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on Small Business Management |
| By: | Nobuya FUKUGAWA |
| Abstract: | This study investigates the impact of Technology Extension Services (TES) on the productivity of small and medium-sized enterprises (SMEs) in Japan, using an Endogenous Switching Regression model and firm-level panel data covering both the pre-pandemic (2016–2019) and pandemic (2020–2023) periods. Focusing on Kohsetsushi , Japan’s extensive network of public support institutes for SMEs, the analysis finds that TES adoption significantly improves firm productivity across both periods, highlighting its role as a locally embedded innovation intermediary. Firms with higher levels of intangible capital benefited more, with complementary effects particularly pronounced during the pandemic—suggesting that absorptive capacity became critical under crisis conditions. Selection estimates reveal that more productive firms were more likely to adopt TES, although some equally capable firms opted out—consistent with comparative advantage shaping self-selection patterns. Geographic proximity to service providers constrained TES access in stable periods but became less critical during the pandemic due to the expansion of digital service delivery. These findings underscore how firm capabilities, external shocks, and spatial access jointly influence the effectiveness of public technology support programs. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25064 |
| By: | Ufuk Akcigit; Harun Alp; Jeremy Pearce; Marta Prato |
| Abstract: | This paper explores the symbiotic relationship between transformative entrepreneurs and inventors, which is crucial for economic growth. We utilize microdata from Denmark to demonstrate that while the relationship between IQ and general entrepreneurship tends to be negative, it is strongly positive among transformative entrepreneurs. Transformative entrepreneurs, often with higher IQ and education levels, significantly drive R&D and business growth, thereby providing substantial opportunities for inventors. In contrast, average entrepreneurs are more influenced by their family's entrepreneurship background. Our economic model links these dynamics to overall economic progress, highlighting how higher education influences career paths in entrepreneurship and invention. We identify talent misallocation caused by unequal education access, particularly affecting lower-income families. Our findings indicate the most effective policies strengthen the interplay between higher education, innovation, and entrepreneurship to foster transformative businesses and achieve long-run economic growth. |
| Keywords: | Entrepreneurship; R&D Policy; Innovation; IQ; Endogenous Growth |
| JEL: | O31 O38 O47 J24 |
| Date: | 2025–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1410 |
| By: | Elona Dushku (Bank of Albania) |
| Abstract: | Small and medium-sized enterprises (SMEs) are vital to Albania’s economy but face significant financing challenges amid monetary tightening. Utilizing firm-level data from 2022–2023, this study documents that the abrupt interest rate increases in 2022 prompted a rise in alternative financing use, particularly among younger and smaller firms, alongside greater reliance on internal funds as an immediate coping mechanism. In contrast, the more gradual tightening in 2023 led to a broad-based decline in both alternative and internal financing, indicative of constrained liquidity and persistent financial pressures across firms. Notably, heterogeneity in internal financing adjustments was limited, with younger firms showing no statistically significant difference from older firms, except for those experiencing tighter bank credit conditions, who further curtailed internal funding. These findings underscore the varied responses of SMEs to phased monetary tightening and emphasize the need for targeted policy measures to support firm resilience over time. |
| Keywords: | SMEs; Access to Finance; Monetary Tightening; Firm Characteristics |
| JEL: | E52 G21 G32 L25 |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp09-2025 |
| By: | Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Francesca Micocci; Armando Rungi |
| Abstract: | This paper investigates how the presence of foreign direct investment (FDI) contributes to domestic innovation with a focus on green technologies in the European regions between 2013 and 2018. Using a rich dataset combining patent data, firm-level data and FDI proxies, we identify a clear pattern when foreign investors are technologically sophisticated, domestic firms in the regions where they invested show a higher propensity for patenting. The patenting activity by the parent companies of multinational enterprises (MNEs) and their corporate perimeter plays a more crucial role than local foreign subsidiaries. Furthermore, we find that the technological focus of MNEs – green vs. non-green – shapes the direction of these spill-overs. Notably, we provide novel evidence of linkages between the green patenting activity of MNE parents located abroad and the green innovation of domestic firms in the European Union, mediated through foreign subsidiaries operating in close proximity. Policy efforts aiming to foster green innovation should therefore prioritise attracting foreign investors with strong innovation records in environmentally sustainable technologies. |
| Keywords: | technological spill-overs, multinational enterprises, FDI, domestic innovation, firm-level data |
