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Article
Publication date: 18 April 2024

Diana M. Hechavarría, Maribel Guerrero, Siri Terjesen and Azucena Grady

This study explores the relationship between economic freedom and gender ideologies on the allocation of women’s opportunity-to-necessity entrepreneurship across countries…

Abstract

Purpose

This study explores the relationship between economic freedom and gender ideologies on the allocation of women’s opportunity-to-necessity entrepreneurship across countries. Opportunity entrepreneurship is typically understood as one’s best option for work, whereas necessity entrepreneurship describes the choice as driven by no better option for work. Specifically, we examine how economic freedom (i.e. each country’s policies that facilitate voluntary exchange) and gender ideologies (i.e. each country’s propensity for gendered separate spheres) affect the distribution of women’s opportunity-to-necessity entrepreneurship across countries.

Design/methodology/approach

We construct our sample by matching data from the following country-level sources: the Global Entrepreneurship Monitor’s Adult Population Survey (APS), the Fraser Institute’s Economic Freedom Index (EFI), the European/World Value Survey’s Integrated Values Survey (IVS) gender equality index, and other covariates from the IVS, Varieties of Democracy (V-dem) World Bank (WB) databases. Our final sample consists of 729 observations from 109 countries between 2006 and 2018. Entrepreneurial activity motivations are measured by the ratio of the percentage of women’s opportunity-driven total nascent and early-stage entrepreneurship to the percentage of female necessity-driven total nascent and early-stage entrepreneurship at the country level. Due to a first-order autoregressive process and heteroskedastic cross-sectional dependence in our panel, we estimate a fixed-effect regression with robust standard errors clustered by country.

Findings

After controlling for multiple macro-level factors, we find two interesting findings. First, economic freedom positively affects the ratio of women’s opportunity-to-necessity entrepreneurship. We find that the size of government, sound money, and business and credit regulations play the most important role in shaping the distribution of contextual motivations over time and between countries. However, this effect appears to benefit efficiency and innovation economies more than factor economies in our sub-sample analysis. Second, gender ideologies of political equality positively affect the ratio of women’s opportunity-to-necessity entrepreneurship, and this effect is most pronounced for efficiency economies.

Originality/value

This study offers one critical contribution to the entrepreneurship literature by demonstrating how economic freedom and gender ideologies shape the distribution of contextual motivation for women’s entrepreneurship cross-culturally. We answer calls to better understand the variation within women’s entrepreneurship instead of comparing women’s and men’s entrepreneurial activity. As a result, our study sheds light on how structural aspects of societies shape the allocation of women’s entrepreneurial motivations through their institutional arrangements.

Details

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

Keywords

Book part
Publication date: 23 November 2020

Robert W. Fairlie and Frank M. Fossen

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” …

Abstract

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.

Details

Change at Home, in the Labor Market, and On the Job
Type: Book
ISBN: 978-1-83909-933-5

Keywords

Article
Publication date: 27 November 2023

Jabir Ali

This paper aims at measuring the factors affecting early-stage entrepreneurial activity by opportunity vs necessity motives in India using theory of planned behaviour.

Abstract

Purpose

This paper aims at measuring the factors affecting early-stage entrepreneurial activity by opportunity vs necessity motives in India using theory of planned behaviour.

Design/methodology/approach

The study is based on the Adult Population Survey (APS) of Global Entrepreneurship Monitor (GEM), covering 4,165 respondents in 2018. The data has been analysed using descriptive statistics, chi-square test, analysis of variance and logistics regression. The theory of planned behaviour has been used to identify the determinants of early-stage entrepreneurial activity by opportunity vs necessity motives.

Findings

About 13.1% of the respondents reported early-stage entrepreneurial activity, of which opportunity motives were reported by 6.5% respondents, necessity motives by 5.4% respondents and the remaining 1.2% respondents reported other motives. Further, the mean difference in early-stage entrepreneurial activities by motives shows the domination of opportunity-driven entrepreneurial activities. Finally, marginal effects of all determining variables and three components of the theory of planned behaviour, i.e. attitude towards entrepreneurship (ATE), perceived subjective norm (PSN) and perceived behavioural control (PBC), have been estimated on opportunity vs necessity motives of early-stage entrepreneurial activities.

Practical implications

This paper contributes theoretically and practically to the existing body of knowledge by predicting the factors affecting opportunity vs necessity motives of early-stage entrepreneurial activities by applying the theory of planned behaviour. Considering the current focus of the government on promoting entrepreneurship, this piece of research can be valuable in adopting a motive-based approach in implementing entrepreneurial initiatives.

