Entrepreneurship, finance entrepreneurs and job creation: Evidence from panel data

Manuela Vega-Pascual, Filippo Di Pietro, Rafaela Alfalla-Luque

Abstract

Within the line of research in entrepreneurship and economic development that defends the entrepreneurial activity as a tool for job creation and activation of the economy, we will perform an empirical analysis in Spain of the relationship between the institutional environment, specifically the entrepreneurial finance variable , capital structure and growth of young firms. To this end, this study focuses on the business context of young Spanish SMEs and uses information from the GEM and SABI databases for the period 2008-2015. Using the panel data methodology, empirical evidence is provided that access to finance favors the indebtedness of young Spanish SMEs, and leverage is an explanatory factor of job creation. The data is consistent at the country and regional levels. Therefore, an institutional effort, both public and private, that facilitates financing entrepreneurs will favor the creation of employment and economic growth. The authors have contributed equally to this research. 

 


Keywords

Entrepreneurship; finance entrepreneurs; job creation; SMEs; young firms; regional analysis

Full Text:

PDF

References

Acs, Z., Arenius, P., Hay, M., & Minniti, M. (2004). "Global Entrepreneurship Monitor. 2004 Executive Report". Babson College and London Business School.

Alemany, L. (2011). Libro Blanco de la Iniciativa Emprendedora en España .

Alvarez, C., & Urbano, D. (2012). Factores del entorno y creación de empresas: un análisis institucional. Revista Venezolana de Gerencia. 17 (57), 9-38.

Alvarez, C., & Urbano, D. (2011). Una Década de Investigación basada en el GEM: Logros y Restos (A Decade of GEM Research: Achievements and Challenges). Academia Revista Latinoamericana de Administración. (46), 16-37.

Alvarez, C., Urbano, D., Coduras, A., & Ruiz-Navarro, J. (2011). Environmental conditions and entrepreneurial activity: a regional comparision in Spain. Journal of Small Business and Enterprise Development , 18 (1), 120-140.

Amorós, J., Fernández, C., & Tapia, J. (2012). Quantifying the relationship between entrepreneurship and competitiveness development stages in Latin America. International Entrepreneurship and Management Journal , 18 (1), 120-140.

Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies , 58 (2), 277-297.

Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of errorcomponents models. Journal of Econometrics , 68 (1), 29-51.

Audretsch, D. B., & Keilbach, M. (2004). Entrepreneurship capital and economic performance. Regional Studie , 38 (8), 949-959.

Audretsch, D., & Thurik, R. (2004). A model of entrepreneurial economy. Discussion Paper on Entrepreneurship, Growth and Public Policy, (1204):17. MPI Jena.

Birch, D. (1979). The Job Generation Process. MIT Program on Neighborhood and Regional Chaange Cambriddge, MA.

Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics , 87 (1), 115-143.

Booth, L., Aivazian, V., Demirgüç-Kunt, A., & Maksimovic, V. (2001). Capital structures in developing countries. Journal of Finance , 56, 87-130.

Bosma, N., & Levie, J. (2010). Global Entrepreneurship Monitor, 2009 Executive Report. Babson Park, MA: Babson College, Santiago: Universidad del Desarrollo and Reykjavík, Iceland: Háskólinn Reykjavík University, London: Global Entrepreneurship Research Association.

Bosma, N., Acs, Z., Autio, E., Coduras, A., & Levie, J. (2009). "Global Entrepreneurship Monitor". 2008 Executive Report. Babson Park, MA: Babson College, Santiago: Universidad del Desarrollo, London: Global Entrepreneurship Research Association.

Buendía, I., & Carrasco, I. (2014). El impacto de los factores institucionales en la actividad emprendedora: Un análisis del cooperativismo europeo. Revista de Economía Mundial , 38, 175-200.

Callejón, M., & Segarra, A. (2012). Instrumentos Públicos de Apoyo a la Financiación de la PYME: hechos, crítica y propuestas. Pequeña y mediana empresa: impacto de la crisis en su financiación, 259-279.

Capelleras, J., & Kantis, H. (2009). Nuevas Empresas en América Latina: factores que favorecen su rápido crecimiento. Barcelona: Servei de Publicasions.

Coduras, A., & Autio, E. (2013). Comparing subjective and objective indicators to describe the national entrepreneurial context: the Global Entrepreneurship Monitor and the Global Competitiveness Index contributions. Investigaciones Regionales , 19 (3), 47-74.

Cooper, A., Gimeno-Gascon, F., & Woo, C. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing , 9 (5), 371-395.

Davidsson, P., Delmar, F., & Wiklund, J. (2006). Entrepreneurship and the Growth of Firms. Cheltenham, Reino Unido: Edward Elgar.

Dávila, A., Foster, G., & Gupta, M. (2003). Venture Capital Financing and the growth of startup firms. Journal of Business Venturing , 18 (6), 689-708.

Davis, S., Haltiwanger, J., & Schuh, S. (1996). Job Creation and Destruction. MIT Press , 87 (February): 174-83.

