Policies to promote entrepreneurial activity and economic performance

2015 ◽  
Vol 53 (9) ◽  
pp. 2073-2087 ◽  
Author(s):  
María-Soledad Castaño-Martínez ◽  
María-Teresa Méndez-Picazo ◽  
Miguel-Ángel Galindo-Martín
Keyword(s):  
Economic Performance ◽  
Latent Variables ◽  
Public Investment ◽  
Estimation Method ◽  
European Countries ◽  
Entrepreneurial Activity ◽  
Policy Makers ◽  
Content Type ◽  
Access To Credit ◽  
Entrepreneurial Culture

Purpose – The purpose of this paper is to analyse the effects of some political measures on entrepreneurship to promote economic growth and employment, specifically, R & D policies, training, elimination of administrative barriers, access to finance support and promotion of entrepreneurial culture. Design/methodology/approach – Seven hypotheses are tested developing a latent variables model with data from 13 European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and UK) in 2012, using partial least squares estimation method. Findings – Greater expenditure on R & D by governments and universities, public investment in education and measures to stimulate entrepreneurial culture have a positive effect on entrepreneurship. Furthermore, countries with complex legal systems which regulate the start-up of an economic activity and where access to credit is complicated, present lower levels of entrepreneurship. Societies with a greater number of innovative entrepreneurs present higher levels of entrepreneurial activity and economic performance. Finally, human capital and entrepreneurial activity positively affect economic performance in the case of the European countries studied in the sample. Practical implications – The results obtained in the paper would facilitate the design of measures to stimulate to entrepreneurs and improve economic performance. Originality/value – Several factors, qualitative and quantitative, have been considered in the analysis that they have not traditionally included in the analysis of the entrepreneurship behaviour taking into account the role played by the policy makers measures to improve such behaviour.

Does farmers' trust towards buyers drive their entrepreneurial orientation?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Orjon Xhoxhi ◽  
Domenico Dentoni ◽  
Drini Imami ◽  
Engjell Skreli ◽  
Olta Sokoli
Keyword(s):  
Transition Economies ◽  
Entrepreneurial Orientation ◽  
Latent Variables ◽  
Transition Economy ◽  
Measurement Model ◽  
Informal Institutions ◽  
Entrepreneurial Activity ◽  
Cross Sectional ◽  
Content Type ◽  
Rural Context

PurposeIn contexts of transition economies generally characterized by weak formal institutions, a rich literature remarks the important role of informal institutions in fostering entrepreneurial ecosystems. Nevertheless, in the agricultural context, little is known yet about how and why institutions shape farmer entrepreneurship. To better understand how informal institutions shape farmer entrepreneurship, this paper investigates how farmers' trust towards their buyers influence their entrepreneurial orientation (EO) in the rural context of a transition economy.Design/methodology/approachA structured survey was conducted in June–July 2017 with Albanian dairy farmers. In total, 238 milk producers were interviewed. Confirmatory factor analysis (CFA) is employed to develop measures for the latent variables of the study (e.g. farmers' trust, EO), and an instrumental variable (IV) approach is employed to estimate the effect of farmers' trust towards the buyer on their EO, by using farmers' reciprocity as a suitable IV.FindingsEmpirical findings reveal that innovativeness, risk-taking and proactivity represent effective dimensions of farmers' EO also in the rural context of a transition economy. Furthermore, farmers' trust towards their buyers shapes their EO, and, at the same time, younger and wealthier farmers are more likely to have higher levels of EO.Research limitations/implicationsThe results show that there is an association between farmers’ wealth and their EO. This relationship can go both ways. However, cross-sectional studies are not appropriate to investigate feedback loops.Originality/valueThis study addresses a knowledge gap in the institution–entrepreneurship literature in transition economies, by making two contributions. First, it tests the measurement model for farmers' EO, an established psychological antecedent of farmers' entrepreneurial activity. Second, it tests the hypothesis that farmers' trust towards their buyers may influence their EO.

