Entrepreneurial Management
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- November 2021
- Article
Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru
By: Irani Arraiz, Miriam Bruhn, Benjamin N. Roth, Claudia Ruiz-Ortega and Rodolfo StucchiWe provide evidence that commercial lenders in Peru suffer leakages in their loan approval process. Leveraging a discontinuity in the loan approval process of a large bank, we find that receiving a loan approval from the bank causes loan applicants to receive offers from other financial institutions as well. Competing lenders captured almost three quarters of the new loans to previously financially excluded borrowers. Importantly, many of these borrowers never took a loan from our partner bank, even after our partner bank approved them. Lenders may therefore underinvest in screening new borrowers and expanding financial inclusion, as their competitors reap some of the benefit. Our results highlight that information spillovers between lenders may operate outside of credit registries.
- November 2021
- Article
Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru
By: Irani Arraiz, Miriam Bruhn, Benjamin N. Roth, Claudia Ruiz-Ortega and Rodolfo StucchiWe provide evidence that commercial lenders in Peru suffer leakages in their loan approval process. Leveraging a discontinuity in the loan approval process of a large bank, we find that receiving a loan approval from the bank causes loan applicants to receive offers from other financial institutions as well. Competing lenders captured almost three...
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- October 22, 2021
- Article
It’s Time to Knock Down the Walled Gardens of the Payments System
By: Christian Catallini and Scott Duke Kominers- October 22, 2021
- Article
It’s Time to Knock Down the Walled Gardens of the Payments System
By: Christian Catallini and Scott Duke Kominers -
- 2021
- Working Paper
Increasing the Demand for Workers with a Criminal Record
By: Zoë B. Cullen, Will Dobbie and Mitchell HoffmanState and local policies increasingly restrict employers’ access to criminal records, but without addressing the underlying reasons that employers may conduct criminal background checks. Employers may thus still want to ask about a job applicant’s criminal record later in the hiring process or make inaccurate judgments based on an applicant’s demographic characteristics. In this paper, we use a field experiment conducted in partnership with a nationwide staffing platform to test policies that more directly address the reasons that employers may conduct criminal background checks. The experiment asked hiring managers at nearly a thousand U.S. businesses to make actual hiring decisions under different randomized conditions. We find that 39% of businesses in our sample are willing to work with individuals with a criminal record at baseline, which rises to over 50% when businesses are offered crime and safety insurance, a single performance review, a background check covering just the past year, or objective information on the productivity of these individuals. Wage subsidies can achieve similar increases but at a substantially higher cost. Based on our findings, the staffing platform relaxed the criminal background check requirement and offered crime and safety insurance to interested businesses.
- 2021
- Working Paper
Increasing the Demand for Workers with a Criminal Record
By: Zoë B. Cullen, Will Dobbie and Mitchell HoffmanState and local policies increasingly restrict employers’ access to criminal records, but without addressing the underlying reasons that employers may conduct criminal background checks. Employers may thus still want to ask about a job applicant’s criminal record later in the hiring process or make inaccurate judgments based on an applicant’s...
About the Unit
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.
Recent Publications
Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru
- November 2021 |
- Article |
- Journal of Development Economics
It’s Time to Knock Down the Walled Gardens of the Payments System
- October 22, 2021 |
- Article |
- American Banker
Loan Officers Impede Graduation from Microfinance: Strategic Disclosure in a Large Microfinance Institution
- 2021 |
- Working Paper |
- Faculty Research
Increasing the Demand for Workers with a Criminal Record
- 2021 |
- Working Paper |
- Faculty Research
Nobel Winners Found Economic Experiments in the Real World
- Article |
- Bloomberg Opinion
How to Resolve America's Hidden-Worker Problem
- October 7, 2021 |
- Article |
- SHRM Executive Network
Sparking Growth at Consumer Reports
- October 2021 |
- Case |
- Faculty Research
Apax Partners and Duck Creek Technologies
- October 2021 |
- Teaching Note |
- Faculty Research