Mikaela Backman, Christopher S. Carpenter, Erwan Dujeancourt, Samuel Mann
{"title":"Sexual orientation, entrepreneurship, and firm survival","authors":"Mikaela Backman, Christopher S. Carpenter, Erwan Dujeancourt, Samuel Mann","doi":"10.1007/s11187-024-00976-2","DOIUrl":"https://doi.org/10.1007/s11187-024-00976-2","url":null,"abstract":"<p>We provide new evidence on sexual orientation, entrepreneurship, and firm survival using Swedish population register data linked to business registry data from 1995 to 2020. Over this period, we study over 19,000 individuals who ever entered a legal same-sex union and compare their entrepreneurship and firm level outcomes with individuals exclusively in different-sex unions. We find that sexual minority men are 7.8% <i>less</i> likely than comparable heterosexual men to be entrepreneurs, while sexual minority women are 4.8% <i>more</i> likely than comparable heterosexual women to be entrepreneurs. Both differences are statistically significant. We also provide the first evidence regarding the survival of sexual minority founded firms compared to firms founded by heterosexual individuals. Our results show that firms founded by sexual minority women fail more quickly than observably similar firms founded by heterosexual women, with no significant survival difference observed for sexual minority men. We explore the role of several external and internal factors that may explain these underlying patterns and find that lack of a ‘trapped market’ may contribute to the higher failure rate of firms founded by sexual minority women. We also find suggestive support for a role of romantic partners in explaining differences in firm survival experienced by sexual minority women compared to heterosexual women.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"233 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142449435","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}
Nabamita Dutta, Russell S. Sobel, Adam Stivers, Thor Lienhard
{"title":"Opportunity and necessity entrepreneurship: do linguistic structures matter?","authors":"Nabamita Dutta, Russell S. Sobel, Adam Stivers, Thor Lienhard","doi":"10.1007/s11187-024-00972-6","DOIUrl":"https://doi.org/10.1007/s11187-024-00972-6","url":null,"abstract":"<p>A rapidly growing literature explores the link between linguistic structures and economic outcomes. The language a speaker uses systematically influences cognition, thinking, and thus behavior. It also influences the form and content of cultural information that is shared through time and generations. We examine how these linguistic structures influence entrepreneurship. Not all forms of entrepreneurship are equally conducive to, nor associated with, economic growth and prosperity. A distinction is often made between necessity entrepreneurship, which is a result of individuals being pushed into self-employment by adverse circumstances, and opportunity entrepreneurship in which individuals choose to pursue promising ideas. We find that countries with languages not dropping personal pronouns in their major spoken language, or those speaking a weak future time reference (FTR) language, have higher proportions of opportunity relative to necessity-driven entrepreneurs, and that this effect is stronger in countries with higher levels of economic freedom.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"33 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142448545","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":"Entrepreneurs’ impatience and digital technologies","authors":"S. Basiglio, A. Ricci, M. Rossi","doi":"10.1007/s11187-024-00974-4","DOIUrl":"https://doi.org/10.1007/s11187-024-00974-4","url":null,"abstract":"<p>This paper analyzes the impact of entrepreneurs’ preferences (impatience and risk attitudes) on firms’ propensity to invest in both general and digital technologies. Using data from the Rilevazione su Imprese e Lavoro (RIL) survey, conducted on a representative sample of Italian firms, we find that impatience significantly reduces the likelihood of adopting digital investments, even when controlling for risk preferences. To address potential endogeneity and simultaneity concerns, we implement an instrumental variable (IV) strategy, exploiting exogenous variation from exposure to earthquakes. The findings remain robust and highlight the crucial role of impatience in shaping investment decisions, particularly in digital technologies.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"95 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142439722","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 Moncada, Francesco Carbonero, Aldo Geuna, Luigi Riso
{"title":"Digital adoption and human capital upscaling: a regional study of the manufacturing sector","authors":"Roberto Moncada, Francesco Carbonero, Aldo Geuna, Luigi Riso","doi":"10.1007/s11187-024-00975-3","DOIUrl":"https://doi.org/10.1007/s11187-024-00975-3","url":null,"abstract":"<p>We study the effect of the diffusion of digitalization, measured as the level of expenditures in digital technologies, on labor demand within the manufacturing sector. We exploit unique information from a focus study of the quarterly survey of Unioncamere Piemonte (one of Italy’s most industrialized and technologically advanced regions) to measure the extent to which planned digital technologies investments impact hiring propensity, differentiated by educational level. Based on a representative sample of non-micro firms, our findings suggest a positive relationship between digital investments and the probability of hiring highly educated workers, mainly driven by the demand for individuals with a post-secondary technical institute (ITS) diploma and post-MSc qualifications or a PhD in STEM fields. Conversely, we also find that digital investments negatively influence the probability of hiring low-educated individuals, primarily referring to the demand for workers with secondary education. Our results reveal firms’ human capital upscaling dynamics powered by digitalization processes.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"13 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142443795","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}
Christopher J. Boudreaux, Steven W. Bradley, Anand Jha, Joao F. Mazzoni
