nep-sbm New Economics Papers
on Small Business Management
Issue of 2022‒05‒30
seven papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The evolution of owner-entrepreneurs’ taxation: five tax regimes over a 160-year period By Elert, Niklas; Johansson, Dan; Stenkula, Mikael; Wykman, Niklas
  2. Resilience in the Time of Covid-19: Lessons Learned from MENA SMEs By Zouheir EL-SAHLI; Mouyad ALSAMARA
  4. Productivity By John Van Reenen
  5. Riding Out the COVID-19 Storm: How Government Policies Affect SMEs in China By Joy Chen; Zijun Cheng; Robin Kaiji Gong; Jinlin Li
  6. Leadership and governance challenges in delivering place-based transformation through smart specialisation: Insights and policy implications from a metropolitan innovation leader region By Fil Kristensen, Iryna; Pugh, Rhiannon; Grillitsch, Markus
  7. Employee Relations Practices and Firm performance: A Conceptual Model Proposal By Abdeljalil Miliani; Aziz El Khazzar; Imad Lhassan

  1. By: Elert, Niklas (Research Institute of Industrial Economics (IFN)); Johansson, Dan (Örebro University School of Business); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)); Wykman, Niklas (Örebro University School of Business)
    Abstract: The institutional literature suggests that long-term tax incentives are crucial for entrepreneurs, but studies on this topic are hampered by theoretical and empirical problems related to how to define and measure entrepreneurial income. We resolve these problems by drawing on a theoretical definition of the entrepreneur as an owner, which enables us to identify entrepreneurship empirically by means of investments made by active owners of closely held firms. Using detailed Swedish tax data, we analyze the tax incentives for such owner-entrepreneur investments from 1862 to 2018, thereby highlighting the evolution of a general institutional phenomenon through a long-run, in-depth, country-specific analysis. We calculate the annual marginal effective tax rate (METR) on capital income for investments, distinguishing between average- and top-income entrepreneurs, and between three sources of finance. We identify five tax regimes that indicate substantial differences in institutional quality over time according to the magnitude of the METR and METR differences between average- and top-income entrepreneurs and across sources of finance. Increased taxation of owner-entrepreneurs helps explain the absence of new large entrepreneurial firms in Sweden after World War II, while improved incentives can be associated with Sweden’s recent entrepreneurial renaissance.
    Keywords: high-impact entrepreneurship; institutional quality; arginal effective tax rates; tax regimes; tax reforms
    JEL: H21 H31 H32 L25 L26 N44
    Date: 2022–05–12
  2. By: Zouheir EL-SAHLI; Mouyad ALSAMARA
    Abstract: We investigate the effects of the Covid-19 pandemic on small and medium-sized enterprises (SMEs) in four non-oil-exporting MENA countries (Jordan, Morocco, Tunisia, and Egypt). Using data from a recent enterprise survey, we highlight several new findings. MENA SMEs resorted to wage and work hours reductions more readily than layoffs in the wake of the pandemic. Within SMEs, larger firms are more resilient, recover faster, and adapt more often. On the sector level, the accommodation and food services sector is the worst affected in most outcomes. There is, however, clear recovery in Q2 (versus Q1) 2021 across sectors and countries. Furthermore, SMEs that switch to remote work are less likely to face closures, recover faster, and adapt more frequently, signaling higher resilience and adaptability. On the other hand, participation in government assistance programs does not improve firm outcomes, whereas firms that participate in international trade are more resilient and adaptable in the face of the shock. The results of the study carry very important policy implications to support SMEs in developing countries in time of extreme exogenous shocks.
