Bank loan officers' perceptions of the characteristics of men,women, and successful entrepreneurs

Much anecdotal evidence suggests that women, compared to similarly situated men, have great difficulty securing financing for entrepreneurial endeavors. In addition, a mounting body of evidence illustrates how women in managerial roles are perceived in terms of sex stereotypes rather than in terms of their accomplishments. The present study extends this line of research to investigate whether female entrepreneurs are also viewed in terms of sex stereotypes.One hundred and six bank loan officers evaluated either men, women, or successful entrepreneurs on scales assessing nine attributes of successful entrepreneurs.² The nine entrepreneurial qualities were leadership, autonomy, propensity to take risks, readiness for change, endurance, lack of emotionalism, low need for support, low conformity and persuasiveness. It was hypothesized that sex stereotypes influenced perceptions that women, compared to men, did not possess the characteristics necessary for successful entrepreneurship.Results confirmed the hypothesis that characteristics attributed to successful entrepreneurs were more commonly ascribed to men than to women. On the dimensions of leadership, autonomy, risk taking, readiness for change, endurance, lack of emotionalism and low need for support, bank loan officers rated women as significantly less like successful entrepreneurs compared to men. While gender differences on the remaining three dimensions failed to reach statistical significance, women were never rated as closer to successful entrepreneurs than were men. These results are consistent with anecdotal evidence of the difficulties female entrepreneurs encounter in securing working capital. The results are also consistent with past research examining commonly held sex stereotypes of male and female managers and executives.These findings raise questions regarding the degree to which loan officers are influenced by sex stereotypes in considering loan applications from male and female aspiring entrepreneurs. From a bank's perspective, it may be important to train loan officers to avoid falling back on sex stereotypes in evaluating proposals for new businesses. Similarly, it may be important to alert female entrepreneurs to the need to dispel traditional sex stereotypes in the context of loan application interviews.     

Take the money or run? Investors' ethical reputation and entrepreneurs' willingness to partner

Drawing on the multi-principal–agent perspective, this research models the influence of venture capitalists' reputation for ethical behavior on entrepreneurs' willingness to partner decisions. We test our model using a two-study design. Study one, a conjoint experiment, revealed that explicit knowledge of past unethical behavior negatively affects entrepreneurs' willingness to partner. Interaction effects revealed that factors previously shown to influence the entrepreneurs' evaluations—investor value-add and investment track record—become largely contingent upon and often subjugated by investors' ethical reputation. Study two, a traditional between-subjects scenario experiment, revealed that when entrepreneurs develop their own perceptions about the ethicality of an investor's prior behaviors, the ethical dimension remains highly influential. Further, we find that as the consequences of rejecting funding become more severe (e.g., possible bankruptcy), entrepreneurs become increasingly willing to partner with unethical investors. We also find that high fear of failure entrepreneurs are less willing to partner with unethical investors than their low fear of failure counterparts.     

The process of female borrower discouragement

Recent entrepreneurial finance literature identifies ‘borrower discouragement’ as an important phenomenon explaining why female entrepreneurs hold less capital to grow their venture. But how do you become a discouraged borrower? We apply grounded theory to interviews with Tanzanian female entrepreneurs and model the process via which these entrepreneurs become discouraged. Our model suggests that entrepreneurs hold negative perceptions regarding loan application, allocation and payback procedures shaped by both internal and external information sources. We demonstrate that negative perceptions cause an unfavorable attitude towards formal loans which together with entrepreneurs' perceptions of societal norms lead to a low intention to apply.     

The Effect of Enhancing Workers’ Employability on Small and Medium Enterprises: Evidence from Spain

In this paper, we analyse the effect of promoting workers’ employability on labour productivity. To this end, we adapt a simple efficiency-wage model that includes the employer’s decision on the provision of opportunities for enhancing workers’ employment prospects in a context of job insecurity. We show that (i) by facilitating workers’ employability, the firm increases its labour productivity; and (ii) the higher the job uncertainty the higher the productivity gains due to the increase in employability. One of the advantages of our model is that it is simply enough to allow us to formulate two testable hypotheses, namely (i) the increase of jobs’ potential to enhance workers’ employability results in higher level of workers’ effort, and (ii) the provision of employability is more profitable for small and medium enterprises (SMEs) than for large firms. More precisely, SMEs should obtain higher effort levels from employees by fostering workers’ employability than large firms. We provide some evidence supporting these hypotheses from a highly representative sample of Spanish manufacturing firms. This research has been funded by the Spanish Ministry of Education and Science, project SEJ2004-07242-C03-02.     

