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Article
Publication date: 30 October 2023

Martin Ramirez-Urquidy, Jose N. Martinez and Pedro Orraca

The research aims to applying Baumol’s framework to address some research gaps in the literature. This paper aims to analyze how institutional variations at the subnational level…

Abstract

Purpose

The research aims to applying Baumol’s framework to address some research gaps in the literature. This paper aims to analyze how institutional variations at the subnational level impact entrepreneurship decisions and the path toward productive or unproductive entrepreneurship in an institutionally underdeveloped country. The results offer potentially new theoretical insights and practical implications for developing or emergent countries.

Design/methodology/approach

The research applies Baumol’s framework to Mexico’s context. The research collects data compounded by individual- and state-level variables from diverse sources for the 32 Mexican states. The individual level and some controls were obtained from sources of regular frequency, but the institutional variables were derived from surveys of irregular frequency, nonsynchronic and mostly nonoverlapping, which required aligning and centered them around 2016 and 2019 to match with the individual variables. The authors apply multilevel nonlinear mixed-effects probit regression to test nine hypotheses regarding the impact of institutional variables on entrepreneurial decisions and the path toward productive or unproductive entrepreneurship.

Findings

Improved formal institutions across the Mexican states reduce the entrepreneurship probability, implying interactions with other variables and indirect effects; encourage the selection of productive entrepreneurship, e.g. formal ventures; and discourage self-employment. Consequently, those institutions do not encourage entrepreneurship selection as an occupation but entrepreneurial quality, i.e. the selection of productive-formal entrepreneurship and larger ventures. Deficient informal institutions increase the entrepreneurship and formal entrepreneurship probabilities, implying the interactions with other variables and indirect effects and supporting the corruption “greases the wheels” hypothesis, consequently encouraging productive ventures. New evidence of the positive relationship between criminality and entrepreneurship types in Mexico is reported.

Research limitations/implications

Our findings indicate important impacts of the individual-level variables on the entrepreneurship decisions and that most of those decisions are potentially necessity driven and a minority are driven by opportunity, given their relationship with the macroeconomic controls and the institutional variables. The authors report mixed results on the relationship between institutions and entrepreneurship partially consistent with the literature; some results contribute additional evidence on controversial hypotheses or imply the existence of indirect effects. Overall, the results suggest that institutions impact the individual decisions to venture and the type of venture consequently affecting the amount and quality of entrepreneurship across states.

Originality/value

The research addresses some of the literature gaps by providing empirical evidence on a middle-income country and how diverging regional institutional contexts, including formal and informal institutions, impact the individual’s entrepreneurship decisions within an institutionally underdeveloped country. The paper contributes new knowledge and insights into entrepreneurship in emerging or developing countries with implications for Baumol’s framework in this context and adds to the debated hypothesis on the relationship between some institutions, e.g. corruption and criminality and entrepreneurship.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 13 April 2015

John Mann and David Shideler

As an economic development strategy, entrepreneurship policies should target innovative activities – those which Schumpeter described as leading to new goods, production methods…

Abstract

Purpose

As an economic development strategy, entrepreneurship policies should target innovative activities – those which Schumpeter described as leading to new goods, production methods, markets, input sources, or new industries. However, popular entrepreneurship proxies, such as firm births (<500 employees) and sole proprietorships, capture multiple types of entrepreneurship which may have conflicting qualities. To address the need for more accurate measures of Schumpeterian activity, indices are constructed to specifically measure the relative amount of Schumpeterian activity among US states. The paper aims to discuss these issues.

Design/methodology/approach

Four composite indices of Schumpeterian activity are constructed using different methods to combine variables related to innovative activity into single indicator, since there is uncertainty about the weighting of dimensions: principal component analysis (PCA), factor analysis (FA), data envelopment analysis and equal weights. Robustness checks were used to compare state rankings across indices. These indices were also compared to common entrepreneurship proxies and real GDP to demonstrate and justify their measurement of Schumpeterian activity.

Findings

The results show that the Schumpeterian Activity Indices (SAIs) similarly rank states and measure phenomena different from the common proxies of entrepreneurship. Furthermore, these indices better predict GDP than the common proxies. Lastly, state rankings based upon the SAIs support previous research suggesting that innovation and agglomeration economies are interrelated.

Originality/value

The paper demonstrates a methodology for constructing a measure of innovative activity, which is necessary to develop and evaluate entrepreneurship policy for economic development.

