Entrepreneurial Incentives Research Articles

Entrepreneurial Incentives Among University Students in Georgia and Portugal

Abstract The study of entrepreneurial incentives among students is a highly relevant issue because it is of utmost importance for the economic development of the country to cultivate generations of entrepreneurs who will create high-value technological startups and contribute to the transformation of Georgia into a technological hub, a goal that we have been calling a priority for years. In recent years, there has been a tendency among young adults to show entrepreneurial initiative, although this is modest compared to what could truly change the image of the country. Funds and angel investors have emerged in the country, ready to invest in interesting business projects with global potential. In this process, the role of universities could be invaluable. The primary obstacle that Georgia’s and Portugal’s education systems are still facing is incorporating entrepreneurial skills into formal and vocational education. Scant is the rundown of colleges that have coordinated this new test in their educational programs. The region is characterized by precarious and unsystematic skill-based professional schooling, reflecting inadequate funding initiatives lacking sustainability. The article studies the factors influencing students’ entrepreneurial incentives in Georgia and Portugal, identifies the interests and opportunities of Georgian and Portuguese university students in starting a business, and discusses the best foreign practices for encouraging students’ entrepreneurial activity. The article reports a study, based on a survey, which identified the main facilitating and hindering factors that influence students’ entrepreneurial incentives. The paper also analyzes the environment supporting students’ entrepreneurial activities in Georgia and Portugal, discusses the possibilities of finding financing, and identifies the main obstacles that students face when starting a business.

해양수산과학기술 창업활성화를 위한 기술지주회사 모델 연구

This study aims to develop a technology holding company model to activate entrepreneurship and facilitate technology commercialization in the field of marine and fisheries science and technology. By comprehensively analyzing the current status and policies of public technology entrepreneurship in Korea, the growth potential of the marine and fisheries market, and the current situation and challenges faced by marine and fisheries science and technology, this study seeks to explore concrete measures to promote the commercialization of public technology and entrepreneurship in this field. In particular, in the marine and fisheries field, technology commercialization and entrepreneurship of research and development results are insufficient, so it is analyzed that revitalization of entrepreneurship through the technology holding company model is necessary. Based on Isenberg's startup ecosystem model, this study analyzed the current status of technology commercialization and startup factors through in-depth interviews and surveys with researchers at the Korea Institute of Ocean Science and Technology, and analyzed the feasibility of establishing a technology holding company. The research results suggest that an integrated approach is needed in which six major elements of policy, market, human capital, support, funding, and culture interact to revitalize marine and fisheries science and technology startups. In order to activate the interaction of the six major components, the establishment of a technology holding company such as 'KIOST Holdings' is necessary. Government and related agencies need to expand R&D support, provide incentives for entrepreneurship and technology commercialization, and establish legal and financial support systems for technology holding companies and research-based startups. Such support will lay the foundation for the sustainable development and global competitiveness of the marine and fisheries science and technology sector. The introduction of a technology holding company model for activating entrepreneurship in marine and fisheries science and technology is expected to play a crucial role in the sustainable development and enhancement of global competitiveness in the marine industry. This study suggests that the establishment of technology holding companies like 'KIOST Holdings' could serve as a foundation for implementing these strategies, marking an important step towards overcoming the limitations of Korean marine and fisheries science and technology and activating entrepreneurship and technology commercialization in this sector.

Are Highly Intelligent People More Likely to Tolerate Risk in China? Evidence from China Family Panel Studies

Understanding the correlation between cognitive ability and risk preferences is crucial for promoting technological progress and innovation in China. This study aims to investigate this relationship using survey data from the China Family Panel Studies. The results reveal a significant positive correlation between cognitive ability and risk tolerance. These findings have important implications for understanding the relationship between cognitive ability and risk preferences, as well as for informing policy decisions in areas such as financial investments and entrepreneurship incentives.

