Search results

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.

Recently, distinctions between “necessity‐driven” entrepreneurs who have limited options for work and “opportunity‐driven” entrepreneurs pulled into the exploitation of a perceived business opportunity have been transcended by commentators displaying the co‐presence of opportunity and necessity in entrepreneurs' motives and how their relative importance shifts over time. This paper aims to evaluate, critically, whether this re‐theorisation is also valid when considering the motives of informal entrepreneurs.

A household survey of entrepreneurship is reported conducted in Moscow during late 2005 and early 2006. In the 313 households surveyed, 81 entrepreneurs were identified who had started‐up a business venture in the past 42 months, all of whom reported that they were operating wholly or partially in the informal economy.

For some 80 per cent of informal entrepreneurs, both necessity‐ and opportunity‐drivers were co‐present in their decision to start up an enterprise. There was also a clearly identifiable shift in their motives away from necessity‐ and towards opportunity‐drivers as their ventures became more established.

Akin to recent literature on mainstream (legitimate) entrepreneurs' motives, the survey thus displays the need for a less bifurcated understanding of informal entrepreneurs' motives that recognises the co‐existence of necessity‐ and opportunity‐drivers and the temporal changes in their relative importance.

The study reveals the need to transcend the currently dominant simplistic portrayals of informal entrepreneurs as either universally necessity‐driven or universally opportunity‐driven.

Why is self-employment an attractive option for certain seniors and what drives seniors into business start-ups? In this study, the motivations and preferences of senior entrepreneurs in Australia, to become self-employed, by means of business start-ups, are explored. The purpose of this paper is to provide empirical basis for policy implications.

A mixed methods study is conducted. Members of the National Senior’s Association in Australia were interviewed and surveyed. The semi-structured interviews identified the key factors influencing senior entrepreneurs in relation to self-employment and entrepreneurial choices at a later career stage. The survey collected information on intentionality, motivation, skills, opportunities, success, satisfaction, participation, barriers, benefits, education and training, and perceptions of policy support for senior entrepreneurs.

Respondents gave an account of the prevalence of pull factors motivating their choice of an entrepreneurial career. Multivariate statistical analysis of survey responses showed that senior entrepreneurs are more driven by opportunity than necessity and are primarily internally motivated.

Results of this study suggest a weak link between motivation by others and the act of start-up, but this may also imply that those seniors who are more likely to become entrepreneurs are more likely to ignore the impulses from their social context. This requires further investigation to ensure a robust identification of drivers and an elimination of contextual effects. Further research is suggested to compose a relevant model structure in different contexts and a representative sample to confirm the model outcomes.

This is the first mixed methods study of the antecedents of senior entrepreneurs’ start-up intentions in Australia. The study also uses entrepreneurial activity as opposed to intention as its dependent variable, which allows for a more accurate evaluation of antecedents to the senior entrepreneurship phenomenon.

Women entrepreneurs are often categorized and assessed for various outcomes based on their start-up motivations. It is generally assumed that entrepreneurs with opportunity motivation have better performance when compared to necessity entrepreneurs. This study aims to test these suppositions through the lens of the entrepreneur’s motivation to learn (MTL) and level of female entrepreneurial competencies (FECs), namely, business and management, entrepreneurial, human relations (HR) and personal.

Data collected from 344 respondents through a survey questionnaire was analyzed using the structural equation modelling – partial least squares method using SmartPLS 4.

The findings highlight the need of recognizing the differentials between necessity and opportunity entrepreneurs as they were found to influence performance and learning outcomes. Opportunity entrepreneurship was found to significantly impact both MTL and the FECs. The authors also observed that business and management skills along with HR competencies played a greater role in the firm performance.

The findings demonstrate a case for specialized, tailor-made policy approaches rather than the “one size fits all” approach as evident in many government programs. As necessity entrepreneurs form a vital part of the Indian entrepreneurial ecosystem, apart from mentoring, need-based competency development programs may be looked at. Opportunity entrepreneurs may need support and encouragement through advanced skilling and uncomplicated funding options.

