nep-sbm New Economics Papers
on Small Business Management
Issue of 2018‒08‒13
twelve papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Public R&D Support and Firms' Performance - A Panel Data Study By Øivind Anti Nilsen; Arvid Raknerud; Diana-Cristina Iancu
  2. On the Choice of R&D Organization By Kabiraj, Abhishek; Kabiraj, Tarun
  3. Wealth inequality in the long run: A Schumpeterian growth perspective By Jakob B. Madsen; Antonio Minniti; Francesco Venturini
  4. Corporate material flow management in Thailand: The way to material flow cost accounting By Yagi, Michiyuki; Kokubu, Katsuhiko
  5. Financing Ventures By Jeremy Greenwood; Pengfei Han; Juan M. Sanchez
  6. The banking systems of Germany, the UK and Spain form a spatial perspective: The UK case By Flögel, Franz; Gärtner, Stefan
  7. Book Review - Entrepreneurial Neighbourhoods Towards an Understanding of the Economies of Neighbourhoods and Communities By Mohamed Buheji
  8. The Dynamics of Technology Transfer in a Catching-up Innovation System: Empirical Evidence and Actor Perceptions from the Estonian Biotechnology Sector By Margit Kirs; Veiko Lember; Erkki Karo
  9. Les entreprises de la branche du numérique : modes d'acquisition des compétences par le recrutement et la formation. Une exploitation de l'enquête DEFIS du Céreq By Jean-Marie Dubois; Laurence Lize; Patrick Rousset
  10. Competition and Firm Productivity: Evidence from Portugal By Pedro Carvalho
  11. When Does Advice Impact Startup Performance? By Aaron Chatterji; Solène Delecourt; Sharique Hasan; Rembrand M. Koning
  12. Innovation, jobs, skills and tasks: a multifaceted relationship By Mariacristina Piva; Marco Vivarelli

  1. By: Øivind Anti Nilsen; Arvid Raknerud; Diana-Cristina Iancu
    Abstract: We analyse all the major sources of direct and indirect R&D subsidies in Norway in the period 2002-2013 and compare their effects on individual firms’ performance. Firms that received support are matched with a control group of firms that did not receive support using a combination of stratification and propensity score matching. Changes in performance indicators before and after support in the treatment group are compared with contemporaneous changes in the control group. We find that the average effects of R&D support among those who obtained grants and/or subsidies are positive and significant in terms of performance indicators related to economic growth: value added, sales revenue and number of employees. The estimated effects are larger for start-up firms than incumbent firms when the effects are measured as relative effects (in percentage points), but smaller when these effects are translated into level effects. Finally, we do not find positive effects on return to total assets or productivity for firms who received support compared with the control group.
    Keywords: public policy, firm performance, treatment effects, stratification, propensity score matching, productivity
    JEL: C33 C52 D24 O38
    Date: 2018
  2. By: Kabiraj, Abhishek; Kabiraj, Tarun
    Abstract: This paper seeks to examine, in the context of Marjit (1991, Eco. Lett.) and Mukherjee and Marjit (2004, Gr. Dec. Nego.) models, the effect on the choice of R&D organization if the number of research lab is chosen by the firms optimally under R&D cooperation. Given the optimal form of R&D cooperation, the paper further studies the effect of introducing fee licensing under non-cooperative R&D. We show that our results substantially differ from those in the existing literature. The R&D cost, the success probability, and the size of innovation, all these play a crucial role.
    Keywords: R&D organization; Cooperative and non-cooperative research; Technology licensing; Cournot competition
    JEL: D43 L13 O32
    Date: 2018–04–01
  3. By: Jakob B. Madsen; Antonio Minniti; Francesco Venturini
    Abstract: This paper extends Piketty’s analysis of the wealth-income ratio used as a proxy for wealth inequality, to allow for innovation. Drawing on a Schumpeterian (R&D-based) growth model that incorporates both tangible and intangible capital and using historical data for 21 OECD countries, we find the wealth-income ratio to be significantly and positively related to R&D intensity and the fixed capital investment ratio, but negatively related to income growth. Accounting for the innovation-induced counteracting growth-effect on the wealth-income ratio, we show that the net effect of R&D on wealth inequality is positive.
    Keywords: Wealth-income Ratio, Piketty's Second Law, Schumpeterian Growth.
