Reconstructing entrepreneurial intentions to identify predisposition for growth

The entrepreneurial-intentions literature implicitly assumes that all intending entrepreneurs have similar growth aspirations, despite the observed dichotomy of growth- and independence-oriented new ventures. We integrate the ‘individual-opportunity nexus’ with heterogeneous opportunities into the entrepreneurial intentions model such that intending entrepreneurs may exhibit different growth intentions which drives their choice between growth- or independence-oriented new ventures. The individual's predisposition for growth (or not) will depend on the interaction of the salient outcomes offered by the opportunity with the attitudes of the individual towards those outcomes, and by differences in entrepreneurial self-efficacy. We find that the attitudinal antecedents differ for growth compared to independence intentions, and suggest a way to identify intending entrepreneurs who are predisposed to growth.     

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.     

Why Hurry? The Slow Process of High Growth in Women‐Owned Businesses in a Resource‐Scarce Context

This article critically uncovers how embeddedness within a resource‐scarce context influences high‐growth women’s entrepreneurship. Research suggests that though highly embedded women entrepreneurs can easily access resources and attain legitimacy, resulting in high‐growth businesses, they can also become locked into existing systems that constrain their growth development paths. Using 16 qualitative cases developed in Cameroon, we unpack and resolve this paradox by analyzing how entrepreneurial path creation by women entrepreneurs enables the realization of growth aspirations. Implications for initiatives to support high‐growth women’s entrepreneurship in resource‐scarce contexts are critically examined.     

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.     

Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?

Previous research on the psychology of entrepreneurs found that personality traits such as locus of control failed to distinguish entrepreneurs from managers. In search of an individual characteristic that is distinctively entrepreneurial, we proposed an entrepreneurial self-efficacy construct (ESE) to predict the likelihood of an individual being an entrepreneur. ESE refers to the strength of a person’s belief that he or she is capable of successfully performing the various roles and tasks of entrepreneurship. It consists of five factors: marketing, innovation, management, risk-taking, and financial control.We conducted two studies, one on students and the other on small business executives. Study 1 found that the total ESE score differentiated entrepreneurship students from students of both management and organizational psychology, and that across the three types of students, ESE was positively related to the intention to set up one’s own business. We also found the entrepreneurship students to have higher self-efficacy in marketing, management, and financial control than the management and psychology students. In study 2, we simultaneously tested effects of ESE and locus of control on the criteria of founders vs. nonfounders of current businesses. After controlling for individual and company background variables, the effect of ESE scores was significant, but the effect of locus of control was not. More specifically, it was found that business founders had higher self-efficacy in innovation and risk-taking than did nonfounders.The results of this study demonstrate the potential of entrepreneurial self-efficacy as a distinct characteristic of the entrepreneur. From these results, some important implications can be drawn on entrepreneurial assessment, education, counseling, and community intervention. First, ESE can be used to identify reasons for entrepreneurial avoidance. There may be many individuals who shun entrepreneurial activities not because they actually lack necessary skills but because they believe they do. This is especially true for sectors of the population such as women or those minority groups who are perceived as lacking entrepreneurial traditions. Communities and individuals could benefit from identifying sources of entrepreneurial avoidance by targeting their efforts toward enhancing ESE of particular groups or individuals for specific aspects of entrepreneurship.An additional use of ESE is to identify areas of strength and weakness to assess the entrepreneurial potential of both an individual and a community. Once entrepreneurial potential is identified, resources can be channeled and more effectively used to promote entrepreneurship. Finally, diagnosis and treatment of ESE can be performed on real entrepreneurs. The entrepreneur may be completely avoiding, or performing less frequently, certain critical entrepreneurial activities because s/he lacks self-efficacy. For example, the entrepreneur may be avoiding company growth for fear of losing control. Identification and removal of self-doubt will enable the entrepreneur to be actively engaged in entrepreneurial tasks, more persistent in the face of difficulty and setbacks, and more confident in meeting challenges.Overall, ESE is a moderately stable belief and requires systematic and continuous efforts to be changed. Two broad approaches can be taken toward desired change. One is the micro-approach that directly focuses on people’s beliefs. In designing and conducting entrepreneurship courses, training institutions should not just train students in critical entrepreneurial skills and capabilities but also strengthen their entrepreneurial self-efficacy. The current state of entrepreneurship courses in most management schools may fall short in both respects. Courses focus on commonly identified management skills, but often ignore entrepreneurial skills such as innovation and risk-taking. Furthermore, the teaching of entrepreneurial skills tends to be technical, with insufficient attention paid to the cognition and belief systems of the entrepreneur. Educators should take into account entrepreneurial attitudes and perceptions when designing or assessing their course objectives. Conscious efforts could be made to enhance ESE by involving the students in “real-life” business design or community small business assistance, by inviting successful entrepreneurs to lecture, and by verbal persuasion from the instructor and renowned entrepreneurs.The second approach to enhancing ESE is to work on the environment of potential and actual entrepreneurs. According to the reciprocal causation model, the environment may affect self-efficacy not only directly but also indirectly through performance. An environment perceived to be more supportive will increase entrepreneurial self-efficacy because individuals assess their entrepreneurial capacities in reference to perceived resources, opportunities, and obstacles existing in the environment. Personal efficacy is more likely to be developed and sustained in a supportive environment than in an adverse one. A supportive environment is also more likely to breed entrepreneurial success, which in turn further enhances entrepreneurial self-efficacy. Communities can work toward creating an efficacy enhancing environment by making resources both available and visible, publicizing entrepreneurial successes, increasing the diversity of opportunities, and avoiding policies that create real or perceived obstacles.     

