Search

Access to Informal Venture Capital and Ambitious Entrepreneurship – Cross Country Evidence

PublicationArticle (with peer review)
Entreprenörskap, Företagandets villkor, Innovation, Kristina Nyström, Riskkapital, Sofia Avdeitchikova, Tillväxtfinansiering

Abstract

Many empirical studies have emphasized the importance of institutional venture capital for enabling high growth entrepreneurship and innovation. Yet, there are reasons to believe that provision of informal venture capital will have as significant, if not more significant effect on entrepreneurship. Based on Global Entrepreneurship Monitor data for 33 countries for the years 2001-2010, we study the relationship between the presence of informal investors in a country and the levels of general and ambitious entrepreneurship, defined as entrepreneurs that have intentions to grow their business, internationalize and/or innovate. Some of the main findings are that the overall level of access to informal venture capital is positively related to general entrepreneurship and ambitious entrepreneurship in terms of innovativeness, while access to arms-length money (i.e. informal investments made by work colleagues or strangers) appears to be positively related to ambitious entrepreneurship in terms of job growth expectations. The relationship between availability of arms-length money and the innovativeness of the entrepreneurial activities appears however to be negative.
Related content: Working paper No. 278

Avdeitchikova, S., & Nyström, K. (2016). Access to Informal Venture Capital and Ambitious Entrepreneurship – Cross Country Evidence. International Review of Entrepreneurship, 14(4), paper no. 1545.


Similar content

Ratio Working Paper No. 341: Recruitment of scarce competences to rural regions: Policies to promote recruitment
Working paperPublication
Nyström, K.
Publication year

2020

Published in

Ratio Working Paper

Abstract

This paper studies the perceived difficulty of recruiting scarce competences to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections in Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and non-rural regions. However, recruitment problems in the public sector are more pronounced in rural municipalities. Nevertheless, recruitment to the public and business sectors are perceived to be equally difficult in rural regions. Both rural municipalities and non-rural municipalities state that the difficulty of recruiting the right skills results in a lack of skills matching and constitutes an obstacle to growth. Which policies can help remedy recruitment problems in rural regions? The pecuniary incentive of writing off student debt is perceived to be the most promising policy, but respondents also believe that non-pecuniary support such as relocation support for accompanying persons and tandem recruitment should be implemented to a greater extent. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed. This regards for example the adaption of education programmes to local needs and rules and regulations.

Assessing user perceptions of the interplay between the sharing, access, platform and community‐based economies
Article (with peer review)Publication
Geissinger, A., Laurell, C., Öberg, C., Sandström, C. & Suseno, Y.
Publication year

2020

Abstract

Purpose
Digitally intermediated peer-to-peer exchanges have accelerated in occurrence, and as a consequence, they have introduced an increased pluralism of connotations. Accordingly, this paper aims to assess user perceptions of the interplay between the sharing, access, platform, and community-based economies.

Design/methodology/approach
The sharing, access, platform, and community-based economies have been systematically tracked in the social media landscape using Social Media Analytics (SMA). In doing so, a total material of 62,855 publicly posted user-generated content concerning the four respective economies were collected and analyzed.

Findings
Even though the sharing economy has been conceptually argued to be interlinked with the access, platform, and community-based economies, the empirical results of the study do not validate this interlinkage. Instead, the results regarding user perceptions in social media show that the sharing, access, platform, and community-based economies manifest as clearly separated.

Originality/value
This paper contributes to existing literature by offering an empirical validation, as well as an in-depth understanding, of the sharing economy’s interlinkage to other economies, along with the extent to which the overlaps between these economies manifest in social media.

Bureaucrats or Markets in Innovation Policy? – a critique of the entrepreneurial state
Article (with peer review)Publication
Karlson, N., Sandström, C., & Wennberg, K.
Publication year

2020

Abstract

This paper takes stock of recent suggestions that the state apparatus is a central and underappreciated actor in the generation, diffusion and exploitation of innovations enhancing growth and social welfare. We contrast such a view of “the entrepreneurial state” with theories and empirical evidence of the microeconomic processes of innovation in the modern economy which focus on well-functioning markets, free entry and competition among firms, and independent entrepreneurship as central mechanisms in the creation and dissemination of innovations. In doing so, we identify several deficiencies in the notion of an entrepreneurial state by showing that (i) there is weak empirical support in the many hundreds empirical studies and related meta analyses evaluating the effectiveness of active industrial and innovative policies, that (ii) these policies do not take account of the presence of information and incentive problems which together explain why attempts to address purported market failures often result in policy failures, and that (iii) the exclusive focus on knowledge creation through R&D and different forms of firm subsidies ignores the equally important mechanisms of knowledge dissemination and creation through commercial exploitation in markets. We discuss how a more theoretically well-founded focus on the state as investing in knowledge generation and securing the conditions of free and competitive markets will lead to a more innovative economy.

Show more

Postgiro: 382621-1

|

Bankgiro: 512-6578