Being pro-environmentally oriented SMEs: Understanding the entrepreneur's explicit and implicit power motives

The increased number of environmental problems caused by business activities put higher pressures on entrepreneurs to implement pro-environmental policies within their businesses. However, studies show that SMEs are less engaged with sustainable and pro-environmental policies. Hence, it is important to understand the barriers and drivers of implementing a pro-environmental strategy in SMEs from an entrepreneur's perspective. In a study with Indonesian SME owners, we find that environmental sustainability orientation (ESO) is driven by an entrepreneur's explicit and implicit power motives. Using polynomial regression with surface analysis, we also reveal that a high level of SME's ESO is affected by power motive discrepancy. We discuss implementations for policymakers, entrepreneurs, and educational programs in entrepreneurship.     

Rural entrepreneurs and institutional assistance: an empirical study from mountainous Italy

Despite the recognition of entrepreneurship as one of the main determinants of rural economic development, empirical research in this field is relatively sparse. Thus, there is little evidence on the role and function of rural entrepreneurs, the driving force behind the birth, survival and growth of rural enterprises. The present work aims at providing a contribution to filling this gap in knowledge. We present and analyse the results emerging from a questionnaire submitted to a sample of 123 rural entrepreneurs and businesses in a mountainous area of central Italy. In particular, we test for six hypotheses concerning the correlation between different factors, reflecting entrepreneur and business-specific characteristics, and the adoption of instruments of institutional assistance. Entrepreneur's and business's variables are related to (1) entrepreneurial human capital; (2) entrepreneur's local knowledge and social capital; (3) firm's size; (4) entrepreneur's age; (5) firm's age; and (6) busines's sector of activity. Empirical results largely support the importance of variables taken into consideration in explaining differences in the adoption of institutional assistance among businesses of the sample. In the light of our empirical findings, we also examine and propose potential policies for fostering entrepreneurship and the development of the rural region under study.     

Entrepreneurship and Firm Boundaries: The Theory of A Firm

abstract In this paper, we consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed. We start from the premise that while entrepreneurs believe themselves to have superior ideas in one or multiple parts of the value chain, they are characteristically short of cash, and of the ability to convince others to provide it. This premise motivates a simple model in which the entrepreneur has a value‐adding set of ideas for ‘upstream’ and ‘downstream’ parts of a value chain, as well as for the ways to make these two parts of the value chain work better when joined under unitary control. Assuming that the entrepreneur's objective is to maximize her wealth, we observe that even in the presence of transactional risks or other factors that might make integration preferable to specialization, initial scope depends also on relatively unexplored factors such as (a) how severe the entrepreneur's cash constraint is, and (b) how much value the entrepreneur's ideas add at each part of the value chain. Entrepreneurs will focus on the areas that provide the maximum profit yield per available cash – a criterion which implies that scope choices depend on cash availability and the depth of the demand for the new idea along the value chain. We also note that entrepreneurs make money not only from the operating profits of their firms, but also from the appreciation of the assets the firm has accumulated. This consideration can change the optimal choice of the firms’ boundaries, as entrepreneurs must be sensitive to choosing the segment that will enable them to benefit not only in terms of profit, but also in terms of asset appreciation. We propose that, in the entrepreneurial context especially, it is helpful to focus on the multiple considerations affecting the choice of boundaries for ‘a’ firm – the context faced by an individual entrepreneur – rather than on generic considerations affecting ‘the’ (representative) firm. Scope choices reflect the entrepreneur's own theory of ‘how to make money’.     

Entrepreneurship and survival dynamics of immigrants to the U.S. and their descendants

Many studies have explored the determinants of entering into entrepreneurship and the differences in self-employment rates across racial and ethnic groups. However, very little is known about the survival in entrepreneurship of immigrants to the U.S. and their descendants.We adopt a modeling framework based on duration analysis, which takes into account both the fact that the stock of entrepreneurs initially observed represents a selected sample and the inability of observing in the data the exit time for some spells. Unlike previous studies, we find a lower survival probability in entrepreneurship for Mexican and other Hispanic immigrants, which does not carry on to their U.S.-born descendants. We also find that these two immigrant groups tend to enter entrepreneurship from unemployment or inactivity and they are more likely to exit towards employment in the wage sector, suggesting that entrepreneurship represents for them an intermediate step from non-employment to paid employment.     