Cultural configurations and entrepreneurial realisation

2019 ◽  
Vol 25 (1) ◽  
pp. 112-128 ◽  
Author(s):  
Pedro Torres ◽  
Mário Augusto
Keyword(s):  
Organizational Behavior ◽  
Early Stage ◽  
Qualitative Comparative Analysis ◽  
Entrepreneurial Intentions ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
Antecedent Conditions ◽  
Entrepreneurial Behaviour

Purpose The purpose of this paper is to better understand the connection between culture and entrepreneurship in proposing and testing complex configurations of culturally endorsed implicit leadership theories (CLTs) and cultural practices that lead to entrepreneurial behaviour by studying entrepreneurial intentions (EI) and early-stage entrepreneurial activity (TEA) separately. Design/methodology/approach Using data from Globe Leadership and Organizational Behavior Effectiveness (GLOBE) and Global Entrepreneurship Monitor (GEM) studies, a sample of 44 countries, and a fuzzy-set qualitative comparative analysis, several models for EI and TEA were developed. Findings The main findings provide a way of distinguishing between complex antecedent conditions that are required for each stage of the entrepreneurial realisation. The results empirically show that there is no ideal context – the path to stimulate entrepreneurship that works best for one country does not necessarily works the same for other countries. There are multiple paths to achieve the desired outcome. Research limitations/implications The data from the GLOBE study were not completely up to date, the effect of which was minimised by considering data from GEM that respects temporal ordering. Nevertheless, data from GEM suggest that there is a degree of stability in the data over time. Future research could replicate this study with a larger selection of countries and with new data, collected in a different way. Additionally, the inclusion of CLTs proposed in this study opens new opportunities for future research, by providing a new angle to look at the entrepreneurial realisation process. Practical implications This study advances research into the association of culture and entrepreneurship, and develops testable models using a configurational approach, thus confirming the suitability of asymmetric configuration analysis for entrepreneurial research. The results expand an understanding of the entrepreneurial process by showcasing the different complex antecedent conditions for EI and TEA. Depending on a country’s cultural profile, policy-makers should invest in the dimensions that enable their society to align with the model that best suits their own culture. The obtained models offer a framework for evaluating new interventions that aim to develop entrepreneurial behaviour in a specific country. Originality/value Different configurations showcase that there are alternative paths to achieving high levels of EI and TEA. The differences among the possible configurations for each stage of the entrepreneurial realisation are uncovered. Country profiles are identified, quantified, and then compared providing guidance for policy-makers.

scholarly journals Measuring financial well-being in Europe using a fuzzy set approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonella D'Agostino ◽  
Monica Rosciano ◽  
Maria Grazia Starita
Keyword(s):  
Financial Services ◽  
Well Being ◽  
European Countries ◽  
Policy Makers ◽  
Content Type ◽  
Cultural Elements ◽  
Tailored Approach ◽  
Different Dimensions ◽  
Practical Implications

PurposeThis paper aims to apply a multidimensional approach to assessing the financial well-being of European countries.Design/methodology/approachFinancial well-being is a very complex phenomenon to measure because it is composed of different dimensions. Therefore, this paper uses a multidimensional and fuzzy methodology to assess financial well-being in Europe. The financial well-being fuzzy indicator was calculated using European Quality of Life Survey data.FindingsFinancial well-being is heterogeneous across European countries. This evidence is confirmed both at the level of overall financial well-being and at the level of sub-indices. The degree of financial well-being is not directly related to wealth as traditionally measured (i.e. GDP), but shows some correspondence with socio-economic characteristics of the population and with governance and cultural elements of a country.Practical implicationsUnderstanding financial well-being could help financial institutions to transition from a one-size-fits-all approach to a more tailored approach when they provide financial services and could help policy makers to consider financial well-being when they decide how and where to allocate public spending.Originality/valueTo the best of authors’ knowledge, this study is the first to employ a fuzzy methodology for the analysis of financial well-being in Europe.

Policy to encourage the development of antimicrobials

2018 ◽  
Vol 23 (2) ◽  
pp. 101-110
Author(s):  
Ayman Chit ◽  
Paul Grootendorst
Keyword(s):  
Antimicrobial Stewardship ◽  
Market Failure ◽  
Public Investment ◽  
Multidrug Resistant ◽  
Investment Incentives ◽  
Policy Makers ◽  
Content Type ◽  
Emergency Situations ◽  
The Impact ◽  
The Eu

