Small Business Economics最新文献

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.