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on Small Business Management |
| By: | Karen GEURTS; Johannes VAN BIESEBROECK |
| Abstract: | Firm turnover and growth recorded in administrative data sets differ from underlying firm dynamics. By tracing the employment history of the workforce of new and disappearing administrative firm identifiers, we can accurately identify de novo entrants and true economic exits, even when firms change identifier, merge, or split-up. For a well-defined group of new firms entering the Belgian economy between 2004 and 2011, we find highly regular post-entry employment dynamics in spite of the volatile macroeconomic environment. Exit rates decrease with age and size. Surviving entrants record high employment growth that is monotonically decreasing with age in every size class. Most remarkably, we find that Gibrat’s law is violated for very young firms. Conditional on age, the relationship between employment growth and current size is strongly and robustly positive. This pattern is obscured, or even reversed, when administrative entrants and exits are taken at face value. De novo entrants’ contribution to job creation is relatively small and not very persistent, in particular for (the large majority of) new firms that enter with fewer than five employees. |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces14.25&r=sbm |
| By: | Rafał Kierzenkowski; Jochebed Kastaneer |
| Abstract: | Entrepreneurship is an important driver of economic growth, job creation and competitiveness. However, the small and medium-sized enterprises (SME) sector has been severely affected by the crisis, with access to bank finance being particularly difficult. Various government-sponsored schemes have been introduced to ease credit conditions. Developing alternatives to bank lending options for SME finance is important but will take time. Restructuring banks’ balance sheets is essential to step up bank lending to SMEs in the medium term. Beyond financing issues, boosting innovation would support productivity gains, and SME competitiveness and growth. Also, easing labour market regulation would further support SME development. A large share of small businesses consists of self-employed with no employees. The tax system should minimise distortions for the creation and expansion of businesses. Despite significant progress made in lowering barriers to entrepreneurship, there is scope to further reduce administrative burdens. This Working Paper relates to the 2014 OECD Economic Survey of the Netherlands (www.oecd.org/eco/surveys/economic-survey-netherlands.htm). Favoriser le développement de PME efficaces aux Pays-Bas L'entrepreneuriat est un vecteur important de croissance économique, de création d'emplois et de compétitivité. Néanmoins, le secteur des petites et moyennes entreprises (PME) a été durement touché par la crise, l'accès aux financements bancaires étant particulièrement difficile. Divers dispositifs ont été mis en place par les pouvoirs publics pour assouplir les conditions de crédit. Il est important que se développe une offre de financements alternatifs au crédit bancaire pour les PME, mais cela prendra du temps. La restructuration des bilans des banques est une condition essentielle de l'augmentation des crédits bancaires aux PME à moyen terme. Au-delà des problèmes de financement, des mesures favorisant l'innovation renforceraient les gains de productivité, ainsi que la croissance et la compétitivité des PME. Par ailleurs, un assouplissement de la réglementation du marché du travail contribuerait également au développement des PME. Une forte proportion des petites entreprises est constituée de travailleurs indépendants sans salariés. Il faudrait que le système d'imposition atténue les distorsions relatives à la création et au développement des entreprises. Malgré les progrès sensibles accomplis en termes de réduction des obstacles à l'entrepreneuriat, il est possible d'alléger encore les charges administratives. Ce Document de travail se rapporte à l’Étude économique de l’OCDE des Pays Bas, 2014 (www.oecd.org/fr/eco/etudes/pays-bas.htm ). |
| Keywords: | finance, Netherlands, entrepreneurship, administrative burdens, taxation, self-employment, bank lending, banks, EPL, PMR, innovation, SMEs, travailleurs indépendants, EPL, innovation, Pays-Bas, entrepreneuriat, PME, PMR, finance, crédit bancaire, fiscalité, charges administratives |
| JEL: | G01 G21 G23 J08 |
| Date: | 2014–08–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1157-en&r=sbm |
| By: | Hottenrott, Hanna; Lawson, Cornelia (University of Turin) |
| Abstract: | Academic researchers face mobility related decisions throughout their careers. We study the importance of team and organisational characteristics of the home departments for career choices of departing researchers in the fields of science and engineering at higher education institutions in Germany. We find that the organisational environments–the nests–shape career paths. Research funding, research performance in terms of patents and publications as well as the industry ties of department heads shape job choices. In particular, public research grants increase the probability that departing researchers take a research job at a university or public research centre, while grants from industry increase the likelihood that they take a job in industry. Publication performance of the department head relates to R&D jobs in public, but not in industry and patents predict the probability that departing researchers will move to small and medium-sized firms. For these firms seeking technological knowledge from former university employees may be particularly crucial. Academic start-ups are more likely to be a job destination for departing researchers from technical universities, from departments with higher publication output and with a research focus on experimental development. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201423&r=sbm |
| By: | Fabio Lamantia; Mario Pezzino |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1414&r=sbm |
| By: | Nadine Levratto; Denis Carré |
| Abstract: | This paper seeks to determine the exact role played by regional dynamics in the creation of companies. The notion that territorial dynamics influence entrepreneurial activity seems to be backed up, first of all, by the fact that it is at the regional level that the direct influence of the ecosystem of wealth and of material, human and organizational resources is strengthened through agglomeration effects. We empirically address this question considering the case of French departments in 2011. In order to take into account the role played by the neighbourhood and the resulting spatial dependence, we estimate the sensitivity of both the overall entry rate and the entry rate in the manufacturing industry using spatial econometric estimation techniques, an approach which enables us to control the effect of spatial autocorrelation. Our results show that the creation of companies highly depends on local factors and that the source of local dependence differs according to the entry rate used as an explained variable. Whereas a spatial lag applies at the overall level, the creation of companies in the manufacturing industry is more oriented by exogenous shocks so that a spatial error model is more appropriate. |
