Entrepreneurial Productivity Research Articles

Entrepreneurial risk shocks and financial acceleration asymmetry in a two-country DSGE model

In a two-country DSGE model tailored to the U.S. and China, we examine the macroeconomic impacts of financial frictions and entrepreneurial risk shocks, which characterize the cross-sectional dispersion of idiosyncratic entrepreneurial productivity. We identify the transmission channels for significant financial acceleration, analyze financial acceleration asymmetry, and investigate international financial acceleration. Our main findings are as follows. The estimated monitoring cost for China is significantly larger than that for the U.S. Output, investment, and loans exhibit significant financial acceleration effects triggered by shocks to domestic entrepreneurial risk, investment, and technology. In comparison with the U.S., China’s output and investment display larger financial acceleration effects induced by domestic entrepreneurial risk shocks. The financial acceleration effects of foreign entrepreneurial risk shocks on the domestic economy are insignificant. Domestic financial acceleration effects on output and investment induced by shocks to investment and technology are significantly more pronounced during the U.S.-China trade conflict periods. Domestic entrepreneurial risk shocks, which contribute substantially to economic downturns, explain about 11.2% and 12.3% of forecast error variances in output of the U.S. and China, respectively.

Improving Business Productivity Performance Through Entrepreneurship Training And Entrepreneurship Self - Efficacy

This study was conducted to identify entrepreneurial desire and entrepreneurial productivity among Semarang State Polytechnic students after post-covid-19. Respondents in this study were 100 Semarang State Polytechnic students who own businesses. This study used confirmatory factor analysis and maximum likelihood estimation in SEM (Structural Equation Modeling) from the AMOS 24.0 statistical software package (Structural Moment Analysis). The data collection technique used questionnaires with different semantic scales. The results of parameter estimation are in accordance with the hypothesis that entrepreneurial knowledge has a significant effect on business preference with a normalised coefficient estimate of 0.586 and a P-Value of ***, and entrepreneurial training has a positive effect on business preference with a normalised coefficient estimate of 0.470 and a P-Value of *** and entrepreneurial interest has a significant effect on business productivity with a normalised coefficient estimate of 1.007 and a P-Value of ***. From this study, it can be concluded that in the current post- covid-19 context, students who are engaged in the startup world need to increase their education and understanding of entrepreneurship, especially in this time of great need. There must be innovation so that they can survive and develop in a better direction along with the times.

An assessment of the challenges and opportunities in financing rural women entrepreneurship in the micro, small and medium enterprises sector in cameroon

Fundamentally, women are one of the major drivers of social and economic growth through entrepreneurship development. Their role in impacting rural entrepreneurial activities by boosting rural employment and capital are praiseworthy. Women entrepreneurs are financial assets for development. For any developing country to emerge, its rural development countryside through entrepreneurship have to be efficient in resources allocation. The dangers to achieving this at the - post-Covid-19 era are enormous considering existing rural business financing challenges. Digital financial transformation could resolve these barriers. Using a qualitative research approach,this study examines the challenges and opportunities in financing rural women businesses. It comments that, financial digitalization, banking proximity, financial inclusion, financial care services and government support system can enhance rural women entrepreneurial productivity and reduce the level of poverty.

Assessment of Training Needs on Entrepreneurship Development for NTFR Stakeholders in Gurez Valley of Kashmir

Entrepreneurship on non-timber forest resources (NTFR) is an important source of sustainable livelihoods and income diversification in the Gurez valley of Kashmir. In order to increase the efficiency of NTFR stakeholders, training is indispensable. This study attempts to assess the training needs, suitable training programme and socioeconomic profile of the NTFR stakeholders. Multistage random sampling procedure was used to select 337 households from 18 sample villages for field survey. Data were collected through personal interviews administering structured interview schedule and analysed using simple descriptive statistics. Results indicated that majority of the NTFR stakeholders were belonged to low socioeconomic status class as reflected by their household characteristics. Among the ten selected major thematic areas the ‘commercialization of NTFR’ (WMS, 3.00; priority percentage, 12.87%) was ranked 1st while ‘conservation of NTFR through JFM’ (WMS= 1.68; priority percentage, 7.21%) was ranked 10th. The short duration trainings (1-7 days) (WMS, 3.00) was ranked 1st among the delivery methods followed by the medium duration trainings (8-14 days) (WMS, 2.84; rank 2nd) and the long duration trainings (3-4 weeks) (WMS, 2.79; rank 3rd). The findings suggested that the trainings on NTFR entrepreneurship of stakeholders is the crucial intervention for livelihood diversification, socioeconomic development and forest conservation; hence, need-based trainings must be planned and imparted to the individuals for improving the entrepreneurial productivity, performance and efficiency. To achieve the desired change in the NTFR entrepreneurship, the training needs identified in this study must be given due consideration during designing the training curriculum.

