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on Small Business Management |
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Issue of 2022‒08‒29
nineteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Philipp Brunner; Igor Letina; Armin Schmutzler |
| Abstract: | This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak and external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation tend to be profitable, but innovation-reducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.04856&r= |
| By: | Krol, Robert (Mercury Publication) |
| Abstract: | Abstract not available. |
| Date: | 2021–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:ajw:wpaper:11209&r= |
| By: | Stéphane Robin (UP1 - Université Paris 1 Panthéon-Sorbonne, THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université); Laurence Jacquet (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université) |
| Abstract: | We examine the R&D, innovation and productivity effects of R&D tax credits (R&DTC) in 8 EU countries, in the context of a proposed EU-wide "super deduction" on R&D expenditures. Our econometric analysis, performed on industry-level panel data, shows that past R&D feeds current R&D, whether it is conducted under an R&DTC or not. Our estimate of additionality during an R&DTC phase is generally close to 1. R&D intensity also affects patenting intensity positively in Belgium, Czech Republic, France, Spain and the UK, but this relationship is R&DTC-related only in Belgium, France and Spain. Only in France and the UK do we observe a full (yet fragile) R&D-innovation-productivity relationship. In the UK, this relationship is not affected by the R&DTC scheme. In France, a 1% increase in R&D conducted under the second to fourth phases of R&DTC (1999-2017) entails a cumulated 0.37% increase in patenting intensity, which translates to a 0.16% increase in productivity. The main policy implication of these results is that a "super-deduction" on R&D is likely to help the EU reach its "R&D at 3% of GDP" objective, but only time will tell how generous it must be to really spur innovation and productivity. |
| Keywords: | R&D Tax Credits,Public Support to R&D,Science and Technology Policy,European Policy JEL codes: O38,H25,H54 |
| Date: | 2022–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03681433&r= |
| By: | Kritikos, Alexander |
| Abstract: | Does personality matter? Is an individual who is open to experience more or less likely to become an entrepreneur? Is it better to score low or high in agreeableness for surviving as an entrepreneur? To the extent that personality captures one part of entrepreneurial abilities, which are usually unobservable, the analysis of traits and personality characteristics helps better understanding such abilities. This article reviews research on the relationship between personality and entrepreneurship since 2000 and shows that possessing certain personality characteristics will make it more likely that an individual will start an own business and hire staff. More specifically, with respect to the entry decision, research finds that nearly all so-called Big Five factors as well as several specific personality characteristics influence the entry probability into entrepreneurship. Further, entrepreneurs are more likely to hire, the higher they score in risk tolerance, trust, openness to experience, and conscientiousness. However, different factors such as low scores in agreeableness, the only Big Factor that does not affect entrepreneurial entry, influence entrepreneurial survival. And for some of characteristics that influence entrepreneurial entry, like high scores in the factor openness for experience or in risk tolerance, "revolving door effects" are found, explaining why some entrepreneurs subsequently exit again the market. |
| Keywords: | entrepreneurship,personality |
| JEL: | L26 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1137&r= |
| By: | Jeong, Hyunju; Suh, Dong Hee |
| Keywords: | Environmental Economics and Policy, Productivity Analysis, International Relations/Trade |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322122&r= |
| By: | Dilmetz, Daniel |
| Abstract: | This dissertation aims to answer current research questions related to entrepreneurship. Since the works of Joseph Schumpeter (1883 - 1950), who attributed the development of capitalism to entrepreneurship, it has been one of the most important factors influencing technological progress and the growth of economic structures. The motives of a person to become an entrepreneur are complex. While some founders actively pursue the goal of realizing themselves and being able to act autonomously, others discover an opportunity and develop an entrepreneurial initiative from this discovery, which ultimately results in their entrepreneurial action. Also, the change of circumstances, the environment, or other regularities can an individual to recognize an entrepreneurial opportunity. Ourselves