Black Entrepreneurs, Job Creation, and Financial Constraints

Orientation: Exporting is preferred by many enterprises as the mode of foreign entry as it requires less commitment of organisational resources and offers flexibility of managerial actions. However, enterprises face a number of challenges when attempting to initiate exports or expand their export operations.Research purpose: This study was undertaken to determine the characteristics and composition of export barriers constraining exporting by Lesotho-based manufacturing enterprises.Motivation for the study: Lesotho is faced with low destination diversity and low diversity in export products.Research design, approach and method: Data was collected from 162 Lesotho-based manufacturing enterprises through a self-administered questionnaire.Main findings: In its findings, the study firstly identified international constraints, distribution constraints and financial constraints as factors constraining exporting. Secondly, it was determined that three exporting constraints, all internal to the enterprise and all related to one factor (namely financial constraint) hampered exporting. Lastly, the ANOVA results revealed that the perceptions of export constraints differed according to the enterprise characteristics, enterprise size, ownership and type of industry.Contribution/value-add: With the majority of enterprises in this study being identified as micro-enterprises, the government of Lesotho needs to pay particular attention to addressing the export needs of these enterprises in order to enable them to participate in exporting activities − especially considering that they can play a pivotal role in the alleviation of poverty, job creation and economic rejuvenation.

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Job creation and investment in imperfect financial and labor markets

Applied Economic Analysis ◽

10.1108/aea-08-2020-0111 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Silvio Rendon

Keyword(s):

Labor Market ◽

Financial Constraints ◽

Job Creation ◽

Employment Protection ◽

Market Imperfections ◽

Model Parameters ◽

Permanent Employment ◽

Content Type ◽

Firing Costs ◽

Long Run

Purpose This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see which restriction is more severe, and thus assess which is more powerful in creating permanent employment if it were removed. Design/methodology/approach A structural estimation is performed. The policy rules of the dynamic programming model are integrated into a simulated maximum likelihood procedure by which the model parameters are recovered. Data come from the CBBE (Balance Sheet data from the Bank of Spain). Identification of key parameters comes mainly from the observation of debt variation and sluggish adjustment to permanent labor. Findings Long-run permanent employment increases up to 69% when financial constraints are removed, whereas permanent employment only increases up to 54% when employment protection or firing costs are eliminated. The main finding of this paper is that the long-run expansion of permanent employment is larger when financial imperfections are removed than when firing costs are removed, even when there are important wage increases that moderate these employment expansions. Social implications The removal of firing costs has been suggested by several economists as a result of the analysis of labor market imperfections. These policies, however, face the strong opposition of labor unions. This paper shows that the goals of permanent job creation can be accomplished without removing employment protection but by means of enhancing financial access to firms. Originality/value The connection between financial constraints and employment has been studied in recent years, motivated by the Great Recession. However, there is no assessment of how financial and labor market imperfections compare with each other to restrict permanent job creation. This comparison is crucial for policy analysis. This study is an attempt to fill out this gap in the economic literature. No previous research has attempted to perform this very important comparison.

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The Period of Financial Distress in Speculative Markets: Interacting Heterogeneous Agents and Financial Constraints

PsycEXTRA Dataset ◽

10.1037/e401892008-001 ◽

2006 ◽

Cited By ~ 5

Author(s):

Mauro Gallegati ◽

Antonio Palestrini ◽

Barkley Rosser

Keyword(s):

Financial Distress ◽

Financial Constraints ◽

Heterogeneous Agents

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Making Discretionary Money Last: Financial Constraints Increase Preference for Material Purchases by Focusing Consumers on Longevity

PsycEXTRA Dataset ◽

10.1037/e509992015-069 ◽

2014 ◽

Author(s):

Stephanie M. Tully ◽

Hal E. Hershfield ◽

Tom Meyvis

Keyword(s):

Financial Constraints ◽

Material Purchases

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Markets for Purchased Farm Inputs

Voprosy Ekonomiki ◽

10.32609/0042-8736-2005-6-60-71 ◽

2005 ◽

pp. 60-71

Author(s):

E. Serova ◽

O. Shick

Keyword(s):

Agricultural Policy ◽

Financial Constraints ◽

Information Sources ◽

Animal Feed ◽

Government Policies ◽

Market Institutions ◽

Policy Makers ◽

Government Organizations ◽

The Impact ◽

Farm Inputs

Russian policy makers argue that agriculture suffers from decapitalization due to financial constraints faced by producers. This view is the basis for the national agricultural policy, which emphasizes reimbursement of input costs and substitutes government and quasi-government organizations for missing market institutions. The article evaluates the availability of purchased farm inputs, the efficiency of their use, the main problems in the emergence of market institutions, and the impact of government policies. The analysis focuses on five groups of purchased inputs: farm machinery, fertilizers, fuel, seeds, and animal feed. The information sources include official statistics and data from two original surveys.

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Ties to the outside: An exploration of faculty interactions with external organizations

Higher Education Politics & Economics ◽

10.32674/hepe.v4i1.9 ◽

2018 ◽

Vol 4 (1) ◽

pp. 295-313 ◽

Cited By ~ 1

Author(s):

Karley A Riffe

Keyword(s):

Study Design ◽

Financial Constraints ◽

Academic Discipline ◽

Faculty Members ◽

Faculty Work ◽

Case Study Design ◽

Low Resource ◽

Faculty Interactions ◽

Embedded Case Study

Faculty work now includes market-like behaviors that create research, teaching, and service opportunities. This study employs an embedded case study design to evaluate the extent to which faculty members interact with external organizations to mitigate financial constraints and how those relationships vary by academic discipline. The findings show a similar number of ties among faculty members in high- and low-resource disciplines, reciprocity between faculty members and external organizations, and an expanded conceptualization of faculty work.

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