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David Storey was a pioneer in the field of entrepreneurship, known for his contributions to the study of small businesses and entrepreneurship. His work focused on policies to stimulate entrepreneurship, emphasizing rigorous research and experimental methods. Storey highlighted the role of small businesses in job creation and the importance of regional factors in policy development. He advocated for better data and analytical methods to improve research quality. Storey's research challenged conventional wisdom, questioning assumptions about new firm start-ups and the role of skill in entrepreneurial success. He also explored the randomness and unpredictability of entrepreneurial outcomes. Storey's work made significant contributions to understanding firm growth, regional entrepreneurship, and the effects of entrepreneurship on regional development. He approached entrepreneurship research with skepticism, modesty, and a contrarian perspective. [Extracted from the article]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jebo.2004.12.005 Byline: Simon C. Parker Keywords: Learning by doing; Credit markets Abstract: I explore the economic implications of learning by doing by borrower entrepreneurs who are initially imperfectly informed about their innate abilities. It is shown how entrepreneurial learning worsens the adverse effects of moral hazard, causing the possible disappearance of otherwise viable credit markets and thereby decreasing social welfare. The reason is that learning reduces subjective uncertainty about risky future outcomes, thus encouraging excessive risk-taking behaviour. Author Affiliation: School of Economics, Finance & Business, University of Durham, 23-26 Old Elvet, Durham DH1 3HY, UK Article History: Received 10 April 2002; Revised 18 October 2004; Accepted 10 December 2004

Does the mass media promote entrepreneurship? Using big data in combination with a machine learning-aided analysis, we discover a positive sentiment bias associated with entrepreneurship present in two major English-language media outlets: The New York Times and the Financial Times. Over 800,000 excerpts from 12- and 16-year periods were analyzed. Those containing the words "entrepreneur" and "founder" were found to have much more positive sentiment than did excerpts with the words "manager" and "executive." A parallel analysis of the FANG companies (i.e., Facebook, Amazon, Netflix, and Google) in comparison to a set of older and more established Fortune 500 companies produced similar results. While more work is needed to verify the link between media biases and career choice, we believe this media bias promotes entrepreneurship, resulting in lower (average) incomes and higher risks for those engaged in this career path. However, because entrepreneurial activity can create positive externalities in the broader economy, this bias, while financially disadvantageous for the average entrepreneur, may be beneficial overall for society. [ABSTRACT FROM AUTHOR]

This article discusses economic theories of entrepreneurship, drawing principally on work conducted in labour economics, microeconomics, macroeconomics, and financial economics. The article explains how incentives and constraints of various kinds affect occupational choices and entrepreneurial innovation, as well as how entrepreneurial decisions affect macroeconomic performance. Implications for public policy are drawn. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between cognitive abilities and team performance in a start-up setting. We argue that performance in this setting hinges on three tasks: opportunity recognition, problem solving, and implementation. We theorize that cognitive ability at the individual level has a positive effect on opportunity recognition and problem solving but no clear effect on implementation. Within teams, a combination of higher and lower cognitive ability levels may be productive insofar as some individuals can be assigned to mundane tasks (that are often involved in implementation), while others can be assigned to tasks that impose a greater cognitive load (problem solving or opportunity recognition). We present the results of a field experiment in which 573 students in 49 teams started up and managed real companies. We ensured exogenous variation in-otherwise random-team composition by assigning students to teams based on their measured cognitive abilities. Each team performed a variety of tasks, often involving complex decision making. The key result of the experiment is that the performance of start-up teams first increases and then decreases with ability dispersion. Strikingly, average team ability is not related to team performance. [ABSTRACT FROM AUTHOR]

We study entrepreneurs' start-up financing from banks and local financiers. An informal network, whose membership cannot be observed by outsiders, conveys the good signals it gets about the hidden types of network entrepreneurs to local financiers, which are then reflected in different loan terms. We show that there are winners and losers as a result of the network even among its members. Because all projects have positive net value, it is efficient to finance them even in the absence of a network. Thus, the formation of the network is inefficient as entrepreneurs incur networking costs for purely redistributive gains in the form of better loan terms as network members. [ABSTRACT FROM AUTHOR]

