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on Small Business Management |
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Issue of 2024‒10‒28
seventeen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Livia Boerner (Paderborn University) |
| Abstract: | User entrepreneurship is the phenomenon of entrepreneurs developing and commercializing a business idea to fulfil their own subjective need. The paper explores this phenomenon with a focus on understanding its downsides linked to egocentric bias and overconfidence. For this study, a research team coded and analyzed N = 553 pitches of early-stage startups in the pitch competition Die Höhle der Löwen. Controlling for a range of covariates, results suggests that end-user entrepreneurs systematically overestimate the valuation of their business idea compared to others, indicating egocentrically biased and overconfident market entry decisions. Correspondingly, they are less likely to secure funding from investors and obtain significantly lower business valuations overall. These findings complement the literature on pitch competitions, early access to funding and bias in entrepreneurial decision-making. |
| Keywords: | User entrepreneurship; Opportunity recognition; Overconfidence; Egocentric bias; Televised startup pitches |
| JEL: | D81 D84 D90 L26 O30 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pdn:dispap:121 |
| By: | Katrin M Smolka (WBS - Warwick Business School - University of Warwick [Coventry]); Thijs H J Geradts; Peter W van der Zwan (Universiteit Leiden = Leiden University); Andreas Rauch (Audencia Business School) |
| Abstract: | The proliferation of entrepreneurship education in business schools suggests that it is commonly believed to foster venture creation. At the same time, research on entrepreneurship education is growing. However, further studies are needed to determine the effectiveness of compulsory entrepreneurship education (CEE) by providing evidence on the specific type of entrepreneurial behavior it elicits and when these effects occur. To address this gap, this study evaluates different behavioral outcomes of CEE over time while building on social cognitive career theory to account for mediating effects of entrepreneurial intentions and entrepreneurial self-efficacy. We conduct a field quasi-experiment by following university business students (1, 387 observations for 450 individuals) over 24 months post-treatment. Our findings reveal that CEE effectively increases entrepreneurial behavior in the short term but does not extend much beyond that. A follow-up study (N = 395) adds confidence to the generalizability of the results. We contribute to research on entrepreneurship education and policy. |
| Keywords: | Compulsory) entrepreneurship education entrepreneurship policy entrepreneurial behavior entrepreneurial intentions entrepreneurial self-efficacy, Compulsory) entrepreneurship education, entrepreneurship policy, entrepreneurial behavior, entrepreneurial intentions, entrepreneurial self-efficacy |
| Date: | 2023–08–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04701309 |
| By: | Monica Plechero (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice); Erica Santini (Dept. of Economics and Management, Università di Trento); Giancarlo Coro' (Dept. of Economics, Università Ca' Foscari Venice) |
| Abstract: | How do small and medium-sized enterprises (SMEs) set up their technological portfolio, orient their future technological choices, and contribute to shaping the evolution of a specific economic structure? Technology adoption in SMEs has been recognized as a learning path but how this process is characterized in the digital era remains rather unclear. The paper aims to address this research gap by analysing how a population of manufacturing SMEs builds and follows its technological trajectories. By taking advantage of data on a large sample of manufacturing firms, we employ network analysis to map the evolution in the adoption of digital technologies. Findings show a common path of adoption and learning within the population of manufacturing SMEs. However, while some firms are on the edge, riding the learning curve and providing key meaning to the contextual setting of operations and strategies commonly taken under the technological evolution, others lag in their learning process, risking digital devices. |
| Keywords: | SMEs, technological trajectory, manufacturing, digital era |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:vnm:wpdman:208 |
| By: | Marcus Dejardin (University of Namur); Luca Farè (University of Bergamo); Éric Toulemonde (University of Namur) |
| Abstract: | This study examines the impact of a bankruptcy system reform process implemented in Slovenia on access to credit conditions and investments in innovation by small businesses. The reform process increased the recovery rate and reduced the time to resolve insolvency procedures, thus improving the efficiency of the bankruptcy system. Leveraging a dataset of 1, 245 Slovenian micro-, small-, and medium-sized enterprises, our results document an increase in innovation investments by small businesses after the reform process due to more accommodating access to credit conditions. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nam:defipp:2405 |
| By: | Francesca Checchinato (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice); Vladi Finotto (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice); Christine Mauracher (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice); Monica Plechero (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice) |