Purpose Antimicrobial resistance is a public health threat even in countries exercising aggressive antimicrobial stewardship. A market failure is also causing lackluster innovation in antimicrobial medicines development. At the heart of the issue are antimicrobial stewardship guidelines that, rightfully, reserve innovative antimicrobials for emergency situations that arise due to multidrug-resistant organisms. This suppresses revenues and research and development (R&D) investment incentives of manufacturers. The public policy makers and researchers have taken aim at the problem. The researchers have published strategies to encourage the production of innovative antimicrobials, while policy makers have taken legislative steps to address the issue. Most notably, the USA enacted the Generating Antibiotic Incentives Now (GAIN) act in 2012 and the EU created a commission to formally study possible policy solutions. The paper aims to discuss these issues. Design/methodology/approach In this paper, the authors describe incentives that drive pharmaceutical R&D and review the impact of a number of R&D stimulus policies in other pharmaceutical markets. The authors also discuss which policy levers are useful to boost R&D of new antimicrobials. Findings The authors find that a policy focused on extending intellectual property rights, as implemented in the GAIN act, are unlikely to be impactful. Instead, the authors see a need for the revision of the procurement policy to move away from paying per prescription and toward licenses and advanced market commitment models. Further, the authors note that the importance of steadfast public investment in basic biomedical research as it has been repeatedly shown to boost innovation. Originality/value The authors hope that the work can support the refinement of the GAIN act and the EU efforts.

Work-family state support for the self-employed across Europe

2015 ◽  
Vol 4 (2) ◽  
pp. 187-208 ◽  
Author(s):  
Anne Annink ◽  
Laura den Dulk ◽  
Bram Steijn
Keyword(s):  
Family Support ◽  
National Level ◽  
The Self ◽  
European Countries ◽  
State Support ◽  
Policy Makers ◽  
Content Type ◽  
Starting Point ◽  
Work Family ◽  
Family State

Purpose – The purpose of this paper is to map and understand work-family state support for the self-employed compared to employees across European countries. Design/methodology/approach – To map state work-family support policies for the self-employed, an overview of public childcare, maternity, paternity, and parental leave arrangements across European countries is created based on databases, local government web sites, and local experts’ country notes. Secondary data analyses are conducted in order to compare support for the self-employed to support for employees and across countries. Differences across countries are analysed from a welfare state regime perspective, which explicates assumptions about the role of the government in providing work-family state support and which is often used in research on work-family support for employees. Findings – Results show that, in general, the self-employed receive less work-family state support than employees or none at all. The extensiveness of work-family state support varies widely across European countries. Patterns of welfare states regimes, which explain variation in work-family support for employees, can also be found in the context of self-employment. Practical implications – Findings result in practical suggestions for policy makers at the European and national level to monitor policy compliance considering maternity leave for the self-employed, to increase childcare support, and to rethink the European Entrepreneurship 2020 Action Plan. Originality/value – Work-family state support for the growing number of self-employed has never been mapped before, although this is a very topical issue for (European) policy makers. This paper offers a starting point to contextualise and understand the way self-employed experience the work-family interface in different country contexts.

scholarly journals Entrepreneurial ecosystems in Poland: panacea, paper tiger or Pandora’s box?

2019 ◽  
Vol 8 (3) ◽  
pp. 319-338 ◽  
Author(s):  
Chay Brooks ◽  
Tim Vorley ◽  
Cristian Gherhes
Keyword(s):  
Public Policy ◽  
National Policy ◽  
Entrepreneurial Activity ◽  
Policy Makers ◽  
Content Type ◽  
Entrepreneurial Ecosystems ◽  
Practice Gap ◽  
Framework Conditions ◽  
Theory Practice Gap

Purpose The purpose of this paper is to critically examine the role of public policy in the formation of entrepreneurial ecosystems in Poland. Design/methodology/approach The paper assumes a qualitative approach to researching and analysing how public policy enables and constrains the formation of entrepreneurial ecosystems. The authors conducted a series of focus groups with regional and national policy makers, enterprises and intermediaries in three Polish voivodeships (regions) – Malopolska, Mazowieckie and Pomorskie. Findings The paper finds that applying the entrepreneurial ecosystems approach is a challenging prospect for public policy characterised by a theory-practice gap. Despite the attraction of entrepreneurial ecosystems as a heuristic to foster entrepreneurial activity, the cases highlight the complexity of implementing the framework conditions in practice. As the Polish case demonstrates, there are aspects of entrepreneurial ecosystems that are beyond the immediate scope of public policy. Research limitations/implications The results challenge the view that the entrepreneurial ecosystems framework represents a readily implementable public policy solution to stimulate entrepreneurship and entrepreneurial growth. Insights are drawn from three regions, although by their nature these are predominantly city centric, highlighting the bounded geography of entrepreneurial ecosystems. Originality/value This paper poses new questions regarding the capacity of public policy to establish and extend entrepreneurial ecosystems. While public policy can shape the framework and system conditions, the paper argues that these interventions are often based on superficial or incomplete interpretations of the entrepreneurial ecosystems literature and tend to ignore or underestimate informal institutions that can undermine these efforts. As such, by viewing the ecosystems approach as a panacea for growth policy makers risk opening Pandora’s box.

