corruption & Anticorruption Law Law and Development-Financial Law Finance and Financial Sector Development-Insurance & Risk Mitigation |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:41171 |
| By: | Muhoza, Benjamin Kanze; Majune, Socrates Kraido |
| Abstract: | Cette etude analyse l'effet de l'instabilite politique sur la performance des entreprises en Republique democratique du Congo (RDC), l'un des pays les plus instables d'Afrique subsaharienne. Nous utilisons des donnees de panel regroupees pour trois series d'enquetes de la Banque mondiale sur les entreprises de la RDC (2006, 2010 et 2013) afin d'analyser l'effet de l'instabilite politique sur cinq mesures de la performance : la croissance des employes, la croissance des ventes, la productivite, l'investissement et le statut d'exportation. Les resultats du modele de changement endogene revelent que l'instabilite politique agit negativement sur la performance des entreprises en RDC. En presence d'instabilite politique, l'augmentation du nombre d'employes, la croissance des ventes, la productivite et la croissance de l'investissement diminuent de maniere significative. Inversement, les entreprises qui ne connaissent pas l'instabilite politique se developpent en termes d'augmentation du nombre d'employes, de croissance des ventes, de productivite, d'investissement et d'activites d'exportation. Nos resultats sont robustes lorsque nous remplacons l'instabilite politique par des pertes dues au vol, au cambriolage et au saccage. A des fins politiques, nous recommandons que la stabilite politique soit renforcee par la bonne volonte politique et la legislation en faveur de la paix. Les entreprises peuvent egalement faire pression en ce sens par l'intermediaire de leurs associations professionnelles et de plateformes telles que les partenariats public-prive qui les relient au gouvernement. |
| Date: | 2024–04–09 |
| URL: | https://d.repec.org/n?u=RePEc:aer:wpaper:788af657-ec2a-4b41-8fab-5abb2ef2e451 |