Networks vs. market methods in high-tech venture fundraising: the impact of institutional environment

This study examines how institutional environmental factors, including cultural norm, state regulatory system and venture capital market, influence the high-tech entrepreneur's choice for using network vs. market methods when approaching prospective investors at the early stage of their new venture creation. We collected comparative data through on-site interviews and questionnaire survey with 128 high-tech entrepreneurs in Singapore (a newly industrialised economy) and 250 in Beijing, China (an emerging economy). Our findings suggest that a culture emphasising the value of social obligation, the under-development of the legal/regulatory system and the immaturity of the venture capital market increased the proclivity of entrepreneurs to use network methods. Moreover, entrepreneurs who value networks higher in social obligation than in information transfer are more likely to choose personal ties instead of business ties. This study enhances our understanding of how high-tech entrepreneurs in emerging economies choose between networks and market methods in venture fundraising, and offers suggestions on how public policy makers in these economies can improve the institutional environment of their regions to promote high-tech new venture creation.     

If You Are So Smart,Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees

How valuable are cognitive and social abilities for entrepreneurs’ relative to employees’ earnings? We answer three questions: (1) To what extent does a composite measure of ability affect an entrepreneur's earnings relative to wages earned by employees? (2) Do different cognitive abilities (e.g., math ability, language, or verbal ability) and social ability affect earnings of entrepreneurs and employees differently?, and (3) Does the balance in these measured ability levels affect an individual's earnings? Our (difference‐of‐difference) estimates of the returns to ability for spells in entrepreneurship versus wage employment account for selectivity into entrepreneurial positions insofar as they are determined by fixed individual characteristics. Our robust results provide the following answers to the three questions: General ability has a stronger impact on entrepreneurial incomes than on wages. Moreover, entrepreneurs and employees benefit from different sets of specific abilities: verbal and clerical abilities have a stronger impact on wages, whereas mathematical, social, and technical ability are more valuable for entrepreneurs. The balance in the various kinds of ability also generates a higher income, but only for entrepreneurs: This finding supports Lazear's Jack‐of‐all‐Trades theory.     

Desperate entrepreneurs: no opportunities,no skills

Promoting entrepreneurship has become an important policy strategy in Europe in the hope to stimulate the crisis-shaken economy. In this paper, we caution against undue expectations. Using data from the Global Entrepreneurship Monitor for 17 European countries, we find that a considerable proportion of the new entrepreneurs have started a business despite a negative perception of business opportunities as well as lack of confidence in their own entrepreneurial skills. This proportion has increased during the economic crisis, especially in those countries which were particularly affected by economic downturn and rising unemployment. We extend existing entrepreneurship theories to account for this phenomenon, which we call “nons-entrepreneurship”. Testing the hypotheses derived from our model, we find that the primary motivation for these people to turn to entrepreneurship is the lack of other options to enter the labour market during the economic crisis. Still, this sort of “desperate” entrepreneurship does not equal necessity based entrepreneurship, warranting further research.     

Mutuality between selves and others in social entrepreneurship: Not a mission impossible?

The social entrepreneurship (SE) discourse habitually casts social entrepreneurs as heroic, creating economic and social value, whereas those whom they strive to assist are portrayed as disadvantaged and in need of interventions. This implies an implicit differentiation between knowing, agentic entrepreneurs and less-knowing, more passive beneficiaries. In this article, we seek to unfold the subtle ordering of relations in SE and problematize power-related aspects and ideological influences that potentially overshadow dimensions of mutuality and relationality inherent to SE. From an examination of two cases, we hypothesize that differentiations between knowing selves and learning others tend to disintegrate when entrepreneurs and beneficiaries enter into closer interaction. Adopting a postcolonial framework, we identify three forms of relations in SE: transactional, ambiguous/interactional and transcending.     

Can beneficial antecedents to self‐employment be detrimental to entrepreneurial performance?

We hypothesize that risk aversion, plasticity, stability, and locus of control have different effects on a person's decision to enter entrepreneurship and the person's entrepreneurial performance. Empirical results reveal that plasticity and risk tolerance have positive effects on selection but negative effects on income derived in entrepreneurship. Stability, on the other hand, deters entry but has an inversely u‐shaped relation with income. Locus of control has a positive impact on the decision but an insignificant effect on entrepreneurial income. These new insights may guide policy makers on how to help aspiring entrepreneurs overcome the negative effects of their personality traits.     

Entrepreneurship persistence with and without personnel: The role of human capital and previous unemployment

By considering entrepreneurs who hire employees (employers) and entrepreneurs without personnel (own-account workers) as related but distinct entrepreneurship groups, this work analyses factors in entrepreneurship survival from a new perspective: we contrast the determinants of employers’ survival with those affecting own-account workers’ survival. Discrete choice models under competing risks frameworks are applied to data drawn from the European Community Household Panel for the EU-15 (EUROSTAT). Our results suggest that survival chances are markedly higher for employers than for own-account workers—especially when non-employment exits are considered. We also observe that high qualifications have positive and statistically significant effects on survival rates of employers, regardless of exit routes, while high qualifications have no significant effect on survival rates of own-account workers. Finally, we find that entering entrepreneurship from unemployment—the target group for entrepreneurship incentives—strongly increases the probability of re-entering unemployment for both entrepreneurship groups. Thus, entrepreneurship and higher education policies should be considered together to develop high quality entrepreneurial businesses.     

