Journal of Business Venturing Insights

Print ISSN: 2352-6734
Publications
The COVID-19 pandemic that began in the United States in March of 2020 had a profound adverse effect on the economy. In particular, the pandemic had a harsh impact on women, minorities, and self-employed individuals. However, research on why the pandemic hit some groups harder is in its nascent stages. We contribute to the growing body of knowledge by comparatively analyzing the inability to work due to the pandemic in the wage and self-employment sectors. We utilize data from the Current Population Survey from May 2020 to May 2021 to investigate the effect of individual, business, and geographic characteristics on the probability of work interruption in each sector. We find that self-employers were much harder hit but fared better than wage workers in several of the harder-hit sectors and when they had incorporated businesses. We also find that women, non-Whites, and Hispanics were more adversely affected in both sectors.
 
With regards to the ongoing impact of the COVID-19 pandemic in the domain of entrepreneurship, we offer research-based evidence and associated insights focused on three perspectives (i.e., business planning, frugality, and emotional support) regarding entrepreneurial action under an exogenous shock. Beyond the initial emergency response that countries around the world have taken, we argue that it is time to revise entrepreneurial action guidance in such a context. Our aim is to highlight ways that entrepreneurs can take action in light of the current COVID-19 pandemic. We position our insights to be relevant to both researchers and practitioners coping with an unprecedented situation that has catastrophic consequences both economically and socially.
 
This paper illustrates how chronic uncertainty caused by crisis events affects the availability of entrepreneurial sources of finance for start-ups and small and medium-sized enterprises (SMEs). To explore this line of argument, this paper examines Crunchbase real-time data examining entrepreneurial finance investments in China during unfolding Covid-19 crisis. The paper shows that these equity investments slumped dramatically in the immediate aftermath of the Covid-19 virus, resulting in a year on year decrease of 60% in the total volume of investment raised between quarter 1 in 2019 and quarter 1 in 2020. Importantly, the paper found early-stage seed investments falling the steepest, suggesting nascent start-ups are those most heavily affected by the crisis. While the global financial crisis heavily hit debt markets, the relational nature of equity investments may mean entrepreneurial finance is even more susceptible to major upheaval caused by the Covid-19 crisis. Overall, enterprise policy makers need to become better attuned at monitoring real-time data sources to mitigate chronic entrepreneurial uncertainty via strategic policy responses.
 
The earnings of the self-employed are relatively low and volatile, a risk that exacerbated during the recent COVID-19 pandemic. Using three two-weeks-apart waves of data from the Understanding America Study, we show that relative to wage workers, the self-employed experience greater psychological distress through self-reported financial insecurity (the chance of running out of money). Using additional cross-sectional data from the COVID-19 Household Impact Survey, we show that the self-reported chance of job loss disproportionally impacts the psychological distress of the self-employed. Together, these results underscore that the economic uncertainties induced by the COVID-19 pandemic hit the self-employed particularly harsh by deteriorating short-term psychological distress. Moreover, our study is informative about the impact of income uncertainty on psychological distress.
 
What should researchers say when recruiting entrepreneurs to participate in their study? Using a sample of entrepreneurs (N = 1450) who were being asked to participate in an academic research project, we conducted an experiment to determine recruitment message efficacy. Drawing on best practices from the behavioral insights literature, we developed different email message recruitment statements that were randomly assigned across four phases of our experiment. Results indicate that a message grounded in the “descriptive norms” (i.e., social norms) approach resulted in the highest percentage of participants who clicked on the link to participate in our online survey. We discuss the theoretical as well as practical implications of our work.
 
Adopting an abductive approach, in this paper we use two studies to examine the relationships between financial worries and well-being amongst the self-employed during the time of the COVID-19 pandemic. In Study 1 of 4806 participants from the Understanding Society's COVID-19 survey of the UK population, we find that financial worries were associated with higher mental distress for self-employed when facing reduced work hours. In Study 2, in a sample of 1794 participants from the six-country COVID study, we find that higher than expected fall in income mediates the association between self-employment and happiness. The findings have implications for research regarding financial worries, distress, and well-being of the self-employed.
 