| JEL: | O32 F23 O34 L23 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:wpaper:266 |
| By: | James Driver |
| Abstract: | I analyze whether a change in patent systems differentially affects firm-level innovation investments at patent-valuing firms of different sizes. Using legally required, economically representative, U.S. Census Bureau microdata, I separate firms into groups based on a firm’s response to a question asking it to rank the degree of patent importance to its business and firm-size. I then measure how firms’ innovation inputs/outputs respond to the America Invents Act (AIA). Results show the AIA reduced innovation investments at smaller, patent-valuing firms while increasing innovation investments at larger, patent-valuing firms, highlighting differential firm-size effects of patent policy and policy’s importance to investments. |
| Keywords: | Investments, innovation, patents, firm size |
| JEL: | L25 O3 O51 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-31 |
| By: | Schilirò, Daniele |
| Abstract: | This article aims to analyze the competitive capacity of the Sicilian production system in a region that has historically experienced delayed development. The essay also examines the structure of the Sicilian economy and its evolution over time, highlighting key factors that shed light on its current dynamics. In particular, it focuses on the recent boost in entrepreneurial activity, with start-ups emerging across various sectors—signaling positive trends in production, innovation, and development opportunities. It also addresses the growth of the tourism sector, despite its limitations. Furthermore, the article focuses on the experience of productive systems that have influenced regional policy towards small and medium-sized enterprises across various economic sectors, promoting the creation of business networks. Finally, it discusses the policies needed to enhance competitiveness and foster growth in Sicily. The essay first argues that innovation is the most critical driver of competitiveness, as it enhances total factor productivity. Second, it identifies investment in knowledge as the optimal strategy for improving the efficiency of production factors and as a cornerstone for long-term growth and development. Furthermore, the essay contends that institutions must foster competitiveness and growth through a regulatory framework that is simple, clear, and less bureaucratic. This is especially important in regions that have historically allocated substantial public resources yet achieved only modest outcomes in income and employment growth. The paper specifically emphasizes the need for significant public investment in infrastructure, education and training, and research. Equally important are private investments—not only to expand the production base but, more importantly, to improve it qualitatively through the adoption of new digital technologies. |
| Keywords: | Competitiveness; Sicilian economy; productive districts; innovation; digital technologies; institutions |
| JEL: | J00 L0 L23 O1 O3 R11 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124717 |
| By: | Kalantzis, Fotios; Kesidou, Effie; Ri, Anastasia; Roper, Stephen |
| Abstract: | This paper investigates how firms navigate the dual challenges of digitalisation and climate change. Our comprehensive approach considers climate change strategies, distinguishing adaptation-only, mitigation-only and 'dual' adaptation and mitigation strategies. Drawing on theoretical insights from the literature on digital affordances, we argue that digitalisation enables firms to recognise better the opportunities and risks associated with climate change. These affordances significantly influence strategic decisions regarding adaptation, mitigation, or a combination of both, ultimately impacting the intensity of their implementation efforts. To empirically examine these dynamics, we analyse data from the 2022 and 2023 European Investment Bank Investment Survey waves. Our sample includes over 24, 000 firms, spanning small and medium-sized enterprises (SMEs) and large businesses across 27 EU Member States and the USA. Our results reveal that firms with higher digitalisation are more likely to adopt a 'dual' strategy that combines mitigation and adaptation efforts rather than pursuing a single climate strategy or no climate response. Furthermore, we find a positive relationship between digitalisation and climate action intensity across mitigation and adaptation measures. Importantly, these patterns hold consistently across different sectors and firm sizes. Overall, our study sheds light on the critical role of digital technologies in shaping firms' climate responses, emphasising the need for organisations to leverage their technological strengths to address environmental challenges effectively. |
| Keywords: | Business, Strategic management, Digitalization, Climate change, Climate protection, Environmental management, EU countries, USA |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:319607 |
| By: | Fiona Paine; Richard R. Townsend; Ting Xu |
