nep-sbm New Economics Papers
on Small Business Management
Issue of 2016‒05‒08
eighteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Banking Consolidation and Small Firm Financing for Research and Development By Chang, Andrew C.
  2. Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms By Amandine Pinget; Rachel Bocquet; Caroline Mothe
  3. Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  4. Policy instruments to improve MSMEs access to external financing in developing countries: A survey By Modeste Dayé; Romain Houssa; Paul Reding
  5. Bank Capital Pressures, Loan Substitutability, and Nonfinancial Employment By Lee, Seung Jung; Stebunovs, Viktors
  6. Historical Shocks and Persistence of Economic Activity: Evidence from a Unique Natural Experiment By Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
  7. Informations- und Datenquellen zu den Finanzierungsstrukturen mittelständischer Unternehmen By Pahnke, André
  8. Testing the effect of firm performance on growth for the Chilean agribusiness By Brenes-Munoz, Thelma
  9. Entrepreneurial Choices of Initial Human Capital Endowments and New Venture Success By Vera Rocha; Mirjam van Praag; Timothy B. Folta; Anabela Carneiro
  11. Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks By Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
  12. Productivity Gap and Vertical Spillover: Evidence from Vietnam By Bin Ni
  13. Finance and Demand for Skill : Evidence from Uganda By Beck, T.H.L.; Homanen, M.; Uras, Burak
  14. When Regional Innovation Policies Meet Policy Rationales and Evidence: A Plea for Policy Analysis By Borrás, Susana; Jordana, Jacint
  15. Global Entrepreneurship Monitor: reporte regional del Biobío 2014-2015 By Adriana Abarca Montero; Jorge Espinoza Benavides; Vesna Mandakovic; Patricio Rojas Quezada; Claudia Yáñez Valdés
  16. La politica industriale tra Stato e Mercato By Paolo Carnazza
  17. “Innovation, heterogeneous firms, and the region” By Enrique López-Bazo; Elisabet Motellón
  18. Innovation and Access to Finance – A Review of the Literature By Michele Cincera; Anabela Marques Santos

  1. By: Chang, Andrew C.
    Abstract: This paper examines the effect of increased market concentration of the banking industry caused by the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) on the availability of finance for small firms engaged in research and development (R&D). I measure the financing decisions of these small firms using a balanced panel of Small Business Innovation Research (SBIR) applications. Using difference-in-differences, I find IBBEA decreased the supply of finance for small R&D firms. This effect is larger for late adopters of IBBEA, which tended to be states with stronger small banking sectors pre-IBBEA.
    Keywords: Banking Deregulation ; IBBEA ; Interstate Bank Branching Deregulation ; Market Concentration ; Research and Development ; Riegle-Neal ; Small Business Innovation Research
    JEL: G21 G28 G39 O30
    Date: 2016–04–08
  2. By: Amandine Pinget (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Recent literature explores the determinants of environmental innovations (EI) but rarely addresses obstacles to these innovations. To our knowledge, no previous study accounts for antecedents of EI to explore the various perceived barriers to EI for small and medium-sized enterprises (SMEs). Noting the importance of SMEs in European economies, this article identifies the extent to which SMEs perceive barriers to environmental innovations, considering their type, number, and intensity. With a merged data set of 435 French SMEs, we investigate different perceptions of environmentally innovative SMEs, compared with those of technologically innovative SMEs and non-innovative ones, using a multiple treatment model that integrates the antecedents. We thereby analyze SME CEO's perceptions of barriers to EI. The barriers are not only more numerous but also more important for SMEs that engage in environmental innovation activity compared with those that have introduced only technological innovation or those that do not undertake any innovation activity.
    Keywords: SME,Multiple treatment model,CEO perceptions,Antecedents,Barriers,Environmental innovation
    Date: 2015
  3. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB)
    Abstract: Globalized production networks, or global value chains, provide an opportunity for small and medium-sized enterprises (SMEs) to upscale their business models and to grow across borders. This process can enhance SME competitiveness, create more jobs, and promote inclusive growth in developing Asia. The Asian Development Bank and the Asian Development Bank Institute recognize the importance of integrating SMEs into global value chains. To provide pathways for such integration, this study examines ways of encouraging participation in value chains, and explores policy solutions to address the financial and nonfinancial barriers faced by these enterprises.
