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on Entrepreneurship |
| By: | Gibson, Gráinne; Lenihan, Helena; Perez-Alaniz, Mauricio; Rammer, Christian |
| Abstract: | Climate change can cause major challenges for Small and Medium-sized Enterprises (SMEs). Responding and adapting to such challenges is crucial, as SMEs are vital for driving economic growth and employment in most countries. Investing in R&D is a key way in which SMEs can build the capacities required for responding and adapting to climate change-related challenges. However, the extent to which such challenges affect SMEs' R&D activities remains a critical gap in existing knowledge. Using detailed firm-level data on 1, 730 SMEs in Ireland, our study is the first to explore this issue. We achieve this, using information on SMEs' climate changerelated challenges, from a new module of the 2018-2020 wave of the Irish part of the Community Innovation Survey (CIS), the Innovation in Irish Enterprises Survey (IIE). By combining a matching approach with probit regression analysis, we find that climate changerelated challenges can increase the probability of SMEs investing in R&D. Such challenges can also increase the probability of SMEs engaging in continuous, as opposed to occasional R&D. Based on our findings, the above impacts are mainly driven by climate change, resulting in higher costs/input prices. Our study highlights the importance of R&D for SMEs to adapt and respond to climate change and provides critical insights for SMEs and policymakers alike. |
| Keywords: | Climate change-related challenges, small and medium sized enterprises, research and development, climate change adaptation, climate change mitigation |
| JEL: | Q54 Q55 O32 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319901 |
| By: | Davide Consoli; Francesco Lelli; FSandro Montresor; Francois Perruchas; Francesco Rentocchini |
| Abstract: | Given the crucial role of Venture Capital (VC) in financing the green transition, and its uneven geographical distribution, we examine how the proximity of VC investors to green start-ups influences the success of their deals. Considering the intrinsically higher risk profile of start-ups in the greensector, we maintain that their spatial proximity to VC investors will have a larger effect here than in other sectors. Furthermore, considering recent advancements in the digitalization of VC, we also argue that a digital kind of proximity between investors and green investees in accessing digital technologies (platforms) could matter for that, by also reducing the binding effect of spatial proximity on the success of VC green deals. Using data from Dealroom, and combining them with the SpeedTest open dataset by Ookla, we test for these arguments with respect to a large sample of about 12, 000 green start-ups, originally identified by combining multiple methods (text scraping, topic modelling, and machine learning), located in 27 EU (+3) countries from 2000 to 2020. Econometric estimates at the level of realised vs. potential VC green deals confirm that spatial proximity is more relevant for green than for non-green start-ups. The new quasi- dyadic indicator of digital proximity that we propose does also significantly and positively correlates with the actual occurrence of green deals, and negatively moderate the effect of spatial proximity, supporting our argument of a substitution relationship between the two. Policy implications are drawn accordingly. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2521 |
| By: | Kendzia, Michael Jan (Zurich University of Applied Sciences (ZHAW)); Neville, Tomas (Zurich University of Applied Sciences (ZHAW)); Gadgil, Maya (Zurich University of Applied Sciences (ZHAW)) |
| Abstract: | This study investigates the key drivers behind the wealth accumulation of America’s 100 richest self-made billionaires, using data from the Forbes 400 list. Focusing on five individual and contextual factors—education, innovation, networks, inheritance, and geographic origins—the research applies regression analysis to evaluate the statistical significance and predictive power of each. The results show that education, especially from elite institutions, is a strong and consistent predictor of wealth. Innovation, measured by patents and entrepreneurial activity, shows the strongest correlation, emphasizing its centrality in modern wealth creation. Networks—both personal and professional—also play a crucial role, though they interact with other variables. In contrast, inheritance and geographic origins, while influential, exhibit weaker statistical associations. Notably, 89% of the cohort received little or no family funding, underscoring the importance of individual agency and external investment. The findings challenge assumptions about inherited wealth and highlight the role of human capital, innovation ecosystems, and urban opportunity structures in financial success. |
| Keywords: | education and innovation, entrepreneurship, wealth accumulation, social mobility, economic mobility |
| JEL: | J24 D31 L26 O31 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17994 |
| By: | Krieger, Bastian; Füner, Lena; Prüfer, Malte |