Demirgüç-Kunt, A., & Maksimovic, V. (1998). Law, finance and firm growth. Journal of Finance , 53, 2107-2137.

Federico, J., & Capelleras, J. (2014). The heterogeneous Dynamics between Growth and Profits. Small Business Economics , 44(2):231-53.

Fernández Laviada, A., Rueda Sampedro, I., Blanco Rojo, B., Sánchez Ruiz, L., & Herrero Crespo, A. (2013). ¿Existen niveles adecuados de formación y financiación que incentiven la intención emprendedora? FAEDPYME International Review , 2 (3), 28-38.

Freeman, J., Carroll, G., & Hannan, M. (1983). The Liability of Newness: Age Dependence in Organization Dearh Rates. American Sociological Review , 45(5): 692-710.

Galindo, M., Méndez, M., & Alfaro, J. (2010). Entrepreneurship, income distribution and economic growth. International Entrepreneurship Management Journal (6), 131-141.

Garcia Tabuenca, A., & Crespo Espert, J. (2007). Desempeño de la Actividad Emprendedora Temprana en España. Economía Industrial , (363): 59-78.

Gibb, A., & Davies, L. (1990). In Pursuit of Frameworks for the Development for the Development of Growth Models of the Small Business. International Small Business Journal , 9(1): 15-31.

Gnyawali, D., & Fogel, D. (1994). Environments for Entrepreneurship Development: Key Dimension. Entrepreneurship Theory and Practice , 18(4): 43-63.

González, V., & González, F. (2008). Influence of bank concetration and institutions on capital structure: new international evidence. Journal of Corporate Finance , 14, 363-375.

Greinier, L. (1998). Evolution and Revolution as Organizations Grow. Harvard Business Review , 76(3).

Holtz-Eakin, D., Newey, W., & Rosen, H. S. (1988). Estimating vector autoregressions with panel data. Econometrica: Journal of the Econometric Society , 1371-1395.

INE (Instituto Nacional de Estadística): http://ine.es (consultado en agosto, 2017).

Iruarrizaga, J., & Mendialdua, A. (2014). Financiación del proceso emprendedor. Ediciones Pirámide.

Iruarrizaga, J., & Santos, M. (2010). Financiación del proceso emprendedor: particularidades en las nuevas iniciativas de base innovadora. Global Financial & Business Networks and Information Management Systems. Academia Europea de Dirección y Economía de la Empresa, XIX International Conference AEDEM.

La Rocca, M., La Rocca, T., & Cariola, A. (2010). The influence of local institutional differences on the capital structure of SMEs: evidence from Italy. International Small Business Journal , 28, 234-257.

Lee, S., Florida, R., & Acs, Z. (2004). Creativity and Entrepreneurship: a regional analysis of new firm formation. Regional Studies , 38 (8), 879-891.

Levie, J., & Autio, E. (2008). A theoretical grounding and test of the GEM model. Small Business Economics , 31 (3), 235-263.

López-Iturriaga, F., & Rodríguez-Sanz, J. (2008). Capital structure and institutional setting, a decompositional and international analysis. Applied Economics , 40, 1851-1864.

Martínez-Fierro, S., Biedma-Ferrer, J., & Ruiz-Navarro, J. (2016). Entrepreneurship and strategies for economic development. Small Business Economics , 47, 835-851.

Martinez-Fierro, S., Viedma, J., & Ruiz-Navarro, J. (2015). Las condiciones del entorno emprendedor y el desarrollo económico: una análisis de los países GEM. Revista de Economía Mundial (41), 181-212.

Ministerio de Industria, Energía y Turismo. “Informe sobre la PYME 2015”. http://www.ipyme.org//Publicaciones/Informe-PYME2015.pdf (consultado en agosto, 2017).

Minniti, M. (2012). El emprendimiento y el crecimiento económico de las naciones. Economía Industrial (383), 23-30.

Minniti, M., Bygrave, W., & Autio, E. (2005). "Global Entrepreneurship Monitor. 2005 Executive Report". Babson College and London Business School.

Müeller, E., & Zimmermann, V. (2009). The importance of equity finance for R&D activity. Small Business Economics , 33, 303-318.

Murillo-Delgado, E., & Santillan-Lopez, L. (2015). Review of Research on Theory and Practice of Entrepreneurship. Possibilities of Global Entrepreneurship Monitor (GEM). Revista Publicando , 2 (5), 285-299.

North, D. (1990). Institutions, Institutional Change, and Economic Performance. Cambridge University Press , 5(1): 1-153.

Palacín- Sánchez, M., & Di Pietro, F. (2016). The Role of the Regional Financial Sector in the Capital Structure of Small and Medium-Sized Enterprises (SMEs). Regional Studies , 50 (7), 1232-1247.

Penrose, E. (1959). The Theory of the Growth of the Firm. Cambridge, MA: 466.

Qian, J., & Strahan, P. (2007). How law and institutions shape financial contracts: the case of bank loans. Journal of Finance , 62, 2803-2834.