Metaphors and meaning: A grounded cultural model of us entrepreneurship

A grounded cultural model of US entrepreneurship is developed by analysing the metaphors that entrepreneurs use to give meaning to entrepreneurship in their life-and-business narratives. The resultant cultural model is coherent and internally consistent, and is helpful in providing stronger insights into entrepreneurs' own perspectives, aspirations, and cognition of the entrepreneurial process. Close to Schumpeter's conception of the entrepreneur, it nevertheless contains elements that are markedly American, and can be contrasted both with European mental models of entrepreneurship, and metaphorically derived models of organisational behaviour.     

Nationality and work role interactions: A cultural contrast of Israeli and U.S. entrepreneurs' versus managers' needs

The globalization of business ventures and the parallel search for sources of international competitive advantage have stimulated research relating cultural differences to entrepreneurial and managerial behaviors. Recent work by McGrath, MacMillan, and Scheinberg (1992) encouraged studies of managers and entrepreneurs in different cultures, suggesting that these comparisons may “… shed additional light into the interrelations between social structure, wealth creation, and cultural beliefs” (McGrath el at. 1992, p. 116). This study follows that advice.Cultural differences are powerful determinants of behavior, and many studies support the notion that managerial behavior must adapt to the national cultural setting to achieve success. A growing stream of entrepreneurial behavior research has explored differences in motivational needs between entrepreneurs and non-entrepreneurs of different countries, and found parallel differences across cultures. Given these views, we might expect to find need differences between entrepreneurs and managers within countries however, some entrepreneurship researchers have concluded that U.S. managers and entrepreneurs are more alike than different.To better understand need profile differences between and within cultures, we use a theory that suggests that culture is an important determinant of work behavior. The process through which culture affects work behaviors is described in “Cultural Self-representation Theory” (Erez and Earley, 1993). Based upon this theory, inferences from the entrepreneurial archetype, and analysis of the contrast between the cultures of Israel and the U.S., we propose that: (1) entrepreneurs and managers have different motivational needs within some national cultures, and (2) across national cultures there are systematic differences in motivational needs. Based on these premises, an interaction hypothesis between work role and nationality is suggested because of the importance of both culture and work role in determining motivational need differences. Data are collected from over 370 Israeli and U.S. entrepreneurs and managers.Results support cultural self-representation theory for the Israeli-U.S. and entrepreneur-manager case, because interactions between nationality and work role are exposed for various needs. This finding suggests that cultural differences are indeed important for understanding management motivational needs in different nations, and that the effectiveness of entrepreneurial approaches to management may be culture-sensitive. The study illustrates work-role differences between Israeli managers and entrepreneurs. We confirm past conclusions about U.S. entrepreneur-manager need similarities, and suggest that these need similarities are supported by the individualistic culture within U.S. organizations.     