Productivity Growth and Technology Gaps of the National Systems of Entrepreneurship: Is There a Convergence Pattern between Efficiency-Driven and Innovation-Driven Countries?

Entrepreneurship is an essential component to national economies, and a formidable engine of economic growth. Recognizing that success in entrepreneurship depends to a large extent on national context and local conditions our aim is to develop a framework to analyze national ecosystems and benchmark them with other countries to gain insights into the success or failure of entrepreneurial policies. This study uses a metafrontier framework with consideration to gauge the entrepreneurial ecosystem productivity across countries that operate under different technologies. Based on the metafrontier Malmquist productivity index, this paper analyzes the national entrepreneurial productivity of 30 countries over the period 2016–2018. By classifying the sample countries according to their level of economic development, we obtain that the efficiency-driven countries are the technology leaders in entrepreneurship, and innovation-driven countries are the followers. During the study period, the efficiency-driven countries have exhibited productivity growth of 0.5% which is mainly attributed by technological progress. Whereas, the innovation-driven countries have deteriorated their productivity by 0.7% which caused by their technological regress. Meanwhile the innovation-driven countries cached-up the world best practice technology at a faster rate than the efficiency-driven countries which indicate there was some convergence between the two groups over time.

Skill-biased entrepreneurial decline

The U.S. is undergoing a long-term decline in entrepreneurship. We show that this slow-down in entrepreneurship has been more pronounced for skilled individuals – those with a college degree. We document new facts on the skill-biased nature of declining entrepreneurship and propose that it is a response to the rising worker skill premium observed over the same period. In support of this, we find that workers' earnings grew faster than entrepreneurs', particularly for skilled individuals, discouraging the pursuit of entrepreneurship. To quantify the impact of the skill premium on entrepreneurship, we develop a model of occupational choice with worker heterogeneity. In the model, a rising skill premium – driven by skill-biased technological change – contributes little in lowering entrepreneurship. Instead, around 70% of the observed decline in entrepreneurship is driven by skill-neutral technological change and a rising share of college graduates. A rise in the skill premium interacts with these forces to generate the skill-biased decline, and in doing so, shifts the composition of entrepreneurs towards the unskilled, lowering average entrepreneurial productivity. Our findings suggest an integral role for the changing income structure of workers in driving the broader decline in business dynamism in the U.S.

Entrepreneurial orientation on business performance for small, micro and medium enterprises in the telecommunications industry: A management perspective

Entrepreneurship is playing a mediating role in ensuring that the impact of climate and technological changes are regulated and made adaptable and adoptable for humanity through entrepreneurial innovations. In this article, a critical discourse analysis is conducted to establish the facts regarding the influential relationships affecting entrepreneurial orientation (EO) and business productivity for small, micro and medium enterprises (SMMEs) in the information and communications industry in Zimbabwe. An exploratory quantitative methodology using a positivist approach was applied to reinforce the independence of the researcher and to eliminate bias in the exploration of the orientations. Data were collected from 308 entrepreneurial entities located in different parts of the Harare urban zones, which were randomly sampled. One of the major findings of this research points conspicuously to the inevitability of EOs. Accordingly, it is recommended that enterprise regulators, legislators and the state should emphasise the inclusion of EO in the existing body of knowledge, and support telecommunications business practitioners to make significant decisions on strategic risk management when conducting strategic formulation and implementation.

Adaptasi Kebiasaan Baru Selama Pandemic melalui Upaya Peningkatan Produktifitas Wirausaha Mandiri Menuju Ekonomi Berkeadilan

Abstrak-This study aims to determine the efforts to increase the productivity of independent entrepreneurs towards a just economy as a form of adaptation during a pandemic. The sample consists of students who already have a business or who do not have a business as many as 137 students. The data was collected through a mail survey (google forms) and analyzed by descriptive method to find out the description of the respondents to the problem under study. The results of this study indicate that efforts to increase entrepreneurial productivity through improving the characteristics of superior entrepreneurs, improving marketing strategies and improving business performance are a new form of adaptation during the pandemic in order to realize independent entrepreneurship towards a just economy. The results of this study also have two implementations: (1) theoretical implementation for the results of this study is to realize independent entrepreneurship towards a just economy, then the application of competitive strategies in the form of Cost Leadership Strategy, Differentiation Strategy, Innovation Strategy ( Innovation Strategy), Growth Strategy, Alliance Strategy, (2) managerial implementation for the results of this study is an effort to increase entrepreneurial productivity through improving the characteristics of superior entrepreneurs, improving marketing strategies and improving business performance as a form of adaptation. only during the pandemic to realize independent entrepreneurship towards a just economy. This provides motivation to survive in the midst of high competition with good ICT mastery and expand overseas Keywords: Adapting to New Habits, Productivity, Self-Employment

