Vilma Chila, Shivaram V. Devarakonda, Xavier Martin
{"title":"Pre-entry experience, knowledge inheritance, and entrepreneurial resource mobilization","authors":"Vilma Chila, Shivaram V. Devarakonda, Xavier Martin","doi":"10.1007/s11187-025-01003-8","DOIUrl":"https://doi.org/10.1007/s11187-025-01003-8","url":null,"abstract":"<p>We study the conditions under which founders’ pre-entry experience in the industry affects the prospects of new ventures mobilizing financial resources. Drawing on signaling theory, we theorize that the signal value of pre-entry experience is contingent on the extent to which new ventures leverage such experience as well as the environmental context in which they operate. Specifically, we argue that knowledge linkages to founders’ former employer increase the clarity of the pre-entry experience signal. We further posit that this clarified pre-entry experience signal is more valuable in competitive environments. We investigate these effects by focusing on the time to first VC funding for startups in the US semiconductor industry. We show that (1) knowledge linkages to the founders’ previous employer accentuate the effect of pre-entry experience by further shortening the time to VC funding and (2) this shortening in time is more significant when the industry clustering is high.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"11 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143077449","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}
Matthew R. Marvel, Brian D. Webster, Donald F. Kuratko, David B. Audretsch
{"title":"Matching entrepreneurs with coaches to ignite entrepreneurial learning","authors":"Matthew R. Marvel, Brian D. Webster, Donald F. Kuratko, David B. Audretsch","doi":"10.1007/s11187-025-01000-x","DOIUrl":"https://doi.org/10.1007/s11187-025-01000-x","url":null,"abstract":"<p>Entrepreneur coaching is pervasive across startup ecosystems, yet the question remains as to whether the coach-entrepreneur match links to action and venture performance. Our study integrates coaching and entrepreneurial learning research to advance a theoretical logic of knowledge-based situations (between the coach and the entrepreneur) that convert to entrepreneur customer involvement. Drawing on a sample of 639 dyads of coaches and entrepreneurs, we find support for a mediating model where knowledge-based situations (between the coach and the entrepreneur) are associated with entrepreneur customer involvement and the exploitation of novel products. Although prior research focuses on the benefits of coach and coachee similarities, we shed light on the advantages of incongruent knowledge—defined as differences in customer knowledge.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"1 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143072175","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":"Neo-Schumpeterian growth theory: missing entrepreneurs results in incomplete policy advice","authors":"Magnus Henrekson, Dan Johansson","doi":"10.1007/s11187-024-00994-0","DOIUrl":"https://doi.org/10.1007/s11187-024-00994-0","url":null,"abstract":"<p>The neo-Schumpeterian growth models, which appeared in the early 1990s, have ostensibly reintroduced the entrepreneur into mainstream growth theory. However, we show that by ignoring genuine uncertainty and by assuming that profits follow an objectively true and <i>ex ante</i> known probability distribution, the entrepreneur is made redundant. Thus, the theory fails to exhaustively explain innovation, the role of ownership competence, profits, the function of financial markets, wealth and income distribution, and, ultimately, economic growth. These shortcomings risk leading to erroneous or overly narrow policy conclusions by overestimating the importance of supporting R&D investments. Rather, the presence of genuine uncertainty forms a fundamental theoretical basis for the importance of new venture creation as a source of innovation-driven growth; entrepreneurs must establish and expand firms to capture the subjectively perceived profit opportunities. Therefore, tax policy is decisive for the commercialization and dissemination of innovations by providing incentives to uncertainty-bearing, not only for entrepreneurs, but also for intrapreneurs and financiers taking an active part in the governance and development of firms based on innovations characterized by genuine uncertainty. Furthermore, taxation can distort the evolutionary selection of innovations and firms, for instance, by taxing owners and firms differently.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"59 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143049975","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}
Erik E. Lehmann, Julian Schenkenhofer, Silvio Vismara
{"title":"Hidden champions and knowledge spillovers: innovation-enhancing agglomeration effects and niche technology specificity","authors":"Erik E. Lehmann, Julian Schenkenhofer, Silvio Vismara","doi":"10.1007/s11187-025-00999-3","DOIUrl":"https://doi.org/10.1007/s11187-025-00999-3","url":null,"abstract":"<p>To achieve market and technology leadership, innovation is essential for niche market leaders. While research suggests that regions benefit economically from a high concentration of niche market leaders, it is still unclear which role locating close to one another plays for their innovation performance. Therefore, we contribute to existing literature that studies external factors of firm-level innovation. We analyze 1372 German niche market leaders and study whether (1) being located in a cluster improves their innovation performance and (2) if the impact of locating in a cluster varies depending on the diversity of industries within the