Ramos-Rodríguez, A., Martinez-Fierro, S., Medina-Garrido, J., & Ruiz-Navarro, J. (2015). Global entrepreneurship monitor versus panel study of entrepreneurial dynamics: comparing their intellectual structures. International Entrepreneurship and Management Journal , 11 (3), 571-597.

Reynolds, P., Autio, E., Hay, M., Bygrave, W., & Camp, S. (2001). "Global Entrepreneurship Monitor". Executive Report. GEM.

Reynolds, P., Bosma, N., Autio, E., Hunt, E., De Bono, M., Servais, I., y otros. (2005). Global Entrepreneurship Monitor: Data Collection Design and Implementation. Small Business Economics, 24(3): 205-31.

Reynolds, P., Bygrave, W., Autio, E., Cox, L., & Hay, M. (2002). "Global Entrepreneurship Monitor". Executive Report. GEM.

Reynolds, P., Hay, M., & Camp, S. (1999). "Global Entrepreneurship Monitor". Executive Report. GEM.

Reynolds, P., Hay, M., Bygrave, W., Camp, S., & Autio, E. (2000). "Global Entrepreneurship Monitor". Executive Report. GEM.

Rostow, W. W. (1963). Las fases del crecimiento: un manifiesto no comunista. Fondo de Cultura Económica. Colección "Sección de Obras de Economía", Mexico.

Ruiz-Navarro, J., Martinez-Fierro, S., Medina-Garrido, J., & Ramos-Rodríguez, A. (2016). Informe Ejecutivo Andalucía 2015. Global Entrepreneurship Monitor. Andalucía. Cátedra de emprendedores de la Universidad de Cádiz. Consultado en http://www.gem-spain.com//wpcontent/uploads/2015/03/GEMAndalucia2015.pdf.pdf en agosto de 2017.

Sampedro, I. R., Fernández-Laviada, A., & Herrero Crespo, A. (2014). Entrepreneurial intention: perceived advantages and disadvantages. Academia Revista Latinoamericana de Administración, 27 (2), 284-315.

Schumpeter, J. (1934). The theory of Economic Development. Cambridge, MA: Harvard University Press.

Scott, W. R. (1995). Institutions and organizations. Foundations for organizational science. London: A Sage Publication Series.

Serrano, A., López, M., Pérez, M., Palma, M., & García, G. (2014). Estado Actual de la Investigación en Emprendimiento: Desafíos y Soluciones. III Workshop de la Sección de Función Empresarial y Creación de Empresas de ACEDE. Nuevas fronteras en la investigación en emprendimiento y en la docencia del emprendimiento, (págs. 63-77).

Shane, S., & Kolvereid, L. (1995). National Environment, Strategy, and New Venture Performance: A three Country Study. Journal of Small Business Management , 33(2):37.

Sheperd, D., & Wiklund, J. (2009). Are we comparing apples with apples or appels with oranges? Appropiateness of knowledge accumulation across growth studies. Entrepreneurship Theory and Practice , 33 (1), 105-123.

Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: evidence from a 1994-1998 Spanish data panel. Small Business Economics , 25, 447-457.

Stinchcombe, A. (1965). Social Structure and Organizations. Advances in Strategic Management , 17(1): 229-59.

Storey, D. (1994). Understanding the Small Business Business Sector. Thomson Learning Emea.

Storey, D. (1994). Understanding the Small Business Sector. Thomson Learning Emea.

Urbano, D. (2006). La creación de empresas en Cataluña: organismos de apoyo y actitudes hacia la actitud emprendedora. Barcelona: Generalitat de Catalunya, Departament de Treball i Industria, Empresarial (CIDEM).

Van der Wijst, N., & Thurik, R. (1993). Determinants of small firm debt ratios. An analysis of retail panel data. Small Business Economics , 5, 55-65.

Veciana, J. (1999). Creación de Empresas como Programa de Investigación Científica. Revista Europea de Dirección y Economía de la Empresa , 8(3): 11-36.

Veciana, J. (2005). La creación de Empresas: un enfoque gerencial. Barcelona: Servicio de Estudios La Caixa.

Wald, J., & M., L. (2007). The effect of state laws on capital structure. Journal of Financial Economics , 83, 279-319.

Weinzimmer, L., Nystrom, P. C., & Freeman, S. J. (1998). Measuring organizational growth: Issues, consequences and guidelines. Journal of Management , 24 (2), 235-262.

Wennekers, S., & Thurik, R. (1999). Linking Entrepreneurship and Economic Growth. Small Business Economics , 13, 27-55.

Wennekers, S., Van Stel, A., Carree, M., & Thurik, R. (2010). The relationship between entrepreneurship and economic development: Is it U-shapped? Foundations and Trends in Entrepreneurship , 6 (3), 167-237.

Abstract Views

3502
Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.




This journal is licensed under a Creative Commons Attribution 4.0 International License.

Universitat Politècnica de València

e-ISSN: 1989-9068   https://doi.org/10.4995/wpom