Showing papers in "Small Business Economics in 2012"
TL;DR: In this article, a generational perspective was adopted to investigate entrepreneurial orientation in family firms and found that the importance of non-family investors on EO is particularly strong in third-generation-and-beyond firms.
Abstract: We adopt a generational perspective to investigate entrepreneurial orientation (EO) in family firms. We test a model that determines how the influence on EO of external factors and internal factors differs in first-, second- and third-and-beyond-generation family firms. We argue that while the founder is vital in the first generation, EO is more subject to interpretations of the competitive environment in the second generation and that in the third generation and beyond, access to non-family resources drives EO to a greater extent. Our findings show that perceptions of the competitive environment and EO correlate differently in family firms, depending on the generation in charge, and it is generally stronger in second-generation family firms. Further, we find that non-family managers on the top management team makes a positive difference for EO only in the third-generation and beyond family firms. The significance of non-family investors’ on EO is particularly strong in third-generation-and-beyond firms.
404 citations
TL;DR: In this article, the authors investigate how generational ownership dispersion, family management involvement, and family member reciprocity affect firm performance, and they also consider the moderating role of innovativeness.
Abstract: This paper investigates the relationships between family influence and family firm performance. Specifically, we investigate how generational ownership dispersion, family management involvement, and family member reciprocity affect firm performance. We also consider the moderating role of innovativeness. Our findings indicate that family firm influence can have both positive and negative consequences for family firm performance. Implications and areas for future research are discussed.
349 citations
TL;DR: In this paper, the authors apply a key construct from the entrepreneurship field, entrepreneurial orientation (EO), in the context of long-lived family firms and show that a permanently high level of EO is not a necessary condition for long-term success.
Abstract: We apply a key construct from the entrepreneurship field, entrepreneurial orientation (EO), in the context of long-lived family firms. Our qualitative in-depth case studies show that a permanently high level of the five EO dimensions is not a necessary condition for long-term success, as traditional entrepreneurship and EO literature implicitly suggest. Rather, we claim that the level of EO is dynamically adapted over time and that the original EO scales (autonomy, innovativeness, risk taking, proactiveness, and competitive aggressiveness) do not sufficiently capture the full extent of entrepreneurial behaviors in long-lived family firms. Based on these considerations we suggest extending the existing EO scales to provide a more fine-grained depiction of firm-level corporate entrepreneurship in long-lived family firms.
349 citations
TL;DR: In this article, the impact of firm and industry characteristics on small firms' capital structure was studied. And the authors found that profits reduce in particular short-term debt, whereas growth increases longterm debt.
Abstract: We study the impact of firm and industry characteristics on small firms’ capital structure, employing a proprietary database containing financial statements of Dutch small and medium-sized enterprises (SMEs) from 2003 to 2005. The firm characteristics suggest that the capital structure decision is consistent with the pecking-order theory: Dutch SMEs use profits to reduce their debt level, and growing firms increase their debt position since they need more funds. We further document that profits reduce in particular short-term debt, whereas growth increases long-term debt. We also find that inter- and intra-industry effects are important in explaining small firms’ capital structure. Industries exhibit different average debt levels, which is in line with the trade-off theory. Furthermore, there is substantial intra-industry heterogeneity, showing that the degree of industry competition, the degree of agency conflicts, and the heterogeneity in employed technology are also important drivers of capital structure.
338 citations
TL;DR: In this paper, the authors explore the country-specific institutional characteristics likely to influence an individual's decision to become an entrepreneur and find that entrepreneurial entry is inversely related to the size of the government, and more weakly to the extent of corruption.
