New Papers in Entrepreneurship

1. Positioning firms along the capabilities ladder
Coad, Alex; Mathew, Nanditha; Pugliese, Emanuele
2. Mobile money adoption and entrepreneurs’ access to trade credit in the
informal sector
Tetteh, Godsway Korku; Goedhuys, Micheline; Konte, Maty; Mohnen, Pierre
3. An Integrative Framework for Formal and Informal Entrepreneurship
Research in Africa
Richard Adu-Gyamfi; John Kuada; Simplice A. Asongu
4. Merchants, proto-firms, and the German industrialization: the
commercial determinants of nineteenth century town growth
Greif, Gavin
5. The Merits of Project-Based Learning to Foster Entrepreneurship
Education
Adri Du Toit
6. Peaceful Entry: Entrepreneurship Dynamics During Colombia’s Peace
Agreement
Bernal, C; Ortiz, M; Prem, M; Vargas, J. F
7. International ownership and SMEs in Middle Eastern and African economies
Baliamoune-Lutz, Mina; Basuony, Mohamed A. K.; Lutz, Stefan; Mohamed, Ehab
K. A.
8. THE RELATIONSHIP OF TECHNOLOGICAL AND ORGANIZATIONAL INNOVATION WITH
FIRM PERFORMANCE: OPENING THE BLACK BOX OF DYNAMIC COMPLEMENTARITIES
Priit Vahter; Maaja Vadi
9. Unternehmensnachfolgen in Deutschland 2022 bis 2026
Fels, Markus; Suprinoviéc, Olga; Schlömer-Laufen, Nadine; Kay, Rosemarie

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1. Positioning firms along the capabilities ladder
Coad, Alex (Waseda Business School); Mathew, Nanditha (UNU-MERIT,
Maastricht University); Pugliese, Emanuele (European Commission, Joint
Research Centre (JRC))
We develop and apply a novel methodology for quantifying the capability
development of firms, and putting these capabilities (and hence also the
firms) in a hierarchy, that we refer to as their position on the capabilities
ladder. Our nestedness algorithm, inspired by biology and network science,
defines a capability as complex if it is performed by only a few firms at the
upper rungs of the ladder. We analyze balance sheet and innovation data of
almost 40,000 Indian firms for the time period 1988-2015, and observe
significant nestedness. Lower rungs of the capabilities ladder correspond to
basic managerial and production capabilities. Mid-level rungs correspond to
internationalization and acquiring absorptive capacity. Higher level rungs
are more related to M&A and innovation. ICT capabilities have become more
fundamental lower-level rungs on the capabilities ladder in recent years. We
find that capability ranking can explain future growth patterns and survival
probability of firms, summing up in one number their future potential
trajectories.
JEL: L2 D2 O12
Keywords: Capabilities, Competences, Complexity, Balance sheet data,
Resources
Date: 2021–08–13
URL: http://d.repec.org/n?u=RePEc:unm:unumer:2021031&r=&r=ent

2. Mobile money adoption and entrepreneurs’ access to trade credit in the
informal sector
Tetteh, Godsway Korku (UNU-MERIT, Maastricht University); Goedhuys,
Micheline (UNU-MERIT, Maastricht University); Konte, Maty (UNU-MERIT,
Maastricht University, and Barnard College, Columbia University); Mohnen,
Pierre (UNU-MERIT, Maastricht University)
Despite the contribution of previous studies to unravel the implications of
mobile money in the developing world, the effect of this innovation on an
important source of external finance, trade credit, has not been properly
accounted for particularly in the informal sector. Using the 2016 FinAccess
Household Survey, we investigate the relationship between mobile money
adoption and the probability to receive goods and services on credit from
suppliers based on a sample of entrepreneurs who operate informal businesses.
We further explore the effect of mobile money adoption on the likelihood to
offer goods and services on credit to customers. Our estimations suggest that
entrepreneurs with mobile money are more likely to receive goods and
sesrvices on credit from suppliers. We also find a positive and significant
relationship between mobile money adoption and the likelihood to offer goods
and services on credit to customers. The evidence supports the promotion of
mobile money adoption among entrepreneurs in the informal sector to
facilitate access to credit.
JEL: D14 G21 L26 O16 O33
Keywords: Entrepreneurship, Financial Innovation, Mobile Money, Trade Credit
Date: 2021–11–17
URL: http://d.repec.org/n?u=RePEc:unm:unumer:2021043&r=&r=ent