| Abstract: | This paper examines the evolving policy landscape surrounding foreign investment restrictions in innovative startups. Drawing on recent research, we analyze both the security benefits and economic costs of policies like the Foreign Investment Risk Review Modernization Act (FIRRMA). The evidence suggests that foreign investments do facilitate measurable cross-border knowledge spillovers that may raise legitimate security concerns. However, restricting these investments imposes significant costs on domestic innovation ecosystems, including reduced capital availability, disrupted investor networks, and potentially diminished innovation outcomes. These effects extend well beyond directly targeted foreign investors to affect domestic venture firms and startups. We explore design considerations for more effective investment screening policies, including industry targeting, investor heterogeneity, and implementation approaches, as well as complementary policies that might address security concerns while minimizing costs to innovation. We conclude by outlining promising directions for future research on this increasingly important intersection of innovation policy and national security. |
| JEL: | F50 F65 G15 G18 G24 O3 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33803 |
| By: | Rik Rozendaal |
| Abstract: | This paper studies the relationship between climate policy, market power and innovation. Using data on patenting and firms' balance sheets, I document that firms with a higher degree of market power are, on average, more invested in dirty technologies than their direct competitors. I then develop a model of directed technical change with strategic innovation incentives, incorporating the empirical evidence. A carbon tax affects market power and both the intensity and the direction of innovation. In the calibrated model, a carbon tax lowers aggregate markups and increases clean innovation while also increasing dirty innovation by some firms. |
| Keywords: | climate policy, market power, innovation, directed technical change |
| JEL: | O30 O44 Q55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11938 |
| By: | Serena Fatica (European Commission - Joint Research Centre and Mofir.); Tommaso Oliviero (Università di Napoli Federico II, CSEF, Mofir and Cefes); Michela Rancan (University of Milan) |
| Abstract: | Using a large sample of European enterprises, we document that companies’ default probability is significantly larger when they experience negative end-of- the year equity (zombie status) in the year prior to default. Zombie firms are more likely to default in the short run in countries with more efficient judicial insolvency procedures. To establish a causal link between judicial efficiency and the default probability of zombie firms, we exploit a reform of the court districts in Italy that generates exogenous variation in trial lengths. This country-level analysis corroborates the findings of a cleansing effect of judicial efficiency that limits the persistence of zombie firms in the economy. |
| Keywords: | default; zombie firms; SMEs; EU-27; judicial efficiency. |
| JEL: | G33 K22 L25 O52 |
| Date: | 2025–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:747 |
| By: | Camille Hebert; Emmanuel Yimfor; Heather Tookes |
| Abstract: | What is the role of gender in the serial founding of VC-backed startups? Despite robust evidence linking serial entrepreneurship to startup success, women comprise 13.3% of VC-backed founders but only 4% of those founding three or more startups. Using a novel design comparing men and women cofounders of the same startup, we estimate substantial gender gaps in subsequent funding outcomes on average and following failure or success of the current startup. We find these at both the extensive and intensive margins. For example, following failure, women are 22.5% less likely to found another VC-backed startup compared to their cofounders who are men. Among those who do found another VC-backed firm, women raise 53.3% less capital following failure of the current venture and 24.6% less capital following success. These gaps contribute to the well-documented gender gap in VC funding. Lower interest of women in founding new firms can only partially explain our findings. We find no evidence of gender differences in founder quality or of statistical updating by investors. Instead, consistent with unequal treatment of women, we find that women serial founders are penalized with smaller VC deals following failures of their prior startups but they are not rewarded with larger deal sizes following past successes. By contrast, men are rewarded for their prior experiences as founders, regardless of whether their startups were failures or successes. In line with theories of stereotyping and confirmation bias, we also find striking negative spillovers from unrelated women-founded failures within investors’ portfolios (and no positive spillovers from their successes). |
| JEL: | G0 G24 G30 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33943 |
| By: | Yoshiki Ando; James Bessen; Xiupeng Wang |
| Abstract: | R&D investment has grown robustly, yet aggregate productivity growth has stagnated. Is this because “ideas are getting harder to find”? This paper uses micro-data from the US Census Bureau to explore the relationship between R&D and productivity in the manufacturing sector from 1976 to 2018. We find that both the elasticity of output (TFP) with respect to R&D and the marginal returns to R&D have risen sharply. Exploring factors affecting returns, we conclude that R&D obsolescence rates must have risen. Using a novel estimation approach, we find consistent evidence of sharply rising technological rivalry. These findings suggest that R&D has become more effective at finding productivity-enhancing ideas but these ideas may also render rivals’ technologies obsolete, making innovations more transient. |
