Download or read book New Firm Formation and Industry Growth written by Thorsten Beck and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do industries that depend heavily on external finance grow faster in market-based or bank-based financial systems? Are new firms more likely to form in a bank-based or a market-based financial system? Beck and Levine find no evidence for the superiority of either market-based or bank-based financial systems for industries dependent on external financing. But they find overwhelming evidence that industries heavily dependent on external finance grow faster in economies with higher levels of financial development and with better legal protection for outside investors - including strong creditor and shareholder rights and strong contract enforcement mechanisms.Financial development also stimulates the establishment of new firms, which is consistent with the Schumpeterian view of creative destruction. Financial development matters. That the financial system is bank-based or market-based offers little additional information.This paper - a product of the Financial Sector Strategy and Policy Department - is part of a larger effort in the department to understand the link between financial development and economic growth.

Download or read book New Firm Formation and Industry Growth written by Thorsten Beck and published by . This book was released on 2000 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do industries that depend heavily on external finance grow faster in market-based or bank-based fiancial systems? Are new firms more likely to form in a bank-based or a market-based financial system?

Download or read book International Differences in Entrepreneurship written by Josh Lerner and published by University of Chicago Press. This book was released on 2010-06-15 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt: Often considered one of the major forces behind economic growth and development, the entrepreneurial firm can accelerate the speed of innovation and dissemination of new technologies, thus increasing a country's competitive edge in the global market. As a result, cultivating a strong culture of entrepreneurial thinking has become a primary goal throughout the world. Surprisingly, there has been little systematic research or comparative analysis to show how the growth of entrepreneurship differs among countries in various stages of development. International Differences in Entrepreneurship fills this void by explaining how a country's institutional differences, cultural considerations, and personal characteristics can affect the role that entrepreneurs play in its economy. Developing an understanding of the origins of entrepreneurs as well as the choices they make and the complexity of their activities across countries and industries are of central importance to this volume. In addition, contributors consider how environmental factors of individual economies, such as market regulation, government subsidies for banks, and support for entrepreneurial culture affect the industry and the impact that entrepreneurs have on growth in developing nations.

Download or read book The Dynamics of New Firm Formation written by Vinod Sutaria and published by Routledge. This book was released on 2017-11-22 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: This title was first published in 2001. The dynamics of New Firm Formation (NFF) are central to the phenomenon of economic growth and development. While the economic importance of NFF has been recognized, the mechanisms that drive NFF are not well documented or understood. Illustrated by an in-depth case study from Texas, this volume analyzes the relationships between NFF and its localized context. Using specially-formulated fixed-effects regression models, the study brings about controversial new findings. These provide a counterpoint to the neoclassical theory that there is an adversarial relationship between small and large firms by instead suggesting that the relationship is more of a symbiotic one. Furthermore, it suggests that deep churning - the turnover and replacement in a business base - is a key factor in understanding the forces shaping regional economies.

Download or read book Entrepreneurship and Dynamic Capitalism written by Bruce Kirchhoff and published by Bloomsbury Publishing USA. This book was released on 1993-12-30 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: Kirchhoff blends economics, business, and governemnt policy to demonstrate that entrepreneurship's role in business formation and growth energizes and maintains the viability of capitalism. Entrepreneurs convert new ideas into marketable products and services and use these to grab market shares from older, established firms. This process not only produces economic growth, but also redistributes resources so as to assure equitable distribution within society. Acknowledging that this perception is descriptive but lacks predictive power, Kirchhoff offers a typology to assist in predictive theory building and to guide government policy development.

Download or read book New Firm Formation and Sustainable Regional Economic Development Relevance Empirical Evidence Policies written by Michael Fritsch and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The belief that new business formation is a source of economic growth is widespread. This belief has been a strong motivation for a great deal of research in entrepreneurship. It has also motivated politicians in many countries to devise strategies aimed at stimulating the formation of new firms. However, the theoretical as well as the empirical foundation for this belief are remarkably weak. Empirical research on the issue started late and only recently have researchers begun to assess the effects of new businesses on economic development in detail. The effect of new business formation on regional development is an important field of research. A proper understanding of these relationships may provide valuable inputs for policies aimed at stimulating growth. This short introduction provides an overview on the current state of knowledge about the effects that new businesses have on regional development. The focus is on regions for three reasons. First, geographical units of observation are much better suited for such an analysis than are industries. Second, empirical research has shown that the magnitude of the effects of new business formation on growth differs considerably across regions pointing to the importance of region-specific factors. Third, regions are an important arena for development policy (for an extensive review see Fritsch, 2013).

