Publication:
What Determines Entrepreneurial Outcomes in Emerging Markets?: The Role of Initial Conditions

Simple item page
dc.contributor.authorAyyagari, Meghana
dc.contributor.authorDemirguc-Kunt, Asli
dc.contributor.authorMaksimovic, Vojislav
dc.date.accessioned2015-03-30T20:39:25Z
dc.date.available2015-03-30T20:39:25Z
dc.date.issued2015-03
dc.description.abstractIs it the institutions or firm characteristics at birth that shape startups and their early growth in developing countries? Using comprehensive data from the Indian Annual Survey of Industries this paper addresses this question by studying the early lifecycle of firms across diverse institutional environments of regions in India. It finds that the size and characteristics of a start-up at entry are persistent over the first eight years of a firm's life. However, given these initial conditions at entry, institutions do not have much explanatory power in determining growth. The comparative growth rates of large and small start-ups are not significantly different across states with different local institutions or industries with differing reliance on external finance or need for fixed capital. But institutions, particularly the availability of credit, do have an impact on the initial entry process. Access to external finance is associated with greater overall entry, and also smaller sized entry. The results do not appear to be driven by endogeneity of access to credit or sample selection. The results show that the channel through which institutions affect the relative outcomes of young firms is through the initial distribution of firm characteristics at entry rather than their effect on the performance of the firms post entry.en
dc.identifier.doi10.1596/1813-9450-7207
dc.identifier.urihttps://hdl.handle.net/10986/21646
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7207
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectjobs
dc.subjectemployment
dc.subjectbanking regulation
dc.subjectmonetary policy
dc.subjectunpaid family workers
dc.subjectaccounting
dc.subjectdeposits
dc.subjectproduction
dc.subjectexcise taxes
dc.subjectskilled workers
dc.subjectinformal sector
dc.subjectinflexible labor
dc.subjectincome
dc.subjectinterest
dc.subjectindustry characteristics
dc.subjectindustry
dc.subjectbanking system
dc.subjectreserve requirements
dc.subjectbanking services
dc.subjectwater supply
dc.subjectservices
dc.subjectreserve bank of india
dc.subjectprimary source
dc.subjecteffects
dc.subjectlabor market regulation
dc.subjectbanking reform
dc.subjecttrade reforms
dc.subjectfirm size
dc.subjectemployment size
dc.subjectindustry characteristic
dc.subjectrural banks
dc.subjectsmall business
dc.subjectpresent value
dc.subjectlabor market
dc.subjecttotal factor productivity
dc.subjectdevelopment economics
dc.subjectbanking sector reforms
dc.subjecttransport
dc.subjectfirm level
dc.subjectdeclining industries
dc.subjectworker
dc.subjectoutputs
dc.subjectprivate banks
dc.subjectproductivity
dc.subjectentry rate
dc.subjectlocal financial institutions
dc.subjectattrition
dc.subjectfinancial institutions
dc.subjectdebt
dc.subjectmarkets
dc.subjectstate owned banks
dc.subjectorganizations
dc.subjectlegislation
dc.subjectflexible labor markets
dc.subjectlocal firms
dc.subjectfirm size distribution
dc.subjecteconomic policies
dc.subjectlabor
dc.subjectloans
dc.subjectlabor regulation
dc.subjectfinance
dc.subjectefficiency
dc.subjectinfrastructure
dc.subjecttaxes
dc.subjectbanking sector
dc.subjectbanks
dc.subjectemerging markets
dc.subjectfirm entry
dc.subjectentrepreneurial ability
dc.subjectproductivity growth
dc.subjecthuman capital
dc.subjectworkers
dc.subjectcapital
dc.subjectpolicies
dc.subjectemployment protection legislation
dc.subjectvalue
dc.subjectbank
dc.subjectcredit
dc.subjectlarge cities
dc.subjectmacroeconomics
dc.subjectlabour market
dc.subjectprivate firms
dc.subjectlabor market institutions
dc.subjectproperty
dc.subjectfirm performance
dc.subjectforeign banks
dc.subjectlabor market outcomes
dc.subjectemployment growth
dc.subjectprivate sector
dc.subjectproductivity distribution
dc.subjecteconomics
dc.subjectmanagement
dc.subjectprofitability
dc.subjectsocial capital
dc.subjectmanufacturing industries
dc.subjectnew entrants
dc.subjectemployment growth rates
dc.subjectretained earnings
dc.subjectinvestment
dc.subjectcommercial banks
dc.subjectfinancial markets
dc.subjectlabor market regulations
dc.subjectsupply
dc.subjectbanking
dc.subjectemployee
dc.subjectinstitutional development
dc.subjectlabor intensity
dc.subjectrevenue
dc.subjectemployment dynamics
dc.subjectlaw
dc.subjectprofit
dc.subjectfinancial structure
dc.subjectage category
dc.subjectprivate companies
dc.subjectfirm growth
dc.subjectentrepreneurship
dc.subjectlabour
dc.subjectfinancial systems
dc.subjectlabor markets
dc.subjectadb
dc.subjectgovernments
dc.subjectoutcomes
dc.subjecthigh-entry industries
dc.subjectlabor regulations
dc.subjectproduction processes
dc.subjectemployees
dc.titleWhat Determines Entrepreneurial Outcomes in Emerging Markets?en
dc.title.subtitleThe Role of Initial Conditionsen
dspace.entity.typePublication
okr.crossref.titleWhat Determines Entrepreneurial Outcomes in Emerging Markets? The Role of Initial Conditions
okr.date.disclosure2015-03-06
okr.date.doiregistration2025-04-10T09:58:27.289031Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.globalpracticeTrade and Competitiveness
okr.guid879001467998259448
okr.identifier.doi10.1596/1813-9450-7207
okr.identifier.reportWPS7207
okr.language.supporteden
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicScience and Technology Development::Innovation
okr.topicScience and Technology Development::Technology Innovation
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Economics Research Group (DECRG)
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
WPS7207.pdf
Size:
1.47 MB
Format:
Adobe Portable Document Format
Description:
English PDF
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Policy Research Working Papers