| Abstract: | Many voices in the policy debate concur on the need to accelerate the green and digital transitions of businesses to build sustainable and competitive regional economies. Academic research on the topic is still in its early stages and the twin transition remains ill-defined. Using novel data on the food sector in an Italian region, the paper provides insights into the barriers that a twin transition perspective may encounter at both the firm and systemic levels to become a means to support new sustainable development trajectories. The analysis highlights that a weak twin transition evolution is due to the peculiarities of how green and digital perspectives are normally addressed and operationalized within Small and Medium-sized Enterprises (SMEs) and along their network of local support. We maintain that triggering an effective and more impactful twin transition regional path requires aligning more strategically the green and digital initiatives within the companies. Moreover, we maintain that surrounding systems of stakeholders and policymakers need to develop supporting strategies and initiatives informed by a thorough understanding of local SMEs characteristics, sectoral specificities, and peculiar problems of misalignment. |
| Keywords: | twin transition; misalignment; Small and Medium-sized Enterprises, food industry; regional development |
| JEL: | R11 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:vnm:wpdman:213 |
| By: | Mtshweni, Harry; Costa, King (Global Centre for Academic Research) |
| Abstract: | The downstream petroleum sector plays a critical role in the economic development of emerging economies by providing energy, employment, and opportunities for small and medium-sized enterprises (SMEs). However, various external factors, including regulatory frameworks, market volatility, and technological advancements, significantly impact the operational efficiency of SMEs in this sector. This paper explores how these external challenges affect SMEs, particularly those owned by Historically Disadvantaged Individuals (HDIs), in the petroleum industries of emerging markets. Focusing on the South African context, the paper examines global and African perspectives on operational efficiency, with case studies from Ghana, Nigeria, and Kenya. It highlights the importance of infrastructure development, local capacity building, and regulatory reforms in enhancing operational efficiency. Additionally, technological advancements such as automation and data analytics are explored as potential tools for improving SMEs’ performance. The paper concludes by offering practical recommendations for overcoming these challenges, including streamlining regulatory processes, promoting technological adoption, and fostering inclusive business models. By addressing these external factors, SMEs in the downstream petroleum sector can improve their competitiveness, contribute to economic transformation, and meet the growing energy demands of emerging economies. |
| Date: | 2024–09–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:rp3k4 |
| By: | Bernardo Caldarola; Luca Fontanelli |
| Abstract: | Recent empirical evidence finds positive associations between digitalisation and industry concentration. However, ICT may not be all alike. We investigate the effect of the purchase of cloud services on the long run size growth rate of French firms. Our findings suggest that cloud services positively impact firm growth rates, with smaller firms experiencing more significant benefits compared to larger firms. This evidence suggests that the diffusion of cloud technologies may help mitigate concentration in the era of the digital transition by favouring the digitalisation and growth of smaller firms, especially when the cloud services provided are more advanced. |
| Keywords: | cloud, ICT, concentration, firm growth rate, firm performance |
| Date: | 2024–10–02 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/25 |
| By: | Vincenzo Lanzetta; Cristina Ponsiglione |
| Abstract: | The European Union Regional Innovation Scoreboard (EURIS) is currently and broadly used for the definition of regional innovation policies by European policymakers; it is a regional innovation measuring tool for the analysis of each specific innovation indicator, from which it is possible to analyze the overtime evolution of each regional innovation indicator; according to the importance of the European Union Regional Innovation Scoreboard for innovation policy purposes, we state that European regional policymakers need integrative and synergistic methodological tools, with respect to the EURIS one, for innovation policy purposes. Thus, we highlight the need to integrate the current methodology of the European Regional Innovation Scoreboard with a Factorial K-means (FKM) tool for clustering purposes, and with a neural network (NN) tool for performing what-if policy analyses. We claim that our proposed FKM-NN tool could be used, by regional innovation policymakers, as a very effective synergistic instrument of the European Union Regional Innovation Scoreboard. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.13316 |
| By: | Edurne Magro Montero (Orkestra - Basque Institute of Competitiveness); James R. Wilson (Orkestra - Basque Institute of Competitiveness); Mari Jose Aranguren (Orkestra - Basque Institute of Competitiveness) |