Details

Journal of Entrepreneurship and Public Policy, vol. 4 no. 1
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 4 November 2014

Liv Anne Støren

The paper examines the proportion of higher education (HE) graduates in Norway who have undertaken different forms of entrepreneurship education and how comprehensive the

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Abstract

Purpose

The paper examines the proportion of higher education (HE) graduates in Norway who have undertaken different forms of entrepreneurship education and how comprehensive the entrepreneurship education has been. The purpose of this paper is to investigate the possible benefits and effects of entrepreneurship education in terms of learning outcome and the propensity to start their own business.

Design/methodology/approach

A representative survey among HE graduates (N=2,827) is used to present reliable estimates on the prevalence of entrepreneurship education within HE. The study provides a comparison of entrepreneurship graduates with other graduates in terms of the propensity to establish their own business or planning to do so. The study also examines the learning outcomes of entrepreneurship education as the entrepreneurship graduates are asked several questions concerning this, e.g. whether it was useful for establishing own enterprise or whether it increased their creative and innovative abilities.

Findings

The proportion of entrepreneurship graduates who are self-employed is very low and is not higher than for other graduates. The results indicate that entrepreneurship graduates to a certain extent are more interested in setting up their own company in the future, but this tendency is much lower than what is found in other European studies. Further, the reported learning outcome of the entrepreneurship education is not large. But entrepreneurship education, especially if it is of a certain type and scope, contributes to an increase in “generic” entrepreneurial skills. Most entrepreneurship students participated in rather short entrepreneurship courses, with lesser benefit.

Research limitations/implications

The positive effect of entrepreneurship education on the graduates’ future plans with respect to starting their own business may partly be subject to self-selection. Further, the quality of entrepreneurship education in terms of academic content and teaching and learning methods needs further attention.

Practical implications

The overall results indicate that it would make more sense for some students to take a more comprehensive entrepreneurship education rather than that many more students taking some entrepreneurship education. This should be of interest to academia and policy makers. Further, it is primarily participation in education through (not about) entrepreneurship that increases the outcome in terms of generic entrepreneurial or innovative skills. This can be important information for the future development of entrepreneurship education.

Originality/value

The effect of entrepreneurship education on graduates’ entrepreneurial intentions is examined by use of a representative sample and when comparing entrepreneurship graduates with other graduates within the same fields and types of study. Thus, generalized conclusions can be drawn. The learning outcomes are measured when taking into account the length and type of entrepreneurship course.

Details

Education + Training, vol. 56 no. 8/9
Type: Research Article
ISSN: 0040-0912

Keywords

Article
Publication date: 27 June 2020

Curtis F. Matherne III, Joshua S. Bendickson, Susana C. Santos and Erik C. Taylor

Individuals adopt differing perceptions of entrepreneurial types, including small businesses, scalable businesses and social businesses. This study aims to suggest that…

Abstract

Purpose

Individuals adopt differing perceptions of entrepreneurial types, including small businesses, scalable businesses and social businesses. This study aims to suggest that individuals' entrepreneurial personal theory (EPT: learning from experiences that informs how an individual conceptualizes entrepreneurship) influences entrepreneurial intent, and that sensemaking facilitates this process such that those with a clearer understanding of different entrepreneurship paths are more likely to pursue opportunities.

Design/methodology/approach

This study theorizes and empirically tests whether EPT affects an individual's intent to start a small business, a scalable business or a social enterprise and how gender moderates the relationship between EPT and entrepreneurial intent. Primary survey data were collected from undergraduate business students and working adults.

Findings

The results indicate that EPTs characterized by small business, scalable business and social entrepreneurship have a positive association with entrepreneurial intentions. However, gender interaction effects showed that for women, an EPT characterized as small business has a weaker relationship with entrepreneurial intent, whereas an EPT characterized as social entrepreneurship has a stronger relationship with entrepreneurial intent. The notions that gender directly affects personal conceptions of entrepreneurship and that women may have not been exposed to all facets of entrepreneurship are addressed.

Research limitations/implications

Other variables not included in this study could also influence the relationship between how the type of entrepreneurship may shape entrepreneurial intent and how such relationship may be influenced by gender. Implications for entrepreneurship education and curriculum development are presented.

Originality/value

Integrating the EPT and sensemaking to uncover gender differences in the development of entrepreneurial intentions is a novel theoretical discussion.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 26 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 16 August 2022

Ege Can and Frank M. Fossen

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…

Abstract

Purpose

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.

Design/methodology/approach

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).

Findings

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.

Originality/value

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.

