nep-sbm New Economics Papers
on Small Business Management
Issue of 2011‒07‒13
thirteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Catching up in total factor productivity through the business cycle: Evidence from Spanish manufacturing firms By Álvaro Escribano; Rodolfo Stucchi
  2. Learning by doing in science linkages By Broström, Anders
  3. Who do High-growth Firms Employ, and Who do they Hire? By Coad, Alex; Daunfeldt, Sven-Olov; Johansson, Dan; Wennberg, Karl
  4. Innovation and Productivity By Bronwyn H. Hall
  5. Relationships and The Availability of Credit To New Small Firms By Colombatto, Enrico; Melnik, Arie; Monticone, Chiara
  6. Robust estimates of exporter productivity premia in German business services enterprises By Alexander Vogel; Joachim Wagner
  7. Nascent entrepreneurship and the developing individual: Early entrepreneurial competence in adolescence and venture creation success during the career By Obschonka, Martin; Silbereisen, Rainer K.; Schmitt-Rodermund, Eva; Stuetzer, Michael
  8. Spatial econometrics of innovation: Recent contributions and research perspectives By Corinne Autant-Bernard
  9. New approaches to the analysis of the capital structure of SME's: empirical evidence from Spanish firms. By Cardone Riportella, Clara; Cazorla Papis, Leonardo
  10. مقترح لتعزيز الأداء التصديرى للمشروعات الصغيرة والمتوسطة في مصر By Alasrag, Hussien
  11. How Theory Meets Practice: An Analysis of the Capital Structure of Spanish SMEs. By Cardone Riportella, Clara; Cazorla Papis, Leonardo
  12. “Geography of talent and regional differences in Spain” By Ebru Kerimoglu; Burhan Can Karahasan
  13. What do we know about the financial behaviour of the Spanish SME?: an empirical analysis. By Cardone Riportella, Clara; Casasola, María José

  1. By: Álvaro Escribano (Universidad Carlos III de Madrid); Rodolfo Stucchi (Inter-American Development Bank)
    Abstract: After facing more than a decade of price stability and economic growth, Spain is experiencing now one of the most significant slowdowns in economic activity across EU economies. There is a general consensus the severity of this slowdown is due to the low level and low rates of growth experienced by total factor productivity (TFP) during more than a decade. Using firm-level data over the period 1991-2005 we study the effect of recessions on the productivity growth of firms with different level of productivity (i.e., technological leaders and technological followers) and we find that firms tend to converge in recessions. In expansions, on the other hand, we find higher persistence in terms of productivity and no convergence. These findings are consistent with the predictions of technological diffusion models and the fact that firm’s innovation is procyclical. We also find that human capital and innovation are key factors that could enhance the productivity of Spanish manufacturing firms.
    Keywords: productivity catching up; technology diffusion; pro-cyclical innovation; technological leaders; business cycle
    JEL: C23 C52 D24 L16 L60
    Date: 2011–06–28
  2. By: Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: Since the contribution of Cohen et al. (2002), it is well established that linkages between firms and public research organisations (PROs) serve purposes of both suggesting new R&D projects and completing existing projects. However, the extant literature has little to say about whether these two types of outcomes are linked or independent effects. This paper examines how a firm’s ability to absorb useful impulses to new R&D projects from interaction with public research organisations depends on how and how well the firm is able to utilise such linkages in project completion. An analysis of Swedish firms suggests that interaction provides impulses to further R&D primarily when it is successfully linked to achieving objectives in ongoing R&D projects of the firm. However, linkages which are focused on contributions to short-term projects are less likely to generate useful impulses. Moreover, not only are linkages which support both long-term and short-term objectives better than linkages which solely serve short-term objectives; firm-PRO linkages in which short-term objectives play a less accented role are most likely to facilitate valuable impulses to further R&D and innovation.
    Keywords: university-industry; externalities from public research; impulses to innovation
    JEL: O32 O33 O38
    Date: 2011–06–30
  3. By: Coad, Alex (Science and Technology Policy Research (SPRU), Freeman Centre, University of Sussex); Daunfeldt, Sven-Olov (The Swedish Retail Institute (HUI) and Dalarna University); Johansson, Dan (The Ratio Institute); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics)
    Abstract: The purpose of this paper is to study who high- growth firms (HGFs) hire using a matched employer-employee dataset for all knowledge intensive industries in Sweden, where high growth is measured over the period 1999-2002. The results indicate that HGFs to a larger extent employ young people, immigrants, and individuals with longer unemployment periods. However, these patterns seem contingent on the stage of firm evolution. HGFs that have already realized rapid growth seem to start focusing on hiring individuals from other companies, even though immigrants are still overrepresented among new employees.
