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on Entrepreneurship |
| By: | Bromo, Francesco (University of Oxford); Fuerte, Manuela Munoz |
| Abstract: | Evidence evaluating the effect of the tax structure on the growth and survival of small businesses is often inconclusive. We employ a sharp regression discontinuity design to evaluate a tax relief policy for small businesses introduced in Scotland in 2008. We leverage the exogenous nature of the cut-off that determines whether a business qualifies for a 100% discount on non-domestic rates based on a property’s “rateable value” to assess how the policy impacted the growth and survival of small businesses in the city of Glasgow. We find that the tax relief scheme is associated with heightened growth and survival of small businesses benefiting from the discount in the years following its implementation. However, our results speak to the challenges of fully separating a possible causal effect of the policy from changes induced by sorting or manipulation of assignment to treatment. Further tests indicate that the periodically performed re-evaluations of rateable values tend to concentrate just below the exemption cut-off, suggesting that there are other factors that might be influencing the outcome. |
| Date: | 2025–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:9w7fk_v1 |
| By: | António Afonso; M. Carmen Blanco-Arana |
| Abstract: | This paper assesses the impact of the regulatory environment on the new business creation in 45 Least Developed Countries (LDC) using a panel data from 2000 to 2021. Empirical evidence, derived from a fixed effects (FE) model, indicates a strong relationship between business regulation and new business creation in LDC. This suggests that the regulatory framework of a country is a crucial factor that influences entrepreneurial decisions and can significantly contribute to economic growth. The overall economic situation of a country also has a positive and significant impact. Additionally, factors such as accessibility to financial services, political stability, control of corruption, and economic freedom clearly affect the establishment of new businesses in these countries. Similar results are obtained using the Generalised Method of Moments (GMM) estimator, through the use of a dynamic panel data approach. Finally, business regulation is also strongly associated with new business creation in OECD countries. |
| Keywords: | New business, regulatory environment, FE, GMM, panel data, LDC. |
| JEL: | M20 G18 C23 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03772025 |
| By: | Suren Karapetyan (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Matej Bajgar (CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences; Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | Using a difference-in-differences design and a global database of startups, investors and deals, we study the effect of exits (IPOs and acquisitions) of unicorn companies - privately held startups valued over USD 1 billion - on the subsequent investment activity of their investors. We find that an exit by a unicorn startup increases the number of investments by its investors over the following 3 years by about 7.5% and the value of their investments by about 23%, relative to investors in a matched control group. The effects are driven by IPOs and early investors of the exiting unicorns: a unicorn IPO leads, on average, to 2 additional investments and additional USD 13 million invested by each of the unicorn's early investors. Post-exit investments increase both within and outside of the location and the industry of the exited unicorn, but the growth in investments outside the original geography and industry is more pronounced. The results provide evidence of an important mechanism in which a successful investment exit boosts subsequent venture capital activity, but they also indicate that this activity need not be concentrated in the same locations and industries. |
| Keywords: | Unicorn Exits, IPOs, M&As, Early-stage Investors, Startup Ecosystem |
| JEL: | G24 G32 G34 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_09 |
| By: | Muthitacharoen , Athiphat (Chulalongkorn University); Paweenawat, Archawa (Puey Ungphakorn Institute for Economic Research, Bank of Thailand); Samphantharak , Krislert (School of Global Policy and Strategy, University of California San Diego) |