3. An Integrative Framework for Formal and Informal Entrepreneurship
Research in Africa
Richard Adu-Gyamfi (Research Africa Network, Botswana); John Kuada (Aalborg
University, Denmark); Simplice A. Asongu (Yaoundé, Cameroon)
It is a well-established practice of many Sub-Sahara African (SSA)
governments to aid entrepreneurs within both the formal and informal sectors
in order to enhance their performance and growth. Unfortunately, there is no
agreed method by which governments can differentiate between entrepreneurs
and target them with the appropriate promotion policies. Thus, despite the
good intentions, entrepreneurship policy initiatives have been incorrectly
targeted, poorly implemented and without the desired results, since different
entrepreneurs may require different forms of assistance. Some scholars have
suggested that without a context-specific classificatory guide, policymakers
are unlikely to be accurate in their assessment of the growth capabilities of
prospective candidates for specific promotion initiatives and this can
explain some of the policy failures. This observation has motivated the
present paper. Our objective is to provide a framework that helps identify
the different contextual dimensions influencing formal and informal
enterprise creation processes in SSA.
Keywords: entrepreneurship; formal; informal; Africa
Date: 2022–01
URL: http://d.repec.org/n?u=RePEc:exs:wpaper:22/015&r=&r=ent

4. Merchants, proto-firms, and the German industrialization: the
commercial determinants of nineteenth century town growth
Greif, Gavin
The role of merchants in shaping the German industrialization is often
acknowledged, yet scarcely researched. A small number of case-studies of
merchant families and individual towns have shown the significance of
merchants as capital providers, industrial entrepreneurs, and political
actors, yet no supra-local study into the wider significance of this social
group for the German economy exists. This dissertation introduces a new
source, a business directory from 1798, to construct micro-data on 6099
individual merchant and manufacturing enterprises across 56 towns in Germany.
The resulting dataset is the earliest supraregional evidence on the spatial
variation of urban merchant communities in Germany to date. Furthermore, this
paper provides a detailed overview of the types of eighteenth-century
merchants and analyses under what exact circumstances merchants became
industrial entrepreneurs. Using multivariate OLS regressions, it finds a
strong association between a greater share of proto-firms in a town in 1798
and its growth rates across the nineteenth century. The findings point to a
hitherto overlooked link between the qualitative structure of late eighteenth
century merchant activity, the elasticity of supply of early industrial
entrepreneurship, and the spatial variation of urban growth experiences in
nineteenth century Germany
JEL: N14
Date: 2022–01
URL: http://d.repec.org/n?u=RePEc:ehl:lserod:113346&r=&r=ent

5. The Merits of Project-Based Learning to Foster Entrepreneurship
Education
Adri Du Toit (North-West University, South Africa)
Entrepreneurship education affords valuable learning to prepare learners for
the world of work, including the potential to reduce youth unemployment.
South Africa has one of the highest youth unemployment rates globally, making
it imperative to develop and expand entrepreneurship education in its school
curriculum. The problem that needed investigation, was how such
entrepreneurship education needed to be constructed in projects to benefit
learners optimally. Literature indicates that education through
entrepreneurship — often scaffolded using project-based learning — is
preferred above other approaches. Consumer Studies was identified as the only
subject in the South African school curriculum that included significant
entrepreneurship education, in the form of an entrepreneurship project. The
purpose of the current study was therefore to analyze and evaluate that
project for its inclusion of project-based learning principles, to determine
its strengths and areas for improvement. The intended aim for the research
was to develop recommendations to improve the scaffolding of the project to
enhance its focus of education through entrepreneurship. The findings of this
research contribute to a better understanding of how entrepreneurship
education should be scaffolded and implemented into existing subjects. The
significance of the research includes that these findings can be used to
inform the development of similar projects in other South African school
subjects, consequently contributing to expanding effective entrepreneurship
education. In the long term, more learners will then be able to benefit from
the valuable learning associated with entrepreneurship education, which
includes the potential to reduce youth unemployment in this country.
Keywords: entrepreneurship education, principles, project-based learning,
school curriculum, youth unemployment
Date: 2021–06
URL: http://d.repec.org/n?u=RePEc:smo:lpaper:0046&r=&r=ent

6. Peaceful Entry: Entrepreneurship Dynamics During Colombia’s Peace
Agreement
Bernal, C; Ortiz, M; Prem, M; Vargas, J. F
While there is a large literature on how conflict affects entrepreneurship
and private investment, much less is known about how the end of a conflict
affects businesses and firms’ creation. A priory, the direction of the
effect is not obvious, as conflicts bequest poverty traps and inequality that
reduce the returns of investment, and the territorial vacuum of power that is
inherent to most post-conflict situations may trigger new violent cycles.
Studying Colombia’s recent peace agreement and using a
difference-in-differences empirical strategy, we document that dynamics of
entrepreneurship in traditionally violent areas closely mapped the politics
that surrounded the peace agreement. When the agreement was imminent after a
5-decade conflict and violence had plummeted, local investors from all
economic sectors established new firms and created more jobs. Instead, when
the agreement was rejected by a tiny vote margin in a referendum and the
party that promoted this rejection raised to power, the rate of firms’
creation rapidly reversed.
JEL: D74 D22
Keywords: Firm entry, Conflict, Peace agreement, Colombia
Date: 2022–01–20
URL: http://d.repec.org/n?u=RePEc:col:000092:019938&r=&r=ent