    Keywords: Gazelles; firm growth; rapid firm growth; high-impact firms
    JEL: D24 L25 L26
    Date: 2011–07–01
  4. By: Bronwyn H. Hall
    Abstract: What do we know about the relationship between innovation and productivity among firms? The workhorse model of this relationship is presented and the implications of analysis using this model and the usually available data on product and process innovation are derived. The recent empirical evidence on the relationship between innovation and productivity in firms is then surveyed. The conclusion is that there are substantial positive impacts of product innovation on revenue productivity, but that the impact of process innovation is more ambiguous, suggesting some market power on the part of the firms being analyzed.
    JEL: O30
    Date: 2011–06
  5. By: Colombatto, Enrico; Melnik, Arie; Monticone, Chiara
    Abstract: We analyze the loans that small, newly established firms obtain from the banks by certain relationships based on a set of small, young Italian companies founded during the 1992–2004 period. According to our investigation, the amount of borrowing is determined primarily by the size of the firm, and the ability to offer collateral. Contrary to expectations, however perceived risk has a weak influence. The length of relationship influences borrowing in a none linear way.
    Keywords: young firms, bank loans, collateral, relationships
    JEL: L26 G21 G32
    Date: 2011–07
  6. By: Alexander Vogel (Leuphana University Lüneburg, Institute of Economics, Germany); Joachim Wagner (Leuphana University Lüneburg, Institute of Economics, Germany)
    Abstract: A large and growing number of micro-econometric studies show that exporting firms are more productive than firms that sell their products on the home market only. This so-called exporter productivity premium qualifies as a stylized fact. Only recently researchers started to look at the role of extreme observations, or outliers, in shaping these findings. These studies use micro-econometric methods that are robust against outliers to show that very small shares of firms with extreme values drive the result. The large exporter productivity premium found for samples of firms including outliers are dramatically smaller in samples without these extreme observations. Evidence on this, however, is limited so far to firms from manufacturing industries. This note adds comparable evidence for firms from the business services industries. We find that the estimated exporter productivity premium is statistically significant and relevant from an economic point of view when a standard fixed effects estimator is used to control for unobserved firm characteristics, but that it drops to zero when a robust estimator is applied.
    Keywords: Exporter productivity premium, services firms, robust estimation, panel data
    JEL: F14 C23 C81 C87
    Date: 2011–07
  7. By: Obschonka, Martin; Silbereisen, Rainer K.; Schmitt-Rodermund, Eva; Stuetzer, Michael
    Abstract: What predicts a person's venture creation success over the course of the career, such as making progress in the venture creation process and multiple successful venture creations? Applying a life span approach of human development, this study examined the effect of early entrepreneurial competence in adolescence, which was gathered retrospectively by means of the Life History Calendar method. Human and social capitals during the founding process were investigated as mediators between adolescent competence and performance. Findings were derived from regression analyses on the basis of prospective and retrospective data from two independent samples (N=88 nascent founders; N=148 founders). We found that early entrepreneurial competence in adolescence had a positive effect on making progress in the venture creation process. Nascent founders' current human and social capital also had a direct effect, but it did not mediate the effect of early competences. Finally, the data revealed that early entrepreneurial competence in adolescence positively predicted habitual entrepreneurship (multiple successful venture creations) exhibited over a longer period of the individual career (specifically, 18 years). In linewith the results fromprospective longitudinal studies on early precursors of entrepreneurship, our findings underscore the long neglected importance of adolescent development in the explanation of entrepreneurial performance during the subsequent working life.
    Keywords: Nascent entrepreneurship; Entrepreneurial success; Adolescent competence; Venture creation; Human and social capital; Habitual entrepreneurship
    JEL: L26 J24 M13
    Date: 2010–10–06
  8. By: Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon)
    Abstract: Preliminary introduced by Anselin, Varga and Acs (1997) spatial econometric tools are widely used in economic geography of innovation. Taking into account spatial autocorrelation and spatial heterogeneity of regional innovation, this paper analyzes how these techniques have improved the ability to quantify knowledge spillovers, to measure their spatial extent, and to explore the underlying mechanisms and especially the interactions between geographical and social distance. It is also argued that the recent developments of spatio-dynamic models opens new research lines to investigate the temporal dimension of both spatial knowledge flows and innovation networks, two issues that should rank high in the research agenda of the geography of innovation.