一心创业,一路坚持:青年创业者创业韧性影响因素的扎根研究

近年来,国家不断部署深入推进"大众创业、万众创新",重点支持高校毕业生等青年群体就业创业。然而,创业是一项高风险活动,我国青年创业平均成功率仅有约2%。创业韧性有助于青年创业者在创业过程中应对各种困难和挑战,从而获取创业成功。尽管如此,"青年创业者的创业韧性如何产生,受哪些因素影响,其形成机理是什么"这一问题还少有考察。本研究以我国青年创业的主力军大学生创业者为研究对象,运用扎根理论方法 ,通过对30个青年创业大学生的深度访谈,构建出"重大事件激活—动机形成—动态能力形成"的理论模型,包括重大事件等13个子范畴以及创业期望的形成等7个主范畴,并运用事件系统理论、自我差异理论、社会转型理论和场理论分析形成此模式的深层次原因。在此基础上探讨促使其增强创业韧性行为的外部干预措施,研究结论对发展创新创业教育的理论和实践都有一定的促进作用。     

‘Recession push’ and ‘prosperity pull’ entrepreneurship in a rural developing context

In this paper, the ‘recession push’ and the ‘prosperity pull’ hypotheses are used to analyse the effect of growing non-farm wage employment on entrepreneurship in a rural developing context. Data are collected in a rural household survey in 110 communes in central Vietnam which includes subjective owner assessments of reasons for starting non-farm businesses. This way it is possible to separately test the two hypotheses by distinguishing opportunity and necessity entrepreneurs. We use clustered probit regression analyses and control for possible endogeneity in order to predict participation in entrepreneurship. The results show that better access to non-farm wage employment increases the likelihood of becoming an opportunity entrepreneur but has no effect on necessity entrepreneurship. This, therefore, supports the ‘prosperity pull’ hypothesis but not the ‘recession push’ hypothesis. The growing non-farm economy is likely to accelerate the emergence of opportunity entrepreneurship in rural areas. However, necessity entrepreneurs are suffering from a lack of individual and household assets which pushes them into entrepreneurship regardless of non-farm job opportunities in the surrounding area.     

Challenges for spatially oriented entrepreneurship research

During the past two decades, interdisciplinary oriented entrepreneurship research focused increasingly on spatial aspects of entrepreneurial activities and support policies. This paper takes stock of central themes in entrepreneurship research at and across different geographic scales, the preferred sources of data and information as well as methodological approaches. It sets out to discuss the shifting interest of research over time and to sketch out theoretical and methodological challenges for further research. This paper is based on a review of 18 international journals in small business and entrepreneurship research, economic geography, regional economics and neighbouring sciences for the period 1990–2007. Altogether, 348 relevant articles were identified, read and classified. The analysis reveals that the entrepreneur's socio-spatial contexts in which they operate on a daily basis are still absent from much of the entrepreneurship debate. We suggest intensifying research efforts on the linkage between entrepreneurial activities and localities in order to reach a better understanding of the everydayness of entrepreneurship.     

Investment timing decisions under threat of potential competition: Why firm size matters

We study the value of the option to wait when other firms are looking at similar opportunities and may enter while one firm is waiting for uncertainty resolution. There are two important results. First the value of an investment project is affected by a firm’s assets-in-place, giving some firms a comparative advantage in competitive situations. Second, when two firms with different sized assets-in-place are looking at similar investment decisions, in the unique sub-game perfect equilibrium, the smaller firm invests earlier and also exits before a competing firm with larger assets-in-place. This makes an otherwise identical investment more valuable for the smaller firm. The larger firm optimally foregoes first-mover advantage because of higher expected exit costs.     

Hong Kong's entrepreneurship: behaviours and determinants

It is widely known that Hong Kong's economic success is to a large extent attributed to its dynamic entrepreneurs. However, economic studies on Hong Kong's style of entrepreneurship are few. This paper attempts to throw light on this issue. It argues that Hong Kong is an entrepreneurial society. A unique feature of Hong Kong's style of entrepreneurship lies in its ability to conduct ordinary, rather than extraordinary, discovery. Through the use of guerrilla business strategy, imitation and regional arbitrageurship, entrepreneurial firms in Hong Kong are able to exploit narrow profit margins and to survive global competition. Moreover, the cultural, economic and political environments of Hong Kong are found to be favourable in incubating adaptive entrepreneurship. This paper concludes that, although Hong Kong's style of entrepreneurship emerges out of its unique environments, Hong Kong's experience can be useful to other developing economies. The critical issue is whether latecomer countries can successfully develop adaptive entrepreneurship compatible with their backgrounds so as to exploit international market opportunities.     