7. International ownership and SMEs in Middle Eastern and African economies
Baliamoune-Lutz, Mina; Basuony, Mohamed A. K.; Lutz, Stefan; Mohamed, Ehab
K. A.
Empirical evidence suggests that international ownership of local firms
supports firm performance and growth through various channels such as
financing, technology transfer, and improved access to international markets.
This is particularly true for small and medium-sized enterprises (SMEs) that
otherwise may lack access to a variety of vital resources. At the same time
small and medium-sized enterprise (SME) formation may promote economic
development. The relationship between firm performance and international
ownership has been well explored for firms in developed economies but this is
not the case for firms – including SMEs – in Africa and the Middle East.
Largely due to lack of relevant cross-country financial data, existing
literature on African and Middle-Eastern firms has presented survey-based
evidence on firm performance while evidence based on detailed financial
information remains lacking. The present paper aims at filling this research
gap. We identify African and Middle-Eastern SMEs operating in the formal
sector and examine the impact of ownership structure on firm performance. We
use cross-sectional financial data covering about 25,500 companies –
including about 30% SMEs – in 69 African and Middle-Eastern countries for the
years 2006 to 2015. Our results indicate that international ownership has
significant positive association with firm performance. For
internationally-owned SMEs this appears to be true despite lower levels of
equity and debt capital, implying that internationally-owned firms use
international resources – other than capital – more efficiently!
Date: 2022
URL: http://d.repec.org/n?u=RePEc:zbw:fhfwps:22&r=&r=ent

8. THE RELATIONSHIP OF TECHNOLOGICAL AND ORGANIZATIONAL INNOVATION WITH
FIRM PERFORMANCE: OPENING THE BLACK BOX OF DYNAMIC COMPLEMENTARITIES
Priit Vahter; Maaja Vadi
This paper explores the dynamic nature of complementarities between
technological and organizational innovation at firms. Using Spanish firm
level panel data (PITEC) over period 2008-2016, it investigates how the
formation, keeping and ending of the joint adoption of these two core types
of innovation is associated with firm performance. In the case of the general
static test of complementarities we find no evidence of complementarities.
However, once we focus on the analysis of within-firm changes in the
complementarity bundle of innovation types, we observe clear evidence that
some sequential as well as simultaneous strategy switches towards combining
technological and organizational novelties are associated with significant
performance premia at firms. Our findings point out the key role of
technological innovation in these complementarities. We find evidence of
sequential complementarity only when organizational innovation is added to
the already existing technological innovation at the firm, not when
organizational innovation is added as first component before technological
innovation. In the case of dissolving the complementarity bundle of
innovation types, the key disadvantage for the firm is related to dropping
the technological innovation. Giving up only organizational innovation while
keeping the technological innovation appears to have no negative effect, on
average, on firm performance.
Keywords: technological innovation, organizational innovation,
complementarities, sequential complementarity
Date: 2022
URL: http://d.repec.org/n?u=RePEc:mtk:febawb:138&r=&r=ent

9. Unternehmensnachfolgen in Deutschland 2022 bis 2026
Fels, Markus; Suprinoviéc, Olga; Schlömer-Laufen, Nadine; Kay, Rosemarie
Wegen fehlender amtlicher Statistiken schätzt das IfM Bonn seit Mitte der
1990er Jahre die Anzahl der Unternehmen in Deutschland, die vor der Übergabe
stehen. Die vorliegende Schätzung kommt zum Ergebnis, dass im Zeitraum 2022
bis 2026 etwa 190.000 Unternehmen zur Übergabe anstehen. Die höchste Anzahl
an Übergaben findet sich in der Branche der Unternehmensbezogenen
Dienstleistungen sowie unter den Unternehmen der Größenklasse 500.000 bis 1
Mio. Euro Jahresumsatz. Überdurchschnittlich viele Übergaben (gemessen am
Unternehmensbestand) werden für Bremen und Niedersachsen vorausberechnet. Von
der Corona-Pandemie erwarten wir nach derzeitigem Stand keine starken
Auswirkungen auf die Zahl der Unternehmensnachfolgen. Von besonderer
Bedeutung für das Nachfolgegeschehen ist hingegen der demografische Wandel.
JEL: L19 M19 M29
Keywords:
Unternehmensübertragungen,Familienunternehmen,Deutschland,Business
transfers,family businesses,Germany
Date: 2021
URL: http://d.repec.org/n?u=RePEc:zbw:ifmduf:27&r=&r=ent