Entrepreneurial Management

- RECENT PUBLICATION: Article
  Article | Journal of Financial Economics | May 2020
  The Creation and Evolution of Entrepreneurial Public Markets
  Shai Bernstein, Abhishek Dev and Josh Lerner
  This paper explores the creation and evolution of new stock exchanges around the world geared towards entrepreneurial companies, known as second-tier exchanges. Using hand-collected novel data, we document the proliferation of these new stock exchanges that were created in a large number of countries, attracted a significant volume of global IPOs, were introduced fairly cyclically, and had lower listing requirements when compared to first-tier stock exchanges. We find that increases in demand for entrepreneurial capital—as proxied for by patenting, IPOs, and stock market valuations—led to a higher likelihood of the introduction of second-tier exchanges. We find no evidence that new second-tier exchanges diverted the existing flow of IPOs from established stock exchanges. Shareholder protection strongly predicted exchange success, even in countries with high levels of venture capital activity, patenting, and financial market development. Second-tier exchanges in countries with better shareholder protection allowed younger, less profitable, but faster-growing companies to raise more capital. These results highlight the importance of institutions in enabling the provision of entrepreneurial capital to young companies.
  Keywords: entrepreneurial finance; stock exchanges; Entrepreneurship; Finance; Initial Public Offering; Capital;
  
  Citation:
  Bernstein, Shai, Abhishek Dev, and Josh Lerner. "The Creation and Evolution of Entrepreneurial Public Markets." Journal of Financial Economics 136, no. 2 (May 2020): 307–329. View Details
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- RECENT PUBLICATION: Working Paper
  Working Paper | HBS Working Paper Series | 2020
  How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey
  Alexander Bartik, Marianne Bertrand, Zoë B. Cullen, Edward L. Glaeser, Michael Luca and Christopher Stanton
  In addition to its impact on public health, COVID-19 has had a major impact on the economy. To shed light on how COVID-19 is affecting small businesses – and on the likely impact of the recent stimulus bill, we conducted a survey of more than 5,800 small businesses. Several main themes emerge from the results. First, mass layoffs and closures have already occurred. In our sample, 43 percent of businesses are temporarily closed, and businesses have – on average – reduced their employee counts by 40 percent relative to January. Second, consistent with previous literature, we find that many small businesses are financially fragile. For example, the median business has more than $10,000 in monthly expenses and less than one month of cash on hand. Third, businesses have widely varying beliefs about the likely duration of COVID related disruptions. Fourth, the majority of businesses planned to seek funding through the CARES act. However, many anticipated problems with accessing the aid, such as bureaucratic hassles and difficulties establishing eligibility.
  
  Citation:
  Bartik, Alexander, Marianne Bertrand, Zoë B. Cullen, Edward L. Glaeser, Michael Luca, and Christopher Stanton. "How Are Small Businesses Adjusting to COVID-19? Early Evidence From a Survey." Working Paper. View Details
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- RECENT PUBLICATION: Article
  Article | Research Policy | 2020
  Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012
  Sari Pekkala Kerr and William R. Kerr
  We study immigrant entrepreneurship in 2007 and 2012 using the Survey of Business Owners. First-generation immigrants create about 25% of new firms in America, but this share exceeds 40% in some states. Immigrant-owned firms tend to create fewer jobs than native-owned firms, have comparable pay levels, offer fewer benefits, and engage more in international activities. Immigrant-founded firms in high-tech sectors more closely resemble native-founded firms than in low-tech sectors. Prominent tech clusters display quite pronounced shares of immigrant entrepreneurs, with stronger high-tech immigrant entrepreneurs being especially present. Second-generation immigrants tend to show intermediate firm traits indicative of business assimilation.
  Keywords: job creation; employee benefits; owner demographics; Exports; outsourcing; Immigration; Entrepreneurship; Ownership; Demographics; Jobs and Positions; Compensation and Benefits; United States;
  
  Citation:
  Kerr, Sari Pekkala, and William R. Kerr. "Immigrant Entrepreneurship in America: Evidence from the Survey of Business Owners 2007 & 2012." Art. 103918. Research Policy 49, no. 3 (April 2020). View Details
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The Entrepreneurial Management Unit strives to raise the level of academic work in the field of entrepreneurship, in methodological rigor, conceptual depth, and managerial applicability. We also strive to improve the odds of entrepreneurial success for our students and for practitioners worldwide.

Because it is such a complex phenomenon, entrepreneurship must be studied through multiple lenses. We use three.

The process of entrepreneurship - We seek to understand the processes of entrepreneurial activity in start-ups and established firms by examining the antecedents and consequences of various forms of entrepreneurial opportunity identification and opportunity pursuit for individuals, organizations, and industries. We see experimentation and innovation in products, services, processes, and business models as central to entrepreneurial activity.
The finance of entrepreneurship - We seek to understand the financing of entrepreneurial ventures by studying the antecedents and consequences of entrepreneurial funding decisions both domestically and internationally.
The context of entrepreneurship - We seek to understand the ways in which entrepreneurs both respond to and shape the context in which they operate, by examining the history of entrepreneurship across time and national borders and by analyzing the legal and cultural contexts for managerial action.

Please also visit the Arthur Rock Center for Entrepreneurship.

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