have been experiencing such a change since the year 2020 when the Covid-19 pandemic changed our lives to an extent unimagined at that time. As a result, new problems of everyday life also arose, which were not infrequently addressed by innovations from start-up companies to ensure the safety of society in these times and still allow normal life to continue. Two years later, taking advantage of the technologies that have emerged, we have adapted. We now carry our vaccination records digitally at all times, use apps on our smartphones to track our whereabouts, and traditional meetings in our workday are replaced by digital meetings using apps like Zoom or Teams. Society is evolving and using the products and services of innovative young companies to counter the ”new now” and move on with life. In line with the high relevance of entrepreneurship for economic and social development and the advance of technological progress, research in this field has also expanded rapidly in recent decades, encompassing a considerable number of sub-fields. However, two questions, in particular, preoccupy this field of research: The origin of entrepreneurs and how they differ from other individuals, and the question of how entrepreneurs can exercise sustainable successful entrepreneurship. Concerning the origin of the entrepreneur, the question of whether founders are born or if the skills needed for successful entrepreneurship can be learned has prevailed almost since the beginning of research in the field of entrepreneurship. In the context of this question, educational institutions such as universities are the focus of research endeavors. Concerning the sustainable success of an enterprise, the acquisition of the necessary resources is crucial. In particular, securing financial resources is the most important challenge for the entrepreneur. From these two points of view, two of the largest scopes of research in the field of entrepreneurship have developed over the past decades: entrepreneurial education and entrepreneurial finance. This dissertation consists of a total of three studies that provide new insights in both areas and thus make a significant contribution to current entrepreneurial research. The first study focuses on the field of entrepreneurial education and investigates how the university ecosystem can influence students' innovation skills. Based on a survey of over 300 students before and after their first year within the university, we demonstrate in this study that individual elements of the university ecosystem can indeed have a positive impact on students' entrepreneurial development. Thus, this study also indicates through empirical findings that individuals can indeed learn the skills for successful entrepreneurial actions, thereby underscoring universities' role and relevance in this endeavor. The second and third studies deal respectively with the field of entrepreneurial financing, referring to a still rather young phenomenon in this field: crowdfunding as an alternative to traditional financing options such as venture capital financing. The second study examines how the use of words associated with creativity in the presentation of a crowdfunding campaign can affect its likelihood of success. This study is based on a dataset of more than 39,000 crowdfunding projects conducted between 2009 and 2019. The results of the study indicate that the use of words associated with creativity, when used to describe the campaign, has significant potential to in-crease the campaign's likelihood of success. This study thus makes a further contribution in terms of identifying signals for reducing information asymmetries between founders and investors. The third study then examines how project initiators can and should inform their supporters about the current status of the campaign. Using a dataset of 909 crowdfunding projects, this study investigates which topics have a particularly high potential to convince potential supporters of the quality of the project and, as a result, to make a financial contribution to the project through this information tool ("updates"). Each study discussed in this dissertation will be conducted with the help of empirical methods. The empirical methodology is explained in detail in each underlying chapter. Likewise, each underlying chapter of a study first deals with an overview of the current state of research and the derivation of the hypotheses related to the respective study. Subsequently, the empirical results of each study are presented and dis-cussed in detail. The final section of this dissertation summarizes the theoretical and practical contribution of the results obtained. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:133737&r= |
| By: | Barinova Vera (Gaidar Institute for Economic Policy); Zemtsov Tsepan (Gaidar Institute for Economic Policy); Tsareva Yulia (RANEPA) |