    Keywords: small and medium enterprise; global value chains; sme finance; production networks; supply chain finance; trade finance; SME internationalization
    Date: 2015–10
  4. By: Modeste Dayé (CRED, University of Namur); Romain Houssa (CRED, University of Namur); Paul Reding (CRED, University of Namur)
    Abstract: This paper presents the salient factors that characterize important aspects of firms’ access to external finance in developing countries. Cross-country data show that micro, small and medium-sized enterprises (MSMEs) face more external financing constraints in Low Income Countries than in their rich counterparts. To explain this fact we distinguish both demand and supply factors underlying external financing constraints. We then argue for a catalytic role that development cooperation can play in alleviating these constraints. We present an illustration based on the policy instruments that have been used by development cooperation. Our particular interest is to document how well the Belgium Development Cooperation support of MSMEs compares to that provided by four other European countries: France, Germany, The Netherlands, and Sweden. We conclude with a discussion on the critical policy issues as regards the effectiveness of these interventions.
    Keywords: MSME, external finance, DFI, information asymmetry
    JEL: G23 O16 Y10
    Date: 2015–06
  5. By: Lee, Seung Jung; Stebunovs, Viktors
    Abstract: We exploit the cross-state, cross-time variation in bank tangible capital ratios-brought about by bank branch deregulation on a state-by-state basis-to identify the effects of bank capital pressures on employment and firm dynamics during two waves of changes in bank capital regulation. We show that stronger capital pressures temporarily slowed down growth in employment in industries that depend on external finance, retarding growth in the average size of firms rather than in the number of firms. Such effects were particularly strong for smaller firms that may not have had access to national capital and bank loan markets. Our findings indicate that a tightening of capital requirements may have significant real effects, in part because of the lack of substitutes for bank loans.
    Keywords: Bank capital ratios ; bank capital regulation ; loan substitutability ; employment ; firm dynamics
    JEL: G21 G28 G30 J20 L25
    Date: 2016–04
  6. By: Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
    Abstract: This paper investigates the persistence of entrepreneurship in the region of Kaliningrad between 1925 and 2010. During this time period the area experienced a number of extremely disruptive shocks including; devastation caused by World War II, a nearly complete replacement of the native German population by Soviets, and 45 years under an antientrepreneurial socialist economic regime followed by a shock-type transition to a market economy. Nevertheless, we find a surprisingly high level of persistence of industry-specific self-employment rates in the districts of the Kaliningrad region. Our analysis suggests that persistence of entrepreneurship is higher in regions with a history of successful entrepreneurship. That is, in regions where a specific industry was particularly efficient and entrepreneurial activity was especially pronounced.
    Keywords: Entrepreneurship, regional culture, persistence
    JEL: L26 N94 P25 P5
    Date: 2016–04
  7. By: Pahnke, André
    Abstract: Bei der Diskussion um die Finanzierung bzw. Eigenkapitalausstattung mittelständischer Unternehmen rücken gegenwärtig die Möglichkeiten zur Fremdkapitalaufnahme, neue Finanzierungsformen und damit die sich verändernden Rahmenbedingungen bei der Kreditvergabe an kleine und mittlere Unternehmen in den Vordergrund. Verschiedenste Institutionen veröffentlichen in diesem Zusammenhang, teilweise regelmäßig, entsprechende Studienergebnisse und Kennzahlen(-berichte). Der vorliegende Beitrag gibt daher einen kurzen Überblick über die Informations- und Datenquellen, die in den letzten Jahren häufig zur Erklärung des Finanzierungsverhaltens bzw. der Finanzierungsstrukturen mittelständischer Unternehmen herangezogen wurden.