cluster. We measured the spatial agglomeration using the location quotient. Our findings show that being located in a cluster increases the patenting rate by 1.49 times. This effect is more pronounced in clusters with more diverse industries, indicating a lower level of technology specificity. This suggests that technology specificity has an impact on a company’s ability to take advantage of positive knowledge from other companies in the same cluster. Finally, we conducted several tests to ensure the robustness of our analysis. The Modifiable Areal Unit Problem (MAUP) refers to the discretionary choice of the spatial unit, and we tested different spatial unit levels to account for this. Additionally, we used entropy balancing to confirm the positive effect of cluster location on innovation, comparing with a control set of mass-market firms. Our study concludes with implications for both corporate management and public policy.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"7 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143044113","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}
David Heller, Pantelis Karapanagiotis, Øivind A. Nilsen
{"title":"Small and vulnerable during crises? Firm size and financing constraint dynamics","authors":"David Heller, Pantelis Karapanagiotis, Øivind A. Nilsen","doi":"10.1007/s11187-024-00996-y","DOIUrl":"https://doi.org/10.1007/s11187-024-00996-y","url":null,"abstract":"<p>This study analyzes the dynamics of financing constraints under changing economic conditions and the role of firm size in this context. Using administrative data from Germany, we quantify financing constraints expressed as the probability that a firm encounters excess demand or excess supply. On average, small- and medium-sized enterprises (SMEs) are indeed more likely than larger firms to face excess demand for loans. Using the Great Financial Crisis as an empirical setting, we show that tightening financing conditions do not affect smaller firms disproportionally, but generally risky borrowers. Importantly, post-crisis trends in debt-ratios, profitability, investments, and employment are similar irrespective of firm size, while smaller firms respond to the economic slowdown by persistently building up cash buffers. Our results urge policymakers to consider specific characteristics of bank-dependent firms to assess their exposure to economic crises—instead of focusing on size as vulnerability criteria per se.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"120 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143027148","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}
Nicola Del Sarto, Elisa Bocchialini, Lorenzo Gai, Federica Ielasi
{"title":"The influence of venture capital and university ownership on spin-off’s bank loan access: a synergistic effect","authors":"Nicola Del Sarto, Elisa Bocchialini, Lorenzo Gai, Federica Ielasi","doi":"10.1007/s11187-024-00995-z","DOIUrl":"https://doi.org/10.1007/s11187-024-00995-z","url":null,"abstract":"<p>University spin-offs (USOs) often face difficulties obtaining bank loans due to the perceived riskiness of their technologies. This study investigates the role of venture capitalists (VCs) and university ownership in facilitating bank debt for USOs, focusing on their impact on access to long-term financing. Using a fixed-effect panel data model on 1594 Italian USOs between 2012 and 2022, the findings indicate that VC support enhances access to bank loans, particularly long-term ones. Moreover, the presence of university equity ownership further strengthens the effect of VC support by serving as an additional positive signal to banks. The results highlight the synergistic role of VCs and universities in increasing the creditworthiness of spin-offs. This study contributes to entrepreneurial finance and academic entrepreneurship by showing that the combination of VC and university involvement significantly improves access to bank debt, thereby promoting the sustainable growth of university spin-offs.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"7 1 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143020482","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}
Evelien P. M. Croonen, Florian Noseleit, Michael Wyrwich
{"title":"From values to ventures: how value priorities influence entrepreneurial well-being","authors":"Evelien P. M. Croonen, Florian Noseleit, Michael Wyrwich","doi":"10.1007/s11187-024-00984-2","DOIUrl":"https://doi.org/10.1007/s11187-024-00984-2","url":null,"abstract":"<p>We highlight the importance of considering diversity in individuals’ value priorities and their career and venture types to explain different dimensions of eudaimonic well-being. Analyzing European Social Survey data, we find that individuals who value openness to change are more likely to become entrepreneurs than employees, regardless of the sector in which they operate. In contrast, those who value self-transcendence are more inclined to pursue entrepreneurship in socially-oriented sectors. Related to eudaimonic well-being outcomes, entrepreneurs in other sectors tend to experience higher levels of autonomy in life. Furthermore, we observe that entrepreneurs in both socially-oriented and other sectors report a higher sense of meaningfulness in life than employees, but the effect is stronger for entrepreneurs in socially-oriented sectors. A key practical takeaway is that individuals should identify their core values to pursue (entrepreneurial) career types that align with these values, enhancing specific aspects of eudaimonic well-being. Similarly, policymakers and educators can encourage value-based career choices through public awareness campaigns and by integrating values into educational programs, ultimately improving well-being of societal members.