The impact of state legitimacy on entrepreneurial activity

The purpose of this research is to analyze the influence of the state legitimacy on of the different countries’ entrepreneurial activity’s development, the opportunities’ perception and the entrepreneurship’s motivations. This paper is set into the research field which analyze how the institutional environment influence entrepreneurship in different countries. Research framework has been built based on the Institutional Theory. To develop the model we use a set of data extracted from the European Social Survey and the Global Entrepreneurship Monitor about 28 European countries and we analyze them through Partial Least Squares-Structural Equation Modeling. Results show that state’s legitimacy influences the level of entrepreneurship in the different countries and the perception of the entrepreneurial opportunities and chances. Besides, the research shows that, in the scenario of the most legitimated countries, entrepreneurial activities is related to the need of self-employment. Based on the Institutional Theory, this research provide relevant contributions in the research field about entrepreneurship and countries’ institutions. From a practical point of view, the research shows ideas on how policymakers can improve entrepreneurial activity managing state legitimacy. Furthermore, the results provide new contributions in the research on the influence of the institutional context on the states entrepreneurial activity, providing an analysis and a comparison of the differences between countries, based on institutional theory.

     

Entrepreneurship in the public sector: a framework of analysis in European local governments

In this paper we explore the potential role of entrepreneurship in public sector organizations. At first, we present a review of the entrepreneurship theme in the political science and public management research streams, comparing these ideas with the mainstream business literature on entrepreneurship. Thereafter, we illustrate empirically how Stevenson's classical framework of entrepreneurship can be applied in a European local government context to explain the recent initiatives to compete for and utilize European Union structural funds. The empirical basis of the study is comprised of ten in-depth case studies of local government organizations, five in the UK and five in Italy. Finally, we propose five distinct types of entrepreneurial agents in the public sector: professional politician; spin-off creator; business entrepreneur in politics; career-driven public officer; and politically ambitious public officer.     

Corporate Entrepreneurship and Real Options in Transitional Policy Environments: Theory Development

ABSTRACT We develop a theoretical framework for describing, modelling, and predicting entrepreneurial strategies by corporations in transitional public policy environments. Drawing on research in entrepreneurship, real options, and strategic management under uncertainty, we demonstrate how corporations affected by government policy can use entrepreneurial strategies to exploit discontinuities generated by uncertain and unstable public policy environments. We argue that specific strategies will be effective depending on the degree and slope/inflection profile of policy change. Four strategies are identified: preemptive, optioned, synchronized, and adaptive. We develop propositions and provide illustrations to show how each of these strategies has helped firms respond to transitional policy environments. We conclude by offering a discussion of the utility and limitations of the framework and its potential application to other managerial circumstances in which uncertainty is pervasive, and by describing opportunities for further research, including empirical testing of our model.     

Evidence-based policy as public entrepreneurship

In the 21st century, evidence-based policy has garnered significant attention in both theory and practice. Scholars have levied various criticisms of evidence-based policy making, suggesting the need for a new analytical framework. I argue that evidence-based policy can be understood as public entrepreneurship: a systemic process in which actors exercise judgment and collaborate regarding policy change. Experts, policy entrepreneurs, and policymakers have functions in this process. Evidence is viewed as a resource that may or may not further entrepreneurial plans, and the institutional environment shapes plan revision. To illustrate, I analyse ‘Housing First’ homelessness policy in the United States.     