    Abstract: The ongoing discussing on financing and the equity base of small and medium-sized enterprises (SMEs) in Germany increasingly focuses on potential sources of debt financing, new methods of funding, and thereby on the general framework for bank borrowings to SMEs. In this context, various institutions publish relevant studies, reports, and key figures - to some extent on a regular basis. Therefore, the present paper provides a short overview of information and data sources that have been used in recent years to describe and explain the financing behaviour and financial structures of German SMEs.
    Keywords: Daten,Finanzierung,Mittelstand,KMU,Data,Finance,SME
    JEL: C80 G32
    Date: 2016
  8. By: Brenes-Munoz, Thelma
    Abstract: Previous studies of the industrial organization field find that the relationship between firm performance and growth is weak. The objective of this paper is to test this relationship at different quantiles of the firm growth distribution. We also explore the effect of technology gaps and export status on growth. For this, we use Penalized Quantile Regression with Fixed Effects on 420 Chilean agribusiness firms. Key results show that performance, measured as technical efficiency, has a significant and heterogeneous impact on revenue growth. The effect is stronger on slow growing firms: one point increase in technical efficiency increases revenue growth by 1.2 % at the 0.10 quantile, the effect is 0.4 % at the 0.90 quantile. Hence, two key aspects shall be considered in future studies of firm growth and performance: first, to use adequate indicators for performance which capture the entirety of the production process, and second, to consider the non-linearity of their relationship.
    Keywords: firm growth, technical efficiency, quantile regression, panel data, fixed effects, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, L20, D22, C21, C23,
    Date: 2015
  9. By: Vera Rocha (Copenhagen Business School, Denmark); Mirjam van Praag (Copenhagen Business School, Denmark); Timothy B. Folta (University of Connecticut, United States); Anabela Carneiro (University of Porto, Portugal)
    Abstract: The founder (team)’s human capital is a vital determinant of future firm performance. This is a stylized fact. Less is known about the effect of the human capital of the initial workforce hired by the founder(s). We study the performance consequences of a founder’s choice of the initial workforce’s human capital (quantity and quality), besides the human capital of the founder(s). The analysis is based on matched employer-employee data and covers about 5,300 startups in manufacturing industries founded by individuals coming from employment between 1992 and 2007. We acknowledge that initial hiring decisions are endogenous and correlated with the human capital of the founders and the ownership structure of startups (single founder versus team of founders). Given the stickiness of initial choices, human capital decisions at entry turn out to be a close to irreversible matter with significant implications for post-entry survival and growth of the firm.
    Keywords: Human capital; entrepreneurship; startups; firm performance
    JEL: J24 L26 M13
    Date: 2016–04–22
  10. By: Rueda-Cantuche , José M. (JRC); Sousa, Nuno (DG Trade)
    Abstract: KEY FINDINGS • As trade agreements create the conditions for an increase in EU exports they also foster more and better job opportunities for European citizens. From 1995 to 2011 the number of jobs in the EU that were supported by exports of goods and services to the rest of the world increased by 67% to reach around 31 million. These represented 1 in 7 jobs across the 27 EU Member States (up from 1 in 11 jobs in 1995). They tended to be high-skilled and were on average better paid. • In order to remain competitive EU exporters increasingly rely also on foreign inputs. This means that the employment they support progressively spans beyond the EU's borders. In 2011 about 19 million jobs outside the EU depended on EU exports. This means that in 2011 a total of 50 million people around the world had jobs thanks to the EU exporting industries. • Exports are important for employment in all Member States. In 2011 only in Greece (7%), Portugal (8%) and Spain (9%) did the EU exports to the rest of the world support less than 10% of total employment. In Luxembourg they supported a third of all jobs; in Ireland 25%. • Increasingly the jobs supported by EU exports are related to services. Services exports are growing fast but that is not the whole story. The importance of services sectors as suppliers of inputs to the production of the goods for export (“mode 5 services” exports) also stands out from the data. In 2011, 40% of the employment supported by the exports of the primary and manufacturing sectors was in fact in services. • The sales of goods and services to the US market were responsible for 15% of the EU employment supported by EU exports; other key markets to sustaining export-related jobs in the EU were China (10%), Russia (6%) and Turkey (4%).