| Abstract: | Public procurement offers sizable market opportunities for young firms. We investigate the firm- and founder-level characteristics determining young firms' decision to apply for public tenders, as well as the procurers' selection of an awardee. We distinguish between observable and unobservable characteristics as well as price-based tenders (tenders awarded solely on the price criterion) and criteria-based tenders (tenders awarded based on additional criteria next to the price). Using representative survey data for 4, 314 young firms in Germany, we estimate a multinomial two-stage selection model. In the first stage, firms decide to "not apply, " to "apply for price-based tenders, " or to "apply for criteria-based tenders." In the second stage, procurers choose the awardee among the applicants of each tender type. We find the firm and founder determinants largely differ with regard to the first and second stage, as well as price- and criteria-based tenders. |
| Keywords: | Public procurement, Young firms |
| JEL: | H57 L26 O38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319891 |
| By: | Yoshiki Ando |
| Abstract: | Motivated by the substantial growth and upfront investments of venture capital (VC) backed firms observed in administrative US Census data, this paper develops a firm dynamics model over the life cycle. In the model, startups choose the source of financing from VC, Angel investors, or banks, depending on their growth potential, and invest in innovation. The calibrated model explains the life-cycle dynamics of firms with different sources of financing and implies that venture capitalists’ advice accounts for around 22% of the growth of VC-backed firms. A counterfactual economy without VC financing would lose aggregate consumption by around 0.4%. |
| Keywords: | Venture capital, firm dynamics, innovation, upfront investment, defaultable debt, endogenous sorting |
| JEL: | D22 D25 E22 G24 G30 O32 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-38 |
| By: | Buehren, Niklas; Papineni, Sreelakshmi |
| Abstract: | This paper examines implicit gender bias in entrepreneurial financing by randomizing screenings of business investment ideas pitched in the format of the reality television show Chigign Tobiya. Keeping business idea and pitch quality constant, the experiment randomizes whether a female or male entrepreneur delivers the pitch across three different business sectors. The findings suggest that, on average, gender does not affect recommended investment; however, the sector matters. Some sectors attract greater investment than others. Our findings are consistent with discrimination against women in traditionally male-dominated sectors and discrimination against men in female-dominated sectors. Men are perceived as better negotiators and leaders in sectors that attract higher investment. These are also the sectors in which women are typically underrepresented. Exposure to women in leadership positions and information provided during the screenings can increase investment in women’s businesses. |
| Date: | 2025–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11152 |
| By: | Federico Barbiellini Amidei (Bank of Italy); Matteo Gomellini (Bank of Italy); Lorenzo Incoronato (CSEF, University of Naples Federico II, CESifo, CReAM and Rockwool Foundation Berlin); Paolo Piselli (Bank of Italy) |
| Abstract: | This paper studies the relationship between demographic change and entrepreneurship and highlights its spatial dimension. We digitize historical censuses to reconstruct entrepreneurship rates and the age structure of Italian provinces since1960. We develop an estimation framework that relates entrepreneurship to granular age cohorts of the local population, leveraging instrumental variables to address endogeneity issues. Our results uncover stark regional heterogeneity. In Northern Italy, we find a hump-shaped age-entrepreneurship profile peaking at cohorts aged 30-40. In the South, entrepreneurship increases with age. Regional differences in the local business environment partly account for different estimated profiles. |
| Keywords: | entrepreneurship, demographic change, regional differences, long run |
| JEL: | J11 L26 R11 |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:752 |
| By: | Reher, Leonie; Thomä, Jörg; Bizer, Kilian |
| Abstract: | This paper advances the empirical measurement of the Doing-Using-Interacting (DUI) mode of innovation, based on the conceptual framework of Alhusen et al. (2021) and its survey-based operationalization of Reher et al. (2024b). Using data from German SMEs, we examine whether the three-dimensional structure of DUI learning theorized in the literature can be mirrored empirically. Exploratory factor analysis (EFA) confirms this latent structure by identifying three main learning processes: (1) DUI internal (learning-by-doing and internal interaction), (2) DUI user-driven (learning-by-using), and (3) DUI external (learning-by-externalinteraction). However, some factor loadings are problematic, suggesting that not all of the original indicators are suitable for measuring the DUI mode of innovation. Secondly, building on the latent structure identified through EFA, short scales of various lengths are developed using Ant Colony Optimization (ACO) to address practical constraints in innovation surveys. This provides a starting point for the further development of DUI innovation indicators that are particularly suited to less RD-intensive innovation contexts, such as small firms, low-tech sectors, and lagging regions, as well as corresponding short scales. |
