Small business economics

We study the extent of fraud in initial coin offerings (ICOs), and whether information disclosure prior to the issuance predicts fraud. We document different types of fraud, and that fraudulent ICOs are on average much larger than the sample average. Issuers who disclose their code on GitHub are more likely to be targeted by phishing and hacker activities, which suggests that there are risks related to disclosing the code. Generally, we find it extremely difficult to predict fraud with the information available at the time of issuance. This calls for the need to install a third party that certifies the quality of the issuers, such as specialized platforms, or the engagement of institutional investors and venture capital funds that can perform a due diligence and thus verify the quality of the project.

If somebody asked me to define David Audretsch in a few words, I would define him as the following: a great mind, an outstanding researcher, and a humble individual. Few people possess these three characteristics at the same time. His characteristics have entirely shaped my career, and David became my academic role model. The first time I met Prof. Audretsch was when I was offered a position as his research assistant for a project on the economic performance of cities in the spring of 2010. Although I used to hear his name mentioned as the most productive scholar at the School of Public and Environmental Affairs (SPEA) at Indiana University-Bloomington, I had not found a chance to meet him. Two other research assistants and I worked hard to finish the project; we spent close to 3 months preparing a report while receiving regular feedback from Prof. Audretsch. After we submitted the project to him, he worked on it for only a few days, and we realized that he had completely updated what we wrote. I was really impressed by what he accomplished in a few days, as his version was a much better and more highly-developed paper compared to the version that three research assistants prepared over 3 months. However, he appreciated our efforts and told us that our product was very good. The next time I interacted with Prof. Audretsch is when I went for an overseas study at the Hertie School of Governance in Berlin (Germany) in May 2010, which was organized by SPEA. When I saw the course advertisement, I found that Prof. Audretsch was leading the program, and I did not want to miss this opportunity. I wanted to learn useful information from him, hear his stories (since he is a great storyteller with outstanding experiences of the Cold War in Berlin), visit high quality German institutions with him and other classmates, motivate myself to work harder (as he is also a great motivator), and start writing my papers on organizational change and innovation in public organizations.

Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation that incorporates information on innovation success from firm surveys along with the usual R&D expenditures and productivity measures. We then apply the model to data on Italian SMEs from the “Survey on Manufacturing Firms” conducted by Mediocredito-Capitalia covering the period 1995–2003. The model is estimated in steps, following the logic of firms’ decisions and outcomes. We find that international competition fosters R&D intensity, especially for high-tech firms. Firm size and R&D intensity, along with investment in equipment, enhances the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on firm’s productivity, especially process innovation. Among SMEs, larger and older firms seem to be less productive.

This study focuses on the embryonic stages of the COVID-19 pandemic in China, where most people affected opted to abide by the Chinese government’s national self-quarantine campaign. This resulted in major disruptions to one of the most common market processes in retail: food retailing. The research adopts the theory of planned behaviour to provide early empirical insights into changes in consumer behaviour related to food purchases during the initial stages of the COVID-19 outbreak in China. Data from the online survey carried out suggest that the outbreak triggered considerable levels of switching behaviours among customers, with farmers’ markets losing most of their customers, whilst local small independent retailers experienced the highest levels of resilience in terms of customer retention. This study suggests avenues for further scholarly research and policy making related to the impact this behaviour may be having around the world on society’s more vulnerable groups, particularly the elderly.

This article proposes that individual small firms, just like large firms, use different approaches to make strategy. Three processes relevant to small firms are identified: simplistic, participative and adaptive. The article examines how these processes are related to performance, depending on industry life cycle stage. Empirical analysis indicates that all three approaches are related to small firm performance, but that

This paper aims to contribute to our understanding of the factors influencing South Asian entrepreneurial growth in Britain. It develops a multivariate model along the lines of small business economics but includes cultural and social variables. The theoretical model specified assumes that cultural factors have an augmenting effect on socio-economic factors. A distinction is also drawn between initial entrepreneurial characteristics and later expansion strategies used. The empirical model, based on the general-to-specific approach, can explain almost 60 per cent of entrepreneurial growth. The results suggest that moving away from a style of management based on immigrant culture has a positive impact on growth. This requires greater delegation of responsibilities to non-family employees. At the same time, strengthening links with the country of origin has a positive impact on growth. While the commitment to work hard at start-up is essential, human capital factors like the entrepreneur's educational attainment and employee training appear to be more crucial than financial resources in contributing to growth.