| Abstract: | Recently, the Russian government’s policy aimed at developing the small and medium-sized enterprise (SME) sector has included: the implementation of a reform of control and oversight activities; simplification of registration procedures for legal entities and individual entrepreneurs; digitalization of tax authorities; introduction of a tax maneuver for IT companies; expansion of support infrastructure facilities, etc. However, the contribution of SMEs to the economy remains modest compared to developed countries, and the sector’s performance deteriorated over the past two years. In 2021, the pandemic-induced harsh conditions for small businesses were: decreasing income, anti-epidemiological measures (lockdown in November, introduction of QR codes, masking regime, etc.). A considerable part of Russian small business belongs to the spheres that were among the most affected ones: retail trade in non-food products, provision of household services, and public catering. The coronavirus-induced crisis is unique in the scale of the imposed restrictions, due to the high contagiousness of the new infection and its duration. The situation is accentuated by the recurrence of morbidity waves, the emergence of new strains of the virus, and, consequently, the uncertainty of the end date and unpredictability of entrepreneurial risks. |
| Keywords: | Russian economy, small businesses, medium-sized enterprises, OVID-19, lockdown |
| JEL: | C53 E37 L21 L52 I18 I19 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2022-1208&r= |
| By: | Laura Abrardi; Elena Grinza; Allessandro Manello; Flavio Porta |
| Abstract: | We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers’ concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers’ concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH. |
| Keywords: | Work from home (WFH); teleworking; agile working; smart working; organizational performance; labor productivity; management by objectives (MBO); COVID-19; small- and medium-sized enterprises (SMEs); survey data |
| JEL: | D23 D24 M54 |
| Date: | 2022–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/346683&r= |
| By: | Sonia Baijot; Charlotte Le Chapelain |
| Abstract: | This article reviews recent literature on women entrepreneurship in the nineteenth century. We first examine the reasons why female entrepreneurship in the process of industrialization has so long remained ignored or considered at best a very marginal phenomenon. Second, this paper reviews the methods used in the recent revisionist literature in order to identify women entrepreneurs in the historical records and to assess the importance of their participation in entrepreneurial activities. |
| Keywords: | Women entrepreneurship, industrialization, nineteenth century. |
| JEL: | N13 N83 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-24&r= |
| By: | SBARDELLA Angelica; BARBIERI Nicolò; CONSOLI Davide; NAPOLITANO Lorenzo (European Commission - JRC); PERRUCHAS François; PUGLIESE Emanuele (European Commission - JRC) |
| Abstract: | The brief provides an overview of green technological development across European regions employing the Economic Fitness Complexity approach to establish a green technology space. The study explores the associations between comparative advantage in specific technological domains and a region’s capacity to develop green technologies, i.e. its Green Fitness. Furthermore, it addresses the interaction between the green and non-green knowledge bases, with a particular focus on whether regional know-how in the non-green technological realm can be exploited in the green domain and vice versa. To this aim, a metric of regional Green Potential is proposed. The analysis suggests that regions specialised in green domains, irrespective of their complexity, have a higher propensity to develop technologies connected with green technologies. Green technologies are linked mostly to technologies related to the production or transformation of materials; with engines and pumps; and with construction methods. The regions with the highest Green Potential are not necessarily those with the highest Green Fitness. The results suggest that there is a potential for green and non-green technological advances to generate positive spillovers in terms of capabilities to produce innovations across the spectrum of technological complexity. |
| Keywords: | Green Deal, Economic Complexity, Green Capabilities, Regional Green Potential |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc124696&r= |
| By: | Liu, Li (International Monetary Fund); Lockwood, Ben (University of Warwick); Tam. Eddy (King's College london) |