    Keywords: Afrique
    JEL: Q
    Date: 2022–04–28
  3. By: Anne Albert-Cromarias (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Alexandre Asselineau (CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))
    Abstract: This article deals with the mechanism of coopetition formation from a network perspective, focusing in the wine industry. Through a comprehensive approach, we study the case of four vineyards in central France that are located in a low-profile wine-growing region and made up of very small firms fighting in a highly competitive market. While everything seems to encourage them to collaborate, these vineyards have so far remained unable to develop an effective coopetition strategy beyond a few specific initiatives. We seek to identify the reasons for these difficulties by analysing exogenous and endogenous coopetitive drivers. Our results provide theoretical contributions theory by showing that: the formation stage can lead to effective or ineffective coopetition; coopetition in an embedded network is specific; and coopetition intentionality plays a role in this formation stage.
    Keywords: Wine,Small business,Coopetition,Network,Coopetition formation
    Date: 2022
  4. By: John Van Reenen
    Abstract: Economics is the study of how to share out scarce resources. But it is also about how to make those resources less scarce by creating a bigger economic pie to share. The key to economic growth is increased productivity - producing more goods or services relative to the amount of money and work going in. Economists study how firms and countries can become more productive.
    Keywords: Productivity, Management, Growth, Innovation, R&D, Technology, Firms
    Date: 2022–03–03
  5. By: Joy Chen (Cheung Kong Graduate School of Business); Zijun Cheng (National School of Development, Peking University); Robin Kaiji Gong (Department of Economics, Hong Kong University of Science and Technology); Jinlin Li (National School of Development, Peking University and Harvard Kennedy School)
    Abstract: Based on a nationally representative survey on SMEs in China, we study the impact of government policy interventions on SMEs during the COVID-19 pandemic. Our findings are three-fold. First, regional and local lock-down policies decrease SMEs' incidence of reopening and delay their expected reopening in the near future, likely by reducing consumer demand. Second, stabilization policies in the form of payment deferrals and exemptions significantly improve SMEs' cash flows and further stimulate their operational recovery. This effect is more pronounced for firms with larger shares of high-skilled employees. Last, financial support policies do not appear to be effective in alleviating SMEs' cash constraints or encouraging the reopening of small businesses, potentially due to difficulties in accessing policy-oriented loans and misallocation of credit. Our findings shed new light on the policy debates on supporting SMEs during the COVID-19 pandemic.
    Keywords: COVID-19, Policy, China, SME
    JEL: D22 H71 H81 L23
    Date: 2020–07
  6. By: Fil Kristensen, Iryna (HEC Montreal); Pugh, Rhiannon (CIRCLE, Lund University); Grillitsch, Markus (CIRCLE, Lund University)
    Abstract: t.b.d.
    Keywords: smart specialisation; change agency; regional development
    JEL: R58
    Date: 2022–05–13
  7. By: Abdeljalil Miliani (UAE - Université Abdelmalek Essaâdi); Aziz El Khazzar (UAE - Université Abdelmalek Essaâdi); Imad Lhassan (UAE - Université Abdelmalek Essaâdi)
    Abstract: Employee relations management has become an important topic in management sciences, for practitioners and theorists. Also, it's an aspect of human resource management that has an impact on the performance of SMEs and large firms in the 21st century due to increased competition, changing customer needs, technology and globalization in an ever-changing business environment. In the same context, global and local firms are challenged to build good relationships with their employees in order to improve their performance (financial and non-financial performance) in a changing business environment. Aspects of employee relations that can affect firm performance include employee engagement, employee expression, and employee involvement. When it comes to performance, this is a polysemous concept that is difficult to define. However, there are several researchers who have increasingly focused on the criteria for evaluating firm performance, which are based on the financial and non-financial conception of performance, and which have a relationship with social factors. This paper aims to shed original light on a subject that is still little addressed in management sciences. Our goal is to study the contribution of employee relations practices to firm performance. Through a critical and in-depth reading, we will be able to propose a new research model to explain the impact of employee relations practices on firm performance. The model developed states that employee relations practices indirectly influence the level of firm performance. Moreover, it shows that the variables related to human capital (job satisfaction), without forgetting justice at work (organizational variable) fill a central place and favor the contribution of employee relations to firm performance.
    Keywords: Firm performance,Job Satisfaction,Employee Relations,Organizational Justice
    Date: 2022

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