Entrepreneurship http://lists.repec.org/mailman/listinfo/nep-ent Entrepreneurship 2026-10-05 Ideas and Firm Dynamics When It Takes Two to Tango https://d.repec.org/n?u=RePEc:fip:fedpwp:103815&r=&r=ent Teams of inventors now produce over 80 percent of U.S. patents, up from just 45 percent in 1976. Over the same period, inventor employment has become increasingly concentrated in large firms, rising six times more than overall employment concentration. To explain these trends, we develop a new model of endogenous team formation within firms and embed it in a general equilibrium model of the inventor labor market. Teams increase firms’ returns to scale by increasing the likelihood of productive matches between inventors. The value of these matches rises over time, possibly driven by increasing knowledge specialization. This causes large firms to expand and small firms to shrink in equilibrium, accounting for the observed increase in inventor employment concentration. Because firms do not internalize knowledge spillovers, there is misallocation of inventors across firms. The rise of team production amplifies this misallocation by a factor of six by reallocating inventors away from small firms that generate disproportionately large knowledge spillovers. Seula Kim Jane Olmstead-Rumsey Honghao Wang innovation; R&D teams; inventor allocation; firm dynamics; economic growth 2026-09-22 How Entrepreneurial Orientation Contributes to Business Performance: Evidence from Southeast Europe https://d.repec.org/n?u=RePEc:zbw:esconf:343870&r=&r=ent The aim of this paper is to examine the role of entrepreneurial orientation as a multidimensional strategic capability and its effect on firm performance in Bosnia and Herzegovina. Grounded in a theoretical framework that conceptualizes entrepreneurial orientation as a dynamic construct composed of five dimensions - innovativeness, proactiveness, risk-taking, autonomy, and competitive aggressiveness, the research explores relationships between these dimensions and both financial and non-financial performance outcomes. Empirical data were collected using a structured and validated questionnaire administered to managers and owners of 73 enterprises of different sizes across various sectors. Data were analyzed using descriptive statistics, reliability tests, and multiple regression techniques using the SPSS software package. Findings show that the overall entrepreneurial orientation positively and significantly influences firm performance. At the dimension level, autonomy and competitive aggressiveness emerged as particularly important predictors: autonomy is most strongly associated with non-financial outcomes such as customer loyalty, reputation, and process flexibility, while competitive aggressiveness is most closely linked to improvements in financial indicators. Innovativeness, proactiveness, and risk-taking also contribute positively to performance, albeit with more modest incremental effects. The paper contributes theoretically by clarifying the relative role of entrepreneurial orientation dimensions in a transitional economy context and offers practical implications for managers and policymakers, particularly regarding leadership development, organizational design, and policies that foster an entrepreneurial climate to strengthen firm competitiveness. Umihanić, Bahrija Smajlović, Selma Lukić, Irena entrepreneurial orientation, business performance, innovativeness, autonomy, competitive aggressiveness 2025 Unlocking Organizational Potential: Talent Management as a Driver of Innovation in the AI Era https://d.repec.org/n?u=RePEc:zbw:esconf:343369&r=&r=ent In the context of increasing global competition and rapid technological change, talent management has become a strategic imperative, especially for small and medium-sized enterprises. This paper first explores the importance of talent management and its relevance in a dynamic business environment shaped by digital transformation and artificial intelligence. Through desk research, it is demonstrated that effective talent strategies are becoming essential for innovation, adaptability, and long-term competitiveness. Building on these findings, the paper presents five case studies conducted in 2023 across diverse service enterprises, including banking, retail, IT, hospitality, and market research. The aim was to provide a deeper insight into the actual forms of implementation, practices, and challenges that organizations face in the process of talent management. The results indicate that while the importance of talent management is widely acknowledged, it is rarely implemented as a comprehensive, integrated system. Instead, SMEs tend to focus on isolated activities, often lacking strategic alignment. The paper concludes that in BiH there is a strong need for greater promotion of talent management as a strategic priority. To achieve meaningful and sustainable results, SMEs should move beyond fragmented efforts and adopt a comprehensive talent management model. Burić, Ema Čavalić, Admir Hadžić, Faruk talent, talent management, talent management strategy 2025 Innovate to Borrow: How Intangibles Shape Finance and Growth https://d.repec.org/n?u=RePEc:bge:wpaper:1597&r=&r=ent We study a dynamic economy in which heterogeneous entrepreneurs invest in either generic or innovative technologies, the latter relying on intangible, firm-specific assets whose payoffs are realized through learning or experimentation (e.g., know-how, R&D). A key friction is that, to finance investment, entrepreneurs can pledge assets but not cash flows. We show that