Details

Journal of Entrepreneurship and Public Policy, vol. 11 no. 2/3
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 6 December 2017

Anna Maija Vuorio, Kaisu Puumalainen and Katharina Fellnhofer

The role of entrepreneurship has changed to include issues beyond economic growth. This has turned attention toward the drivers of entrepreneurial intentions across…

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Abstract

Purpose

The role of entrepreneurship has changed to include issues beyond economic growth. This has turned attention toward the drivers of entrepreneurial intentions across entrepreneurship types, particularly in sustainable entrepreneurship. The purpose of this paper is to examine the drivers of entrepreneurial intentions in sustainable entrepreneurship. In particular, the paper aims to extend the existing intention models to include work values and attitudes toward sustainability, thereby bringing the model into the context of sustainable entrepreneurship.

Design/methodology/approach

Using a quantitative research design, data were collected in three European countries through anonymous questionnaires. The data consist of responses from 393 university students.

Findings

The results show that attitude toward sustainability and perceived entrepreneurial desirability enhance sustainability-oriented entrepreneurial intentions. Moreover, adding sustainability into the regression equation adds explanation power, hence suggesting that the theory of planned behavior needs to be adapted when applied to sustainable entrepreneurship. Attitudes toward sustainability are positively impacted by altruism, while perceived entrepreneurial desirability is driven by intrinsic and extrinsic rewards.

Research limitations/implications

The study focuses on one particular type of entrepreneurship and one particular age group.

Originality/value

The paper contributes to the entrepreneurship literature by applying the entrepreneurial intention model to sustainable entrepreneurship. The results imply that it may be the time to consider the variance in entrepreneurial opportunities in intention models as well as the need to address the conflict between work values. The results show that sustainability-oriented entrepreneurial intentions are driven by attitudes toward sustainability and perceived entrepreneurial desirability. These two attitudes are driven by altruism and extrinsic rewards, and, especially, extrinsic reward plays an opposite role in both drivers of sustainability-oriented entrepreneurial intentions.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 24 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 3 March 2020

Amirmahmood Amini Sedeh, Joseph Beck and Mahdi Forghani Bajestani

This cross-national study of entrepreneurship seeks to investigate the perceptual and institutional determinants of entrepreneurial entry. To do so, the authors distinguish…

Abstract

Purpose

This cross-national study of entrepreneurship seeks to investigate the perceptual and institutional determinants of entrepreneurial entry. To do so, the authors distinguish between social and commercial entrepreneurial activities, taking the position that the concept of entrepreneurship is not a monolithic one.

Design/methodology/approach

The authors construct a large cross-national data set and employ hierarchical linear modeling (HLM) to run a multi-level analysis on individual-level data from Global Entrepreneurship Monitor (GEM) and country-level data from Polity IV and GLOBE, representing 47 countries.

Findings

Individuals' perceptual characteristics (i.e. perceived self-efficacy, opportunity perception, and fear of failure) and informal institutions in the form of supportive cultures impact social entrepreneurship more strongly than commercial entrepreneurship. On the other hand, the formal institution of the rule of law, specifically the protection of property rights, is more conducive to commercial entrepreneurship.

Originality/value

The results of this study contribute to theory by illuminating the complicated relationships between environmental conditions, individual-level psychological factors, and entrepreneurial decisions. Furthermore, the authors’ multi-level model contributes to a more detailed conceptualization of entrepreneurial entry by identifying institutional settings that facilitate commercial versus social entrepreneurship. The authors also clarify why commercial entrepreneurship and social entrepreneurship attract different types of individuals.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 11 December 2019

Miguel-Angel Galindo-Martín, María-Teresa Méndez-Picazo and María-Soledad Castaño-Martínez

Economic growth is one the most relevant economic objectives for policy makers. In order to determine the variables that enhance such an objective it is important to consider…

Abstract

Purpose

Economic growth is one the most relevant economic objectives for policy makers. In order to determine the variables that enhance such an objective it is important to consider different types of entrepreneurial activity. It is also necessary to consider the level of development and growth of a country to design the proper economic policy measures, given that entrepreneurship motivations and circumstances vary from country to country. Therefore, the purpose of this paper is to analyse the relationship between entrepreneurship and economic growth, including the role played by institutions and innovation considering two types of entrepreneurship (necessity and opportunity) and countries.