Abstract: We explore the country-specific institutional characteristics likely to influence an individual’s decision to become an entrepreneur. We focus on the size of the government, on freedom from corruption and on “market freedom” defined as a cluster of variables related to protection of property rights and regulation. We test these relationships by combining country-level institutional indicators for 47 countries with working-age population survey data taken from the Global Entrepreneurship Monitor. Our results indicate that entrepreneurial entry is inversely related to the size of the government, and more weakly to the extent of corruption. A cluster of institutional indicators representing “market freedom” is only significant in some specifications. Freedom from corruption is significantly related to entrepreneurial entry, especially when the richest countries are removed from the sample, but unlike the size of government, the results on corruption are not confirmed by country-level fixed-effects models.
336 citations
TL;DR: The authors used social learning theory to examine the influence of parental role models in entrepreneurial families and found that the presence of a parental role model increases the likelihood that individuals become self-employed.
Abstract: This paper uses social learning theory to examine the influence of parental role models in entrepreneurial families. We distinguish between paternal and maternal role models and investigate how their influence on offsprings’ decision to become self-employed is moderated by personality, specifically the offsprings’ openness. We use data on 461 alumni from eight German universities. Our results show not only that the presence of a parental role model increases the likelihood that individuals become self-employed, but that the influence of role models also depends on the individual’s openness. We discuss the implications of our findings for research on entrepreneurial families, role models, and the psychology of the entrepreneur.
328 citations
TL;DR: This paper explored potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables using a sample of 1,035 US family businesses and applying ordinal regression analysis, finding an inverted U-shaped relationship between family ownership and international entrepreneurship.
Abstract: Empirical research on international entrepreneurship is growing, but results on the role of family ownership in this phenomenon are inconsistent. We believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships. Drawing on opposing perspectives of stewardship and stagnation, we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables. Using a sample of 1,035 US family businesses and applying ordinal regression analysis, we find an inverted U-shaped relationship between family ownership and international entrepreneurship: International entrepreneurship is maximized when family ownership stands at moderate levels. We discuss the implications of our findings for theory and practice and indicate avenues for future research.
294 citations
TL;DR: In this paper, the authors identify entrepreneurship as one such mechanism facilitating the spillover of knowledge facilitating economic growth, and provide empirical evidence that entrepreneurial activity also serves to promote economic growth.
Abstract: In this paper we suggest that the spillover of knowledge may not occur automatically as typically assumed in models of endogenous growth. Rather, a mechanism is required to serve as a conduit for the spillover and commercialization of knowledge from the source creating it, to the firms actually commercializing the new ideas. In this paper, entrepreneurship is identified as one such mechanism facilitating the spillover of knowledge. Using a panel of entrepreneurship data from 18 countries, we provide empirical evidence that, in addition to measures of Research & Development and human capital, entrepreneurial activity also serves to promote economic growth.
283 citations
TL;DR: In this article, the relation between working capital management and profitability for small and medium-sized enterprises (SMEs) was analyzed by controlling for unobservable heterogeneity and possible endogeneity.
Abstract: This paper analyzes the relation between working capital management and profitability for small and medium-sized enterprises (SMEs) by controlling for unobservable heterogeneity and possible endogeneity. Unlike previous studies, we examine a non-linear relation between these two variables. Our results show that there is a non-monotonic (concave) relationship between working capital level and firm profitability, which indicates that SMEs have an optimal working capital level that maximizes their profitability. In addition, a robustness check of our results confirms that firms’ profitability decreases as they move away from their optimal level.
256 citations
TL;DR: DeTienne et al. as discussed by the authors examined entrepreneurs' intentions to exit by a range of possible exit paths [acquisition, initial public offering (IPO), family succession, employee buyout, independent sale, liquidation], building on Gimeno et al.'s notion of thresholds as they apply to a simple survival/exit dichotomy, and expanding this to include different intended paths of exit.
