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.     

Entrepreneurship and Innovation at the Base of the Pyramid: A Recipe for Inclusive Growth or Social Exclusion?

Policy makers often see entrepreneurship as a panacea for inclusive growth in underdeveloped ‘Base of the Pyramid’ (BOP) regions, but it may also lead to unanticipated negative outcomes such as crime and social exclusion. Our objective is to improve the understanding of how entrepreneurship policies can lead to socially inclusive growth at the BOP. Drawing on data collected from Brazilian tourism destinations with varying entrepreneurship, innovation, and social inclusion policies, we argue that weak institutions coupled with alert entrepreneurs encourage destructive outcomes, especially if entrepreneurship policies are based solely on economic indicators. Policies addressing both economic and social perspectives may foster more productive entrepreneurial outcomes, albeit at a more constrained economic pace. The study extends the related BOP, entrepreneurship, global value chain, and sustainable tourism literatures by examining the poor as entrepreneurs, the role of local innovation, and how entrepreneurship policies generate different social impacts within poor communities.     

Policies to support ethnic minority enterprise: the English experience

Using Global Entrepreneurship Monitor data for 29 countries this study investigates the (differential) impact of several factors on female and male entrepreneurship at the country level. These factors are derived from three streams of literature, including that on entrepreneurship in general, on female labour force participation and on female entrepreneurship. The paper deals with the methodological aspects of investigating (female) entrepreneurship by distinguishing between two measures of female entrepreneurship: the number of female entrepreneurs and the share of women in the total number of entrepreneurs. The first measure is used to investigate whether variables have an impact on entrepreneurship in general (influencing both the number of female and male entrepreneurs). The second measure is used to investigate whether factors have a differential relative impact on female and male entrepreneurship, i.e. whether they influence the diversity or gender composition of entrepreneurship. Findings indicate that – by and large – female and male entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors (e.g. unemployment, life satisfaction) we find a differential impact on female and male entrepreneurship. The present study also shows that the factors influencing the number of female entrepreneurs may be different from those influencing the share of female entrepreneurs. In this light it is important that governments are aware of what they want to accomplish (i.e. do they want to stimulate the number of female entrepreneurs or the gender composition of entrepreneurship) to be able to select appropriate policy measures.     

A City Divided by Political Philosophies: Residential Development in a Bi-Provincial City in Canada

This paper examines the impact of two distinct political ideologies on the development of residential dwellings, particularly single-family residences, in Lloydminster, a bi-provincial city in Canada. Lloydminster is a city of about 22,000 which straddles the provinces of Alberta and Saskatchewan. The two provinces are recognized for the dissimilarities in their political orientations. These dissimilarities are reflected in different taxation policies, different Medicare and health insurance policies and different auto insurance policies, which have given rise to a quantitative and qualitative split in the market for single-family residences in Lloydminster. This duality of the housing market is manifested in Saskatchewan's "affordability" and Alberta's "desirability." Alberta's tax policies have attracted "place entrepreneurs" to build upscale residences on its side for homeowners in high income brackets, who benefit from its tax policies. Saskatchewan's health care and auto insurance advantages have attracted those with such priorities and with moderate incomes. It is contended here that while distinct policies may have contributed to an uneven bi-provincial housing market, the disparity between the markets has been sustained and reinforced by all players who construct the housing reality through myths and perceptions as well as interpretations of policies and their underlying ideologies.     

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.     

Entrepreneurship and market size. The case of young college graduates in Italy

We analyse empirically the effects of urbanization on Italian college graduates' work possibilities as entrepreneurs three years after graduation. We find that doubling the province of work's population density reduces the chances of being an entrepreneur by 2–3 percentage points. This result holds after controlling for regional fixed effects and is robust to instrumenting urbanization. Provinces' competition, urban amenities and dis-amenities, cost of labour, earning differentials between employees and self-employed workers, unemployment rates and value added per capita account for more than half of the negative urbanization penalty. Our result cannot be entirely explained by the presence of negative differentials in returns to entrepreneurship between the most and the least densely populated areas. In fact, as long as they succeed in entering the most densely populated markets, young entrepreneurs are able to reap-off the benefits of urbanization externalities: the elasticity of entrepreneurs' net monthly earnings with respect to population density is 0.02–0.03.     

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.     

