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on Small Business Management |
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Issue of 2025–02–24
fifteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Marco Bellandi; Gianluca Fiorindi; Jasna PoÄ ek; Sara Pucci; Silvia Ramondetta |
| Abstract: | This paper focuses on the Tuscany’s innovation and entrepreneurial ecosystem of the Life Sciences. We pay attention to innovative startups and SMEs within more consolidated entrepreneurial fabrics, where large companies have a greater role compared to the typical production sectors of the region. We highlight the role of triple and quadruple helix relationships for innovation, therefore not only between companies, but also between these and research actors, levels of governments, and non-governmental organizations. The features of a dynamic regional ecosystem are thus outlined. Elements of relative weakness also emerge compared to other Italian regions. Finally, we consider policies supporting the development of this ecosystem and some prospects for related in-depth studies and research. |
| Keywords: | Innovation and Entrepreneurial Ecosystems; Life Sciences; Tuscany |
| JEL: | O31 R11 R58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_28.rdf |
| By: | Bruno Merlevede; Pablo Muylle (-) |
| Abstract: | Since the late 2000s, shocks and crises of various types have led to a revival of state intervention around the world. This paper builds a large firm-level dataset to analyze state ownership of firms in Europe for the period 2002-18. We confirm the underperformance of state-owned enterprises (SOEs) relative to privately-owned enterprises (POEs) found in earlier literature for this recent period for a range of firm-level performance indicators. We also examine the impact of SOEs on private firms. We find that larger SOE presence in an industry is associated with lower productivity growth and lower productivity levels among private firms in that industry, but does not affect industry dynamics in terms of entry and exit. This suggests potential aggregate productivity gains from reallocating resources from SOEs to POEs. Further, we show that employment is more stable and crisis-resistant at SOEs, and that SOEs are a more stable source of downstream input demand for other firms. Leveraging our dataset's cross-country nature, we find that SOEs are complements to, rather than substitutes for, lower quality institutions. |
| Keywords: | State ownership, Firm performance, Productivity, Spillover e ects, Privatization, Business dynamism |
| JEL: | H11 L25 L32 O47 P31 P52 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:25/1105 |
| By: | Adhikari, Tamanna (Central Bank of Ireland); Mahony, Michael (Central Bank of Ireland) |
| Abstract: | In this Note, we compute a SME repayment difficulty outcome for 2023 and show the resilience of Irish Small and Medium Enterprises in the face of increasing cost pressures. We model the determinants of SME payment difficulty in Ireland using detailed firm-level survey data. We find that firms’ access to internal sources of finance is the most important contributor in reducing the likelihood of missed payments. Among firms with existing financial debts, leverage, liquidity, and interest burden are key determinants of repayment difficulty. A one standard deviation increase in the leverage ratio, the interest expense to turnover ratio and tax to turnover ratio from their mean values raises the probability of SME financial distress by 6.2, 4.6, and 3.3 per cent (respectively). In contrast, a one unit increase in the cash to total assets ratio from its mean value decreases the probability of SME financial distress by 4.5 per cent. Our results suggest that higher interest rates are unlikely to be the primary driver of missed payment propensity for most firms. Overall, Irish SMEs have demonstrated increasing resilience post-COVID-19 with factors such as attitude to debt, leverage, liquidity and interest burden playing a key role in determining resilience. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:cbi:fsnote:7/fs/24 |
| By: | Supriya Kapoor (Trinity Business School, Trinity College Dublin); Michael Mahony (Macro-Finance Division, Central Bank of Ireland); Anuj Pratap Singh (Macro-Finance Division, Central Bank of Ireland) |
| Abstract: | Since July 2022, European Central Bank (ECB) increased its interest rates for the first time in eleven years to bring inflation back to target. This has huge implication on the credit decision for firms, especially the small and medium enterprises (SME), instrumental in supporting employment, innovation and income. Using ECB's `Survey on Access to Finance of Enterprises' (SAFE) from 2015 to 2023, this paper assesses if the ECB's monetary policy tightening bears any relationship with SME's substituting away from bank credit towards alternative sources of finance. Our results show that contractionary monetary policy shocks were positively associated with the likelihood of SME's substituting away from bank credit. We find this behaviour across SMEs with larger turnover, employee size, age, as well as credit-quality; indicating a much stronger reliance and stickiness to bank credit for relatively smaller, younger, and riskier firms despite increases in the cost of credit following contractionary monetary policy shocks. |
| Keywords: | European Central Bank (ECB), monetary policy tightening, SME credit demand, firm bank credit substitution, firm financing behaviour and adaptability |
