Argonauts and Icaruses: Social networks and dynamics of nascent international entrepreneurs

Drawing on Bourdieu’s theory of practice, we consider internationalization as a process of field crossing and apply this framework to nascent international entrepreneurs. The analysis of 37 interviews with French entrepreneurs, managers, and support providers in China allows identifying two types of international entrepreneurs: (1) “Fallen Icaruses”, unable to incorporate and exhibit a global habitus and who fall back to the home field, and (2) “Global Argonauts”, incorporating and exhibiting a global habitus and who proceed with internationalization. Our findings show that social networks can be hostile to newcomers and that incumbents in those networks first assess newcomers’ “compatibility”. We posit that the success of international initiatives by entrepreneurs depends on their ability to cross and fit into different “fields”, and to develop various forms of social relationships in those fields.     

The emergence of the maker movement: Implications for entrepreneurship research

The maker movement has been touted as a harbinger of the next industrial revolution. Through shared access to tools and digital fabrication technologies, makers can act as producers in the sharing economy and potentially increase entrepreneurship rates, catalyze advanced manufacturing, and spur economic development. We develop a model of the maker movement configured around social exchange, technology resources, and knowledge creation and sharing. We highlight opportunities for studying the conditions under which the movement might foster entrepreneurship outcomes and discuss how research on the maker movement can deepen our understanding of entrepreneurial teams and corporate entrepreneurship.     

Entrepreneurs in the making: Six decisions for fostering entrepreneurship through maker spaces

Maker spaces—shared production facilities offering access to basic and advanced manufacturing technologies—have quickly become the latest must-have for universities, large corporations, and communities looking to foster entrepreneurship and innovation. While the entrepreneurial and educational prospects of maker spaces are certainly intriguing, questions remain concerning their design and effectiveness. Drawing primarily on case evidence and conversations with five maker spaces located across the U.S., we identify and present six key decisions for maker space leaders looking to foster entrepreneurship in their organizations. We conclude with a decision framework for maker space leaders and a series of questions for entrepreneurs as both groups work to pursue entrepreneurship through and in maker spaces.     

The evolution and adoption of equity crowdfunding: entrepreneur and investor entry into a new market

Equity crowdfunding (ECF) offers entrepreneurs an online social media marketplace where they can access numerous potential investors who, in exchange for an ownership stake, may supply them with finance. In this paper, we describe the evolution of this market in the UK. Using an inductive qualitative longitudinal research design, we analyse the emerging views of entrepreneurs and investors towards ECF. Our interviewees include large and small-scale investors, as well as market participants who have chosen not to invest or raise funds via ECF. We find that the large financial flows to entrepreneurs in the UK via the ECF platforms, nearly half a billion GBP since 2011, have probably been largely incremental to traditional sources of early stage entrepreneurial finance. Moreover, our research indicates that for the most part, investors appear to understand and appropriately evaluate the risks that they are bearing; ECF investments are perceived as a high risk, high return component within individuals’ portfolios. Investors also use their communication with peers and entrepreneurs via the ECF platform as a learning tool. On the entrepreneurs’ side, ECF allows them to test their products, to develop their brand, to build a loyal customer base and to turn customers into investors. We conclude that policymakers, with the support of a locally appropriate regulatory framework, could support equity crowdfunding as one of the market choices available for entrepreneurs looking to start or grow their ventures.     

The entrepreneur's mode of entry: Business takeover or new venture start?

We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry level risk promote the takeover mode. A sample of data on entrepreneurs from The Netherlands provides broad support for these hypotheses, and also bears out a prediction that entrepreneurs whose parents run a family firm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy makers.     

The Contingent Value of Entrepreneurs’ Political Capital: Evidence from China

ABSTRACT

Who benefit from a transitioning economy, entrepreneurs who are politically connected or disconnected? Market transition theory and power conversion theory offer two divergent answers. Our study seeks to contribute to this debate by examining the contingent value of entrepreneurs’ political capital. We draw from social network theories and investigate whether and how entrepreneurs’ social networks influence the relationship between their political capital and social mobility. Using the data on Chinese entrepreneurs, we find that the impact of political capital on entrepreneurs’ social mobility is contingent on their network centrality. Practical implications and suggestions for future research are also discussed.     

