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While it has been speculated for some time that technology market development at the bottom of the pyramid (BOP) will create millions of new entrepreneurs in developing countries, as the BOP is the largest untapped market, to date, there is hardly any macro‐level cross‐country study investigating the extent to which such market development at the BOP influences new business formation “rates” in developing countries. The purpose of this paper is to examine the role of technology market development at the BOP in the information and communications technology (ICT) sector in influencing new business formation rates in developing countries.

The study draws on cross‐country data from developing countries from World Resources Institute and the World Bank. Several steps were taken to ensure robustness.

First, a connection is established between a developing country's level BOP market for ICT and the county's “rate” of new business formation. Second, it is suggested that the level of industry specialization in a developing country enhances the relationship between BOP markets for ICT and new business formation in a developing country. Third, the empirical analysis is based upon a rigorously‐collected authoritative multi‐country data from World Bank that answers the concern voiced by researchers. Fourth, the results suggest that the established link between ICT and economic growth in developing countries may be occurring through “new business formation” acting as a mediator between the two.

Implications are drawn for policy and further research.

The study establishes a macro‐level connection between a developing country's level of BOP market for ICT and its “rate” of new business formation.

This study examines whether Internet penetration has a complementary effect on the relationship between financial access and new business formation in 57 developing economies from 2006 to 2018.

Using the generalised least squares estimator, the authors employ a framework that allows us to distinguish between the marginal impact of financial access on new business formation in developing economies with high and low levels of Internet penetration rates. Furthermore, the authors distinguish between financial institutions and financial markets.

The authors find that increased accessibility for financial institutions promotes entrepreneurial activity, while financial market access has a negative relationship with new business formation. Furthermore, the authors find that the marginal impact of financial institution access increases in magnitude as Internet penetration increases. The effect does not hold for financial markets.

The major limitation lies in the measurement of new business formation, as it focuses on the formal entrepreneurial sector and overlooks the informal economy and entrepreneurs operating as sole proprietors.

Policymakers should continue to promote the development of the information communication and technology sector and digitalisation policy while increasing financial accessibility in the financial system.

This study provides new empirical evidence on the greasing role of technology to leverage the impact of financial access on new business formation. Furthermore, the study distinguishes this effect by differentiating between financial institutions and markets.

Using an extensive data set of 137 nations spanning the period 2002–2014, this paper aims to examine the effect of banking sector openness on entrepreneurship, as measured by new business entry rate.

The paper uses a panel data estimation framework covering 137 nations during 2002–2014. This study uses fixed effects, two-stage instrumental variables, two-step systems-generalized method of moments and difference-in-difference estimation methodologies.

Greater banking sector openness significantly increases new business formations. This paper finds a one-unit increase in the share of non-residential bank loans leads to 1.25 new business start-ups in the average nation. Likewise, a unit increase in the ratio of external to domestic deposits raises new business formation by 1.31 new businesses. Furthermore, the positive impact of banking sector openness on entrepreneurial activities is strengthened in nations with deeper financial markets, ones with better business environments to start a business and those with higher economic growth and development.

These findings have key implications for policy measures on both institutional business entry reforms and banking sector openness and the interaction between the two. From a policy perspective, the results show greater banking sector openness can only maximize its benefits on entrepreneurship in the presence of an effective institutional framework and sound macroeconomic fundamentals in host nations. It is also imperative that policymakers simplify regulations for the entry of new businesses. Additionally, achieving higher economic growth rates and greater economic affluence should allow both current and potential business owners to respond better to changes in financing conditions like greater access to loans from foreign banks.

Entrepreneurship and new business formation are central to any economic and business activity in a nation. The entrance of new firms into an economy creates jobs, fosters research, diffusion of knowledge and innovation and contributes to economic growth. Liberalizing a nation’s banking industry may represent an invaluable source of capital for new entrepreneurs and foster the creation of new companies. However, there is scant literature that has empirically examined the impact of opening up a nation’s banking sector on new business formations.

