{"title":"Financial performance of new circular economy companies in rural settings","authors":"Adriana Serrano Magdalena, Beatriz Cuellar Fernández, Yolanda Fuertes Callén","doi":"10.1007/s11187-024-00971-7","DOIUrl":"https://doi.org/10.1007/s11187-024-00971-7","url":null,"abstract":"<p>This study examines how rural conditions affect the establishment and performance of new circular economy (CE) companies—those that reduce, reuse, recycle, and recover materials in their processes—focusing on their longevity, financial performance, and distribution of economic value to stakeholders. We hypothesize that while rural conditions generally lead to fewer business establishments, the liability of rurality is less severe for CE companies than for others. We also anticipate that new CE companies will grow more slowly but achieve better performance, resulting in higher survival rates compared to those in other sectors. Our empirical analysis includes all CE companies established in Spain over the past decade. The results indicate that rural CE companies have higher survival rates than their urban counterparts, even after controlling for factors like subsidies and personnel costs. Although rural CE companies exhibit slower growth, they achieve greater profitability. Thus, the CE sector in rural areas demonstrates sustainability not only through its circular practices but also in financial terms, offering significant implications for investors seeking sustainable ventures.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"1 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142384869","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Save for a rainy day? How regional household savings constrain entrepreneurship after a natural disaster","authors":"Jiabin Zhang, Joeri van Hugten, Wouter Stam","doi":"10.1007/s11187-024-00973-5","DOIUrl":"https://doi.org/10.1007/s11187-024-00973-5","url":null,"abstract":"<p>Why do some entrepreneurial ecosystems successfully adjust amid adversity while others languish? By integrating prospect theory into the entrepreneurial ecosystem literature and using a quasi-natural experimental design with a difference-in-difference-in-differences model, our theory and findings reveal that earthquakes reduce entrepreneurship in regions with high household savings, but increase entrepreneurship in regions with low savings, and these between-area differences increase over time. Reconceptualizing the meaning of savings from a resource into a key driver of loss aversion, we thus identify the surprising constraining influence of financial capital in times of adversity, yielding important implications for entrepreneurship research and policymakers.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"52 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142384871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Outside or inside the firm? The impact of debt financing on the exit routes of start-up firms","authors":"Yuji Honjo, Yunosuke Iwaki, Masatoshi Kato","doi":"10.1007/s11187-024-00968-2","DOIUrl":"https://doi.org/10.1007/s11187-024-00968-2","url":null,"abstract":"<p>This study explores the impact of initial debt financing on the survival of start-up firms by identifying three types of exit routes: bankruptcy, voluntary liquidation, and merger. Using a discrete-time duration model for Japanese start-up firms, we examine how debt financing affects the time from founding to exit. We find that firms that initially rely on debt financing from outside creditors are more likely to go bankrupt and that long-term debt, rather than short-term debt, is significantly associated with the time to exit due to bankruptcy. In contrast, such firms are less likely to liquidate voluntarily, and a lower long-term debt ratio is associated with a shorter time to voluntary liquidation. Moreover, they are less likely to exit via merger, and a lower long-term debt ratio is associated with a shorter time to exit via merger. Furthermore, the likelihood of bankruptcy, unlike voluntary liquidation and merger, is influenced by macroeconomic conditions.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"57 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142330305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Roberto Vivona, Tommy H. Clausen, Petter Gullmark, Emre Cinar, Mehmet Akif Demircioglu
{"title":"Public sector entrepreneurship: an integrative review","authors":"Roberto Vivona, Tommy H. Clausen, Petter Gullmark, Emre Cinar, Mehmet Akif Demircioglu","doi":"10.1007/s11187-024-00965-5","DOIUrl":"https://doi.org/10.1007/s11187-024-00965-5","url":null,"abstract":"<p>Public sector entrepreneurship (PSE) has emerged as a vital field, exploring how public servants leverage opportunities to create public value amidst unprecedented and unpredictable challenges in governance. This article navigates the expansive landscape of PSE literature, consolidating diverse theoretical perspectives and fragmented knowledge into a cohesive framework. Through an integrative and systematic review of 100 articles, we identify PSE as a multi-level phenomenon characterized by a context-dependent combination of proactivity, innovation, and risk-taking, that serves to drive change and renewal, promote resilient organizations, and resourcefully exploit opportunities for public value creation, with the ultimate aim of achieving positive societal and environmental outcomes. By proposing an analytical framework that embraces the fluid nature of PSE and integrating diverse perspectives, this study enriches our understanding of the intersection between entrepreneurship and public administration. It advocates for a nuanced, sector-specific approach to PSE, laying a solid foundation for further advancements in the field.