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on Entrepreneurship |
| By: | Timo Boppart; Peter J. Klenow; Reiko Laski; Huiyu Li |
| Abstract: | Which firms drive aggregate productivity growth? We document that firms with high price-earnings ratios tend to see increases in their subsequent earnings relative to sales, which we interpret as rents from ideas (innovation). We construct an endogenous growth model with shocks to firm innovation step-sizes and R&D efficiency and calibrate it to match patterns in the data. The model implies that growth would be much lower, even with the same innovative effort, if firms had the same step sizes. The model can be used to infer expected growth contributions of individual firms (such as members of the Magnificent Seven). We find that the share of growth coming from smaller listed firms substantially exceeds their sales share, whereas the largest listed firms account for less than their sales share. |
| JEL: | L11 O31 O41 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35594 |
| By: | Berfin Kardaslar (Humboldt-Universität zu Berlin, DIW Berlin); Alexander S. Kritikos (DIW Berlin, University of Potsdam, GLO Essen, CEPA); Lukas Menkhoff (DIW Berlin, Humboldt-Universität zu Berlin, IfW Kiel) |
| Abstract: | In this study, we examine the relationship between personality traits, captured by risk tolerance and the Big Five traits, and firm size, as measured by the number of employees. We show that the personality of entrepreneurs matters for the size of their firm they operate. We use a novel add-on to the German Socio-Economic Panel that includes a sub-sample of owner-managers running larger firms. High levels of risk tolerance – associated with an increased likelihood of firm exit in existing research – is positively associated with firm size for entrepreneurs in the market. High scores in extraversion are also associated with larger firms. However, a high level of openness for experience, a main driver of founding ventures, is negatively related to firm size. Overall, we show that running larger firms is associated with traits that are partially different from those that increase the likelihood of entrepreneurial entry or survival. |
| Keywords: | entrepreneurship, risk tolerance, personality traits, firm size |
| JEL: | L26 D81 J24 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:pot:cepadp:106 |
| By: | Alberto M. G. Saruggia; Sebastien Germano |
| Abstract: | This study shows that textual descriptors alone can predict early-stage startup success, defined as Exit, without relying on contextual, financial, or human capital variables. Using venture capital-curated datasets covering 7, 419 startups over 20 years, the research isolates text-based framing variables and engineers 850 features through startup narrative mapping. Data subsets and vector embeddings are evaluated for statistical significance, followed by supervised machine learning experiments across six models. LightGBM achieved the highest predictive performance (F1 = 0.48), while textual descriptors alone achieved F1 = 0.30, confirming the standalone predictive value of founder narratives. Feature analysis shows that optimized densities of hyping markers, including adjectives, jargon, and buzzwords, are associated with higher Exit probability, whereas excessive statement or name length reduces it. The study also introduces a quantifiable Hyping Score for venture capital applications, demonstrating that startup framing provides measurable signals for predicting Exit under conditions of high information asymmetry. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.00045 |
| By: | Galanakis, Yannis; Savagar, Anthony |
| Abstract: | We introduce a novel real-time dataset—Companies House Real-Time (CHRT)— that captures daily firm creation and dissolution activity for the full population of UK-registered companies. CHRT tracks official business demography statistics but is available months earlier, providing timely disaggregated indicators. We demonstrate that firm entry is a leading indicator of GDP and employment. Using a structural vector autoregression (SVAR), we find that a one-standard-deviation increase in firm entry raises GDP by 0.10.2% over the following year and generates persistent gains in employment and productivity. These results highlight the value of real-time administrative data for macroeconomic monitoring, and underscore the importance of business formation as a margin of adjustment during economic fluctuations. Our findings suggest that firm entry data should be integrated into early-warning systems and policy frameworks, particularly in times of crisis or structural change. |
| Keywords: | Business Dynamism; Real-Time Indicators; Administrative Data; Economic Monitoring; Economic Measurement |
| JEL: | C81 D24 L11 L25 L26 O47 |
| Date: | 2025–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoed:escoe-dp-2025-18 |
| By: | Aaron Chatterji; Jorge Guzman; Joyce Ma; Ryan C. McDevitt |