Download or read book Exploring the knowledge filter written by Pamela Mueller and published by . This book was released on 2005 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Managing New Industry Creation written by Thomas Murtha and published by Stanford University Press. This book was released on 2002-11-01 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book concerns industry creation as knowledge creation. The authors argue that a new class of global, knowledge-driven manufacturing industries has emerged in which learning, continuity, and speed define competition. In these new industries, access to knowledge creation processes matters more than ownership of physical assets. Location matters only insofar as it confers learning advantages and market access. Companies need strategies that can mobilize their organizations' country-specific strengths and freely leverage them in open, global learning partnerships with allies, suppliers, and customers. Managing New Industry Creation distills principles that managers can use to seize leadership for their companies as these new industries emerge. The authors draw their insights from firsthand discussions with over 160 managers and scientists who helped found the high-information-content flat panel display (FPD) industry. In the early 1990s, large-format FPDs exploded into public knowledge as a critical enabling technology for notebook computers. In the future, FPDs will increasingly function as the face by which users interact with technology products. The book recounts the business decisions that propelled the industry from humble beginnings to empower a globally mobile workforce and eventually build wall-hanging, high definition televisions that every household can afford. The FPD industry was the first new manufacturing industry to fully emerge in a global economy defined more by trade in knowledge than in physical products. Although FPDs were commercialized in Japan, the joint efforts of an international community of companies made high-volume production of large displays viable. Companies from outside of Japan—including IBM, Applied Materials, and Corning—achieved key positions by challenging U.S.-centered preconceptions of innovation, new business creation, and management process, giving unprecedented global authority and responsibility to their Japanese affiliates. Their success established new rules for competing in the knowledge-driven, global manufacturing industries of the future, first described here for managers, R&D scientists, academics, and students of corporate strategy.

Download or read book Entrepreneurship and New Firm written by David J. Storey and published by Routledge. This book was released on 2016-07-22 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, originally published in 1982, review the resurrection of the small firm, partly by a multi-disciplined examination of the existing literature on small and new firms and partly by reporting the results of a study of firms new (in the early 1980s) to the North East of England. Part 1 deals with the role of small firms as sources of potential or actual competition, and their role in research and innovation. In Part 2 the theoretical foundations for the study of entrepreneurs and their new firms are laid, using concepts from a cross-section of the social sciences. Part 3 tests some of the theories outlined in Part 2 and reviews the problems which the entrepreneurs faced in starting and developing their business and the impact which such businesses had upon the local economy. Part 4 reviews the lessons of the preceding parts in the context of the regional and national economy of the UK.

Download or read book Entrepreneurship in the Region written by Michael Fritsch and published by Springer Science & Business Media. This book was released on 2007-10-23 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: Entrepreneurship in the Region approaches many different aspects of entrepreneurship from a regional perspective. The regional influences on entrepreneurship analyzed entail regional peculiarities and disparities in new business formation processes, the success and the employment effects of new firms, the importance of social capital and of network structures as well as entrepreneurship education and training provided in the regions. The articles in this book provide strong evidence for the importance of regional factors that shape entrepreneurship and new firm formation processes. It is shown that regional differences of start-up rates and entrepreneurial attitudes are not at all elusive but tend to be rather persistent and prevail over longer periods of time. The evidence clearly suggests that the regional level can be an appropriate starting point for entrepreneurship policy and that research on the issue may considerably benefit from properly accounting for the spatial dimension.

