Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data

Using data from the German Socio-Economic Panel Study (GSOEP), we analyze whether necessity entrepreneurs differ from opportunity entrepreneurs in terms of self-employment duration. Using univariate statistics, we find that opportunity entrepreneurs remain in self-employment longer than necessity entrepreneurs. However, after controlling for the entrepreneurs’ education in the professional area where they start their venture, this effect is no longer significant. We therefore conclude that the difference observed is not an original effect but rather is due to selection. We then go on to discuss the implications of our findings for entrepreneurship-policy making, and give suggestions to improve governmental start-up programs.

欠发达地区农村劳动力自我雇佣行为影响因素分析——以福建沙县为例

以福建沙县为例,利用实地调查数据,实证分析了欠发达地区农村劳动力自我雇佣行为的影响因素。结果表明:有无手艺或技能对欠发达地区农村劳动力自我雇佣行为的影响程度最大,社会文化因素次之,家庭人口数因素的影响最小;具体来讲,有手艺或技能对欠发达地区农村劳动力进行自我雇佣起决定性作用;地区的重商文化氛围和家族文化越浓,该地区的农村劳动力越容易选择自我雇佣;家庭人口数越多,农村劳动力的自我雇佣行为越有可能发生。     

Some Classic Views on Entrepreneurship

The topic of entrepreneurship currently experiences a revived interest as is shown by the research agenda of today's empirical researchers. There are few issues in economics which are backed up by such a rich historical knowledge base as is the case with entrepreneurship. This paper aims to give an overview of some important classic contributions relating to today's and tomorrow's empirical research subjects. The overview consists of answers to six research questions by six historical contributors to entrepreneurship research. Together, these questions give some insight into the determinants of successful entrepreneurship. The classic contributors considered are Cantillon, Say, Marshall, Schumpeter, Knight, and Kirzner. Their views are compared to each other as well as to some recent results of empirical research into the determinants of successful entrepreneurship.     

Cultural background,human capital and self-employment rates among immigrants in Norway

The level of self-employment varies significantly among immigrants from different countries of origin. The objective of this research is to examine the relationship between national culture, human capital in the form of educational attainment in the country of origin and self-employment rates among first-generation immigrants in Norway. Empirical secondary data on self-employment among immigrants from 53 countries residing in Norway in 2004 was used. Five different hypotheses were developed and tested using hierarchical regression analysis. The findings suggest that immigrants from countries with low power distance are more likely to become self-employed. However, other dimensions of cultural attributes, such as the home-country's uncertainty avoidance, masculinity/femininity and individualism/collectivism were not significantly associated with immigrants’ self-employment rate. Finally, and most notably, the average educational attainment in the country of origin was found to be significantly positively associated with self-employment among immigrants. The study concludes with practical implications and suggestions for future research.     

Self-employment and job generation in metropolitan areas, 1969–2009

Many regional development policy initiatives assume that entrepreneurial activities promote economic growth. Empirical research has presented rationale for this argument showing that small firms create proportionally more new jobs than large firms. However, little research has been performed on the issue of net job generation at the urban level, particularly when self-employment is considered as an indicator of entrepreneurial activities. This paper investigates to what extent US metropolitan areas in the 1969–2009 period characterized by relatively high rates of self-employment also have shown relatively high rates of subsequent total employment growth. The analysis corrects for the influence of sectoral composition, wage level, educational attainment, presence of research universities and size of the metropolitan area to measure the extent to which the number and quality of self-employed in a region contribute to total employment growth. It finds the relationship between self-employment rates and subsequent total employment growth to be positive on average during the 40-year period but to weaken over time.     

Book review of Economic Geography of Higher Education: Knowledge Infrastructure and Learning Regions. Edited by ROEL RUTTEN,FRANS BOEKEMA and ELSA KUIJPERS (London: Routledge, 2003). [Pp. 258]

This paper focuses on the growing aspect of entrepreneurship associated with lifestyle-induced migration from wealthy countries, through investigating self-employment among expatriates from northern Europe in rural areas of southern France and Spain. Most expatriates had no prior experience of entrepreneurship and typically established their business opportunistically and some time after arrival. Based upon interviews with 41 expatriate households (operating 70 business ventures), the study explores the characteristics of the individuals involved, the nature of their businesses, factors influencing start-up, and processes and patterns of business development. Self-employment is shown to be the most effective available mechanism for supporting lifestyle objectives of expatriates who vary greatly in their skills, experience and resources. The study identifies significant differences between the respective groups from the two countries, reflecting the spatially differentiated character of migration in terms of age, education, qualifications and capital resources. These appear to have given rise to a more sophisticated profile of businesses in the French areas. Sharp differences in language skills as between the different countries are seen as influencing the ability of entrepreneurs to network with, and market to, the indigenous population, with implications for the future development of the businesses, and their local impact. The study seeks to augment standard conceptual approaches to entrepreneurship, through taking account of the primacy of the migration decision and specific related processes, and proposes a model that advances our understanding of the phenomenon.     

Return Migrants: The Rise of New Entrepreneurs in Rural China

This paper analyzes return migrants’ self-employment decision upon their return to their home villages, by using an original rural household survey conducted in Wuwei County (Anhui province, China) in 2008. We find that return migrants are more likely to be self-employed than nonmigrants, and that both return savings and the frequency of job changes during migration increase the likelihood for return migrants to become self-employed. These findings suggest that (a) return migration can help revitalize rural economies and alleviate poverty in less developed areas in China, and (b) repatriated capital is a key, stimulating factor in promoting rural entrepreneurial activities.