nep-sbm New Economics Papers
on Small Business Management
Issue of 2012‒02‒08
five papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Economic Performance of U.S. Multinational Agribusinesses: Foreign Direct Investment and Firm Strategy By Garcia-Fuentes, Pablo; Ferreira, Gustavo; Kennedy, P. Lynn
  2. Does Labor Diversity Promote Entrepreneurship? By Marianna Marino; Pierpaolo Parrotta; Dario Pozzoli
  3. SMEs and the challenge to go public: evidence from a recent survey By Marianna Caccavaio; Jacopo Carmassi; Giorgio Di Giorgio; Marco Spallone
  4. Geographical Analysis of US Green Sector Industry Concentration By Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
  5. Trends in Entrepreneurial Activity in Central and East European Transition Economies By André van Stel; J. Cieslik Cieslik

  1. By: Garcia-Fuentes, Pablo; Ferreira, Gustavo; Kennedy, P. Lynn
    Abstract: This paper empirically assesses the sequential relationships among firm strategic factors, FDI activity, and economic performance for a sample of U.S.-based Multinational agribusinesses. The most important findings of this research is a positive direct effect of FDI on performance, the complementary effect between FDI and firm strategic factors (positive and significant interaction terms) on performance, and the positive effect of FDI on performance given some thresholds of firm strategic factors. Specifically, it provides insights about the direct effect of FDI on performance, as well as about the joint effect of firm size and FDI, marketing intensity and FDI, and capital intensity and FDI on performance. These findings provide evidence that FDI activity is an important factor for U.S. agribusiness financial strength.
    Keywords: Economic performance, Foreign direct investment, Firm strategic factors, Agribusiness, Agribusiness, International Relations/Trade, Marketing, F230, L250,
    Date: 2012
  2. By: Marianna Marino (École Polytechnique Fédérale de Lausanne,); Pierpaolo Parrotta (Department of Economics and Business, Aarhus University, Denmark); Dario Pozzoli (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: We find evidence that workforce educational diversity promotes entrepreneurial behavior of employees as well as the formation of new firms, whereas diversity in demographics hinders transitions to selfemployment. Ethnic diversity favors entrepreneurship in financial and business services.
    Keywords: Labor diversity, entrepreneurship, transitions to self-employment
    JEL: C26 J24 L26
    Date: 2012–01–04
  3. By: Marianna Caccavaio (LUISS Guido Carli University); Jacopo Carmassi (LUISS Guido Carli University); Giorgio Di Giorgio (LUISS Guido Carli University); Marco Spallone (Universitˆ degli studi di Chieti e Pescara and LUISS Guido Carli University of Rome)
    Abstract: Italian SMEs go public much less than SMEs located in other European countries, even though their relevance for the national economy is relatively higher in terms of employment and value added. Why do Italian SMEs so scarcely rely on equity as an external source of finance, despite the option of getting listed on SME-dedicated stock market segments? In this paper we address this question by analyzing the responses to a questionnaire that we submitted to a sample of listed firms and institutional investors. We also suggest policy interventions to provide Italian SMEs with the appropriate incentives for listing.
    Keywords: SMEs, IPO, equity financing, financial constraints.
    JEL: G1 G3
    Date: 2012
  4. By: Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
    Abstract: This paper analyzes the geographic distribution of âgreen energyâ sector clustering in the lower 48 United States using recent developments in industry concentration analysis. Evidence suggests that the ten green energy subsectors and the aggregate of the firms comprising the green energy sector are regionally concentrated. Positive changes in industry concentration from 2002 to 2006 tended to be greatest in non-metropolitan counties, suggesting comparative advantage with respect to site location for the composite of firms making up these sectors.
    Keywords: Agglomeration, Location Quotient, Renewable Energy, Community/Rural/Urban Development, Industrial Organization, Research and Development/Tech Change/Emerging Technologies,
    Date: 2012
  5. By: André van Stel; J. Cieslik Cieslik
    Abstract: After 1989, radical changes in the level of entrepreneurial activity have taken place in the Central and East European (CEE) region countries, transitioning from the communist to a market economy system. In this paper we explore these developments at the macro level of countries. In particular, we investigate developments in business ownership rates in four CEE transition economies (Czech Republic, Hungary, Poland and Slovak Republic) in the period 1989-2008, and compare them with developments in other OECD countries. To this end we make use of EIM’s COMPENDIA data base, which contains harmonized data on the number of business owners in OECD countries. Data for the four CEE region countries under consideration have recently been added to COMPENDIA. Our analysis reveals that, since the fall of the Berlin Wall in 1989, business ownership rates in the four CEE countries have been converging rapidly towards the levels of other OECD countries, and more specifically, Western European countries. This shows that the communist system did not have prolonged negative effects on the private business sector in these four countries. Instead, based on their institutional and cultural roots, or ‘civilization fundamentals’, these CEE countries were able to rebuild the entrepreneurial sector in a relatively short period of transition. Finally, in spite of the general trend of convergence towards Western European countries, we also find sizable differences among these four CEE countries in the level and development of business ownership since 1989.
    Date: 2012–01–23

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