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on Entrepreneurship |
| By: | Catherine Beaudry; Charles Bérubé |
| Abstract: | This paper disentangles the actions that firms took to mitigate financial and nonfinancial innovation barriers and offers a first assessment of the role of government support programs for innovation related activities in relation with these perceived innovation obstacles. Our results show that firms that face financial constraints cannot completely overcome these innovation barriers. When not financially constrained however, firms that choose to be undeterred by the obstacles they face and takes successful measures or use government programs are either equally or more innovative than firms that do not face such innovation obstacles. Firms that have used government assistance programs have a greater propensity to innovate then those that did not use any government support. Ce document distingue les mesures prises par les entreprises pour atténuer les obstacles financiers et non financiers à l'innovation et propose une première évaluation du rôle des programmes de soutien public aux activités liées à l'innovation en relation avec ces obstacles perçus à l'innovation. Nos résultats montrent que les entreprises confrontées à des contraintes financières ne peuvent pas surmonter complètement ces obstacles à l'innovation. Toutefois, lorsqu'elles ne sont pas confrontées à des contraintes financières, les entreprises qui choisissent de ne pas se laisser décourager par les obstacles auxquels elles sont confrontées et qui prennent des mesures efficaces ou utilisent des programmes gouvernementaux sont tout aussi innovantes, voire plus, que les entreprises qui ne sont pas confrontées à de tels obstacles à l'innovation. Les entreprises qui ont eu recours à des programmes d'aide publique ont une plus grande propension à innover que celles qui n'ont bénéficié d'aucune aide publique. |
| Keywords: | Obstacles to innovation, government incentives, innovation performance, mitigating innovation barriers, Obstacles à l'innovation, incitations gouvernementales, performance de l'innovation, atténuation des obstacles à l'innovation |
| JEL: | L6 O32 O34 |
| Date: | 2025–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:cir:circah:2025pr-02 |
| By: | Florian Horky (National Bank of Slovakia, Zeppelin University); Jarko Fidrmuc (Zeppelin University); Jan Klacso (National Bank of Slovakia); Reiner Martin (National Bank of Slovakia) |
| Abstract: | Non-application behavior for bank loans among European SMEs is economically more prevalent than loan application rejections by banks. Therefore, it should not be treated as a residual state but disentangled by its different reasons. Using microdata from the Survey on the Access to Finance of Enterprises (2014–2025), we document how firms choose and switch between loan application, discouragement, reliance on internal funds, and other non-application reasons. We combine an expected-utility framework with empirical estimations through multinomial and standard logit models. The main novelty is our ability to simultaneously investigate different types of non-application for bank loans, which are driven by differing forces. Discouragement manifests as a belief-driven channel of non-application, loan costs and the supply side drive another, cost-driven channel of non-application. By disentangling driving forces of non-application for bank loans as core element of the analysis, our study provides new evidence on why SMEs choose not to apply for bank loans. We highlight that these decisions can reflect diverse and contradictory underlying conditions. Our results are important for understanding and addressing these differing driving forces of SMEs bank loan application behavior. |
| JEL: | D22 E51 F33 G21 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:svk:wpaper:1133 |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | This paper provides an explanation of the theory of innovation and economic growth, in light of the 2025 Bank of Sweden Prize in Memory of Alfred Nobel, awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt. Their scholarship is critically evaluated, and the useful, less useful, and most problematic aspects highlighted. The verdict is that it is largely a collection of anthropocentric stories of innovation and growth. It avoids spelling out why sustained growth is desirable, it reduces innovation’s ultimate goal to the pursuit of economic growth, it is based on a deep seated notion of human exceptionalism, and it promotes directed technical change - based on the assumption that all resources are fungible and can be substituted - as a way to sustain economic growth without causing environmental destruction. Their analysis of growth is useful for highlighting the importance of scientific knowledge, for showing that creative destruction can be more destructive than creative, and that economic growth will only be sustained under very special conditions. However, the failure to address energy remains a glaring gap. For economics to become more useful, it would require becoming an Earth Systems Science based on biocentric holism. |
| Keywords: | innovation, economic growth, technology, sustainability, energy |
| JEL: | O31 O33 J11 J24 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18408 |
| By: | Hicham Doghmi (Central Bank of Morocco); Kamal Lahlou (Central Bank of Morocco) |