    Keywords: EU exports; income; employment
    JEL: F16
    Date: 2016–02–01
  11. By: Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
    Abstract: This paper analyses how the formation of collaboration networks affects firm-level innovation by applying the ‘Goldilocks principle’. The ‘Goldilocks principle’ of optimal distance in innovation networks postulates that the best firm-level innovation results are achieved when the partners involved in the network are located at the ‘right’ distance, i.e. ‘not too close and not too far’ from one another, across non-geographical proximity dimensions. This principle is tested on a survey of 542 Norwegian firms conducted in 2013, containing information about firm-level innovation activities and key innovation partners. The results of the ordinal logit regression analysis substantiate the Goldilocks principle, as the most innovative firms are found amongst those that collaborate with partners at medium levels of proximity for all non-geographical dimensions. The analysis also underscores the importance of the presence of a substitution-innovation mechanism, with geographical distance problems being compensated by proximity in other dimensions as a driver of innovation, whilst there is no support for a potential overlap-innovation mechanism.
    Keywords: Proximities, innovation, networks, collaboration, Goldilocks principle, Norway
    JEL: O31 O33 D85
    Date: 2016–05
  12. By: Bin Ni (Graduate School of Economics, Osaka University)
    Abstract: Technology spillover induced by foreign direct investment has been proved to be an important channel to boost the productivity growth of local firms in the host country, especially in the context of developing economies. However, the empirical evidence remains inconsistent as to what extent the scale of spillover is affected by the productivity gap between foreign investors and local firms. This paper attempts to make clear such mechanism by applying Vietnamese firm-level data. Focusing on Asian investors, we show that the relationship between the productivity gap and vertical spillover takes an inverted-U shape. To be specific, we use stepwise chow test to decide on the cutoff value of total factor productivity (TFP) as the grouping criteria, and divide investors into low, middle and high-TFP groups. The results reveal that local suppliers in Vietnam can benefit the most from the Asian investors with middle-level TFP, whereas the benefits from the other two groups fade away. The finding is strongly robust even after we control the other spillover-influential factors such as firms' own effort to innovate, foreign firms' ownership, country and industry heterogeneity, and no matter whether we use stochastic frontier or Levinsohn & Petrin measurement of TFP. It thus provides novel evidence that investors with advanced technology do not necessarily diffuse their know-how to local partners. This implies it is important that both Vietnamese local firms and investors with superior technology work in the same direction to stimulate more corporations with each other.
    Keywords: technology spillover, productivity gap, firm-level data, Vietnam
    JEL: D22 F21 Q56
    Date: 2016–03
  13. By: Beck, T.H.L. (Tilburg University, Center For Economic Research); Homanen, M.; Uras, Burak (Tilburg University, Center For Economic Research)
    Abstract: We explore the empirical interaction between firm growth, financing constraints and job creation. Using a novel small business survey from Uganda, we find that the extent to which small businesses expand skilled employment as their sales and profits increase depends significantly on access to external funding. The results are robust to the inclusion of various firm level controls, region and sector fixed effects. We address reverse causality concerns by providing empirical evidence using planned hiring regression specifications.
    Keywords: financial access; trained and experienced employment; uganda
    JEL: O15 O16 O55
    Date: 2016
  14. By: Borrás, Susana (Copenhagen Business School); Jordana, Jacint (IBEI & Universitat Pompeu Fabra)
    Abstract: In spite of recent advancements regarding regional innovation policy rationales and evidence, there are few analyses about the actual features of existing regional innovation policies. Nevertheless, a policy analysis perspective is important in order to recognise their distinctive patterns across regions, and to understand how rationales and evidence can be translated into policy-making. To this purpose, this paper develops a framework to study the extent to which regional innovation policies have changed during the past few years. Since the mid-2000s there has been an important development of innovation policy rationales, advocating for more specialisation; likewise, greater data availability at the regional level has allowed more sophisticated assessment of innovation performance. Finally, the crisis since 2008 has had ravaging effects in some regions, with job losses and severe economic sluggishness. Therefore, it is reasonable to expect transforming dynamics in regional innovation policies. Against this backdrop, the paper compares the institutional frameworks and budgetary priorities of four Spanish regions during the period 2001-2014: Catalonia, the Basque country, Galicia, and Andalusia. In so doing, it aims at studying the extent to which regional governments have readily addressed past and new challenges related to their regional innovation system, and if so, how.
