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on Small Business Management |
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Issue of 2024‒11‒11
fourteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Anmol Bhandari; Tobey Kass; Thomas J. May; Ellen McGrattan; Evan Schulz |
| Abstract: | This paper provides new insights into the nature of entrepreneurship using a novel panel dataset based on U.S. administrative data from the Internal Revenue Service and the Social Security Administration. These data are used to analyze patterns of income growth and determinants of entrepreneurial choice for a large population of business owners. Earlier studies relying on household survey data have been limited by small samples, short panels, and income top-coding and, as a result, have focused on the typical self-employed individual rather than the typical dollar earned in self-employment. Without these limitations, we find that self-employed individuals have significantly higher average income and steeper, more persistent income growth profiles than paid- employed peers with similar characteristics. Contrary to the survey evidence, we find a much smaller role for non-pecuniary motives in driving entrepreneurial choice and little evidence for inordinately high risk factors or startup costs impeding entry. Linking individual and business filings, we find that business founders have sufficient resources in the initial years of operation to ensure positive individual income despite the fact that most claim a loss on the business. |
| JEL: | E60 H25 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32948 |
| By: | Nwaobi, Godwin |
| Abstract: | As the most populous nation in Africa, Nigeria is uniquely positioned to reap the benefits of the emerging digital economy. And by accelerating access to digital technologies spurs innovation, efficiency and productivity which brings about choice and opportunities for greater growth and inclusion. Therefore, this research project shall provide evidence with respect to some aspects of inter-firm and intra-firm diffusion digital technologies in Nigeria. In other words, the proposed study intends to provide new empirical evidence with respect to the factors determining inter-firm and intra-firm diffusion of digital technologies by Nigeria productive enterprises. Furthermore, this research paper shall ascertain the extent to which patterns of digital adoption are different for domestic and foreign-owned firms. Econometrically, we propose to use a novel firm level (micro) panel data from the Nigerian manufacturing firms for the period between 2020 and 2025 as applicable. |
| Keywords: | Firms, diffusion, intrafirm, interfirm, Nigeria, panel data, probit model, digital technology, adoption, technology, enterprise, artificial intelligence, productivity, micro panel, innovations, digitalization |
| JEL: | C50 C55 C8 D20 D22 L0 L50 L60 L86 L96 O1 O14 O3 O31 O32 O33 O38 |
| Date: | 2024–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122392 |
| By: | Cheikh T. Ndour (Dakar, Senegal); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | This study aims to investigate the effect of fear of failure on entrepreneurship intent. It utilises survey data from the Global Entrepreneurship Monitor (2015) conducted in Senegal. Analysing a sample of 2364 individuals, the probit model was employed, revealing three key findings. Firstly, fear of failure significantly diminishes entrepreneurship intent. Secondly, individuals who are partially employed demonstrate a heightened inclination towards entrepreneurship. Thirdly, fear of failure consistently impacts entrepreneurship intent regardless of gender. A key policy implication of this research is the necessity to address discrimination in policies designed to support individuals with greater entrepreneurial aspirations. |
| Keywords: | Entrepreneurship intent, probit, occupation, gender, Senegal |
| JEL: | L26 J29 J16 C25 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/032 |
| By: | CONFRARIA Hugo (European Commission - JRC); GRASSANO Nicola; MONCADA PATERNO' CASTELLO Pietro (European Commission - JRC); NINDL Elisabeth (European Commission - JRC) |
| Abstract: | Understanding the flow of knowledge between scientific research and policymaking is increasingly important. This study examines the influence of the EU Industrial R&D Investment Scoreboard, which has been active at the science-policy interface since 2004. We analyse citation trends in scientific publications and policy documents to assess the Scoreboard’s usage, impact, and reach. Our findings indicate that the Scoreboard is cited more frequently in policy documents, though academic interest is growing. Policy documents cite the Scoreboard more quickly, reflecting its immediate relevance for policy actors, while scientific publications take longer to cite it and utilise its data. Papers citing the Scoreboard tend to have a higher citation impact than average, underscoring its significance in a broad set of research fields. In our citation content analysis, we find that "insight" citations are more common than "data" citations. However, papers combining patent data and Scoreboard tend to receive more citations, highlighting the value of integrating R&D data with other relevant variables to better understand the innovation process. Additionally, we show that the Scoreboard has influenced EU policy discourse to address the need for structural changes towards high R&D intensity sectors, and showing EU’s strengths in green innovation. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:wpaper:202403 |
| By: | Aghion, Philippe; Bergeaud, Antonin; Lequien, Matthieu; Melitz, Marc J.; Zuber, Thomas |
| Abstract: | We decompose the “China shock” into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm level, we show that the output shock is detrimental to firms’ sales, employment, and innovation. Moreover, this negative impact is concentrated in low-productivity firms. On the other hand, the impact of the input supply shock is reversed. |
| JEL: | F3 G3 J1 |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123934 |
