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on Entrepreneurship |
| By: | Ufuk Akcigit; Harun Alp; Jeremy Pearce; Marta Prato |
| Abstract: | This paper explores the symbiotic relationship between transformative entrepreneurs and inventors, which is crucial for economic growth. We utilize microdata from Denmark to demonstrate that while the relationship between IQ and general entrepreneurship tends to be negative, it is strongly positive among transformative entrepreneurs. Transformative entrepreneurs, often with higher IQ and education levels, significantly drive R&D and business growth, thereby providing substantial opportunities for inventors. In contrast, average entrepreneurs are more influenced by their family's entrepreneurship background. Our economic model links these dynamics to overall economic progress, highlighting how higher education influences career paths in entrepreneurship and invention. We identify talent misallocation caused by unequal education access, particularly affecting lower-income families. Our findings indicate the most effective policies strengthen the interplay between higher education, innovation, and entrepreneurship to foster transformative businesses and achieve long-run economic growth. |
| Keywords: | Entrepreneurship; R&D Policy; Innovation; IQ; Endogenous Growth |
| JEL: | O31 O38 O47 J24 |
| Date: | 2025–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1410 |
| By: | Daniel Reiter (University of Graz, Austria); Stefania Rossi (University of Graz, Austria); Leonita Mazrekaj (Haxhi Zeka University, Kosovo) |
| Abstract: | Despite ongoing progress, women continue to show lower entrepreneurial activity compared to men, highlighting the need for further efforts to close the gender gap and enhance women's economic participation. This study examines the drivers of gender differences in Total Early-Stage Entrepreneurial Activity (TEA), with a focus on the roles of self-perceived abilities and educational attainment. Using a unique dataset of 399, 114 observations from 64 countries (2013-2017), we employ Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore how an entrepreneurial mindset - defined as self-perceived entrepreneurial abilities - mediates the gender gap in entrepreneurship. The analysis incorporates the moderating effect of educational attainment and controls for micro-level characteristics as well as economic and socio-political variables. Our results confirm that women engage in TEA at lower rates than men. However, this gap narrows significantly when accounting for an entrepreneurial mindset, particularly among individuals with lower educational attainment. Among the highly educated, the mediating effect is weaker, suggesting that structural factors - such as access to networks and resources - may play a more prominent role. These findings deepen our understanding of gender disparities in entrepreneurship and offer valuable implications for policy interventions aimed at promoting more inclusive entrepreneurial environments and greater female economic participation. |
| Keywords: | Total Early-Stage Entrepreneurial Activity (TEA), Gender, Self-Perceived Abilities, Educational Attainment, Partial Least Squares Structural Equation Modeling (PLS-SEM), Moderated Mediation Analysis |
| JEL: | L26 E24 J24 J16 C30 J28 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2025-09 |
| By: | Arti Grover (The World Bank Group); Mariana Viollaz (CEDLAS-IIE-FCE-UNLP) |
| Abstract: | This paper provides evidence on the nature of financial constraints faced by women entrepreneurs, especially in contexts of stringent social norms. Using micro-data from the World Bank Enterprise Surveys for 61 countries, the analysis shows that formal firms managed by women do not face credit constraints on the extensive margin. They are equally likely to apply for credit as their male counterparts and experience lower rates of credit rejection, with a higher likelihood of opening credit lines. However, on the intensive margin, firms managed by women receive lower credit amounts, indicating signs of credit constraints. This disparity in access to credit cannot be explained by gender differences in risk profiles, profitability, or productivity. However, firms managed by women have lower sales per worker, suggesting challenges in accessing product and labor markets. The paper finds suggestive evidence of capital misallocation based on gender, particularly in countries with more restrictive gender and cultural norms. Firms managed by women demonstrate a 15 percent higher average return on capital compared to firms managed by men, indicating the potential benefits of increased access to credit for women-led businesses. These findings emphasize the importance of addressing gender-specific constraints to accessing finance and promoting gender-inclusive policies to enhance firm growth and reduce capital misallocation. |
| JEL: | D22 D24 J16 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:dls:wpaper:0352 |
| By: | Serena Fatica (European Commission - Joint Research Centre and Mofir.); Tommaso Oliviero (Università di Napoli Federico II, CSEF, Mofir and Cefes); Michela Rancan (University of Milan) |
| Abstract: | Using a large sample of European enterprises, we document that companies’ default probability is significantly larger when they experience negative end-of- the year equity (zombie status) in the year prior to default. Zombie firms are more likely to default in the short run in countries with more efficient judicial insolvency procedures. To establish a causal link between judicial efficiency and the default probability of zombie firms, we exploit a reform of the court districts in Italy that generates exogenous variation in trial lengths. This country-level analysis corroborates the findings of a cleansing effect of judicial efficiency that limits the persistence of zombie firms in the economy. |
| Keywords: | default; zombie firms; SMEs; EU-27; judicial efficiency. |