Abstract: Entrepreneurial exit—the process by which the founders of privately held firms leave the firm they helped to create (DeTienne, J Bus Venturing, 2010)—is an important component of the entrepreneurial process, yet researchers know very little about it. We examine entrepreneurs’ intentions to exit by a range of possible exit paths [acquisition, initial public offering (IPO), family succession, employee buyout, independent sale, liquidation], building on Gimeno et al.’s (Adm Sci Q 42:750–783, 1997) notion of thresholds as they apply to a simple survival/exit dichotomy, and expanding this to include different intended paths of exit. Our results indicate that entrepreneurs intend to pursue different exit paths based on previous entrepreneurial experience, industry experience, age, and education level. Our findings provide preliminary evidence that differences between intended exit and failure are underspecified in the literature, since exit consists of many unique paths. Also, in support of threshold theory, we find that the intended exit path is driven by factors other than firm performance.
234 citations
TL;DR: In this article, the concept of social identity was incorporated into entrepreneurship and the determinants of having entrepreneurial intentions were analyzed based on Programme for International Student Assessment (PISA) 2006 data.
Abstract: We incorporate the concept of social identity into entrepreneurship and analyze the determinants of having entrepreneurial intentions. We argue that an entrepreneurial identity results from an individual’s socialization. This could be parental influence but, as argued in this paper, also peer influence. Based on Programme for International Student Assessment (PISA) 2006 data in which students report their entrepreneurial intentions at the age of 15, we find that having an entrepreneurial peer group has a positive effect on an individual’s entrepreneurial intentions. We find that the strength of the peer effect in a country is moderated by prevailing values, namely individualism.
TL;DR: In this article, the authors empirically examined the effect of family ownership on the breadth, depth, and speed of organizational learning and found that family ownership is positively associated with the speed of learning but negatively associated with depth of learning.
Abstract: Organizational learning can significantly improve family firms’ ability to counter by stimulating entrepreneurship. Applying the behavioral theory of the firm, this study empirically examines the effect of family ownership on the breadth, depth, and speed of organizational learning. Each of these dimensions can influence entrepreneurship. Furthermore, the effect of ownership on organizational learning depends on family cohesiveness, the extent to which members of the owner family feel closeness, mutual solidarity, and the desire to stick together. Data from 741 firms show that family ownership is positively associated with the breadth and speed of learning but is negatively associated with the depth of learning. Though cohesiveness does not alleviate the negative effect of family ownership on the depth of learning, it amplifies the effect of family ownership on the breadth and speed of learning. Organizational learning, especially its breadth and depth, positively influences the pace of family firms’ entrepreneurship
TL;DR: In this article, the authors investigated the role of entrepreneurs' general and specific human capital on the performance of UK new technology based firms using a resource-based approach to the entrepreneurship theory, and found that individual entrepreneurs or entrepreneurial teams with high levels of formal business education, commercial, managerial or same sector experience are found to have created better performing NTBFs.
Abstract: This paper investigates the role of entrepreneurs’ general and specific human capital on the performance of UK new technology based firms using a resource based approach to the entrepreneurship theory. The effect of entrepreneurial human capital on the performance of NTBFs is investigated using data derived from a survey of 412 firms operating in both high-tech manufacturing and the services sectors. According to the resource based theory it is found that specific human capital is more important for the performance of NTBFs in relation to general. More specifically individual entrepreneurs or entrepreneurial teams with high levels of formal business education, commercial, managerial or same sector experience are found to have created better performing NTBFs. Finally it is found that the performance of a NTBF can improve through the combination of heterogeneous but complementary skills, including, for example, technical education and commercial experience or managerial technical and managerial commercial experience.
TL;DR: In this paper, the authors performed a complementary analysis by taking personality traits, personal values and indicators for workers' autonomy explicitly into account, and found that self-employment leads to higher levels of job satisfaction.