The contrasting interaction effects of improvisational behavior with entrepreneurial self-efficacy on new venture performance and entrepreneur work satisfaction

Although improvisation is often considered to be an elemental component of entrepreneurship, little work has been done to evaluate factors that influence the relationship of entrepreneur improvisational behavior with important outcome variables. In an attempt to partly fill this gap, the current study examines the moderating effect of entrepreneurial self-efficacy on the relationship of founders' improvisational behavior with both the performance of their startups and their individual level of work satisfaction using a national (United States) random sample of 159 entrepreneurs. In alignment with our predictions, improvisational behavior was found to have a positive relationship with new venture performance (i.e., sales growth) when exhibited by founders who were high in entrepreneurial self-efficacy, whereas improvisational behavior was found to have a negative relationship with new venture performance when exhibited by founders who were low in entrepreneurial self-efficacy. Contrary to our expectations, entrepreneurial self-efficacy was found to have a negative moderating effect on the relationship between entrepreneur improvisational behavior and work satisfaction.     

Young Entrepreneurs in the Mobile Telephony Sector in Ghana: From Necessities to Aspirations

Despite increasing research interest in the mobile telephony sector, only a few studies have devoted attention to informal businesses in the sector. Using qualitative field data collected on young mobile telephony entrepreneurs in Accra, this paper argues that despite the businesses being ‘informal’, they cannot be dismissed as ‘necessity’ enterprises unworthy of support. On the contrary, many young entrepreneurs have aspirations which are influencing their desire to stay in business. The article thus questions the bifurcated nature of entrepreneurial motivations, using the burgeoning mobile telephony sector as a case study, and draws out implications for policy support for youth-run businesses in the informal sector generally.     

How institutions and gender differences in education shape entrepreneurial activity: a cross-national perspective

Previous studies offer evidence that human capital obtained through education is a crucial explanation for cross-national differences in entrepreneurial activity. Recently, scholar attention has focused on the importance of education in subjects such as science, technology, engineering, and math (STEM) for the promotion of entrepreneurial activity. To our knowledge, empirical evidence for this link is scarce, despite the emphasis made in the literature and by policy makers on the choice of study at the tertiary level. Given that differences in STEM education are particularly large between men and women, we utilize data from the Global Entrepreneurship Monitor for 19 European countries and the USA. We study the role of these differences in STEM education at the national level for three stages of the entrepreneurial process: entrepreneurial awareness, the choice of sector for entrepreneurial activity, and entrepreneurial growth aspirations. We also test whether the effects of gender differences in education is moderated by the nature of the institutional environment in which entrepreneurs operate. Our findings show that individual-level explanations including education account for the gender differences during all three stages of early-stage entrepreneurial activity. Moreover, countries with greater gender equality in science education are characterized by higher entrepreneurial activity in knowledge-intensive sectors and high-growth aspirations. Thus, next to individual-level education, closing the gender gap in science at the national level can benefit a country as a whole by stimulating innovative entrepreneurial activity.     

Feeling capable and valued: A prosocial perspective on the link between empathy and social entrepreneurial intentions

Empathy is a key trait distinguishing social entrepreneurs from traditional entrepreneurs, and an important antecedent of social entrepreneurial (SE) intentions. Yet, little research explains the mechanisms through which empathy motivates SE intentions. We argue that studying the link between the prosocial trait of empathy and the prosocial outcome of SE intentions requires a prosocial lens that traditional entrepreneurial intent theories cannot offer. Building on prosocial motives research, we propose that empathy explains SE intentions through two complementary mechanisms: self-efficacy (an agentic mechanism), and social worth (a communal mechanism). We find support for our hypotheses in a study of 281 university students.     

Which institutions encourage entrepreneurial growth aspirations?

