|
on Small Business Management |
|
Issue of 2024‒09‒30
fifteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Michael Fritsch (Friedrich Schiller University Jena) |
| Abstract: | This article discusses the concept of entrepreneurial ecosystems. In particular, three propositions are made for further development of the concept. First, it is argued that entrepreneurial ecosystems should be regarded a part of the regional innovation system. Second, the scope of the concept should be expanded beyond high-performance start-ups and their founders to include the entire universe of "‘everyday" entrepreneurship. Third, the concept should account for the incumbent firms and the regional workforce. The paper then outlines main challenges of further development of the concept. |
| Keywords: | Regional entrepreneurship, entrepreneurial ecosystems, regional development, entrepreneurship policy |
| JEL: | L26 R11 O2 |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-0067 |
| By: | Camarero Garcia, Sebastian; Murmann, Martin |
| Abstract: | Business creation is economically important, and unemployment precedes the creation of a substantial share of new firms. Yet, most research has focused on analyzing the effects of unemployment insurance policies on re-employment outcomes, ignoring self-employment. In this paper, we analyze how the potential duration of unemployment benefits, a fundamental design choice of unemployment insurance systems, affects whether new firms are founded out of opportunity or necessity and their growth potential. To this end, we construct a comprehensive dataset on German firm founders that links administrative social insurance information with business survey data. Exploiting reform and age-related exogenous variation in the potential duration of unemployment benefits, we find that longer potential benefit duration implies longer actual unemployment and, as a consequence, more necessity entrepreneurship and worse startup outcomes in terms of sales and employment growth. We explain this overall effect of potential benefit duration through a mix of compositional and individual-level duration effects. Our findings underline that new firms started out of unemployment are a highly heterogeneous group and suggest that the (optimal) design of unemployment insurance systems has important externalities on whether innovation- and growth-oriented firms are started out of unemployment. |
| Keywords: | entrepreneurship, unemployment insurance, self-employment, opportunity entrepreneurship, fiscal externality |
| JEL: | L26 M13 L11 L25 D22 J21 J23 J44 J62 J64 J65 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:301863 |
| By: | Giacomo Damioli (BETA, Université de Strasbourg, Strasbourg, France); Vincent Van Roy (Faculty of Business and Economics, KU Leuven, Belgium - Idea Consult, Belgium); Daniel Vertesy (International Telecommunication Union, Geneva, Switzerland – UNU-MERIT, Maastricht, The Netherlands); Marco Vivarelli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany) |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be “enabling technologies”, a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| Keywords: | Artificial Intelligence, Technological Paradigm, Structural Change, Patents |
| JEL: | O31 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0038 |
| By: | Wafaa El Gouz (Mohamed V University, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | The purpose of this comparative research is to analyze the complex link that exists between the education of company owners and the financial success of family-owned companies in Morocco. A sizeable percentage of the corporate landscape is comprised of family businesses, which provide a major contribution to the economic growth of the nation. For the purpose of determining the influence that entrepreneurial training has on financial results, the study takes a comparative approach, evaluating both family firms and enterprises that are not family businesses. This inquiry digs into the particulars of family companies, considering the unique difficulties and opportunities that family firms face in the Moroccan economic climate. The purpose of this research is to give significant insights into the processes that determine the economic success of family businesses by taking a closer look at the association between entrepreneurial training and financial performance. In terms of methodology, the study takes a holistic approach, using both quantitative and qualitative data to capture the many facets that are associated with entrepreneurial training and financial achievement. The purpose of this study is to investigate the complex relationships that exist between the training programs that are offered to family entrepreneurs and the subsequent financial health of their businesses. This will be accomplished with questionnaires, interviews, and financial analyses. Moreover, the results of this study not only provide a contribution to the academic knowledge of family entrepreneurship in Morocco, but also offer practical consequences for enterprises, governments, and educational institutions. It is possible to design strategies for promoting the sustainable development of family businesses by gaining an understanding of the association between training and financial success. This will contribute to the overall economic growth and stability of the Moroccan business environment. |
| Keywords: | family businesses, professional training, financial success, Morocco |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0360 |