| Abstract: | Diese Studie verbessert die empirische Messung des Doing-Using-Interacting (DUI)-Innovationsmodus auf Grundlage des konzeptionellen Rahmens von Alhusen et al. (2021) und der umfragebasierten Operationalisierung von Reher et al. (2024b). Anhand von Daten deutscher KMU wird untersucht, ob sich die in der Literatur theoretisch hergeleitete dreidimensionale Struktur des DUI-Lernens auch empirisch abbilden lässt. Eine explorative Faktorenanalyse (EFA) bestätigt diese latente Struktur, indem sie drei zentrale Lernprozesse identifiziert: 1. DUI internal: beschreibt die innerbetriebliche Bedeutung von Schulungen, Fehlerkultur, (informellen) Wissensaustauschs oder des Personalmanagements im Innovationsprozess. 2. DUI user-driven: bezieht sich auf die Einbindung von Kundenwissen in Innovationen durch Kooperation, Kundenkontakt oder Produktspezifikationen. 3. DUI external: umfasst innovationsbezogenes Lernen durch den Austausch mit Zulieferern, Wettbewerbern, Akteuren innerhalb und außerhalb des eigenen Sektors, Beratungsunternehmen und öffentlichen Institutionen sowie die Bedeutung von Netzwerken und Branchenverbänden. Einige Faktorladungen sind jedoch problematisch, was darauf hindeutet, dass nicht alle ursprünglichen Indikatoren zur Messung des DUI-Innovationsmodus geeignet sind. Darüber hinaus werden - basierend auf der durch die EFA identifizierten latenten Struktur - mittels Ant Colony Optimization (ACO) Kurzskalen unterschiedlicher Länge entwickelt, um praktischen Einschränkungen in Innovationsumfragen zu begegnen. Dies stellt einen Ausgangspunkt für die Weiterentwicklung von DUI-Innovationsindikatoren dar, die insbesondere für weniger F&E-intensive Innovationskontexte geeignet sind - etwa in kleinen Unternehmen, in Low-Tech-Sektoren oder in strukturschwachen Regionen - sowie für entsprechende Kurzskalen. |
| Keywords: | innovation measurement, innovation indicator, modes of innovation, SMEs |
| JEL: | O30 O31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:321860 |
| By: | Bhargava, Pranay |
| Abstract: | In India, entrepreneurship is often reduced to skilling combined with nano-finance. Public programs largely wash their hands after budgeting for short-term training, linking to microfinance, and creating shared infrastructure — all designed to serve large numbers of mass entrepreneurs at subsistence levels. This paper takes a 180-degree sharp reversal of that approach. It argues that by ignoring the more aspirational, growth-ready entrepreneurs — those sitting at the top of the local entrepreneurial networks — current policies are actually promoting enterprises sub-optimally, and failing to unlock the real potential of India’s unincorporated sector. The paper proposes an Acceleration Model focused on identifying and backing Barefoot Unicorns — the high-aspiration HWEs and αHWEs strategically positioned at the top of local entrepreneurial networks — through adaptive incubation, behavioral conditioning, flexible finance (revenue-based financing, micro-equity), and network-driven scale, aligned to the unpredictable, non-linear journey toward Product–Market Fit (PMF). Even a modest shift could unlock 18 crore new jobs. This paper offers a strategic blueprint for governments, catalysts, CSR, incubators, investors, lenders, and DPI ecosystem actors to move beyond outcome-poor schemes towards high-leverage, ROI-maximizing entrepreneurship models. |
| Keywords: | MSME policy India; MSME job creation; Revenue-based financing; Rural entrepreneurship; Micro enterprises; MSME cluster development; High-growth entrepreneurship; MSME incubation; Mass entrepreneurship vs high-growth entrepreneurship; Entrepreneurial ecosystem design; Barefoot Unicorns; Hired Worker Enterprises (HWE); Micro-equity; Flexible Finance; Incubator micro enterprises; |
| JEL: | G23 I38 J21 L26 M13 O12 O17 O31 |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125170 |
| By: | Pichyada Pheunpha (Department of Business Management, Faculty of Management Science, Ubon Ratchathani University) |
| Abstract: | SMEs are widely acknowledged as essential economic growth, employment, and innovation drivers in both developed and developing economies. However, to survive and remain competitive, strong business performance is crucial for their success. The research aimed to examine the influence of entrepreneurial characteristics and innovative business creativity on the performance of SMEs in Ubon Ratchathani Province, Thailand. A questionnaire with a reliability coefficient (0.97) at a very high level was used in this study. Area sampling collected 271 small and medium enterprises in Ubon Ratchathani province, Thailand. The statistics used were descriptive statistics and multiple linear regression analysis. The results showed that eight sub-independent variables correlated with the business performance at a very high level (r = 0.87) and can explain or predict the variance of business performance at a high level with 74% (Adjusted R-Square). Seven variables affected the business performance of SMEs with statistical significance at 0.01** and 0.05*, which were entrepreneurial characteristics of management (? = 0.183**), taking risks (? = 0.181**), learning of business innovative creativity (? = 0.17**), creativity (? = 0.16**), innovation (? = 0.159*), operational (? = 0.15*), and autonomy (? = 0.12**), respectively. To enhance the performance of SMEs in Ubon Ratchathani Province, entrepreneurs should focus on improving their business management skills through workshops and tailored training, fostering a culture of calculated risk-taking by creating safe environments for experimentation, such as pilot projects, and investing in continuous learning and development to bolster innovative thinking, including seminars and mentorship programs. Additionally, organizing brainstorming sessions can promote creativity and lead to actionable outcomes from innovative ideas, and supporting employee autonomy will further enhance motivation and innovation. On the government side, creating support programs and facilitating networking opportunities will allow entrepreneurs to share best practices and challenges. Collaboration with research institutions can also drive innovation, while regular assessments of SME needs will ensure relevant and effective policy adjustments. Implementing these strategies will cultivate a more innovative and resilient business environment. |