| Abstract: | This paper studies the effect of the VAT threshold on firm growth in the UK, using exogenous variation over time in the threshold, combined with turnover bin fixed effects, for identification. We find robust evidence that annual growth in turnover slows by about 1 percentage point when firm turnover gets close to the threshold, and weaker evidence of higher growth when the threshold is passed. Growth in firm costs shows a similar pattern, indicating that the response to the threshold is likely to be a real response rather than an evasion response. Firms that habitually register even when their turnover is below the VAT threshold (voluntary registered firms) have growth that is unaffected by the threshold, whereas firms that select into the Flat-Rate Scheme have a less pronounced slowdown response than other firms. Similar patterns of turnover and cost growth around the threshold are also observed for non-incorporated businesses. Finally, simulation results clarify the relative contribution of "noncrossers" ( firms who eventually register for VAT) and "non-crossers" (those who permanently stay below the threshold) in explaining our empirical findings. JEL Classification: H22 ; H25 ; H26 |
| Keywords: | VAT ; size-based threshold ; firm growth |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1418&r= |
| By: | Anne Albert-Cromarias (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]); Alexandre Asselineau; Grégory Blanchard |
| Abstract: | Although coopetition literature developed a lot for years, several dimensions remain under-studied. This paper addresses three of these gaps. First, the dilemma between value creation and value appropriation for coopetitors; second, the lack of empirical studies regarding the mechanisms of coopetition among micro-firms in traditional activities; third, the recent interest for geographic levels in coopetition, with a focus on the local level. Our research question is therefore: What are the mechanisms of value creation and value appropriation in local-level coopetition among micro-firms in traditional industries? We use an in-depth case study about a small French wine appellation, which is characterised by a modestly sized cultivated area occupied by small micro-firms, the existence of a cooperative cellar, but also a weak brand image. Our research contributes to the ongoing coopetition discussion in three ways: we enrich the literature on coopetition by documenting value creation and appropriation mechanisms, identifying nine different mechanisms that are collective or individual; we provide some empirical insights to coopetition literature regarding micro-firms and local-level coopetition; we produce some managerial recommendations. |
| Keywords: | Coopetition,Micro-firms,Value creation,Value appropriation,Value destruction,Wine |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03677321&r= |
| By: | Batabyal, Amitrajeet; Beladi, Hamid |
| Abstract: | We study a one-period model of an aggregate economy composed of cities and regions that demand vaccines designed to fight a pandemic such as Covid-19. The supply of vaccines is the outcome of Bertrand competition between two firms A and B. The marginal cost of producing the vaccine for both firms is stochastic and drawn from a uniform distribution. In this setting, we perform three tasks. First, we describe the equilibrium pricing strategies of the two firms and then we compute their mean ex ante profits. Second, we permit both firms to conduct risky R&D and then determine the conditions under which only one firm engages in R&D and conditions under which both do. Finally, we introduce a way of mimicking the effect of increased competition and then analyze the impact of this increased competition on the incentives to conduct R&D faced by the two firms. |
| Keywords: | Bertrand Duopoly, City, Innovation, R&D, Region, Vaccine |
| JEL: | L13 O32 R11 |
| Date: | 2022–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113758&r= |
| By: | Lamiae Benhayoun-Sadafiyine (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], TIM - Département Technologies, Information & Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]); Marie-Anne Le Dain (G-SCOP_CC - Conception collaborative - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Carine Dominguez-Péry (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Andrew C. Lyons (University of Liverpool) |
| Abstract: | SMEs increasingly participate in collaborative innovation networks (CINs), enabling them to access valuable external knowledge from other actors while maintaining high levels of internal competencies. The SME absorbs this knowledge to achieve reciprocal learning through its contribution to the common CIN goals, and one-way learning to improve its own organization's performance. This knowledge absorption varies according to the SME's context, described with factors such as the turbulence of its external environment, the motivations to contribute to the CIN, or the cognitive distance separating it from the network actors. To better guide this knowledge absorption, this research uses a two-stage mixed method to propose a contextualized operational measure of absorptive capacity (ACAP) for an SME embedded in a CIN. A qualitative phase consisting of semi-structured interviews was implemented first and enabled characterizing the SME's ACAP through a set of practices and dimensions that it could implement. Then a quantitative phase using the partial least squares (PLS) method established a model predicting the absorption dimensions and practices that the SME should master primarily according to its context in the CIN. Hence, this study provides SMEs with an instrument to assess their strengths and weaknesses with regard to ACAP in CINs. |
