Jean Bonnet*, Pascal Cussy* and Marcus Dejardin - Alpen

Fourth International Workshop on
ENTREPRENEURSHIP, CULTURE, FINANCE AND ECONOMIC DEVELOPMENT
Alpen-Adria University Klagenfurt, Austria July 03 - 04, 2014
START-UP OR TAKEOVER?
INDIVIDUAL AND REGIONAL FACTORS
OF DIVERSE ENTREPRENEURIAL LOGICS
Jean Bonnet*, Pascal Cussy* and Marcus Dejardin **
* Université
de Caen Basse-Normandie, CREM-CAEN, UMR CNRS 6211,
Faculté des Sciences économiques et de gestion,
19, rue Claude Bloch, 14032 Caen, France, [email protected], [email protected]
** Université
Catholique de Louvain et Université de Namur, CERPE,
Université de Namur, Faculté des Sciences économiques, sociales et de gestion
8, Rempart de la Vierge, 5000 Namur, Belgium, [email protected]
Objective
Our proposal aims to distinguish explanatory factors linked to individual characteristics
or/and regional context of the entrepreneurial phenomenon according to two modes of
entry: start-up or takeover. The ex-nihilo start-up mode of entry means the creation of a new
activity with a new added value whereas takeover means at least the continuation of an
activity that already exists. However, ex-nihilo start-ups and takeovers are usually
amalgamated in studies aiming to analyze the individual and contextual factors, i.e. regional
factors, of entrepreneurial events. Does this amalgamation be acceptable, or does it neglect
diverse entrepreneurial logics with different determining factors?
Originality of the subject
To our best knowledge a differentiated explanation of ex-nihilo start-up versus takeover
modes taking into account individual characteristics of the entrepreneur and the regional
context has not been done, neither tested in an econometric model. A recent study (Block,
Thurik and van der Zwan, 2010) sheds a light on this distinction, at the level of
entrepreneurial intentions, but relies upon national data in cross-section analysis. Parker and
Van Praag (2011) and Bastié, Cieply and Cussy (2013) examine the individual and sectorial
effects upon start-up and takeover. These latter found that entrepreneurs would choose
rather the takeover’s mode when they beforehand exercised functions in management;
when the project is weakly innovative, and when the market is essentially local.
Contrastingly when the company innovates and belongs to a growing branch of activity, exnihilo start-ups are more spread. We propose to connect the mode of entry, start-up or
takeover, to individual occupational choice and its regional context. If the national level is
important regarding different cultural and institutional contexts, the hypothesizes that we
test are mainly associated to local labor market functioning, to the density of activities, to
the portfolio of activities and to regional resources evaluated notably in socio-demographic
terms.
Question
What are the individual and regional determining factors of ex-nihilo start-ups versus
takeovers? Are they different? What about the intensity of relationships in one or another
case?
Methods
An analytical framework of the entrepreneurial phenomenon in terms of start-ups and
takeovers is built from the economic literature in the field of occupational choice (more
substantially, the personal economics) and regional economics. The hypotheses made are
tested through econometric methods. INSEE-SINE is the database exploited for the measure
of entrepreneurial phenomenon and individual characteristics. We add statistical
information collected at the regional level for the characterization of the regional context.
Contribution
In addition to a better understanding of the start-up/takeover components and their
differentiated determiners, the aim of the paper is to feed the discussion about public
policies. Is building a favorable framework for new-firm startups also useful for takeovers, or
should we define specific policies?
Expected results
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Analytical framework of the entrepreneurial phenomenon declined in terms of newfirms start-ups and takeovers;
Presentation of the French reality measured at the regional level ;
Appreciation of the global significativity of tested models and determiners;
Interpretation and discussion of the statistical and econometric results;
Thinking about public policies.
References
Abdesselam, R., Bonnet, J. et Le Pape, N. (1998), “Du profil du créateur-repreneur aux
caractéristiques des entreprises créées : une différentiation spatiale”, in : Emprego e
desenvolvimento regional. Actas do V Encontro Nacional da APDR, volume 2, 861-878.
Bastié F., Cieply S., Cussy P. (2013), “The entrepreneur's mode of entry: the effect of social
and financial capital”, Small Business Economics, 40, 4, 865-877.
Block, J., Thurik, R. et van der Zwan, P. (2010), “Business takeover or new venture? Individual
and environmental determinants from a cross-country study”, Entrepreneurship Theory and
Practice, 37, 5, 1099-1121.
Bonnet, J. (2010), “La dynamique entrepreneuriale du (des) territoire(s) français : entre
firmes entrepreneuriales et entrepreneuriat lié à l’économie résidentielle”, Canadian Journal
of Regional Science/Revue Canadienne de Science Régionale, 33, 27-38.
Dejardin, M. (2010), “La création d'entreprises et ses rapports au territoire”, Canadian
Journal of Regional Science / Revue Canadienne des Sciences Régionales, 33, 59-72.
Parker, S., Van Praag, M. (2012), “The entrepreneur’s mode of entry: business takeover or
new venture start?”, Journal of Business Venturing, 27, 1, 31-46.
Thurik, R., Dejardin, M. (2012), “Entrepreneurship and Culture”, in M. van Gelderen and E.
Masurel, eds, Entrepreneurship in Context, London: Routledge, 175-186.