| By: | Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | This research investigates the complex dynamics of innovation postures inside family businesses, revealing a typology that combines a predilection for risk with a strong adherence to tradition. The diverse routes illuminated by the Seasoner, Re-enactor, Digger, and Adventurer attitudes inside family enterprises have a distinctive impact on the innovation atmosphere. Through an examination of the relationship between these positions and the aspects of the family system, namely aim variety and coherence, we can decipher the paradox of innovation willingness in family businesses. Moreover, succession presents a critical occasion for reorientation, providing insight into how intergenerational family enterprises manage the intricate equilibrium between risk-taking and tradition. |
| Keywords: | innovation dynamics, tradition, family-owned firms, intergenerational family enterprises |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0395 |
| By: | Bettiol, Marco; Capestro, Mauro; Di Maria, Eleonora; Ganau, Roberto |
| Abstract: | Does Industry 4.0 technology adoption push firms’ labor productivity? We contribute to the literature debate—mainly focused on robotics and large firms—by analyzing adopters’ labor productivity returns when micro, small, and medium enterprises (MSME) are concerned. We employ original survey data on Italian MSMEs’ adoption investments related to a multiplicity of technologies and rely on a difference-in-differences estimation strategy. Results highlight that Industry 4.0 technology adoption leads to a 7% increase in labor productivity. However, this effect decreases over time and is highly heterogeneous with respect to the type, the number, and the variety of technologies adopted. We also identify potential channels explaining the labor productivity returns of technology adoption: cost-related efficiency, new knowledge creation, and greater integration/collaboration both within the firm and with suppliers. |
| Keywords: | Industry 4.0; Italy; labor productivity; MSME; technology adoption |
| JEL: | R14 J01 J1 |
| Date: | 2024–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124545 |
| By: | Minh-Phuong Le (UP1 - Université Paris 1 Panthéon-Sorbonne, IRD - Institut de Recherche pour le Développement, DEVSOC - UMR Développement et Sociétés - UP1 - Université Paris 1 Panthéon-Sorbonne - IRD - Institut de Recherche pour le Développement); Lisa Chauvet (UP1 - Université Paris 1 Panthéon-Sorbonne, CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IRD - Institut de Recherche pour le Développement); Mohamed Ali Marouani (UP1 - Université Paris 1 Panthéon-Sorbonne, IRD - Institut de Recherche pour le Développement, DEVSOC - UMR Développement et Sociétés - UP1 - Université Paris 1 Panthéon-Sorbonne - IRD - Institut de Recherche pour le Développement) |
| Abstract: | In this paper we estimate the effects of the pandemic on Tunisian small and medium-sized enterprises (SMEs) and examine their adaptation processes during the first lockdown. Three simultaneous shocks are examined employing a Difference-in-Differences (DID) framework applied to the national firm census: the labor input shock, the demand shock and the intermediate input shock. We show that SME performance in the first year of the crisis was heavily affected by a combination of labor input, demand and intermediate input shocks, but only the effects of the demand and intermediate input shocks persisted in the following year. Using our own firm survey, we examine three kinds of adaptation strategies: workplace and process adaptation, and trade credit. We find that firms in non-essential sectors were less able to adapt during the first lockdown, suggesting that firm adaptation seems to be more driven by capability than by necessity. |
| Keywords: | Crisis Covid-19 Lockdown SME Adaptation |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-04642454 |
| By: | Princi Tanwar (Turiba University, Riga, Latvia) |
| Abstract: | Effective communication plays a pivotal role in the growth and development of business activities. In today’s globalized environment, communication is the bridge to collaboration, understanding and innovation. Clear communication aligns every stakeholder on goals, strategies, and expectations, minimizing confusion and boosting efficiency. It builds trust with stakeholders like customers, suppliers, or investors. Trust, in turn, is foundational for long-term partnerships and collaborations, contributing significantly to the sustainability and growth of a business. Open communication is vital for fostering a positive and inclusive organizational culture. It empowers employees to express their ideas, concerns, and feedback. Businesses that encourage open communication are better positioned to adapt to changes, identify opportunities, and stay ahead in competitive markets. In the realm of marketing and customer relations, effective communication is paramount. A well-crafted communication strategy sets businesses apart, attracts customers, and builds brand loyalty. Fast, efficient communication tools in today's digital age fuel growth by enabling rapid decision-making, problem-solving, and seamless collaboration across geographically dispersed teams. In summary, effective communication is not just a supportive function but a strategic imperative for business growth. It underpins organizational success by fostering understanding, trust, innovation, and efficiency. Businesses that prioritize robust communication strategies are better equipped to navigate the complexities of the modern business landscape, ultimately positioning themselves for sustained growth. |
| Keywords: | Effective communication, organizational culture, employee engagement, stakeholders, relationships, innovation, leadership, business success |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0391 |
| By: | Paul H\"unermund; Ann Hipp |
