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Many governments promote small businesses for the dual reasons of fostering 'breakthrough' innovations and employment growth. In this paper we study the effects of tax and subsidy policies on entrepreneurs' choice of riskiness of an innovation project and on their mode of commercializing the...
Persistent link: https://www.econbiz.de/10009530995
consider the financing problem of an entrepreneur who has access to two investment projects and needs to raise external … financing to undertake these projects in the presence of asymmetric information. The entrepreneur has private information about … types of informed traders and each type knows the true value of a different project, the entrepreneur will always choose to …
Persistent link: https://www.econbiz.de/10010345101
In an earlier study of the policy orientations of innovative entrepreneurs, it was observed that there were considerable variations within the high-innovation and low-innovation groups identified for the purpose of comparing policy orientations. The possibility of identifying sub-types within...
Persistent link: https://www.econbiz.de/10013114829
This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills...
Persistent link: https://www.econbiz.de/10013117187
This paper investigates the impact of new firms' quality on the magnitude of their employment effects. Our results clearly show that the quality of start-ups, measured by their affiliation with sectors and innovative industries, strongly influences the direct and the overall employment...
Persistent link: https://www.econbiz.de/10013124165
Extant evidence that the self-employed overestimate their returns by more than employees do is consistent with two mutually inclusive possibilities. Self-employment may generate optimism or optimists may be drawn to self-employment. This paper finds that employees who will be self-employed in...
Persistent link: https://www.econbiz.de/10013099728
more profitable than reward-based crowdfunding when an entrepreneur is overconfident. This is because the entrepreneur …
Persistent link: https://www.econbiz.de/10012842167
This study examines whether personal net worth affects new venture creation and performance. Prior research on wealth and entrepreneurial entry has relied on data providing only a snapshot of the transition into self-employment. The present study draws on a sample of US nascent entrepreneurs...
Persistent link: https://www.econbiz.de/10012902847
Empirical evidence suggests that entrepreneurs make mistakes: too many enter markets and, once there, persist too long. While scholars have largely settled on behavioral bias as the cause, we suggest that this consensus is premature. These mistakes may also arise from a process in which...
Persistent link: https://www.econbiz.de/10012924966
more profitable than reward-based crowdfunding when an entrepreneur is overconfident. This is because either the … entrepreneur learns from the sale of shares before making production decisions or because the crowd anticipates the entrepreneur …
Persistent link: https://www.econbiz.de/10012925818