Building on institutional theory and on existing literature regarding barriers to private businesses in transition countries, this paper examines the inter-related effect of nineteen factors grouped into four types of barriers (formal, informal, environmental and skills) on existing small- and medium-sized enterprise operations in Lithuania. Regression analyses on a sample of 332 business owners indicate that perceived formal barriers are associated with perceived informal barriers such as corruption and perceived environmental barriers are associated with perceived skill barriers such as management problems. The transition effect based on business start-up date was not found to play a significant role.

The aim of this paper is to contribute to an understanding of the entrepreneurship process in Africa byevaluating the link between starting up unregistered and future
firm performance. The widespread assumption has been that firms starting up unregistered in the informal economy suffer from poor performance compared to those starting up registered and in the formal economy. To test this poorer performance thesis, World Bank Enterprise Survey (WBES) data is evaluated from across 41 African countries covering the period from 2006 to 2013. Controlling for a comprehensive set of other determinants of firm performance, the finding is that formal enterprises with five or more employees that started up unregistered have significantly higher annual sales, employment and productivity growth rates compared with those firms that registered their operations at startup. The paper concludes by discussing the theoretical and policy implications of this finding.

... Five Years; Steven Brandt's Entrepreneuring: The Ten Commandments for Building a Growth Company; Peter ... it has failed to yield a clearcut and unambiguous operational concept ofentrepreneurship. ... illuminating the nature of entrepreneur-ship and its role in economic theory. ...

The COVID-19 crisis presents manifest threats for entrepreneurs since their business survival is often directly at stake given the alarming economic downturn. This existential threat, together with their crucial role in the economy, is the reason for the plethora of public financial support schemes being implemented throughout the entire world. However, support schemes for mental health are lacking. We aim to investigate, first, whether burnout levels have increased during the crisis and, second, whether burnout levels during the COVID-19 crisis depend on the threat of becoming ill, having to stay at home due to the lockdown, and/or having to file for bankruptcy due to the economic downturn. We do so using seven data sets of French entrepreneurs with a temporal comparison of averages and two data sets of French entrepreneurs with a cross-sectional analysis of individuals. Our findings show that indeed, the risks of burnout have increased during the pandemic and that the threat of ba...

Abstract We adopt a generational perspective to investigate entrepreneurial orientation (EO) in family firms. We test a model that determines how the influence on EO of external factors and internal factors differs in first-, second-and third-and-beyond-genera-tion family firms. We ...

Entrepreneurship involves human agency. The entrepreneurial process occurs because people are motivated to pursue and exploit perceived opportunities. It is rooted in the theory that action is the result of motivation and cognition. Therefore, this paper applies elements of goal theory and social cognitive theory to develop a motivational model of nascent entrepreneurial start-up outcomes. The objective of this model is to renew attention on motivational constructs in entrepreneurship research. Additionally, it provides predictive value for the likelihood of new firm founding among nascent entrepreneurs. Results suggest that motivational antecedents among nascent entrepreneurs significantly influence the likelihood of quitting the start-up process versus continuing nascent entrepreneurial start-up efforts.

Although there is a high level of practitioner, policymaker, and scholar interest in social entrepreneurship, most research is based on case studies and success stories of successful social entrepreneurs in a single country. We develop a methodology to measure population-based social entrepreneurship activity (SEA) prevalence rates and test it in 49 countries. Our results provide insights into institutional and individual