Skill-Biased Entrepreneurial Decline

The U.S. is undergoing a long-term decline in entrepreneurship. We show that this slowdown in entrepreneurship has been more pronounced for skilled individuals – those with at least a college degree. We propose that this skill-biased decline is a response to the rise in worker skill premium that occurred over the same period. In support of this, we document that earnings for workers grew faster than entrepreneurs, particularly for skilled individuals, discouraging the pursuit of entrepreneurship relative to wage employment. To quantify the impact of the skill premium on entrepreneurship, we develop a model of occupational choice that features worker heterogeneity. In the model, an increase in the skill premium – driven by skill-biased technological change – contributes little in lowering entrepreneurship. Instead, around 70% of the observed decline in entrepreneurship is driven by skill-neutral technological change and a rising share of college graduates. The rising skill premium interacts with these forces and fully explains the skill-biased nature of the decline. Further, by shifting the composition of entrepreneurs towards relatively low productivity entrepreneurs, an increase in the skill premium lowers average entrepreneurial productivity. This suggests an integral role for the changing income structure of workers in driving the broader decline in business dynamism in the U.S.

Effects of collective intelligence and self-reference consumption on entrepreneurial productivity and quality in niche markets

This study analyzes the impact of customer segmentation, customer acquisition and retention, and customer behavior on entrepreneurial productivity and quality of the startup enterprises in Mexico. These enterprises tend to gain higher market share by implementing customer-centric approach through various variables such as demand stimulation, promoting their brand in ambidextrous market segments, product referrals, and cognitive variables such as psychodynamics, anthropomorphic attitude, and repeat buying behavior. Information gathered from 308 respondents was admitted to data analysis process. In all, information from 88% of the respondents was considered for data analysis. In view of the findings discussed in the study, it can be stated that the customer-centric approach of startup enterprises leads to anthropomorphic orientation among customers who are oriented toward technology and innovation. Startup enterprises encourage these customers to actively interact on digital platforms and inter-personal forums to promote a positive word-of-mouth leading to an increase in the purchase intentions by the potential customers.

MISALLOCATION OF RESOURCES, TOTAL FACTOR PRODUCTIVITY, AND THE CLEANSING HYPOTHESIS

Imperfections in the credit market can hamper the flow of factors from less productive to more productive firms and result in a lower aggregate total factor productivity (TFP). Depth of such misallocation will depend on per capita income, the level of imperfections in the credit market, and the distribution of entrepreneurial productivity. Under some parameter configurations, we find that per capita income and TFP may affect each other so that an economic boom may cause higher resource misallocation, lower TFP, and economic recession. At the same time, an economic recession may have a “cleansing effect” on TFP leading to a lower resource misallocation, higher TFP, and economic boom. In other words, economic success may breed the failure and the failure can become a precondition for success so that the boom-bust cycles in resource misallocation, TFP, and per capita income may become endogenous.

Entrepreneurial Productivity of Single and Non Single Women of Kathmandu Metropolitan City

Despite that women’s socio-economic status is poor, there involvement in entrepreneurial development is low. Data shows that women’s participation in income generating activities and their access to property is quite unsatisfactory. Globally, only eight percent small scale-manufacturing units are owned and operated by women. Compared to the universal statistics, Nepal’s scenario is different because the country owns more than six lakhs small scale manufacturing units. In these units women’s participation is relatively higher. Certain ethnic community, especially the Newar and Tibeto–Burman highland groups such as the Sherpa, Gurung and Thakali, are known to have a long tradition of women being involved in small business enterprises. However, women’s ownership of these enterprises is extremely low. This study aims to examine the entrepreneurial status of single and non-single women who are engaged in entrepreneurial activities in Kathmandu Metropolitan city. It also analyzes the entrepreneurial productivity of the enterprises run by the women. In order to discuss the objectives, primary data was collected from field work. This study found that single women’s involvement in the small businesses was encouraging. The entrepreneurial productivity of the enterprises run by single-women was higher than non-single women.