Originality/value

This paper provides unique insights into developing a policy framework for promoting new ventures based on the perceived motives of the entrepreneurs.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 2 September 2014

Riikka Aro and Terhi-Anna Wilska

The purpose of this paper is to focus on the material conditions of peoples’ daily lives by investigating changes in the self-perceived necessities of ten technology- and…

1720

Abstract

Purpose

The purpose of this paper is to focus on the material conditions of peoples’ daily lives by investigating changes in the self-perceived necessities of ten technology- and leisure-related consumer goods and services between 1999 and 2009. The authors also look at the socio-demographic predictors of the perceptions and the development of the ownership of the goods under investigation.

Design/methodology/approach

The data are derived from surveys “Finland – Consumption and way of life” 1999 (N=2,417), 2004 (N=3,574), and 2009 (N=1,202). The statistical analysis methods include ANOVA and descriptive statistics. Also official statistics are used.

Findings

Many technological goods, in particular, have become necessities for most people, and the ownership rates have increased notably. Age, type of household, place of residence and gender affected the necessity of most items. Income affected the necessity of expensive goods and services.

Practical implications

The ways goods become social decencies does not always follow economic rationalities or are explained by conventional socio-economic determinants. The meaning of life course stage and related daily practices are probably more important than is usually recognized in social studies. Particularly many ICT goods become socially perceived necessities soon after their emergence, which changes the perceptions of adequate living standards, affecting thus the definition of “basic needs” and related social policy.

Originality/value

The perceptions of necessities and other measures of living standards have been mainly looked at from the viewpoint of poverty and income. This study explains the perceived necessity of goods and services by several socio-demographic variables.

Details

International Journal of Sociology and Social Policy, vol. 34 no. 9/10
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 8 July 2014

Christopher Deeming

Our attitudes, values and tastes are shaped by our position in social space. At least, that was the argument Pierre Bourdieu set out in his seminal work, La Distinction. The…

2768

Abstract

Purpose

Our attitudes, values and tastes are shaped by our position in social space. At least, that was the argument Pierre Bourdieu set out in his seminal work, La Distinction. The purpose of this paper is to consider Bourdieu's theory of cultural reproduction and his argument that working-class families exhibit cultural attitudes and tastes for social necessity.

Design/methodology/approach

Attitudinal data relating to social necessity are taken from a national social survey of the British population. The results provide a rich source of data for exploring classed attitudes towards necessity in contemporary Britain.

Findings

Bourdieu's original claims for working-class “choice of the necessary” and working-class “taste for necessity” are based on his observations grounded in social survey evidence drawn from 1960s French society. Analysis of contemporary British social survey and attitudinal data also reveals sharp contours and differences in attitudes and tastes according to class fractions. These are evident in classed tastes and preferences for food, clothes, the home and social life.

Social implications

Within the Bourdieusian theoretical framework, we understand that the tastes of necessity are preferences that arise as adaptations to deprivation of necessary goods and services. La Distinction and Bourdieu's approach to unmasking inequalities and structures in social space continue to be relevant in contemporary Britain. More generally, study findings add to the growing evidence that casts some doubt on current arguments concerning “individualisation”, claiming that social class has ceased to be significant in modern societies.

Originality/value

This paper sheds fresh light on the empirical validity and continuing theoretical relevance of Bourdieu's work examining the role of social necessity in shaping working-class culture. Bourdieu argues that the real principle of our preferences is taste and for working-class families, this is a virtue made of necessity.

Details

International Journal of Sociology and Social Policy, vol. 34 no. 7/8
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 8 June 2012

Hanna Leipämaa‐Leskinen, Henna Jyrinki and Pirjo Laaksonen

The purpose of this paper is to identify which consumption practices young adults regard as necessary. Recently, necessity consumption has not attracted the interest of consumer…

Abstract

Purpose

The purpose of this paper is to identify which consumption practices young adults regard as necessary. Recently, necessity consumption has not attracted the interest of consumer researchers, even though it serves as an important concept for studying the fundamentals of consumption.

Design/methodology/approach

The data are based on consumption diaries in which young adults reported their consumption practices during one week and then rated the degree to which they experienced each of these practices as a necessity or luxury on a seven‐point scale. The data collection was conducted in January 2011. The sample consisted of 55 Finnish university students and the total number of practices they reported in the diaries was 3,847. The data were analyzed using descriptive statistics.