    Keywords: Geography of innovation; spatial correlation; spatio-dynamic panels; innovation
    Date: 2011–06–30
  9. By: Cardone Riportella, Clara; Cazorla Papis, Leonardo
    Abstract: The main objective of this paper is to analyze the factors determining the capital structure of Spanish small and medium-sized enterprises. This analysis is grounded on agency theory, pecking order theory, and the signaling approach. The following elements were taken into consideration: i) the quantitative variables of the enterprises, and ii) qualitative or strategic variables, finally providing an analysis of the explanatory power of the firms' reputation, the ownership and control structure, and the relationship between the SMEs and the finance company. A definition of the relationships which might be expected between the proposed variables and the total borrowing ratio, according to the conceptual framework under consideration was given as well. A survey of 410 Spanish SMEs was considered in the empirical analysis. Firstly, we divided the survey into groups, according to the debt-equity ratio, and the application of an ANOVA test, then we tested for significant differences in the variables for each group. Next, we established a model of hierarchical regression for an overall comparison of the hypotheses that the theoretical model provided. Among the most relevant results, we should highlight that the only proposed hypotheses to be tested were those referring to the variables: 'number of finance companies' and 'existence of real covenants unrelated to the business'. It may be said that dealing with a greater number of companies and establishing a personal covenant increases the possibility of fund-raising on the credit market, thereby avoiding a situation of credit rationing. However, there is no confirmation of the explanatory power of the reputation or the ownership and control structure variables.
  10. By: Alasrag, Hussien
    Abstract: Micro, small and medium sized enterprises (M/SMEs) are a dynamic force for sustained economic growth and job creation. They are a valid, crucial component of a vibrant industrial society.M/SMEs stimulate private ownership and entrepreneurial skills; they are flexible and can adapt quickly to changing market demand and supply conditions; they generate employment, help diversify economic activities and make significant contribution to export and trade.This paper aims to present a proposal to enhance the exports of small and medium enterprises in Egypt.
    Keywords: small and medium sized enterprises (M/SMEs); export performance of SMEs; Egypt
    JEL: E0 E2 L26 E6 F1 L53
    Date: 2011–07
  11. By: Cardone Riportella, Clara; Cazorla Papis, Leonardo
    Abstract: The article analyzes the factors determining the capital structure of the Spanish small and medium enterprises [SMEs]. The analysis is grounded on the agency theory, the signalling approach and the pecking order theory. In particular, the article provides a qualitative and quantitative analysis about the impact of company brand, the ownership and control structure, and the relationship between the SMEs and their own financial policy. This analysis is based on defining the expected relationships that one might consider between the referred variables and the total debt ratio. In this regard, the analysis will be conducted by means of considering a survey of 410 Spanish SMEs where an ANOVA test will be applied. Then, a hierarchical regression model will allow comparison of the hypotheses made.
  12. By: Ebru Kerimoglu (Istanbul Technical University, Department of Urban and Regional Planning); Burhan Can Karahasan (Istanbul Bilgi University, Department of International Finance)
    Abstract: Tentative empirical evidence suggests that the agglomeration of talent contributes to regional development. However, given that talented people are not evenly distributed across regions, this paper seeks to determine how the concentration of talent affects patterns of regional development. Here, we empirically evaluate the effects of the distribution of talent on regional differences by means of a detailed analysis of the 17 Autonomous Communities of Spain between 1996 and 2004. We hypothesise that regions specialising in strategic sectors that are creative and which can be assumed to enjoy rapid growth in productivity will experience faster rates of development and, in turn, that this concentration of talent will have a positive impact on the region’s economic performance. Thus, we believe that this mechanism can explain the marked regional imbalances in Spain. Our findings confirm that regional differences, measured in terms of GDP per capita and by, - industrial and service- oriented production, are influenced by the Communities’ talent bases as determined by, educational attainment and employment in assumed to be strategic for regional development, inasmuch as these sectors provide economic specialization.
    Keywords: Talent, Regional differences, Panel data, Spain. JEL classification: C33, O18, R11, J24.
    Date: 2011–06
  13. By: Cardone Riportella, Clara; Casasola, María José
    Abstract: The main objective of this work is to analyze the capital structure of Spanish small and medium-sized enterprises from the point of view of the "pecking order theory". The Data base employed to test our hypotheses comes from the SABI (Sistema de Análisis de Balances Ibéricos). The contribution of this paper are basically: i) the database used in the empirical analysis of the Spanish financial companies behaviour and ii) the panel data allow us to control the possible existence of fixed effects associated to each company as well as the endogeneity problems through the use of instrumental variables models. By means of the so-called, "pecking-order-theory" we make a test of the capital structure againsts the size, age and activities within the sector.

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