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1 – 10 of over 41000Kingsley C. Njoku and Thomas M. Cooney
Given that international research is now consistently showing higher rates of entrepreneurial activity from immigrants above native people, research regarding our understanding of…
Abstract
Given that international research is now consistently showing higher rates of entrepreneurial activity from immigrants above native people, research regarding our understanding of how immigrant entrepreneurs view business opportunity formation remains underdeveloped. Based upon a review of the literature, this chapter examines how ethnicity relates to business opportunity formation through constant interactions. It also introduces the Visual Mixed Embeddedness Framework as an empirical lens for understanding the differences in the business opportunity formation process models between immigrant and native entrepreneurs. By explaining how factors and traits from both home and host countries impact upon the immigrant entrepreneurial business activity process, the framework clearly identifies how the concept of ethnicity influences immigrant entrepreneurial opportunity formation activities in different ways. The framework contributes to existing knowledge by offering a novel method for examining the influence on business opportunity formation of ethnicity, the role of home and host countries and variations between immigrant and native entrepreneurs.
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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.
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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.
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Adam Smith and Stephen Lanivich
The authors address the role that income plays in allowing individuals to resist dominant institutional norms and engage in entrepreneurship.
Abstract
Purpose
The authors address the role that income plays in allowing individuals to resist dominant institutional norms and engage in entrepreneurship.
Design/methodology/approach
This is a conceptual article that develops propositions about the relationship of institutional logics and income level with opportunity entrepreneurship.
Findings
The authors suggest that high-income individuals are less impacted than low-income individuals by institutional logics that do not support opportunity entrepreneurship. More specifically, the positive effects of a national business system that reflects and replicates market logics within a society have a greater impact on the proclivity to pursue opportunity entrepreneurship of low-income individuals than those with high incomes.
Social implications
Policymakers addressing poverty need to understand that examining the overall societal impact of institutions is not enough. Weak institutions have a disproportionately negative impact on low-income individuals. In addition to critical resources, the accessibility of market logics is key.
Originality/value
This study is the first in the entrepreneurship domain to theorize how and why institutions matter more for low-income individuals. This occurs via two mechanisms: (1) market logic accessibility and (2) the degree to which institutionalized market logics decrease opportunity cost. In so doing, this study contributes to the literature on embedded agency within the institutional logic perspective.
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Elena Bárcena-Martín, Samuel Medina-Claros and Salvador Pérez-Moreno
Institutional environment plays a crucial role in determining the nature of entrepreneurship that prevails in an economy. In this paper, the authors address how business, labour…
Abstract
Purpose
Institutional environment plays a crucial role in determining the nature of entrepreneurship that prevails in an economy. In this paper, the authors address how business, labour and credit regulations contribute differently to both the overall prevalence of opportunity-driven entrepreneurship (ODE) and its gender gap in high-income and emerging economies.
Design/methodology/approach
On the basis of an unbalanced panel of 41 countries over the period 2005–2016, the authors estimate system generalised method of moment models. The authors also perform an ordinary least square analysis to address gender differences in ODE.
Findings
The authors find that higher credit market liberalisation is especially associated with more entrepreneurship by opportunity. Nevertheless, while credit market regulation stands out as a key element to promote opportunity-based entrepreneurship in both high-income and emerging countries, in the emerging world business regulation is also largely related to the prevalence of opportunity entrepreneurship. In terms of gender gap, business and labour market freedom seem to exert an equalising effect on the divide in entrepreneurship by opportunity, specifically in emerging economies.
Originality/value
Findings allow the identification of regulatory policy reform priorities to enhance the prevalence of ODE depending on the level of a country's development. They also identify which specific areas of economic regulation would speed up closing the gender gap in opportunity entrepreneurship.
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Antonia Mercedes García-Cabrera, Ana Maria Lucía-Casademunt and Laura Padilla-Angulo
This paper examines how the institutional distance between immigrants' country of residence and country of origin, as well as the regulative and normative aspects of institutions…
Abstract
Purpose
This paper examines how the institutional distance between immigrants' country of residence and country of origin, as well as the regulative and normative aspects of institutions in immigrants' country of residence, social context variables and individual psycho-behavioural factors, condition immigrants' entrepreneurial motivation (i.e. mainly by necessity, by a combination of necessity and opportunity, or mainly by opportunity), which is in contrast to the previous literature on immigrant entrepreneurship that mainly focuses on micro-level factors.
Design/methodology/approach
By using hierarchical linear regression models to test our hypotheses, the authors analyse 468 first-generation immigrant entrepreneurs settled in 31 European countries using data from the European Working Conditions Survey (6th EWCS; Eurofound, 2015 database) combined with other datasets to derive the macro-level variables (i.e. the Doing Business Project; Hofstede et al., 2010).
Findings
The authors find that distance in the normative aspects of institutions harms entrepreneurial opportunity motivation. At the same time, however, opportunity motivation is likely to benefit from both the normative aspects of institutions that reduce locals' opportunity motivation and the distance in the regulative aspects of institutions.
Originality/value
This article analyses immigrant entrepreneurship in Europe, which has been under-examined in the extant literature, and takes into account the micro-, meso- and macro-level factors affecting the entrepreneurial motivation of immigrants in Europe. This analysis responds to the need already highlighted by previous research to include not only micro-level factors but also meso- and macro-level factors in the analysis of immigrant entrepreneurship (Aliaga-Isla and Rialp, 2013).