Public policy recommendations for promoting female entrepreneurship in Europe

From 2021 onwards, female entrepreneurship is expected to grow very substantially as a result of the Covid-19 pandemic. The introduction of teleworking and staggered hours in many countries at national or workplace level will make possible the conciliation between labour and family life. The purpose of this paper is to identify the most influential explanatory factors in the behaviour of female entrepreneurship in Europe so as to subsequently propose efficient economic policy measures to promote it. The distinction between opportunity and necessity female entrepreneurs have been considered since both motivation and factors are different in each case. 15 econometric models using the panel data method for a sample of 20 previously selected European countries (grouped by their GDP level) during the period 2001 to 2018 have been estimated to determine which explanatory factors affect female entrepreneurship and necessity-based female entrepreneurship. The empirical analysis used demonstrates that more women enter into entrepreneurship due to necessity rather than in pursuit of opportunity for European countries both with higher levels of GDP and for countries with lower levels of GDP. In this context, the following policy measures should be implemented to promote female entrepreneurship in Europe: the optimization of government spending (training courses and mentoring, public procurement, stronger networks, support in reconciling business and family life, etc.), the government incentives for subsidizing high interest rates to support women in accessing financing, and the improvement of entrepreneurship education to increase the confidence of women in themselves in their own entrepreneurial capabilities.

     

Entrepreneurship policy and targets: the case of a low absorptive capacity region

Despite the existence of a positive relationship between new firm creation and economic growth, a certain controversy still exists regarding the need for the public promotion of entrepreneurship. The recent surge of entrepreneurship policies encompasses a wide variety of instruments and goals that are mainly designed and implemented at a regional or local level, which allows for a more efficient use of public resources. Case studies are therefore a useful approach to assessing “good practices” in entrepreneurship policies. We adopt this approach to empirically analyse whether policies are targeting specific entrepreneurial projects or not in the region of Valencia. We identify the features (in relation to the entrepreneur, the sector and the characteristics of the project itself) that may influence greater access to public funding and are principally related to standard requirements for this means of financing. These variables do not address specific entrepreneurial profiles, sectors or applicant projects, thereby revealing a substantial degree of horizontal policy design. Other features, such as almost all entrepreneurial characteristics (previous experience, age, etc.), do not seem relevant in terms of receiving public funds.     

The impact of selected factors on new business formation in the private healthcare sector

Numerous factors influence the development of the private healthcare sector. Therefore, the selection of these factors, which represent a potential opportunity for forming new entities, is a crucial from the point of view of entrepreneurship. In our research we selected strategic variables which have got direct influence on entrepreneurship in the private healthcare sector in Poland. Theoretical approach was based on literature review which have revealed the main factors and their relationships with entrepreneurship according to the previous research studies. This research study was conducted for the entire population of municipalities in Poland. Methodology was based on Intelligent Data Analysis (IDA) which can be applied for a large amounts of data in order to extract useful knowledge from it. Moreover, in research study were applied explanation techniques – decision rules –in order to indicate, to what extent the environment have influence on strategic choices conditioning the success of businesses. The results have revealed that it is possible to determine a set of the most important factors influencing entrepreneurship in the private healthcare sector in Poland. On the other hand, were indicated these variables which do not participate in process of influencing on entrepreneurship in private healthcare sector in Poland.

     

Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment

The discussion on which institutions determine entrepreneurial activity – and the role of institutions in the aggregated output for developing countries – is as yet unresolved. The extant literature about entrepreneurship recognizes new ventures as potential mechanisms for long-term development. Yet, there is a consensus on the lack of evidence, particularly for these countries. Drawing on institutional economics, this article explores the interrelationships among institutional environment, entrepreneurial activity, and economic growth. To this end, we use simultaneous-equation panel data models for a sample of 14 developing countries (78 observations) over the period of 2004–2012. The main findings suggest a causal chain running from institutions to opportunity entrepreneurship, which is linked to the economic growth of emerging economies. In particular, we find that institutional factors – such as the number of procedures to start a new business, private credit coverage ,, and access to communication– influence entrepreneurial activity driven by opportunity. Policy implications for developing countries could be derived in order to enhance their economic performance through entrepreneurial activity.

     

Entrepreneurship and knowledge spillovers from the public sector

A compelling body of research has found that investments in knowledge from other firms and universities spill over to enhance the performance of entrepreneurial firms. This literature has shown that firm performance is positively related to investments in new knowledge by other firms and research universities. This paper addresses a gap in the literature by positing that public sector knowledge is also conducive to enhancing performance by knowledge intensive entrepreneurial (KIE) firms. Our findings suggest that the public sector provides a fertile source of knowledge for enhancing KIE firm performance.