An empirical study of salesperson stereotypes amongst UK students and their implications for recruitment

The success of recruitment efforts can have a major impact on sales force effectiveness. Students have long been considered a good source of potential sales recruits, but research has found students have generally negative perceptions of selling as a career. One reason for such perceptions may be negative stereotypes of salespeople held by students. However information on the content of UK sales stereotypes remains anecdotal at best. This study empirically examines UK business students' stereotypes of salespeople using a two-stage approach. Findings suggest that these stereotypes are generally negative. However, we create profiles of salespeople using our findings, and consequently uncover some positive aspects to the stereotype. The study provides instruction on how to use stereotypes in subsequent work, as well as how to utilise the profiles in recruitment efforts.     

Shaping the castle according to the rocks in the path? Perceived discrimination,social differences,and subjective wellbeing as determinants of firm type among immigrant entrepreneurs

This paper argues that transnational entrepreneurs are characterized in terms of their differing perceptions of the host society in comparison to conventional immigrant entrepreneurs. We focus on three aspects of individuals’ perception of informal institutions which include (1) individuals’ perception of discrimination based on first-person and third-person experience, (2) individuals’ perception of social differences, and (3) subjective wellbeing. We find that among other immigrant entrepreneurs, transnational entrepreneurs are more likely to perceive social differences within the host society, to have been discriminated against, and experience dissatisfaction regarding opportunities and income.     

The effects of perceptions of risk, environmental uncertainty, and growth aspirations on new venture creation success

This study extends Xu and Reuf (Strateg Organ 2:331?C355, 2004) by exploring the strategic and non-strategic risk-taking propensity perceptions of nascent entrepreneurs as it relates to the subsequent likelihood of venture formation success. In addition, the moderating influences of perceptions of environmental uncertainty and venture growth aspirations are also examined. Findings from an analysis of data from the Panel Study of Entrepreneurial Dynamics (PSED) I indicate that an entrepreneur??s risk-taking propensity has no relationship to the likelihood of successfully starting a business. Perceptions of environmental uncertainty and venture growth aspirations were positively related to non-strategic risk-taking propensity, yet none of these variables (strategic and non-strategic risk-taking propensity, environmental uncertainty and growth aspirations) had a significant effect on venture creation success. We suggest that risk-taking propensity, as measured in this study, does not play a significant role in differentiating between nascent entrepreneurs or others, or between those that are successful or unsuccessful at starting businesses.     

How On‐the‐Job Embeddedness Influences New Venture Creation and Growth

This study aims to answer why some employees choose to start their own ventures, whereas others choose to seek jobs in other organizations after leaving their current employment. Drawing insights from knowledge‐based view and social capital theory, we examine the impact of on‐the‐job embeddedness on the decision of employee entrepreneurship, industry choice, and new venture growth. We argue that on‐the‐job embeddedness provides key resources for employees to start new ventures and grow them. We test our hypotheses with Panel Study of Entrepreneurial Dynamics (PSED) data. Our results show that on‐the‐job embeddedness increases the probability of employees becoming entrepreneurs. Once they decide to become entrepreneurs, those employees with high on‐the‐job embeddedness are more likely to start new ventures in the industry in which they worked before. Moreover, employees' on‐the‐job embeddedness has a positive impact on new venture growth.     

The impact of habitual entrepreneurial experience on new firm closure outcomes

In this paper, we argue that it is difficult for habitual entrepreneurs to use their experiential knowledge to develop a more viable new firm than novice entrepreneurs. Hindered by the difficulty of disentangling how actions lead to outcomes in low predictive environments such as new firm settings; hampered by the novelty and uncertainty of new firm closure; and misguided by subjective beliefs about their ability, we contend that habitual entrepreneurs close their new firm just as quickly as novice entrepreneurs and are just as likely to go bankrupt. Using large-scale panel data that track new firm closure amongst 7400 new German firms, we find that the new firms run by habitual entrepreneurs close just as quickly as those run by novice entrepreneurs. We also find that habituals are just as likely as novices to see their new business go bankrupt.     