| Abstract: | The concept of smart specialisation strategies (S3) has dominated the regional policy panorama in the last decade, which implied a shift from neutral and horizontal regional innovation policies towards priority setting in research and innovation. Despite the focus of S3 on research and innovation, we can find some similarities between these strategies and the literature around new industrial policy. The socioeconomic crisis caused by the COVID-19 pandemic highlights the need to adopt a broader view of innovation and industrial policy in which the intertwined green and digital transitions should play a core role. However, this is not an easy task as it implies changes in policy rationales, new instruments, a more entrepreneurial role for government, and a broader, multi-domain and longer-term consideration of intertwined industrial and innovation strategies, among other issues. The aim of this paper is to reflect on the nexus of industrial policies and S3, and the potential that their combination offers for sustainable transitions in the context of experiences in the Basque Country. |
| Date: | 2022–11–16 |
| URL: | https://d.repec.org/n?u=RePEc:ivc:wpaper:2022r02 |
| By: | OECD |
| Abstract: | The global productivity slowdown, characterised by a widespread deceleration in aggregate productivity growth rates, is a prevailing concern for policy makers and academics. In this context, this report summarises evidence on productivity growth and business dynamics, highlighting long-term trends and their drivers, as well as insights specific to the COVID-19 period, with relevant implications for future productivity and innovation. It underscores the role of productivity for employment and wages, and discusses challenges related to the digitalisation of the economy and the green transition. Additionally, it considers how the resurgence of industrial policies necessitates additional analysis to measure and coordinate government action. |
| Keywords: | Artificial intelligence, Business dynamism, COVID-19, Diffusion, Employment, Industrial policy, Innovation, Labour share, Productivity, Technological change |
| JEL: | J30 L10 O25 O30 O33 L52 |
| Date: | 2024–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/7-en |
| By: | Michele Andrea Tagliavini (Dept. of Management, Venice School of Management, Università Ca' Foscari Venice) |
| Abstract: | This study explores the topic of entrepreneurial ecosystems for coastal regeneration by combining an analysis of relevant literature with the experiences lived within the European project Bauhaus of the Seas Sails, in particular relating to the development of a key framework called "Territorial Identity Card”, a tool designed to capture the essence of each coastal territory. By identifying ten key parameters common to the seven cities involved, this tool serves to guide the development of future strategies. Although the overall goal of the research is to define a sound strategy to promote sustainable entrepreneurial ecosystems in coastal regions, this paper focuses primarily on the preliminary phase of the research, laying the groundwork for subsequent in-depth analysis. This working paper serves as a compass, charting the course for future research efforts to translate key insights into actionable strategies. |
| Keywords: | Urban and territorial regeneration, entrepreneurial ecosystems, innovation, sustainability, inclusion, coastal areas, replication |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:vnm:wpdman:210 |
| By: | Alienor Cameron; Maria Garrone |
| Abstract: | To reach its 2050 objective of carbon neutrality, the European Union (EU) must continue to step up its climate efforts, while ensuring the competitiveness of its industries is not harmed. The EU Emission Trading Scheme (ETS) is at the core of the bloc's industrial decarbonization efforts. This paper explores this topic by digging into whether there is a causal relationship between industrial firms' emission intensity and their economic and financial performance. We construct a dataset covering around 1, 200 industrial firms covered by the EU ETS' third phase and estimate a novel indicator of volume-based emission intensities for these firms. Applying an IV approach to a within-firm panel model, we find that firms' emission intensity is negatively related to their corporate performance, and that this does not depend on the competitive environment they operate in. |
| Keywords: | EU ETS, heavy industry, emission intensity, corporate performance. |
| JEL: | D22 H23 L51 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2024-26 |
| By: | Machkour Badr (Faculté des sciences juridiques, économiques et sociales d’Agadir); Abriane Ahmed (Faculté des sciences juridiques, économiques et sociales d’Agadir) |