Innovative outcomes from migrant entrepreneurship: a matter of whether you think you can,or think you can’t

The entrepreneurship literature has exposed some of the most influential antecedents of innovative entrepreneurship. Prior research has also identified crucial features of migrant entrepreneurship. This article employs lessons from these two areas and draws on social cognitive theory to explore the main drivers of innovative ventures among migrants. We center the attention on entrepreneurs, differentiating them between two management strategies: imitation or innovation; and we study the role of perceived self-efficacy, prior entrepreneurial experience, and social capital into the likelihood of acting innovative. For our empirical analysis, we primarily use data from the Global Entrepreneurship Monitor for three years covering 2016–2018 and gathering 5713 observations of early-stage entrepreneurs from Chile. Our estimations show that being a migrant is in itself an insufficient condition to influence seeking substantial differentiation from what is traditionally offered in the local market; instead, we confirm that a migrant who feels capable of successfully starting a business will be likely to conduct innovative entrepreneurship. Contributions of these findings for theoretical and practical advances of the field are discussed.

     

Creating opportunities. Policies aimed at increasing openings for immigrant entrepreneurs in the Netherlands

Since the 1980s, subsequent Dutch governments have promoted self-employment of immigrants to reduce their unemployment rates. These policies have been focused on the (potential) actors themselves, i.e. the immigrants who have started or who may want to start a business. Taking mixed embeddedness as a point of departure, entrepreneurship and self-employment cannot be solely understood by focusing on the micro-level but has to include the larger macro and meso structures that impact on these actors' choices. In this paper, therefore, the focus is on the opportunity structure and on the policies that affect this set of options for starting a (small) business. A typology of policies that may alter this opportunity structure is offered.     

Glorified Fantasies and Masterpieces of Deception on Importing Las Vegas into the ‘New South Africa’

With the end of apartheid, Johannesburg and other South African cities are now part of a new global race to become ‘world‐class’ tourist and business centers. At the center of this development is the importation of Vegas‐style spectacle by local entrepreneurs, firms and other city boosters who create fantasyscapes such as the Emperor's Palace and GrandWest. Financed and run by South African impresarios — whose luxurious empires transcend the continent — these resorts represent not only the globalization of gaming but the way in which South African cities see themselves within the worldwide urban hierarchy. As such, this article seeks to untangle the global and local aspects of importing fantasy into the ‘new South Africa’.     

Book review of Economic Geography of Higher Education: Knowledge Infrastructure and Learning Regions. Edited by ROEL RUTTEN,FRANS BOEKEMA and ELSA KUIJPERS (London: Routledge, 2003). [Pp. 258]

This paper focuses on the growing aspect of entrepreneurship associated with lifestyle-induced migration from wealthy countries, through investigating self-employment among expatriates from northern Europe in rural areas of southern France and Spain. Most expatriates had no prior experience of entrepreneurship and typically established their business opportunistically and some time after arrival. Based upon interviews with 41 expatriate households (operating 70 business ventures), the study explores the characteristics of the individuals involved, the nature of their businesses, factors influencing start-up, and processes and patterns of business development. Self-employment is shown to be the most effective available mechanism for supporting lifestyle objectives of expatriates who vary greatly in their skills, experience and resources. The study identifies significant differences between the respective groups from the two countries, reflecting the spatially differentiated character of migration in terms of age, education, qualifications and capital resources. These appear to have given rise to a more sophisticated profile of businesses in the French areas. Sharp differences in language skills as between the different countries are seen as influencing the ability of entrepreneurs to network with, and market to, the indigenous population, with implications for the future development of the businesses, and their local impact. The study seeks to augment standard conceptual approaches to entrepreneurship, through taking account of the primacy of the migration decision and specific related processes, and proposes a model that advances our understanding of the phenomenon.     

Should We Require Every New Venture to Be a Hybrid Organization?

Critics of entrepreneurial capitalism have argued that entrepreneurship creates dysfunction in individuals, families, communities, and society because entrepreneurs neglect social and environmental dimensions of value in favour of financial value creation. By way of contrast, hybrid organizations, such as Benefit Corporations, are created explicitly to address social and environmental objectives in addition to their financial objective. Therefore, in this paper we explore the consequences of a world of blended value in which every new venture is required to be a hybrid organization. In doing so, we reveal the boundary conditions of current social criticism levied against entrepreneurship and suggest that blended value may best be relegated to the role of ideal or guideline as opposed to normative or legal obligation.     

Is there an S in urban housing supply? or What on earth happened in Detroit?

This article examines the substantial housing stock declines between 2000 and 2010 in many major US central cities. It updates an analysis first formulated in the 1970s, of an S-shaped housing supply curve, to explain decreases in absolute housing stocks. Explanatory variables include Metropolitan Statistical Area standardized rents, center city prior occupancy rates, regional unemployment rates, and a set of regional and state dummy variables. The analysis provides strong evidence of a lower tail of the S, and more tentative evidence of an upper tail. Market fundamentals explain a considerable portion of the large housing stock losses, but in several cities loss of dwelling units and housing abandonment were worse than could be explained by the fundamentals.     