Abstract: Most studies in the economics discourse argue that the impact of self-employment on job satisfaction is mediated by greater procedural freedom and autonomy. Values and personality traits are considered less likely to explain the utility difference between self-employed and salaried workers. Psychology scholars suggest that entrepreneurial satisfaction also depends, at least in part, on specific values and personality traits. Utilising a large dataset derived from the 2006 European Social Survey, this study performs a complementary analysis by taking personality traits, personal values and indicators for workers’ autonomy explicitly into account. The empirical findings add further strength to economists’ argument that, net of values and personality traits, autonomy and independence are the mechanisms by which self-employment leads to higher levels of job satisfaction. These results hold true for both male and female sub-samples even when a multitude of socio-demographic characteristics, personal values and personality traits are controlled for.
TL;DR: In this article, the authors find that the size and age of small firms have a negative impact on firm growth in the majority of specifications and that firms managed by women have lower expected growth rates.
Abstract: Empirical work on micro and small firms focuses on developed countries, while existing work on developing countries is all too often based on small samples taken from ad hoc questionnaires. The census data we analyze here are fairly representative of small business structure in India. Consistent with findings from prior research on developed countries, size and age have a negative impact on firm growth in the majority of specifications. Enterprises managed by women have lower expected growth rates. Proprietary firms face lower growth on the whole, especially if they are young firms. Exporting has a positive effect on firm growth, especially for young firms and for female-owned firms. Although some small firms are able to convert know-how into commercial success, we find that many others are unable to translate it into superior growth.
TL;DR: In this article, the authors present a review of all 83 journal articles that have used this type of data set, their purpose being to assist users of current data sets as well as designers of new projects in making the best use of this innovative research approach.
Abstract: Longitudinal panel studies of large, random samples of business start-ups captured at the pre-operational stage allow researchers to address core issues for entrepreneurship research, namely, the processes of creation of new business ventures as well as their antecedents and outcomes. Here, we perform a methods-orientated review of all 83 journal articles that have used this type of data set, our purpose being to assist users of current data sets as well as designers of new projects in making the best use of this innovative research approach. Our review reveals a number of methods issues that are largely particular to this type of research. We conclude that amidst exemplary contributions, much of the reviewed research has not adequately managed these methods challenges, nor has it made use of the full potential of this new research approach. Specifically, we identify and suggest remedies for context-specific and interrelated methods challenges relating to sample definition, choice of level of analysis, operationalization and conceptualization, use of longitudinal data and dealing with various types of problematic heterogeneity. In addition, we note that future research can make further strides towards full utilization of the advantages of the research approach through better matching (from either direction) between theories and the phenomena captured in the data, and by addressing some under-explored research questions for which the approach may be particularly fruitful.
TL;DR: The authors found that twice as many businesses were discouraged from applying for a bank loan than had their loan request denied, and observed a number of distinguishing characteristics of "discouraged borrowers" relative to applicants.
Abstract: Concerns that small firms encounter credit constraints are well entrenched in the literature, despite widespread empirical evidence that a relatively small proportion of small firms have their loan applications rejected. However, many firms may be discouraged from applying for fear of rejection. These businesses are the focus of this paper. Based on responses to a large-scale postal survey of UK small and medium-sized enterprises (SMEs), we find that twice as many businesses were discouraged from applying for a bank loan than had their loan request denied. More particularly, we observe a number of distinguishing characteristics of “discouraged borrowers” (relative to applicants). These include: strategy, sector, prior entrepreneurial experience and banking relationships. The implications of our findings for policy and future research are briefly discussed.
TL;DR: In this article, the authors reviewed the evidence on financing technology-based small firms (TBSFs) in Europe and found that European TBSFs finance new investments by relying primarily on internal funds, due to capital market failures induced by asymmetric information.
Abstract: This paper reviews the evidence on financing technology-based small firms (TBSFs) in Europe European TBSFs finance new investments by relying primarily on internal funds, due to capital market failures induced by asymmetric information European venture capital has caught up with US venture capital, but this is mainly because of the growth in UK venture investments It is unclear whether European venture capital has been able to certify the quality and enhance the growth of funded companies Compared with the NASDAQ, there is little development of trading in high-tech stocks in Europe: the so-called New Markets established in the 1990s collapsed in the wake of the Internet bubble crash Public venture capital and research and development (R&D) tax incentives seem to have positively affected high-tech firms
TL;DR: In this article, the authors investigated the determinants of self-employment survival in Europe in two stages: the first one focuses on the effect of variables at the individual level, while the second raises questions regarding specific regional factors through the introduction of macro variables.