    JEL: D30 E10 E20 O30 O40
    Date: 2018–07
  4. By: Yagi, Michiyuki; Kokubu, Katsuhiko
    Abstract: In recent years, material flow cost accounting (MFCA) has gradually been recognized in Asia by the standardization of ISO 14051 and 14052 and by the project of dissemination undertaken by the Asian Productivity Organization (APO). However, MFCA is still not used across the board. This study analyzes the characteristics of material flow (MF) management to facilitate the expanded use of MFCA. The research framework of this study investigates the degree of MF management and the sequential relationships among financial factors, MF management, and waste performance, based on a questionnaire survey of non-financial listed companies in Thailand. Fifty-eight percent of the respondent firms answer that they are managing MF information (self-rating). Meanwhile, 50%, 49%, 29%, and 24% of the firms actually disclose the amounts of total waste, hazardous waste, raw materials consumed, and recycled waste, respectively. The results of this study show that respondent firms with MF management (self-rating) are more likely to manage/disclose total waste, hazardous waste, and raw materials consumed than those without it. In terms of financial factors, cost ratio and profitability are likely to affect firm decisions regarding whether to manage the MF. Additionally, MF management is likely to decrease the hazardous waste ratio. The series of results shows that firms in Thailand are more likely to be concerned about hazardous waste management than resource efficiency. Therefore, hazardous waste should probably be thoroughly managed, as a preliminary step in the promotion of MFCA.
    Keywords: Material flow management; Thailand; Waste performance; Material flow cost accounting; Data envelopment analysis
    JEL: M11 Q53 Q56
    Date: 2018
  5. By: Jeremy Greenwood; Pengfei Han; Juan M. Sanchez
    Abstract: The relationship between venture capital and growth is examined using an endogenous growth model incorporating dynamic contracts between entrepreneurs and venture capitalists. At each stage of financing, venture capitalists evaluate the viability of startups. If viable, venture capitalists provide funding for the next stage. The success of a project depends on the amount of funding. The model is confronted with stylized facts about venture capital; viz., statistics by funding round concerning the success rates, failure rates, investment rates, equity shares, and IPO values. Raising capital gains taxation reduces growth and welfare.
    JEL: E13 E22 G24 L26 O16 O31 O40
    Date: 2018–07
  6. By: Flögel, Franz; Gärtner, Stefan
    Abstract: As expected, this comparison of the German and the UK banking systems shows substantial differences between the countries. In the UK, savings banks disappeared long ago and other regional banks have never become important in lending to business. Instead, the five large commercial banks dominate business lending. Hardly any short-distance lenders still currently exist in the UK according to our qualitative distance classification of banks and other financial providers for small firms. The closure of the very last local savings bank in 2017 marks the preliminary end of traditional regional banking in the UK and indicates that the financial crisis indirectly challenges small and regional banks disproportionally. This is because the low interest rate environment and more complex banking regulations affect small and regional banks more, making it almost impossible for small standalone banks to survive. Problems in small firm finance have been discussed in the UK at least since the 1990s and government support has been given to community development financial institutions and credit unions in order to close the financial gap for small firms. Due to the financial crisis, access to finance has become increasingly difficult for small businesses, especially in remote regions, so the debate on how to reinvent local banking (and hence how to improve access to finance) has gathered momentum. Three options are under discussion. The first is to create in one stroke a regional and public banking group with a substantial market share by restructuring the Royal Bank of Scotland into a network of local and public banks. The second is to recreate regional banks on an entirely new basis with the help of a new association that would provide economies of scale and knowledge in order to enable local people to create their local banks. The third is to establish local banking by upscaling other financial providers, such as credit unions and responsible finance providers. Whether any of these options are realistic is difficult to say right now. One additional option that could improve SME finance are the so-called challenger banks, a type of bank unknown in Germany. These banks differ in terms of ownership, business model and regional market orientation, yet our findings suggest that they tend to operate on a more decentralised (short-distance) business model than large commercial banks.
    Keywords: comparing banking systems,SME finance in the UK,decentralised vs. centralised banking
    JEL: D43 E21 G01 G21 G38 R12
    Date: 2018
  7. By: Mohamed Buheji (International Institute of Inspiration Economy)
    Abstract: Literature doesn't address the importance of neighbourhoods despite its growing importance for entrepreneurial development with minimal resources. There is a clear shortage in addressing the topic from multidisciplinary perspectives that highlight the importance of local entrepreneurship across different boarders. van Ham et al (2017) work comes to explore how entrepreneurship can influence transformation in neighbourhoods and communities, particularly through entrepreneurially driven residents who can help in reducing socioeconomic instability and poverty. Future effects of neighbourhood entrepreneurs are explored along with the challenges it brings specially to low income neighbourhoods and how it reflects even on the economics of the places. A recommendation for further studies be done in different geographies in order to bring in more global solutions that would enhance the innovation and creativity of rural areas of many developing and emerging economy countries.