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"200 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142277093","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Navigating challenges: lean inventory management and SMEs performance during the COVID-19 crisis and beyond","authors":"Vivien Lefebvre","doi":"10.1007/s11187-024-00969-1","DOIUrl":"https://doi.org/10.1007/s11187-024-00969-1","url":null,"abstract":"<p>We examine organizational innovation through the adoption of lean inventory management and its impact on firm performance. Specifically, we investigate the moderating roles of firm size and occurrence of an external shock in the relation between lean inventory management and firm performance. Lean inventory management refers to the practice of holding minimum levels of inventory to reduce storage costs and save financial resources and is therefore expected to have a positive on impact firm performance. As small- and medium-sized enterprises (SMEs) face significant resource constraints, lean inventory management is potentially more beneficial for them than for large firms. However, the external disruption caused by an external shock, such as the COVID-19, has more severe consequences for lean SMEs than for larger firms. Using a large sample of French SMEs and large firms, we find evidence to support this view in all major industries. During the COVID-19 crisis, the positive effect of lean inventory management diminished for SMEs. The results have implications for managers regarding inventory management practices.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"101 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142235289","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Zeynab Aeeni, Mehrzad Saeedikiya, Kamal Sakhdari, Vahid J. Sadeghi
{"title":"Blooming in the cracks: productive entrepreneurship amid institutional voids","authors":"Zeynab Aeeni, Mehrzad Saeedikiya, Kamal Sakhdari, Vahid J. Sadeghi","doi":"10.1007/s11187-024-00963-7","DOIUrl":"https://doi.org/10.1007/s11187-024-00963-7","url":null,"abstract":"<p>Institutional entrepreneurship holds that institutions, as the rules of the game, provide payoff structures affecting the allocation of entrepreneurship to productive, unproductive, or destructive paths. Contrary to institutionalist assumptions, institutional work (IW) literature draws a broader vision of the recursive and dialectical connection between agents and institutions. IW explains how agents’ intent and capability lead to maintaining, altering, or creating institutions and direct entrepreneurial outcomes toward productive paths. The current research adopts an IW perspective to explore how productive entrepreneurship (PE) occurs in poor institutional contexts. Applying an extended case method and conducting semi-structured interviews with entrepreneurs, we extend the current understanding of the agent-institution interplay in entrepreneurship allocation. Our results depict a more realistic and comprehensive picture of entrepreneurship allocation to productive paths amid institutional constraints. Highlighting the role of actions and motivations, we explore different mechanisms and IW strategies entrepreneurs use to pursue PE within inefficient institutions.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"133 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142152423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Shabnam Kazembalaghi, Jerry Coakley, José M. Liñares-Zegarra, Silvio Vismara
{"title":"Digital equity and government support during COVID-19","authors":"Shabnam Kazembalaghi, Jerry Coakley, José M. Liñares-Zegarra, Silvio Vismara","doi":"10.1007/s11187-024-00961-9","DOIUrl":"https://doi.org/10.1007/s11187-024-00961-9","url":null,"abstract":"<p>The advent of COVID-19 portended a dire liquidity crunch for small firms as traditional external funding sources were severely curtailed. Defying expectations, initial equity crowdfunding (ECF) campaigns not only withstood the pandemic’s onslaught but also saw unprecedented growth in funding volume, investor participation and overfunding. The upshot was that external equity, the traditional funding of last resort, became the first choice. Increased ECF funding especially for seed ventures are likely linked to government-backed loan guarantee schemes that acted as a quality signal for investors. The paper highlights the unanticipated positive synergies between public support mechanisms and private equity dynamics where equity was funding of first choice for many small firms seeking external funding. These developments underscore ECF’s central role in digitally channelling equity capital to small firms during a period of heightened economic uncertainty.