Search results

Empirical studies show low pecuniary returns as a result of switching from wage employment to entrepreneurship. We reconsider the pecuniary gains attributable to this switching by using an event study design and a variety of identifying assumptions aimed at obtaining robust estimates of causal effects. An earnings equation is estimated on data covering the whole Norwegian population of individuals matched to the entire population of firms established in the period 2002–2013. We find unambiguous evidence that the average returns to entrepreneurship are negative for individuals entering entrepreneurship through self-employment and positive, but modest for incorporated startups. The positive returns to incorporated entrepreneurship comes at the cost of much higher income risk: incorporated entrepreneurs experience an increase in the standard deviation of log earnings growth of almost 75% compared to remaining in wage employment. While there is a huge gender gap in entrepreneurship rates, we find no significant difference between men and women in the average returns to entrepreneurship.

The purpose of this paper is to bring attention to “entrepreneurial finance education”, an aspect of entrepreneurship education that is widely taught but neglected by the educational literature. It does so by exploring how social capital, a key resource for entrepreneurs, can be incorporated into entrepreneurial finance education.

By drawing upon social capital literature in the context of funding sources for entrepreneurs, the paper highlights the significance of bonding and bridging social capital for entrepreneurial finance.

The review of relevant literature confirms the importance of social capital for entrepreneurial finance. The existence of bonding social capital, which refers to a trusting relationship between entrepreneurs and financiers, allows entrepreneurs to access their financiers’ resources (e.g. contacts, knowledge, reputation, further funds) through bridging social capital.

Students of entrepreneurial finance need to understand the role that both facets of social capital play in the context of fundraising. This paper proposes ways of incorporating social capital into various approaches to entrepreneurial finance education. This allows educators to include relevant topics and research into their syllabi, while enabling students to study a crucial, yet under-represented, topic in entrepreneurial finance education.

Given that entrepreneurial finance education has to date been neglected in the educational literature, this paper begins to address a huge void. It clarifies potential contents of entrepreneurial finance education, demonstrates the importance of including social capital in the education of entrepreneurial finance students and suggests practical ways of achieving this.

The role of spirituality in entrepreneurship is a new area of inquiry that has emerged from different scholarly fields. There is no specific way to study spirituality as it rather depends on the context and influence of religious beliefs. This paper aims to study the integration of spirituality in the entrepreneurial journeys of individual entrepreneurs in Pakistan. Thereby focusing on the factors that set reassurance for entrepreneurs to practice their spiritual beliefs in an emerging market context.

Using a qualitative research approach and data from entrepreneurs in different businesses, this study examines how entrepreneurs reach the point where they are willing to run their businesses based on their spiritual beliefs. The data analysis technique used to study the entrepreneurs is the Gioia method of analysis, which enables key themes to emerge.

This study finds that the process through which Pakistani entrepreneurs run their businesses based on spiritual beliefs within their mission and goals can be considered as discerning spiritual beliefs, affirmation of spiritual beliefs and materializing beliefs into action. Each of these spiritual beliefs has been accumulated through lifelong learning and experience in which trust in business relationships is highlighted.

The insights of this study can be applied to different entrepreneurial ventures to create a framework of entrepreneurial businesses that incorporate spirituality within their mission and vision statements. It can then be used to design education and training activities for other spiritual entrepreneurs to enable further entrepreneurial development in different communities.

Spirituality can alter the entrepreneurial nature of a business. This means that entrepreneurs who possess high spiritual beliefs can incorporate their spirituality within specific business functions to enable a more positive outcome. This study stands as the first in Pakistan to consider the ways entrepreneurs incorporate their spiritual beliefs in their entrepreneurial journey.

The purpose of this paper is to expand the empirical literature on the association between non-compete agreement (NCA) enforceability and entrepreneurship by investigating how NCA policies affect different types of entrepreneurship with incorporated and unincorporated businesses.

The authors estimate difference-in-differences regressions based on individual-level data. This allows to control for heterogeneity at the individual level. Additionally, the authors provide graphical evidence using the synthetic control method (SCM).