{"title":"You are only as strong as your weakest link: Founder and community social capital and start-up survival","authors":"Christopher J. Boudreaux, Steven W. Bradley, Anand Jha, Joao F. Mazzoni","doi":"10.1007/s11187-024-00977-1","DOIUrl":"https://doi.org/10.1007/s11187-024-00977-1","url":null,"abstract":"<p>Social capital is important for organizational performance, but it can be a challenge for new firms to establish exchange relationships. While studies have focused on founder-level social ties and network effects on firm survival or performance, less attention has been given to the role of social capital within the community. We theorize that founder social ties are related to community social capital, which fosters varying levels of business opportunities. These relationships and business opportunities influence start-up survival. We test our hypotheses for a longitudinal cohort of new start-ups using Kauffman Firm Survey data merged with community social capital data. Our baseline model finds that a founder’s weak tie relationships—not strong ties—are associated with higher odds of start-up survival. Furthermore, we find that community-level social capital increases survival odds, particularly for founders who receive funding from weak-tie networks. Our study furthers our understanding of how community-level social engagement shapes founders’ social networks and firm survival odds through increased possibilities for exchange relationships.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"11 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142443796","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}
Jeffery S. McMullen, Magnus Henrekson, Lucia Naldi, Mikael Stenkula, Karin Thorburn, Caroline Wigren-Kristoferson, Joakim Wincent, Ivo Zander
{"title":"The psychology of entrepreneurial performance—theoretical and applied: Robert A. Baron and Michael Frese, co-recipients of the 2024 Global Award for Entrepreneurship Research","authors":"Jeffery S. McMullen, Magnus Henrekson, Lucia Naldi, Mikael Stenkula, Karin Thorburn, Caroline Wigren-Kristoferson, Joakim Wincent, Ivo Zander","doi":"10.1007/s11187-024-00958-4","DOIUrl":"https://doi.org/10.1007/s11187-024-00958-4","url":null,"abstract":"<p>Professors Robert A. Baron and Michael Frese are the joint recipients of the 2024 Global Award for Entrepreneurship Research. Their research contributions have helped establish the disciplinary foundation necessary to explore entrepreneurship from theoretical and applied psychological perspectives. From a theoretical psychological perspective, Professor Baron has repeatedly introduced a disciplinary scaffolding from cognitive psychology, social psychology, and judgment and decision-making psychology to develop the field’s socio-cognitive perspective. He has examined entrepreneurship’s basic “why” questions: (1) Why do some persons but not others choose to become entrepreneurs? (2) Why do some persons but not others recognize opportunities for new products or services that can be profitably exploited? (3) Why are some entrepreneurs so much more successful than others? From an applied psychological perspective, Professor Frese has examined entrepreneurship as the epitome of a proactive approach to work, advocating the benefits of personal initiative and the need for a self-regulatory approach to performance among both small business owners and employees in transition economies. Continually taking stock of what is known about the psychology of entrepreneurship through reviews and meta-analysis, he and his students have advanced an evidence-based approach to entrepreneurial training and performance in challenging contexts. Together, Professors Baron and Frese have served as ambassadors for the field of entrepreneurship, welcoming an entire generation of micro scholars to explore the entrepreneurial process and the psychology of the entrepreneurs who enact it.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"58 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142386280","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":"How unemployment benefit duration shapes startup motivation and growth","authors":"Sebastian Camarero Garcia, Martin Murmann","doi":"10.1007/s11187-024-00954-8","DOIUrl":"https://doi.org/10.1007/s11187-024-00954-8","url":null,"abstract":"<p>Business creation is economically important, and unemployment precedes the creation of a substantial share of new firms. Yet, most research has focused on analyzing the effects of unemployment insurance policies on re-employment outcomes, ignoring self-employment. In this paper, we analyze how the potential duration of unemployment benefits, a fundamental design choice of unemployment insurance systems, affects whether new firms are founded out of opportunity or necessity and their growth potential. To this end, we construct a comprehensive dataset on German firm founders that links administrative social insurance information with business survey data. Exploiting reform and age-related exogenous variation in the potential duration of unemployment benefits, we find that longer potential benefit duration implies longer actual unemployment and, as a consequence, more necessity entrepreneurship and worse startup outcomes in terms of sales and employment growth. We explain this overall effect of potential benefit duration through a mix of compositional and individual-level duration effects. Our findings underline that new firms started out of unemployment are a highly heterogeneous group and suggest that the (optimal) design of unemployment insurance systems has important externalities on whether innovation- and growth-oriented firms are started out of unemployment.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"1 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142386270","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}
Francesca Sanguineti, Antonio Majocchi, Christian Lechner
{"title":"From one to many: education, diversity, and international experience in habitual vs. one-time founders","authors":"Francesca Sanguineti, Antonio Majocchi, Christian Lechner","doi":"10.1007/s11187-024-00970-8","DOIUrl":"https://doi.org/10.1007/s11187-024-00970-8","url":null,"abstract":"<p>What sets apart entrepreneurs who continuously start new businesses from those who stick with their first venture? This paper delves into the characteristics that distinguish habitual founders from one-time founders. Analyzing a dataset of over 5000 individuals, we combine the concepts of cognitive entrenchment and human capital theory to uncover the general and specific traits that increase the likelihood of becoming a habitual founder. Our findings suggest that a higher level of education, diverse professional backgrounds, and international experience increase the chances of becoming a habitual founder. By exploring the backgrounds of habitual entrepreneurs, this study provides valuable insights for supporting and promoting an entrepreneurial career. </p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"26 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2024-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142384868","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":"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}