| Abstract: | Throughout the ages, industry has undergone profound transformations, evolving from mechanization (Industry 1.0) to electrification (Industry 2.0), and subsequently to digitalization (Industry 3.0). Today, we stand at the dawn of Industry 4.0, an era that integrates advanced digital technologies such as artificial intelligence, the Internet of Things, and cyber-physical systems. This article examines the essential features of this new era, employing a methodological approach grounded in a comprehensive literature review. Marked by intelligent production, accelerated decision-making, and optimal resource utilization, Industry 4.0 places particular emphasis on sustainability and social responsibility. The associated challenges include adapting organizational structures and managing cybersecurity. The article also explores entrepreneurial dynamics in response to these advancements, thereby redefining business strategies and structures with a focus on technological innovation, enhanced product and service customization, and the development of interdisciplinary skills among employees. It is further emphasized that ecological sustainability plays a central role in both contemporary and future entrepreneurial contexts, with optimized resource management and significant waste reduction. Drawing on a rigorous literature review, we have identified several key dimensions critical to the success of entrepreneurship in the era of Industry 4.0, including organizational structure, human resources, innovation processes, personalized production, customer relationship management, technological advancements, and sustainability. Within this framework, we have formulated hypotheses and developed a conceptual model demonstrating that, to maintain their competitiveness, companies must adopt strategies encompassing these six dimensions. |
| Abstract: | À travers les âges, l'industrie a connu des transformations profondes, passant de la mécanisation (Industrie 1.0) à l'électrification (Industrie 2.0), puis à la numérisation (Industrie 3.0). Aujourd'hui, nous nous trouvons à l'aube de l'Industrie 4.0, une ère caractérisée par l'intégration de technologies numériques avancées telles que l'intelligence artificielle, l'Internet des objets et les systèmes cyber-physiques. Cet article se propose d'examiner les caractéristiques essentielles de cette nouvelle ère, en adoptant une approche méthodologique fondée sur une revue de la littérature. Marquée par une production intelligente, une prise de décision accélérée, et une utilisation optimale des ressources, l'Industrie 4.0 met un accent particulier sur la durabilité et la responsabilité sociétale. Les défis associés incluent l'adaptation des structures organisationnelles et la gestion de la cybersécurité. L'article explore également les dynamiques de l'entrepreneuriat en réponse à ces avancées, redéfinissant ainsi les stratégies et structures des entreprises, avec un accent sur l'innovation technologique, la personnalisation accrue des produits et services, et le développement de compétences interdisciplinaires chez les collaborateurs. Il est également souligné que la durabilité écologique joue un rôle central dans le contexte entrepreneurial contemporain et futur, avec une gestion optimisée des ressources et une réduction significative des déchets. S'appuyant sur une revue rigoureuse de la littérature, nous avons identifié diverses dimensions clés déterminant la réussite de l'entrepreneuriat à l'ère de l'Industrie 4.0, telles que la structure organisationnelle, les ressources humaines, les processus d'innovation et de production personnalisée, la gestion de la relation client, les avancées technologiques, ainsi que la durabilité. Dans ce cadre, nous avons formulé des hypothèses et conçu un modèle conceptuel démontrant que, pour préserver leur compétitivité, les entreprises doivent adopter des stratégies englobant ces six dimensions. |
| Keywords: | Industry 4.0, Entrepreneurship 4.0, Internet of Things, Artificial Intelligence, Industrie 4.0, Entrepreneuriat 4.0, Internet des Objets, Intelligence Artificielle |
| Date: | 2024–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04704435 |
| By: | Koki Kanazawa (Digital Research Assistant, RONIN International); Kyosuke Kurita (School of Economics, Kwansei Gakuin University) |
| Abstract: | Using unique data on the amount of money held by the Indonesian three largest banks in each district and firm-level data of Indonesian micro enterprises in 2013 and 2014, we examine effects of four types of partnership with a private company, NPO/NGO, bank, and the government on access to finance of micro enterprises. Previous studies consider social capital as unofficial connection with other organizations. However, we newly examine an effect of official contracts as partnership and contribute to the literature by investigating many types of partnerships which have never considered and considering effect of supplier's side by utilizing data on bank's money in our estimation. It is found that firms with partnership with NPO/NGO are more likely to obtain loaned money as well as that with a bank. However, indicators of firms' performance and ability, such as ROA, entrepreneurs' education, and firms' size are statistically insignificant for loan approval. In addition, the amount of banks' money does not have statistically significant effect on loan approval. Therefore, it becomes explicit that Indonesian banks cannot effectively allocate loans to private sector because of corruption between specific private companies and public institutions and a simple policy like increasing money holdings of banks has no effect on distributing corporate loans to enterprises. |
| Keywords: | Partnership, SMEs, Bank loan, Indonesia, Microeconometrics |
| JEL: | G21 L14 O16 Z13 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:kgu:wpaper:279 |
| By: | Gaygysyz Ashyrov; Nicolas Gavoille; Kjetil Haukås; Rasmus Bøgh Holmen; Jaan Masso |
