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on Small Business Management |
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Issue of 2024‒09‒02
thirteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | D'Al, Francesco; Santarelli, Enrico; Vivarelli, Marco |
| Abstract: | In this paper we integrate the insights of the Knowledge Spillover Theory of Entrepreneurship and Innovation (KSTE+I) with Schumpeter's idea that innovative entrepreneurs creatively apply available local knowledge, possibly mediated by Marshallian, Jacobian and Porter spillovers. In more detail, in this study we assess the degree of pervasiveness and the level of opportunities brought about by AI technologies by testing the possible correlation between the regional AI knowledge stock and the number of new innovative ventures (that is startups patenting in any technological field in the year of their foundation). Empirically, by focusing on 287 Nuts-2 European regions, we test whether the local AI stock of knowledge exerts an enabling role in fostering innovative entry within AI-related local industries (AI technologies as focused enablers) and within non AI-related local industries, as well (AI technologies as generalised enablers). Results from Negative Binomial fixed-effect and Poisson fixed-effect regressions (controlled for a variety of concurrent drivers of entrepreneurship) reveal that the local AI knowledge stock does promote the spread of innovative startups, so supporting both the KSTE+I approach and the enabling role of AI technologies; however, this relationship is confirmed only with regard to the sole high-tech/AI-related industries. |
| Keywords: | KSTE+I, Artificial Intelligence, innovative entry, enabling technologies |
| JEL: | O33 L26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1473 |
| By: | Mengus, Eric (HEC Paris); Michalski, Tomasz Kamil (HEC Paris) |
| Abstract: | Specialized knowledge-generating jobs comprise close to one fifth of employment and one fourth of the wage bill in French manufacturing firms. They are positioned high in the firm hierarchy, horizontally aside upper-tier managers but are not managerial in nature. This escapes the patterns implied by the hierarchy view of the firm. Conditioning on firm size and shares of management workers, their higher shares in employment at the firm level are correlated with more innovation and intangible capital, greater product complexity, higher revenue and quantity total factor productivity and profitability. This suggests that firms use specialized knowledge workers to generate within-firm knowledge and create firm capabilities. Consistently, we model firms as organizations where efficient production of higher-value added, complex goods requires information acquisition by within-firm knowledge workers to develop capabilities beyond those created by management and hierarchies. |
| Keywords: | firm organization; complexity; productivity; knowledge generation; capabilities. |
| JEL: | D23 D24 D83 J24 L20 M10 M50 |
| Date: | 2023–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1468 |
| By: | Bonelli, Maxime (HEC Paris) |
| Abstract: | Using data technologies, like machine learning, investors can gain a comparative advantage in forecasting outcomes frequently observed in historical data. I investigate the implications for capital allocation using venture capitalists (VCs) as a laboratory. VCs adopting data technologies tilt their investments towards startups developing businesses similar to those already explored, and become better at avoiding failures within this pool. However, these VCs become concurrently less likely to pick startups achieving rare major success. Plausibly exogenous variations in VCs' screening automation suggest a causality between data technologies adoption and these effects. These findings highlight potential downsides of investors embracing data technologies. |
| Keywords: | big data; machine learning; artificial intelligence; venture capital; entrepreneurship; innovation; capital allocation |
| JEL: | G24 L26 O30 |
| Date: | 2023–02–22 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1470 |
| By: | Grace C. Liu (Research to Empower, Syosset, New York, USA); Willem Spanjers (Kingston University London, UK; ICEA; Rimini Centre for Economic Analysis) |
| Abstract: | This research focuses on the role of uncertainty in explaining gender disparities in entrepreneurship by testing a behavioral decision model. It examines how misperceptions and ambiguity affect men’s and women’s decisions on founding startups or maintaining established firms in developed and developing countries. It starts from the theoretical assumption that entrepreneurial decision-making follows the specific version of cumulative prospect theory. This model incorporates the Ellsberg paradox and the Allais paradox. Data from the Global Entrepreneurship Monitor in 46 countries/territories over 2013–2019 was used for a panel data econometric analysis using Generalized Least Squares (GLS) and fixed-effects models. After the panel data analysis, a binomial sign test and signed-rank tests were done to validate the theory on gender disparities in entrepreneurship. Findings indicate that there are clear gender differences in behavioral characteristics of entrepreneurs in the face of varying uncertainty levels according to three business development stages. During the startup stage, confidence in ability and confidence from knowing an entrepreneur is