     

Controversies and conceptual development Examining public entrepreneurship

The role of entrepreneurship in the public services remains controversial. In this article we present an initial framework for understanding public entrepreneurship based on a typology of entrepreneurship and an initial classification of relevant public service processes and outcomes. Each aspect is illustrated by case study evidence taken from the West Midlands Ambulance Service, and is integrated into the theoretical literature on entrepreneurship. When applied to this case, the framework helps to differentiate two types of entrepreneurial action. The first type is conducted away from the core service and is governed by commercial considerations, the second is linked to the core statutory service and is governed by bureaucratic obedience. We argue a feature of public management is the requirement to operate across differing ‘orderings of life’ where contradictory rules apply. The acceptability of entrepreneurship depends on whether managers can recognize and distinguish between the rules governing these spheres.     

Regional deregulation and entrepreneurial growth in China's transition economy

Despite a less favourable national institutional environment, the private entrepreneurial sector has developed rapidly in China's transition economy. To resolve this puzzle, this study argues that regional deregulation plays a significant role in China's entrepreneurial growth because it stimulates free markets and lifts predatory and discriminatory regulatory policies affecting entrepreneurship. I use provincial-level panel data (1998–2003) for hypothesis testing. The results, based on fixed effects estimation, suggest that deregulation indeed has a significantly positive effect on entrepreneurial growth within regions. In addition, this effect is found to be stronger in earlier years, as well as among less developed, inland regions.     

The onto-politics of entrepreneurial experimentation: re-reading Hans-Jörg Rheinberger’s understanding of ‘experimental systems’

ABSTRACT

In this article, we argue that there is a need to theorize the relationship between entrepreneurship and the political beyond the currently dominant neo-liberal and emancipatory narrative by turning to an onto-political conception of entrepreneurship based on the processes of entrepreneurial experimentation. In entrepreneurship studies, the relevance and the potential of experimentation for shaping new organizational realities has only been explored marginally. Through re-reading the thinking on ‘experimental systems’ by the science historian Hans-Jörg Rheinberger and connecting it to Annemarie Mol’s notion of ‘ontological politics’, we develop a conceptual framework for entrepreneurial experimentation which we document with the illustration of an art enterprise. The framework that we propose focuses on the interwoven embodied, material and processual dynamics of entrepreneurial experimentation and reframes entrepreneurial world-making as a speculative process driven by material reconfigurations and bodily connections. As a consequence, we argue that this model is able to emphasize the intricate political dimension inscribed in processes of entrepreneurial experimentation through their onto-political force of reconfiguring systems of ‘self-others-things’. Furthermore, the model highlights that this capacity of ‘world-making’ cannot be realized without articulating the tensions and resistances that entrepreneurial endeavours often need to navigate and negotiate while reconfiguring and challenging dominant socio-material orders.     

From resource munificence to ecosystem integration: the case of government sponsorship in St. Louis

Government sponsorship of entrepreneurship has become a popular policy tool in the last 15 years. Despite this popularity, past academic studies have largely focused on firm-level survival rates and treated the effects of government sponsorship in isolation, which fails to capture the full effect of the sponsorship. That is, the objectives of the public sector include enhancing the macro-level entrepreneurial environment of the region as well as the success of individual firms. We expand research in this area through a case study in St. Louis, Missouri. We focus on the Arch Grants, a public–private coalition that provides $50,000 to 20 winners through their annual competition. Based on interviews of 46 recipient firms and 15 support organizations, we first demonstrate how government sponsorship can create a cohort of entrepreneurs who are able to learn from each other about business strategy, local mentors and other resources. Second, we uncover the process through which sponsorship can facilitate coordination among local entrepreneurship support organizations. Thus, we conclude that the evaluation of government sponsorship should go beyond the traditional firm-level performance measurement and consider the integration and enhancement of the local entrepreneurship ecosystem.     