To the best of the authors’ knowledge, empirical studies related to women-owned micro, small and medium enterprises in India establishing the relationship between start-up motivation and business performance are scarce. Even in the global context, this is one of the initial studies to examine the relationship through the lens of MTL and competencies.

The purpose of this paper is to study the case of Chile and identify the internal factors that lead to senior (+55 years old) entrepreneurship, either by necessity or opportunity, compared to that in other age groups.

The analysis is based on the adult population survey of the global entrepreneurship monitor between 2012 and 2016 and uses a logistic regression model that applies different variables to total early-stage entrepreneurial activity by necessity and opportunity.

Education, human and social capital development, gender and prior experience as an entrepreneur are internal factors that affect entrepreneurial activity with different weights and directions for people over 55 years old in Chile, either by necessity or opportunity. Further, certain factors exhibited by other age groups in the country explain entrepreneurship.

This study does not consider external perspectives on how context influences entrepreneurial intentions.

This paper represents a first step to understanding the factors that governments should consider when designing policies to support entrepreneurial activity in the senior demographic sector, considering differences in motivation by necessity or opportunity. In addition, this study contributes to the development of knowledge regarding senior entrepreneurship in Chile and to the identification of best practices that could be used in other regions.

This report is the first to focus on the motivations of senior entrepreneurs in Chile by quantifying the effects of different factors.

This study aims to understand the relationship between entrepreneurial competencies (self-efficacy and social capital) and sustainable entrepreneurship and its incidence through entrepreneurial motivations (opportunity and necessity entrepreneurship).

The authors adopt a quantitative approach and use ordinary least squares regressions and bootstrapping analysis to test the hypotheses about the relationship between entrepreneurial competencies and sustainable entrepreneurship mediated by entrepreneurial motivations using a cross-sectional sample of 2,356 nascent entrepreneurs from the Global Entrepreneurship Monitor 2021–2022 report.

Evidence suggests that sustainable entrepreneurship is positively influenced by both opportunity- and necessity-driven entrepreneurship. Additionally, the results show that both entrepreneurial motivations positively mediate the relationship between self-efficacy and sustainable entrepreneurship.

The approach departs from the traditional unidimensional perspective on entrepreneurial motivations, recognizing that an entrepreneur can simultaneously embody varying degrees of both motivations. By integrating the study of entrepreneurial competencies and motivations into sustainable entrepreneurship, we can gain a holistic understanding of the dynamics at play.

El objetivo de este estudio es comprender la relación entre las competencias emprendedoras (autoeficacia y capital social) con el emprendimiento sostenible y su incidencia a través de las motivaciones emprendedoras (emprendimiento por oportunidad y por necesidad).

Adoptamos un enfoque cuantitativo y utilizamos regresiones de mínimos cuadrados ordinarios (MCO) y análisis de bootstrapping para probar nuestras hipótesis sobre la relación entre las competencias emprendedoras y el emprendimiento sostenible mediado por las motivaciones emprendedoras utilizando una muestra transversal de 2.356 emprendedores nacientes del informe Global Entrepreneurship Monitor (GEM) 2021–2022.

La evidencia sugiere que tanto el emprendimiento de oportunidad como el de necesidad tienen un impacto positivo en el emprendimiento sostenible. Además, encontramos que ambas motivaciones emprendedoras median positivamente la relación entre la autoeficacia y el emprendimiento sostenible.

Nuestro enfoque se aleja de la tradicional perspectiva unidimensional de las motivaciones emprendedoras, reconociendo que un emprendedor puede encarnar simultáneamente diversos grados de ambas motivaciones. Al integrar el estudio de las competencias y motivaciones emprendedoras en el emprendimiento sostenible, obtenemos una comprensión holística de la dinámica en juego.

