Entrepreneurship and the Business Cycle: the “Schumpeter” effect versus the “refugee” effect - A French appraisal based on regional data (original) (raw)
Related papers
HAL (Le Centre pour la Communication Scientifique Directe), 2014
We study the relationships between unemployment rate and new-firm startups rate in France using a quarterly data basis over the 1993-2011 period. At the national level we identify that the refugee effect explains the dynamics of entrepreneurship in France over the period 2000-2011. New French firms are mostly set up for necessity motives. At the regional level data analysis methods allow to obtain different classes of regions that represent different type of developments. For each of these classes we are able to identify the existence of refugee/Schumpeter effects both in the short-run and in the long-run.
1. The Impact of Unemployment on Entrepreneurship: Empirical Evidence from France
2007
In contrast to the widespread assumption in the field of entrepreneurship that "entrepreneurs are born", the reality we experience is that environmental circumstances play a high role in explaining different levels of entrepreneurship across regions or countries. This article gives strong support for unemployment as key factor for entrepreneurship. An empirical lead forward was made by including data of all new firms created between 1993 and 2001 in 348 French labor market areas (2.8 million firms) into a multiple regression analysis. Our empirical study presents evidences about the effects of the local socioeconomic environment on entrepreneurship. The results clearly show that geography matters for entrepreneurship. Three major determinants of entrepreneurship have been identified: 1) a high unemployment rate, 2) population growth, and 3) a highly qualified working population. Additionally, unemployment has been shown to affect entrepreneurship activity even more than population growth, i.e. increasing market demand.
THE IMPACT OF UNEMPLOYMENT ON ENTREPRENEURSHIP: EMPIRICAL EVIDENCE FROM FRANCE
In contrast to the widespread assumption in the field of entrepreneurship that "entrepreneurs are born", the reality we experience is that environmental circumstances play a high role in explaining different levels of entrepreneurship across regions or countries. This article gives strong support for unemployment as key factor for entrepreneurship. An empirical lead forward was made by including data of all new firms created between 1993 and 2001 in 348 French labor market areas (2.8 million firms) into a multiple regression analysis. Our empirical study presents evidences about the effects of the local socio-economic environment on entrepreneurship. The results clearly show that geography matters for entrepreneurship. Three major determinants of entrepreneurship have been identified: 1) a high unemployment rate, 2) population growth, and 3) a highly qualified working population. Additionally, unemployment has been shown to affect entrepreneurship activity even more than population growth, i.e. increasing market demand.
The Annals of Regional Science, 2014
This paper investigates the determinants of business start-ups in the 22 French regions, considering four different sectors (industry, real estate, trade and services) over 1995-2004. The main innovation of the paper was to analyze regional differences in the decision to start a new business on a sector basis. Using spatial statistics and dynamic panel data methods, we estimate spatial regimes models. First, we show that regional factors determining new firm start-ups differ between sectors. Second, the estimation results are consistent with the existence of spatial heterogeneity. Finally, we observe persistence in start-up rates. JEL Classification J21 • M13 • O18 M.-E. Binet (B) CREM,
Applied Economics, 2014
The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden.
Firm start-up strategies and performance in France: Survival and growth
2011
Essential performance outcomes of the new firm, including survival and growth, are related to financial and operational factors of the firm. We present a model that shows that firm financing via debt has some influence on types of market outreach, survival, and also growth of new firms in France. Using a robust, longitudinal dataset of the population of firms throughout the country established, continuing, and closing over the period of 2002 to 2007 (available through the French government via the SINE Survey: Système d'informations sur les nouvelles entreprises), we show that for a given indebtedness of the new firm, the entrepreneurial behavior generally improves the survival and the growth of new ventures. 6 case the firm remains solvent. The probability of exit of the firm, i ( i
Does Entrepreneurship Dictate the Profitability Growth of Firms? (Evidence from France)
Journal of Business and Entrepreneurship, 2021
Nowadays, entrepreneurship is greatly influenced by several aspects, including globalization, the increase of economic, industrial upgrade, incorporation of culture, and many other exchanges. Focusing on entrepreneurship, the trend of international companies' development is environmental dynamism, financial capital accessing, and professional codes. The influence of corporate entrepreneurship on the growth of firms' profits is the main interest of this paper. Thirtyseven French firms are subject to examination during the four years, starting from 2014 until 2018. With the help of STATA 13.0 software, data collected was analyzed by using multiple regression analysis. The findings show that entrepreneurship and environmental and financial capital taking dimensions undergo a considerably favorable impact on the progress of profitableness of firms. This assists in the research area of entrepreneurship in underdeveloped countries and boosts the effects of entrepreneurial aspects on the accomplishment and the development of firms.
The Nature and Focus of Entrepreneurship Research in France over the Last Decade: A French Touch?
Entrepreneurship Theory and Practice, 2008
This article gives an overview of the specificities of entrepreneurship research in France, paying attention to its emergence, nature, and focus. Reviewing 253 articles and conference papers from two journals and two conferences, considered main outlets for research outcomes from French scholars, our findings reveal a distinctive "French touch" of entrepreneurship research. The main facets we were able to identify with our data for the 1995 to 2005 period are as follows. There is a preference for qualitative methods, conceptual contributions, and the entrepreneurial process as privileged research theme. A particular strength of the French approach is also a strong focus of small and medium-sized organizations. The "French touch" of entrepreneurship research could make a distinctive contribution to the international research community and the mainstream debate. However, mainly Frenchspeaking dissemination of knowledge and (still) insufficient international journal-oriented output strategies limit the diffusion of French entrepreneurship research. Implications for academic institutions and future research are discussed.
Economie et Statistique / Economics and Statistics, 2017
Business start-up assistance has been adopted as a tool for implementing proactive employment policies across most OECD nations. In France, the ACCRE start-up support programme for unemployed people creating or taking over firms has expanded strongly since its introduction in 1979. The number of people joining the ACCRE programme exceeded 80,000 in 2006 and peaked at 220,000 in 2010. We have studied the effect of the ACCRE system on the survival (measured after five years) of four cohorts of firms started by unemployed entrepreneurs in 1994, 1998, 2002 and 2006, based on survey data in INSEE's "new firms information system", SINE. According to descriptive statistics, the survival outlook for firms created by ACCRE beneficiaries is better than that of firms created by non-recipients. However, using simultaneous equations to model ACCRE approval and firm survival revealed evidence of ACCRE recipient selection based on the administrative approval process, as well as self-selection by entrepreneurs. Adjusted accordingly, ACCRE appears to have no effect on the survival of supported firms for most categories of unemployed people.