Exploring the role played by entrepreneurial self-efficacy among women entrepreneurs in tourism sector

This study aimed to explore how entrepreneurial self-efficacy impacts firms' performance among women entrepreneurs in developing countries in tourism and hospitality industry. Survey data collected from women entrepreneurs in Sri Lanka confirmed entrepreneurial self-efficacy is influenced by social media, entrepreneurial passion and entrepreneurial role models, whereas education and work experience had no influence over entrepreneurial self-efficacy. The mediating behavior of entrepreneurial persistence behavior is confirmed. For entrepreneurship stakeholders, this research revealed a critical factor that entrepreneurial self-efficacy is influenced by social media in digital world of technologies. Moreover, this research provided a validated model of entrepreneurial self-efficacy, enhancing its usage during the adversity or growth stages of business while producing valuable insights to policy makers in developing countries, enhancing women entrepreneurs’ contribution to the economy.     

Competing in network markets: Can the winner take all?

Products as varied as software, credit cards, and even coffee makers are influenced by network effects whereby the product's value is contingent upon the number of people using it. In turn, markets for these products offer lucrative returns to managers who can leverage the dynamics in their favor. This article describes recent research focusing on the factors that influence success and failure in network markets. We offer recommendations and initiatives that increase the likelihood of success in network markets for entrepreneurs and incumbents alike.     

Decisions,Actions, and Performance: Do Novice,Serial, and Portfolio Entrepreneurs Differ?*

A conceptual framework is extended to take into account differences between inexperienced novice entrepreneurs (that is, individuals with no prior private business ownership experience) and experienced serial and portfolio entrepreneurs. Some policymakers and practitioners are considering whether resources could be more effectively utilized if they were targeted toward serial and portfolio entrepreneurs, rather than in the form of additional initiatives to increase the pool of “pure” nascent entrepreneurs and novice entrepreneurs. To inform this policy debate, similarities and differences between novice, serial, and portfolio entrepreneurs are highlighted with regard to their decisions, actions, performance, and aspirations. We detected that portfolio entrepreneurs were more likely to express dimensions of entrepreneurial behavior. A case for targeted support tailored to the aspirations and needs of novice, serial, and portfolio entrepreneurs is presented.     

An exploration of entrepreneurs' identities and business growth

The purpose of this study is to determine whether certain types of identities are more likely than others to be present before and during business growth. We collect data from six entrepreneurs and adopt an interpretivist approach, using Van Gennep's theory of transitions, to explore the challenges faced by entrepreneurs after startup and during business growth. We find that business growth challenges entrepreneurs' identities as they aspire to achieve their personal goals and reach self-fulfillment. These identities consist of entrepreneurial, manager, personal, and social identities, and each has distinct roles within the business. We conclude by discussing the implications of our findings for entrepreneurs and policy makers. We recommend that entrepreneurs receive a combination of personal and business support, especially during more uncertain, high-pressure, and complex times.     

Successful U.S. Entrepreneurs: Identifying Ethical Decision-making and Social Responsibility Behaviors

This two-part study analyzed some of the ethical choices made by founding entrepreneurs during the creation and development of their ventures in order to identify the areas in which founding entrepreneurs must make decisions related to ethics or social responsibility during venture creation and development. Content analysis was used to identify decisions with ethical components and/or implications from in-depth interviews with 10 successful business founders. The research for part one of the study was guided by the following research question: In what areas must entrepreneurs make decisions with ethical and/or social responsibility implications during new venture creation and development? The authors identified four distinct categories of decisions where ethical or social responsibility components exist: (1) individual entrepreneurial values-related decisions, (2) organizational culture/employee well-being decisions, (3) customer satisfaction and quality decisions, and (4) external accountability decisions. In the second part of the study, the decisions identified in part one were analyzed using a framework derived from prior research in ethics. This framework was developed from the work of Kant (1964) who theorized about human morals and Rawls (1971) who developed theories about justice. Part two of the study was guided by the following research questions: Do entrepreneurs have values and ethics similar to those held by society in general? If they don’t, how do their values and ethics differ? The comparison revealed that the ethics and/or values that the entrepreneurs either explicitly or implicitly acknowledged were in fact similar to those of society in general.     

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.     

Corporate social responsibility for poverty alleviation: An integrated research framework

There is a growing demand by United Nations development agencies and governments for a higher engagement of firms in sustainable development goals, including that of eradicating poverty. Nevertheless, the social issue of poverty has not traditionally been covered by firms’ corporate social responsibility (CSR) initiatives. In addition, there is a need to integrate theories in order to better explain pro‐poor CSR in developing countries. Relying on a review of both conceptual and empirical research articles on CSR for poverty alleviation, this study contributes to the CSR research agenda by proposing an integrated research framework for assessing and explaining a firm's contribution to poverty alleviation. Besides discussing the existing evidence, the following issues are critically analysed with the general purpose of obtaining the framework and suggesting avenues for future research: the assessment of a firm's contribution to poverty alleviation, types of pro‐poor CSR initiatives that could be adopted by firms, and the factors influencing a firm's contribution. The framework, which intends to be useful for future research, can also assist the United Nations to increase the firms’ contribution to its alleviating poverty sustainable development goal.     