Guest editorial: Female and ethnic minority entrepreneurship

There has been an increasing level of interest in diversity in small business enterprises. This diversity has been largely focused on female and ethnic minority entrepreneurs. Although there is evidence that female entrepreneurship can have a positive impact on economic prosperity, levels of earnings remain low. The articles in this special issue further our understanding of female and minority entrepreneurs. They examine important topics such as the differences between male and female entrepreneurs in terms of confidence, growth expectations, entrepreneurial orientation and social capital, developing management skills in female entrepreneurs, their management competencies and refugee entrepreneurship.     

Breaking With Neoliberalization by Restricting The Housing Market: Novel Urban Policies and the Case of Hamburg

Hamburg currently exemplifies the departure from a straightforward neoliberal urban track. The city's neoliberal path only moved into full swing in the first decade of the 2000s. During this period, urban development was primarily subject to property market mechanisms—with projects being granted to the highest bidder—prompting effects such as rapidly rising rents, deepened social segregation and increased property‐led displacement. Since 2009, however, the city's entrepreneurial urban policy encountered comprehensive resistance movements that eventually led to the rediscovery of a political will for a new housing policy and interventionist policy instruments. This article focuses on the turning point of neoliberal policies and examines the wider scope of the contemporary urban agenda in Hamburg. We first conceptualize potential limits of the neoliberal city in general and then discuss three momentous local policy experiments—the International Building Exhibition, promising ‘improvement without displacement'; the rediscovery of housing regulations through the ‘Social Preservation Statute'; and the ‘Alliance for Housing', aiming to tackle the housing shortage. We discuss these approaches as funding, regulation, and actor‐based approaches to limiting the neoliberal city.     

Opportunity identification for sustainable entrepreneurship: Exploring the interplay of individual and context level factors in India

Sustainable entrepreneurship is becoming an increasingly established topic within the entrepreneurship literature. The phenomenon of businesses incorporating social and environmental agendas within their core activities has gathered an increasing academic interest. However, few empirical studies have explored the stage of opportunity identification in the sustainable entrepreneurship process in a more systematic manner, even more so in non-Western contexts such as India. We structure our analysis using a framework situated in the conventional entrepreneurship literature and the literature on National Business Systems (NBS). We conduct a qualitative study to explore the motivations of Indian sustainable entrepreneurs in two sectors: sustainable energy and ethical clothing. While we find that the conventional entrepreneurship based framework provides crucial insights to understand opportunity identification within sustainable entrepreneurship, we also observe a number of features unique to sustainable entrepreneurship in the Indian context—including the personal backgrounds of the participants as well as prioritization of motivational factors. Importantly, we find notable within-country variation in the contextual factors that appear to shape motivational dynamics. In the words of one participant, “there are many Indias” rather than one monolithic approach to sustainable entrepreneurship in India.     

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.     

Evaluating the impacts of government policy through the long view of life history

The research reported in this paper uses life history analyses of Indigenous entrepreneurs to address the following question: How do individuals engaged in entrepreneuring incorporate their experience of government policy into their self-narratives, and what affects are apparent on attitudes towards, and the objectives of, their entrepreneurial activity? Subsequently, the paper makes two contributions to conceptual debates within entrepreneurship and small business studies. Firstly, the paper shows the value of life history methodology narratives in providing insights into entrepreneuring processes over time, particularly in understanding how to evaluate the impact of enterprise animation policies. Secondly, the particular focus upon Indigenous entrepreneurs affords some purchase on recent debates relating to the purpose and potential of enterprise policies aimed at those defined as socially and economically excluded [Blackburn, R., and M. Ram. 2006. Fix of fixation? The contributions and limitations of entrepreneurship and small firms to combating social exclusion. Entrepreneurship & Regional Development 18, no. 1: 73–89]. The paper's findings show that life history analysis has an important role to play in developing our understanding of entrepreneurship as a process. Moreover, evaluations of enterprise policy should pay more attention to temporally extensive impacts on individuals over their life course, and not limit evaluative efforts to programme specific factors.     

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.     

The end of the Ghent system as trade union recruitment machinery?

During the past 15 years, membership rates in many unions have been declining in Denmark, Finland and Sweden. Reasons for this decline may be similar to what has happened in other countries—occupational change and neoliberal ideology and policies—but in the three Ghent countries, changes in the unemployment insurance system may also have affected trade union membership losses. The major part of the decline has taken place in a period of low unemployment, which may have reduced the employee incentive to take unemployment insurance, but will increasing unemployment rates mean more trade union members? At least for the LO‐ and SAK‐affiliated trade unions, it seems that trade union independent unemployment funds may be alternatives for workers who take unemployment insurance.