| Keywords: | Entrepreneurial Characteristics, Business Innovative, Creativity, Business Performance, SMEs |
| JEL: | F14 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:14916813 |
| By: | Shailender Kumar Hooda (Institute for Studies in Industrial Development, New Delhi) |
| Abstract: | Given the crucial role of enhancing investment in Research and Development (R&D) to drive innovation, improve competitive performance, and foster industrial growth through technological advancements, this study investigates the current status, quantum, and trends in R&D investment behaviour at the firm level within India’s organized manufacturing sector. By using unit-level data of Annual Survey of Industries (ASI), study provides nationally representative estimates of R&D propensity and intensity, distinguishing it from prior research constrained by data availability. The study assesses the contributions of small and medium size (SMS) versus large firms in R&D investments across various technology levels in the registered manufacturing sector. Our unique dataset makes this the first research to explore the impact of industry concentration and government incentives such as product-subsidy on R&D activities and intensity for SMS and large units using Cragg double-hurdle model and Heckman selection model, while accounting for other firm-level characteristics. Findings indicate that while overall R&D spending and activity levels are on the rise, though R&D intensity see a declining trend. Notably, SMS firms demonstrate higher R&D intensity in both low- and high-tech sectors compared to larger firms, though their intensity have been dwindling in the wake of pandemic, especially in high-tech industries segment. R&D spending in pharmaceutical industry now accounts for more than half of the overall organized manufacturing sector’s R&D, while the recent decline in R&D spending within the motor vehicle industry is concerning. The double hurdle regression analysis shows that larger firms, those with foreign capital, and those in high-tech industries are more likely to engage in R&D and invest more in it. Factors such as firm age and location in high industrial activity concentration areas also significantly influence R&D investment. Although the product subsidy coefficients were positive, they were less significant in impacting the R&D engagement likelihood, suggesting that while subsidies can support R&D, their direct impacts are often limited. However, firms receiving subsidies on a larger number of products experienced a significant positive influence on their R&D activities. For SMS firms, the results indicate that they may benefit more from subsidies and technology imports, pointing towards potential policy interventions to enhance their R&D efforts. |
| Keywords: | Manufacturing, R&D behaviour, R&D intensity, SMEs, Technology Intensity, Industrial Concentration, Product-Subsidy, India |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sid:wpaper:285 |
| By: | Kay, Rosemarie; Schneck, Stefan |
| Abstract: | Die Geburt eines Kindes stellt häufig einen erheblichen Einschnitt in die Erwerbsbiografie abhängig beschäftigter Frauen dar. Unklar ist, ob dies auch für selbstständig erwerbstätige Frauen gilt. Unsere Auswertungen zeigen, dass selbstständig tätige Frauen später damit beginnen, Kinder zu bekommen, als abhängig beschäftigte. Sie belegen überdies, dass sich die Geburt eines Kindes auch auf die Erwerbstätigkeit von selbstständig erwerbstätigen Frauen auswirkt: Soloselbstständige geben ihren beruflichen Status häufiger in Folge einer Geburt auf als Selbstständige mit Beschäftigten oder abhängig Beschäftigte. Aufgrund der Reduzierung der Arbeitszeit in Folge der Geburt sinkt das Bruttomonatseinkommen, bei selbstständig Tätigen stärker als bei abhängig Beschäftigten. Selbstständig tätige Mütter erhöhen schneller wieder ihre Arbeitszeit als abhängig beschäftigte. |
| Abstract: | The birth of a child often represents a significant break in the employment history of women in paid employment. We investigate whether this also applies to self-employed women. Our analyses show that self-employed women start having children later than women in paid employment. They also show that the birth of a child also has an impact on the employment of selfemployed women: solo self-employed women are more likely to give up their professional status following a birth than self-employed women with employees or paid employed women. Due to the reduction in working hours because of the birth, gross monthly income falls more sharply for self-employed than for paid employed women. Self-employed mothers increase their working hours again more quickly than paid employed mothers. |
| Keywords: | Self-employment, childbirth, income effects, Selbstständigkeit, Geburt eines Kindes, Einkommenseffekte |
| JEL: | J13 J21 J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifmduf:321887 |