| Abstract: | Missing firm growth in developing countries: a firm-level analysisWhat are the key determinants of firm growth in developing countries? Using firm-level data from the World Bank Enterprise Surveys (WBES) spanning 2010–2024, we examine the impact of three distinct categories of factors on firm growth dynamics: (1) firm-level characteristics, (2) contextual factors, and (3) access to finance. Our analysis reveals that each category is essential, with both internal capabilities and external conditions playing complementary roles in shaping firm growth trajectories. We find that firms with stronger technological capabilities achieve significantly higher growth. In contrast, firms facing greater exposure to political instability and financing constraints experience markedly slower growth, with small firms being significantly more vulnerable to such constraints than large firms. Access to bank financing at the firm and sector levels is associated with robust growth gains. These findings are not driven by omitted variable bias or reverse causality; they remain robust across a wide range of sensitivity analyses and estimation strategies, including matching techniques and an instrumental variable (IV) strategy. Exploring the mechanism underlying the adverse effects of the business environment, we show that political instability and financing constraints impede the development of firms’ technological capabilities, which in turn undermines their growth potential. Our results underscore the importance of both firm-level capabilities and the broader enabling environment in fostering private sector development in developing economies. |
| Keywords: | Firm growth; Firm characteristics; Institutional quality; Access to credit; MENA countries |
| JEL: | D22 G30 J00 L25 O12 O14 |
| Date: | 2026–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp05-2026 |
| By: | Deng, Haotian (Ghent University); Desiere, Sam (Ghent University); Cockx, Bart (Ghent University); Bijnens, Gert (National Bank of Belgium) |
| Abstract: | This paper studies how employment subsidies for start-ups shape their performance. We exploit an unexpected policy reform in Belgium that permanently exempted start-ups hiring their first employee from payroll taxes for that employee. Using firm-level administrative data and a regression-discontinuity-in-time design, we find that subsidized post-reform startups employed fewer workers and generated lower output, value added, and profits compared to pre-reform start-ups. However, post-reform start-ups were more likely to survive as employers. These effects emerged within the first year after hiring and remained stable over a medium horizon of three years. Our findings indicate a compositional shift: the subsidy primarily induced low-productivity firms to enter the market. As most firms nowadays are nonemployers, our results meaningfully generalize the theoretical implications of standard neoclassical entrepreneurship models (employee–employer margin) and fill the important gap of the nonemployer–employer margin. |
| Keywords: | entrepreneurship, start-up, employment subsidy, tax reduction, labor demand, small firms |
| JEL: | H25 J23 J24 J38 L25 L26 M51 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18414 |
| By: | Nobuya FUKUGAWA |
| Abstract: | Public technology support can raise SME productivity, yet many firms may not use it because they remain unaware of it as a viable option. This study reframes low uptake as a discovery problem and examines transitions from unawareness to awareness of Kohsetsushi, public technology transfer organizations in Japan. Using annual online surveys from 2021 to 2024, this study classifies firms as (0) unaware, (1) aware but not using, or (2) using, and tests whether firms that are unaware in one year become aware in the next year. Because identifying adjacent-year transitions requires consecutive observation and panel retention is nonrandom, stabilized inverse-probability weights based on next-wave response likelihood are used to mitigate attrition bias. The results suggest that discovery depends more on information-processing capacity and institutional touchpoints than on firm size: managers’ STEM background, prior digital investment, and previous receipt of innovation-related subsidies are positively associated with exiting unawareness, whereas firm size and firm age are not robust predictors. Travel time to the nearest Kohsetsushi facility is not a robust predictor, suggesting that cognitive and informational frictions may matter more than physical proximity at the awareness stage. These findings indicate that policy should be assessed not only by user outcomes but also by whether potential users can discover and interpret available support. Effective outreach therefore requires clear entry points, problem-based messaging, repeatable low-cost contact, and low-burden information design. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26022 |
| By: | Olivier Torrès (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Mathieu Le Moal (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Stéphanie Bugaut-Heichelbech |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05507808 |
| By: | Mathieu Le Moal (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Olivier Torrès (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier) |
