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on Entrepreneurship |
| By: | Masatoshi KATO; Kenta IKEUCHI |
| Abstract: | Using a longitudinal dataset of Japanese start-ups, this study evaluates the J-Startup program, Japan’s flagship initiative aimed at fostering globally competitive start-ups. We estimate the average treatment effect on the treated (ATT) using propensity score matching, finding that program participation significantly enhances firm growth, particularly in employment and sales, and increases the likelihood of generating high-growth firms. Heterogeneity analysis reveals that these effects are particularly pronounced for younger firms, while evidence on firm size remains inconclusive. To explore underlying mechanisms, we examine financing capacity and network expansion as potential channels. We find that program participation enhances financing capacity, which in turn is positively associated with firm growth, which is consistent with a certification-induced financing channel. While program participation also expands investor and customer networks, these channels show limited association with firm growth. Overall, the findings suggest that while the program exhibits elements of “picking winners, ” its marginal impact is strongest for firms at earlier stages of development, and that growth effects operate primarily through certification-induced improvements in financing capacity. |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26043 |
| By: | Claude Diebolt; Romain Diebolt; Tapas Mishra |
| Abstract: | This contribution revisits the origins of the concept of creative destruction by returning to Werner Sombart’s Krieg und Kapitalismus (1913). Although Sombart never used the expression schöpferische Zerstörung, a systematic page-by-page reading shows that he articulated a destruction–creation mechanism that anticipates the structural logic later formalized by Joseph Schumpeter. Sombart presents war as simultaneously destructive and generative, arguing that fiscal, institutional, and ecological ruptures are not peripheral to capitalism but central to its emergence. His analysis of deforestation, scarcity, and technological substitution (especially the shift from wood to coal and coke) offers an early model of how material crises can trigger innovations that reshape production systems and energy regimes. The article also examines the subsequent marginalization of Sombart’s contribution, situating it within broader methodological and political shifts in twentieth-century economics. It contrasts Sombart’s historically grounded mechanism with the evolution of Schumpeter’s thinking from 1911 to 1942, when the canonical formulation of creative destruction finally appeared. More broadly, the paper reflects on the dynamics of intellectual attribution in economic thought, illustrating how concepts often achieve recognition not through priority of insight but through subsequent elaboration and institutionalization. Reassessing Sombart thus enriches the genealogy of creative destruction and deepens our understanding of contemporary debates on innovation, energy transitions, war-related technological change, and the macroeconomic implications of AI. Building on recent work by Acemoglu, Mokyr, and others, the article argues that Sombart emerges not as the inventor of the term but as the first thinker to articulate its structural logic, and that recognizing this lineage enhances both historical scholarship and contemporary economic analysis. |
| Keywords: | Creative destruction; Werner Sombart; Joseph Schumpeter; History of economic thought; War and capitalism; Technological change; Structural transformation. |
| JEL: | B00 B31 O30 N00 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2026-15 |
| By: | OECD |
| Abstract: | This paper examines the role of business advice to SMEs and startups in supporting place transition to higher productivity activities. It draws evidence from case study regions in Malaga, Spain, South East Ireland, and Scania, Sweden. It covers the coaching, mentoring, training and consultancy services and information portals offered to startups and SMEs in each region, the success factors for these supports and the impacts on transforming the business base. The paper ends with key takeaways for policymakers on local business advisory services. |
| Keywords: | Business advice, Entrepreneurship, Incubation, Local Development, Mentoring, SMEs, Startups |
| JEL: | H70 L2 L26 M13 L25 |
| Date: | 2026–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:oec:cfeaaa:2026/07-en |
| By: | Giulia Fontanelli (Department of Economics and Management, University of Ferrara) |
| Abstract: | This paper investigates the relationship between eco-innovation and firm performance among SMEs operating in Emilia-Romagna using data from the ECOSISTER Project, Spoke 5 – Circular Economy (C.E.) and Blue Economy. Particular attention is devoted to the role of C.E. Investment Intensity and C.E. Human Capital (HC) as complementary dimensions of sustainability-oriented transformation. The findings suggest that firms progressively integrate eco-innovation, C.E. investments, and specialised HC within their development strategies, highlighting their relevance for competitiveness and economic performance. The study contributes to the literature on innovation, sustainability, and C.E. transitions. |