| JEL: | G33 K22 L25 O52 |
| Date: | 2025–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:747 |
| By: | Malone, Jr., DeAndre |
| Abstract: | Starting a business is an exciting venture that often involves a range of decisions, from operational roles to financial strategies. Among the many forms of business ownership, the “couple business” model has gained attention due to its unique structure and growing prevalence. While couple businesses have long existed, they were historically informal and often excluded from academic discourse, particularly due to the invisible nature of women’s contributions within family firms (Danes & Olson, 2003; Ahl, 2006). As gender roles and household labor patterns evolved, particularly in the late 20th century, these businesses emerged from the shadows to become an increasingly visible organizational form (Fitzgerald & Muske, 2002). Today, couple businesses are recognized as a significant segment of the small business landscape, defined by their distinct blend of family and enterprise, shared leadership, mutual financial stakes, and intertwined personal and professional dynamics. Recent studies have documented the rise in the number of couple businesses (Smith, 2000; Venter et al., 2012; El Shoubaki et al., 2021), highlighting the importance of examining this model empirically to better understand how it shapes both business and personal outcomes. According to data from the Annual Business Survey, 10.3% of small businesses (employing at least one individual) are jointly owned and equally operated by spouses (U.S. Census Bureau, 2021). The concept of a “couple business” is defined and understood differently across various academic fields. To provide clarity, we adopted the definition and criteria established by El Shoubaki, Block, and Lasch (2021), who delineate the specific attributes that characterize the couple business structure in our study: • The couple must be married, or cohabitating, and can be either mixed, or single gender. • Both partners can co-own the business OR be actively involved in the management of the business. • They both have a sense of (psychological) ownership of the business. Family businesses may or may not also be couple businesses. Using data from the NCR-Stat: Small Business Survey (Wiatt et al., 2024), this report analyzes the demographic and business characteristics of couple businesses in the North Central Region. It also compares their distributional patterns and proportions to those of other small businesses in the survey, permitting readers to understand how couple businesses fare across key indicators of business structure. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ncrcrd:359031 |
| By: | Friedson-Ridenour, Sophia; Hailemicheal, Adiam Hagos; Ochem, Dumebi Uzoabaka; Papineni, Sreelakshmi |
| Abstract: | Husbands are often key stakeholders and influential in women’s enterprise performance. Intrahousehold constraints and relational dynamics may contribute to a gender gap in entrepreneurship. This mixed-methods paper uses a randomized controlled trial and qualitative research to examine whether the returns to a skills intervention to women business owners are higher with a couples training. The couples training curriculum involves modelling effective communication techniques between married women entrepreneurs and their husbands to help build empathy, scrutinize intrahousehold resource allocation, and encourage greater spousal support. The findings suggest that the skills intervention increases business practices and women’s economic autonomy with treated women being 30 percent more likely to report sole decision-making power in their business. Smaller firms (defined by lower than median baseline profitability) benefit the most from the couples-based approach, earning 50 percent higher revenues and profits when trained with husbands. The channel to higher profitability appears to be improved negotiation skills affording women more time for their businesses, without increased marital conflict. Larger firms increase access to credit but there is no evidence of an impact on profits. The paper contributes to the evidence base on engaging men to help unleash the economic potential of women. |
| Date: | 2025–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11151 |
| By: | James Driver |
| Abstract: | I analyze whether a change in patent systems differentially affects firm-level innovation investments at patent-valuing firms of different sizes. Using legally required, economically representative, U.S. Census Bureau microdata, I separate firms into groups based on a firm’s response to a question asking it to rank the degree of patent importance to its business and firm-size. I then measure how firms’ innovation inputs/outputs respond to the America Invents Act (AIA). Results show the AIA reduced innovation investments at smaller, patent-valuing firms while increasing innovation investments at larger, patent-valuing firms, highlighting differential firm-size effects of patent policy and policy’s importance to investments. |
| Keywords: | Investments, innovation, patents, firm size |
| JEL: | L25 O3 O51 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-31 |
| By: | Wiatt, Renee D. |
| Abstract: | Small businesses are critical to their rural communities. Often serving as a meeting place and social hub for local citizens, small businesses in rural areas deliver more than just goods and services. This article explores the trends for rural businesses in the North Central Region (NCR) by examining the owner and small business demographics using the NCR-Stat: Small Business Survey. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ncrcrd:359223 |
| By: | Elona Dushku (Bank of Albania) |