| Keywords: | R&D, innovation, productivity, obsolescence |
| JEL: | O32 O33 L10 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-29 |
| By: | Koch, Melanie; Menkhoff, Lukas |
| Abstract: | Entrepreneurs tend to be risk tolerant but is higher risk tolerance always better? In a sample of about 2100 small businesses, we find an inverted U-shaped relation between risk tolerance and profitability. This relationship holds in a simple bilateral regression, and even after controlling for a large set of individual and business characteristics. Apparently, one major transmission goes from risk tolerance via investments to profits. This is quite robust as it applies for both past and planned investments. Considering business survival, we show, first, that less profitable businesses leave the market while moderately risk tolerant entrepreneurs survive more often. Second, the high risk-low profit part of the U-shaped relation seems to disappear among businesses being 4 years and older, indicating that such inferior risk-profit combinations disappear over time. These findings are important for the concept of business readiness trainings as the motivation (and ability) to take risks should potentially be accompanied by some warning that taking too much risk can be detrimental to long-term business success. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:319532 |
| By: | Friedson-Ridenour, Sophia; Hailemicheal, Adiam Hagos; Ochem, Dumebi Uzoabaka; Papineni, Sreelakshmi |
| Abstract: | Husbands are often key stakeholders and influential in women’s enterprise performance. Intrahousehold constraints and relational dynamics may contribute to a gender gap in entrepreneurship. This mixed-methods paper uses a randomized controlled trial and qualitative research to examine whether the returns to a skills intervention to women business owners are higher with a couples training. The couples training curriculum involves modelling effective communication techniques between married women entrepreneurs and their husbands to help build empathy, scrutinize intrahousehold resource allocation, and encourage greater spousal support. The findings suggest that the skills intervention increases business practices and women’s economic autonomy with treated women being 30 percent more likely to report sole decision-making power in their business. Smaller firms (defined by lower than median baseline profitability) benefit the most from the couples-based approach, earning 50 percent higher revenues and profits when trained with husbands. The channel to higher profitability appears to be improved negotiation skills affording women more time for their businesses, without increased marital conflict. Larger firms increase access to credit but there is no evidence of an impact on profits. The paper contributes to the evidence base on engaging men to help unleash the economic potential of women. |
| Date: | 2025–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11151 |
| By: | Hasna, Z.; Hatton, H.; Jaumotte, F.; Kim, J.; Mohaddes, K. |
| Abstract: | This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). |
| Keywords: | Low-Carbon Innovation, Growth, Climate Policies, Climate Change, Porter Hypothesis |
| JEL: | F64 H23 O33 O44 Q55 Q56 Q58 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2516 |
| By: | Zhao Jin; Amir Kermani; Timothy McQuade |
| Abstract: | We examine the performance of startups co-founded by immigrant and native teams. Leveraging unique data linking startups to founders' and employees' employment and education histories, we find native-migrant teams outperform native-only and migrant-only teams. Native-migrant startups have larger employment three years after founding, are more likely to secure funding, access larger funding rounds, and achieve more successful exits. An instrumental variables strategy based on native shares in university-degree programs confirms native-migrant teams are larger and more likely to receive funding. Superior access to diverse labor pools, successful VCs, and expanded product markets are key factors in driving native-migrant outperformance. |
| JEL: | F22 G24 L26 M13 O32 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33804 |
| By: | Arti Grover (The World Bank Group); Mariana Viollaz (CEDLAS-IIE-FCE-UNLP) |
| Abstract: | This paper provides evidence on the nature of financial constraints faced by women entrepreneurs, especially in contexts of stringent social norms. Using micro-data from the World Bank Enterprise Surveys for 61 countries, the analysis shows that formal firms managed by women do not face credit constraints on the extensive margin. They are equally likely to apply for credit as their male counterparts and experience lower rates of credit rejection, with a higher likelihood of opening credit lines. However, on the intensive margin, firms managed by women receive lower credit amounts, indicating signs of credit constraints. This disparity in access to credit cannot be explained by gender differences in risk profiles, profitability, or productivity. However, firms managed by women have lower sales per worker, suggesting challenges in accessing product and labor markets. The paper finds suggestive evidence of capital misallocation based on gender, particularly in countries with more restrictive gender and cultural norms. Firms managed by women demonstrate a 15 percent higher average return on capital compared to firms managed by men, indicating the potential benefits of increased access to credit for women-led businesses. These findings emphasize the importance of addressing gender-specific constraints to accessing finance and promoting gender-inclusive policies to enhance firm growth and reduce capital misallocation. |
