nep-ent New Economics Papers
on Entrepreneurship
Issue of 2025–09–15
five papers chosen by
Marcus Dejardin, Université de Namur


  1. Entrepreneurial belonging: Migrant entrepreneurs' connections and community in bounded and unbounded ecosystems By David, Alexandra; Terstriep, Judith; Freiling, Jörg
  2. How Do Minimum Wages Affect Nonemployer Businesses in the United States? By Lyu, Ke; Fossen, Frank M.
  3. Youth, Labor Market Dynamics, and the Role of Entrepreneurship in Bhutan By Carlos Alberto Coca Gamito; Silvia Garcia Mandico
  4. Location Matters: Insights from a Natural Field Experiment to Enhance Small Business Tax Compliance in Indonesia By Dong, Sarah; Satyadini, Agung; Sinning, Mathias
  5. Barriers to circular economy adoption in MSMEs: a WINGS analysis of challenges in developing economies By Mishra, Sarmistha; Sahoo, Dukhabandhu; Mohapatra, Souryabrata

  1. By: David, Alexandra; Terstriep, Judith; Freiling, Jörg
    Abstract: A 'sense of belonging' is essential for migrant entrepreneurs (MEs), influencing not only their integration but also their success within entrepreneurial ecosystems (EEs). This concept transcends mere economic involvement, delving into critical psychosocial dimensions often overlooked in traditional EE research. The study highlights how a robust sense of belonging significantly enhances business success for MEs. In contrast, its absence can lead to issues such as 'ecosystem hopping'. The interim findings call policymakers and practitioners to prioritise belonging in ecosystem design, fostering environments that are equitable and supportive, thus improving the well-being and business outcomes for diverse entrepreneurial communities.
    Keywords: migrant entrepreneurship, sense of belonging, community, entrepreneurial ecosystems
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:iatfor:324900
  2. By: Lyu, Ke (Nevada State University); Fossen, Frank M. (University of Nevada, Reno)
    Abstract: This paper investigates the impact of minimum wage increases on nonemployer business establishments in the United States. We develop a theoretical model of occupational choice and estimate effects using panel data from the Nonemployer Statistics (2001-2020). Our identification strategy compares contiguous counties across state borders. Results show that a $1 increase in the minimum wage reduces the number of nonemployers by 0.5%-0.9%, likely due to relatively more attractive wage jobs. The effect is smaller in counties with higher shares of minorities, females, and lower education, while the transportation sector expands due to the gig economy. Further analysis reveals that higher minimum wages discourage transitions from nonemployer to employer status and increase shifts from self-employment to wage work or unemployment, showing how this regulation shapes entrepreneurship dynamics.
    Keywords: entrepreneurship, nonemployer businesses, minimum wages
    JEL: J24 J38 L26
    Date: 2025–08
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18101
  3. By: Carlos Alberto Coca Gamito (Asian Development Bank); Silvia Garcia Mandico (Asian Development Bank)
    Abstract: Young people in Bhutan face rising rates of exclusion from employment, education, or training, and limited access to quality jobs, despite gains in education. Entrepreneurship is often viewed as an alternative pathway, but most youth-led ventures remain necessity-driven, informal, and short-lived. Using data from the 2018–2023 Labor Force Survey and the 2024 Jobs and Skills Survey, this paper examines youth entrepreneurship dynamics, including motivations, earnings, productivity, and sectoral patterns. Findings show that opportunity-driven entrepreneurs—especially young women—achieve higher earnings and productivity, but few business ventures by young people transition beyond the early stages. A shift from necessity-driven to opportunity-driven entrepreneurship could yield economic gains equivalent to 1.4% of gross domestic product. Realizing this potential requires gender-responsive, stage-specific support and embedding entrepreneurship within a broader strategy for decent work and inclusive growth.
    Keywords: youth employment;entrepreneurship;decent work;gender and labor market;labor market dynamics
    JEL: J13 J21 J24 L26 O17
    Date: 2025–09–12
    URL: https://d.repec.org/n?u=RePEc:ris:adbewp:021528
  4. By: Dong, Sarah (Australian National University); Satyadini, Agung (Australian National University); Sinning, Mathias (Australian National University)
    Abstract: Both theory and evidence suggest an ambiguous relationship between business tax compliance and geographic proximity to tax offices. We study this issue using a large-scale natural field experiment with Indonesia’s tax authority involving 12, 000 micro, small, and medium enterprises (MSMEs). Businesses were randomly assigned to receive deterrence, information, or public goods letters, or no message. All letters improved compliance, with deterrence messages producing the largest gains - substantially increasing filing rates and raising monthly tax payments. Each dollar spent on deterrence letters generated about US$30 in additional revenue over the course of a year. We observe high compliance among non-treated MSMEs near metropolitan tax offices and find that enforcement messages successfully raise compliance in non-metropolitan regions to comparable levels. However, targeting already compliant MSMEs near metropolitan tax offices backfires, underscoring the need for geographically tailored tax administration strategies. These results provide novel experimental evidence on the relation between geographic proximity and the effectiveness of tax enforcement, helping to reconcile mixed findings in the tax compliance literature.
    Keywords: behavioral insights, natural field experiment, tax compliance
    JEL: C93 D90 H25 H26
    Date: 2025–09
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18108
  5. By: Mishra, Sarmistha; Sahoo, Dukhabandhu; Mohapatra, Souryabrata
    Abstract: The transition to a circular economy (CE) is a crucial global goal aimed at promoting sustainable production and consumption. However, its adoption among Micro, Small, and Medium Enterprises (MSMEs) in developing economies remains constrained by multiple barriers. This study builds upon prior research that identified sixteen key barriers to CE adoption through a systematic literature review. Employing the Weighted Influence Non-linear Gauge System (WINGS) method, the study ranks the barriers in terms of their internal strength as well as their intensity to influence other barriers in the specific context of MSMEs. Expert evaluations indicate that lack of investment support, financial constraints, lack of resource efficiency, inadequate infrastructure, and limited potential knowledge are the most influential barriers. The WINGS analysis also reveals that lack of investment support and lack of information are the two primary barriers affecting the greatest number of other barriers. Hence, the findings of our study suggest the urgent need for targeted policy interventions to enhance financial capacity, knowledge dissemination, and infrastructural support, collectively facilitating MSMEs’ transition to CE practices. This study contributes to the literature by identifying and prioritising the key barriers, as well as identifying the interconnectedness among them, which serves as a guide in order to design effective strategies supporting MSMEs in overcoming CE adoption barriers, thereby fostering sustainable economic growth in developing economies.
    Keywords: Barriers, Circular Economy, Developing Economies, MSMEs, WINGS
    JEL: C44 M13 O31 Q5 R19
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:125808

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