The authors' findings show that the decrease in the enforceability of NCAs in Massachusetts resulted in a higher rate of unincorporated entrepreneurship among low-wage workers. At the same time, there was no sizable effect on the rate of incorporated entrepreneurship. For Utah, the authors' results indicate that the reform increased both types of entrepreneurship. The findings imply that states can promote entrepreneurial activity by reducing the enforceability of NCAs. The way of changing the enforceability of NCAs matters, as different provisions encourage different types of entrepreneurship in a given state.

The authors contribute to the literature on NCA enforceability effects on entrepreneurship in three ways. First, the authors utilize two quasi-experiments, the NCA policy changes in Utah in 2016 and Massachusetts in 2018, limiting NCAs to one year for all workers. Second, to the authors' knowledge, this is the first individual-level analysis that separates self-employment with incorporated and unincorporated businesses as two different types of entrepreneurship to analyze potentially heterogeneous effects of NCAs. Third, this is the first study to utilize American Community Survey (ACS) data in this literature.

A proposed explanation for why business creation is often found to increase in recessions is that there are two components to entrepreneurship – “opportunity” and “necessity” – the latter of which is mostly counter-cyclical. Although there is some agreement on the conceptual distinction between these two factors driving entrepreneurship, there is little consensus in the literature on empirical definitions. The goal of this chapter is to propose an operational definition of opportunity versus necessity entrepreneurship based on the entrepreneur's prior work status (i.e., based on previous unemployment) that is straightforward, based on objective information, and empirically feasible using many large, nationally representative datasets. We then explore the validity of the definitions with theory and empirical evidence. Using datasets from the United States and Germany, we find that 80–90% of entrepreneurs are opportunity entrepreneurs. Applying our proposed definitions, we document that opportunity entrepreneurship is generally pro-cyclical and necessity entrepreneurship is strongly counter-cyclical both at the national levels and across local economic conditions. We also find that opportunity vs necessity entrepreneurship is associated with the creation of more growth-oriented businesses. The operational definitions of opportunity and necessity entrepreneurship proposed here may be useful for distinguishing between the two types of entrepreneurship in future research.

This paper aims to examine the relationship between religiosity based on the area with the number of self-employment in an area, i.e. city of Surakarta, Indonesia.

The researcher conducted a survey in 67 mosques in Surakarta, Indonesia, to capture religiosity level based on the area. Spearman correlation approach has been selected to investigate the relationship between religiosity and self-employment.

This study found that despite the female population being greater than male population in every district in Surakarta, on average, the number of female prayers were significantly less than male prayers either in Fajr or Maghrib prayer. In fact, the average number of Fajr prayers almost 50 per cent less than the average number of Maghrib prayers. Finally, the researcher found that the number of employees who work in the home industry is higher in the area that has a smaller gap on the number of Fajr and Maghrib prayers. Thus, the researcher might conclude that religiosity is positively associated with self-employment.

To best of researcher’s knowledge, this is the first study that investigates the relationship between religiosity level based on the area and self-employment. In addition, this study proposes a new methodology to measure Muslim’s religiosity. All in all, this study tries to untangle the conflicting evidence on the impact of religiosity on the self-employment.

The purpose of this paper is to study the nature of the relationship between the entrepreneur and the banker, which is central to any analysis of business creation and innovation management. The author’s main purpose is to understand how this relationship has been studied by the pioneer economists of the entrepreneur and to highlight their contribution to the understanding of today’s reality.

To do so, the author proposes a sketch of an entrepreneur and banker economics based on the study of six economists (Cantillon, Smith, Bentham, Say, Schumpeter and Baumol) known for their works on entrepreneur theory. In their works, they explained how the (often difficult) relationship between the entrepreneur and the banker is built in a context of multi-uncertainty. They define the entrepreneur in different ways (a risk-taker, a prudent man, a projector, etc.), and put forward different behaviors facing uncertainty through social relations. The relationship between the entrepreneur and the banker can be read according to the grid of analysis of strong or weak ties (Granovetter, 1973).

