Ingrid Verheul

Start-Up Capital: "Does Gender Matter?"

Female and male entrepreneurs differ in the way they finance their businesses. This difference can be attributed to the type of business and the type of management and experience of the entrepreneur (indirect effect). Female start-ups may also experience specific barriers when trying to acquire start-up capital. These may be based upon discriminatory effects (direct effect). Whether gender has an impact on size and composition of start-up capital and in what way, is the subject of the present paper. The indirect effect is represented by the way women differ from men in terms of type of business and management and experience. The direct effect cannot be attributed to these differences and is called the gender effect. We use of a panel of 2000 Dutch starting entrepreneurs, of whom approximately 500 are female to test for these direct and indirect effects. The panel refers to the year 1994. We find that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital. On average the proportion of equity and debt capital (bank loans) in the businesses of female entrepreneurs is the same as in those of their male counterparts.

An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture

The level of entrepreneurship differs considerably across countries and periods. Both thecauses and consequences of entrepreneurship are a matter of extensive scientific debate aswell as of great policy importance. A high level of entrepreneurial activity is assumed andshown to contribute to innovative activities, competition, economic growth and job creation.The present paper deals with the determinants of entrepreneurship. An eclectic theory ofentrepreneurship is introduced. This eclectic theory provides an integrated framework,drawing on disparate strands of literature, to create a better understanding of the different rolethat entrepreneurship plays in different countries and time periods. This framework isdesigned to guide future empirical research in this area and to provide insights forpolicymakers striving to promote entrepreneurship.

Explaining female and male entrepreneurship at the country level

Using Global Entrepreneurship Monitor data for 29 countries this study investigates the (differential) impact of several factors on female and male entrepreneurship at the country level. These factors are derived from three streams of literature, including that on entrepreneurship in general, on female labour force participation and on female entrepreneurship. The paper deals with the methodological aspects of investigating (female) entrepreneurship by distinguishing between two measures of female entrepreneurship: the number of female entrepreneurs and the share of women in the total number of entrepreneurs. The first measure is used to investigate whether variables have an impact on entrepreneurship in general (influencing both the number of female and male entrepreneurs). The second measure is used to investigate whether factors have a differential relative impact on female and male entrepreneurship, i.e. whether they influence the diversity or gender composition of entrepreneurship. Findings indicate that – by and large – female and male entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors (e.g. unemployment, life satisfaction) we find a differential impact on female and male entrepreneurship. The present study also shows that the factors influencing the number of female entrepreneurs may be different from those influencing the share of female entrepreneurs. In this light it is important that governments are aware of what they want to accomplish (i.e. do they want to stimulate the number of female entrepreneurs or the gender composition of entrepreneurship) to be able to select appropriate policy measures.

Gender Differences in Strategy and Human Resource Management The Case of Dutch Real Estate Brokerage

The present study aims at investigating the existence of gender differences in entrepreneurship. The focus is on differences in strategy and human resource management (HRM) between male and female entrepreneurs in Dutch real estate brokerage. Several propositions are explored using data from in-depth interviews. The present study shows that gender differences in entrepreneurship do exist. In particular, there are gender differences with respect to the path to entrepreneurship, growth-levels, degree of diversification and type of leadership.

Entrepreneurial diversity and economic growth

Most studies investigating the relationship between entrepreneurship and economic growth treat entrepreneurs as a homogeneous group. This study investigates the impact of entrepreneurial diversity on national economic growth. Using data for 36 countries participating in the Global Entrepreneurship Monitor we investigate whether the impact on growth depends on socio-demographic diversity in entrepreneurship (in terms of age, education and gender). We find that in less developed countries older and higher educated entrepreneurs are particularly important for stimulating economic growth, while for developed countries younger entrepreneurs are more important. Accordingly, policy should aim at stimulating particular groups of entrepreneurs, rather than just the number of entrepreneurs.