Micro-foundations of environmental entrepreneurship resistance in SMEs

This article characterizes theoretical problems regarding the essence of environmental entrepreneurship resistance. The objective of the current research was to search for micro-foundations of environmental entrepreneurship resistance occurring in SME. We relate the concept of resistance in entrepreneurship with the idea of micro-foundations, thus creating new opportunities for analysis in two areas: conceptual view that interprets the phenomenon of resistance in relation to the organization's activities in the field of entrepreneurship, and cognitive supplementary knowledge of micro-foundations, which affect the entrepreneurial behavior of employees. Environmental entrepreneurship resistance in SMEs has been defined in our interpretation as targeted individual or collective daily activities, implemented from the perspective of various intentions, motivations and other internal and external premises, which are in opposition to commonly used pro-environmental activities constituting the CER component of small and medium business. In addition, we identified a group of 20 micro-foundations, which from the level of an individual or organization may constitute the initiation of entrepreneurial activities, focused on environmental protection in SME. The indicated group was examined on a sample of 122 employees of the SME sector in Poland. After performing qualitative and quantitative analyses, it turned out that eight elements could be considered as micro-foundations of environmental entrepreneurship resistance.

     

Towards the entrepreneurial university: the principal-agent problem

The purpose of the paper is to explore how an individualized incentive system could increase professors’ motivation to contribute to the university’s mission to become entrepreneurial in transition countries. The paper proposes a conceptual analysis that draws on the principal-agent problem to examine incentives that may stimulate institutional change. It considers the framework of a university becoming entrepreneurial and assumes that the principal is dean while the agent is a professor. It contributes to the national innovation system literature by providing new insights about the institutional change in transition countries. The contribution is threefold: it distinguishes between an ordinary and an entrepreneurial university, it explains relationship between micro and meso levels in the process of institutional change towards entrepreneurial university, it refines knowledge on individualized incentive system acting as a motivation for professors to contribute to university becoming entrepreneurial. The paper challenges studies that dismiss the micro level role of human agency in institutional change. The conceptual arguments have important managerial implications for all public and private institutions.

     

The impact of a STEM-based entrepreneurship program on the entrepreneurial intention of secondary school female students

Despite dedicated effort and research in the last two decades, the entrepreneurship field is still limited by little evidence-based knowledge of the impacts of entrepreneurship programs on the entrepreneurial intention of students in pre-university levels of study. Further, gender equity continues to be an issue in the entrepreneurial sector, particularly in STEM-focused entrepreneurship. In this context, this study was designed to explore the effects of a one-day female-focused STEM-based entrepreneurship program (for brevity, we call it the OzGirlsEntrepreneurship program) on the entrepreneurial intention of secondary school female students. The study collected data from two surveys completed by 193 secondary school female students, aged 14–16 years, who participated in the OzGirlsEntrepreneurship program. This program encouraged girls to develop and implement creative computational solutions to socially relevant problems, with an Internet of Things (IoT) component using the micro:bit device. The findings reveal that a key factor in the development of entrepreneurial attitudes in young female students is associated with soft-skills development, particularly in the areas of creative thinking, risk-taking, problem-solving, and leadership development. The importance of meaningful human connections, including positive role modelling and peer to peer learning were also important factors in fostering entrepreneurial intent. With these factors in mind, our findings highlight that the OzGirlsEntrepreneurship program substantially increased the entrepreneurial intention of secondary school female students. In addition, this study offers actionable implications and recommendations to develop and deliver entrepreneurship education programs for secondary school level students.