This analysis demonstrates the importance of trust between the two protagonists. This contribution remains fundamental to study the behavior of financers and entrepreneurs today in the context of business eco-systems, clusters, science parks ‒ in other words, the main places of emergence of innovation.

This research leads to the proposal of the main basis of an economics of the entrepreneur and the banker; it can be further developed with the addition of other contributions of historical economists.

This research shows the importance of thinking about the ways to build trust within the relation between entrepreneurs and their funders (bankers, venture capital, crowdfunding).

The analysis of social ties (weak or strong) plays a major role in this relation.

The originality of the article is to come back to the works of pioneer economists and to show their contributions to the understanding of today’s reality.

The aim of this paper is to analyze the impact of the implementation of a psychological assistance program on new entrepreneurs in a business incubator of a public university located in an emerging economy. The methodology was an intrinsic case study through qualitative approach. The findings suggest that this program had a positive impact on new entrepreneurs; it promoted a space for reflection, motivation and perseverance; it encouraged them to handle different emotions or factors to achieve its business targets. Thus, it helped them to improve the chances of success of their start-ups by learning and strengthening key psychological entrepreneurial competences.

Given the importance of technology in competitive advantage, this paper seeks to better understand the factors associated with entrepreneurs' decision to incorporate innovative technologies in new ventures. It aims to explore three questions: “Are the reasons given for starting technologically innovative new ventures (TINVs) different from those given for starting ventures based on traditional technologies?”; “What is the role of human capital in the TINV startup decision?”; and “Do gender differences exist in the reasons and human capital associated with starting a TINV?”.

Data were obtained from the Panel Study of Entrepreneurial Dynamics II (PSED II), which is a national database of individuals in various stages of starting a business. The overall sample consisted of 950 individuals. Non‐parametric methods and logistic regressions were used to test hypotheses.

Results show that men start the TINV for self‐realization reasons, and that wealth seeking and employment reasons are negatively associated with the technology startup decision among women, but not among men. Human capital positively predicts the decision to start TINV, but gender differences exist as well: specific human capital (industry and occupational background) positively predicts the technology startup decision among men, whereas general human capital (education and employment breadth) positively predicts the decision among women.

Better understanding of the factors that motivate and encourage entrepreneurs to utilize innovative technologies is useful for policymakers, practitioners, and educators. This understanding can help when allocating resources for the purpose of encouraging innovation and when trying to train entrepreneurs to enhance competitiveness of new ventures.

The study highlights some of the factors associated with the decision to start firms that are technologically innovative. Given that incorporating technology in new venture is often considered a key factor in sustainability and long term competitive advantage, the study provides possible explanations for potential sources of competitive advantage. Implications for the role of motives and human capital in the startup decision and in the decision to incorporate technology are discussed, with specific reference for male and female owned business.

The purpose of this paper is to explore whether and how entrepreneurs in the cultural and creative industries develop an entrepreneurial identity. It also aims to expand research on cultural and creative entrepreneurship.

The study is based on longitudinal qualitative cases and analyses the potential entrepreneurial identity development of eight cultural and creative entrepreneurs from Germany. The researchers create a framework to ascertain whether and, if so, how cultural and creative entrepreneurs develop an entrepreneurial identity.

The findings suggest that cultural and creative entrepreneurs do develop an entrepreneurial identity and incorporate their cultural and creative identity into that entrepreneurial identity whereas self-reflection is a key driver in the development.

Cultural and creative entrepreneurs are a key driver of economic development. Hence, it is important to generate a more detailed understanding of their entrepreneurial mind-set and their behaviour.

The study suggests that cultural and creative entrepreneurs actively develop an entrepreneurial identity and that self-reflection, communication with other entrepreneurs and entrepreneurial experience are the main drivers of their identity development. Nevertheless, their cultural and creative identity does have an influence on their entrepreneurial identity. In addition, the study demonstrates how such entrepreneurs develop their identity.