| By: | Colin Davis; Ken-ichi Hashimoto |
| Abstract: | This paper constructs a two-country model to investigate how tariff policy in- fluences productivity growth through adjustments in industry location patterns. The locations of production and innovation are determined based on trade barriers and imperfect knowledge dissemination. Tariff policy has the effect of attracting firms, reshaping the location of industry, and the productivity of investment in innovation. We show that the relationship between tariff policy and economic growth depends on the industrial share of the country where the policy is implemented. In addition, examining the welfare effects of tariffs, we find that policy trade-offs may generate positive optimal tariff rates. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1259 |
| By: | Koura Abdelghani (USMS - Université Sultan Moulay Slimane); Boudhar Abdeslam; Mohamed Koura Oudgou |
| Abstract: | This study provides a comprehensive contextual analysis of the Moroccan SME financing landscape, with a particular focus on addressing the undercapitalization issue as a significant barrier to their growth and sustainability. The research fills a gap in understanding how the structural limitations and unique characteristics of Moroccan SMEs hinder their ability to access and effectively utilize financial resources, particularly within the traditional banking system. The primary goal of the study is to critically evaluate the predominant reliance on bank credit for SME financing, identifying the challenges posed by risk perceptions, information asymmetries, and the constraints imposed by monetary policy and banks' regulation. The study utilizes a rigorous evaluation of both traditional and alternative financing mechanisms, such as participatory banks, the stock market, and private equity. It also includes an overview of the increasing role of public actors and the forms and intensity of government support provided to Moroccan SMEs. The findings offer actionable policy recommendations aimed at enhancing the effectiveness of the SME financing ecosystem. Our study emphasizes the need for targeted government interventions and institutional reforms while proposing future research directions to build on the insights gained from this analysis. |
| Keywords: | SMEs financing, Bank credit, Alternative financing, Public support, Subsidies and direct aids, Public guarantee schemes |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04681802 |
| By: | Mirko Draca; Max Nathan; Viet Nguyen-Tien; Juliana Oliveira-Cunha; Anna Rosso; Anna Valero |
| Abstract: | Which types of human capital influence the adoption of advanced technologies? We study the skill biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare the 'new wave' of cloud and machine learning / AI technologies during the 2010s - pre-LLM - with the previous wave of personal computer adoption in the 1990s and early 2000s. At the area-level we see the emergence of a distinct STEM-biased adoption effect for the second wave of cloud and machine learning / AI technologies (ML/AI), alongside a general skill-biased effect. A one-standard deviation increase in the baseline share of STEM workers in areas is associated with around 0.3 of a standard deviation higher adoption of cloud and ML/AI. We find similar effects at the firm level where we are able to test for the influence of a wide range of skills. In turn, this STEM-biased adoption pattern has encouraged the concentration of these technologies, leading to more acute differences between high-tech and low-tech areas and firms. In contrast with classical technology diffusion, recent cloud and ML/AI adoption in the UK seems more likely to widen inequalities than reduce them. |
| Keywords: | Technology Diffusion, ICT, Human Capital, STEM, Technological change, AI |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2040 |
| By: | Pablo Ottonello; Wenting Song; Sebastian Sotelo |
| Abstract: | We study the distribution of political speech across U.S. firms. We develop a measure of political engagement based on firms’ communications (earning calls, regulatory filings, and social media) by training a large language model to identify statements that contain political opinions. Using these data, we document five facts about firms’ political engagement: (1) Political engagement is rare among firms; (2) Political engagement is concentrated among large firms; (3) Firms tend to specialize in specific topics and outlets; (4) Large firms tend to engage in a wider set of topics and outlets; (5) The 2020 surge in firms’ political engagement was associated with an increase in the engagement of medium-sized firms and a change in the mix of political topics. |
| Keywords: | Firm dynamics; Market structure and pricing; Recent economic and financial developments |
| JEL: | D22 D63 G41 L11 L20 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocawp:24-37 |
| By: | Chenyue Bai (Dept. of Geography, Kiel University, Germany); Han Chu (Dept. of Geography, Kiel University, Germany); Robert Hassink (Dept. of Geography, Kiel University, Germany) |
| Abstract: | The regional innovation systems (RIS) concept is mature and widely used in economic geography. However, in the face of grand societal challenges and global economic uncertainty, the traditional RIS concept has been questioned and requires further consideration and discussion, to which we want to contribute in this paper. Thus, this study explores the evolution of RIS research by analyzing RIS articles published from 1992 to April 2024 using the Latent Dirichlet Allocation (LDA) model. It identifies three phases of RIS development and summarize five classic and three upcoming topics of RIS. These topics underscore the dynamic nature of RIS research and its continued relevance in addressing contemporary challenges and opportunities in regional development. Finally, this paper points out directions for future research. |
| Keywords: | Regional Innovation Systems, Latent Dirichlet Allocation, Innovation Policy, Regional Transformation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:aoe:wpaper:2404 |