A Study on Youth Unemployment in India: Causes, Consequences and Policy Responses

Unemployment among young people in India is a significant socio-economic problem with wide-ranging implications. This study investigates the various factors, such as educational mismatches, economic transformations, and demographic pressures, that contribute to the high levels of unemployment among young people in India. Youth unemployment has significant ramifications, affecting the overall welfare of individuals, the stability of the economy, and the cohesion of society. The severe consequences include heightened dependency ratios, mental health disorders, and the possibility of social upheaval. The paper also examines other policy measures taken to alleviate teenage unemployment, including skill enhancement programmes, incentives for entrepreneurship, and active labour market regulations. The study seeks to analyse these interventions in order to uncover efficacious tactics and optimal approaches to tackle youth unemployment in India. It attempts to provide recommendations to policymakers for promoting a labour market that is more inclusive and dynamic.

Pengelolaan Pendidikan Dan Kewirausahaan Dalam Pendidikan Agama Islam

Islamic Religious Education is considered the main pillar in shaping the character of Muslims; however, in the era of globalization, entrepreneurship has become essential. The integration of entrepreneurship enables students to connect religious values with the real world, develop self-potential, and become agents of positive change. Inclusive management of Islamic religious education towards entrepreneurship is not only a necessity but also a challenge to create innovative curricula. This study employs a qualitative descriptive method through a literature review approach to examine the management of education and entrepreneurship in Islamic religious education. The goal of Islamic Religious Education is to shape individuals with profound knowledge of Islamic teachings, capable of applying them in daily life, fostering love and obedience to Allah SWT, imparting Islamic values and ethics, and encouraging critical, analytical skills, and entrepreneurial spirit. Entrepreneurship in Islamic religious education aims to mold a younger generation of Muslims who can become successful entrepreneurs and are morally and ethically responsible. The integration of entrepreneurship involves teaching entrepreneurial values and principles, as well as developing entrepreneurial skills such as creativity and management. A conducive environment for entrepreneurship, including the empowerment of micro, small, and medium-sized enterprises (UMKM), training, mentoring, access to financing, and incentives for entrepreneurs, is deemed essential. By integrating entrepreneurship into Islamic religious education, it is expected that students can prepare themselves to face the challenges of the job market and contribute to the welfare of society.

Contextualizing entrepreneurship for Africa's post-Covid-19 recovery and growth

Entrepreneurship plays an important role in employment, income generation, food security, empowerment, job creation, and productivity growth in Africa. However, many businesses in Africa are heavily dependent on foreign direct investment and channels both for inputs and markets and lack economic resilience and diversification. Consequently, the complete lockdown and frontier closure due to the COVID-19 pandemic resulted in a deteriorating impact on its formal and informal economic activities. The purpose of the paper is therefore to examine the challenges and responses of the African economy to COVID-19 and if the contextualized entrepreneurship approach is important in the post-COVID recovery and growth in Africa. The paper used secondary data collected through a systematic and contextual review of the latest publications and reports. The findings show that Africa is challenged with a lack of managerial skills, infrastructure, capital markets, access to finance, and incentives for entrepreneurship. Moreover, a realistic, contextualized, and sustainable trajectory recovery and development plan is critical to tackle the scale and depth of the COVID-19 challenges in Africa. In this regard, this paper provides important recommendations for African-oriented entrepreneurship development pathways and policies. This will have important implications for the post-COVID-19 recovery and the growth of entrepreneurship in Africa.

Long-term effects of extractive and inclusive institutions on entrepreneurship persistence in Russian regions