     

Performative entrepreneurship: identity,behaviour and place in adventure sports Enterprise

This research explores entrepreneurial identity and place in adventure sports within the emerging field of sports entrepreneurship. A growing body of literature has established the broad parameters of sports entrepreneurs mainly within the fitness sector. This study applies a performative entrepreneurship lens to explore the embedded nature of identity, behaviour and place amongst mountain bike (MTB) trainers and guides. This qualitative study is based around interviews with six trainers/guides conducted via online forums as well as participatory observations made on a group ride and of a communal response to the natural environment through trail building. Findings illustrate that unlike the fitness sector where there is a more established market and where entrepreneurs often move from employment to self-employment within the sector, the MTB adventure sports entrepreneur operates in a less formalised market resulting in less formal strategic planning. ‘Place’ is an important factor in the performative nature of enterprise in this study and it is clear that it is through lifestyle entrepreneurship that the individuals are ‘performing’ identity.

     

Demolishing the Present to Sell off the Future? The Emergence of ‘Financialized Municipal Entrepreneurialism’ in London

This article introduces a new mode of urban entrepreneurialism in London through a study of the state‐executed, speculative development and financialization of public land. In response to an intensifying housing crisis and austerity‐imposed fiscal constraints, municipalities in London are devising entrepreneurial solutions to deliver more housing. Among these ‘solutions’ can be found the early signs of the state‐executed financialization of public housing in the UK with the use of speculative council‐owned special purpose vehicles (SPVs) that replace existing public housing stock with mixed‐tenure developments, creating ambiguous public/private tenancies that function as homes and the basis for liquid financial assets. Drawing together parallel literatures on the financialization of urban governance and housing, and combining these with original empirical research, we situate these developments in contrast to earlier modes of governance, identifying a distinct mode of entrepreneurial governance in London: financialized municipal entrepreneurialism. The local state is no longer merely the enabler—limited to providing strategic oversight of the private sector—but financializes its practice in a reimagined commercialized interventionism, as property speculator. This article concludes that while the architects of this new mode of entrepreneurialism extol the increased capacity and control it provides, any such gains must be set against longer‐term financial, democratic and political risks.     

The value of entrepreneurship by gender on regional behaviour

This paper examines how the value of entrepreneurship by gender is related to regional behaviour. Researchers have traditionally defined entrepreneurial organization as separate to gender and to economic growth. Using the Global Entrepreneurship Monitor (GEM) we complete a dataset of 50 countries using variables such as total early-stage entrepreneurial activity (TEA) and opportunity-driven entrepreneurial activity (OPP). The methodology used proposes an analysis of regional convergence, comparing the evolution over time of both the rate of entrepreneurial activity and the ratios of opportunity-driven and need-driven entrepreneurial activity, distinguishing by gender. On the other hand, a regression model is proposed that explains the greater presence of female entrepreneurship. The results show that entrepreneurship by gender is an important factor to define different cluster of countries according to how men and women entrepreneurs create new economic opportunities.

     

Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach

This paper attempts to fill the gap on the existing entrepreneurship literature by empirically testing the influence of two groups of individual-level factors (socio-economic, demographic and perceptual characteristics) and two groups of country-level factors (both formal and informal institutional measures and macroeconomic variables) on three stages of the entrepreneurial process. We analyze the interplay between individual and context factors in nascent, young and established entrepreneurs across 49 different countries, mixing data from different sources and applying multilevel binary logistic regression models. Our results show that entrepreneurial activities are male headed, irrespectively of the entrepreneurial stage of their activities, and that highly-educated entrepreneurs are more oriented to start up new ventures. The existence of a wider network of people involved in entrepreneurship contributes to updating information on new markets and opportunities, leading to a more accurate entrepreneurial decision. The level of development of a country constitutes an important determinant of entrepreneurship but also moderates the relationship between entrepreneurship and institutional factors. In more developed countries, individual characteristics may be still determinant factors shaping the decision to become an entrepreneur, although their magnitude may depend on the stage of the entrepreneurial process. Finally, the key to entrepreneurship for both more and less developed countries seems to be their fiscal systems: a fair tax system that actively fights tax evasion and corruption seems to be essential to reducing the economic pressure associated with the creation and survival of ventures.