positively associated with entrepreneurial rates, whereas fearing the worst is negatively associated. Gender-bias discount factor progressively hinders women rather than men as the business develops, particularly for women in developing countries. During the established business stage, fearing the worst, confidence, and high reference points are positively associated, especially for women’s entrepreneurship. Due to a self-selection effect, once women can enter the scale-up stage, they are more likely than men to continue to the established business stage. This research concludes that effective policies should consider the specific needs of women and the barriers that women face when setting up and sustaining businesses. It underlines how women’s economic empowerment contributes to gender equality and broader societal advancement. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:rim:rimwps:24-13 |
| By: | Muhammad Rofiqul Islam; Abdullah Al Mehdi |
| Abstract: | Many studies have examined the connection between the intention to start a business and environmental values. However, there still needs to be more knowledge in the extant literature about how climate change campaigns influence sustainable entrepreneurial intention. This study uses the Theory of Planned Behavior (TPB) to develop a theoretical framework to explain how climate change campaigns affect the intention to start a sustainable business. This interdisciplinary conceptual research model bridges the gap between climate awareness, sustainable values, and entrepreneurial intentions, offering a robust framework for understanding and fostering sustainable entrepreneurial behaviors. Our study lays the groundwork for future empirical studies and real-world interventions to advance sustainability through entrepreneurship. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.16838 |
| By: | Fratesi, Ugo |
| Abstract: | Recent papers show that the impact of Cohesion Policy is not uniform in space but larger, smaller or insignificant depending on the regions. These outcomes mostly depend on the characteristics of each territory (conditioning factors). This paper reviews them and investigates, through descriptive statistical techniques, their presence in European regions. European regions are then classified in terms of need on two dimensions: GDP per capita and GDP growth. Results show that most policy favourable conditioning factors are also factors of growth. As a consequence of that, the potential policy impact is often larger in those regions which are less in need of support. In terms of policy consequence, cohesion policy should remain place-based and fully consider the regional specificities, as well the specificities of the various territories inside a region. However, since the conditioning factors for policy effectiveness are less present in regions more in need, acceptting trade-offs will be required, and in particular one between growth and policy effectiveness on one hand and territorial cohesion on the other. Lagging regions will also require interventions creating framework conditions, and those territorial assets which they are missing. |
| Keywords: | Regional Policy, Cohesion, EU, Conditioning Factors |
| JEL: | R58 R11 R12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300676 |
| By: | Said BALHADJ (Management of Information System Research, Abdelmalek Essaadi University) |
| Keywords: | internationalization of companies, SME, exporting |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04653607 |
| By: | Amore, Mario Daniele (HEC Paris); Miller, Danny (HEC Montreal) |
| Abstract: | Although family firms are ubiquitous, their prevalence displays major geographic disparities and their performance differs across regions. We review an extensive literature in economics and finance showing that formal institutional factors play a key role in explaining variations in the diffusion of family firms and their performance. We also review a more neglected but rapidly emerging stream of research focusing on culture as a source of these variations. By providing a framework for current theories, findings and methods, we demonstrate how cultural elements such as trust, religion, family values and collectivism provide useful answers to where and why family firms exist and how well they perform. |
| Keywords: | family firms; culture; trust; social capital |
| JEL: | G34 |
| Date: | 2023–04–17 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1487 |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Stihl, Linda (CIRCLE, Lund University); Hermelin, Brita (Linköping University) |
| Abstract: | Even though place is associated with the local, place-based policy approaches target the regional level of government. Addressing this conundrum, this paper focuses on the local level studying municipalities’ regional development work in different types of regions in three Nordic countries. Through a comparative study across regional and national contexts, the paper identifies the need to clarify the strategies of municipalities in place-based approaches. The results explain the uneven capabilities and structural constraints of municipalities impacting the viability of the subsidiarity principle bringing policy design and implementation closer to citizens. |
| Keywords: | Change agency; regional development; municipalities; place-based policy; subsidiarity |
| JEL: | R11 R58 |
| Date: | 2024–08–09 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_010 |