Effects of Expiration Date-Based Pricing on Brand Image Perceptions

Expiration date-based pricing (EDBP) occurs when a grocery retailer reduces the price of a perishable product according to its remaining shelf life. While, conventional wisdom suggests that this practice leads to negative consumer evaluations of brand quality, a series of field experiments reveal negative effects on brand quality perceptions only among loyal consumers and those who perceive low risk associated with perishables. The effect is also mediated by consumer distrust (Study 1). In addition, EDBP has no effect on brand quality image if consumers are already familiar with this pricing practice (Study 2), and it may even generate positive consumer evaluations when framed as a cause-related marketing activity to reduce waste (Study 3). Additional evidence indicates that psychological contract violation perceptions provide the underlying mechanism for explaining consumer responses to EDBP (Study 4). This article ends with an agenda for further research and implications for retail practice.     

The biasing effect of evocative attributes at the implicit and explicit level: The tradition halo and the industrial horn in food products evaluations

This contribution investigates the role of food product attributes on consumer choices focusing on different production processes, labeled as ‘traditional’ or ‘industrial’. More specifically, we aim at documenting a novel halo (positive) effect of the Tradition label versus a horn (negative) effect of the Industrial label on the implicit and explicit perceptions of healthiness and tastiness of a food product using an experimental design as well as potential moderation effects of pro-environmental beliefs. In four studies, we manipulated the label of two brands of cheese regarding their production process (Study 1 and Study 2: traditional vs. industrial, Study 3: traditional vs. no label, Study 4: industrial vs. no label) and we measured implicit (with SC-IAT in Study 1, SA-IAT in Study 2, and IAT in Study 3 & 4) and explicit (self-report) perceptions of healthiness and tastiness. Results showed a Tradition halo effect and an Industrial horn effect on explicit perceptions of tastiness and healthiness. Results on implicit perceptions of healthiness seem to depend to some extent on pro-environmental beliefs. Results suggest that tradition-labeled food should be introduced in conventional supermarkets instead of investing in the opening of new specialized stores.     

Employability enhancement through formal and informal learning: an empirical study among Dutch non‐academic university staff members

Although learning is generally perceived as a way to improve employees' current job performance, so far, no research has been conducted to explore the possible relationships between formal and informal learning, on the one hand, and employability, on the other. Though contemporary views stress the importance of the job as a powerful learning site, considerable research evidence underpinning these views is lacking. This paper goes into the impact of formal and informal learning upon employability. The influence of employee characteristics and organizational factors is also taken into account. An e‐questionnaire was used to collect data among 215 Dutch non‐academic university staff members. Our findings emphasize the necessity of Human Resource Development strategies that encompass a mix of formal and informal learning opportunities. In particular, participation in networks appears to be an important predictor for employability. With the outcomes of this study, we aim to contribute to the further development of theoretical insights regarding employability enhancement through learning possibilities embedded in the workplace. It seems that strategies that focus exclusively on enhancing informal on‐the‐job learning should not be encouraged. Our study is limited to one context and further research is required to investigate the generalizability of the findings to other occupations and/or countries.     

The skill balancing act: when does broad expertise pay off?

We compare skill sets of employees working in businesses of different size to the skill sets of entrepreneurs. Employees in large businesses tend to have a lower skill balance than those working in small businesses; yet, the skill balance of entrepreneurs remains the largest. Our evidence suggests that the skill level and skill scope matter for balance and increase with formal education levels but decrease with the number of previous occupations. We find a positive relationship between skill balance and income that is strongest for entrepreneurs. For employees, the relationship remains positive but the magnitude of the association decreases when business size increases.     

Not for Lack of Trying: American Entrepreneurship in Black and White

Using a sample obtained from a survey conducted in the United States during summer 2002, we study the variables related to observed differences in the rate of entrepreneurial involvement between black and white Americans. We find strong evidence that differences in subjective and often biased perceptions are highly associated with entrepreneurial propensity across these two racial groups. In addition, we find that black Americans tend to exhibit more optimistic perceptions of their business environment than other racial groups and are more likely than others to attempt starting a business. In fact, our results show that blacks are almost twice as likely as whites to try starting a business. Thus, our results suggest that the under representation of black Americans among established entrepreneurs is not due to lack of trying but may instead be due to stronger barriers to entry and higher failure rates.     

