entrepreneurship

Using a survey of 4,553 entrepreneurs in 51 slums in Rio de Janeiro, the paper uses mean and quantile regression estimates to shows the effects of the type of initial capital, credit constraints, and human capital factors on entrepreneurs performance. The main findings are that entrepreneurs that were able to self-finance their business start-up presented earnings 16 percent greater than entrepreneurs that had to borrow their initial capital.

The paper discusses a two sector neoclassical overlapping generations
economy with intermediate and final goods in the spirit of Romer. The author finds that expected profits of monopolists do not vanish in equilibrium and that the level of economic performance is inefficiently low due to the presence of risk.

The paper investigates the effects of monopolistic competition on entrepreneurial risk taking in a general equilibrium model. Comparative static results show that too many firms remain in the market for an increase in the degree of risk aversion, thereby mutually deteriorating profit opportunities.

Using data from the Surveys of Consumer Finances, the author constructs a proxy for wealth based on the household’s home equity wealth at the time of the entrepreneurial decision. The results provide further evidence that the relationship between wealth and entering
entrepreneurship is only significant for high-wealth households and that liquidity constraints do not appear to bind for the majority of new entrepreneurs.

To what extent is the performance of a small business venture, once started, affected by capital constraints at the time of inception and by the business founder?s investment in human capital? The authors attempt to answer this question taking into account the potential endogeneity of human and financial capital, and also possible interdependence between these variables.

The authors explore whether illegal entrepreneurship experience (IEE), an unconventional form of human capital is related to the performance and motivation of existing legal businesses in a transition context. Based on data from 399 private
business owners in Lithuania, the regression results indicate that IEE is significantly associated with subjective measures of business motivation.

The paper provides an outline of the concept of regional growth regimes and empirically illustrates the relevance of the
concept. The empirical examples are entrepreneurship, entry and the performance of new businesses in East and West Germany.

The paper makes three contributions to the economics literature on entrepreneurship. While results indicate that this existing literature is good at explaining an individual’s propensity for self-employment, we find that entrepreneurial persistence is determined by a different model and unearth some new insights into the roles of early career experience, finance, role models, gender and the unemployment push effect.

The paper provides a critical overview of recent empirical research on the relationship between entrepreneurship and economic growth.

The paper argues that cost of capital comparisons across closely held companies and entrepreneurial ventures on the one hand and widely held companies on the other, ought not to be based on an equal level assumption regarding the investors’ required rates of return, net of taxes.