| JEL: | D22 D24 J16 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:dls:wpaper:0352 |
| By: | Yoshiki Ando; Emin Dinlersoz; Jeremy Greenwood; Ruben Piazzesi |
| Abstract: | How do advanced technology adoption and venture capital (VC) funding impact employment and growth? An analysis of data from the US Census Bureau suggests that while both advanced technology use and VC funding matter on their own for firm outcomes, their joint presence is most strongly correlated with higher employment levels. VC presence is linked with a high increase in employment, though primarily among a limited subset of firms. In contrast, technology adoption is associated with a smaller rise in employment, yet it influences a considerably larger number of firms. A model of startups is created, focusing on decisions to use advanced technology and seek VC funding. The model is compared with firm-level data on employment, advanced technology use, and VC investment. Several thought experiments are conducted using the model. Some experiments assess the importance of advanced technology and VC in the economy. Others examine the reallocation effects across firms with different technology choices and funding sources in response to shifts in taxes and subsidies. |
| JEL: | E13 G24 O30 O40 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33993 |
| By: | Aneta Bonikowska, René Morissette and Grant Schellenberg |
| Abstract: | Previous studies of earnings differences across groups of Canadian-born individuals have used cross-sectional data, leaving unanswered the important question of what earnings differences amount to when measured over workers’ lifecycle. Using data from Statistics Canada’s Longitudinal Worker File and the 1996 and 2001 censuses of population, this study fills this gap and quantifies differences in cumulative earnings—the sum of earnings received over a 20-year period—for four different groups of Canadian-born individuals. The study shows that the higher cumulative earnings of Chinese (+20%) and South Asian (+15%) men (relative to White men) can be mostly or entirely accounted for by their higher education levels and their overrepresentation in science, technology, engineering, and mathematics (STEM) fields of study. Conversely, the lower cumulative earnings of Black men (relative to White men) cannot be accounted for by differences in sociodemographic characteristics, human capital, job characteristics or work histories. The higher cumulative earnings of Chinese and South Asian women relative to White women can be explained mostly or entirely by cross-group differences in these observable factors, the most important being education and representation in STEM fields. By contrast, Black and White women had similar cumulative earnings over the 20-year periods considered. |
| Keywords: | earnings; employment; population groups; visible minority; racialized groups; discrimination. |
| JEL: | J23 M21 |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:stc:stcp8e:2024011e |
| By: | Rubi, Carlos Antonio Zuniga |
| Abstract: | The private sector and JICA introduced the One Village, One Product (OVOP) movement in Honduras to promote local economic development through entrepreneurship. Recent studies have yet to explore which of the movement's strategies most effectively affects the performance of participating microenterprises. This case study introduces a new approach by analyzing microenterprise’s resources from a business management perspective. Through a mixed approach, microenterprises evaluated the effects of the OVOP on nine resources driven by the initiative. Semi-structured interviews with ongoing and non-operating businesses further assessed the most and least influential. The results were analyzed through the VRIO framework from the resource-based theory to evaluate the adoption of the initiatives and their impact within each microbusiness. The findings show the predominant role of training in managerial skills through the movement according to the experience of the entrepreneurs. Furthermore, it also shows the lack of ownership of the movement that participants may have when the initiative does not develop from within. The results of the resources most influenced by OVOP shed new light on the study of the movement worldwide, as they may provide alternative ideas to improve entrepreneurial capabilities in developing countries through local movements. |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:thesis:a6cgy_v1 |
| By: | Wiatt, Renee D. |
| Abstract: | Small businesses are critical to their rural communities. Often serving as a meeting place and social hub for local citizens, small businesses in rural areas deliver more than just goods and services. This article explores the trends for rural businesses in the North Central Region (NCR) by examining the owner and small business demographics using the NCR-Stat: Small Business Survey. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ncrcrd:359223 |
| By: | Malone, Jr., DeAndre |