Some institutions can restrict or stimulate the business activity, which affects long­term economic growth. To assess this influence on regional level, we have collected and processed historical data on the distribution of serfs, the creation of universities, and business activity over more than a century. By business activity, we mean various direct and indirect assessments of the involvement of the population in entrepreneurial activity: merchants, NEPmen, cooperatives, small businesses, etc. Although the geography of business activity has constantly changed, we can identify relatively stable centers (Moscow, St. Petersburg, the south of the Far Eastern Russia) and the periphery (some regions of the North Caucasus, the Central Black Earth and the Volga regions). Econometric calculations confirm the existence of a relationship between the current density of small businesses in the Russian regions and the density of cooperatives in the late Soviet period; the relationship with the density of retail enterprises disappears by the 1970s as the planned economy strengthens. But the relationship with the merchant class is ambiguous: only in some regions did the entrepreneurial culture manage to survive the Soviet period. We distinguish three main channels of influence of the historical level of business activity on the modern one: geographical, functional, and socio­cultural. According to the calculations, the earlier emergence of universities in the regions contributed to the spread of business culture and could stimulate the emergence of more inclusive institutions, but serfdom, as an extractive institution, on the contrary, could limit incentives for entrepreneurship. Even after a radical change in the political and economic regime, the influence of extractive institutions on business activity may persist, and inclusive institutions take a significant amount of time to take root.

Analysis on the Effectiveness and Mechanisms of Public Policies to Promote Innovation of High-Tech Startups in Makerspaces

In the context of digital transformation and the rapid development of artificial intelligence, corporate innovation has become increasingly important in leading industrial development and improving national competitiveness. In 2015, China launched a “mass entrepreneurship and innovation program”; in response to the policy, many makerspaces have been established, resulting in clusters of high-tech startups. High-tech startups are the pioneers in innovation development. However, there is still a lack of empirical evidence for whether these firms’ innovative activities, capabilities, and performance can be effectively stimulated by public policy. Drawing from the institutional theory and resource-based view, this paper develops a model of policy perception on innovation response. Using a sample of 500 startups located in the three representative makerspaces in China, this work verifies the effectiveness of innovation and entrepreneurship incentives on startups’ innovative activities, capabilities, and performance, and successfully identifies the mediating role of policy adaptation in the policy perception-innovative responses’ link and the moderating role of makerspace support.

LINKING ENTREPRENEURIAL INTENTIONS TO HOFSTEDE’S CULTURAL DIMENSIONS: AN ANALYSIS OF AFRICAN STUDIES

Numerous institutions have implemented various policies to encourage entrepreneurship as a means of advancing economic development. However, different persons are affected differently by educational programs and entrepreneurship incentives. This study is a review of the literature to analyse the results from various studies on the determinants of entrepreneurial intention in Africa. The determinants of entrepreneurial intention from each country were correlated with Hofstede's national cultural characteristics after an examination of a total of nineteen studies from eight African nations. For entrepreneurial education to be specifically designed to meet diversity, it was important to determine whether one's entrepreneurial aspirations are consistent with their national culture. Findings imply that entrepreneurial intentions are highly influenced by cultural factors. As a result, this study suggests that entrepreneurship education should be specifically tailored to accommodate various ranges of motives. Additionally, it was discovered that although some cultural aspects hindered entrepreneurship, others supported it. People who work in restrictive cultures typically have different drivers of entrepreneurial ambitions than those who operate in supportive cultures. Since culture is immutable, universities' only choice is to adapt their entrepreneurship teaching to different cultural contexts

ECONOMIC PRECONDITIONS FOR THE INTRODUCTION OF PUBLIC-PRIVATE PARTNERSHIP IN THE FIELD OF VOCATIONAL EDUCATION IN UKRAINE

Relevance: the study of economic preconditions for the training of qualified specialists is a necessary prerequisite for the comprehensive implementation of the national policy of public-private partnership. Purpose: to outline the economic preconditions for the introduction of public-private partnership in the field of vocational (technical) education in Ukraine. Methods: theoretical, statistical, macroeconomic, comparative and retrospective analysis, reduction of time series to uniform prices Results: the interrelation of changes in quantitative and expenditure parameters in physical and uniform prices with the definition of real economic preconditions for the introduction of public-private partnership in the field of vocational education is analyzed; the close connection of these preconditions with macroeconomic parameters of the state of the Ukrainian economy and its institutional environment is revealed; the shortcomings of the expenditure policy that caused negative trends in this field of education are outlined; the necessity of reorientation of institutional changes to the promotion of private enterprise as a priority task for creating decent preconditions for directing human capital to the development of the national economy is substantiated. Conclusions: it is proved that the paradoxical discrepancy between quantitative indicators and funding for vocational education has subjective sources related to the price factor, and objective, related to the lack of institutional incentives for entrepreneurship to establish public-private partnerships.

