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on Small Business Management |
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Issue of 2010‒05‒15
eight papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Dennis Fok (Erasmus University Rotterdam); Andre van Stel (University of Amsterdam); Andrew Burke (Cranfield University, UK); Roy Thurik (Erasmus University Rotterdam) |
| Abstract: | This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics. The benefit of our model is twofold. First, to discriminate between entrants’ role of performing the entrepreneurial function of creating disequilibrium and the conventional equilibrating role of moving the industry to a new equilibrium. Second, to discriminate between three aspects of industry dynamics: the effect of entry and exit on market equilibrium, duration of disequilibrium and patterns of adjustment. Using a rich data set of the retail industry, we construct a dynamic simultaneous equilibrium model of profits, entry and exit. We find that indeed entrants play an entrepreneurial function causing long periods of disequilibrium after which a new equilibrium is attained. Moreover, we find ample support for the statement that disequilibrium is the essence of economic progress. |
| Keywords: | entry; exit; profits; equilibrium; industrial dynamics; retailing |
| JEL: | B50 J01 L00 L1 L26 |
| Date: | 2010–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20100012&r=sbm |
| By: | Maria D.M. Oliveira (UPIN, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF) |
| Abstract: | The diversity found in the various Technology Transfer Offices (TTOs), besides being a consequence of the capacities and motives of the different stakeholders involved (public research organisations, industry, consulting firms and public authorities) also reflects the specificities of public incentives or policies and their differing degrees of commitment to technology transfer. Notwithstanding the fact that the literature on technology transfer is voluminous, few studies (up to the present date) have investigated the role of innovation policy on TTOs efficiency and the instruments available for governments to improve technology transfer from publicly funded research. The present paper surveys the literature on the determinants of TTOs efficiency, highlighting in particular the role of innovation policy. Additionally, evidence within the context of the European Union on innovation policies for technology transfer improvement is detailed. |
| Keywords: | Technology transfer, innovation policies, technology transfer efficiency |
| JEL: | O31 O34 O38 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:375&r=sbm |
| By: | Aiello, Francesco; Cardamone, Paola |
| Abstract: | This paper assesses the impact of R&D efforts on production in the North and Centre-South of Italy by using a panel of 1203 manufacturing firms over the period 1998-2003. The estimations are based on a nonlinear translog production function augmented by a measure of R&D spillovers. This measure combines the geographical distance between firms, the technological similarity within each pair of firms and the technical efficiency of each firm. The estimation method takes into account the endogeneity of regressors and the potential sample selection issue regarding firms’ decision to invest in R&D. Results show that the external stock of technology exerts a higher impact in the Centre-South of Italy. Finally, it emerges that R&D capital and R&D spillovers are substitutes for Northern firms and complements for Centre-Southern firms. |
| Keywords: | R&D spillovers; Italian economic divide; translog production function; technical efficiency |
| JEL: | C23 O33 L29 |
| Date: | 2010–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22572&r=sbm |
| By: | Dirk Dohse (Kiel Institute for the World Economy); Sascha G. Walter (Kiel University) |
| Abstract: | This study examines how the extent of entrepreneurship education within university departments influences students’ entrepreneurial intentions in three careers: computer science, electrical engineering, and business. Specifically, it proposes that the effect of such education is (1) contingent on its mode (active, e.g. business plan seminars, vs. reflective, e.g. theory lectures), (2) contingent on the regional context and (3) complemented by individual-level influences such as role models or work experience. Results show that active modes of entrepreneurship education directly increase intentions and attitudes, whereas the impact of reflective modes depends on the regional context. Parental role models and work experience are found to complement entrepreneurship education in different ways. The findings have important implications for theory building as well as for the practice of teaching entrepreneurship. |
| Keywords: | Entrepreneurship education, entrepreneurial intentions, regional economy, knowledge spillover |
| JEL: | L26 M13 M59 R12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2010/5/doc2010-18&r=sbm |
| By: | Mirjam van Praag (University of Amsterdam); Arjen van Witteloostuijn (University of Antwerp, and Utrecht University); Justin van der Sluis (University of Amsterdam) |
