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

PublikationArtikel (med peer review)
Entreprenörskap, Företagandets villkor, Innovation, Kristina Nyström, Riskkapital, Sofia Avdeitchikova, Tillväxtfinansiering

Sammanfattning

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.


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This chapter investigates Chinese wind power development and concludes that innovation cannot be pushed by the efforts of many, and that when the state clarifies directions and objectives, these can be achieved but with severe and unexpected side effects. Two topics are explored: wind curtailment and low technological development, both examples of unproductive entrepreneurship induced by government policies. The goal of wind power capacity expansion leads to construction (i.e., generation capacity) but little electricity. Examples of failures include low grid connectivity with, some years averaging 15% of generation capacity broken or unconnected to the grid. A key lesson for Europe is that forced innovation often amounts to little and that the old saying holds up: “no plan survives contact with reality.”

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Working paperPublikation
Nyström, K.
Publiceringsår

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Publicerat i

Ratio Working Paper

Sammanfattning

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.

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