Abstract: This paper investigates the determinants of self-employment survival in Europe in two stages. The first one focuses on the effect of variables at the individual level, while the second raises questions regarding specific regional factors through the introduction of macro variables. In conducting this analysis, discrete choice models, including both single and competing risks frameworks, are applied to data drawn from the European Community Household Panel from 1994 to 2001. Different destination states are considered: paid employment, unemployment and inactivity. This allows us to search for the underlying determinants of these different hazards. The results suggest a positive impact on survival of formal education and previous experience within the labour market. In addition, we find that entering self-employment from unemployment has a strong negative effect on survival within self-employment. However, our results also show that the expenditure on start-up subsidies decreases the risk of exiting self-employment specifically for the group of individuals entering self-employment from unemployment. Therefore, the availability of these incentives might be seen by policymakers as not only a route to increase entry into self-employment, but also as an adequate instrument for equalising survival chances across individuals entering self-employment from unemployment and those entering with a different starting status.
TL;DR: In this article, the authors examined the impact of regional competitiveness on the innovative activity of entrepreneurial firms and found strong evidence that regional competitiveness and university spillovers are strong complements in fostering innovation activity.
Abstract: This study examines the impact of regional competitiveness on the innovative activity of entrepreneurial firms. Based on a unique and hand-collected dataset of publicly listed high-technology start-ups and university regions, this paper tests how regional competitiveness and university spillovers affect the innovation behavior of entrepreneurial firms. The results provide strong evidence that regional competitiveness and university spillovers are strong complements in fostering innovation activity of entrepreneurial firms. However, the results also raise the question whether incentives for universities and their actors might lead to crowding out effects.
TL;DR: In this paper, the authors test whether the amount and/or quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Belgian SMEs are used, because there are important differences in disclosure and audit requirements among them.
Abstract: We test whether the amount and/or quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Belgian SMEs are used, because there are important differences in disclosure and audit requirements among them. Consistent with the traditional view that asymmetric or incomplete information restricts access to external funds, our results indicate that both the amount and quality of financial statement information are positively related to SME leverage. In addition, we find that leverage is positively related to asset structure, growth (prospects) and median industry leverage, and negatively related to firm age and profitability.
TL;DR: In this article, the authors predict that startup-specific instrumentality, valence and expectancy are key components of entrepreneurial motivation and closely related to those intentions, efforts, and behaviors that will eventually lead to operating a firm.
Abstract: Motivation is an important factor that distinguishes those nascent entrepreneurs who make progress towards an operating venture from those who do not. Based on Vroom’s (Work and motivation, 1964) expectancy theory, we predict that startup-specific instrumentality, valence and expectancy are key components of entrepreneurial motivation and closely related to those intentions, efforts, and behaviors that will eventually lead to operating a firm. Hypotheses are tested using data from the first Panel Study of Entrepreneurial Dynamics I. Our results show that valence is a multidimensional construct, and that various types of valence are related to different intent and behavioral outcomes. All types of valence, instrumentality, and expectancy are related to a nascent entrepreneur’s intended effort level in a cross-section of data, and over time, intended effort is positively related to operative firm status. Overall, our results suggest that expectancy theory holds promise for research on nascent entrepreneurs’ motivation.
TL;DR: In this paper, the authors apply elements of goal theory and social cognitive theory to develop a motivational model of nascent entrepreneurial start-up outcomes, which provides predictive value for the likelihood of new firm founding among nascent entrepreneurs.