| Abstract: | How valuable is education for entrepreneurs’ performance as compared to employees’? What might explain any differences? And does education affect peoples’ occupational choices accordingly? We answer these questions based on a large panel of US labor force participants. We show that education affects peoples’ decisions to become an entrepreneur negatively. We show furthermore that entrepreneurs have higher returns to education than employees (in terms of the comparable performance measure ‘income’). This is the case even when estimating individual fixed effects of the differential returns to education for spells in entrepreneurship versus wage employment, thereby accounting for selectivity into entrepreneurial positions based on fixed individual characteristics. We find these results irrespective of whether we control for general ability and/or whether we use instrumental variables to cope with the endogenous nature of education in income equations. Finally, we find (indirect) support for the argument that the higher returns to education for entrepreneurs is due to fewer (organizational) constraints faced by entrepreneurs when optimizing the profitable employment of their education. Entrepreneurs have more personal control over the profitable employment of their human capital than wage employees. |
| Keywords: | entrepreneurship; self-employment; returns to education; performance; personal control; locus of control; human capital; wages; incomes |
| JEL: | J23 J24 J31 J44 M13 |
| Date: | 2009–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20090111&r=sbm |
| By: | Daunfeldt, Sven-Olov (The Ratio Institute and Dalarna University); Elert, Niklas (The Ratio Institute); Johansson, Dan (The Ratio Institute) |
| Abstract: | Prior studies have defined high-growth firms (HGFs) in terms of sales or employment, and analyzed their contribution to employment growth. We define HGFs by employment and sales and add definitions of value added and productivity. We examine the contribution of HGFs to employment growth, economic growth, productivity growth, and sales growth. All HGFs give a disproportionately large positive contribution to economic growth and most also give large positive contributions to growth in employment, productivity and sales. Although HGFs of different definitions are usually not the same firms, young firms are more likely to be HGFs irrespective of definition. |
| Keywords: | Gazelles; Firm growth; High-impact firms |
| JEL: | D24 L25 L26 |
| Date: | 2010–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0151&r=sbm |
| By: | Corinne Autant-Bernard (Université de Lyon, Université Jean Monnet, F - 42023 Saint-Etienne, France, CNRS, GATE Lyon-St Etienne, UMR n° 5824, 69130 Ecully, France); Jean-Pascal Guironnet (GATE, Université de Lyon, Université Jean Monnet, F - 42023 Saint-Etienne, France, CNRS, GATE Lyon-St Etienne, UMR n° 5824, 69130 Ecully, France); Nadine Massart (GATE, Université de Lyon, Université Jean Monnet, F - 42023 Saint-Etienne, France, CNRS, GATE Lyon-St Etienne, UMR n° 5824, 69130 Ecully, France) |
| Abstract: | This paper investigates the effect of inter-firm and intra-firm spillovers on the productivity of firms, using French data. The Luenberger Productivity Indicator (LPI) is used to estimate the productivity and to break it down into several components (e.g. efficiency, biased technical progress, scale effects, etc.). Using this approach, negative productivity changes are found due to the unfavourable economic situation over 2000-2002. Intangible assets underlying productivity change are then investigated through a Maximum Likelihood Random Effect (MLRE) model. Spillover effects – influencing Total Factor Productivity (TFP) and its correspondent components, technological and efficiency changes – are found. |
| Keywords: | Productivity Change, Luenberger Indicator, Knowledge Externalities |
| JEL: | C31 C23 R11 R12 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1005&r=sbm |
| By: | Sylvie Démurger (Université de Lyon, Lyon, F-69003, France; CNRS, GATE Lyon St Etienne, UMR 5824, 93, chemin des Mouilles, Ecully, F-69130, France; ENS-LSH, Lyon, France ; CNRS, CEFC, USR 3331 Asie Orientale, Hong Kong); Hui Xu (Université de Lyon, Lyon, F-69003, France; CNRS, GATE Lyon St Etienne, UMR 5824, 93, chemin des Mouilles, Ecully, F-69130, France; ENS-LSH, Lyon, France ; Center for Modern Chinese City Studies (CCMC), East China Normal University, Shanghai, China) |
| Abstract: | This paper analyzes return migrants' occupational choice upon their return to their home village, by using an original rural household survey conducted in Wuwei county (Anhui province, China) in 2008. We apply two complementary approaches : a horizontal comparative analysis of occupational choice between non-migrants and return migrants, and a vertical investigation of the impact of migration experience on returnees only. Two main findings are drawn up from the estimation of probit models which account for potential selection bias and endogeneity. First, return migrants are more likely to be self-employed and to opt for higher ability jobs than non-migrants. Second, both return savings and the frequency of job changes during migration increase the likelihood for return migrants to become self-employed. These findings suggest that (a) working experience during migration enhances individual's human capital and entrepreneurial ability, and (b) repatriated migration experience is a key stimulating factor in promoting rural entrepreneur activity. |
| Keywords: | Return migrants, occupational change, entrepreneurship, Asia, China |
| JEL: | O15 J62 L26 O53 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1008&r=sbm |