| By: | Mercedes Campi; Masayasu Asai; Jonathan McFadden; Emilio Pindado; Alicia Rosburg |
| Abstract: | New entrants into agriculture are critical for the transformation of food systems. New entrants in OECD countries are younger, have higher levels of education and entrepreneurial skills, and are more likely to adopt new technologies than those already working in the sector. Yet, negative perceptions of farming, limited access to capital and land, lower access to services and regulatory complexities can all deter the entry to the sector. Digital technologies can make agriculture more attractive by reducing arduous tasks and health risks, enhancing working conditions, and supporting on-farm income diversification. Foresight analysis of macro trends and challenges to a digitalised, sustainable and inclusive future can be a useful tool to help anticipate farmer skills needs and transform mindsets. Governments can facilitate new entrants in agriculture, including by investing in human capital, improving digital infrastructure services, promoting innovation systems and removing barriers to entry. |
| Keywords: | Agricultural entrepreneurs, Agricultural innovation, Barriers to entry, Generational renewal |
| JEL: | O13 Q12 Q15 Q16 O33 |
| Date: | 2024–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:oec:agraaa:209-en |
| By: | Murunga, Powel |
| Abstract: | he study examined the determinants of fertilizer adoption among small scale crop farmers across Sub-Saharan Africa's regions using a probit regression model and propensity score matching (PSM) technique to assess productivity impacts. Variables analyzed include land tenure, access to credit, access to fertilizer, gender, age, farm size, education, household size, expenditure, and other income sources. Data was obtained from households’ survey data for selected sub-Saharan countries. The countries were also categorized as arid, semi-arid, and non- arid regions. Findings indicated that access to fertilizer increases adoption across all zones, for example by 36.1% in arid areas at 95% confidence level. Access to credit is also significant at 95% confidence level in arid regions, boosting adoption by 6.2%. Land tenure positively affects adoption in semi-arid regions but is insignificant in arid and non-arid areas. Education levels and household expenditure show mixed effects; secondary education negatively affects adoption in arid zones, while higher household expenditure reduces adoption likelihood in semi-arid regions. The PSM analysis conducted showed that fertilizer adoption leads to increased productivity, with adopters experiencing yield increases between 195 kg/acre and 261 kg/acre compared to non- adopters. Policy recommendations to improve fertilizer adoption include enhancing supply chains for timely and affordable access, expanding financial services for smallholder farmers, securing land tenure, and providing targeted education and training programs. These strategies are expected to boost agricultural productivity and smallholder’s farmer livelihoods in arid and semi-arid regions. The study emphasizes on the critical role of fertilizer access in boosting productivity for smallholder farmers and provides actionable insights for policymakers to improve agricultural outcomes in challenging environments. |
| Keywords: | Consumer/Household Economics |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344322 |
| By: | Andres, Raphaela; Niebel, Thomas; Sack, Robin |
| Abstract: | Until today, the question of how digitalisation and, in particular, individual digital technologies affect productivity is still the subject of controversial debate. Using administrative firm-level data provided by the Dutch and the German statistical offices, we investigate the economic importance of data, in particular, the effect of the application of big data analytics (BDA) on labour productivity (LP) at the firm level. We find that a simple binary measure indicating the mere usage of BDA fails to capture the effect of BDA on LP. In contrast, measures of BDA intensity clearly show a positive and statistically significant relationship between BDA and LP, even after controlling for a firm's general digitalisation level. |
| Keywords: | big data analytics, productivity, administrative firm-level data |
| JEL: | L25 O14 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300678 |
| By: | Rosa Sanchis-Guarner; Nikodem Szumilo; Antoine Vernet |
| Abstract: | We study the impact of improved rail access on entrepreneurship rates in England and Wales. We use data from the Census spanning 2001, 2011, and 2021 to analyse self-employment rates in granular geographic areas of around 200 residents. Specifically, we study how they respond to changes in the distance to the nearest train station occurring due to 56 new station openings. We find that all else equal, moving 1 km further away from a station reduces self-employment rates by 0.12 percentage points, with the effect dissipating beyond 7 km. Secondary results suggest that access to rail makes it easier to become self-employed while not making it more attractive compared to employment. Our findings suggest that rail infrastructure improvements can support local entrepreneurship and economic activity, contributing to regional development and reducing economic inequality. |
| Keywords: | entrepreneurship, rail, self-employment |
| JEL: | L26 O18 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11227 |