Findings

The results show that young adults experienced almost 60 per cent of their consumption practices as necessary. However, the boundaries between necessary consumption and luxury consumption appeared to be fluid. Accordingly, five groups of consumption practices were identified on the basis of their necessity/luxury ratings, and three of these groups included necessity practices of different levels.

Originality/value

The results show that young adults define necessity consumption differently in different situations. Also, the importance of social activities was evident in all three groups of necessity practices. To conclude, the authors suggest that the developed empirical model should be tested further in different contexts, especially regarding the situational factors, as it provides a fruitful starting point for studying necessity consumption.

Details

Young Consumers, vol. 13 no. 2
Type: Research Article
ISSN: 1747-3616

Keywords

Book part
Publication date: 8 October 2019

Victor Yawo Atiase and Dennis Yao Dzansi

Microfinance which refers to the issuance of microloans and the delivery of other related financial services to mostly necessity entrepreneurs has remained a major developmental…

Abstract

Microfinance which refers to the issuance of microloans and the delivery of other related financial services to mostly necessity entrepreneurs has remained a major developmental tool across the developing world. With its inception from Bangladesh’s village of Jobra in 1976, microfinance has provided financial capital to many poor households to engage in income-generating activities in order to increase their assets and reduce vulnerability. Most often than not, necessity entrepreneurs who endeavor to start their own businesses depend on microfinance as a source of financial resource into their Micro and Small Enterprises (MSEs). Using Ghana as the study country, this study investigated the impact of microfinance on the necessity entrepreneurs in the areas of poverty reduction, employment generation as well as the various difficulties associated with Microfinance delivery in the Greater Accra region of Ghana. We conducted a paper-based survey with 378 MSE owners from this region. The results indicate that microfinance has contributed to employment generation and poverty reduction in the Greater Accra region of Ghana through the provision of microloans to necessity entrepreneurs to engage in various types of income-generating activities. However, necessity entrepreneurs are faced with loan inadequacy issues coupled with under-financing difficulties. More so, they are also faced with non-flexible loan terms and cumbersome loan application procedures which do not support business expansion and employment generation. This study contributes to the debate on the social logic concept of microfinance delivery and poverty reduction. Microfinance therefore remains an indispensable tool in supporting necessity entrepreneurs in promoting self-employment.

Details

Societal Entrepreneurship and Competitiveness
Type: Book
ISBN: 978-1-83867-471-7

Book part
Publication date: 14 April 2016

Karin Loevy

This paper challenges and expands commonplace assumptions about problems of time and temporality in emergencies. In traditional emergency powers theory “emergency time” is…

Abstract

This paper challenges and expands commonplace assumptions about problems of time and temporality in emergencies. In traditional emergency powers theory “emergency time” is predominantly an “exceptional time.” The problem is that there is “no time” and the solution is limited “in time”: exceptional behavior is allowed for a special time only, until the emergency is over, or according to formal sunset clauses. But what is characteristic of many emergencies is not the problem of “no time” but the ways in which time is legally structured and framed to handle them. Using the Israeli High Court of Justice 1999 decision on the use of physical interrogation methods under conditions of necessity, this paper illustrates how legally significant emergency-time structures that lay beyond the problematic of exceptional time, gravely implicate the way that “exceptional measures” are practiced and regularized.

Details

Studies in Law, Politics, and Society
Type: Book
ISBN: 978-1-78635-076-3

Keywords

Article
Publication date: 16 May 2023

Haien Ding and Bård Kuvaas

In this paper, the authors aim to present a novel methodological tool – necessary condition analysis (NCA) to aid managerial psychology researchers in properly testing necessity

Abstract

Purpose

In this paper, the authors aim to present a novel methodological tool – necessary condition analysis (NCA) to aid managerial psychology researchers in properly testing necessity statements.

Design/methodology/approach

The authors employ NCA to analyze whether three basic psychological needs for autonomy, competence and relatedness are necessary for work engagement.

Findings

The authors illustrate the value and application of NCA by revealing that basic psychological needs for autonomy, competence and relatedness are necessary for work engagement, as proposed by self-determination theory (SDT).

Originality/value

The authors illustrate the importance of the sufficiency-necessity distinction and the relevance of a necessity logic in managerial psychology. They also discuss NCA's methodological implications for managerial psychology research, theory and practice.

Details

Journal of Managerial Psychology, vol. 38 no. 4
Type: Research Article
ISSN: 0268-3946

Keywords

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