Previous studies provide suggestive evidence that entrepreneurship varies with the state of the business cycle. This article extends the knowledge base by exploring whether the rate of self-employment – a widely used measure of entrepreneurship – is a lagging or leading indicator of the business cycle. The study, which utilizes time series UK data on aggregate output, unemployment and self-employment rates, is robust to structural breaks in the cyclical relationships between these variables. The study finds evidence of significant bi-directional causality: that is, entrepreneurship both causes and is caused by business cycles. The covariance of entrepreneurship is positive with respect to output and negative with respect to unemployment. [ABSTRACT FROM PUBLISHER]

This paper discusses several prominent economic theories which link entrepreneurs and their innovations to the creation and magnitude of business cycles. I distinguish three broad classes of theories: models of creative destruction; models of innovation and implementation cycles; and models of production under asymmetric information. Key insights of the theories are identified, policy implications are drawn, and suggestions for future research are proposed. [ABSTRACT FROM AUTHOR]

Based on the Theory of Planned Behavior, we investigate how early differences in venturing motivation inform the selection to become an intrapreneur for your employer rather than an independent entrepreneur. Using the combined PSED I & II data in a bivariate probit model with sample selection we analyze the effect of four motivational scales on the probability to self-select into nascent venturing and to be selected by an organization into nascent intrapreneurship. Our estimations address possible selection bias in occupational choice. We find that the same motives that make individuals less likely to start any sort of business make them more likely to be attractive candidates for intrapreneurship. We discuss implications for entrepreneurs, intrapreneurs, researchers, and policy makers. [ABSTRACT FROM AUTHOR]

Relatively little is known about the impact of public policies on the decisions of firms to contract out parts of their production, despite widespread growth in this practice. The present paper uses a simple principal-agent model to explore the effects of various public policies which affect employers' incentives to outsource by re-grading their employees as independent self-employed contractors. Minimum wages are predicted to increase contracting out, as are payroll and income taxes under several plausible conditions, including worker preferences exhibiting constant relative risk aversion. [ABSTRACT FROM AUTHOR]

The article discusses various reports published within the issue, including one by Colin Mason entitled "Public Policy Support for the Informal Venture Capital Market in Europe: A Critical Review," one "Is there Ethnic Discrimination in the UK Market for Small Business Credit?"\ by Stuart Frase and one "Regional Opportunities and Policy Initiatives for New Ventures Creation," by Ingrid Verheul.

The paper proposes a human capital-based model of choice between paid employment and entrepreneurship that can give rise to multiple equilibria in occupational structure. The model is consistent with evidence of pronounced, persistent, and hitherto unexplained regional variations in entrepreneurship. Whether multiple equilibria emerge is shown to depend on the occupation-specific productivity of human capital and the costs of human and financial capital. The paper goes on to discuss the implications for governments seeking to promote entrepreneurship as a tool of regional development policy. [ABSTRACT FROM AUTHOR]

This section introduces a series of articles on the impact that government policies have on entrepreneurship and how gender and children impact entrepreneurial choices and activities.

After bank finance, borrowing from family and friends is the chief source of funds for new business start-ups in many countries, including the UK. Yet there has been virtually no treatment of this issue in the literature to date. We rectify this omission by developing a model of lending behaviour in which family members may have selfish or altruistic motives. We identify the key determinants of family lending using a unique data on Asian entrepreneurs in Britain. [ABSTRACT FROM AUTHOR]

This paper examines the pattern of UK self-employment income inequality between 1976 and 1991, and develops a simple model of the size distribution. Inequality measures are related to the parameters of this distribution, whose economic determinants are explained. It is found that the principal cause of rising self-employment income inequality over this period was a substantial increase in the heterogeneity of the self-employed themselves. In contrast, the increased numbers engaged in self-employment over the period seems to have had no discernible effect on inequality via the parameters of the self-employment income distribution. [ABSTRACT FROM AUTHOR]

The article presents several abstracts on economical topics. The article "Determinants and Consequences of Promotions in Britain," using longitudinal data from the British Household Panel Survey 1991-1995, finds that 9 percent of all workers report a promotion at their firm in any given year and that promotions account for approximately 36 percent of total job turnover, with small gender differences. The article "Wages and Politics: Evidence from the Norwegian Public Sector," presents empirical results for wage setting in the Norwegian local and central public sector. The article "Family Finance and New Business Start-ups," identifies the key determinants of family lending using a unique data on Asian entrepreneurs in Great Britain. The article "Do High Interest Rates Appreciate Exchange Rates During Crisis? The Korean Evidence," uses Korean high-frequency data during the crisis and its aftermath to examine the relationship between the increase in interest rates and the behaviour of exchange rates.