Micro-enterprises make up the majority of firms in most countries. In New Brunswick, micro-enterprises represent around 73% of all firms (Bourgeois and Dulipovici, 2003). Canada has about one-half million micro-enterprises, representing around 77% of all Canadian firms (Industry Canada, 2001). The proportion of micro-enterprises within the population of firms is even larger when owner-operated ...

We examine the characteristics of individuals who become entrepreneurs when local opportunities arise. identify demand shocks by linking fluctuations in global commodity prices to municipality-level agricultural endowments Brazil. find that firm creation response is mostly driven young and skilled individuals. The these responsive are significantly different from those average economy. By struc...

The impact of financial leverage on firm investment is one of the most important issues in corporate finance. Debt overhang reduces the incentives of shareholder–management coalition in controlling the firm to invest in positive net-present-value investment opportunities. On the other hand, firms without debt in their financial structure face with a new problem known as over-investment. T...

In February 2002, New Orleans endorsed with a 63 percent majority a ballot initiative to establish a citywide minimum wage one dollar above the federal minimum. We surveyed New Orleans businesses in 1999 to estimate this proposal’s costs. We present the main results from this survey. We then evaluate five means through which firms might adjust to cost increases—raising prices, improving product...