|
on Entrepreneurship |
| By: | Hossain, Md Mobarak (Northern Arizona University); Fossen, Frank M. (University of Nevada, Reno); Mukhopadhyay, Sankar (University of Nevada, Reno) |
| Abstract: | What motivates individuals to become entrepreneurs and create jobs? We develop and estimate a dynamic structural microeconometric model that accounts for both employer and non-employer entrepreneurs. Individuals in each period choose to work as an employee, as one of the two entrepreneur types, or remain non-employed. Different work experiences may affect earnings in the three sectors differently. The estimated model replicates key data patterns. The results suggest that experience in employment provides positive returns in entrepreneurship, but entrepreneurial experience does not have positive returns in employment. The model is used to simulate how policy scenarios would affect individuals' entrepreneurial choices. |
| Keywords: | dynamic structural model, employer, entrepreneurship, life cycle |
| JEL: | J22 J23 L26 C61 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18009 |
| By: | Lundberg, Jacob (Research Institute of Industrial Economics (IFN)); Massenz, Gabriella (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We use a natural experiment and administrative data to study the effect of corporate tax cuts on business activity. For identification, we exploit the abolition of municipal corporate income taxation in Sweden in 1985, which created variation in corporate tax changes faced by different municipalities. Our findings indicate an expansion of business activity and employment in large firms following a tax cut. However, we find no significant impact on these outcomes for small firms. In addition, firm entry rates increase in municipalities experiencing the largest tax cuts. |
| Keywords: | Corporate taxation; Business activity; Employment; Firm entry |
| JEL: | G31 G38 H21 H25 |
| Date: | 2025–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1531 |
| By: | Garnadt, Niklas; Füner, Lena (Centre for European Economic Research (ZEW), TUM, and IAB); Stahl, Konrad (University of Mannheim, CEPR, CESifo and ZEW); Tåg, Joacim (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Identifying high growth startups ex-ante and fostering their success is an important policy challenge. Using Swedish registry data, we show that previous labor market earnings of entrepreneurs is a simple observable that is strongly correlated with entrepreneurship success. Entrepreneurs from the top decile of income from dependent employment are four times more likely to succeed than those from the lowest decile. Their firms are larger and more productive from the outset, and this effect intensifies over time. This correlation is virtually unaffected by variations in the entrepreneurs’ personal traits. It does also not vary across the business cycle. |
| Keywords: | Entrepreneurship; High-growth startups; Labor income; Unemployment |
| JEL: | J24 L26 M13 |
| Date: | 2025–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1529 |
| By: | Éva Komlósi (University of Pécs); Hanga Bilicz (University of Pécs); Erkko Autio (Imperial College London); Donghyun Park (Asian Development Bank); Shu Tian (Asian Development Bank) |
| Abstract: | This study examines the impact of digitalization on the context shaping male and female entrepreneurial potential across 78 economies, utilizing the Female Entrepreneurship Index (FEI) and the Male Entrepreneurship Index (MEI). By analyzing the effects of digital transformation, the study aims to understand whether digital tools can reduce gender disparities in entrepreneurship or if they primarily benefit one gender. Findings indicate a positive effect of digitalization on both FEI and MEI, affirming that digital readiness enhances entrepreneurial opportunities for all. However, in economies where MEI surpasses FEI, digitalization tends to widen the gender gap, with male entrepreneurs gaining a disproportionate advantage. Conversely, in contexts where female entrepreneurship dominates, digitalization does not significantly impact the MEI–FEI gap. Additional analyses reveal that factors like economic development (gross domestic product per capita) and gender inequalities (political empowerment of women) interact with digitalization to support both genders, though competitive environments are notably more influential on female entrepreneurial potential. These insights highlight the nuanced role of digitalization in fostering entrepreneurship, suggesting policies must consider these dynamics to effectively support gender-balanced growth in entrepreneurial ecosystems. |
| Keywords: | entrepreneurship;female entrepreneurship;male entrepreneurship;gender;Female Entrepreneurship Index |
| JEL: | L26 O33 J16 |
| Date: | 2025–08–15 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021495 |
| By: | Jupić, Nedžad; Gadžo, Amra |