| Keywords: | SME,Collaborative network,Open innovation,Absorptive capacity,Inter-organizational learning,Partial least squares |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03144459&r= |
| By: | Maxwell Tuuli; Ngo Van Long |
| Abstract: | Productivity dispersion across countries has led to several studies on the determinants of firm level productivity and the role of macroeconomic policies in determining productivity. In this paper, we investigate the effect of fiscal consolidation on firm level productivity in 12 advanced economies by combining an updated dataset of fiscal consolidation measures with firm level productivity. We find that fiscal consolidation (i.e., discretionary tax hikes and spending cuts), is detrimental to firm level productivity in advanced economies. We also find that high levels of fiscal consolidation are particularly harmful to firm level productivity compared to lower levels of fiscal consolidation. Furthermore, we find that tax based fiscal consolidation hinders firm level productivity more compared to spending based fiscal consolidation. This implies that the size and composition of fiscal consolidation matter in understanding the relationship between fiscal consolidation and firm level productivity. |
| Keywords: | Fiscal consolidation; Taxes; Spending; Total Factor Productivity; firm level productivity; fiscal consolidation matter; fiscal consolidation measure; productivity dispersion; effect of fiscal consolidation; Productivity; Financial sector development; Global |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/126&r= |
| By: | NISHIGAKI Atsuko; NUMAMOTO Kazuki; HARADA Takashi; HIRAYAMA Yuka; WASHIDA Yuichi; HIGO Ai |
| Abstract: | From the perspective of utilizing design in business management, METI and JPO announced some characteristics of design management organization in the Declaration for Design Management. In this paper, we hypothesized that SMEs and large enterprises would benefit from having different design organizations and conducted a survey on how different organizations view design management. From this survey, we found that design management in SMEs is different from that of large enterprises, and that it is close to the elements in “The Nine Entrances†proposed by the Japan Patent Office. Seven similar factors were derived for large companies and SMEs, but for SMEs, many additional factors related to improving internal understanding were found. In particular, it is important to directly connect design management to business profits in the case of SMEs. Thus, when supporting the introduction of design management in SMEs, this paper concluded that for business construction (or reconstruction), it is desirable to provide support that is specific and appropriate to the situation of each company. This support should be provided by designers with specifically relevant design expertise. One policy implication from this paper is that building a support model for design management for SMEs is an important consideration for the direction of policy. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:22017&r= |
| By: | Kenza Morabbi (UCA - Université Cadi Ayyad [Marrakech]); Said Ouhadi (UCA - Université Cadi Ayyad [Marrakech]) |
| Abstract: | SMEs are the cornerstone of the Moroccan economy. They recruit, invest, and contribute strongly to economic growth. Indeed, the latter remains dependent on their growth and development. Nevertheless, contrary to what many people think, growth is not a common goal among SME managers. Some want to grow their businesses, while others are satisfied with the status quo. This research develops an in-depth analysis of the growth intention of Moroccan SMEs, while taking into account the crisis context in which it was conducted. In this sense, the study has two objectives: to understand through the eyes and perceptions of managers the impact that the crisis may have had on their business, and to understand their intention to grow during this context. After a literature review highlighting the role of the manager within the SME, and the results of the work on growth intention, we conducted, through a qualitative approach, four interviews with four Moroccan SME managers, located in Marrakech. The interviews, conducted between month 3 and month 4 of 2022, were transcribed according to the sociological method, and then analyzed by hand, through a horizontal and vertical analysis. Following this analysis, the results generated demonstrate that growth is a polyphonic concept, and that the intention to grow is protean: four modalities of the intention to grow have emerged. Strong growth intention, moderate growth intention, pending growth intention, and no growth intention. The results of this research contribute to the understanding of the perceptions of SME managers, which in return, would allow public authorities to put in place more adapted and therefore more useful support mechanisms in order to encourage them to grow. |