As a company that has continuously achieved business innovation, Apple in the United States has successfully applied strategic knowledge creation to produce a series of products that integrate various digital devices as well as diverse contents and applications, such as the iPod, iPhone, and iPad, based on a corporate vision of a digital hub concept. At the same time, the redefining of corporate boundaries that expanded Apple’s business in a horizontal direction from the Macintosh PC business to the delivery of music, smartphones, and tablets is also an indication of the evolution of a corporate vision involving Apple’s strategic transformation. This chapter presents the strategic and creative processes that enabled practitioners, including the late Steve Jobs, to demonstrate “strategic innovation capability” by “holistic leadership” at every level of management at Apple and successfully achieve a business ecosystem strategy through “creative collaboration” across diverse boundaries within and outside the company.

This chapter goes into deeper discussion and consideration of holistic leadership through the concept of holistic leadership presented in Part 1 and analysis of a number of case studies presented in Part 2. The chapter first analyzes and considers the concept of dialectical leadership, which is an element for achieving a balance between centralized leadership and distributed leadership at the psychological boundary layer located at the boundary layer between the formal organizational layer and the informal organizational layer from the perspective of four dimensions: the time axis, spatial axis, strategic axis, and management axis. This is because there is new knowledge gained from multiple case analyses and because dialectical leadership has an impact on management elements in these four dimensions when companies execute strategic knowledge creation processes to achieve business innovation. Second, the chapter discusses the concept of leadership interaction which occurs among leaders at the individual boundaries of the three-layered structure (practice layers) of the informal organization layer located in the business community, the psychological boundary layer located in the boundary layer of the business community, and the formal organization layer located in the formal organization, and the three management layers. Third, as demonstrated in the cases of Apple, Cisco Systems, Dyson, SoftBank, and Sony, strategic collaboration with other companies including customers is extremely important for those practitioners who are promoting business ecosystem strategies across different companies. To achieve this, synchronization of leadership at the three practice layers and three management layers in holistic leadership through boundary negotiations among individual leaderships across different companies is important. These concepts are discussed in this chapter. Fourth, this chapter indicates that excellent holistic leadership is necessary for practitioners to achieve strategic knowledge creation high in quality, but this requires leadership for value creation for the formation of new business communities that originate in the formation of “Ba.” The chapter also indicates that “practical wisdom” is an important element for practitioners in such value creation, and the presence of this element is a necessary condition for generating excellent holistic leadership.

The purpose of this paper is to analyze the relationship between housing markets and new firm formation in six different industries in all 284 municipalities in Sweden.

The authors have used data from Statistics Sweden and The Swedish Agency for Economic and Regional Growth to develop a model to analyze the relationship between house prices and industry-specific new firm formation, with the interaction effect of financial infrastructure.

In the data, stable high house prices have no effect on entrepreneurship. However, a market with rising house prices has a positive effect on new firm formation, in retail, construction, business-to-business services and miscellaneous sectors, but produced no effect in either mining, agriculture and fishing or in manufacturing. The interaction between rising house prices and financial infrastructure does not change the positive effect on retail, business-to-business services and miscellaneous sectors, but within the construction industry, the positive effect on new firm formation disappears. In manufacturing, the authors observe the opposite – a positive effect, instead of no effect previously.

The contribution of this study is to provide evidence of how house prices are associated with entrepreneurship in different industries, as well as analyzing how the interaction between house prices and financial infrastructure is associated with entrepreneurship. By separating observations in time, endogeneity is controlled and a causal relationship where higher house prices is postulated, which leads to an increase in entrepreneurial activity in different industries. By using a spatial Durbin model, the authors control for spatial dependency.

Despite an increasing trend in the number of females who start businesses in Western countries, the proportion of female compared to male entrepreneurs is still relatively low. Moreover, past research has found that females tend to start businesses with less potential for profitability and growth than men. Investigates gender differences among Norwegian entrepreneurs in the process of starting a new business. Tests the following three hypotheses: H1 ‐ during the business gestation process female entrepreneurs stress personal expectancies while male entrepreneurs stress economic expectancies; H2 ‐ during the business gestation process women perceive stronger social support than men do, and women put more emphasis on such support than men do; H3 ‐ female entrepreneurs perceive having less control and lower entrepreneurial abilities than their male counterparts. In support of H1 and H2, females were found to emphasize independence as a reason for start‐up, and to perceive a high degree of social support during the business gestation process. However, contrary to H3, females were found to perceive themselves as possessing higher entrepreneurial abilities than men.