| Keywords: | Eco-Innovation; Circular Economy; Firm Performance; Human Capital; Circular Economy Investments |
| JEL: | O31 O32 Q55 Q56 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:1126 |
| By: | Bontu Ankit Patro; Hannah Rubinton |
| Abstract: | After declining from high levels in the late 1970s, the firm startup rate began to rise in the 2010s, with a shift toward larger cities. Did this trend change during the COVID-19 pandemic? |
| Keywords: | startups; metropolitan areas; COVID-19 |
| Date: | 2026–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00001:103284 |
| By: | Myeongju Kim (Yonsei University); Eunseong Ma (Yonsei University) |
| Abstract: | This paper studies how the macroeconomic effects of tax cuts depend on occupational targeting—toward entrepreneurs versus wageworkers. Using a new state-level panel of occupation specific federal tax shocks for the United States from 1981 to 2017, we find that entrepreneur targeted tax cuts generate substantially larger increases in output, consumption, and employment than revenue-equivalent worker-targeted cuts. These effects coincide with increases in both entrepreneurship and wage employment, pointing to business formation and firm expansion as key transmission channels. An incomplete-markets model with occupational choice attributes these findings to earnings-based borrowing constraints and demand-driven amplification that jointly produce large entrepreneur multipliers. |
| Keywords: | Tax policy, Entrepreneurship, Earnings-based constraints, Occupational choice |
| JEL: | E62 H25 J23 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:yon:wpaper:2026rwp-291 |
| By: | Will Aarons; Asani Sarkar |
| Abstract: | We recently updated the suite of indicators describing the performance of small businesses in the Second District (defined, for the purpose of this study, as New York, New Jersey, and Connecticut) and nationally with data from the 2025 edition of the Small Business Credit Survey (SBCS). In this post, we find that regional small businesses reported severe declines in employment and revenue growth in 2025 and became more pessimistic about growth in 2026. In contrast, small firms in the rest of the nation enjoyed stable revenues and employment in 2025 and, while they also had lower expectations of future growth, the decline was smaller in magnitude. Given the importance of small businesses in employment generation, analyzing such data helps to inform the design of effective monetary policy and to understand trends in the regional economy. |
| Keywords: | small business performance; Second District |
| JEL: | L1 G0 |
| Date: | 2026–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:103353 |
| By: | Nicolo Ceneri; Giuseppe Lopomo; Alessandro Villa; Nicolas Werquin |
| Abstract: | We study optimal taxation in economies with general equilibrium market clearing, where agents with privately known labor skills and entrepreneurial abilities choose between deterministic labor income and risky firm operation. The government observes labor income and realized dividends but not effort or technology shocks. We formulate the multidimensional screening problem as a lottery-based linear optimization, accounting for global incentive constraints, fixed costs and other non-convexities. Optimal policies exhibit tax breaks, which can render net taxes negative, for agents with intermediate entrepreneurial abilities and labor skills above a threshold. General equilibrium strengthens this effect under decreasing returns, as labor-market clearing requires sufficient entry into entrepreneurship, further increasing subsidies for agents with high worker options. In a calibrated U.S. economy, optimal taxes are lower and can be negative for low-profit realizations. Subsidies rise when risk declines and when the frequency of high-ability entrepreneurs in the population diminishes. |
| Keywords: | Optimal taxation; Multidimensional screening; Occupational choice; Entrepreneurial risk; linear optimization |
| JEL: | D82 E60 H21 H24 H25 L26 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedhwp:103283 |
| By: | Mdhlalose, Dickson |
| Abstract: | South African small and medium-sized enterprises (SMEs) account for around 34% of national GDP and generate around 60% of employment; however, they continue to be disproportionately impacted by financial management inadequacies. This paper investigates whether the expansion of accessible digital accounting technologies such as cloud-based accounting software, mobile financial applications, and artificial intelligence-assisted analytics is significantly altering the adoption and utility of management accounting information among South African SME owners and managers, or if it simply automates non-value-added compliance tasks. This study synthesises evidence from an integrative review of 60 peer-reviewed sources published between 2020 and 2026, focusing on four thematic domains: digital transformation in the accounting profession; cloud software adoption by SMEs; the evolving advisory role of external accountants; and the triangular relationship among technology use, financial literacy, and decision-making quality. The study contends that digital technologies establish a legitimate yet contingent avenue for improved management accounting participation; their transformative potential is realised solely when supported by sufficient financial literacy, the development of digital skills, and contextually suitable software design. Essential recommendations are aimed at small and medium-sized enterprise owners, accounting practitioners, software developers, and policymakers in South Africa. |