Gender gap and labour market participation

2014 ◽  
Vol 35 (3) ◽  
pp. 345-367 ◽  
Author(s):  
Rosalia Castellano ◽  
Antonella Rocca
Keyword(s):  
Labour Market ◽  
Gender Gap ◽  
Ad Hoc ◽  
Composite Indicator ◽  
European Countries ◽  
Gender Inequalities ◽  
Gender Gaps ◽  
Policy Makers ◽  
Content Type ◽  
Aggregation Techniques

Purpose – The measurement and comparison across countries of female conditions in labour market and gender gap in employment is a very complex task, given both its multidimensional nature and the different scenarios in terms of economic, social and cultural characteristics. The paper aims to discuss these issues. Design/methodology/approach – At this aim, different information about presence and engagement of women in labour market, gender pay gap, segregation, discrimination and human capital characteristics was combined and a ranking of 26 European countries is proposed through the composite indicator methodology. It satisfies the need to benchmark national gender gaps, grouping together economic, political and educational dimensions. Findings – The results show that female conditions in labour market are the best in Scandinavian countries and Ireland while many Eastern and Southern European countries result at the bottom of classification. Research limitations/implications – In order to take into account the subjectivity of some choices in composite indicator construction and to test robustness of results, different aggregation techniques were applied. Practical implications – The authors hope that this new index will stimulate the release of a sort of best practices useful to close labour market gaps, starting from best countries’ scenarios, and the launching of pilot gender parity task forces, as it happened with the Global Gender Gap Index in some countries. Finally, relating gender gap indexes with country policies frameworks for gender inequalities and the connected policy outcomes, it is possible to evaluate their effectiveness and to identify the most adequate initiatives to undertake because policies reducing gender gaps can significantly improve economic growth and standard of living. Social implications – The analysis gives a contribution in the evaluation of the policies and regulations effectiveness at national level considering the existing welfare regimes and the associated gaps in labour market. It can help policy makers to understand the ramifications of gaps between women and men. The Gender Gap Labour Market Index is constrained by the need for international comparability, but limiting its analysis to European countries; it has been based on ad hoc indicators concerning developed economies and could be readily adapted for use at the national and local levels. Originality/value – In this paper the authors propose a new composite indicator index specifically focused on gender gap in labour market. Several papers analysed gender differences in wages, employment or segregation, but few of them consider them together, allowing to get a satisfactory informative picture on gender inequalities in labour market and studying in deep its multiple aspects, including discrimination indicators ad hoc calculated, giving to policy makers an useful tool to evaluate female employees conditions and put them in relation with the different input factors existing within each country.

Are capital structure decisions of service SMEs different? Empirical evidence from Portugal

2011 ◽  
Vol 34 (1) ◽  
pp. 34-57 ◽  
Author(s):  
Zélia Serrasqueiro
Keyword(s):  
Capital Structure ◽  
Information Asymmetry ◽  
Manufacturing Industry ◽  
Estimation Method ◽  
Policy Makers ◽  
Content Type ◽  
Two Samples ◽  
Two Step Estimation ◽  
Over Time

