Does Quality Make a Difference? Employment Effects of High- and Low-Quality Start-Ups
نویسندگان
چکیده
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 contribution of new firms. In particular, start-ups in manufacturing industries generate larger direct and overall growth effects than those in services. Moreover, new businesses in innovative manufacturing and in knowledge-intensive service industries make a larger direct contribution to employment than start-ups affiliated with other industries. We also find a relatively strong overall effect of new business formation in knowledge-intensive service industries. However, the impact of start-ups in innovative manufacturing industries on overall regional employment growth is not statistically significant, which may be mainly due to their rather small share in all start-ups and because they impact more on firms and employment in other regions than do startups in non-innovative manufacturing. Finally, we discuss the implications for entrepreneurship policy that can be derived from our findings. JEL classification: L26, M13, O1, O18, R11
منابع مشابه
Are More Start-Ups Really Better? Quantity and Quality of New Businesses and Their Effect on Regional Development
Empirical analyses suggest that the employment creating effect of start-ups is highest in regions with a low level of new business formation and that an increase in the regional start-up rate beyond a certain level may lead to negative employment effect. In explaining these results, we assume that the average quality of regional start-ups decreases with the number of start-ups, while the costs ...
متن کاملPresenting a model for the success of knowledge-based and technology-based start-ups in Iran by focusing on the appropriateness of the idea and team
Entrepreneurship in the field of knowledge has numerous problems due to dramatic changes and environmental uncertainty; However, these firms are considered as precursor, and substantial progress in knowledge, economics and employment cannot be achieved unbeknownst to them. The idea and team of such businesses are key elements for the success of these firms. The current study was carried out to ...
متن کاملAn Inquiry into the Quality of Employment in Start-ups and Incumbents
The present contribution addresses the question whether and how qualitative aspects of employment—like weekly hours of work, wages or qualification—differ between new and established firms. Although a wide strand of literature in entrepreneurship research analyses the employment effects of start-ups vs. incumbent firms, our knowledge about differences in these qualitative aspects of employment ...
متن کاملNew Firms—Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents∗
The present contribution addresses the question whether and how qualitative aspects of employment—like weekly hours of work, wages or qualification—differ between new and established firms. Although a wide strand of literature in entrepreneurship research analyses the employment effects of start-ups vs. incumbent firms, our knowledge about differences in these qualitative aspects of employment ...
متن کاملThe Effect of New Business Formation on Employment – The Dominance of Density
Empirical analyses show that the employment effects of start-ups are highest in agglomerations, whereas moderately congested areas exhibit only modest effects, and weak or even no significant effects could be found in rural regions. This paper will set out to show that these discrepancies arise from specific characteristics of urban areas. The magnitude of the employment effects of entry in agg...
متن کامل