Small Business Economics最新文献

This study examines the impact of an expansion of financial support to compensate for the business hour restrictions during the early COVID-19 pandemic on the entry of dine-in restaurants in the market. During this period, the local governments provided financial support to all restaurants to alleviate the urgent need for relief. This support was given regardless of their past performance, and it coincidentally provided an opportunity for new entrants that met certain criteria to receive support. Based on Japanese administrative data and a difference-in-differences estimation, our study shows that the expansion of financial support led to an increase in the number of dine-in restaurants. We also observed that the impact is more significant in areas with lower opening and operating costs, but it does not vary based on an index of potential sales. These results confirm that indiscriminate reduction of entry barriers could lead to the entry of less profitable and marginal new firms. Moreover, financial support led to a decrease in restaurant exits, especially of low-productive ones.

The unexpected outburst of the COVID-19 pandemic in the USA in March 2020 hit small businesses across the country, triggering mass job losses and closures. Beyond the severity of the pandemic itself, policy responses adopted by state governments produced yet another set of changes in small business operating environments. Using data from the Small Business Pulse Survey and the Current Population Survey, this paper provides evidence of how small businesses experienced these policy changes during the first few months of the pandemic in terms of perceptions of the pandemic, adjustments in employment levels, and employee schedule, as well as changes in overall self-employment activity. Policy variables include the Paycheck Protection Program (PPP) and a State Orders database. We find that the PPP per firm on the state level has a strong positive impact on lessening firms’ negative perceptions, alleviating the need to downsize, and recovering self-employment activities. The lifting of shelter-in-place, non-essential business closures, and restaurant dine-in services restrictions all helped, though their impact was more modest than PPP’s. The magnitudes of both effects vary by industry and owner groups.

Although family firms are ubiquitous, their prevalence displays major geographic disparities and their performance differs across regions. We review an extensive literature showing that formal institutional factors play a key role in explaining variations in the diffusion of family firms and their performance. We also review a more neglected but rapidly emerging stream of research focusing on culture as a source of these variations. By providing a framework for current theories, findings and methods, we demonstrate how cultural elements such as trust, religion, family values and collectivism provide useful answers to where and why family firms exist, and how well they perform.

The study investigates the role of market-based finance and public financial support in aiding scaling up by European SMEs. First, we analyse the impact of public loan guarantee schemes on firms’ access to market-based instruments. Second, we study whether firms’ access to market-based finance and the use of public grants boost a firm’s (ex post) growth. The analysis is based on a unique and original dataset of about 31,000 Eurozone firms in the 2009–2020 period. The study finds that firms’ access to market-based finance is (i) driven positively by the previous use of public financial support schemes and (ii) has a positive effect on subsequent growth. In particular, SMEs display relatively higher growth in fixed assets, while for large firms, growth is mainly driven by current assets. Moreover, SME issuers using public grants achieve significantly stronger growth than comparable firms.

This paper explores how entrepreneurs engage in prototyping as part of the venture development process. We conduct a qualitative field study of 156 instances of prototyping across eight venture development processes. From a theoretical perspective, we build on alternative and complementary views of entrepreneurial action and their implicit modes of prototyping, emphasizing experimentation and transformation. Our findings identify three important themes in the prototyping process. These include purposes where the entrepreneurs use prototyping for either flexible experimentation or directed transformation. Further, the entrepreneurs predominantly engage in prototype recycling and skills bricolage when prototyping. Accordingly, the studied entrepreneurs carefully navigate purpose and resource investments in prototyping, making extensive use of their existing resource base of skills and prototypes. After noting the positive aspects of prototyping, we also discuss the potentially destructive outcomes of misapplied prototyping in the form of prototyping myopia and problematic path dependencies of the different ways of prototyping.

Spouses are known to play a critical supportive role for the self-employed, yet very little evidence is available concerning how entrepreneurial pursuits affect the spouse. The present analysis offers a contribution by evaluating short-term psychological well-being dynamics among spouses of individuals entering self-employment, using panel survey data from Australia. We construct matched control samples based on a range of relevant characteristics to mitigate selection bias and find that spouses of self-employed individuals report substantially higher levels of well-being before entry into self-employment and experience a modest but statistically significant decrease in well-being following entry. This is consistent with the hypothesis that self-employment demands substantial psychological capital from spouses. These patterns hold for both genders, with only moderate gender differences identified. In contrast, spouses of those entering self-employment from unemployment report improvements in well-being.

Does improved access to financial sources increase entrepreneurship across gender? We explore this question in the Indian context, by constructing a novel measure of financial access defined as the distance of each unbanked village to the nearest banked centre. Using economic census data at the village level, we find that the proximity of an unbanked village to a banked centre within 5 km increases entrepreneurship in the non-agricultural sector. While exploring the mechanisms, we find that the impact on women is driven by the uptake of institutional credit. The prevailing norms around gender influence the gains from bank proximity as the impact on women enterprises occurs mainly in villages which have liberal social norms. Results hold when we use the number of branches within 5 km as an alternate measure of financial access. Results are robust to several additional tests. Our results show that the lack of nearby banking facilities represents a key constraint for women, and hence, widespread banking outreach can boost female entrepreneurship in rural areas.

Using both regression analysis and an unsupervised graphical model approach (never applied before to this issue), we confirm the rejection of Gibrat’s Law (stating that a firm’s growth is independent of that firm’s initial size) when our firm-level data are considered over the entire investigated period, while the opposite is true when we allow for market selection; indeed, the growth behavior of the surviving most efficient firms is in line with Gibrat’s Law. This evidence reconciles early and current literature and may have interesting implications in terms of both theoretical research and policy suggestions regarding subsidies to small firms, which do not necessarily grow faster than their larger counterparts.

This paper examines the causal impact of immigration on entrepreneurship among US-born non-Hispanic whites in non-agricultural private sectors from 1980 to 2018. Using self-employment as a proxy for entrepreneurship and distinguishing between incorporated individuals and unincorporated self-employed workers, I find a sizable negative impact of immigration on native self-employment. Importantly, this effect is consistent across incorporated and unincorporated self-employment and remains robust across demographic groups based on gender, age, and education. Results are robust to the choice of controls and estimation methods.