| Abstract: | Small and medium-sized enterprises (SMEs) are vital to Albania’s economy but face significant financing challenges amid monetary tightening. Utilizing firm-level data from 2022–2023, this study documents that the abrupt interest rate increases in 2022 prompted a rise in alternative financing use, particularly among younger and smaller firms, alongside greater reliance on internal funds as an immediate coping mechanism. In contrast, the more gradual tightening in 2023 led to a broad-based decline in both alternative and internal financing, indicative of constrained liquidity and persistent financial pressures across firms. Notably, heterogeneity in internal financing adjustments was limited, with younger firms showing no statistically significant difference from older firms, except for those experiencing tighter bank credit conditions, who further curtailed internal funding. These findings underscore the varied responses of SMEs to phased monetary tightening and emphasize the need for targeted policy measures to support firm resilience over time. |
| Keywords: | SMEs; Access to Finance; Monetary Tightening; Firm Characteristics |
| JEL: | E52 G21 G32 L25 |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp09-2025 |
| By: | Nobuya FUKUGAWA |
| Abstract: | This study investigates the impact of Technology Extension Services (TES) on the productivity of small and medium-sized enterprises (SMEs) in Japan, using an Endogenous Switching Regression model and firm-level panel data covering both the pre-pandemic (2016–2019) and pandemic (2020–2023) periods. Focusing on Kohsetsushi , Japan’s extensive network of public support institutes for SMEs, the analysis finds that TES adoption significantly improves firm productivity across both periods, highlighting its role as a locally embedded innovation intermediary. Firms with higher levels of intangible capital benefited more, with complementary effects particularly pronounced during the pandemic—suggesting that absorptive capacity became critical under crisis conditions. Selection estimates reveal that more productive firms were more likely to adopt TES, although some equally capable firms opted out—consistent with comparative advantage shaping self-selection patterns. Geographic proximity to service providers constrained TES access in stable periods but became less critical during the pandemic due to the expansion of digital service delivery. These findings underscore how firm capabilities, external shocks, and spatial access jointly influence the effectiveness of public technology support programs. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25064 |
| By: | Rubi, Carlos Antonio Zuniga |
| Abstract: | The private sector and JICA introduced the One Village, One Product (OVOP) movement in Honduras to promote local economic development through entrepreneurship. Recent studies have yet to explore which of the movement's strategies most effectively affects the performance of participating microenterprises. This case study introduces a new approach by analyzing microenterprise’s resources from a business management perspective. Through a mixed approach, microenterprises evaluated the effects of the OVOP on nine resources driven by the initiative. Semi-structured interviews with ongoing and non-operating businesses further assessed the most and least influential. The results were analyzed through the VRIO framework from the resource-based theory to evaluate the adoption of the initiatives and their impact within each microbusiness. The findings show the predominant role of training in managerial skills through the movement according to the experience of the entrepreneurs. Furthermore, it also shows the lack of ownership of the movement that participants may have when the initiative does not develop from within. The results of the resources most influenced by OVOP shed new light on the study of the movement worldwide, as they may provide alternative ideas to improve entrepreneurial capabilities in developing countries through local movements. |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:thesis:a6cgy_v1 |
| By: | Schilirò, Daniele |
| Abstract: | This article aims to analyze the competitive capacity of the Sicilian production system in a region that has historically experienced delayed development. The essay also examines the structure of the Sicilian economy and its evolution over time, highlighting key factors that shed light on its current dynamics. In particular, it focuses on the recent boost in entrepreneurial activity, with start-ups emerging across various sectors—signaling positive trends in production, innovation, and development opportunities. It also addresses the growth of the tourism sector, despite its limitations. Furthermore, the article focuses on the experience of productive systems that have influenced regional policy towards small and medium-sized enterprises across various economic sectors, promoting the creation of business networks. Finally, it discusses the policies needed to enhance competitiveness and foster growth in Sicily. The essay first argues that innovation is the most critical driver of competitiveness, as it enhances total factor productivity. Second, it identifies investment in knowledge as the optimal strategy for improving the efficiency of production factors and as a cornerstone for long-term growth and development. Furthermore, the essay contends that institutions must foster competitiveness and growth through a regulatory framework that is simple, clear, and less bureaucratic. This is especially important in regions that have historically allocated substantial public resources yet achieved only modest outcomes in income and employment growth. The paper specifically emphasizes the need for significant public investment in infrastructure, education and training, and research. Equally important are private investments—not only to expand the production base but, more importantly, to improve it qualitatively through the adoption of new digital technologies. |
| Keywords: | Competitiveness; Sicilian economy; productive districts; innovation; digital technologies; institutions |
| JEL: | J00 L0 L23 O1 O3 R11 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124717 |