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"13 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142991208","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":"Balancing act or two roads to travel: Evaluating the trade-offs between digitalization and net zero innovation in SMEs","authors":"Effie Kesidou, Anastasia Ri, Stephen Roper","doi":"10.1007/s11187-025-00998-4","DOIUrl":"https://doi.org/10.1007/s11187-025-00998-4","url":null,"abstract":"<p>As firms face the dual challenges of digitalization and net zero innovation to combat climate change, understanding how these twin transitions relate is crucial. This study examines potential synergies or trade-offs between digital technologies and net zero innovations in UK SMEs. By integrating the Resource-Based View (RBV) and the Attention-Based View (ABV), we explore how categories of digital adopters relate to categories of net zero innovation adopters. Utilizing novel survey data for 964 UK SMEs, we employ ordered Probit estimation to examine the relationship between digital and net zero adoption. Our results reveal that digitally advanced SMEs are more likely to be advanced adopters of net zero innovations, suggesting that digital complementarities and enhanced capabilities can reinforce environmental innovations that reduce carbon emissions. We offer valuable contributions for both theory and practice, highlighting the importance of supporting SMEs in their twin transitions.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"37 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142990246","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":"Truth, knowledge, and entrepreneurship theory: arguments for a rationalist scientific epistemology","authors":"Mark D. Packard, Per L. Bylund","doi":"10.1007/s11187-024-00993-1","DOIUrl":"https://doi.org/10.1007/s11187-024-00993-1","url":null,"abstract":"<p>The replication crisis has cast social science’s epistemological foundations into question. So far, entrepreneurship scholars have responded by advocating more transparency in data collection and analysis, better empirical methods, and larger and more representative data. Here, we explore the possibility that the problem may be innate to empiricism itself within the social sciences, generally, and entrepreneurship theory, specifically. We review classical arguments and introduce new ones about how and why the weaknesses of empiricism—such as challenges of unobservability—are exacerbated in the study of human behavior, which weaknesses manifest centrally in entrepreneurship theory. These arguments suggest that social science as principally an empirical endeavor may be foolhardy, particularly in the highly agentic entrepreneurship discipline. Herein we propose a radical solution: a rationalist scientific paradigm, where phenomenological reasoning, rather than observation, is paramount. This proposal rests upon arguments that empiricism’s innate limitations can be overcome, albeit not entirely, by its rationalist counterpart. We can, we argue, develop robust scientific foundations—even laws as valid as those of the natural sciences—for entrepreneurship theory through a formal rationalist approach. These laws would necessarily be few but would serve as a much stronger foundation for entrepreneurship theory than the empirical contingencies that we observe. We conclude by illustrating what such a rationalist management program might look like for entrepreneurship scholars with Bylund’s entrepreneurial theory of the firm.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"31 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142989824","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":"Gender differences in entrepreneurial equity financing—a systematic literature review","authors":"Kevin Koziol, Maja Schmitz, Suleika Bort","doi":"10.1007/s11187-024-00989-x","DOIUrl":"https://doi.org/10.1007/s11187-024-00989-x","url":null,"abstract":"<p>A growing body of literature explores whether and why female and male entrepreneurs differ in their access to equity financing. This trend has led to an increasing fragmentation of the research field, as many studies analyze various mechanisms and focus on a certain form of equity financing. To advance research on gender differences in equity financing, it is necessary to identify patterns and inconsistent findings in the literature related to these mechanisms. Therefore, we perform a systematic literature review to provide an overview of the current state of knowledge on gender differences in the key forms of entrepreneurial equity financing (venture capital, angel investment, and equity crowdfunding). Based on 75 studies from 2001 to mid-2024, our review indicates that male entrepreneurs have an advantage in raising capital from venture capitalists and business angels, whereas female entrepreneurs are more successful in equity crowdfunding. These gender differences stem from a complex combination of mechanisms, which we categorize into four thematic dimensions that capture entrepreneurs’ characteristics, investors’ characteristics, the ventures’ characteristics and strategies, and contextual factors. We propose specific future research directions for each dimension, and discuss theoretical and methodological research opportunities that are applicable across dimensions to improve our understanding of gender differences in equity financing.</p>","PeriodicalId":21803,"journal":{"name":"Small Business Economics","volume":"43 1","pages":""},"PeriodicalIF":6.4,"publicationDate":"2025-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142986782","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}