Presenting an open data management (ecosystem) model with developing innovative information flow approach in Iranian knowledge-based companies

PurposeThis study aimed to present a model for open-data management for developing innovative information flow in Iranian knowledge-based companies (businesses).Design/methodology/approachThe method was mixed (qualitative-quantitative) and data collection tools were interview and questionnaire. The qualitative part was done to identify the influential components in open data management (ecosystem) using the grounded theory method. A questionnaire was developed based on the results of the qualitative section and the theoretical foundations, and the quantitative section was conducted by analytical survey method and the model was extracted using factor analysis and the integration of the qualitative section.FindingsSeven categories of entrepreneurial incentives, sustainable value, innovative features, challenges and barriers, actors, business model and requirements are the main categories that should be considered in open data management (ecosystem) with all categories of research have a significant relationship with open data management.Originality/valueThe study focused on open data management from an innovation paradigm perspective and its role in developing innovative information flow. The study aimed to identify the key components of the open data ecosystem, open-data value creation, and the need to use the “open data” approach to develop data-driven and knowledge-based businesses in Iran–an emerging approach largely ignored.

РОЗВИТОК ІНВЕСТИЦІЙНОГО КЛІМАТУ В УКРАЇНІ В УМОВАХ ВІЙНИ

The article reveals key prospects for the development of the investment climate in Ukraine in wartime conditions. It was determined that the full-scale war in Ukraine is the main negative factor affecting Ukraine's investment attractiveness. The dynamics of direct and portfolio investments were considered and it was determined that the net inflow of direct foreign investments for eight months of 2022 is estimated at 47 million dollars USA. The directions for the development of the investment climate in Ukraine during the war and in the post-war period are singled out, in particular, it is envisaged to: unite the Personal Income Tax and Taxation and Establish a single rate of 25%; replace the income tax with a capital withdrawal tax; reform the tax system to create incentives for entrepreneurship and accelerate economic growth (subject to coordination with international partners in accordance with current international financial agreements in Ukraine); implement indicative planning for the implementation of the investment menu project; carry out privatization of non-strategic state assets; create conditions for insurance against the risk of war; provide real estate investment opportunities. It was determined that the state should support the development of the investment climate in Ukraine primarily through financial stimulation. To ensure this process, it is proposed to create the National Fund for Structural Transformation of the Economy. It was found that a unique electronic platform Advantage Ukraine has already been created to attract foreign investors to the Ukrainian economy. It was determined that in the future, Ukraine aims to create high-tech military-industrial parks thanks to European and world military technologies, to attract investments in the development of projects and the construction of military factories. It was established that during the war, Ukraine established itself as a legal state, demonstrating the coordinated interaction of institutions at various levels, aimed at preserving the state order and comprehensive support of all types of economic activity during this period.

Unjani Clinics: meeting the need for scale through social franchising

In this contribution to the Organization Zoo series, we discuss an organization with a unique organization design that allows for a scalable and financially sustainable approach to social impact. Unjani Clinics is a network of nurse-led clinics in South Africa, where the nonprofit (head office) organization oversees the operations of more than ninety for-profit independent primary healthcare clinics. Combining for-profit and nonprofit entities in a social franchise structure represents a unique bundle of organization design choices that together enable the organization to effectively pursue its mission. By combining entrepreneurial incentives for nurses, such as ownership rights over their clinics, with social impact-driven controls, Unjani cultivates an otherwise untapped resource—i.e., professional nurses’ entrepreneurial ambitions—to deliver on its social mission. This novel combination of entrepreneurial autonomy with formal hierarchical as well as informal controls to safeguard the social mission allows Unjani to address the tension between social and financial value creation, which often prevents social enterprises from scaling successfully.