Dynamic Adverse Selection and Belief Update in Credit Markets

We develop a dynamic model of debt contracts with adverse selection. Entrepreneurs borrow investment goods from lenders to run businesses whose returns depend on entrepreneurial productivity and common productivity. Entrepreneurial productivity is the entrepreneur's private information, and lenders construct beliefs about entrepreneurial productivity based on the entrepreneur's business operation history, common productivity history, and the terms of the contract. The model provides insights into the dynamic and cross-sectional relations between firm age and credit risk, persistency of the effects of a productivity shock, cyclical asymmetry of the business cycle, slow recovery after a crisis, and constructive and destructive economic downturns.

Social Capital, Trust and Entrepreneurial Productivity

With an incomplete panel data from 63 countries over 25 years this paper finds that the average number of employees per entrepreneur increases with the countries' levels of social capital. This evidence is in line with predictions from occupational choice models, where the equilibrium average size of firms increases with lower internal costs of growth, when social capital supported trust reduces these costs facilitating the delegation of decision power in firms. We also find that the influence of social capital in self‐employed rates differs if the self‐employed have employees or not so entrepreneurs should be treated as a heterogeneous group.

The Roles of Entrepreneurship on Regional Economic Growth in Indonesia

New endogenous growth theory introduces how investment in knowledge and human capital contribute to economic growth through spillover of knowledge. However, the theory has limitation because it does not explain the cause and the mechanism of how knowledge spillover occurs. Accordingly, by employing panel data of 33 provinces in Indonesia over the period of 2008–2013 and fixed effect method, this paper aims to investigate the roles of entrepreneurship on regional economic growth in Indonesia. The study applies different approaches to measure the entrepreneurial activities based on GEM categories, namely, self-employment rate and business ownership rate as indicators of entrepreneurial productivity. Furthermore, a more specific analysis is conducted by identifying entrepreneurial activities into formal sector and informal sector. The estimation result indicates that entrepreneurial productivity plays a significant role on regional economic growth in Indonesia. Moreover, entrepreneurial activities in different sectors give different contributions on the economic growth.

A comparative study of net entrepreneurial productivity in developed and post-transition economies

The paper develops net entrepreneurial productivity (NEP) as a complex latent construct of second order composed of productive, unproductive and destructive entrepreneurial activity. Its parameters were estimated using the partial least squares structural equation modeling method in the selected 15 developed and 7 post-transition economies for the average values in the period 2006-2013. The results unveil the direct and indirect effects between entrepreneurial activities, and between entrepreneurial activities and NEP, as well as that the level of NEP and productive entrepreneurial activity in developed economies is at a higher level compared with post-transition economies. The results suggest that for NEP and productive entrepreneurship to take place, regardless of the group of economies considered, an effective institutional environment that supports human capital development, fair competition and transparency should be established and maintained before developing more specific entrepreneurial programs and policies.

All entrepreneurial productivity increases are not created equal

We examine the impact of productivity increases in a setting where wealth-constrained entrepreneurs are privately informed about whether their project will succeed with high (pH) or low (pL) probability. Not surprisingly, many productivity increases (e.g., an increase in pH) generate gains for entrepreneurs and/or venture capitalists. However, some productivity increases (e.g., an increase in pL) can generate widespread losses. Furthermore, entrepreneurs with low-productivity projects can benefit more from policies that increase the productivity of high-quality projects than from policies that increase their own productivity. Therefore, the design of policy to enhance welfare in the entrepreneurial sector can entail important subtleties.

Gender and constraints to entrepreneurship in Africa: New evidence from Swaziland

This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited.

Gender and Constraints to Entrepreneurship in Africa: New Evidence from Swaziland

This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited.

Self-insurance vs. self-financing: A welfare analysis of the persistence of shocks

Abstract We study the welfare cost of market incompleteness in a generalized Bewley model where idiosyncratic risk takes the form of entrepreneurial productivity shocks. Market incompleteness in our framework has two dimensions. First, in the Bewley tradition, only a limited set of instruments for consumption smoothing is available. Second, entrepreneursʼ capital rental is subject to collateral constraints. As is well known, it is harder to self-insure against more persistent shocks, and the welfare cost of missing consumption insurance increases with shock persistence. On the other hand, with collateral constraints, an increase in shock persistence leads to better allocation of production factors through entrepreneursʼ self-financing, and the welfare cost of imperfect capital rental markets decreases with shock persistence. The overall welfare cost of market incompleteness can be increasing, decreasing, or even non-monotone in shock persistence, depending on the relative strengths of its two components—the cost of missing insurance and the cost of imperfect capital markets.