Regional opportunities and policy initiatives for new venture creation

This article investigates the determinants of new venture creation across industries and locations for 103 Italian provinces between 1997 and 2003. Allowing for differences in regional opportunities across industries, we investigate the impact of a range of factors, including policy initiatives, on new firm formation in manufacturing, retailing and wholesaling, hotels and restaurants. Our results show that regions with industrial districts are characterized by higher start-up rates in manufacturing and that wage costs deter entry in this industry. Firm entry in commercial sectors appears to be higher in large cities and areas with strong economic progress. For hotels and restaurants we find that tourism positively influences new firm formation. We do not find a significant effect of recently introduced regional laws promoting new firm formation in Italy. Le présent article analyse quels ont été les facteurs déterminants de la création de nouvelles entreprises dans les secteurs et les sites industriels de 103 provinces italiennes, entre 1997 et 2003. Tout en tenant compte des différences que présentent les possibilités régionales dans toutes les industries, nous étudions les conséquences que peuvent avoir un certain nombre de facteurs — dont les initiatives stratégiques — sur la création de nouvelles entreprises dans les domaines de la fabrication, du commerce de détail et de gros, de l’hôtellerie et de la restauration. Les résultats que nous avons obtenus indiquent que les régions dotées de zones industrielles se caractérisent par des taux de démarrage d’entreprises manufacturières plus élevés et que les charges salariales découragent la pénétration dans cette industrie. L’entrée d’entreprises dans les secteurs commerciaux semble être plus encourageante dans les grandes villes et dans les zones à grand progrès économique. En ce qui concerne les hôtels et les restaurants, nous avons remarqué que le tourisme influence favorablement la création de nouvelles entreprises. Nous n’avons pas constaté que les règlementations régionales, récemment introduites, avaient un impact particulier sur la création de nouvelles entreprises en Italie. Este artículo investiga los factores determinantes de la creación de empresas en los sectores y localizaciones industriales de 103 provincias italianas entre 1997 y 2003. Teniendo en cuenta las diferencias de las oportunidades regionales en todas las industrias, investigamos el impacto de una serie de factores entre los que se incluyen las iniciativas de política, sobre la creación de nuevas empresas en la fabricación, el comercio mayorista y minorista, los hoteles y restaurantes. Nuestros resultados indican que las regiones con distritos industriales se caracterizan por un índice más alto de puesta en marcha de empresas fabriles y que los costes salariales impiden la entrada en esta industria. La entrada de empresas en los sectores comerciales parece más alta en las ciudades grandes y en las zonas de gran progreso económico. En cuanto a los hoteles y restaurantes encontramos que el turismo tiene una influencia positiva sobre la creación de nuevas empresas. No encontramos ningún efecto significativo de las leyes regionales recién introducidas para fomentar la creación de nuevas empresas en Italia. Dieser Artikel untersucht die ausschlaggebenden Faktoren für Unternehmensneugründungen in verschiedenen Industriezweigen und Standorten in 103 italienischen Provinzen zwischen 1997 und 2003. Unter Berücksichtigung der Unterschiede regionaler Möglichkeiten in den verschiedenen Industriezweigen untersuchen wir dien Auswirkungen einer Reihe von Faktoren, einschließlich Projektinitiativen zu neuen Firmengründungen in Produktion, Einzelhandel, Großhandel, Hotel- und Gastronomiegewerbe. Unsere Ergebnisse zeigen, dass Regionen mit Industrievierteln durch höhere Neugründungszahlen in der Produktion charakterisiert werden, und dass Lohnkosten vom Eintritt in diesen Industriezweig abschrecken. Unternehmensgründungen im Handel scheinen in größeren Städten und in Gegenden mit starkem wirtschaftlichen Fortschritt zahlreicher zu sein. Im Bereich des Hotel- und Gastronomiegewerbes stellen wir fest, dass Tourismus die Neugründung von Unternehmen positiv beeinflusst. Wir konnten keine erheblichen Auswirkungen der erst kürzlich eingeführten regionalen Gesetze zur Förderung von Unternehmensneugründungen in Italien feststellen.

What determines the growth ambition of Dutch early-stage entrepreneurs?