| By: | Jean-Baptiste Marigo (LaRGE Research Center, Université de Strasbourg); Laurent Weill (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | We investigate the effect of folklore on firms’ access to credit. Using firm-level data on a large sample of 38, 000 firms covering 124 countries and 274 cultural societies over the 2005-2022 period, we test the hypothesis that oral traditions linking risk-taking to success or failure influence access to credit. We find that folklore affects access to credit. Oral traditions associated with successful challenges increase access to credit, while those associated with unsuccessful challenges decrease access to credit. We further show that folklore influences access to credit through borrower discouragement and loan approval. |
| Keywords: | culture, folklore, access to credit, borrower discouragement. |
| JEL: | G21 O16 Z10 Z13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lar:wpaper:2024-06 |
| By: | Sharma, Neha (Innowage Limited); Sharma, Durga Prasad; Ranka, Parul; Shinde, Sandeep; Patel, Manisha |
| Abstract: | In today's rapidly evolving knowledge economy, the symbiotic relationship between academia and industry is pivotal for fostering innovation, driving economic growth, and addressing complex global challenges. This paper delves into the strategic collaboration framework of MJRP University's Global Research and Industry Partnership (GRIP), an initiative designed to bridge the gap between academic research and industrial application. Through an extensive need assessment, the paper identifies critical areas where academia and industry intersect, evaluates the benefits and challenges of such collaborations, and proposes a comprehensive plan to enhance synergy between these sectors. The GRIP framework emphasizes multi-disciplinary research, technological advancement, and real-world problem-solving, leveraging MJRP University's robust academic expertise and industry connections. This initiative aims to create a sustainable ecosystem that not only accelerates innovation but also prepares students and researchers for the demands of a dynamic workforce. The findings highlight the importance of strategic alignment, resource optimization, and continuous stakeholder engagement in maximizing the impact of academic-industry partnerships. The paper concludes with recommendations for policymakers, educational institutions, and industry leaders to foster a collaborative culture that supports mutual growth and societal advancement. |
| Date: | 2024–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:yhr3s |
| By: | Giese, Henning; Heinemann-Heile, Vanessa |
| Abstract: | This study analyzes whether and to what extent the provision of public goods and firms' trust in local governments' handling of local business tax revenues are associated with firms' willingness to pay local business tax. Using survey data on German small- and medium-sized firms, we find that the average perceived provision of public goods is not associated with the willingness to pay local business tax. Separating public goods into private- and business-related public goods, we find that the perception of public goods related to the private sphere of firms' decision-makers is associated with an increase in firms' willingness to pay local business tax by about 10%. However, public goods related to the business sphere show no similar association. Contradictory to the perceived provision of public goods, we find surprisingly no association between firms' willingness to pay local business tax and the actual provision of public goods. Trust in local governments' handling of tax revenue increases firms' willingness to pay local business tax significantly, with an effect size of about twice as large as for the perception of provided private-related public goods. These findings indicate that the handling of tax revenues exerts a more pronounced influence on firms' willingness to pay than the actual utilization of these revenues. Documenting tax revenue implications, we further show that the average willingness to pay local business tax within a local government is associated with a significant decrease in tax avoidance by about 10%. Our results inform local governments about how the provision of public goods and the building of trust can sustainably contribute to firms' willingness to pay local business tax. Thus, our results contribute to the understanding of how taxes can be efficiently collected and effectively used. |
| Keywords: | Tax Perception, Business Taxation, Tax Avoidance, Public Goods, Tax Revenue |
| JEL: | H25 H26 H41 H71 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arqudp:303521 |
| By: | Yury Pukha (ESCP BUSINESS SCHOOL & INTELLIGENT EDGE CONSULTING, USA) |
| Abstract: | The research investigates investment policy as a unique resource and business model innovation as a dynamic capability, considering these two elements as key factors contributing to resilience in the aftermath of an economic shock. We conduct a comprehensive statistical analysis using panel regression and DiD methods and spanning global telecommunications operators from 2012 to 2022, supplemented by case studies of operators in three countries. Authors propose theoretical framework of resilience capabilities for capital intensive sector that extends Resource Based View and Dynamic Capability theories. Findings confirm that firms that prioritize leading investments in core infrastructure outperform competitors. For capital heavy firms? innovation in business model proves to be a powerful factor of resilience but secondary to investment as unique resource. The market advantage of firms that built both capabilities extends during crises, however, making quick adjustments during crisis in investment or business model innovation strategy does not lead to significant gains in market position. |
| Keywords: | Digital Resilience (DR), Investment strategy, Dynamic Capability (DC), Business Model Innovation (BMI), Crisis Management |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516468 |