Este artigo tem como objetivo compreender a relação entre as competências empreendedoras (autoeficácia e capital social), e o empreendedorismo sustentável e sua incidência por meio de motivações empreendedoras (empreendedorismo de oportunidade e necessidade).

Adotamos uma abordagem quantitativa e usamos regressões de mínimos quadrados ordinários (OLS) e análise de bootstrapping para testar nossas hipóteses sobre a relação entre competências empresariais e empreendedorismo sustentável mediada por motivações empresariais usando uma amostra transversal de 2.356 empreendedores nascentes do relatório Global Entrepreneurship Monitor (GEM) 2021–2022.

As evidências sugerem que o empreendedorismo sustentável é influenciado positivamente pelo empreendedorismo orientado pela oportunidade e pela necessidade. Além disso, os resultados mostram que ambas as motivações empresariais mediam positivamente a relação entre a autoeficácia e o empreendedorismo sustentável.

Nossa abordagem se afasta da perspectiva unidimensional tradicional sobre as motivações empresariais, reconhecendo que um empreendedor pode incorporar simultaneamente vários graus de ambos os ases motivações. Ao integrar o estudo das competências e motivações empresariais ao empreendedorismo sustentável, obtemos uma compreensão holística da dinâmica em jogo.

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

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.

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.

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.

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

This study aims to understand the challenges facing Syrian refugee entrepreneurs in Jordan and offers professional support to refugee entrepreneurs, with a view to improve their economic and social status, aid cultural integration and ultimately to help turn their business idea into reality.

A total of 62 semi-structured interviews were conducted with Syrian refugees in Jordan.

The study reveals that refugee entrepreneurs are both entrepreneurs of necessity and opportunity. Refugee entrepreneurship improves social welfare and drives economic growth. Nevertheless, refugee entrepreneurship faces many challenges and difficulties, mainly in terms of financing difficulties, cultural differences and a lack of business management skills.

Future studies could investigate if the research results can be generalised to global refugee entrepreneurship by gathering data from other countries and comparing the subsequent results with this research.

The research shows that programmes and instruments should be created to support refugee entrepreneurship. It is also suggested that both social and economic support is needed to prompt refugee entrepreneurs. International cooperation and international organisations are important to support refugees and support countries that receive them, with a view to reduce the economic burden on these countries, which will in turn improve the quality of life for refugees.

The increasing number of refugees is becoming a very serious social issue. The international community should contribute to helping those refugees through economic, social and cultural integrations.

This paper focuses refugee entrepreneurship to understand refugees’ entrepreneurial behaviour and any challenges facing Syrian entrepreneurship in Jordan.

It is now widely recognised that in most economies there is a large number of hidden entrepreneurs operating wholly or partially “off‐the‐books”. Until now, however, there has been a degree of silence on the gendering of such entrepreneurship, including exploring whether men and women have different motives for participating in hidden/informal entrepreneurship. The purpose of this paper, therefore, is to begin to fill this gap in the knowledge.

The findings of face‐to‐face structured interviews with 130 informal entrepreneurs in England are reported; 70 are early‐stage entrepreneurs and 60 are established business owner‐managers, living in a range of affluent and deprived urban and rural English localities.

A key finding of the paper is that three‐quarters of entrepreneurs operate in the informal economy, with women informal entrepreneurs chiefly necessity‐driven and men being largely voluntary participants in informal entrepreneurship. Further unpacking their motives, however, reveals not only that both necessity and choice are co‐present motives for most informal entrepreneurs, but also that their motives change over time, with many women who originally entered informal entrepreneurship out of necessity becoming more opportunity‐driven.

Although this survey is conducted in a diverse range of English localities to avoid the pitfall of generalizing from a specific locality‐type, it does not provide nationally representative data on informal entrepreneurship.

This is one of the first studies attempting to investigate why men and women engage in informal entrepreneurship.