Browsing by Subject "Small business"

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From passion to performance : entrepreneurial passion in the creative industries
(2022) Schulte-Holthaus, Stefan; Kuckertz, Andreas
Entrepreneurship drives progress, innovation, growth, and prosperity. Passion, in turn, motivates and energizes people to pursue meaningful activities on a sustained basis. In following their passion and in interacting with their proximal environments, people build up competencies, knowledge, experience, and social relations, which may result in peak performance. When passion develops and relates to the creation, discovery and exploitation of entrepreneurial opportunities, entrepreneurial passion emerges. The current state of research shows that entrepreneurial passion is a source of motivation, inspiration, creativity, and perseverance. In the cultural and creative industries, entrepreneurship often begins from a passion for an artistic or creative work that is pursued as a hobby or leisure activity, which professionalizes over time. Thereby, passion for a creative or artistic activity can also create tensions between ideational and economic-organizational imperatives in entrepreneurial contexts. However, how, and why an artistic or creative passion develops into an entrepreneurial one and how it affects entrepreneurial success is unchartered territory. Hence, the aim of this dissertation is to investigate and explain the development of passion and its effect on entrepreneurial performance of creative people whose venturing ambitions are primarily driven by a non-entrepreneurial passion. The first study identifies the current state of literature on entrepreneurship in the cultural and creative industries. The review elaborates the phenomenon of a non-entrepreneurial passion as central feature of creative industries entrepreneurship and outlines its potential for future research. The second study presents a review of the state of research on passion in the entrepreneurial context and develops a theory-based approach that explains how passion emerges, and how it can extend to entrepreneurship and lead to entrepreneurial performance. Based on 11 semi-structured interviews with successful entrepreneurs whose life paths are characterized by passion for music, the third study follows this assumption and generates mental maps using the Conceptual Causal Mapping method. The results explain the development of real-life passion over time, its current constitution and embeddedness within the personal, social, and entrepreneurial life context and the relation of passion to performance. Based on the person-environment fit theory, the final study develops a model that substantiates the positive effects of life context fit on entrepreneurial passion and performance. Life context fit is operationalized using personal project analysis and the hypotheses were tested on a sample of 406 creative entrepreneurs using partial least squares structural equation modeling. The results demonstrate the effect of life context fit on entrepreneurial passion and its successive translation into performance in four subsegments that can be classified as artepreneurs, culturepreneurs, creative entrepreneurs, and lifestyle entrepreneurs. However, contrary to expectations, the analyses also indicate that neither the life context fit, nor the domains of entrepreneurial passion have uniform positive outcomes. Rather, these relations occur with compounded positive and negative effects. These results are surprising as the extant literature has found nearly consistent positive outcomes of passion on performance. Post-hoc analyses reveal the varying constitutions of life contexts and the existence of previously unmeasurable domains of entrepreneurial passion for products, for people, and for a social cause among creative practitioners and help explaining the positive and negative combination effects in the segments. Overall, this dissertation contributes to the cultural and creative industries literature, the state of research on passion in entrepreneurship and psychology, and the literature whose epistemological interest aim at capturing and explaining entrepreneurial contexts and environments. Findings reveal (a) the central importance, development, and impact of passion among creative and cultural entrepreneurs, (b) the influence of life context on passion and performance, and (c) the interplay of combined positive and adverse effects of the domains of entrepreneurial passion and their impact on entrepreneurial performance.
The connection between banking systems and the economy
(2021) Schmidt, Daniel Alexander; Burghof, Hans-Peter
Banks fulfil various tasks within an economy. While the functions of banks are comparable around the world, the banking business organisation and banking systems are not. In addition, the way in which banks conduct their business differs greatly depending on the legal structure of the institute. Given the important role of banks as well as the variety of banking systems and business models, analysing their influence on the economy and on firms is a relevant task of modern research. In this dissertation, I focus on European countries to answer the overall research question: How are banking systems and the economy connected? My contribution to the literature is threefold. (1) I show that the presence of savings banks and co-operative banks improve regional wealth and reduce inequality. (2) Furthermore, my analyses explain how those banking types enhance the performance of local firms, especially small and medium-sized enterprises. Moreover, I evaluate the connection between banking systems and the economy from a different angle. (3) I outline the impact of economic factors on regulatory capital requirements for large banks. The results suggest that banking regulation is not completely politically independent and differs between European states. I show that national economic preconditions change the parameters for banking business within a country. In my first project, my co-authors and I use panel data on regional levels to study the influence of regional banking systems on local wealth and inequality in five European countries. We know from the literature that banks behave differently depending on their characteristics such as the size, the legal form, their business purposes and their internal company structure. As the varying banking forms have different advantages and disadvantages, a diverse banking system should be beneficial. The econometrical analyses demonstrate the positive impact of a multiplex regional banking system on GDP per capita, the unemployment rate and the primary private household income per capita. The results support the insights from the literature and show the positive influence of small regional banks. The outcome suggests that certain banking forms are beneficial in different situations. For example, savings banks especially reduce local unemployment whereas co-operative banks improve regional GDP per capita, and LLCs have a particularly large impact on primary private household income per capita. In the third chapter, I specify the influence of regional banking systems on certain participants of local economies. Local and decentralized banks are better able to analyse soft information. This ability should be of advantage when working with new companies and smaller firms where, for example, the ability of the management is key for the success of such enterprises. The econometrical analyses in this chapter show the strong positive influence of savings banks, co-operative banks and LLCs on SMEs. The evidence suggests that the positive impact of smaller banks is also apparent when observing performance of all firms within a local economy, but is clearer when looking on SMEs in particular. In the fourth chapter, my co-authors and I analyse the connection between financial systems and the economy from a different perspective. Progressing from a regional level of observation, we concentrate on comparing country information. The literature suggests that politicians might be motivated to influence the regulation of financial institutions to the benefit of their respective country or their own re-election. In panel regressions including information from the EBA, bank balance sheet data and economic data, we demonstrate that the processes to identify systemically important institutions within Europe are comparable. Building on this finding, we show that national regulators adjust the equity requirements for such institutions (i.e. O-SIIs) depending on the economic situation of their respective country. Therefore, capital requirements are influenced by factors not necessarily connected to the systemic importance of large banks. This unequal treatment leads to different business environments for otherwise comparable banks, depending on the country in which they are located. This is especially relevant, as the target was to harmonize banking regulation for large institutions in Europe.