| Abstract: | This study examines the inter-organizational and spatial mobility patterns of East German inventors following the fall of the Berlin Wall. Existing research often overlooks the role of informal institutions in the mobility decisions of inventors, particularly regarding access to and transfer of knowledge. To address this gap, we investigate the unique circumstances surrounding the dissolution of the German Democratic Republic, which caused a significant shock to establishment closures and prompted many inventors to change their jobs and locations. Our sample comprises over 25, 000 East German inventors, whose patenting careers in reunified Germany post-1990 are traced using a novel disambiguation and matching procedure. Our findings reveal that East German inventors in technological fields where access to Western knowledge was facilitated by industrial espionage were more likely to pursue inter-organizational mobility and continue their inventive activities in reunified Germany. Additionally, inventors from communities with strong political support for the ruling socialist party encountered difficulties in sourcing knowledge through weak ties, resulting in a lower likelihood of continuing to patent. However, those who overcame these obstacles and continued to produce inventions were more likely to relocate to West Germany, leaving their original social contexts behind. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.01861 |
| By: | Zhanli Li |
| Abstract: | This paper explores the relationship between ESG rating disagreement and total factor productivity (TFP) based on data from Chinese domestic ESG rating agencies and financial data of A-share listed companies in China from 2015 to 2022. On one hand, the empirical results show that ESG rating disagreement reduces corporate TFP, a conclusion that is validated through multiple robustness tests. The mechanism analysis reveals an interaction effect between green innovation and ESG rating disagreement. Specifically, in firms without ESG rating disagreement, green innovation promotes the improvement of TFP; however, in firms with disagreement, although ESG rating disagreement may drive green innovation, this does not lead to an increase in TFP. Furthermore, ESG rating disagreement lower corporate TFP by increasing financing constraints. The heterogeneity analysis indicates that this effect is more pronounced in non-state-owned, asset-intensive, and low-pollution enterprises. On the other hand, XGBoost regression demonstrates that ESG rating disagreement play a significant role in predicting TFP, with SHAP values showing that the main effects are more evident in firms with larger ESG rating disagreement. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.13895 |
| By: | Hernán Bejarano (Division of Economics, CIDE); Pedro Hancevic (Division of Economics, CIDE); Héctor Núñez (Division of Economics, CIDE) |
| Abstract: | In this paper, we analyze the impact of the COVID-19 pandemic on the sales and expenditures of small and medium-sized businesses in Mexico. Using a novel survey that captures the economic conditions and expectations before and during the pandemic, we also incorporate electricity billing data as a proxy for economic activity and as a revealed measure of firms' flexibility in reducing costs. We examine these variables in relation to firms' characteristics, adaptation strategies, and expectations during the pandemic. Our analysis employs non-parametric tests and a set of econometric models, revealing a significant decline in sales alongside limited flexibility in expenditures. The effects vary depending on the strategies firms adopt to cope with the crisis and their negative expectations regarding a quick return to normality. Consequently, most SMEs face a precarious economic situation, highlighting the need for new policies and strategies to enhance their survival prospects in emerging economies such as Mexico. |
| Keywords: | COVID-19, small and medium-sized enterprises (SME), activity restrictions, electricity consumption, emerging countries |
| JEL: | D22 L20 Q41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte639 |
| By: | Augustin Junior Mbam (Université de Lille); Amira Berriche (Université de Lille); Claude Bekolo (Université de Douala) |
| Abstract: | The technological innovation has become essential in the banking industry and has redefined the relationship between banks and their customers. The aim of this communication is to present a synthesis on the major theories and current trends of this innovation. Indeed, the literature shows tensions and shortcomings regarding the theoretical and conceptual perspectives of this innovation. In addition to these perspectives, we propose a new approach called Worm hole to allow banks to go beyond existing innovations by integrating emerging technologies such as the metaverse, AI, crypto-assets, and blockchain. This new approach offers banks the possibility to push the boundaries of banking innovation to reach new horizons of growth and untapped opportunities in an ever-evolving industry. |
| Abstract: | L'innovation technologique est devenue incontournable dans l'industrie bancaire et a redéfini la relation entre la banque et sa clientèle. L'objectif de cette communication est de présenter une synthèse sur les grandes théories et les tendances actuelles de cette innovation. La littérature présente en effet des tensions et insuffisances concernant les perspectives théoriques et conceptuelles de cette innovation. En complément à ces perspectives, nous proposons une nouvelle approche appelée Trou de ver pour permettre aux banques d'aller au-delà des innovations existantes en intégrant les technologies émergentes telles que les métavers, l'IA, les Cryptoactifs et la blockchain. Cette nouvelle approche offre la possibilité aux banques de repousser les limites de l'innovation bancaire pour atteindre de nouveaux horizons de croissance et d'opportunités encore inexploitées dans une industrie en perpétuelle évolution. |