| Abstract: | Contexte et objectif : L'épuisement professionnel est un enjeu majeur chez les entrepreneurs agricoles, exacerbant leur vulnérabilité face au stress chronique. Cette étude vise à explorer le rôle des expériences de récupération (détachement psychologique, relaxation, maîtrise et contrôle) sur l'épuisement professionnel, en examinant la satisfaction de l'équilibre vie professionnelle-vie personnelle comme médiateur de cette relation.Méthodologie : Une enquête quantitative a été menée auprès de 916 entrepreneurs agricoles en France, recrutés via trois caisses de la Mutualité Sociale Agricole (MSA). Les données ont été analysées à l'aide de la modélisation par équations structurelles (SEM), afin d'examiner les relations entre les expériences de récupération, l'équilibre vie professionnelle-vie personnelle et l'épuisement professionnel.Résultats : L'étude révèle que la relaxation (β = -0, 153, p = 0, 001) et le contrôle (β = -0, 132, p = 0, 001) ont un effet direct significatif sur la réduction de l'épuisement professionnel. Le détachement psychologique et la maîtrise ne montrent pas d'effet direct, mais le détachement influence l'épuisement professionnel via l'équilibre vie professionnelle-vie personnelle (β = -0, 076, p < 0, 001). Un meilleur équilibre est associé à une réduction significative de l'épuisement (β = -0, 399, p < 0, 001). L'analyse de la médiation montre que l'équilibre joue un rôle partiel dans la relation entre les expériences de récupération et l'épuisement. Conclusion :Ces résultats mettent en évidence l'importance de la récupération et de l'équilibre vie professionnelle-vie personnelle dans la prévention de l'épuisement professionnel chez les entrepreneurs agricoles. Des interventions ciblées visant à renforcer la relaxation et le contrôle pourraient être bénéfiques pour leur santé mentale. L'étude souligne également la nécessité de recherches longitudinales pour approfondir la compréhension de ces mécanismes et de leur impact sur le bien-être entrepreneurial. |
| Keywords: | médiation, recherche quantitative, entrepreneurs agricoles, épuisement professionnel, expériences de récupération, équilibre vie professionnelle-vie personnelle |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05507804 |
| By: | Olivier Torres (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Mathieu Le Moal (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Jean Marie Esteve |
| Abstract: | Resumen:La salud de los alcaldes nunca ha sido estudiada de forma rigurosa y metódica. En muchos sentidos, ser alcalde de un pequeño municipio implica asumir un rol de emprendimiento situacional. Este trabajo tiene como objetivo identificar los eventos positivos (satisfactores) y negativos (estresores) asociados a la labor de la alcaldía.Método: Se recogieron datos de 1.182 alcaldes de pequeños municipios franceses a través de un cuestionario en línea distribuido entre los miembros de la AMRF (Asociación de Alcaldes Rurales de Francia). En total, se recopilaron y categorizaron 5.512 datos.Resultados: El proceso de categorización i elaboraron dos inventarios: uno de 25 estresores y otro de 25 satisfactores asociados a la vida pública de un alcalde. Las tasas de confiabilidad de estos codificadores fueron del 78, 5 % para los factores estresantes y del 79 % para los satisfactores.Conclusión: Estos dos inventarios pueden servir como base para desarrollar escalas de medición del estrés y la satisfacción de los alcaldes de municipios rurales, y sentar las bases para un |
| Keywords: | satisfactores, estresores, pequeños municipios rurales, Salud de alcaldes |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05507843 |
| By: | Olivier Torres (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Mathieu Le Moal (MRM-EPME - Montpellier Research in Management - Entrepreneuriat et PME - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Stéphanie Bugaut-Heichelbech; Jean Marie Esteve |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05507836 |
| By: | Kaila, Matias; Pajarinen, Mika; Rouvinen, Petri; Ylhäinen, Ilkka |
| Abstract: | Abstract We analyze recent shifts in the financial conditions of Finnish enterprises, utilizing the European Central Bank’s survey data that captures the perspectives of both financial providers and targets. Our findings indicate that the financial environment for enterprises operating in Finland has recently tightened, both in absolute terms and relative to Nordic and European peers. These shifts have disproportionately affected growth-oriented and innovative enterprises that are pivotal to the structural renewal of the economy. The primary drivers of this contraction include Finland’s sluggish economic performance relative to its peers, a shift in risk appetite concerning future outlooks, and the realization of geopolitical risk following Russia’s war of aggression in Ukraine. Even by European standards, the Finnish business finance system remains exceptionally bank-centric. It is ill-suited for financing a future-facing economy rooted in intangible capital, high-risk ventures, and active ownership. To safeguard long-term renewal, the financial system must evolve toward a more market-driven structure with a greater emphasis on equity-based finance. |
| Keywords: | Business finance, Financial constraints, Banks, Creative destruction |
| JEL: | G21 G32 O16 G18 |
| Date: | 2026–03–06 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:176 |