Design/methodology/approach

Data analysis of 31 countries with varying levels of growth and development yielded two large groups – either innovation-driven economies or efficiency-driven economies – following GEM classification based on the phases set out by the World Economic Forum. In order to test the hypotheses, a partial least squares analysis is carried out to show the existing relationships between the different variables, specifically: innovation, institutions, entrepreneurship and economic growth.

Findings

The empirical analysis used demonstrates that innovation positively affects economic growth and entrepreneurship. In addition, adequate functioning of institutions is shown to enhance economic growth and opportunity entrepreneurship. Finally, there is a positive relationship between entrepreneurship and economic growth.

Originality/value

Unlike other studies, different types of entrepreneurship (by necessity and opportunity) are essential to this analysis of the relationship between entrepreneurship and economic growth. The country sample was divided considering some country-specific structural circumstances. Neither aspect is considered in the literature and should be considered relevant for designing measures to enhance economic activity.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 26 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 September 2005

Sibylle Heilbrunn

The purpose of this paper is to investigate the impact of organizational change upon entrepreneurship in communities such as the Israeli kibbutz, which underwent during the last…

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Abstract

Purpose

The purpose of this paper is to investigate the impact of organizational change upon entrepreneurship in communities such as the Israeli kibbutz, which underwent during the last two decades a process of crisis and change. Based on a theoretical model that identifies how cultural orientations of individualism versus collectivism affect the entrepreneurial process, attempt is made to analyze whether and how the move from organizational collectivism towards organizational individualism influences the volume and type of entrepreneurship in community settings.

Design/methodology/approach

A comprehensive questionnaire has been administered to a sample of 60 kibbutzim in 1997 and in 2004. The questionnaire includes issues of organizational culture, structure and business orientation, as well as reports on the ventures initiated during the relevant years. The data received by means of the questionnaire are analyzed by quantitative statistical methods. In‐depth interviews with office holders in a small number of kibbutzim add understanding of the underlying ongoing processes of change.

Findings

The results of the study show that after processes of organizational change, resource leverage is still characterized by induced strategic behavior, but venture policy is no longer one of nurturing. Market criteria such as profitability and competition at the organizational level promote individualistic‐oriented motivation and economic behavior of entrepreneurs within the community setting.

Research limitations/implications

Using a model of corporate entrepreneurship is the inherent limitation of the design of this study. Future research should consider alternative theoretical models for the analysis of entrepreneurship in community settings, focusing on independent variables such as human and social capital of the community entrepreneur.

Originality/value

The paper provides an investigation into the influence of organizational change upon the volume of entrepreneurship in a community setting.

Details

Journal of Small Business and Enterprise Development, vol. 12 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 25 September 2023

Mehmet Bağış, Mehmet Nurullah Kurutkan and Liridon Kryeziu

This research aims to determine the contribution of publications in the context of Türkiye to the international entrepreneurship literature between 2005 and 2022. We examined 471…

Abstract

This research aims to determine the contribution of publications in the context of Türkiye to the international entrepreneurship literature between 2005 and 2022. We examined 471 articles published in international journals in the Web of Science (WoS) Core Collection database using bibliometric analysis techniques. We analyzed the data with the software Biblioshiny+Bibliometrix, SciMAT, and VOSViewer. We used performance, theme and evolution, co-authorship, and document analysis in data analysis. Performance analysis findings show that the most publications were made in 2021, the journal with the most publications was sustainability, and the author with the most publications was Bakır, C. Theme and evolution analysis revealed that the motor themes were corporate entrepreneurship, gender and entrepreneurial intentions in the first period (2005–2014), while institutional entrepreneurship stood out as the niche theme. In the second period (2015–2022), “corporate entrepreneurship” and “performance” emerged as the motor themes, while the niche themes in this period were “Syrian refugees” and “entrepreneurial intentions.” Document analysis findings show that the most studied entrepreneurship types are gender, family, corporate, social, and small business, respectively. In addition, immigrant/refugee entrepreneurship is emerging as a new topic, while indigenous entrepreneurship, informal entrepreneurship, sustainable entrepreneurship, and religion entrepreneurship are the most minor studied topics in entrepreneurship. Evidence-based decision-making inputs were obtained for those holding the resource allocation authority in Türkiye. Policymakers and funders, as well as individuals and institutions that want to design the future in terms of resources, can benefit from the findings and analysis of this chapter. Türkiye, which ranks 26th in the world regarding entrepreneurship, must develop a policy based on data.

Details

Entrepreneurship Development in the Balkans: Perspective from Diverse Contexts
Type: Book
ISBN: 978-1-83753-455-5

Keywords

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