The success or failure of a new business is often dependent on overcoming a series of potential barriers, eg securing sufficient financial backing, adequate and appropriate guidance and training etc. Yet, in light of the substantial growth rate of micro and small businesses, there has been little research into the experiences of potential and new business owners during the start‐up of such enterprises. To date there has been no systematic study of this group in the UK, and many questions remain unanswered. This study of micro and small business during the initialisation and formation of new venture creation (eg pre‐start‐up, 0‐6 months and 6‐12 months∥ sought to answer some of those questions. It identifies the needs of new business owners, the barriers they encounter, and the strategies they use to overcome those obstacles. The findings indicate that financial difficulties and the attitudes of banks towards new business owners are the main barriers to successful enterprise creation, with mentors and more specific advice cited as the assistance regarded as affording the greatest benefit to potential and new business owners. In addition, small and micro business owners are going out of business, or are unable to fulfil their potential, because they are denied access to those factors that promote success.

The purpose of this paper is to give a nuanced picture of how the local bank sector influences new firm formation and how this differs along the urban-rural hierarchy. Thus, the present paper increases the knowledge concerning the importance of the local bank sector in influencing new firm formation. In this respect, it also sheds light on how banks influence regional growth through their impact on start-ups.

The empirical design is based on a cross-sectional approach from 2010, where Swedish municipalities are employed as the unit of observation. To overcome a possible endogeneity problem, an instrumental variable approach is applied. A two-stage least squares approach is employed in which instruments for the local bank sector in 2010 are utilised.

The findings present positive relationships among the average size of the bank branches, independent banks per capita, bank branches per capita, bank competition, and the number of local start-ups in Sweden. Hence, access to financial funds is important for new firm formation. When the sample is divided across the urban-rural hierarchy, differences arise concerning the importance of the local bank sector. Independent banks per capita and bank branches per capita tend to have a larger impact on firm formation in rural municipalities.

This paper is novel in its detailed approach to describing the local bank sector. This topic is important for local and national policy makers, demonstrating the importance of the local bank sector for a growing and healthy regional economy. This study is also the first study on this topic in Sweden.

The purpose of this paper is to explore the inter-organisational dynamics, in terms of the triggers to spin-off formation and the genealogical inheritance of spin-offs, between a parent characterised by an adverse event and the spin-offs that emerge. The study focusses on the nature of the triggering event, exploring the heterogeneous nature of the processes by which some spin-offs are formed to exploit new opportunities created unexpectedly by an adverse event, and on the genealogical inheritance that forms the pre-entry experience of the founder.

A case study based on interview data with founders of spin-offs, supplemented with interviews with managers and industry experts, and with secondary data sources. The case study is of the spin-offs from a successful firm, Élan Corporation, reported to be the world’s 20th largest drug firm in 2002, that experienced an adverse event in 2002. The Élan case offers the opportunity to focus exclusively on what Buenstorf (2009) refers to as necessity spin-offs. Prior to collecting data it was necessary to identify the population of spin-offs from Élan.

This study extends existing research by identifying “opportunistic spin-offs”: spin-offs that occur in the wake of an adverse event where the entrepreneur exploits an unexpected opportunity to engage in entrepreneurship but does not feel compelled to establish the spin-off. These spin-offs are characterised by “unexpected opportunities”, “opportunistic acquisition of assets” and, perhaps reflecting the seniority and experience of those involved, “alternative employment opportunities”.

Understanding the process of spin-off formation is important because it provides insight into how and why individuals initiate new ventures. Spin-offs are an important source of new firms and an important mechanism in the process of industry evolution. The study contributes to the literature on spin-offs by providing evidence of the heterogeneous nature of spin-offs that occur in the aftermath of an adverse event, leading to the classification of some spin-offs as “opportunistic spin-offs”. The study contributes to the entrepreneurship literature by demonstrating that an important trigger for venture creation is unexpected changes in an individual’s employment circumstances.