    Keywords: Catalonia; Basque country; Galicia; Andalusia; regional innovation system; smart specialisation; policy change; regional advantage; policy mixes; policy instruments; regulatory governance; Spain
    JEL: E61 O31 O38
    Date: 2016–04–19
  15. By: Adriana Abarca Montero; Jorge Espinoza Benavides; Vesna Mandakovic; Patricio Rojas Quezada; Claudia Yáñez Valdés (School of Business and Economics, Universidad del Desarrollo)
    Keywords: GEM, Entrepreneurship, Concepción (Chile)
    Date: 2016
  16. By: Paolo Carnazza
    Abstract: Il presente lavoro intende soffermarsi sul ruolo della politica industriale, in Italia, cercando di individuarne le prospettive sia di breve che di medio-lungo periodo. Dopo avere illustrato i principali risultati di una recente ricerca sullefficacia della politica industriale, lanalisi mette a confronto due differenti approcci: il primo volto ad attribuire allo Stato un importante ruolo nel definire e impostare interventi strutturali di politica economica ed industriale; il secondo finalizzato a minimizzare lintervento statale a sostegno del sistema produttivo. Successivamente, la ricerca si sofferma sui pi recenti interventi di politica industriale adottati in Italia a favore soprattutto dellinnovazione e delle neo-imprese ad alto contenuto tecnologico; questi interventi delineano una vera e propria filosofia di politica industriale e sembrano porsi in una posizione intermedia tra i due differenti approcci. Concludono il lavoro alcune riflessioni volte a delineare le future ed auspicabili tendenze della politica industriale che dovrebbero essere collocate allinterno di un Progetto-Paese condiviso per il raggiungimento di obiettivi di medio-lungo periodo. This paper aims to analyze the role of industrial policy, in Italy, trying to identify the perspectives either in the short or in medium-long term. After having illustrated the main results of a recent research on the effectiveness of industrial policy, the analysis compares two different approaches: the first attributes to the State an important role in defining a set of structural economic and industrial measures; the second finalized to minimize the State intervention in support of the productive system. Moreover, the research focuses on the more recent measures of industrial policy adopted in Italy especially for increasing innovation and new firms with high technological content: these interventions appear to outline a real philosophy of industrial policy and can be considered in between the two different visions. In the conclusion, some thoughts are developed in order to indicate the future and desirable trends of industrial policy to be placed inside a Project-Country and shared with medium - long term objectives.
    Keywords: innovazione, politica industriale
    JEL: A L50 O38
    Date: 2016–04–18
  17. By: Enrique López-Bazo (AQR Research Group-IREA, University of Barcelona); Elisabet Motellón (AQR Research Group-IREA, University of Barcelona. Universitat Oberta de Catalunya)
    Abstract: This paper investigates the role of regional determinants on innovation performance controlling by the firm’s absorptive capacity and other sources of firm heterogeneity. The findings for a sample of firms in Spain support the hypothesis that regional determinants matter, though their role is subtler than the one frequently assumed. Rather than a direct influence on firm’s innovation, the regional context moderates the effect of internal determinants. In the case of product innovation the most important mechanism of interaction seems to be operating through cooperation in innovation, whereas for process innovation it seems to be through highly skilled labour.
    Keywords: product innovation, process innovation, firm, multilevel modelling, Spanish regions JEL classification: D21; O31; R10; R15
    Date: 2016–04
  18. By: Michele Cincera; Anabela Marques Santos
    JEL: O31 O38 O52
    Date: 2015

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