| Abstract: | Starting a business is an exciting venture that often involves a range of decisions, from operational roles to financial strategies. Among the many forms of business ownership, the “couple business” model has gained attention due to its unique structure and growing prevalence. While couple businesses have long existed, they were historically informal and often excluded from academic discourse, particularly due to the invisible nature of women’s contributions within family firms (Danes & Olson, 2003; Ahl, 2006). As gender roles and household labor patterns evolved, particularly in the late 20th century, these businesses emerged from the shadows to become an increasingly visible organizational form (Fitzgerald & Muske, 2002). Today, couple businesses are recognized as a significant segment of the small business landscape, defined by their distinct blend of family and enterprise, shared leadership, mutual financial stakes, and intertwined personal and professional dynamics. Recent studies have documented the rise in the number of couple businesses (Smith, 2000; Venter et al., 2012; El Shoubaki et al., 2021), highlighting the importance of examining this model empirically to better understand how it shapes both business and personal outcomes. According to data from the Annual Business Survey, 10.3% of small businesses (employing at least one individual) are jointly owned and equally operated by spouses (U.S. Census Bureau, 2021). The concept of a “couple business” is defined and understood differently across various academic fields. To provide clarity, we adopted the definition and criteria established by El Shoubaki, Block, and Lasch (2021), who delineate the specific attributes that characterize the couple business structure in our study: • The couple must be married, or cohabitating, and can be either mixed, or single gender. • Both partners can co-own the business OR be actively involved in the management of the business. • They both have a sense of (psychological) ownership of the business. Family businesses may or may not also be couple businesses. Using data from the NCR-Stat: Small Business Survey (Wiatt et al., 2024), this report analyzes the demographic and business characteristics of couple businesses in the North Central Region. It also compares their distributional patterns and proportions to those of other small businesses in the survey, permitting readers to understand how couple businesses fare across key indicators of business structure. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ncrcrd:359031 |
| By: | Daniel Reiter (University of Graz, Austria); Stefania Rossi (University of Graz, Austria); Leonita Mazrekaj (Haxhi Zeka University, Kosovo) |
| Abstract: | Despite ongoing progress, women continue to show lower entrepreneurial activity compared to men, highlighting the need for further efforts to close the gender gap and enhance women's economic participation. This study examines the drivers of gender differences in Total Early-Stage Entrepreneurial Activity (TEA), with a focus on the roles of self-perceived abilities and educational attainment. Using a unique dataset of 399, 114 observations from 64 countries (2013-2017), we employ Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore how an entrepreneurial mindset - defined as self-perceived entrepreneurial abilities - mediates the gender gap in entrepreneurship. The analysis incorporates the moderating effect of educational attainment and controls for micro-level characteristics as well as economic and socio-political variables. Our results confirm that women engage in TEA at lower rates than men. However, this gap narrows significantly when accounting for an entrepreneurial mindset, particularly among individuals with lower educational attainment. Among the highly educated, the mediating effect is weaker, suggesting that structural factors - such as access to networks and resources - may play a more prominent role. These findings deepen our understanding of gender disparities in entrepreneurship and offer valuable implications for policy interventions aimed at promoting more inclusive entrepreneurial environments and greater female economic participation. |
| Keywords: | Total Early-Stage Entrepreneurial Activity (TEA), Gender, Self-Perceived Abilities, Educational Attainment, Partial Least Squares Structural Equation Modeling (PLS-SEM), Moderated Mediation Analysis |
| JEL: | L26 E24 J24 J16 C30 J28 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:grz:wpaper:2025-09 |
| By: | Chiara Castelli (The Vienna Institute for International Economic Studies, wiiw); Ronald B. Davies; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Javier Flórez Mendoza (The Vienna Institute for International Economic Studies, wiiw); Francesca Micocci; Armando Rungi |
| Abstract: | Foreign direct investment (FDI) has become a driver of growth in both developed and developing countries, as it enables the transfer of know-how and advanced technologies to host economies. This policy note discusses how FDI can effectively support innovation and green growth within the European Union (EU). It focuses on the role of regulatory harmonisation and technological alignment as factors that can significantly influence the location decisions and effectiveness of FDI. Similarly, as spill-overs from foreign affiliates substantially enhance local innovation capabilities, particularly in green technologies, we argue in favour of policies enhancing domestic absorptive capacity and of policy mechanisms that can systematically integrate sustainability criteria into FDI screening processes. Aligning investment policies with regional technological strengths and green transition goals will enable the EU to leverage FDI strategically for sustainable economic growth and climate resilience. |
