Rags to riches? Entrepreneurs' social classes,resourceful time allocation,and venture performance |
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| Institution: | 1. School of Business, Renmin University of China, China;2. Kelley School of Business, Indiana University, United States of America;1. Interdisciplinary Centre for Security, Reliability and Trust (SnT), University of Luxembourg, 29, Avenue John F. Kennedy, 1855, Luxembourg, Luxembourg;2. University of Bergamo, Department of Management, Information and Production Engineering, via Pasubio 7b, 24044 Dalmine, Italy;3. University of Bergamo, Department of Management, Via dei Caniana, 2, 24127 Bergamo, BG, Italy;4. Trier University, Faculty of Management, 54296 Trier, Germany;5. Erasmus School of Economics, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, the Netherlands;1. Rawls College of Business, Texas Tech University, USA;2. College of Business, Colorado State University, USA;3. Ivey Business School, Western University, Canada;4. Gustavson School of Business, University of Victoria, Canada;1. emlyon business school, 23, avenue Guy de Collongue, CS 40203 69134 Ecully Cedex, France;2. School of Economics and Management, Lund University, P.O. Box 7080, S-220 07 Lund, Sweden;1. Martin J. Whitman School of Business, Syracuse University, United States of America;2. Joseph M. Katz Graduate School of Business, University of Pittsburgh, United States of America;1. Department of Management and Entrepreneurship, Sawyer Business School, Suffolk University, 73 Tremont Street, Boston, MA 02108, United States;2. Said Business School, University of Oxford, Park End Street, Oxford OX1 1HP, United Kingdom;3. Department of Management, Belk College of Business, University of North Carolina at Charlotte, Charlotte, NC 28223, United States;4. Management Department, Mays Business School, Texas A&M University, College Station, TX 77843, United States |
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| Abstract: | Social classes shape entrepreneurial pursuits in that entrepreneurs from lower social class groups face more resource deficiencies compared to those from higher social class groups. In this study, we theorize that being resourceful with a particular resource—time—helps ventures run by lower-class entrepreneurs achieve better performance. However, we further argue that the extent to which entrepreneurs use time resourcefully is affected by the cognitive schemas stamped on them by their social class backgrounds. Our empirical analysis of 8663 Chinese private entrepreneurs between 2006 and 2010 lends robust support to these arguments. By revealing both material and cognitive constraints stemming from entrepreneurs' social classes, our study contributes to research on social classes and entrepreneurial resourcefulness and has important implications for understanding the persistence of inequality in entrepreneurship. |
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