Building international entrepreneurial virtual networks in cyberspace

We examine how software international entrepreneurs in Iceland use online social network sites to develop and harness their network relationships. To study these relationships, we use a combination of participant observation on LinkedIn and open ended face-to-face interviews. The framework for this study is based on resource-based view, networks and international entrepreneurship theories. We found that entrepreneurs with the largest networks use the online social network to demonstrate their network strength and to identify opportunities to bridge relationships. Our contribution illustrates how entrepreneurs acquire resources to internationalize through online social capital formation.     

Yours,mine, and ours: A user-centric analysis of opportunities and challenges in peer-to-peer asset sharing

The sharing economy is growing globally in terms of user numbers, service providers, and novel concepts. Peer-to-peer (P2P) asset sharing, or asset rental between private individuals, has attracted the attention of entrepreneurs and researchers alike. P2P asset-sharing networks need to focus on two distinct customer groups: (1) asset owners willing to rent out their assets, and (2) renters interested in renting others’ assets. Despite consumers’ high interest in P2P asset sharing, participation rates lag projections, which is mainly attributable to lack of participating asset owners. This could be problematic for P2P networks as they do not own assets; instead, they rely on a sufficient number of asset owners to participate. Detailed indications on the participation motives of users are required to distinctly position P2P asset sharing and enhance communication of consumer-relevant benefits. To this end, we have engaged in a detailed investigation of participation motives in the P2P car-sharing context. We have conducted in-depth interviews with car owners and renters to derive usage types that represent consumer decision profiles that participate in P2P car-sharing services. Based on our findings, we provide extensive recommendations to entrepreneurs in the P2P asset-sharing market.     

An agentic perspective of resourcefulness: Self-reliant and joint resourcefulness behaviors within the entrepreneurship process

We integrate social cognitive theory, and its tenets of personal and collective agency, to develop an individual-level perspective on entrepreneurs' resourcefulness behaviors that illustrates how resourcefulness behaviors can be classified as ‘self-reliant behaviors’ or ‘joint resourcefulness behaviors’. Using this novel cognitive theoretical approach, we provide and test a framework that explains how dispositional, perceptual, and behavioral factors interact in the enactment of purposeful action with regards to entrepreneurs' resourceful behaviors. Consistent with our hypotheses, results from a quantitative study of entrepreneurs (N = 178), as well as a supplemental study involving qualitative interviews with entrepreneurs (N = 15), highlight that entrepreneurs higher in frugality tend to perceive higher levels of environmental hostility. This relationship, in turn, leads to higher amounts of self-reliant resourcefulness behaviors (i.e., customer-related and internal self-financing bootstrapping behaviors) but not joint resourcefulness behaviors. Multiple theoretical and practical contributions emerge from our findings as the extant literature does not yet account for human agency as a reason why some entrepreneurs may choose to engage in certain resourceful behaviors relative to other behaviors.     

Responsible Entrepreneurship in Developing Countries: Understanding the Realities and Complexities

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete.     

Measuring Ethnic Community Involvement: Development and Initial Testing of an Index*

This paper builds on the work of Chaganti and Greene, who distinguish between ethnic minority entrepreneurs/small business owners who are very involved with their ethnic community and those who are not. We extend their work by developing an Index of Ethnic Community Involvement based not only on personal but also business characteristics. We utilize a large sample size (698 interviews with entrepreneurs), drawn from five ethnic groups, and develop a valid and reliable (0.69) Index of Ethnic Involvement (IEI) with a strong emphasis on social capital theory. Our initial analysis shows the IEI predicts some personal and business characteristics. Future development will include building regression models to predict business outcomes. The IEI, when fully developed, promises to be useful for targeting assistance, education and training programs, and policy initiatives for entrepreneurs and small business owners according to the level of ethnic community involvement.     

Why Create Value for Others? An Exploration of Social Entrepreneurial Motives

Social entrepreneurs create value for and with target communities in need. This paper responds to calls for research addressing social entrepreneurs’ drive to benefit others. We draw from psychology to augment the understanding of motives in entrepreneurship before conducting a phenomenon‐driven, instrumental case study of social entrepreneurs’ motives. We find some emotions, such as entrepreneurial passion and frustration, lead to self‐oriented motives, while sympathy and empathy are precursors for other‐oriented motivations, such as altruism and social justice. This work provides a theoretical platform for future studies in entrepreneurial motivation that addresses the importance of nonfinancial motives and associated rewards for fostering engagement in the sector.