| Keywords: | entrepreneurship, entry rate, spatial dependence, French departments |
| JEL: | L26 R11 C21 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2014-45&r=sbm |
| By: | Gastón Carracelas (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República) |
| Abstract: | In this paper we analyze the existence of intra-industry productivity spillovers on Uruguayan manufacturing firms associated with the increased presence of transnational companies. We perform an econometric estimation bi-stage using a panel of manufacturing firms for the period 1997-2008. In the first stage, we estimate the total factor productivity (TFP) using different econometric techniques (Olley & Pakes, 1996; Blundell & Bond, 1998; Levinsohn & Petrin, 2003). In the second stage, we estimate the effect of the increasing presence of transnational companies in the sector on TFP of domestic firms. We make modifications to the base model in order to analyze the effects of the existence of heterogeneous spillovers based on the "absorptive capacity" of domestic firms and the technology-intensive sectors. We also analyze the effects of the recent process of FDI inflows on two keys sectors: Food-beverages and wood-paper. The results indicate that there are no effects of significant productivity spillovers for the average manufacturing sector. However, the large domestic firms with absorbing capacity receive spillovers significantly higher than other large manufacturing firms, while the evidence indicates that there are positive spillovers in low-technology sectors. The effects on the food-beverage sector are significantly lower than those observed on other industrial sectors, while, in the wood-paper sector there are evidence of larger effects. |
| Keywords: | tfp, transnational corporations, productivity spillovers. |
| JEL: | F23 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ude:wpaper:0813&r=sbm |
| By: | Nikos Bozionelos (Audencia Recherche - Audencia); Thomas Hoyland (HUBS - Hull University Business School - Hull University) |
| Abstract: | The article focuses on cultural diversity and whether it has economic value. Though it is undisputed that cultural diversity within a country increases entrepreneurial behaviour the question that remains is whether this heightened entrepreneurial activity results in greater economic achievements. The article reports on a study that was carried out within the London area that presented an ideal setting given that London is a "super-diverse" city with intense economic activity. The results showed that ethnic diversity in the team of owners and partners of firms was indeed associated with greater innovativeness. This was in line with the view that diversity brings a variety of perspectives, skills and ways of thinking that in turn are translated into greater novelty in products or services and ways of performing tasks. On the other hand, however, ethnic diversity at the top did not translate into success at bringing innovations to the market, neither to revenue growth. Neither did the idea that diversity would be especially beneficial for innovation in knowledge-intensive industries find support. Finally, the data suggested that immigrants become entrepreneurs by choice rather than due to lack of better alternatives. The findings of the study raise the serious question of why the greater innovativeness that diversity brings does not generally translate into market and economic success, which opens new avenues for future research. |
| Keywords: | Diversity; Super-diversity; Global cities; Innovativeness; Market success; Economic success; Discrimination; Financial institutions |
| Date: | 2014–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01060334&r=sbm |
| By: | Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg) |
| Abstract: | This paper studies the effects of public research (publications) and innovation output (patents) on national economic growth with the help of a GMM panel regression including 114 countries. Effects on productivity growth and capital and labor inputs are distinguished. Furthermore, different time lags are examined for the various analyzed effects and two time periods as well as less and more developed countries are studied separately. The results confirm the effect of innovation output on productivity for more developed countries. Simultaneously, innovation output is found to have negative impacts on capital and labor inputs, while public research is found to have positive impacts on labor inputs. |
| Keywords: | national growth, innovation, public research, growth |
| JEL: | O11 O31 E10 C23 |
| Date: | 2014–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2014-03&r=sbm |
| By: | Beck, Thorsten; Cull, Robert |
| Abstract: | This paper uses cross-country firm-level surveys to gauge access to financial services and the importance of financing constraints for African enterprises. The paper compares access to finance in Africa and other developing regions of the world, within Africa across countries, and across different groups of firms. It relates firms'access to finance to firm and banking system characteristics and discusses policy challenges. |
| Keywords: | Access to Finance,Banks&Banking Reform,Debt Markets,Bankruptcy and Resolution of Financial Distress,Microfinance |
| Date: | 2014–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7018&r=sbm |
| By: | Viitamo, Esa |
| Abstract: | The growth of services - leveraged by the servitization of manufacturing - stresses the urgency of novel approaches and metrics in assessing the performance of services. Building on the statistical and socio-economic paradigms, this paper outlines the microeconomic frame for the integrative analysis of service productivity. The integrative frame is further refined with the complementary premises of the organization theory. Organizations enable link descriptive theorizing of services to the real world contexts that are influenced by uncertainties and the bounded rationality of the business managers. The contingency argument implies that when technology, strategy and the organization of a service firm are mutually consistent, it is possible to address the intangible aspects of service productivity through the tangible characteristics of the firm’s organization and the underlying strategy. The organizational method in the analysis of service productivity is illustrated by the productivity regimes of two Nordic banking corporations. The empirical findings suggest that the propositions of the organization theory may have a wider validity across organization types. The paper makes tentative propositions how the productivity regime of a business corporation shows up in its inter-firm relations and network strategies. |
| Keywords: | productivity, service, organization, networks |
| Date: | 2014–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:26&r=sbm |