| Keywords: | Technological innovation, Banking sector, Strategic ocean, Black hole, Worm hole, Innovation technologique, Secteur bancaire, Océan stratégique, Trou noir, Trou de ver |
| Date: | 2024–01–18 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04668551 |
| By: | Gagliardi, Nicola; Grinza, Elena; Rycx, François |
| Abstract: | In this paper, we investigate the impact of rising temperatures on firm productivity using longitudinal firm-level balance-sheet data from private sector firms in 14 European countries, combined with detailed weather data, including temperature. We begin by estimating firms' total factor productivity (TFP) using control-function techniques. We then apply multiple-way fixed-effects regressions to assess how higher temperature anomalies affect firm productivity - measured via TFP, labor productivity, and capital productivity. Our findings reveal that global warming significantly and negatively impacts firms' TFP, with the most adverse effects occurring at higher anomaly levels. Labor productivity declines markedly as temperatures rise, while capital productivity remains unaffected - indicating that TFP is primarily affected through the labor input channel. Our moderating analyses show that firms involved in outdoor activities, such as agriculture and construction, are more adversely impacted by increased warming. Manufacturing, capital-intensive, and blue-collar-intensive firms, compatible with assembly-line production settings, also experience significant productivity declines. Geographically, the negative impact is most pronounced in temperate and mediterranean climate areas, calling for widespread adaptation solutions to climate change across Europe. |
| Keywords: | Climate change, Global warming, Firm productivity, Total factor productivity (TFP), Semiparametric methods to estimate production functions, Longitudinal firm-level data |
| JEL: | D24 J24 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1485 |
| By: | Görg, Holger; Jäkel, Ina Charlotte |
| Abstract: | In this paper, we investigate whether gender norms and institutions act as a constraint to the performance of female businesses. We exploit novel and unique micro data on start-ups in Denmark, which we combine with information on individual-level characteristics of the entrepreneur as main decision maker of the firm. We overcome the challenge of disentangling norms and institutional biases against women from other constraints and hurdles that female businesses might face by exploiting detailed trade data. In this trade context, we study the relative performance of firms across markets with varying institutions, while controlling for other factors that affect female businesses uniformly across all markets. We provide evidence that gender inequality and institutional biases against women in trade partner countries play an important role in explaining gender differences in export and import behaviour. We also perform an event study of a concrete policy change in a destination market - the introduction of quotas for the share of females on the boards of directors in Norway - and how it has affected the gender gap in trade participation. |
| Keywords: | Gender Inequality, Firm Internationalization, Start-up Performance |
| JEL: | F14 J16 M13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:302556 |
| By: | Wafaa El Gouz (Mohamed V University, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | The purpose of this study is to evaluate the adoption of Financial Technologies training by family businesses in Morocco and to assess the consequences of this acceptance for the development of the local economy. Traditional business models are being reformulated as a result of technological advancements, which are causing the global financial environment to undergo fast transformation. In this context, family businesses, which make up a significant portion of Morocco's economic fabric, are investigated regarding the degree to which they have committed themselves to the teaching of financial technology. Regulatory frameworks, resource accessibility, and understanding of the possible implications of FinTech tools are some of the important elements that are investigated in this research. The study also provides an analysis of the factors that influence the adoption of FinTech training among family businesses. The objective is to provide insights into the obstacles and possibilities connected with incorporating FinTech into the operations of family companies in Morocco by first gaining an awareness of these issues. In addition to this, the study investigates the practical consequences that the implementation of FinTech has on the operational efficiency, risk management, and decision-making processes of family businesses. Our goal is to shed light on the role that FinTech plays in enhancing the competitiveness and growth prospects of family businesses, thereby contributing to the overall economic development at the local level in Morocco. This will be accomplished through an analysis of case studies and empirical data. It is expected that the outcomes of this study will provide significant insights for policymakers, business executives, and academics interested in the nexus between family businesses, financial technology education, and economic development. |
| Keywords: | family businesses, financial technology, innovation, economic growth |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0377 |