| Abstract: | Firms shape public policy not only from the outside through lobbying and campaign contributions, but also from the inside when business owners hold public office. We study this channel using a novel dataset that links state legislators’ personal financial disclosures to bill sponsorship records across 26 U.S. states from 2009 to 2023. The disclosures allow us to observe business ownership during legislative service and to distinguish entrepreneurs, defined as legislators who both own and actively manage a firm, from passive shareholders and employees. Applying a large language model to bill text, we classify legislation as pro-business and identify a subset of pro-entry bills that reduce barriers facing new firms. Entrepreneurs are a substantial presence in state legislatures, accounting for over 40 percent of legislators, and their representation varies primarily across states rather than within states over time. Although entrepreneurs do not sponsor more bills overall, they initiate a greater share of bills as first or sole primary sponsor. They also do not appear to be generic advocates for business. Relative to legislators with other business ties, entrepreneurs are no more likely to sponsor pro-business bills or bills endorsed by state Chambers of Commerce. Instead, they selectively advance pro-entry legislation, especially bills related to deregulation and innovation rather than antitrust or access to capital. These findings document an important channel through which entrepreneurs shape the policy environment for entrepreneurship from within political institutions. |
| JEL: | D72 H7 L26 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35637 |
| By: | Pomberger, Nils; Köppl-Turyna, Monika |
| Abstract: | This paper examines how European venture capitalists connect at the partner level and whether observed ties reflect embeddedness and structural-similarity as predicted by network theory. Using PitchBook data on roughly 41, 000 completed European VC deals and approximately 4, 000 European-based VC partners, we reconstruct a large person-to-person network from fund-team affiliations, board co-involvement, and portfolio-executive links. The analysis uses network centrality measures, maximal clique participation, local neighborhood overlap, and Monte Carlo SimRank. The empirical design tests two baseline propositions. First, if cohesive participation captures embeddedness and eigenvector centrality captures influence, more embedded actors should be more central. Second, if ties form among structurally proximate actors, connected dyads should exhibit greater similarity than unconnected dyads. The results support both propositions. Clique participation is moderately positively associated with eigenvector centrality. Observed ties also exhibit substantially higher mean Jaccard similarity than randomly sampled non-ties, and the same pattern holds for Monte Carlo SimRank. |
| Abstract: | Venture Capital spielt eine zentrale Rolle bei der Finanzierung innovativer Unternehmen. Neben Kapital sind dabei vor allem Netzwerke von Bedeutung. Investor:innen tauschen Informationen aus, identifizieren Geschäftsmöglichkeiten, begleiten Unternehmen strategisch und organisieren Folgefinanzierungen. Ein neues Research Paper von Monika Köppl-Turyna und Nils Pomberger untersucht erstmals, wie stark europäische Venture-Capital-Investoren auf Partnerebene miteinander vernetzt sind und welche Strukturen diese Netzwerke prägen. Die Studie basiert auf Daten von rund 41.000 Venture-Capital-Transaktionen in Europa sowie Informationen zu rund 4.000 in Europa tätigen Venture-Capital-Partnern. Auf Basis von Fondszugehörigkeiten, gemeinsamen Mandaten und Verbindungen zu Portfoliounternehmen wird ein umfangreiches Netzwerk rekonstruiert, das mehr als 154.000 Akteure und rund 255.000 Beziehungen umfasst. Die Ergebnisse machen deutlich, dass europäische Venture-Capital-Netzwerke keineswegs zufällig entstehen. Vielmehr bilden sich enge Gruppen von Investoren, die über wiederholte Interaktionen, gemeinsame Beteiligungen und ähnliche berufliche Umfelder miteinander verbunden sind. Investoren, die stärker in solche Netzwerke eingebunden sind, nehmen zugleich häufig zentrale und einflussreiche Positionen innerhalb des europäischen Venture-Capital-Ökosystems ein. Darüber hinaus zeigt die Analyse, dass bestehende Verbindungen besonders häufig zwischen Akteuren entstehen, die bereits ähnliche Netzwerke und Kontaktstrukturen aufweisen. Vertrauen, Reputation und Informationsaustausch spielen damit eine wichtige Rolle für die Entstehung und Stabilität von Beziehungen im Venture-Capital-Markt. Das Research Paper liefert damit neue Einblicke in die Funktionsweise des europäischen Venture-Capital-Marktes und zeigt, dass Netzwerke nicht nur die Zusammenarbeit zwischen Investoren prägen, sondern potenziell auch Einfluss auf die Finanzierung, Entwicklung und den Erfolg innovativer Unternehmen haben. Gleichzeitig schafft die Analyse eine Grundlage für zukünftige Forschung zu den Auswirkungen von Investoren-Netzwerken auf Unternehmenswachstum, Anschlussfinanzierungen und Exits. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ecoarp:342527 |
