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presence of network externalities tends to make the entrepreneur prefer sale to entry. Moreover, we also show that the … incentive to innovate for entry decreases when network effects become stronger, whereas there is an increase in the incentive … of increasing entry by entrepreneurs. However, this may come at the cost of reducing the research intensity by reducing …
Persistent link: https://www.econbiz.de/10005622745
significant impact on both entry of new firms and on firm exit. For the primary sector and the manufacturing sector this impact is … there is a strong negative impact on firm entry in all sectors. This is in line with what one could expect as there are …
Persistent link: https://www.econbiz.de/10008460548
Persistent link: https://www.econbiz.de/10010241603
Persistent link: https://www.econbiz.de/10011823883
the entry was mainly found among household-based establishments. We measure and discuss the extent to which this …
Persistent link: https://www.econbiz.de/10010777143
Is the vast army of the self-employed in low income countries a source of employment generation? We use data from surveys in Sri Lanka to compare the characteristics of own account workers (non-employers) with wage workers and with owners of larger firms. We use a rich set of measures of...
Persistent link: https://www.econbiz.de/10003719625
In this paper we theoretically and empirically examine how the interaction between the formal court system and the informal loan network affects a household's decision to start a business. We find that when the formal court system is weak, expansion of informal credit network leads to the...
Persistent link: https://www.econbiz.de/10011429969
This paper presents an exploratory analysis of the potential impacts of the Lei do Empreendedor Individual (Individual Entrepreneur Law). We intend to present evidence that helps clarify, albeit only partially, whether the policy was successful in promoting: i) micro-entrepreneurship in Brazil;...
Persistent link: https://www.econbiz.de/10010402557
In this paper we theoretically and empirically examine how the interaction between the formal court system and the informal loan network affects a household's decision to start a business. We find that when the formal court system is weak, expansion of informal credit network leads to the...
Persistent link: https://www.econbiz.de/10010488828
An industry is modeled in which entrepreneurs, who are heterogeneous in ability, may produce formally or informally. It is shown how the formal-informal mix depends on the distribution of ability, product demand and various parameter values. The industry equilibrium is compared to one in which...
Persistent link: https://www.econbiz.de/10003724143