innovative technologies can relax financing constraints by increasing the value of continuation relative to default, thereby enabling borrowing against future cash flows. Technology choice is non-monotonic in productivity: low-productivity entrepreneurs innovate-to-experiment and delay investment, intermediate types adopt generic technologies, and high-productivity entrepreneurs innovate-to-scale and relax financial constraints. In equilibrium, financial frictions distort both the allocation of capital and the choice of technology, leading to insufficient experimentation. The model helps us understand how innovation is adopted across firms and economies and has novel policy implications. Vladimir Asriyan Alberto Martin Guillermo Ordoñez Victoria Vanasco borrowing capacity, experimentation, financial frictions, innovation, intangible capital, misallocation, technology choice 2026-09 Endogenous Business Cycles with Small and Large Firms https://d.repec.org/n?u=RePEc:adl:wpaper:2025-04&r=&r=ent Recent decades have seen a rise in the market power of large firms. We propose a theory in which their technology involves the ability to produce multiple products. Large firms interact with smaller competitors and market share reallocations via product creation generate heterogeneous markup dynamics across the firm types. Higher market shares of large firms increase the parameter space for macroeconomic indeterminacy. Bayesian estimation of the general equilibrium model suggests the importance of the endogenous amplification of the product creation channel and animal spirits play a non-trivial role in driving U.S. business cycles. Qazi Haque Oscar Pavlov Mark Weder Indeterminacy, business cycles, multi-product firms, animal spirits, Bayesian estimation. 2025-04 Perspectives of Factoring as an Alternative Source for Financing Macedonian SMEs https://d.repec.org/n?u=RePEc:zbw:esconf:343400&r=&r=ent Factoring as a product of autonomous trade practice has become a very popular method for small and medium enterprises' (SMEs) financing. The financing through factoring is a specific way of fundraising through the account receivables sale by the factor provider who buys the account receivables for some financial interest. The main aim of the research is to analyze the factoring legal regime and practical application of factoring in the Republic of North Macedonia through some economic indicators. More specifically, it will be implemented comparative analysis on the legal regime and application in some Balkan countries. The main findings of the research highlight that the factoring in the Republic of North Macedonia is recognized in many legal acts but it's still missing a unitary regulation for the way on which the financial companies and banks will perform this service as factors. Considering the results of the research, the authors provide recommendations aimed to improve the application of factoring as an alternative source for SME's finding in North Macedonia. Gjorgjioska, Emilija Spaseska, Tatjana Risteska Jankuloska, Aneta Odzaklieska, Dragica factoring contract, SMEs, financing, lex specialis 2025 A Digital Solution for Simplified Business Registration in Pakistan https://d.repec.org/n?u=RePEc:pid:pviewp:2025:47&r=&r=ent A fully digital platform to simplify business registration in Pakistan, empowering MSMEs with mobile-first access, FBR and SECP integration, and secure online services. Nasir Iqbal Baber Majid Bhatti business registration Pakistan, digital registration MSMEs, Pakistan startup registration, e-registration portal Pakistan, PITB limitations, FBR SECP integration, SME formalization Pakistan, online business setup, mobile-first business platform, digital business licensing 2025 Fiscalité et dynamique entrepreneuriale en Afrique subsaharienne : les effets asymétriques sur l’entrepreneuriat d’opportunité et de nécessité https://d.repec.org/n?u=RePEc:pra:mprapa:131116&r=&r=ent This article aims to demonstrate that taxation, as a modality of formal institutions, exerts asymmetric effects on the development of opportunity and necessity entrepreneurship in sub-Saharan African economies. To this end, it uses an unbalanced panel covering 37 to 44 African economies over the period 2005–2018, based on ILOSTAT–World Bank data, to operationalize the cyclical perspective of Fairlie and Fossen (2018), necessary for constructing two binary indicators of entrepreneurship (OPP and NEC) on African data. A probit model with random effects on binary panel data is then estimated and validated using Wooldridge's (2002) battery of tests. The results, robust to the various tests conducted, show that a one percentage point increase in the total tax burden decreases the probability of opportunity entrepreneurship by 1.2 percentage points (at the 1% significance level) and that of necessity entrepreneurship by 0.8 percentage points (at the 5% significance level). This results in a negative skew of a factor of 1.5 against opportunity entrepreneurship. This magnitude skew, which, to our knowledge, demonstrates the first empirical validation in an African context, shows that the opportunity entrepreneur, directly exposed to the transaction costs of the formal sector, fully bears the impact of the tax burden, while the necessity entrepreneur, partially protected by their informal sector affiliation, experiences only a fraction of it. YEMTE TCHEYO, Yves MBONDO, Georges Dieudonné Taxation; Opportunity entrepreneurship; Necessity entrepreneurship; Formal institutions; Sub-Saharan Africa; Magnitude asymmetry; Random effects probit; Binary panel 2026-06-23