Embedded entrepreneurs and post-disaster community recovery

Entrepreneurs can and do play an important role in promoting community recovery after disasters. Research, however, has not adequately explored the behavior and practices of post-disaster entrepreneurs or acknowledged the role of entrepreneurs in overall disaster recovery. We attempt to fill this gap by highlighting the behavior and practices of entrepreneurs who contribute to recovery, specifically, we argue that post-disaster entrepreneurs: (a) supply needed resources to disaster victims, (b) leverage social capital to navigate extreme uncertainty, (c) are motivated by high place attachment, and (d) exhibit both commercial and social goals. They are able to successfully perform these functions because of the embedded nature of entrepreneurship. We offer evidence based on fieldwork conducted in New Orleans, Louisiana, following Hurricane Katrina and following the tornadoes in Tuscaloosa, Alabama, and Joplin, Missouri.     

Entrepreneurship,innovation and economic growth

The linkages among entrepreneurship, creativity, innovation and economic growth are only vaguely understood presently. This paper is an attempt to improve that understanding. The first step in establishing the linkages requires the formulation of knowledge about the psychological make-up of entrepreneurs. These questions are pertinent: What motivates humans to become entrepreneurs? Are entrepreneurs “rational economic men”? How important are monetary rewards to entrepreneurial creativity ? The second step requires information about how the human brain functions. The brain is bi-hemispheric and both sides of the brain play an important role in human decision-making. Nevertheless, we have a cultural bias in favor of the functions performed by the brain's left side. The third step requires an understanding of the process of creation and innovation. Several stages in this process have been identified. The stages of preparation, incubation, and illumination involve the brain's right hemisphere while the verification stage involves the left hemisphere. The final step integrates the first three. We assume that entrepreneurship is an essential determinant of economic growth, that the entrepreneurial function involves creation and innovation, and that entrepreneurship can be taught. This article is intended to provoke thinking and research incorporating new insights from several disciplines. These insights appear to bear more on entrepreneurship than is generally acknowledged.     

When an initiative promises more than it delivers: a multi-actor perspective of rural entrepreneurship difficulties and failure in Thailand

National governments invest in initiatives aimed at encouraging rural entrepreneurship on the assumption that it contributes to competitiveness and employment. Empirical findings about one such initiative in Thailand reveal the nature of entrepreneurship difficulties and the diverse expressions of entrepreneurship failure, not only in the sense of termination of activities and exit but also entrepreneurs’ inability to meet the objectives and aims of the initiative. Significant attitudinal inadequacies such as risk aversion, passivity and over-reliance on the public sector complement entrepreneurship resource weaknesses in explaining rural entrepreneurship difficulties and failure. Findings demonstrate inadequacies of one-size-fits-all policies seeking to encourage rural entrepreneurship by failing to address the needs and capabilities of the involved entrepreneurs. The discussion also extends current research, first, by studying rural entrepreneurship within an institutional framework in an emerging market context; second, by conceptualizing rural entrepreneurship failure and attitudinal drivers of such failure; third, by documenting and analysing the nature, sources and consequences of the distinct constructs of ‘rural entrepreneurship difficulties’ and ‘rural entrepreneurship failure’; and finally, by presenting a revised theorization of ‘failure’ in entrepreneurship research which recognizes the diverse forms that failure may assume.     

Toward a sustainable conceptualization of dependent variables in entrepreneurship research

Entrepreneurship researchers have yet to explore the full range variance that occurs in entrepreneurial value creation because we have focused almost exclusively on financial performance as the dependent variable in our research. However, such arbitrary narrowness is not supported by research, which shows entrepreneurs to not focus exclusively on income maximization. Consistent with calls for an expanded view of the consequences of entrepreneurship, we develop a typology of entrepreneurship dependent variables that supports broadening the scope of entrepreneurship research to include economic, environmental and social value. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Reciprocated community support and small town - small business success

This paper presents an empirical test of the significance of reciprocated community support, in contrast with traditional economic factors and unilateral support, in the success of small businesses in small towns. The central hypothesis is that entrepreneurs who make non-market contributions to their community and whose community supports them, are more likely to consider their businesses to be successful. Logistic regression is used to analyse survey data from over 800 small businesses in 30 small towns of the state of Iowa (USA). The authors found that the interaction effect of an entrepreneur's service to the community, reciprocated by community support of the business, is the single most significant determinant of business success among dozens of indicators and characteristics of the respondent, the business, and the small towns in the sample. In addition, it was found that business people who feel successful expect to expand. These findings are relevant to rural development. The expansion of existing businesses is an important component of regional job growth.