The Model of Makerspace Development Element and Performance Analysis Based on NVivo Classification

Makerspace is an innovation and entrepreneurship service platform. Its ultimate goal is to realize value cocreation among multiple subjects. The development of Makerspace and the realization of value are closely related to the Makerspace Development Policy. With the help of NVivo/ software, we analyzed 17 Makerspace Development Policies. Through the selection of samples, statistical analysis of word frequency, and coding analysis, the 7 core elements of entrepreneurial incentives, fee reductions and exemptions, employment support, entrepreneurial environment, talent support, financial support, and service optimization are summarized to form an empirical research survey of the development policy elements of the makerspace project. The author uses the game evolution method to analyze the mechanism of the internal relationship of innovation factors, builds a model of the development factors of the makerspace, selects 52 makerspace companies to conduct a questionnaire survey, using the model to conduct empirical research on the performance of existing policies, and finally proposes a model for makerspace development.

Entrepreneurial incentives and the role of initial coin offerings

This paper examines whether initial coin offerings (ICOs) are a beneficial form of financing with desirable economic properties. We do so by examining how financing a start-up via an ICO changes the incentives of an entrepreneur to exert effort to reduce cost. An ICO can result in a better or worse alignment of the interests of the entrepreneur and the investors compared with debt and venture capital financing. Notably, an ICO can be the only form of financing that induces optimal effort, and there are projects that should not take place unless they can be financed through an ICO.

Discussion of “Entrepreneurial incentives and the role of initial coin offerings”

Discussion of “Entrepreneurial incentives and the role of initial coin offerings”

ICO versus Credit versus Venture Capital Financing under Stochastic Demand: A comment on 'Entrepreneurial Incentives and the Role of Initial Coin Offerings' by Rodney Garratt and Maarten van Oordt

The article 'Entrepreneurial Incentives and the Role of Initial Coin Offerings' by Garratt and van Oordt revisits a classical principal-agent problem in corporate finance: How do financing choices of firms and the according firm ownership structure impact effort choices of the management and therefore firm value? Garratt and Oordt extend this classic discussion by analyzing initial coin offerings (ICOs) as a startup financing instrument in contrast to classic financing instruments such as debt, (entrepreneurial) equity and venture capital. Their paper shows, depending on the firm's characteristics, ICO financing can align the entrepreneur's incentives with those of his investors better or worse, in comparison to venture capital and debt financing. Therefore, the novel ICO financing instrument is a valuable alternative to credit and venture capital also from a social perspective. I find the efficiency comparison of financing choices for entrepreneurial incentives to be a very interesting and important contribution. In this discussion, I shed light on this topic from a different angle. Garratt and van Oordt base their analysis on the simplifying assumption that demand for the platform product realizes once and for all in t=1. This allows Garratt and van Oordt to abstract from token-exchange rate risk. Here, instead, I will allow platform demand to evolve stochastically across time. Moreover, unlike in Garratt and van Oordt, I analyze the general case where not necessarily all tokens are sold in the market at every point in time. Instead, there can exist token speculation where investors hold on to tokens for a certain period of time, effectively reducing the token supply, or additional tokens can be mined by the entrepreneur, which increases the token supply, even though the latter activity might constitute a breach of contract. By allowing the token supply and product demand to fluctuate across time, the token exchange rate becomes stochastic, causing exchange rate risk to the ICO investors, the entrepreneur, and platform retailers.

Improved Framework Conditions for a More Entrepreneurial, Innovative and Sustainable EU

In the wake of the corona crisis, the European Union must regain lost ground and create more favorable conditions for inclusive and sustainable economic growth. The best way to achieve this goal is by increasing the Union’s innovativeness. This effort requires extensive and broad-based institutional reforms aimed at strengthening the incentives for entrepreneurship. Innovative entrepreneurship requires collaborations with numerous agents that provide those skills and resources that the entrepreneur is lacking: inventors, key personnel, demanding customers, and early and later-stage financiers. Based on this ecosystem perspective, we propose reforms in the following six broad areas: (i) the rule of law and property rights, ii) taxation, iii) savings and finance, iv) labor market regulations and social security, v) entry and exit barriers in product markets, and (vi) human capital for entrepreneurship. The reforms would likely strengthen Europe’s innovation capacity at a time when it is needed more than ever.