Download or read book Entrepreneurship Human Capital and Regional Development written by Rui Baptista and published by Springer. This book was released on 2015-01-14 with total page 399 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book makes original contributions to the literature on clusters, human capital, and regional development by focusing on the link between entrepreneurship and economic growth, aiming for a better understanding of the dynamics of growth determined by the entrepreneur’s action in the regional space. The focus is therefore on critical reflection and rethinking the articulation between three levels of analysis of economic systems, namely entrepreneurship, human capital and regional development, which have not so far been perfectly articulated in the literature of reference on endogenous growth. Although there has been significant research so far into the success and failure of clusters, the implications of these multiple research efforts fail to provide political decision-makers and company managers with critical information about which mechanisms lie behind cluster success and also about how clusters survive and prosper. The innovative approaches presented in this book on entrepreneurship, human capital mobility and regional development have considerable potential to create new and original implications for decision-makers and managers. In terms of value added, this book contributes to the literature by seeking answers to the following questions: (i) Is the growth and success of clusters over time due to concentration and transmission of business competences through spin-offs located in a given regional space? (ii) Does increased density of job options outside the workplace contribute to increased mobility of human capital between firms located within clusters, and so improve coordination in the local labor market? (iii) Do spin-offs benefit from hiring workers from successful incumbents, inasmuch as those workers are expected to perform better than other workers from different origins? Integrating theoretical frameworks, empirical research, and regional case studies (from Portugal, Spain, Norway and Turkey), the editors and contributors demonstrate that the regional dynamics of industry growth are strongly influenced by the mobility of employees towards new firms.

Download or read book Entrepreneurship Growth and Innovation written by Enrico Santarelli and published by Springer Science & Business Media. This book was released on 2006-03-29 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt: The analysis of different national cases (including, Germany, Greece, Italy, Portugal, Turkey, the Netherlands, and the United States) puts forward that the relationship between entrepreneurship and growth (via innovation) is shaped by the context of country-specific institutions and industries, thereby providing hints for industrial and innovation policy.

Download or read book Exploring Firm Formation written by Dane Stangler and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent entrepreneurship research has shed new light on how important new companies - firms less than five years old - are to economic growth, so the next question raised by economists and policymakers might be: How do we increase the number of firm formations? In a review of research into entrepreneurial orientation to help find answers, another important question has arisen: Why does the level of firm formation remain virtually consistent from year to year? This paper, the second in the Kauffman Foundation Research Series on Firm Formation and Economic Growth, explores this question and makes the following key points: • Firm formation in the United States is remarkably constant over time, with the number of new companies varying little from year to year. This remains true despite sharp changes in economic conditions and markets, and longer-cycle changes in population and education. While existing entrepreneurship data may miss some numbers of new firms, this does not appear to explain the steady level of firm formation across time. • Such constancy possibly reflects the nature of the United States economy, employment churn, and demographics. The paper discusses each in detail, as well as entrepreneurial motivations, talent, and the so-called “opportunity recognition” model. • A steady level of firm formation implies that relatively few factors, such as entrepreneurship education and venture capital, influence the pace of startups, although these factors may help prevent a decline of new firms and may affect specific companies at the margins. • A closer look at the relatively unchanging number of new firms each year offers potential lessons for public policy, especially when considering the future of entrepreneurship after the Great Recession of 2007-2009. This paper examines the implications of each of these points, such as possible reasons why firm formation is constant and what it means for the wider economy, why efforts to increase entrepreneurship have not had much effect on the level of firm formation, whether or not the volume of startups really matters to the economy, and how the recession has impacted firm formation. Further discussion of some of these questions will be reserved for future papers, but we can at least begin to explore them here.

Download or read book Entrepreneurship Geography and American Economic Growth written by Zoltan J. Acs and published by Cambridge University Press. This book was released on 2006-06-19 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The spillovers in knowledge among largely college-educated workers were among the key reasons for the impressive degree of economic growth and spread of entrepreneurship in the United States during the 1990s. Prior 'industrial policies' in the 1970s and 1980s did not advance growth because these were based on outmoded large manufacturing models. Zoltan Acs and Catherine Armington use a knowledge spillover theory of entrepreneurship to explain new firm formation rates in regional economies during the 1990s period and beyond. The fastest-growing regions are those that have the highest rates of new firm formation, and which are not dominated by large businesses. The authors of this text also find support for the thesis that knowledge spillovers move across industries and are not confined within a single industry. As a result, they suggest, regional policies to encourage and sustain growth should focus on entrepreneurship among other factors.