We develop entrepreneurship and institutional theory to explain entrepreneurial growth aspirations across individuals and institutional contexts. Our framework generates hypotheses at the national level about the negative impact of higher levels of corruption, weaker property rights and greater government activity on entrepreneurs' aspirations to increase employment. We further explore whether individual's social networks compensate for weaknesses in national institutions. We use the Global Entrepreneurship Monitor surveys in 42 countries for 2001–2006, applying a multilevel estimation framework to test our ideas. We find that the relationship between growth aspiring entrepreneurs and institutions is complex; they benefit simultaneously from strong government (in the sense of property rights enforcement), and smaller government, but are constrained by corruption. Social networks mediate some but not all institutional deficiencies.     

Linking family-to-business enrichment and support to entrepreneurial success: Do female and male entrepreneurs experience different outcomes?

This study used survey data from 253 entrepreneurs who founded small to medium sized enterprises (SMEs) to examine how experiences in their family domain may benefit their experiences in their business domain. Specifically, it hypothesized that affective family-to-business enrichment, instrumental family-to-business enrichment, and family-to-business support would be positively related to entrepreneurial success and that each relationship would be more positive for female entrepreneurs than male entrepreneurs. Entrepreneurial success was assessed by economic measures (business performance, growth in employment) and measures of satisfaction with the entrepreneurial experience (satisfaction with status, satisfaction with employee relationships). Results offered substantial support for the notion that female entrepreneurs benefit from the linkages of family-to-business enrichment and support to entrepreneurial success, whereas they offered no support for the notion that male entrepreneurs benefit from these linkages. Female entrepreneurs may experience such benefits because of their relative lack of access to other resources such as human, social, and financial capital and because the female gender role encourages them to pursue work–family synergies. In contrast, male entrepreneurs may fail to experience such benefits because of the relative abundance of other resources available to them and because the male gender role discourages them from pursuing work–family synergies.     

The Impact of Environment Uncertainty and Effectual Flexibility on Entrepreneurial Resource Combination: The Moderating Effect of Entrepreneurial Self-efficacy

Entrepreneurial resource combination is widely recognized as a key enabling factor to a new venture’s survival and growth, but how and why resources are integrated remain elusive. Borrowing from the theory of resource combination proposed by Sirmon, Hitt and Ireland (2007), this study empirically examines how environmental uncertainty impacts entrepreneurial resource combination. We also examine the mediating effect of effectual flexibility on the relationship between environmental uncertainty and entrepreneurial resource combination to see how new ventures utilize flexibility to neutralize the threat of environmental uncertainty. The moderating effect of entrepreneurial self-efficacy is also examined to see how entrepreneurs’ self-cognition affects these relationships. Examining data from 287 new ventures, we find that both environmental dynamism and environmental hostility have significantly positive influence on entrepreneurial resource combination (including entrepreneurial resource cohesion and entrepreneurial resource coupling). We also find that flexibility mediates the relationship between environmental uncertainty (including environmental dynamism and environmental hostility) and entrepreneurial resource combination. Empirical studies also show that entrepreneurial self-efficacy positively moderates the relationship between environmental dynamism and flexibility but negatively moderates the relationship between environmental hostility and flexibility. Theoretical and practical implications are discussed.     

Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy

There are several studies in entrepreneurship investigating determinants of innovation outcomes in SMEs. Although entrepreneurs’ entrepreneurial creativity is often seen as a prerequisite, previous research indicates it is not an exclusive determinant of innovation. We use theoretical logics of social cognitive theory and innovation theory to develop a conceptual model of entrepreneur’s creativity, self-efficacy, and innovation outcomes. The model is then tested on a large sample of small and medium firms from two distinct economies: the United States and Slovenia. Empirical findings partially support the proposed moderation effects of entrepreneurial self-efficacy, but with the same variations between countries. The implications of these results in relation to entrepreneurship theory and practice are discussed.     

