|
on Entrepreneurship |
| By: | Jarkko Harju (Tampere University & Finnish Centre of Tax Systems Research (FIT)); Toni Juuti (Labour Institute for Economic Research & Tampere University & FIT); Tuomas Matikka (VATT Institute for Economic Research & FIT) |
| Abstract: | Using full-population data from Finland, we show that individuals at the top of the income distribution are significantly more likely to start new incorporated businesses. High-income earners also establish more successful and productive businesses than others. In contrast, parental income is not linked with selection into new entrepreneurship or firm-level outcomes. We find that income gains from entrepreneurship are rather similar across individual and parental characteristics, and that entrepreneurship is associated with upward income mobility regardless of initial income levels. Overall, our findings suggest that entrepreneurship can serve as an upward economic ladder for individuals from diverse backgrounds. |
| Keywords: | entrepreneurship, income mobility, productivity |
| JEL: | L26 J24 J3 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:fit:wpaper:41 |
| By: | Rommin Adl |
| Abstract: | While founder backgrounds account for less than 4% of funding variation among Y Combinator startups, this suggests that other factors, such as industry trends and product innovation, may play a more significant role in funding outcomes. Using data on 4, 323 YC companies from 2005-2024 merged with S&P Global funding data, I estimate OLS regressions with batch year fixed effects on a regression sample of 2, 113 companies. The coefficient on prior FAANG work experience is -0.251, indicating approximately 22% less funding. However, this result is not robust, as it changes direction in further analyses, suggesting that FAANG experience may not be a reliable predictor of funding. The most robust finding is that startups within Y Combinator that consist of larger founding teams tend to raise more funding, with each additional co-founder associated with approximately 21% more capital raised. While observable credentials such as prior FAANG work experience and top-tier education explain minimal variation in funding, the size of the founding team emerges as a more consistent predictor, highlighting the importance of team dynamics in securing capital. Unobserved factors like industry and product quality likely dominate funding decisions within this elite accelerator cohort. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.13755 |
| By: | Junhui Jeff Cai; Xian Gu; Liugang Sheng; Mengjia Xia; Linda Zhao; Wu Zhu |
| Abstract: | This paper studies whether, how, and for whom generative artificial intelligence (GenAI) facilitates firm creation. Our identification strategy exploits the November 2022 release of ChatGPT as a global shock that lowered start-up costs and leverages variations across geo-coded grids with differential pre-existing AI-specific human capital. Using high-resolution and universal data on Chinese firm registrations by the end of 2024, we find that grids with stronger AI-specific human capital experienced a sharp surge in new firm formation$\unicode{x2013}$driven entirely by small firms, contributing to 6.0% of overall national firm entry. Large-firm entry declines, consistent with a shift toward leaner ventures. New firms are smaller in capital, shareholder number, and founding team size, especially among small firms. The effects are strongest among firms with potential AI applications, weaker financing needs, and among first-time entrepreneurs. Overall, our results highlight that GenAI serves as a pro-competitive force by disproportionately boosting small-firm entry. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.06506 |
| By: | Diego Sancho-Bosch (Department of Economic Analysis, Universidad Complutense de Madrid (Spain)); Elena Huergo (ICAE – Department of Economic Analysis, Universidad Complutense de Madrid (Spain)) |
| Abstract: | This paper examines how the level of public R&D subsidies and firm size jointly influence firms’ net R&D investment. Using data on Spanish manufacturing firms from 2008 to 2018, we estimate parametric and non-parametric dose–response functions after applying entropy weighting to balance covariate distributions across treatment levels. The results reveal an inverted U-shaped relationship between subsidy intensity and net R&D expenditure for small, medium-sized, and large firms, but not for very large firms, which display a negative linear pattern. We also find substantial heterogeneity in subsidy effects within both the SME and large-firm categories, and show that the public funding share of R&D expenditure at which the positive impact of subsidies peaks declines markedly with firm size. These findings suggest that support schemes should implement progressively lower maximum subsidy rates, rather than relying on only two distinct caps for SMEs and larger firms. Overall, the results underscore firm size as a critical determinant of innovation policy effectiveness and provide practical guidance for optimizing subsidy design. |
| Keywords: | R&D support, policy evaluation, dose-response, entropy balancing. |
| JEL: | L24 L25 O32 R11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ucm:doicae:2509 |
| By: | Bednarik, Zuzana |
| Abstract: | Rural communities face ongoing challenges related to population decline, labor shortages, and uneven economic opportunities. In recent years, self-employed in-migrants[1] have been viewed as a potential driver of rural revitalization. These individuals contribute to job creation, stimulate local markets, and strengthen rural–urban linkages. However, while their initial impact on rural economies has been well recognized, a critical question remains: do these in-migrants stay long enough for their entrepreneurial activities to generate lasting benefits? The sustainability of rural job creation depends not only on attracting in-migrants with an entrepreneurial path but also on understanding the factors that influence their decision to remain in rural areas over time. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2026–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ncrcrd:388969 |
| By: | Daisy Bertrand (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Ramzi Benamara (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Bénédicte Aldebert (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | Analyser l'intention entrepreneuriale des étudiants permet de mieux comprendre la dynamique de la création d'entreprises et les éléments incitant ou freinant le passage à l'acte.Parmi ces freins, le manque de ressources, la peur de l'échec et le sentiment d'illégitimité jouent un rôle clé. Ce dernier, souvent lié au syndrome de l'imposteur, peut influencer négativement la confiance des étudiants en leur capacité à entreprendre. Cette recherche explore la place de la légitimité perçue dans l'intention entrepreneuriale en considérant ses dimensions psychologiques (estime de soi, confiance en soi, affirmation de soi). De plus, elle souligne la nécessité de dépasser une approche homogène des étudiants en analysant leurs profils via une typologie. Une étude menée auprès de 122 étudiants en économie et gestion d'Aix-Marseille Université a permis d'identifier trois profils distincts, comparés à un groupe d'étudiants déjà entrepreneurs. |
| Keywords: | analyse taxonomique, étudiant, légitimité, Intention entrepreneuriale |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05450528 |