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on Entrepreneurship |
| By: | Hammarstedt, Mats (Linnaeus University, and) |
| Abstract: | We present results from research on different dimensions of immigrant self-employment in Sweden. There are variations in self-employment rates between different groups of immigrants and the native population. Self-employment rates have increased markedly among certain groups of immigrants since the 1990s. Immigrants from certain countries in the Middle East are over-represented in self-employment, while self-employment rates among immigrants from countries in Africa are relatively low. Immigrants from countries outside Europe are often self-employed in branches with low entry barriers. Exit rates from self-employment are generally higher, and earnings are lower among self-employed non-European immigrants than among self-employed natives and European immigrants. Research regarding explanations for why immigrants opt for self-employment is presented. Results indicate that immigrants are pushed into self-employment due to low earnings in wage-employment. As regards the effects of ethnic enclaves, networks, and traditions from their home countries, the results are inconclusive. Family traditions and parental role models increase self-employment propensities more for immigrants than for natives. Non-European immigrants report that they encounter other difficulties and obstacles in their business activities than natives and European immigrants. They consider lack of access to financial capital and discrimination from banks, customers, and suppliers as obstacles for successful self-employment. Finally, results show that immigrants who are successful in their business activities may play an important role for labor market integration since they create employment opportunities also for other immigrants. |
| Keywords: | Self-employment; Immigrants; Sweden |
| JEL: | J15 J24 L26 |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1544 |
| By: | Yanina Domenella (Universidad Autónoma de Madrid) |
| Abstract: | During economic downturns, governments often provide business grants to stimulate entrepreneurship. However, in societies where kinship ties play a significant role, policy design may be suboptimal if spillover effects are not accounted for. This paper examines the role of family ties in shaping entrepreneurship and the effectiveness of business support measures during economic crises. Using a randomized controlled trial in Kenya, I find that entrepreneurs with larger families coped better with the crisis. However, when external funding was available, strong family ties reduced the positive effects on entrepreneurship.The analysis identifies mutual assistance, crowding-out effects, and managerial interference as key mechanisms. These findings highlight the dual role of family networks, acting as both a safety net and a constraint, with implications for the design of business support policies in developing economies. |
| Keywords: | Entrepreneurship, kinship networks, private transfers, social norms, business support, crisis, field experiment, Kenya. |
| JEL: | L26 O12 O15 Z13 C93 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:cmf:wpaper:wp2025_2529 |
| By: | HARA, Yasushi |
| Abstract: | This study revisits the impact of customer concentration on the performance and survival of Small and Medium-sized Enterprises (SMEs) by proposing an integrated “Quantity-Quality-Structure” framework. Utilizing a large-scale panel dataset of Japanese manufacturing SMEs, we employ rigorous empirical methods—including two-way fixed-effects models with controls for export status, Cox proportional hazards models, and dynamic event studies—to disentangle the complex effects of inter-firm relationships. While the static relationship between customer concentration (Quantity) and sales growth is found to be inconsistent across industries, our survival analysis reveals a robust and critical finding: high concentration significantly increases the risk of firm exit, supporting the vulnerability tenet of Resource Dependency Theory. Conversely, simple network connectivity (Degree Centrality) acts as a powerful buffer, significantly reducing exit risk and functioning as “structural insurance, ” whereas network brokerage (Betweenness Centrality) can exacerbate risks in certain assembly industries. Furthermore, dynamic analyses of strategic change reveal that firms “decoupling” from major customers face a multiyear “danger zone” of increased vulnerability before achieving diversification. Successful growth strategies are shown to be driven not by expanding existing B2B ties, but by a strategic pivot to new market types, specifically direct-to-consumer (B2C) segments. These findings reframe the debate on customer concentration from one of performance optimization to one of existential risk management and dynamic adaptation. |
| Keywords: | Customer Concentration, Firm Survival, Inter-firm Networks, Strategic Adaptation, SMEs |
| JEL: | L14 L25 M10 C23 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:hit:tdbcdp:e-2025-02 |
| By: | Eddy Garcia (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UM - Université de Montpellier); Stephany Eric |
| Abstract: | The complexity of decision-making in entrepreneurial environments, particularly during due diligence (DD), has been studied from various angles in the scientific literature. DD is a thorough evaluation process conducted by investors aimed at analyzing the financial, legal and operational information of a startup to assess the risks and viability of the project before making an investment decision. It is a mechanism that helps reduce uncertainty and information asymmetry (Kaplan and Stromberg, 2003) by providing an objective data base to guide decision-making. Traditionally, the analysis of these processes has focused on financial, legal and technical approaches, leaving aside the emotional and subjective dimensions of the interactions between Innovative Entrepreneurs (IEs) and Expert Business Angels (EBAs). Kaplan and Stromberg (2003) highlight that information asymmetry is a central problem in these interactions, as investors must evaluate projects at an early stage without having access to complete information. This uncertainty exacerbated by the lack of suitable tools to integrate emotional perceptions often leads to decision-making biases. Our research proposes to reduce this information asymmetry and uncertainty by taking into account subjective mechanisms. |
| Abstract: | phases de due diligence (DD), a été étudiée sous divers angles dans la littérature scientifique. La DD est un processus d'évaluation approfondi mené par les investisseurs visant à analyser les informations financières, juridiques et opérationnelles d'une startup pour évaluer les risques et la viabilité du projet avant de prendre une décision d'investissement. C'est un mécanisme qui permet de réduire l'incertitude et l'asymétrie d'information (Kaplan et Stromberg, 2003) en fournissant une base de données objectives pour guider la prise de décision. Traditionnellement, l'analyse de ces processus s'est focalisée sur des approches financières, juridiques et techniques, en mettant de côté les dimensions émotionnelles et subjectives des interactions entre les Entrepreneurs Innovants (EI) et les Business Angels (BA). Kaplan et Stromberg (2003) soulignent que l'asymétrie d'information est un problème central dans ces interactions, car les investisseurs doivent évaluer des projets à un stade précoce sans avoir accès à des informations complètes. Cette incertitude exacerbée par le manque d'outils adaptés pour intégrer les perceptions émotionnelles conduit souvent à des biais décisionnels. Notre recherche propose de réduire cette asymétrie d'information et l'incertitude à travers la prise en compte des mécanismes subjectifs. |
| Keywords: | subjective perceptions, prise de décision entrepreneurial finance, incertitude, amorçage, perceptions subjectives, finance entrepreneuriale |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05308331 |