| Abstract: | Les PME constituent la pierre angulaire de l'économie marocaine. Elles recrutent, et investissent, et contribuent fortement dans la croissance économique. En effet, ce dernier reste tributaire de leur croissance et développement. Néanmoins, contrairement à ce que pensent beaucoup de gens, la croissance n'est pas une finalité commune entre dirigeants des PME. Certains désirent développer leurs entreprises, en revanche, d'autres sont satisfaits du statu quo. Cette recherche développe une analyse en profondeur de l'intention de croissance des PME marocaines, tout en prenant en compte le contexte de crise où elle a été menée. Dans ce sens, l'étude présente un double objectif : Comprendre à travers l'œil et perception des dirigeants l'impact qu'a pu avoir la crise sur leur activité, et appréhender leur intention de croissance durant ce contexte. Après une revue de littérature mettant la lumière sur le rôle du dirigeant au sein de la PME, ainsi que sur les résultats des travaux portant sur l'intention de croissance, nous avons mené, à travers une approche qualitative, quatre entretiens auprès de quatre dirigeants de PME marocaines, situées à Marrakech. Les entretiens conduits entre le mois 3 et le mois 4 de l'année 2022, ont été retranscrits selon la méthode sociologique, puis analysée à la main, à travers une analyse horizontale et verticale. À la suite de cette analyse, les résultats générés démontrent que la croissance est un concept polyphonique, et que l'intention de croissance est protéiforme : quatre modalités de l'intention de croissance ont émergé. L'intention de croissance forte, l'intention de croissance modérée, l'intention de croissance en suspens, et l'intention de non-croissance. Les résultats de cette recherche contribuent dans la compréhension des perceptions des dirigeants des PME, ce qui par conséquent, permettrait aux pouvoirs publics de mettre en place des dispositifs d'appui plus adaptés et donc plus utiles, afin de les encourager à se développer. |
| Keywords: | SME,crisis,growth intention,PME,crise,intention de croissance |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03694908&r= |
| By: | Robert W. Fairlie; Frank M. Fossen; Reid L. Johnsen; Gentian Droboniku |
| Abstract: | Previous estimates indicate that COVID-19 led to a large drop in the number of operating businesses operating early in the pandemic, but surprisingly little is known on whether these shutdowns turned into permanent closures and whether small businesses were disproportionately hit. This paper provides the first analysis of permanent business closures using confidential administrative firm-level panel data covering the universe of businesses filing sales taxes from the California Department of Tax and Fee Administration. We find large increases in closures rates in the first two quarters of 2020, but a strong reversal of this trend in the third quarter of 2020. The increase in closures rates in the first two quarters of the pandemic was substantially larger for small businesses than large businesses, but the rebound in the third quarter was also larger. The disproportionate closing of small businesses led to a sharp concentration of market share among larger businesses as indicated by the Herfindahl-Hirschman Index with only a partial reversal after the initial increase. The findings highlight the fragility of small businesses during a large adverse shock and the consequences for the competitiveness of markets. |
| JEL: | H25 I18 L26 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30285&r= |
| By: | Sebastian Link; Manuel Menkhoff; Andreas Peichl; Paul Schüle |
| Abstract: | This policy brief provides novel empirical evidence on the causal effect of increasing corporate taxes on firm investment. The study combines unique data on investment plans and their realizations of firms in the German industrial sector and data on more than 1,400 local tax changes in the specific system of business taxation in Germany. We show that firms reduce their investments if corporate taxes were increased. An increase of corporate tax rates to stabilize fiscal revenues would be especially costly during recessions. We conclude that fiscal policy should therefore avoid higher corporate taxation in times of economic crisis. Moreover, our results have implications for the op-timal design of fiscal federalism in Germany. Strong dependencies of municipalities on local business tax revenues should be avoided, as they can be very harmful during recessions. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:econpb:_44&r= |