Aspirations and entrepreneurial motivations of middle-class consumers in emerging markets: The case of India

The world is eyeing emerging markets where increasing numbers of consumers are entering into a new segment called the middle class. In emerging markets, this new segment of the population, as it moves up the economic ladder and seeks a better life, is considered the backbone of the economy. In this study, India is chosen because its economic progress, and changing cultural and demographics shifts, have set the stage for fundamental change of the country's middle class consumers, who are exhibiting new life-aspirations and entrepreneurial pursuits. While India's middle class continues to grow in size and importance, the existing research fails to fully address questions regarding their aspirations or life goals, entrepreneurial motivations, and demographic characteristics.This study attempts to fill the void by focusing on life goals, attitudes, and behaviors of the middle class consumers. Specifically, this study focuses on their aspirations and entrepreneurial motivations. The data collected from India reveals interesting insights about this important segment of India's people. Their demographic profiles suggest that they are well-educated, employed full-time and own assets. Furthermore, these middle class consumers express their confidence in attaining life aspirations such as financial success and personal growth. They tend to seek more opportunities for accomplishing life goals and display entrepreneurial motivations.     

Am I an entrepreneur? How imposter fears hinder women entrepreneurs’ business growth

Although participation of women in entrepreneurship continues to grow, a gender-performance gap persists. While the differential inputs and values perspectives have investigated both external and internal forces that help explain this gap, neither perspective has considered an important cognitive mechanism that captures gender differences: identity. The purpose of this article is to examine the role of imposter fears in shaping entrepreneurial identity and the desire for business growth. Entrepreneurship has long been associated with masculine notions of success, which may lead women to discount themselves as ‘real’ entrepreneurs or successful in the context of these masculine norms. Our goal is to draw attention to women entrepreneurs’ imposter fears in order to understand how women think about and construct their identity as entrepreneurs and subsequently contemplate the success and growth of their ventures. We also propose mitigating factors that can disrupt gendered norms and facilitate self-efficacy for women entrepreneurs in the pursuit of business growth.     

Entrepreneurial aspirations, motivations, and their drivers

Several drivers of entrepreneurial aspirations and entrepreneurial motivations are investigated using country-level data from the Global Entrepreneurship Monitor (GEM) for the years 2005 and 2006. We estimate a two-equation model explaining aspirations using motivations and socioeconomic variables, and explaining motivations using socioeconomic variables. We find that countries with a higher incidence of increase-wealth-motivated entrepreneurs tend to have a higher prevalence of high-job-growth and export-oriented entrepreneurship and that a country’s level of social security relates negatively to the prevalence of innovative, high-job-growth, and export-oriented entrepreneurship. We also find that the increase-wealth motive mediates the relationship between socioeconomic variables and entrepreneurial aspirations.

A Cross-National Study of Personal Initiative as a Mediator between Self-Efficacy and Entrepreneurial Intentions

Although considerable research has highlighted that high levels of self-efficacy are associated with high levels of entrepreneurial intentions, little attention has been paid to the mediating effects of different variables on the relations between self-efficacy and entrepreneurial intentions. Integrating theoretical work on self-efficacy with personal initiative literature, I developed a model of entrepreneurial intentions that included both the independent effects of self-efficacy and control variables and the mediating effect of personal initiative on entrepreneurial intentions. I tested this model with a sample of 429 students from four universities in emerging and developed countries. Results indicate that personal initiative fully mediates the effect of self-efficacy on entrepreneurial intentions. I uncover that the level of self-efficacy is significantly higher among the students in an emerging economy. However, no significant difference was observed in the reported levels of personal initiative in two contexts.     

A Gender‐Aware Study of Self‐Leadership Strategies among High‐Growth Entrepreneurs

We apply a gender‐aware framework to examine the self‐leadership strategies men and women early stage high‐growth entrepreneurs employ as they develop innovations. Utilizing a matched‐pair sample of early stage entrepreneurs operating firms in high‐technology business incubators, our results suggest that female and male entrepreneurs have significantly different self‐goal‐setting and self‐cueing behaviors. Results also suggest male entrepreneurs who use stronger goal‐setting behaviors increase their intellectual property development to a greater extent than female founders. Further, for female entrepreneurs who use greater self‐cueing, the negative relationship realized with intellectual property development is lower than for male entrepreneurs.