| JEL: | D22 E50 E51 E52 E58 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0125 |
| By: | Djidonou, Robert (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Foster-McGregor, Neil (RS: GSBE MGSoG, Mt Economic Research Inst on Innov/Techn); Mathew, Nanditha (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG) |
| Abstract: | Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in reducing poverty and inequality by generating the majority of jobs, income, and pathways to better employment opportunities. However, informal enterprises are often characterized by low productivity and significant decent work deficits. In Sub-Saharan Africa, where a large share of the workforce is engaged in informal enterprises, transitioning to formality is essential for enhancing productivity, fostering economic growth, and ensuring decent work for all. A critical pathway for informal firms to formalize is through production and worker linkages with formal firms. Using a sample of 13, 626 informal firms from three Sub-Saharan African countries, this study examines the performance effects of informal firms with formal linkages and explores the mediating role of human capital. We find that formal backward linkages—where informal firms source inputs from formal firms—are significantly more common than other types of formal-informal linkages. Employing heteroskedasticity-based identification, our findings reveal that the productivity gains from these linkages are not automatic - higher human capital is essential for firms to benefit from knowledge and technology transfers. This highlights the critical role of absorptive capacity in enabling informal firms to leverage knowledge and technology transferred through formal backward linkages, thereby emphasizing the importance of targeted capacity-building interventions in fostering inclusive economic growth. |
| JEL: | J40 L14 L25 O12 O17 O33 |
| Date: | 2025–02–14 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025006 |
| By: | Ilyasse Ech-Chafi (UH2MC - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); El Hassane Ait Ali (UH2MC - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)) |
| Abstract: | The health of small and medium-sized business leaders is often overlooked, particularly in Morocco. These individuals, who do not have a contract of employment, run their own companies. Their health can have a considerable impact on the performance of their business, even leading to bankruptcy. Chronic stress, lack of work-life balance, overwork and financial hardship all have a significant impact on their well-being. Technological innovation plays a key role in providing tools and solutions to improve the well-being and professional efficiency of these leaders. The main objective of this article is to present a literature review aimed at defining key concepts related to health and technological innovation, identifying the main stressors contributing to burnout, and to highlight technologies that can ensure the health of SME managers. As regards the research methodology, a literature review was carried out mainly by consulting the Scopus database, as well as by conducting word-searchKey to carefully select the most recently published scientific papers and publications with a view to exploring innovative technologies that significantly contribute to improving the health of SME managers and the performance of their companies. The results from our literature review highlight several innovative technologies used to promote the health of self-employed workers while ensuring the sustainability of their businesses. These technologies include cognitive therapy, psychoeducation, WISE (Work Improvement in Small Enterprises), the Total Worker Health (TWH) programme, and teleworking and hybrid work facilitated by technological advances. Amork has also developed other projects such as the Amarok e-Health tool, an online questionnaire for managers to assess their health status, as well as psychological support for managers and the organization of seminars and conferences on occupational health. |
| Abstract: | La santé des dirigeants des petites et moyennes entreprises est souvent mise de côté, particulièrement au Maroc. Ces individus, ne disposant pas de contrat de travail, et dirigent leurs propres sociétés. Leur état de santé peut avoir un impact considérable sur les performances de leur entreprise, pouvant même conduire à la faillite. Le stress chronique, l'absence d'équilibre entre vie professionnelle et personnelle, la surcharge de travail ainsi que les difficultés financières exercent une influence significative sur leur bien-être. L'innovation technologique joue un rôle essentiel en fournissant des outils et des solutions destinés à améliorer le bien-être et l'efficacité professionnelle de ces dirigeants. L'objectif principal de cet article est de présenter une revue de littérature visant à définir les concepts clés relatifs à la santé et à l'innovation technologique, à identifier les principaux facteurs de stress contribuant à l'épuisement professionnel, et à mettre en évidence les technologies susceptibles d'assurer la santé des dirigeants de PME. En ce qui concerne la méthodologie de recherche, une étude documentaire a été effectuée en consultant principalement la base de données Scopus, ainsi qu'en menant des recherches par mots-clés afin de sélectionner rigoureusement les articles scientifiques et ouvrages récemment publiés dans le but d'explorer les technologies innovantes qui contribuent significativement à améliorer la santé des