| By: | Güçeri, Irem; Hou, Xipei; Xing, Jing |
| Abstract: | We examine how investor-level tax incentives affect financing for start-ups using the introduction of a generous tax deduction for qualified angel and VC investment in China as a quasi-natural experiment. We find that the tax incentive increases funding for eligible start-ups, with stronger responses from larger and more experienced investors. The tax incentive leads to substitution between eligible and non-eligible investments. There is no evidence that the tax incentive lowers investment quality. We further show that the investor-level tax incentive encourages firm entry into affected industries, especially in cities more exposed to venture capital funds. |
| Keywords: | Venture capital; Tax incentives |
| JEL: | G24 G32 H25 L26 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19199 |
| By: | Dekker, Thekla; Günzel-Jensen, Franziska; Scheidgen, Katharina |
| Abstract: | This paper explores how sustainable entrepreneurial ventures mobilize resources within over-supported sustainable entrepreneurial ecosystems (SEEs). Drawing on 76 interviews and field data from Copenhagen and Stockholm-two mature, sustainability-oriented ecosystems densely populated with entrepreneurial support organizations (ESOs)-the study employs an inductive qualitative design using the Gioia methodology. Contrary to prevailing assumptions that greater ESO density enhances entrepreneurial outcomes, the findings reveal that excessive and redundant support infrastructures generate structural inefficiencies and resource misallocations for ventures. Three distinct resourcing approaches emerge: The Hoarders, who over-engage and become trapped in ESO dependency; The Inverted Resources, who evolve from recipients to exploited ESO assets; and The Instrumentally Engaged, who selectively leverage ESO offerings for targeted gains while maintaining independence. These patterns demonstrate that in munificent ESO landscapes, venture resourcing shifts from acquisition under scarcity to navigation under abundance. The study contributes to ecosystem and resourcing theory by conceptualizing over-support as a paradoxical condition where institutional logics of support invert into extractive dynamics, undermining venture autonomy and ecosystem efficiency. Policy implications emphasize the need for outcome-oriented ESO evaluation and strategic curation over quantitative proliferation of support infrastructures. |
| Abstract: | Diese Studie untersucht, wie nachhaltige Gründungsunternehmen Ressourcen in überversorgten nachhaltigen unternehmerischen Ökosystemen (Sustainable Entrepreneurial Ecosystems, SEEs) mobilisieren. Anhand von 76 Interviews und Felddaten aus Kopenhagen und Stockholm - zwei reifen, nachhaltigkeitsorientierten Ökosystemen mit einer hohen Dichte an Entrepreneurial Support Organizations (ESOs) - wird mittels eines induktiven qualitativen Designs nach der Gioia-Methodik analysiert, wie Gründungsunternehmen auf ein Überangebot an Unterstützungsstrukturen reagieren. Entgegen der verbreiteten Annahme, dass eine höhere ESO-Dichte die Gründungsergebnisse verbessert, zeigen die Befunde, dass übermäßige und redundante Unterstützungsinfrastrukturen strukturelle Ineffizienzen und Fehlallokationen von Ressourcen erzeugen. Drei distinkte Ressourcierungsansätze werden identifiziert: Die Hoarders (Hamsterer): Gründerteams, die anfänglich möglichst viele ESO-Angebote akkumulieren, sich dabei aber in einer Abhängigkeit von ESOs verfangen und erkennen müssen, dass institutionelle Eigeninteressen der ESOs ihre unternehmerische Entwicklung behindern. Die Inverted Resources (Invertierte Ressourcen): Ventures, die zunächst als Vorzeigebeispiele im Ökosystem gefördert werden und sich zunehmend von Ressourcenempfängern zu Ressourcen für die ESOs selbst wandeln - mit der Folge von Erschöpfung durch Repräsentationspflichten und stagnierender Unternehmensentwicklung. Die Instrumentally Engaged (Instrumentell Engagierten): Erfahrene Gründerteams, die ESO-Angebote selektiv und zielgerichtet für spezifische Leistungen (z. B. Lebenszyklusanalysen, ESG-Zertifizierungen) nutzen, dabei Ineffizienzen bewusst in Kauf nehmen und ihre Unabhängigkeit wahren. Die Befunde zeigen, dass Ressourcenmobilisierung in reifen SEEs weniger ein Problem der Ressourcenknappheit als vielmehr der Ressourcennavigation unter Überfluss darstellt. Die Studie leistet damit einen Beitrag zur Ökosystem- und Ressourcentheorie, indem sie Überversorgung als paradoxe Bedingung konzeptualisiert: Institutionelle Unterstützungslogiken können sich in extraktive Dynamiken umkehren, die die Autonomie der Ventures und die Effizienz des Ökosystems untergraben. Für die Politik leiten sich daraus Implikationen ab, die eine ergebnisorientierte Evaluation von ESOs sowie eine strategische Kuration statt quantitativer Ausweitung von Unterstützungsstrukturen nahelegen. |