    Keywords: Low Income Neighbourhoods,Future Foresight,Entrepreneurship,Entrepreneurial Neighbourhoods,Resilience Economy
    Date: 2018
  8. By: Margit Kirs; Veiko Lember; Erkki Karo
    Abstract: Based on the case studies from the Estonian biotechnology sector, we explore the development trajectories of academic business ventures in a country where the formal and linear model of technology transfer and commercialization have been at the core of the innovation policy, but the exploitation and diffusion of knowledge generated through formal university-industry linkages has remained limited. We show that even in the area of biotechnology, where one could expect this model of technology transfer to be most visible, the model is not functioning in practice and the policy has had limited impact. The more systemic evolutionary approach to innovation and knowledge diffusion seems to better grasp the contextual aspects of technology transfer in catching-up context, while also providing more informative input for policy-making.
    Date: 2017–11
  9. By: Jean-Marie Dubois (CEREQ - Centre d'études et de recherches sur les qualifications - ministère de l'Emploi, cohésion sociale et logement - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche); Laurence Lize (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Patrick Rousset (CEREQ - Centre d'études et de recherches sur les qualifications - ministère de l'Emploi, cohésion sociale et logement - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche)
    Abstract: In digital companies, in which value creation and therefore growth are strongly linked to innovation, the acquisition and adaptation of skills appears to be a major challenge for both companies and employees. The ability of companies to integrate into a collective process of innovation is fueled by two complementary dynamics. On the one hand, the recruitment of highly qualified and operational employees, in a competitive context, is necessary. On the other hand, the different types of continuing training (formal, non-formal and informal) are emerging as essential means of adapting the skills and knowledge of employees to the rapidity of technological change. The analysis of the Céreq DEFIS survey illustrates the recruitment and continuing training practices of companies in this branche.
    Abstract: Dans les entreprises du numérique, où la création de valeur et donc la croissance sont fortement liées à l'innovation, l'acquisition et l'adaptation des compétences apparaissent comme un enjeu majeur, aussi bien pour les entreprises que pour les salariés. La capacité des entreprises à s'intégrer dans un processus collectif d'innovation est alimentée par deux dynamiques complémentaires. D'un côté, le recrutement d'un personnel très qualifié et opérationnel, dans un contexte souvent concurrentiel, est nécessaire. D'un autre côté, les différents types de formation continue (formels, non formels et informels) apparaissent comme une solution indispensable pour adapter les compétences et les savoirs des salariés face à la rapidité des changements technologiques. L'exploitation de l'enquête DEFIS conçue par le Céreq illustre les pratiques des entreprises de cette branche en matière de recrutement et de formation continue.
    Keywords: digital,company,continuing training,qualification,recruitment,numérique,entreprise,formation continue,diplôme,recrutement
    Date: 2018–06
  10. By: Pedro Carvalho
    Abstract: This paper presents empirical evidence on the impact of competition on firm productivity for the Portuguese economy. To that effect, firm-level panel data comprising information between 2010 and 2015 gathered from the Integrated Business Accounts System (Portuguese acronym: SCIE) is used. The database enables the construction of economic and financial indicators, which allow for isolating the impact of competition on firm-level productivity. We find a positive relationship between competition and both total factor productivity and labor productivity. This relationship is found to be robust to different specifications and in accordance with the results in the literature obtained for other countries.
    Keywords: Competition, Productivity, Portugal
    JEL: D40 D24 O47
    Date: 2018–07
  11. By: Aaron Chatterji; Solène Delecourt; Sharique Hasan; Rembrand M. Koning
    Abstract: Why do some entrepreneurs thrive while others fail? We explore whether the advice entrepreneurs receive about people management influences their firm's performance. We conducted a randomized field experiment in India with 100 high-growth technology firms whose founders received in-person advice from other entrepreneurs who varied in their managerial style. We find that entrepreneurs who received advice from peers with an active approach to managing people–instituting regular meetings, setting goals consistently, and providing frequent feedback to employees–grew 28% larger and were 10 percentage points less likely to fail than those who got advice from peers with a passive people-management approach two years after our intervention. Entrepreneurs with MBAs or accelerator experience did not respond to this intervention, suggesting that formal training can limit the spread of peer advice.
    JEL: M1 M12 M13 O32
    Date: 2018–07
  12. By: Mariacristina Piva (DISCE, Università Cattolica); Marco Vivarelli (DISCE, Università Cattolica - UNU-MERIT, Maastricht, The Netherlands and IZA, Bonn, Germany)
    Abstract: The essay deals with the complex and articulated relationship between technology and employment, offering food for thought about the effects of the current technological trajectory on qualifications and tasks.
    Keywords: innovation, technology, employment, skills, tasks
    JEL: O33
    Date: 2018–05

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