dirigeants des PME et la performance de leurs entreprises. Les résultats issus de notre analyse de littérature mettent en lumière plusieurs technologies novatrices utilisées pour favoriser la santé des travailleurs indépendants tout en garantissant la pérennité de leurs entreprises. Parmi ces technologies figurent la thérapie cognitive, la psychoéducation, la méthode WISE (Work Improvement in Small Enterprises), le programme Total Worker Health (TWH), ainsi que le télétravail et le travail hybride facilités par les avancées technologiques. L'association Amork a également conçu d'autres projets tels que l'outil Amarok e-Santé, un questionnaire en ligne permettant aux dirigeants d'évaluer leur état de santé, ainsi que l'accompagnement psychologique destiné aux dirigeants et l'organisation de séminaires et conférences portant sur la santé au travail. |
| Keywords: | Technological innovation, health of the manager, SMEs, stress factors, Morocco, Innovation technologique, santé du dirigeant, PME, facteurs de stress, Maroc |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04881490 |
| By: | Dam, John; Rickon, Henry |
| Abstract: | This literature review aims to elucidate the nuanced relationship between data openness and innovation within the field of Artificial Intelligence (AI). As the significance of AI continues to expand across various sectors, understanding the role of open data in fostering innovation becomes increasingly critical. Through this review, we systematically explore and analyze the wealth of existing literature on the topic. We address key concepts, theoretical perspectives, and empirical findings, shedding light on the multi-dimensional facets of data openness, including accessibility and usability, and their impact on AI innovation. Furthermore, the review highlights the practical implications and potential strategies to leverage data openness in propelling AI innovation. We also identify existing gaps and limitations in current literature, suggesting avenues for future research. This comprehensive review contributes to the evolving discourse in AI studies, offering valuable insights to researchers, data managers, and AI practitioners alike. |
| Date: | 2023–05–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:thesis:a3zwu_v1 |
| By: | Amiti, Mary; Duprez, Cedric; Konings, Jozef; Van Reenen, John |
| Abstract: | Using firm-to-firm transactions, we show that starting to supply a ‘superstar’ firm (large domestic firms, exporters and multinationals) boosts productivity by 8% after three years. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of “superstar spillovers”. Consistent with a model of technology transfer, we find bigger treatment effects from technology-intensive superstars and also falls in markups (in order to win superstar contracts). We also show that firms that start supplying superstar firms enjoy a ‘dating agency’ effect — an increase in the number of new buyers that is particularly strong within the superstar firm’s network. Taken together, the results suggest an important role for raising productivity through superstars’ supply chains regardless of multinational status. |
| Keywords: | FDI; productivity; spillovers |
| JEL: | F23 O30 F21 |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124676 |
| By: | Marydas, Sneha (RS: GSBE MGSoG, Maastricht Graduate School of Governance); Mathew, Nanditha (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG); De Marzo, Giordano; Pietrobelli, Carlo (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | In this study, using a novel dataset that matches firm-level data with online job vacancy data, we investigate the effects of firms’ digital technology adoption on future hiring and the dynamics of hiring and training, focusing on different types of technologies and categories of occupations. First, we examine the impact of adopting different types of digital technologies, namely AI, Advanced ICT, and Basic ICT, on future firm hiring. Our findings reveal that less advanced digital jobs (eg. Basic ICT, Advanced ICT) are substituted by more advanced digital jobs (eg. AI), while the advanced technology adoption by firms leads to increased overall hiring of non-digital roles. Second, we show that there is a positive relationship between training and new hiring only for one occupational category, namely, managers, with no significant relationship for other occupations. Third, we investigate the joint effect of training and technology adoption for firm performance. Our findings reveal that digital technology adoption enhances a firm’s financial performance only when combined with internal staff training. The sole exception is AI, which yields positive performance benefits even in the absence of training. |
| JEL: | O33 O12 L20 D22 |
| Date: | 2025–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025004 |
| By: | Bussolo, Maurizio; Dixit, Akshay; Golla, Anne; Kotia, Ananya; Lee, Jean N.; Narasimhan, Prema; Sharma, Siddharth |