| Keywords: | Entrepreneurial Ecosystem, Resource Abundance, Resources, Multiple Case Study, Qualitative Study |
| JEL: | L26 O31 R11 M13 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifhwps:342482 |
| By: | Enriques, Luca; Nigro, Casimiro A.; Tröger, Tobias |
| Abstract: | European debates on competitiveness increasingly treat corporate law as a lever to help innovative firms scale. The European Commission's Proposal for a new "28th regime" seeks to introduce an optional, EU-wide corporate legal form designed, inter alia, to facilitate the cross-border scaling of innovative firms. A central instrument of the Proposal is the use of model articles of association to be adopted through future implementing acts. This Article argues that, while standardised articles may ease incorporation and lower drafting costs for ordinary unlisted firms, they fall short for VC-backed companies-the very cases that motivated the initiative. Building on prior work on venture capital contracting under mandatory corporate law, we identify four shortcomings. First, the architecture is incomplete: the Proposal omits a model shareholder agreement, even though effective VC contracting depends on the interaction between articles of association and shareholder arrangements. Second, the drafting process is overly generalist and unlikely to yield genuinely VC-specific templates. Third, the Proposal's fairness-oriented logic risks producing terms that clash with the asymmetric, statecontingent structures typical of VC deals. Fourth, the legal protection offered by the template is limited, focusing on formation-stage effects while leaving subsequent judicial intervention unconstrained. We propose four adjustments: introduce a model shareholders' agreement; create a dedicated VC drafting track; abandon fairness as the organising principle for VC templates; and provide a robust safe harbour covering both ex ante design and ex post enforcement. |
| Keywords: | 28th Regime, Entrepreneurship, EU Company Law, EU Inc., Innovation, Private Ordering, Startups, Venture Capital |
| JEL: | G38 K22 L26 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:lawfin:342486 |
| By: | Terry Moon; Linda Wu |
| Abstract: | This paper assesses the income and tax consequences of selling ownership stakes in private companies using linked tax records of business owners in Canada. Comparing major shareholders who sell their entire stakes with matched counterparts who sell at a later time, we find large reductions in their overall income and taxes after selling their company, except for an initial spike in capital gains. Furthermore, they reduce their labor supply and wage income on average. We do not find evidence of serial entrepreneurship across ages or sectors, implying that business owners enjoy a "quiet life" after selling instead of starting new firms or remaining active in the labor market. |
| Keywords: | Business ownership; Firm sales; Capital gains taxation; Entrepreneurship; Labor supply |
| JEL: | H24 G34 J22 L26 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26175 |
| By: | OECD |
| Abstract: | Tourism start-ups are helping drive innovation in response to digitalisation, sustainability imperatives and changing traveller expectations. This paper examines how incubators and accelerators support tourism entrepreneurship across European and OECD countries. It highlights a growing and diverse support landscape, but also identifies challenges related to fragmented support, limited scale-up opportunities, and gaps in evidence on programme impacts. The paper outlines policy considerations to strengthen tourism innovation ecosystems, including better co-ordination, stronger industry linkages, more continuous support pathways, and improved monitoring and evaluation. By shedding light emerging practices, it contributes to a better understanding of how incubation and acceleration initiatives can support a more innovative, competitive and sustainable tourism sector. |
| Keywords: | accelerators, digital formation, entrepreneurship, incubators, tourism, travel and tourism start-ups |
| JEL: | Z38 L26 Z3 |
| Date: | 2026–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:oec:cfeaab:2026/01-en |
| By: | Frankl, Andreas; Köppl-Turyna, Monika |