Abstract: Entrepreneurship involves human agency. The entrepreneurial process occurs because people are motivated to pursue and exploit perceived opportunities. It is rooted in the theory that action is the result of motivation and cognition. Therefore, this paper applies elements of goal theory and social cognitive theory to develop a motivational model of nascent entrepreneurial start-up outcomes. The objective of this model is to renew attention on motivational constructs in entrepreneurship research. Additionally, it provides predictive value for the likelihood of new firm founding among nascent entrepreneurs. Results suggest that motivational antecedents among nascent entrepreneurs significantly influence the likelihood of quitting the start-up process versus continuing nascent entrepreneurial start-up efforts.
TL;DR: In this article, the authors investigate the effects of entrepreneurial human capital on SME performance using data on 2,713 SMEs within the European Union and find that both profitability and productivity are positively related to industry-specific knowledge possessed by the CEO-owner prior to starting up the firm and the general business knowledge acquired once the firm is up and running.
Abstract: In this study, we investigate the effects of entrepreneurial human capital on SME performance using data on 2,713 SMEs within the European Union. Performance was measured in two ways: profitability as ROA and productivity as revenue per employee. Results indicate that both profitability and productivity are positively related to industry-specific knowledge possessed by the CEO-owner prior to starting up the firm and the general business knowledge acquired once the firm is up and running. Experience as a result of having previously worked in a firm in the same industry before starting a business was related to productivity, but there is no relation with profitability. There is a link between performance and inclusion of other CEO-owners in the founder’s inner circle of advisors. This relationship is positive when the advisor’s venture has experienced failure and negative when the advisor’s venture has been successful. We discuss the significance of these findings for research and practice.
TL;DR: In this paper, the authors investigated the relationship between initial research and development (R&D) intensity and firm growth using a unique data set for firms with R&D activities in Austria during the period 1995-2006.
Abstract: This paper investigates the relationship between initial research and development (R&D) intensity and firm growth using a unique data set for firms with R&D activities in Austria during the period 1995–2006. Results based on the least absolute deviation (LAD) estimator show that initial R&D intensity has a positive and significant impact on both employment and sales growth in the subsequent 2 years. Quantile regressions for each cross-section reveal that the impact of R&D intensity is significant from 0.3 to the highest quantile of the conditional distribution of employment growth. Furthermore, the elasticity of employment growth with respect to R&D intensity is highest for firms at or slightly below the median of the distribution of firm growth. Finally, we find that the impact of R&D decreases significantly over time.
TL;DR: In this paper, the authors analyze the role of the individual and regional knowledge context in forming university students' entrepreneurial intentions and find that role models facilitating the transfer of tacit knowledge and the expectation that strong ties will provide know-how and know-who positively impact entrepreneurial intentions.
Abstract: The current paper analyzes the role of the individual and regional knowledge context in forming university students’ entrepreneurial intentions. As access to knowledge resources is crucial for the growth and survival of knowledge-based start-ups, we argue that an individual’s decision in favor or against becoming an entrepreneur should critically depend on the multilevel context providing her with access to strategically relevant knowledge. A unique dataset for German students and regions allows us to analyze a variety of personal and regional determinants of entrepreneurial intentions among students. At the individual level we find that role models facilitating the transfer of tacit knowledge and the expectation that strong ties will provide know-how and know-who positively impact entrepreneurial intentions. At the regional level we find that a high regional start-up rate in knowledge-based industries and a high growth rate of regional knowledge production positively influence entrepreneurial intentions.
TL;DR: Uhlaner et al. as discussed by the authors examined the intersection of entrepreneurship and family business, and more specifically the notion of the entrepreneuring family, and argued that strong family and entrepreneurial objectives can function side by side with one another.