| Abstract: | This paper examines the degree of implementation of artificial intelligence (AI) tools within accounting information systems in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina, with the objective of identifying the perceived benefits, key barriers, and their effects on business performance. The research was conducted on a sample of 99 enterprises, utilising a structured questionnaire. Findings reveal that only 21.21% of enterprises currently employ AI tools in their accounting processes, while a mere 20% of respondents make use of advanced document management systems (DMS) or cloud-based solutions—technologies that facilitate integration with AI. The research highlights a generally positive attitude among respondents regarding the impact of AI application on SME operations. The highest average rating was attributed to the statement that AI enhances the efficiency of accounting processes (4.22), followed by improved quality of financial reporting (4.02) and more effective managerial decision-making (3.93), indicating a recognised added value of AI tools in the areas of analytics and decision support. The main obstacles to AI adoption, as identified by respondents, include a lack of knowledge and expertise (3.80) and insufficient regulatory framework (3.73). In terms of financial readiness to invest in AI technologies, 44.40% of enterprises indicated willingness to invest up to approximately EUR 500 annually, 37.40% between EUR 500 and 1, 000, and only 18.20% more than EUR 1, 000. Overall, the findings suggest a significant, yet underutilised potential of AI tools in SME accounting, characterised by favourable user perceptions but constrained by educational, financial, and legislative limitations. |
| Keywords: | AI tools, accounting digitalisation, business enhancement, small and medium-sized enterprises |
| JEL: | M41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:324135 |
| By: | Venkat Ram Reddy Ganuthula; Ramesh Kuruva |
| Abstract: | This study explores the structural and performance impacts of artificial intelligence (AI) adoption on Indias knowledge intensive startups, spanning information technology, financial technology, health technology, and educational technology, founded between 2016 and 2025. Using a natural experiment framework with the founding year as an exogenous treatment proxy, it examines firm size, revenue productivity, valuation efficiency, and capital utilization across pre AI and AI era cohorts. Findings reveal larger structures and lower efficiency in AI era firms, supported by a dataset of 914 cleaned firms. The study offers insights into AIs transformative role, suggesting that while AI era firms attract higher funding and achieve higher absolute valuations, their per employee productivity and efficiency ratios are lower, potentially indicating earlystage investments in technology that have yet to yield proportional returns. This informs global entrepreneurial strategies while highlighting the need for longitudinal research on sustainability. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.19775 |
| By: | Chen Yujia; Ding Zhenghong; Barbaglia Luca (European Commission - JRC); Calabrese Raffaella; Fatica Serena (European Commission - JRC) |
| Abstract: | "This paper assesses the impact of floods on credit to European small and medium-sized enterprises (SMEs) using a discrete-time survival model. We find a statistically significant relationship between the default probability of loans to SMEs and floods occurring in the region where the firm is located. We propose a micro-level stress testing exercise to assess the performance of small business loans under different climate scenarios.Our results allow us to identify the European regions with heightened vulnerability under a stressed climate scenario and to quantify the impacts upon individual firms in terms of increases in loan default probability." |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:jrs:wpaper:202506 |
| By: | Keisuke KONDO; Toshihiro OKUBO |
| Abstract: | This study focuses on the Japanese leisure industry, including golf, bowling, and amusement and theme parks, to empirically evaluate the impact of the COVID-19 pandemic on business performance. Given the necessity for interpersonal interaction in the leisure industry, the restrictions on outings due to the COVID-19 outbreaks had a considerable impact on business operations. The novelty of this study lies in its integration of establishment-level microdata with geocoded location information and human mobility data collected as big data, to assess the impact of surrounding locations on business performance before and during the COVID-19 outbreak. Using establishment-level monthly panel data from January 2019 to December 2021, this study finds the direct negative effects of the COVID-19 outbreak on business performance. Interestingly, the COVID-19 pandemic led to structural changes in the relationship between business performance and weekday outings, suggesting behavioral changes in leisure activities. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25074 |