| Keywords: | FDI, regulatory distance in NTMs, technological proximity, environmental technology, regional spill-overs |
| JEL: | F23 L23 O24 O33 O34 R58 Q55 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:97 |
| By: | Batabyal, Amitrajeet; Beladi, Hamid |
| Abstract: | In this paper, we analyze a dynamic model in which two stylized regions A and B use an artificial intelligence (AI)-based technology α(t) to produce a knowledge good Q(t). Even though the initial value of the AI-based technology α(0) is identical in both regions, region A saves and hence invests more than region B to make the existing AI-based technology more powerful. We show that this differential investment means that the ratio of the output of the knowledge good in region A to region B or Q_A⁄Q_B is continually rising. In other words, without targeted policy, region A will become a “leading region” that experiences economic growth and innovation ahead of region B which will become a “lagging region” that innovates less and hence tends to grow more slowly. |
| Keywords: | Artificial Intelligence, Dynamics, Economic Growth, Region, Technology |
| JEL: | O33 R11 |
| Date: | 2025–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124730 |
| By: | Roberta De Luca (Bank of Italy); Rosalia Greco (Bank of Italy and Bocconi Baffi Center.); Giovanni Immordino (University of Naples Federico II and CSEF; University of Naples Federico II, CSEF, Mofir and Cefes) |
| Abstract: | We examine how government-mandated Covid-19 business closures impacted on the ownership structure of Italian private companies and investigate the mechanisms whereby the mafia infiltrates the legal economy during crises. Using a novel dataset tracking monthly shareholder changes, we show that an increase in the days of closure reduced the number of firms undergoing ownership changes, although significantly less so in provinces with strong mafia presence. This is especially true in the sectors that are historically prone to mafia infiltration and those more severely affected by the Covid-19 liquidity crisis, and in micro-firms, which tend to be more financially vulnerable. |
| Keywords: | Mafia Infiltration, Covid-19, Firm ownership |
| JEL: | D22 G32 K42 |
| Date: | 2025–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:750 |
| By: | NEIFAR, MALIKA; Gharbi, Leila |
| Abstract: | Purpose The scope of this paper is to investigate if the information and communications technology (ICT) can improve the FinTech firm performance in the BRICS countries from monthly macro time series data during 2014M01-2022M12. Design/methodology/approach Through the Bayesian VAR-X approach and the time series DYNARDL simulation models, we investigate the impact of the ICT and its components on the firm performance for both the short-run (SR) and the long-run (LR) historical and predictive trend. Besides these regression models, this study applies the Granger Causality (GC) in quantile and the frequency domain (FD) GC tests to show more details about the causality linkage. Findings From the BVAR-X approach, historical IRFs conclude that the ICT has positive effect on PI for all countries in the SR and a positive effect in the LR only for China. From the DYNARDL simulation models, predictive IRFs results corroborate with the historical IRFs results except for the China and SA in the SR and for Brazil and India in the LR. We conclude in addition that the predictive positive relationships is driven by MCS for Brazil, IUI for China, FBS for SA, and all of the ICT components for the India case. GC type test results are in accordance with previous results. Originality The novelty of this research is based on the idea of studying the effect of the ICT on FinTech firm performance by using several time series data based dynamic technics so that we can estimate and predict the SR adjustments that arise from the impact of ICT to the LR relationship with the firm profitability. |
| Keywords: | FinTech Firm from BRICS area; Bayesian VAR-X model; DYNARDL simulation model; Historical and predictive IRFs for SR and LR effects; Granger Causality test in quantile (QGC); Frequency domain Granger causality (FDC) test |
| JEL: | C01 C11 C22 C53 D22 |
| Date: | 2025–02–25 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123778 |
| By: | Dylan Hogg; Hossein Jebeli |
| Abstract: | Assessing insolvency dynamics is essential for evaluating the financial health of non-financial corporations and mitigating macroeconomic and financial stability risks. This study leverages a newly created Statistics Canada dataset linking insolvency records with firm-level financial data to develop a robust framework for monitoring insolvency risk. We employ two complementary approaches: a univariate threshold method that establishes critical financial ratio benchmarks and a multivariate econometric model that accounts for interactions among financial indicators. These methods produce debt-at-risk measures that enhance risk assessment by combining simplicity with analytical depth. Finally, we apply these metrics to timely firm-level data, enabling continual monitoring of financial vulnerabilities. |
| Keywords: | Credit and credit aggregates; Econometric and statistical methods; Financial stability; Firm dynamics |
| JEL: | G33 L20 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:25-010 |