This paper investigates the determinants of the ambition to grow among Dutch early-stage entrepreneurs. We use GEM adult population survey data for The Netherlands. Merging cross-sectional data of the years 2002-2007 leads to a sample of 409 nascent entrepreneurs and 336 young business owners. Growth ambition is measured by asking respondents which statement fits him or her best: 1) I want my company to be as large as possible; 2) I want a size I can manage myself or with a few key employees. We find that nascent entrepreneurs and young business owners are equally likely to strive after growth. For nascent entrepreneurs fear of failure and entrepreneurial self-efficacy are important factors explaining growth ambition. Starting a business because of perceiving and exploiting a business opportunity (as opposed to necessity entrepreneurship) is an important driver of growth ambition for all early-stage entrepreneurs, but in particular for nascents.

The Entrepreneurial Ladder in Transition and Non-Transition Economies

This paper compares (former) transition and non-transition economies in Europe and Asia with respect to the opportunities available to achieve entrepreneurial progress. In addition, the differential impacts of three perceived environmental barriers to new venture creation are investigated. Entrepreneurial progress is measured using five levels of incremental entrepreneurial involvement. Data from the 2009 “Flash Eurobarometer Survey on Entrepreneurship, No. 283” by the European Commission, which covers all 27 EU Member States, five other European countries, China, Japan, South Korea, and the U.S., are used. China is found to have a forward position during the early stages of entrepreneurial progress, which contrasts with a lack of early-stage entrepreneurial potential in Japan and South Korea. However, converting nascent activities into a business start-up seems to be the most difficult in China and the U.S. Furthermore, we find that perceived environmental constraints hinder entrepreneurial progress most in (former) European transition countries.

Determinants of Entrepreneurship in the United States of America

The recent history of entrepreneurship in the UnitedStates is examined, as well as the policies and institutions affectingentrepreneurship.The rise of Californias Silicon Valley in 1980s was oneof the first indications that entrepreneurship is a vital part of the U.S.economy. While large flagship corporations like IBM were governed by rules andhierarchical decision-making structures, Silicon Valley entrepreneurs valuedspontaneity, openness, and a scorn for rules and hierarchies.Suchattitudes have created a favorable entrepreneurial climate in the UnitedStates.High levels of entry and exit rates suggest that theentrepreneurial impulse is alive and well.The popularity ofentrepreneurial activities may be attributed to the fact that starting abusiness in the United States, where employment structures are flexible, isfairly easy.The high supply of business owners meets the demand forentrepreneurship that has accompanied the shift in the U.S. comparativeadvantage away from traditional industry and labor and toward technology andknowledge.Furthermore, the policies of American institutions effectivelymatch the supply of entrepreneurs to the demand for entrepreneurship; morespecifically, entrepreneurs (including those with a failed business) havelittle difficulty in procuring assistance from banks, and few regulations existregarding the starting of new businesses, which is especially appealing toimmigrants and minorities. While the United States has managed to create an entrepreneur-friendlyenvironment, other countries must recognize that attempts to emulate only onepart of the U.S. system are likely to fail.To stimulate entrepreneurshipaccording to the American model, countries must take a systemic approach toinstitutional reform. (SAA)

Determinants of Entrepreneurship in France

The recent decline of entrepreneurship in France isinvestigated, as well as the factors that contributed to the development ofentrepreneurship and the role of government policy.The decline ofentrepreneurship between 1972 and 1998 may be attributed to high unemploymentrates and to the French governments tendency to support large businesses in aneffort to boost employment. Because the French economy is highly centralized, in that importantindustries are characterized by the dominant role of large companies thatovershadow small business clusters, the environment is not conducive toentrepreneurial activity.Over the last two decades, the government hasintroduced measures designed to promote entrepreneurship. A number of policies,however, counteract one another and send confusing messages regarding the valueof small- and medium-sized enterprises (SMEs).For example, the governmenthas established programs to create more innovative startups but continues toburden SMEs with heavy taxes and to deny self-employed people a fair share ofsocial security. The influence of French culture on entrepreneurship takes the form of strictregulation and centralized decision-making. In other words, the typical Frenchorganization is a microcosm of the national economy.It is not surprising,then, that few French people have considered launching entrepreneurialventures.The few who do run their own businesses frequently faceopposition from the government.It remains to be seen whether Francesrelatively anti-entrepreneurship policies will promote the growth of SMEs byforcing firms to find creative ways around restrictive government regulations.(SAA)