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Article
Publication date: 21 November 2023

Omang Ombolo Messono and Simplice Asongu

This study aims to investigate the effects of the historical prevalence of infectious diseases on contemporary entrepreneurship. Previous studies reveal numerous proximate causes…

Abstract

Purpose

This study aims to investigate the effects of the historical prevalence of infectious diseases on contemporary entrepreneurship. Previous studies reveal numerous proximate causes of entrepreneurship, but little is known about the fundamental determinants of this widespread economic concern.

Design/methodology/approach

The central hypothesis is that historical pathogens exert persistent impacts on present-day entrepreneurship. The authors provide support for the underlying hypothesis using ordinary least squares and two-stage least squares with cross-sectional data from 125 countries consisting of the averages between 2006 and 2018.

Findings

Past diseases reduce entrepreneurship both directly and indirectly. The strongest indirect effects occur through GDP per capita, property rights, innovation, entrepreneurial attitudes, entrepreneurial abilities, entrepreneurial aspirations and skills. This result is robust to many sensitivity tests. Policymakers may take these findings into account and incorporate disease pathogens into the design of entrepreneurship.

Originality/value

The novelty of this paper lies in the adoption of a historical approach that sheds light on the deep historical roots of cross-country differences in entrepreneurship.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 14 March 2023

Dafna Kariv, Norris Krueger, Luis Cisneros and Gavriella Kashy-Rosenbaum

This study endeavors to decode the propensity for entrepreneurial action by addressing the perceptions of feasibility and desirability stemming from entrepreneurs' and…

Abstract

Purpose

This study endeavors to decode the propensity for entrepreneurial action by addressing the perceptions of feasibility and desirability stemming from entrepreneurs' and non-entrepreneurs’ appraisal of holding marketing capabilities; complemented by the direct and indirect effects of market stakeholders' support, assessed as bridging or buffering the entrepreneurial action.

Design/methodology/approach

Three groups were formed from a random sample of 1,957 Canadian (from Quebec) respondents to an online questionnaire: non-entrepreneurs with low entrepreneurial intentions, non-entrepreneurs with high entrepreneurial intentions and entrepreneurs with high entrepreneurial intentions.

Findings

The analyses revealed salient effects of perceptions of feasibility and desirability, coupled with appraisals of possessing marketing capabilities, on entrepreneurial propensity; and their strengthened relations when obtaining stakeholders' support. Overall, the results suggest that perceived market feasibility and market desirability are prominent factors in differentiating between entrepreneurial and non-entrepreneurial action, and the type and function of stakeholders' support are prominent in differentiating between intentions.

Practical implications

Practical implications include facilitating the transmission of marketing knowledge to novice entrepreneurs through higher education and the ecosystem.

Originality/value

The authors show that perceptions of feasibility and desirability are particularly dependent on the entrepreneur's perceived marketing capabilities and perceptions of entrepreneurial ecosystem supportiveness. This study thus captures a fuller range of the intentions–action relationship by gauging the unidimensional approach to entrepreneurial action through intertwining attributes at the individual and market levels. It takes a new look at feasibility and desirability through marketing capabilities; and offers a more robust classification of stakeholders' support—institution/people, bridging/buffering. Practical implications include facilitating the transmission of marketing knowledge to novice entrepreneurs through higher education and the ecosystem.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 14 December 2023

Juan Martin Ireta-Sanchez

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…

Abstract

Purpose

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Design/methodology/approach

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

Findings

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

Research limitations/implications

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

Practical implications

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Social implications

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Originality/value

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

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