PurposeThe purpose of this paper is to analyze the importance of information asymmetry in the relationships between Portuguese SME's capital structure decisions and creditors, comparing the results of service SME with those found in manufacturing SMEs.Design/methodology/approachTwo samples of Portuguese SMEs are considered: one sample is composed by 610 unlisted service SMEs; and, the other sample is made up by 381 unlisted SMEs in manufacturing industry, for the period 1999‐2006. To estimate the results, the two‐step estimation method is used, to control possible bias arising from data selection. In the first step, probit regression is used. In the second step, after the control for possible data bias, dynamic panel estimators are used.FindingsThe results obtained suggest that information asymmetry in the relationships between SMEs and creditors has a greater relative influence on capital structure decisions of service SMEs than on those of manufacturing SMEs.Practical implicationsGiven the increasing importance of service SMEs in the Portuguese economy for stimulating employment, business volume, and consequently economic growth, it would be advisable for policy makers to create special long‐term lines of credit, with advantageous terms, so that Portuguese service SMEs, when internal finance is insufficient, can finance more efficiently the growth opportunities and the strategies for diversification. In addition, since SMEs' capital structure decisions present differences, both concerning the sector of industry and over time, the measures adopted by policy makers should differentiate their measures between industry sectors and over time.Originality/valueFirst, this paper is pioneering in comparing the adjustment of actual short‐ and long‐term debts, in service and manufacturing SMEs, towards the respective target ratios. Second, it is pioneering in using dynamic estimators and in using the two‐step estimation method, in studies of determinants of capital structure decisions of service and manufacturing SMEs.

Returnee academic entrepreneurship in China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yanzhao Lai ◽  
Nicholas S. Vonortas
Keyword(s):  
Academic Entrepreneurship ◽  
Educational Background ◽  
Faculty Members ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
Entrepreneurial Culture ◽  
Computer Science Faculty ◽  
Entrepreneurial Activities ◽  
The University ◽  
The Relationship

PurposeUniversities have become both increasingly entrepreneurial and international over the past few decades. We still, however, know little about the relationship between the two trends. This paper investigates the effect of international exposure of university faculty members on university entrepreneurial culture.Design/methodology/approachUsing a specially constructed dataset of the entrepreneurial activities of 507 computer science faculty members—among whom 138 are returnees—from 21 research-intensive universities in China during 2007–2017, the study empirically investigates the relationship between foreign experience and academic entrepreneurial activity back home. We control for characteristics of the faculty member and the location of the university.FindingsAcademic tenure overseas is found to positively affect academic entrepreneurship. The length of stay abroad also affects the relationship: returnee academics with foreign Ph.D. degrees are more likely to start new businesses than returnee academics with shorter postdoc experience overseas. The economic gap between the host (foreign) and home country (China) does not have a statistically significant effect on returnee academic entrepreneurial activity.Originality/valueTo the best of our knowledge, this study is the first to empirically investigate returnee academic entrepreneurship. It provides indications on how foreign educational background affects academics entrepreneurial activities.

Did the ACA reduce job-lock and spur entrepreneurship?

2017 ◽  
Vol 6 (2) ◽  
pp. 150-163 ◽  
Author(s):  
Simon Condliffe ◽  
Matt B. Saboe ◽  
Sabrina Terrizzi
Keyword(s):  
Young Adults ◽  
Research Question ◽  
Entrepreneurial Activity ◽  
Policy Makers ◽  
Content Type ◽  
Self Employment ◽  
Job Lock ◽  
State Variation ◽  
Definition Of ◽  
Dependent Coverage

Purpose The purpose of this paper is to assess the effect of the recent Affordable Care Act’s (ACA) Dependent Mandate (DM) that requires health insurers to extend dependent coverage to the children of their insured, up to age 26. The DM has the potential to free young persons from “job lock,” enabling them to engage in entrepreneurial activity. Using the American Community Survey, the authors analyze the change in self-employment for ages 18-25 relative to the implementation of the DM. Design/methodology/approach The authors approach the research question in a unique manner and in doing so, extend the literature. Employing national data, the authors focus on young adults impacted by the DM (those under the age of 26 may remain on their parents’ insurance). While the DM is a condition of the ACA, prior to its implementation several states had already passed their own such provision. The authors exploit this state-by-state variation in the methodology. Findings The authors find no evidence that the ACA has stimulated self-employment among all young adults. However, the authors determine that the DM has a positive and significant effect on the likelihood of students being self-employed. The result is even more pronounced when using a stricter definition of entrepreneurship, an incorporated business. Sub-group analyses show no evidence of a significant effect on entrepreneurship among young adults in other groups. The results remain after conducting various falsification tests. Originality/value The paper empirically addresses the commonly held belief that the ACA is creating new businesses via reduced job lock. Policy makers may wish to target other explanations of job lock rather than health insurance availability.

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