| Keywords: | Cloud-based accounting software, Financial literacy, Decision-making quality, Compliance versus advisory, South African SMEs |
| JEL: | M41 M15 O33 L26 O55 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341046 |
| By: | Hussain, Syed Qamber; Siddiqui, Danish Ahmed |
| Abstract: | In the global race toward sustainability, the necessity for small- and medium-sized enterprises (SMEs), especially in developing economies, to march towards a Sustainable Net Zero Economy (SNZE), became much more pressing. In particular, the study analyzes the impact of tangible resources, intangible resources, and human skills on the financial, environmental, and social performance of SMEs in Pakistan, considering sustainable manufacturing and circular economy capabilities as mediation variables. The model underlying the research grounded in the Natural Resource-Based View (NRBV) and Human Capital Theory, and data were quantitatively analysed using input from 309 SMEs. The hypothetical relationships of this model tested using Structural Equation Modelling (SEM) based on the Partial Least Squares (PLS) approach. The results suggested that tangible assets, organizational culture, and human capital most critically influence the adoption of SNZE practices. Furthermore, sustainable manufacturing and circular economy capabilities operate as key channels through which the resource inputs translate into better performance outcomes. While sustainable manufacturing enhances efficiency, innovation, and environmental compliance, circular economy capabilities assure cost savings, resource optimization, and engagement with stakeholders. Together with these mediators, it enables SMEs to improve competitiveness and resilience while contributing to environmental and social value. This study contributes to the theory by advancing sustainability research through an empirical examination of the application of the NRBV and human capital perspectives in the context of a developing country. In practice, the study identifies actionable strategies for SME managers and policymakers to help overcome constraints imposed by limited resources, weak provisions for their protection, and low sustainability awareness. |
| Keywords: | Tangible Resources, Human Skills, Intangible Resources, Sustainable Net Zero Economy, Sustainable Manufacturing, Circular Economy Capabilities, Performance Outcomes, Pakistan SMEs, SEM |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341049 |
| By: | Hanna Onyshchenko (Bank of England); Andriy Tsapin (National Bank of Ukraine); Vitaliia Yaremko (Trinity College Dublin) |
| Abstract: | This paper examines the effect of military occupation on firm performance during Russia's full‐scale invasion of Ukraine. Combining official data on territorial control with firm‐level balance‐sheet data from Orbis, we exploit quasi‐random variation in occupation status across postal areas in 2022‐2023 using an event‐study design. We document strongly asymmetric effects by occupation duration: firms in short‐term occupied areas experienced a temporary and largely insignificant decline in sales and employment followed by recovery after liberation, whereas firms under prolonged occupation suffered large, persistent losses in sales and employment. Capital dynamics do not differ significantly between occupied and never‐occupied firms, suggesting that occupation operates primarily through channels other than direct capital destruction. Heterogeneity across sectors and firm characteristics is consistent with local demand shortages, supply‐chain disruptions, and institutional uncertainty as the main transmission channels. Overall, these findings highlight that prolonged military occupation entails lasting and sizable economic losses that compound over time, with little evidence of recovery until liberation. |
| Keywords: | military occupation, firm performance, local economic activity, event study, war, Ukraine |
| JEL: | D22 F51 L25 P48 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep1126 |
| By: | Nolla, Edgar; BArquero Cabrero, José Daniel |
| Abstract: | Required Abstract + Required Keywords + Required References + |
| Keywords: | municipal investment; local economic development; governance; productive culture; business ecosystem; territorial competitiveness; transaction costs; clusters; public-private cooperation; local institutions; inversión municipal; desarrollo local; gobernanza; cultura productiva; ecosistema empresarial; competitividad territorial; costes de transacción; atracción de inversión; capital territorial |
| JEL: | H70 L52 L53 M13 M14 O18 O21 O22 O3 O38 O43 R11 R12 R33 R38 R52 R53 R58 |
| Date: | 2026–05–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129254 |