Abstract: The purpose of this special issue is to examine the intersection of entrepreneurship and family business, and more specifically the notion of the entrepreneuring family. Despite a growing awareness of familyowned businesses and their contribution to the world’s developed and developing economies, the debate continues regarding their role in entrepreneurship. Family firms are commonly perceived as traditional, old-fashioned and stagnant. The term ‘‘family management’’ has been contrasted with ‘‘professional management.’’ Early family firm research put family and business objectives at opposite poles—as family first versus business first (Ward 1997). A more recent model proposes that business-owning families characterized by a strong family orientation (e.g., interdependence, security, stability, tradition and loyalty) may create a tension that actually pulls the business (and the businessowning family) away from an entrepreneurial orientation (e.g., autonomy, risk-taking propensity, innovativeness, proactiveness, etc.; Martin et al. 2006). Such research enforces the public and academic perception of the entrepreneuring family as an oxymoron—that is, a contradiction in terms. However, recent empirical research by Leenders and Waarts (2003) supports an alternative paradigm, i.e., a view that strong family and entrepreneurial objectives can function side by side with one another (Lumpkin et al. 2008). Based on the papers presented in this special issue, we argue that it is time to explore this new paradigm more fully, i.e., one that reflects the entrepreneurial behaviors of many family-owned and/or -managed firms. We want to discover why some businessowning families embrace dynasty building through L. M. Uhlaner (&) Center for Entrepreneurship, Nyenrode Business Universiteit, P.O. Box 130, 3620 AC Breukelen, The Netherlands e-mail: l.uhlaner@nyenrode.nl
TL;DR: In this article, the authors study how motives to patent affect the use of the patent portfolio with a particular focus on motives aimed at the monetization of intellectual property, and find that small and medium-sized enterprises exhibit a much stronger reliance on "monetary patents" than large companies and nearly half of the SMEs in the sample patent for monetary reasons.
Abstract: This paper seeks to understand how motives to patent affect the use of the patent portfolio with a particular focus on motives aimed at the monetization of intellectual property. The analysis relies on data from an international survey conducted by the European Patent Office. There are three main results. First, small- and medium-sized enterprises (SMEs) exhibit a much stronger reliance on ‘monetary patents’ than large companies and nearly half of the SMEs in the sample patent for monetary reasons. Second, SMEs tend to use their patents more actively than large firms. Third, smaller companies generally have a higher proportion of their portfolio that is licensed, but the licensing rate is significantly higher in the USA. An American SME is twice as likely as a European SME to have a high share of its portfolio that is actually licensed, witnessing a fragmented market for technology in Europe.
TL;DR: This paper used a large international dataset that includes respondents from 32 European countries, three Asian countries, and the United States, and found that cross-country gender differences are largest in the first and final transitions of the entrepreneurial process.
Abstract: Gender differences at five levels of entrepreneurial engagement are explained using country effects while controlling for individual-level variables. We distinguish between individuals who have never considered starting up a business, those who are thinking about it, and nascent, young, and established entrepreneurs. We use a large international dataset that includes respondents from 32 European countries, three Asian countries, and the United States. Findings show that cross-country gender differences are largest in the first and final transitions of the entrepreneurial process. In particular, some European transition economies are characterized by relatively low propensities of women to convert start-up considerations into start-up activities and low survival rates of businesses started by women.
TL;DR: In this paper, the authors explore the impact of a series of factors, including creativity, intellectual property rights activities, new business formation, and the provision of amenities, on economic growth for 103 Italian provinces over the period spanning 2001 to 2006.
Abstract: In this article we explore the impact of a series of factors, including creativity, intellectual property rights activities, new business formation, and the provision of amenities, on economic growth for 103 Italian provinces over the period spanning 2001 to 2006. Provincial growth rates are measured in terms of employment growth and value-added growth. The findings reveal that an increase in the number of firms active in the creative industries and net entry have a positive effect on regional employment growth. The share of legal immigrants is also found to positively impact employment growth. A high number of university faculties is found to lead to less employment growth, whereas trademarks, patents, cultural amenities, and industrial districts have no significant effect. Value-added growth is for a large part determined by employment growth, but no additional productivity-enhancing effects of the factors discussed are found.