Download or read book New Business Formation and Regional Development written by Michael Fritsch and published by . This book was released on 2013-02 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: New Business Formation and Regional Development provides an overview of the effects that new businesses have on regional development. The focus is on regions because geographical units of observation are much better suited for such an analysis than are industries. Regional growth is a complex process that involves large numbers of start-ups in diverse industries, firm exit, and growing and declining incumbent firms. The determinants of the effects that new business formation has in this complex process may be different from those factors that make individual start-ups succeed or a fail. After an introductory explanation, section 2 begins with a brief sketch of the extant research on this topic. Section 3 reviews the main theoretical approaches that provide insights and explanations, and combines them in a more diverse and comprehensive explanation of the effects of start-ups on development. This eclectic approach particularly highlights the competitive challenge that start-ups pose to incumbent firms and the important role played by the regional environment. Section 4 reports the available empirical evidence on the different effects that new business formation might have on regional development. The research ends with a discussion of policy implications in Section 5, and outlining important questions for further research in Section 6.

Download or read book High Growth Firms and the Future of the American Economy Kauffman Foundation Research Series written by Dane Stangler and published by . This book was released on 2010 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Into early 2010, more than two years after the recession began, the American economy continues to send out mixed signals with respect to economic recovery: GDP (gross domestic product) growth looks set to recover, while unemployment is projected to remain high for many more years. The most important economic matter facing the country is job creation, not only in terms of employment itself but also for boosting sectors such as housing, which will not fully recover until job creation recovers. Discussions about jump-starting the U.S. economy--both from policymakers and pundits--primarily focus on measures that would expand job growth in existing companies. This report, the third in the Kauffman Foundation Research Series on Firm Formation and Economic Growth, draws on a new set of data, a special tabulation conducted by the Census Bureau at the request of the Ewing Marion Kauffman Foundation, calculated from the Business Dynamics Statistics (BDS) database. While previous research has emphasized the importance of new and young companies to job creation overall, this paper focuses on "high-growth firms"--the so-called "gazelles" that, despite their relatively small numbers, nonetheless account for a disproportionate share of job creation. The data generally show that: (1) In any given year, the top-performing 1 percent of firms generate roughly 40 percent of new job creation; and (2) Fast-growing young firms, comprising less than 1 percent of all companies, generate roughly 10 percent of new jobs in any given year. This paper examines the relevance of these points in the national discussion on job creation. When the current conversation turns to small business as an instigator in economic growth, it still emphasizes existing firms. But a new discussion--one that not only promotes entrepreneurship, but, specifically, "high-growth" entrepreneurship--is necessary, because top-performing companies are the most fruitful source of new jobs and offer the economy's best hope for recovery. Finally, this paper recommends strategies policymakers could follow to facilitate the creation and growth of more gazelle companies: (1) Remove barriers that potentially block the emergence of high-growth companies; (2) Focus on taxation, regulation, immigration, access to capital, and academic commercialization; and (3) Target immigrant entrepreneurs and universities, which may be likely sources for high-growth firms. (Contains 7 figures and 23 footnotes.).

Download or read book Local Rates of New Firm Formation written by Martin Andersson and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We assess the empirical literature on the determinants of spatial variations in new-firm formation rates by undertaking a systematic empirical analysis of the relative roles of different demand- and supply-side factors. Using instrumental variables to address endogeneity, we find that local growth drives local entrepreneurship exclusively in services industries. Average establishment size has a robust negative influence on local new-firm formation rates, but its effect varies across industries. Local industry diversity is only positive for new-firm formation in high-tech and knowledge-intensive activities. There is also some evidence of that longer distances to urban centers is associated with higher new-firm formation rates. The only local factor with a consistent positive effect on new-firm formation across industries is local density of skilled workers. We conclude that industry structure, geography and agglomeration matter, but in the end, new firms are started by people, so it is unsurprising that the main factor driving local entrepreneurship is the characteristics of the local residents.