| Abstract: | While attracting foreign direct investment (FDI) has been at the core of the economic policy of many countries since the 1980s, existing evidence of a causal foreign ownership effect on firm-level productivity is mixed. This paper revisits the productivity effect of foreign takeovers on domestic firms. Leveraging administrative firm-level data from Estonia, Latvia and Norway, we shed light on the following key questions: 1) Does the magnitude of the effect of foreign ownership depend on the host country's level of development?; 2) Does spatial, cultural, and economic proximity between the sending and receiving countries play a role in the foreign ownership effect?; and 3) To what extent are these effects heterogeneous across industries? By implementing a propensity score matching procedure, combined with a difference-in-differences approach, our results indicate that the productivity effect of foreign ownership greatly varies across host countries, sectors and the region of origin for the FDI. We document an overall positive but heterogeneous effect of foreign acquisitions on domestic firms, with a stronger productivity boost in Estonia and Latvia than in Norway. The effects in each country are concentrated on FDI from particular regions and specific economic sectors. These results suggest that the positive effect of FDI on receiving companies is conditional on both the characteristics of the investor and the acquisition target. |
| Keywords: | Productivity, foreign direct investment, foreign ownership, Northern Europe |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:mtk:febawb:148 |
| By: | Amaresh K Tiwari |
| Abstract: | Using the universe of firms in Estonia, we study the implications of imports-led and FDI- facilitated automation for productivity and factor shares of tasks and value-added. First, in contrast to the findings for developed economies, we find that the aggregate labour share of value-added for automation adopting firms is higher than that for non-adopters, and has grown, among others, through the reallocation of economic activities towards adopting firms. Second, the aggregate total factor productivity of the adopters concurrently grew faster than that of the non-adopters. Third, from the micro-level study, we find that the estimated labour share of tasks has declined over time among the adopting firms and is lowest in firms that automate frequently, where the frequency of automation provides rich information on firm automation characteristics. The study emphasizes international spillovers and the creation of productive new jobs by multinational adopters among the reasons for the increase in the labour share of value-added for adopters, even as their labour share of tasks declined. Fourth, the productivity impact of automation is heterogeneous: (a) firms that automate regularly, (b) multinational adopters, and (c) firms that realize complementarities between automation and innovative management practices are among the most productive adopters. The latter establishes that the innovative management practices instituted by adopters are those that help discover and facilitate complementarities be- tween automation and human labour. |
| Keywords: | Imports-Led Automation, Foreign Direct Investment (FDI), Productivity, Labour Share, Factor Task Content of Production, Complementarities |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:mtk:febawb:144 |
| By: | Mohamed Yasser Bounnite (SUP'RH Business School & AI); Kinmagbaho Wil Hector; Hector Bounnite; Mohamed Yasser |
| Abstract: | Tax optimization plays a fundamental role in the performance of micro, small, and mediumsized enterprises (MSMEs) in Benin. This article examines how the adoption of effective tax strategies can enhance the profitability and competitiveness of MSMEs. Through an empirical study based on a representative sample of 100 MSMEs, we analyzed their tax practices and their impact on various performance indicators. The results highlight the importance of raising awareness among MSMEs about tax optimization and simplifying tax regulations to encourage broader adoption of effective tax practices. The study also sheds light on the challenges MSMEs face in adopting these strategies, particularly the complexity of tax regulations and the lack of specialized resources. The article offers recommendations to improve the integration of tax optimization into the strategic management of Beninese MSMEs, with a focus on training and supporting business leaders. |
| Abstract: | L'optimisation fiscale joue un rôle fondamental dans la performance des micros, petites et moyennes entreprises (MPME) béninoises. Cet article examine comment l'adoption de stratégies fiscales efficaces peut améliorer la rentabilité et la compétitivité des MPME. À travers une étude empirique basée sur un échantillon représentatif de 100 MPME, nous avons analysé leurs pratiques fiscales et leur influence sur divers indicateurs de performance. Les résultats soulignent l'importance de sensibiliser les MPME à l'optimisation fiscale et de simplifier les régulations fiscales pour encourager une adoption plus large de pratiques fiscales efficaces. L'étude met également en lumière les obstacles rencontrés par les MPME dans l'adoption de ces stratégies, notamment la complexité des régulations fiscales et le manque de ressources spécialisées. L'article propose des recommandations pour améliorer l'intégration de l'optimisation fiscale dans la gestion stratégique des MPME béninoises, en mettant l'accent sur la formation et l'accompagnement des dirigeants. |
| Keywords: | Optimisation fiscale, MPME béninoises, performance financière, stratégies fiscales, compétitivité., African Scientific Journal, compétitivité Tax optimization, Beninese MSMEs, financial performance, tax strategies, competitiveness |
| Date: | 2024–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04693798 |