| Abstract: | Understanding how e-commerce platforms are affecting the small, informal firms that sell on them is a question of growing importance to researchers and policymakers in developing countries. This paper examines this question using data from surveys of firms selling on two e-commerce platforms in South Asia. The businesses selling on these platforms range widely in terms of size, degree of formalization, and other characteristics. Their main reason for joining the platforms is to access more customers. After joining, many sellers report (i) an expansion of their business, (ii) an increase in their incentive to formal registration, and (iii) increased visibility to tax authorities. Other less-widespread channels of impact include (i) the adoption of new or improved business practices and technologies, (ii) better access to finance, and (iii) greater flexibility in balancing home and work life. These reported impacts do not vary significantly by firm size or registration status, suggesting that the greater market access brought about by (selectively) joining e-commerce platforms benefits equally large and small (informal) firms. Given size and age, firms selling on the platform for a longer period are more likely to experience these impacts, suggesting that firms learn how to use the platform more effectively over time. Finally, firms on these platforms—even the micro and small ones, which tend to be informal—are from a select group, as they are owned and managed by individuals who are more educated and younger than the owners and managers of more typical firms in this setting. |
| Keywords: | e-commerce platforms; informal and formal firms; South Asia |
| JEL: | L81 L88 O17 |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127127 |
| By: | Mohnen, Pierre (RS: GSBE other - not theme-related research, QE Econometrics); Mairesse, Jacques (Quantitative Economics); Notten, Ad (Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper reviews the empirical work that has been done over the period 2013-2023 on the topic of innovation and productivity. A visual graph based on keywords shows the main areas that have been investigated. The literature review is organized around the way the link between innovation and productivity has been analyzed, the data that have been used, and the evidence that has been obtained. The paper ends with suggestions of future research on the topic. |
| JEL: | D24 O30 O31 O32 |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025003 |
| By: | Elodie Andrieu (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); John Morrow (QMUL - Queen Mary University of London) |
| Abstract: | How do firms diffuse resources and do they spillover outside headquarter intensive areas? We show R&D subsidies induce French firms to hire new workers, often in new establishments and commuting zones. Using subsidy induced labor demand shocks and past employment patterns, we estimate a within industry spillover elasticity of .26 to non-subsidy firms, rising to .35 for openings outside of headquarter areas. Spillovers are also significant across firm branches and for firms. While subsidies are nominally awarded to headquarters, firms expand to distribute spillovers more broadly. |
| Keywords: | Multi-establishment Firms, Subsidies, Directed Growth, Spillovers |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:psewpa:halshs-04747880 |
| By: | Ine Paeleman (University of Antwerp); Virginie Mataigne (Ghent University); Tom Vanacker (Ghent University and University of Exeter Business School) |
| Abstract: | Past research shows that firms with constrained access to debt are more likely to withdraw from exporting. We argue that a firm’s debt maturity structure (i.e., the short-term/long-term debt mix) also matters because short-term debt entails liquidity risk and long-term debt entails higher costs. Using a database on Belgian start-ups, we find that start-ups relying mainly on either short-term debt or long-term debt exhibit a higher likelihood to withdraw from exporting compared to start-ups with a more balanced debt maturity structure. This U-shaped relationship is weaker for start-ups with more financial slack and stronger for start-ups with higher growth opportunities. |
| Keywords: | Complete export withdrawal, start-ups, debt maturity, financial slack, growth opportunities |
| JEL: | G32 L26 M13 M16 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202502-472 |
| By: | Vivarelli, Marco; Arenas Díaz, Guillermo |
| Abstract: | The relationship between technology and employment has long been a topic of debate. This issue is even more pertinent today as the global economy undergoes a technological revolution driven by automation and the widespread adoption of Artificial Intelligence. The primary objective of this paper is to provide insights into the relationship between innovation and employment by proposing a conceptual framework and by discussing the state of the art of the debates and analyses surrounding this topic. |
| JEL: | O33 O32 O15 |
| Date: | 2025–02–10 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025005 |
| By: | Kim, Seula (Pennsylvania State University) |
| Abstract: | This paper investigates how worker beliefs and job prospects impact the wages and growth of young firms, as well as the aggregate economy. Building a heterogeneous-firm directed search model where workers gradually learn about firm types, I find that learning generates endogenous wage differentials for young firms. High-performing young firms must pay higher wages than equally high-performing old firms, while low-performing young firms offer lower wages than equally low-performing old firms. Reduced uncertainty or labor market frictions lower the wage differentials, thereby enhancing young firm dynamics and aggregate productivity. The results are consistent with U.S. administrative employee-employer matched data. |
| Keywords: | Wage Differentials, Firm Dynamics, Learning, Search Frictions, Uncertainty |
| JEL: | E20 E24 J31 J41 J64 L25 L26 M13 M52 M55 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17655 |