Taxation of Digital Companies: Experience of Russia and Other Countries

The article concerns the patterns of development of the tax legislation of the Russian Federation and other countries related to the taxation of companies providing digital services. Some scientific and practical issues affecting the problems of tax incentives for entrepreneurship in digital companies are analyzed. The article covers the issues of the staged transformation of Russian tax law, which occurred as a result of the so-called "tax maneuver" of the rules for taxation of IT companies, associated with the need to stimulate the production of national software. The main idea of the research is - the concept of legal regulation of taxation of digital companies should be based on the supranational agreements reached by states, in accordance with which the digital transformation of tax legislation of individual countries will be carried out. The prospects for the introduction of digital taxes in Russia were also estimated, taking into account the experience of other countries as a unilateral response actions to the failure to reach an international consensus on taxation of the digital economy. At the same time, both the possible risks and the positive aspects of establishing a digital tax, which have a beneficial impact on the Russian tax climate, are indicated. The author uses the historical and comparative legal methods of science, as well as the method of systems analysis.

REASONS AND CONSEQUENCES OF HIDDEN ENTREPRENEURSHIP IN UKRAINE

The purpose of the article is to study the essence, causes and consequences of hidden entrepreneurship in Ukraine. The shadowing of economic activity hinders the development of the country’s competitiveness, complicates integration into the European community, negatively affects the growth of social living standards of the population. In Ukraine, there is no single approach to the interpretation of the concept of “hidden entrepreneurship”. In most approaches, this phenomenon is associated with illegal business. In some studies, hidden entrepreneurship is associated with the shadow economy. This creates discrepancies in the indicators of the level of the shadow economy in Ukraine’s GDP, which distorts the reflection of the real state of threat to the effective development of the economy. The problems of shadowing economic activity have been studied for a long time. At the same time, deepening the understanding of the causal links between hidden entrepreneurship and the prospects of economic development in modern Ukraine requires more detail. The methodological basis of this work is the synthesis of general scientific methods of theoretical and empirical research (method of cognition, analysis and synthesis, generalization and systematization of information). Results. One of the main parameters of hidden entrepreneurship is the focus on the conscious reflection of performance. Thus, informal economic activity, which is mainly related to housekeeping, small services, irregular work, etc., acquires signs of deliberate concealment as a result of legal production and sale of unregistered goods and services. Carrying out economic operations prohibited by law turns economic activity into illegal or criminal. Thus, each subsequent type of hidden business receives additional characteristics regarding the legality of economic transactions. We identify four main groups of reasons for the emergence of hidden entrepreneurship: economic, socio-political, administrative, moral and ethical, psychological reasons. Hidden entrepreneurship provides employment to the part of the country’s population that has no sources of income (pensioners, pregnant women, people with no work experience, youth, minors, etc.). In addition, hidden business goods and services are affordable for socially vulnerable groups, partially reducing the social tensions that exist in society. Practical implications. Given that the level of the shadow sector in Ukraine is quite high (over 30% of GDP) now, its impact on economic development is negative. Therefore, identifying the root causes, as well as awareness of the negative consequences of further development of hidden entrepreneurship for the national economy should become the foundation for the transformation of the institutional environment in the country. Understanding these implications will identify the most promising ways to reduce the level of the shadow economy and promote the use of the positive effects of hidden entrepreneurship to develop the necessary incentives for entrepreneurs. Value/originality. The use of comprehensive analysis allows to identify the main problems of hidden entrepreneurship, taking into account the specifics of its manifestation in modern conditions.