scholarly journals City economies and microbusiness growth

Urban Studies ◽  
2016 ◽  
Vol 54 (14) ◽  
pp. 3199-3217 ◽  
Author(s):  
Donald Houston ◽  
Darja Reuschke

In developed countries, microbusinesses (those employing fewer than 10 people) and home-based businesses have been systematically overlooked in urban economic development thinking. This article assesses the influence of city location and being run from the business owner’s home on microbusiness growth, based on empirical analysis of panel firm-level data over a four-year period during the UK’s long boom. The analysis reveals that cities provide benefits to microbusinesses for turnover growth but not for employment growth – suggesting that the additional growth induced by cities for microbusinesses may be jobless growth. However, in the case of microbusinesses run from the owner’s home, cities facilitate growth into medium-sized businesses (with 50+ staff). In conclusion, microbusinesses, including those run from business owners’ homes, are integral to the evolution and dynamics of urban economies and essential to understanding the nature of growth in cities. Agglomeration theory needs to say more about how urban agglomeration benefits firms of different types and sizes, and small business and self-employment research needs to say more about the influence of location, in particular cities. How businesses use both commercial and residential property are integral to the nature of growth in cities.

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S134-S156 ◽  
Author(s):  
Eric S. Lin ◽  
Yi-Chi Hsiao ◽  
Hui-lin Lin

This paper aims to empirically test the R&D complementarities among three alternative R&D strategies, namely, internal R&D, external R&D and cooperative R&D, under different measures of innovation output. Using a firm-level data set based on the Taiwanese innovation survey (in accordance with CIS 3) conducted in 2003, we are able to compare the R&D activities in this newly-industrialized country with other developed countries. Additionally, we apply a two-step procedure to reduce the endogeneity problem caused by the firms’ choices of strategies to obtain consistent estimators, which can be regarded as a combined method of adoption and productivity approaches. We show that the results of the estimation for R&D complementarities may be biased upwards or downwards if we do not include selection equations in the empirical models, thereby giving rise to endogeneity problems. Our empirical results generally support the existence of R&D complementarities, while the strength of complementary effects may vary across different measures of innovation output. Moreover, our finding suggests that the complementary relationship between external and cooperative R&D is fairly robust to various model specifications.


2019 ◽  
Vol 8 (1) ◽  
pp. 41
Author(s):  
Philip Carthy ◽  
Sean Lyons

This paper examines the effects of deploying digital subscriber line (DSL) broadband on job creation within existing firms. We use spatial information on broadband and firm locations, exploiting geographical and temporal variation in broadband availability in Ireland during 2007-2014. This is linked to a panel of firm-level data on employment and other characteristics. Econometric models are used to explore the relationship between DSL and employment over time and across local economic and industry contexts. We also investigate whether effects might vary depending upon local educational attainment. We find little evidence of a general effect of DSL roll-out on employment in Irish firms.


2021 ◽  
Vol 9 (7) ◽  
pp. 177-198
Author(s):  
Michael Asiedu

The study employed firm level data from the World Bank’s Enterprise Survey Indicator Database to investigate firm characteristics associated with firm innovation in 32 African countries, for the period 2009 to 2018. We find that firm level innovation, including the introduction of significantly new products (H1), new or significantly improved methods of manufacturing products (New Technology) are strongly associated with external funding sources (funds from Banks and non-banking institutions). In addition, firm level characteristics such as firm age, female ownership, capacity utilization, educated labor force, exposure to competition is strongly associated with firm innovation. These findings are very important for countries in Africa (and other less-developed countries) who spend less on research and development due financing and structural constraints but want to accelerate economic growth and increased productivity.


2017 ◽  
Vol 18 (1) ◽  
pp. 36-46 ◽  
Author(s):  
Yanay Farja ◽  
Eli Gimmon ◽  
Zeev Greenberg

This study explores differentiating factors in employment growth between young small and medium-sized enterprises in rural regions and their application in developing economies. We applied a mixed-method approach, including a survey of 155 new ventures in Israel, an economy whose rural regions exhibit similarities to those of less developed countries, and 10 in-depth interviews with academics and practitioners. The results suggest that the economic development of rural areas through the cultivation of entrepreneurship should be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.


2013 ◽  
Vol 14 (1) ◽  
pp. 29-38 ◽  
Author(s):  
Li Xiao ◽  
Mitch Larson ◽  
David North

This paper examines the growth-orientation effects of specific entrepreneurial expertise in an emerging economy. It draws on face-to-face interviews with entrepreneurs of young high-tech small and medium-sized enterprises in the Chinese provinces of Guangdong and Guangxi. Using four measures of firm-level performance – that is, employment, profitability, sales turnover and internationalization – the findings show that different types of entrepreneurial teams have different growth intentions depending on the strengths of the team members. The ‘mixed’ type of team optimized performance in general and employment growth in particular, while ‘technology entrepreneurial’ teams were more profit-oriented, and ‘business practice entrepreneurial’ teams were more export-oriented.


2015 ◽  
Vol 15 (1) ◽  
pp. 299-328 ◽  
Author(s):  
Sofía Galán ◽  
Sergio Puente

Abstract This paper uses a significant increase in the minimum wage in Spain between 2004 and 2010 as a case study to analyse the effects on the individual probability of losing employment, using a large panel of social security records. We show that this individual approach is important, as the possible effects for different types of individuals may differ from other estimates in the literature, based on aggregate or firm-level data, hence complementing them. Our main finding is that older people experienced the largest increase in the probability of losing their job, when compared with other age groups, including young people. The intuition is simple: among the affected (low-productivity) workers, young people are expected to increase their productivity more than older ones, who are in the flat part of their life-cycle productivity curve. Consequently, an employer facing a uniform increase in the minimum wage may find it profitable to retain young employees and to fire older ones.


Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation


Author(s):  
Evgenia R. Muntyan

The article analyzes a number of methods of knowledge formation using various graph models, including oriented, undirected graphs with the same type of edges and graphs with multiple and different types of edges. This article shows the possibilities of using graphs to represent a three-level structure of knowledge in the field of complex technical systems modeling. In such a model, at the first level, data is formed in the form of unrelated graph vertices, at the second level – information presented by a related undirected graph, and at the third level – knowledge in the form of a set of graph paths. The proposed interpretation of the structure of knowledge allows to create new opportunities for analytical study of knowledge and information, their properties and relationships.


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