Cost of External Finance and Selection into Entrepreneurship

This paper examines the extent to which the positive relationship between personal wealth and entry into entrepreneurship is due to financing constraints. I exploit a tax reform and use unique micro-data from Denmark to study how exogenous changes in the cost of external finance shape both the probability of entering entrepreneurship and the characteristics of those who become entrepreneurs. As expected, differences-in-differences estimates show that the entry rates for individuals who faced an increase in the cost of finance fell by 40% relative to those whose cost of external finance was unchanged. However, while some of the fall in entry was due to less wealthy individuals with high human capital (confirming the presence of financing constraints), the greatest relative decline in entry came from individuals with lower human capital, many of whom were above median wealth. This finding suggests that an important part of the positive relationship between personal wealth and entrepreneurship may be driven by the fact that wealthy individuals with lower ability can start new businesses because they are less likely to face the disciplining effect of external finance.financing constraints, entrepreneurship, entry.

Value Stream Mapping of Information Flow in Infrastructure Projects

Value Stream Mapping (VSM) is a tool for depicting the flow of material in a manufacturing process. This study demonstrates that value stream mapping can also be applied to the movement and processing of information in a non-manufacturing environment. Here, the handling of, and changes to, water project construction plans within the Cleveland Division of Water (DOW) are tracked using value stream mapping. The map identifies opportunities for the Division of Water to streamline its processes and ensure that accurate information about project construction reaches its primary database in a timely fashion. Currently it takes about 19.1 weeks from the time a project is proposed to the time the construction may begin. The value stream map shows that 17 weeks of this time consists of non-value added activity such as backlogs and waiting. A second issue of concern to the DOW is receiving the changes made to the original project plans. It is common for crews to deviate from plan to accommodate unexpected conditions found at a construction site. These changes must be communicated back to the Division of Water. Using Lean tools both value-added and non-value added activities on the value stream map can be identified. The future state map shows how the process might be improved after changes are made to the process. The challenge lies in organizing the information in the VSM to remove or reduce the non-value added steps. With the recommendations made to the Division of Water, the time from project proposal to the construction may feasibly be reduced from 19.1 weeks to 12.1 weeks. Similarly the bottleneck in the flow of the updated project information is identified. It is recommended that the bottleneck be removed as its value is negligible. There are some distinct differences between the office processes and manufacturing processes. Unlike production systems, information flows can be loosely structured and use informal scheduling, making it difficult to identify and map their values streams. However, companies can apply va

Entrepreneurship and the Discipline of External Finance

I confirm the finding that the propensity to start a new firm rises sharply among those in the top five percentiles of personal wealth. This pattern is more pronounced for entrants in less capital intensive sectors. Prior to entry, founders in this group earn about 6% less compared to those who stay in paid employment. Their firms are more likely to fail early and conditional on survival, less likely to be make money. This pattern is only true for the most-wealthy individuals, and is attenuated for wealthy individuals starting firms in capital intensive industries. Taken together, these findings suggest that the spike in entry at the top end of the wealth distribution is driven by low-ability individuals who can afford to start (and sometimes continue running) weaker firms because they do not face the discipline of external finance.

Value Stream Mapping of Information Flow in Infrastructure Projects

Value Stream Mapping (VSM) is a tool for depicting the flow of material in a manufacturing process. This study demonstrates that value stream mapping can also be applied to the movement and processing of information in a non-manufacturing environment. Here, the handling of, and changes to, water project construction plans within the Cleveland Division of Water (DOW) are tracked using value stream mapping. The map identifies opportunities for the Division of Water to streamline its processes and ensure that accurate information about project construction reaches its primary database in a timely fashion. Currently it takes about 19.1 weeks from the time a project is proposed to the time the construction may begin. The value stream map shows that 17 weeks of this time consists of non-value added activity such as backlogs and waiting. A second issue of concern to the DOW is receiving the changes made to the original project plans. It is common for crews to deviate from plan to accommodate unexpected conditions found at a construction site. These changes must be communicated back to the Division of Water. Using Lean tools both value-added and non-value added activities on the value stream map can be identified. The future state map shows how the process might be improved after changes are made to the process. The challenge lies in organizing the information in the VSM to remove or reduce the non-value added steps. With the recommendations made to the Division of Water, the time from project proposal to the construction may feasibly be reduced from 19.1 weeks to 12.1 weeks. Similarly the bottleneck in the flow of the updated project information is identified. It is recommended that the bottleneck be removed as its value is negligible. There are some distinct differences between the office processes and manufacturing processes. Unlike production systems, information flows can be loosely structured and use informal scheduling, making it difficult to identify and map their values streams. However, companies can apply va

Significance of Screening for Colonization and Vancomycin Resistance in Staphylococcus aureus Isolated from Anterior Nares of School Going Children

No abstrac