| Abstract: | Introduction: While existing literature suggests that distributed ledger technologies will significantly transform capital markets, research has not yet examined how resulting changes in capital market conditions affect venture capital. Thus, this paper addresses this gap by analyzing the impact of distributed ledger technologies in capital markets on venture capital. Methods: The paper begins with an overview of the theoretical foundations of distributed ledger technologies, capital markets, and venture capital. Additionally, the paper also conducts a specific review on literature connecting these research domains. Building on that, a theoretically grounded conceptual model as described by Jaakkola (2020) is developed. Results: The conceptual model developed proposes a framework that explains the key mechanisms linking distributed ledger technology usage in capital markets to venture capital. It also identifies contradictory mechanisms, core interdependencies, and both mediating and moderating factors shaping the internal relationships between the key constructs. Discussion: While changes in capital market processes, enhanced accessibility and increased liquidity will directly influence the attractiveness for venture capital in a primarily positive way, systemic risk will indirectly influence venture capitalists and have both positive and negative effects. We also derive some propositions for further investigation and provide valuable insights as well as theoretical and practical implications for researchers, entrepreneurs and investors. Conclusion: The findings of our research are both significant and novel. The framework developed represents the first systematic interconnection between distributed ledger technologies, capital markets and venture capital, and lays the foundation for further research. |
| Abstract: | In einem Research Paper legen Monika Köppl-Turyna und Andreas Frankl erstmals ein konzeptionelles Modell vor, das systematisch untersucht, wie Distributed Ledger Technologien (DLT) - darunter Blockchain- und Tokenisierungstechnologien - Kapitalmärkte verändern und welche Auswirkungen diese Veränderungen auf Venture-Capital-Investitionen haben können. Während zahlreiche Studien den Einfluss von DLT auf Finanzmärkte oder Venture Capital jeweils getrennt analysieren, fehlte bislang ein theoretischer Rahmen, der beide Forschungsfelder miteinander verbindet. Das Research Paper schließt diese Forschungslücke und entwickelt ein konzeptionelles Modell, das die zentralen Wirkungsmechanismen zwischen DLT, Kapitalmarktstrukturen und Venture Capital systematisch beschreibt. Die Autoren identifizieren vier zentrale Wirkungsmechanismen: veränderte Kapitalmarktprozesse, systemisches Risiko, Marktzugang und Liquidität. Distributed-Ledger-Technologien können etwa Abwicklungs- und Handelsprozesse beschleunigen, Transaktionskosten senken, neue Formen der Tokenisierung ermöglichen und den Kreis potenzieller Investor:innen erweitern. Für Venture Capital ist das relevant, weil bessere Liquidität, einfacherer Kapitalmarktzugang und zusätzliche Exit-Möglichkeiten die Finanzierung und Verwertung von Beteiligungen verändern können. Das Research Paper basiert auf einer systematischen Auswertung der internationalen Fachliteratur. Ausgehend von mehr als 1.200 wissenschaftlichen Veröffentlichungen entwickelten die Autoren ein theoretisch fundiertes Modell, das als Grundlage für zukünftige empirische Forschung dienen soll. Damit leistet es einen Beitrag zur aktuellen Debatte über die Zukunft digitaler Kapitalmärkte und zeigt auf, welche Rolle technologische Innovationen künftig für Finanzierung, Unternehmertum und Wettbewerbsfähigkeit spielen könnten. |
| Keywords: | distributed ledger technologies, DLT, blockchain, tokenization, capital markets, venturecapital, digital finance, entrepreneurial finance, financial innovation, conceptual model |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ecoarp:342555 |
| By: | Oded Galor |
| Abstract: | The Royal Swedish Academy of Sciences awarded the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Philippe Aghion, Peter Howitt, and Joel Mokyr "for having explained innovation-driven economic growth". This paper examines their contributions in the context of the development process as a whole. Aghion and Howitt established the centrality of creative destruction in the growth process of advanced economies, identifying the displacement of existing technologies by superseding ones as a key mechanism in sustaining economic growth. Mokyr highlighted the role of a tightening link between theoretical knowledge and practical application during the Scientific Revolution and the Enlightenment in fostering technological progress in Western Europe on the eve of the Industrial Revolution. These frontier-centered perspectives transformed our understanding of the causes and consequences of innovation-driven growth in advanced economies operating near the technological frontier. Yet, throughout much of the development process, the central challenge to growth has depended less on the creation of new technologies than on the emergence of fundamental conditions conducive to skill formation, fertility decline, and societal adaptation, which have shaped the timing of the transition to modern growth, the pace of economic growth thereafter, and the contemporary inequality in the wealth of nations. A comprehensive account of sustained growth and contemporary inequality across societies requires anchoring the growth process in its broader historical arc. |
| Keywords: | Growth, Innovation, Inequality, Unified Growth Theory, Human Capital, Demographic Transition |
| JEL: | O10 O40 Z10 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:crm:wpaper:26173 |