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Chris Styles and Richard G. Seymour
Entrepreneurship is a growing phenomenon in world markets. In response, the past two decades have seen increasing attention given to research and theory development in the area of…
Abstract
Purpose
Entrepreneurship is a growing phenomenon in world markets. In response, the past two decades have seen increasing attention given to research and theory development in the area of international entrepreneurship. However, contributions from marketing scholars have been minimal. The purpose of this paper is to define the emerging research field of international entrepreneurship and to explore opportunities for contribution to that field from marketing scholars.
Design/methodology/approach
An overview of the field of entrepreneurship highlights the central notions of opportunity, human action, learning, and creativity and innovation. To this is added value exchange, a core focus of marketing theory. These concepts are then used to define international entrepreneurship and highlight opportunities for marketing researchers.
Findings
There is considerable scope for marketing academics to contribute to the nascent field of international entrepreneurship which would, in turn, advance marketing theory.
Originality/value
The paper encourages scholars in marketing to join with colleagues from other disciplines and countries to add to these international resources.
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The purpose of this paper is to explore the concept of opportunity and its role in social entrepreneurship processes.
Abstract
Purpose
The purpose of this paper is to explore the concept of opportunity and its role in social entrepreneurship processes.
Design/methodology/approach
The paper presents a single‐case study of a sustainable community in Denmark. The data include interviews, documents and television programmes.
Findings
The case study finds that the opportunity takes a number of different forms in the process. These different forms are the result of a continuous mobilisation of actors. On the basis of these findings a model of social entrepreneurship processes is proposed, where the process is driven by mobilisation and transformation.
Research limitations/implications
The findings of the case provide support for a creation view of opportunities and the view that opportunity discovery does not necessarily precede resource mobilisation. The proposed model contributes to the development of the creation view of opportunities as an alternative to the discovery view and to understanding of the role of opportunities in the social entrepreneurship process.
Practical implications
The findings suggest that the social entrepreneur is one who actively creates external circumstances rather than responds to opportunities already present therein. This implies a focus on different skills and ways of thinking.
Originality/value
The paper presents a model of social entrepreneurship processes grounded in a deep understanding of an empirical setting. The findings and model question the value of the discovery view of opportunities in the field of social entrepreneurship, while contributing to the development of the creation view of opportunities.
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Baoshan Ge, Yaqing Sun, Yong Chen and Yang Gao
Guided by the proposed opportunity and resource integrative entrepreneurial growth model, the purpose of this paper is to explore how different opportunity type firms grow…
Abstract
Purpose
Guided by the proposed opportunity and resource integrative entrepreneurial growth model, the purpose of this paper is to explore how different opportunity type firms grow integrally and what the laws for different opportunity integration growth modes are.
Design/methodology/approach
A multiple case study on six firms in information and communication technologies industry in China is conducted.
Findings
Three types of entrepreneurial opportunities exist. These are identification type opportunity, discovery type opportunity, and creation type opportunity. Entrepreneurship among the three types of entrepreneurial opportunities operates under different laws. For each type of entrepreneurial opportunity, firms need to balance the two growth modes, namely, the opportunity identification and assessment/resource allocation mode and the opportunity utilization and resource identification/acquisition mode, in order to achieve a leveraging effect.
Research limitations/implications
Vertical comparison is missing.
Practical implications
Firms need to balance the two growth modes, namely, opportunity identification and assessment and resource allocation mode and opportunity utilization and resource identification and acquisition mode, to achieve leverage effect.
Originality/value
This paper integrates system theory with entrepreneurship research and proposes the opportunity and resource integrative entrepreneurial growth model. This model is helpful, both in aiding firms to follow the laws for entrepreneurial opportunities and to identify entrepreneurial opportunities. The business model plays a vital role in entrepreneurship. Firms taking advantage of the Internet of Things are more likely to gain a competitive advantage and to achieve success in their entrepreneurial activities.
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Parvathy Viswanath, Sadananda Reddy Annapally and Aneesh Kumar
This study aims to develop and validate a multidimensional scale to measure the motivating factors that lead to opportunity recognition in social entrepreneurship among higher…
Abstract
Purpose
This study aims to develop and validate a multidimensional scale to measure the motivating factors that lead to opportunity recognition in social entrepreneurship among higher education institute (HEI) students.
Design/methodology/approach
The scale was developed through two phases; in phase 1, semi-structured interviews with social entrepreneurs and aspiring students were conducted to explore themes for item generation. Phase 2 included developing and validating the scale using exploratory (EFA) and confirmatory factor analysis (CFA). The sample included HEI students (n = 300 for EFA, n = 300 for CFA) with either academic background or volunteering experiences in social entrepreneurship.
Findings
A 24-item scale is developed in the study, with six factors measuring the motivating factors influencing opportunity recognition in social entrepreneurship: life experiences, social awareness, social inclination, community development, institutional voids and natural option for a meaningful career.
Research limitations/implications
The scale facilitates the development of theories and models in social entrepreneurship. The scale also enables policymakers and social entrepreneurship educators to understand the motivating factors that lead to opportunity recognition among students. It would help them to provide target-specific support to students.
Originality/value
To the best of the authors’ knowledge, this study is the first attempt to develop a scale that measures opportunity recognition in social entrepreneurship based on specific motivating factors. The study used the model by Yitshaki and Kropp (2016) as the conceptual framework. This study is the first attempt to triangulate the model’s findings using a quantitative methodology and through the development of a measurement scale. Besides, the scale adds value to social entrepreneurship research, which lacks empirical research on HEI students.
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