Venture distress and problemistic search among entrepreneurs in Brazilian favelas

When do entrepreneurs in emerging markets seek out help from organizational sponsors? Problemistic search theory suggests that entrepreneurs will seek out sponsors in moments of venture distress. However, this theory was developed in the context of large organizations; it is not clear how it might apply to entrepreneurs in resource-constrained contexts. We use three inductive studies conducted in favelas in Brazil to examine when entrepreneurs seek help. Consistent with problemistic search theory, we find evidence that entrepreneurs seek out help from organizational sponsors in moments of venture distress. We also explore what types of entrepreneurs are most likely to seek help in a situation of venture distress and find that entrepreneurs who are more socially embedded and have more social obligations are more likely to take up sponsorship services, leading to important heterogeneity in our results on take-up. We find that women, more mature ventures, and middle-aged entrepreneurs are all more likely to engage in problemistic search. We contribute to a more contextualized theory of problemistic search for small entrepreneurs in emerging markets. We also provide important theoretical and practical insights about the demand-side of organizational sponsorship.     

Motivating industrial salesforce with sales control systems: An interactive perspective

This research examines the interactive effects on industrial salespeople's intrinsic and extrinsic (I/E) motivation of outcome control, activity control, and capability control above and beyond their main effects. I/E motivation are disaggregated into their cognitive and affective dimensions. Moderated regressions using a sample of industrial salespeople find that (1) outcome control and capability control have positive interactive effects on task enjoyment and recognition seeking, (2) outcome control and activity control have a positive interactive effect on compensation seeking but a negative interactive effect on task enjoyment, and (3) activity control and capability control have a negative interactive effect on recognition seeking. Moreover, we find that compensation seeking has a stronger positive effect on sales performance when salespeople deal with more new customers whereas the opposite is true for challenge seeking; compensation seeking appears to elevate job satisfaction only when there is a lower percentage of new customers but the positive effect of recognition seeking on job satisfaction is enhanced when salespeople handle a higher number of new accounts. These findings offer important theoretical and managerial implications by providing compelling evidence that sales control interactive effects should be considered when studying relationships among sales control systems, salesperson motivation, and job outcomes.     

Embedded entrepreneurship in the creative re-construction of place

This paper focuses on ways in which entrepreneurs engage with place and community. Drawing on the ideas of embeddedness and transferring value across spheres, we develop insight about how the relationship between entrepreneurs and communities influences entrepreneurial practices and outcomes. Employing an ethnographic perspective including participant observation, we explored the situated practices of entrepreneurs in two depleted communities in the Northwest of Ireland. We found that entrepreneurs not only drew on the community in running their business, but were also involved in a wide range of “other” activities that engaged, involved and worked with the community. This entrepreneurship produced a range of projects that addressed social and economic issues (unemployment, employability and emigration) and the depleted sense of place which was adversely affecting these communities. We show how social bonds and an affinity to community enable entrepreneurship to create, renew and reify a positive identity of place by combining understanding with entrepreneurial purpose.     

Interaction between feasibility and desirability in the formation of entrepreneurial intentions

The literature argues that entrepreneurial intentions depend on perceptions of desirability and perceptions of feasibility. Research in other fields suggests that there will be an interaction effect between these two main antecedents of intentions, but such interaction has not been investigated in the context of entrepreneurial intentions. In this paper we explore this interaction effect in an expectancy framework, hypothesizing a negative interaction effect between perceived desirability and perceived feasibility based on regulatory focus theory. A large multi-country sample confirms this negative interaction, and suggests a novel typology of nascent entrepreneurs as natural entrepreneurs, accidental entrepreneurs, and inevitable entrepreneurs.     

Differences in international opportunity identification between native and immigrant entrepreneurs

The aim of this study is to understand more about how identification of international opportunities differs between native and immigrant entrepreneurs. Based on a survey of 116 immigrant and 864 native Norwegian entrepreneurs with newly registered firms, we show that immigrant entrepreneurs are more likely to identify international opportunities than native entrepreneurs are. We reveal important differences in the identification process between native and immigrant entrepreneurs. Whereas general human capital has a significant positive effect on international opportunity identification for native entrepreneurs, we cannot find the same effect among immigrant entrepreneurs. Moreover, although financial capital positively influences international opportunity identification among native entrepreneurs, the same effect is significantly negative among immigrant entrepreneurs. Based on these findings, we conclude that native and immigrant entrepreneurs do not utilise the same resources to identify international opportunities. This study contributes to the literature on international entrepreneurship by documenting significant differences in how native and immigrant entrepreneurs identify international opportunities. It also contributes to immigrant entrepreneurship literature by bringing the opportunity-based view of entrepreneurship into the field.