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"2 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142152429","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Women-led ventures: target margins in emerging markets","authors":"Natalia Cantet, Brian Feld, Estefany Peña-Rojas","doi":"10.1007/s11187-024-00962-8","DOIUrl":"https://doi.org/10.1007/s11187-024-00962-8","url":null,"abstract":"<p>In recent decades, though the number of female entrepreneurs has grown, a gender gap remains. Self-confidence plays a pivotal role in understanding these differences. We examine gender and target margins in a vast dataset spanning Latin America, the Caribbean, and Sub-Saharan Africa. We use linear and interval regression analysis to estimate the relationship between gender and setting target margins. We find that female-led ventures are nearly five percentage points less likely to establish target margins compared to male-led ventures, even after adjusting for observable factors. Furthermore, ventures founded by women tend to set lower target margins than those with only male founders. These disparities could be attributed to intrinsic gender characteristics, contextual influences, and unique company traits. Given the link between profit margins and self-confidence, these findings suggest that, due to their self-assurance, typically higher, male entrepreneurs often set more ambitious goals, resulting in higher profits. To promote gender equality in entrepreneurship, policymakers, accelerators, and incubators should focus on bolstering the confidence of female entrepreneurs.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"48 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142152430","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pierluigi Martino, Tom Vanacker, Igor Filatotchev, Cristiano Bellavitis
{"title":"(De)centralized governance and the value of platform-based new ventures: The moderating role of teams and transparency","authors":"Pierluigi Martino, Tom Vanacker, Igor Filatotchev, Cristiano Bellavitis","doi":"10.1007/s11187-024-00964-6","DOIUrl":"https://doi.org/10.1007/s11187-024-00964-6","url":null,"abstract":"<p>Drawing on institutional and demand-side perspectives, we investigate performance implications of (de)centralized governance modes in platform-based new ventures, and the conditions under which (de)centralization generates more value. Using a sample of 1,431 Initial Coin Offerings (ICOs), a new source of entrepreneurial finance, we find that centralization of decision-making is positively associated with platforms’ market value. Further, we consider how platform characteristics affect this relationship, finding that both the presence of an experienced Chief Technology Officer (CTO) and project transparency negatively moderate the positive relationship between centralization and market value. Thus, decentralized platforms need leaders with technical experience and project transparency to generate more value. Overall, this study provides a better understanding of the boundary conditions that increase the value of (de)centralized governance.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"101 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142101916","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Small business stories in the formation of enterprise policy: a narrative policy analysis of the UK Bolton Committee","authors":"Robert Wapshott, Oliver Mallett","doi":"10.1007/s11187-024-00966-4","DOIUrl":"https://doi.org/10.1007/s11187-024-00966-4","url":null,"abstract":"<p>Enterprise policy, which seeks to stimulate start-ups and support small businesses, attracts significant investment from government and shapes the context for entrepreneurs. Researchers have begun to study the processes underlying the formulation of enterprise policy. However, accounts of how competing interests seek to influence enterprise policymaking processes remain rare. Utilising a distinctive approach to narrative entrepreneurship, developed through a narrative policy analysis, we examine archival records of submissions from a range of stakeholders to a UK government inquiry. We develop a narrative entrepreneurship approach that allows us to analyse the stories and broader narratives told by entrepreneurs and others. Our analysis identifies different types of narrative strategy used to develop stories by two competing interest groups: a narrative from small businesses and their representatives and, contesting this, a counternarrative from other stakeholders, including the finance industry, consumer groups and large firms. We analyse how the inquiry engaged with these competing narratives and sought to make them amenable to policymaking through the creation of a simplifying, overarching metanarrative. We demonstrate that, while this metanarrative simplified the uncertain, complex and polarised issue of enterprise policy, it masked and did not resolve the underlying tensions between competing interests.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"5 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142084715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}