| Abstract: | This paper investigates the unintended consequences of size-dependent regulations in small and medium-sized enterprise (SME) promotion policies. We use data from all registered Thai firms to analyze the effects of introducing a revenue cap in the SME tax incentive program qualification. Our study shows a marked bunching of firms just below the cap, illustrating tax salience. We provide evidence suggesting that the bunching is due to real operation responses. A differencein-differences analysis indicates that eligible firms just under the threshold exhibit a significant decline in revenue growth compared to those just above it. This adverse effect is more pronounced among firms with lower pre-policy profitability. We also document substantial negative effects on investment and profitability but find no significant impact on firm survival— challenging the assertion that government support enhances SME survival. Our findings also indicate a marked reduction in the presence of large firms, suggesting broader implications on firm size distribution in the economy. We highlight the double-edged nature of size-based SME policies: while intended to help smaller businesses, the measures may inadvertently suppress growth for firms near the threshold and potentially create resource misallocation. This study underscores the need for a careful policy design that supports SMEs without impeding their potential for growth. |
| Keywords: | size-dependent policy; SMEs; bunching; tax incentives; corporate tax |
| JEL: | G30 H20 K30 L20 L50 |
| Date: | 2025–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0778 |
| By: | Robert, Marc |
| Abstract: | This review examines the pivotal role of entrepreneurship in fostering innovation within manufacturing industries. This article synthesises theoretical, empirical, and policy-oriented insights. I explore how entrepreneurial activities, whether through independent start-ups, SMEs, or intrapreneurship within established firms, act as critical catalysts for technological upgrading in manufacturing sectors. The analysis integrates innovation theory, the knowledge spillover perspective, and entrepreneurial ecosystem frameworks, while also emphasising the embedding of entrepreneurship within institutional contexts. Our findings reveal that the effectiveness of entrepreneurial-led manufacturing innovation is highly contingent on factors such as ecosystem health, networks, policy design, and cultural milieu. The review identifies key debates regarding the quality versus quantity of entrepreneurship, the optimal role of the state in ecosystem development, and contextual nuances influencing entrepreneurial outcomes. Emerging research frontiers including digital manufacturing entrepreneurship, comparative ecosystem studies, and multi-level dynamic analyses are proposed as promising avenues for future inquiry. In conclusion, the article asserts that entrepreneurship remains a linchpin of manufacturing innovation, but realising its full potential requires a nuanced orchestration of formal institutions, social capital, firm-level capabilities, and policy interventions aligned with sustainable development goals. |
| Keywords: | Manufacturing innovation; Entrepreneurship; Entrepreneurial ecosystems; Sustainable entrepreneurship; Industry 4.0. |
| JEL: | L6 M2 M21 |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124608 |
| By: | Florian Léon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | In Africa, small and medium-sized enterprises (SMEs) face a chronic financing gap that hinders their growth and the continent's economic development. Development Finance Institutions (DFIs) are often seen as a solution to bridge this gap, particularly through indirect support to local banks. However, an in-depth analysis of their impact reveals mixed results. While targeted beneficiaries benefit from these programs, it is at the expense of other borrowers. There is a need to rethink the support for these DFI-intermediated financing schemes aimed at supporting the SME sector. |
| Keywords: | DFI, Development Finance Institutions, Africa, Small and medium-sized enterprises SMEs |
| Date: | 2025–04–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05026886 |
| By: | Tiriongo, Samuel; Njino, Roselyne; Mulindi, Hillary |
| Abstract: | Micro, Small and Medium-sized Enterprises (MSMEs) are crucial drivers of economic growth. In Kenya, MSMEs represent about 98 percent of all businesses and contribute over 30 percent to the GDP. Despite their essential role in the economy, these enterprises face substantial challenges in accessing bank finance, thereby hindering their growth and development. On this account, this study uses Kenya Bankers Association (KBA) Inuka Impact survey 2024 data with the propensity score matching and difference in difference analysis to examine the impact of banking sector's intervention program on MSMEs ability to access bank credit. The results shows that size and turnover are critical determinants of MSMEs access to finance, and while the interventions by the Inuka program have yielded some positive results, these efforts need to be extended beyond capacity building and training to achieve a stronger and more sustainable impact. Therefore, policies aimed at supporting MSMEs in Kenya should tailored to the distinct stages of MSMEs development, ensuring that interventions are diversified and comprehensive to drive meaningful outcomes in the economy. |
| Keywords: | Lending, debt capital, SME financing, SMEs, micro-enterprises, Kenya |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:316412 |
| By: | Anifowose, Oladotun Larry |
| Abstract: | The crux of this paper was to investigate the extent as well as whether digital finance technologies affect business performance of female owned businesses in Lagos State, Nigeria. This paper empirically examined the effect of digital finance technologies usage among female owned business performance in Lagos state, Nigeria. By looking at female owned enterprises that deal with agribusiness with special interest in aqua foods to build an econometric model to test the hypothesis. Descriptive statistics and Ordinary Least Square was used in the analysis of data collected through structured questionnaire. The study employed Multistage sampling in selecting the respondents from the study areas. Majority of the Female-Owned Business owners in the study area are still in their adulthood age and agile to work. The result showed that Majority (73.33%) of the respondents were High adopters while only 26.67% of the Female-Owned Business owners were Low adopters. POS users has the highest percentage of the high adopters followed by ATM. The implication is that mobile banking adoption level of the respondent was lower compared to all other technological innovations adopted by Female-Owned Business owners in the study area. The result of the OLS shows that only mobile banking and POS have significant effect on the performance of Female-Owned Business owners in the study area at P |
| Keywords: | Digital finance technologies Usage, female owned businesses, Business performance, Nigeria |
| JEL: | M21 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124325 |
| By: | Salma Zouaoui; Ioana Filipas; Punita Raj; François Marmier; Bertrand Rose |
| Abstract: | This study investigates the barriers to Digital Transformation (DT) in French service SMEs. As literature on DT of service SMEs is scarce, this study uses a combination of a literature review analysis of barriers to DT in SMEs and a thematic analysis of the challenges to DT encountered by 26 service SMEs. The research identifies six main categories of barriers: technological barriers, business and strategic barriers, process and operational barriers, organizational barriers, human and talent barriers and security and compliance barriers. This paper highlights that service SMEs highly underestimate the barriers related to human and talent barriers and slightly underestimate organizational barriers while overestimating business and strategic barriers. This paper emphasizes the inadequacy of existing DT strategies designed for larger corporations and raises the need for research in the DT of service sector and particularly of service SMEs. The study also discusses the potential biases inherent in the data collection from reports intended for tax administration and the limitations of the sample size. |
| Keywords: | barrier, challenge, digital transformation, qualitative analysis, Small and Medium-sized Enterprises, thematic analysis. |
| JEL: | L8 L80 O3 O30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-49 |
| By: | Michalski, Tino |
| Abstract: | Internationale Unternehmen können durch die Verlagerung ihrer Business Development-Anstrengungen in nachhaltige regionale High Tech- & High Service-Cluster eine Verbesserung ihrer Business Development-Erfolge im Bereich innovativer nachhaltiger Geschäftsmodelle erzielen. Der vorliegende Artikel beschreibt in diesem Kontext die Evolution und die Entwicklungstendenzen nachhaltiger, branchenspezifischer, regional konzentrierter High Tech- & High Service-Cluster in Deutschland und Europa aus theoretischer und praktischer Perspektive und zeigt danach auf, dass nachhaltige Cluster mit CSR- & ESG-Ausrichtung den nächsten Evolutionsschritt in der Clustertheorie und der Clusterpraxis darstellen. Der Artikel legt dar, dass Unternehmen innovatives nachhaltiges Business Development bevorzugt in solchen nachhaltigen High Tech- & High Service-Clustern betreiben sollten sowie innovative nachhaltige Geschäftsmodelle und Corporate Start-ups bevorzugt in solchen Clustern generieren sollten. |
| Abstract: | International corporations can achieve an improvement in their business development success with regard to innovative sustainable business models by shifting their business development efforts to sustainable regional high tech & high service industry clusters. In this context, this article describes the evolution and development trends of sustainable, industry-specific, regionally concentrated high tech & high service clusters in Germany and Europe from a theoretical and practical perspective and then demonstrates that sustainable high tech & high service clusters with a CSR & ESG orientation represent the next evolutionary step in cluster theory and cluster practice. The article suggests that corporations should preferentially pursue innovative sustainable business development efforts in these sustainable high tech & high service clusters as well as preferentially establish innovative sustainable business models and corporate start-ups in these clusters |
| Keywords: | Hochtechnologie, Unternehmensdienstleistung, Regionales Cluster, Unternehmensgründung, Innovationsmanagement, Multinationales Unternehmen, Deutschland |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fhfwps:316427 |