We investigate COVID-19 as a disabling and an enabling mechanism for small and mid-size enterprises (SMEs), particularly how SMEs’ crisis strategies might help them through the crisis. SMEs can follow a retrenchment strategy, a persevering strategy, or an innovation strategy, and they can do so narrowly or broadly. Using a representative sample of Danish SMEs, we test how crisis strategies are associated with turnover expectations. We find distinct differences in how effective crisis strategies are linked to turnover expectations, depending on how the crisis affected the SMEs in the first place (i.e., the SMEs were crisis victims, crisis immunes, or crisis exploiters).
 
The COVID-19 pandemic has caused hardship to both individuals and businesses. Aggregate data indicate large increases in unemployment and bankruptcy since the beginning of the pandemic, but it is unclear which individuals and businesses are the most vulnerable. With “work absence”, “wage employment” and “unemployment” as three competing risks or events, we study the relationships of owner characteristics to self-employment duration during the COVID-19 pandemic (January-December 2020) in the United States with data from 19,174 respondents to the Current Population Survey. We find that several owner characteristics relate significantly to self-employment duration during the COVID-19 pandemic. Specifically, young, female, and non-White self-employed individuals face a relatively high risk of unemployment. These and other findings have profound implications for policymakers.
 
A much debated issue in the discussion about COVID-19 state aid to firms is the extent to which these measures keep non-viable firms afloat. What are the characteristics of firms that receive aid and are they viable in the long term? Based on a survey of 1,151 firms in the Netherlands, mainly SMEs, we find that on average, government support goes to better-managed firms and to those with low turnover expectations and high turnover uncertainty. This suggests that COVID-19 state aid tends to go to firms that are most in need of it now and are more likely to be viable in the long term, as indicated by the quality of their management practices.
 
Honig and Samuelsson (2014) recently published an article in this outlet criticizing “Does business planning facilitate the development of new ventures? “a paper I wrote with Scott Shane nearly 15 years ago. They claim that their effort adds to the discussion of (a) the merits of business planning, (b) data replication and extension, (c) sample selection bias, (d) evaluation of normative research and (e) publication standards. However, most of the claims they make are incorrect.
 
In this editorial, we take stock of the Journal of Business Venturing Insights (JBVI) as it turns five years old. We reflect on the unique niche that JBVI fills in the realm of journals focused on research in entrepreneurship and highlight the papers that have gained the most traction within this short period. We reflect on the role that JBVI can play in the landscape of the entrepreneurship research and outline the types of papers that can drive the journal forward.
 
Most negotiations over startup valuation take place behind closed doors. As a result, we lack knowledge about how valuation is negotiated between entrepreneurs and investors. We constructed a dataset by hand to exploit the unique nature of a popular business pitch television show, ABC's Shark Tank, to examine this issue. Our descriptive findings suggest that entrepreneurs who initially offer less of their company to investors are more likely to receive investment offers. We also discovered that startup valuation negotiations tend to take place over the relative equity percentage each party receives rather than investment amount. Finally, although investors are more likely to experience negotiation gains, entrepreneurs who successfully pit sharks against each other receive deal terms closer to their initial ask. These results add to the emerging literature on dynamic process of startup valuation.
 
Universities have fully embraced academic entrepreneurship, transforming their structures, systems, and processes to generate licensing revenues and create new ventures. While prior research has mainly focused on the relationship between public policy and entrepreneurial activities, this study examines a major gap – the performance implications of regional politics on academic entrepreneurship. We use a unique data set of U.S. universities and their regional governments to test how the influence of two elements of a region's political climate – consensus and stability – affects entrepreneurial and commercial performance. Our results suggest that political consensus and stability are positively associated with higher licensing revenues, while political stability is negatively associated with new venture creation. Our results reveal how regional politics influence university commercial outcomes, which suggests that entrepreneurship-enhancing public policy is intimately linked to the regional political process. We discuss the implications for theory and practice, and suggest possible future research directions.
 
In recent years, a new phenomenon emerged in entrepreneurial ecosystems: the pre-acceleration program. Departing from the literature on the entrepreneurship support ecosystem, we define, describe, and compare the main characteristics of these programs. We define pre-accelerators as early-stage entrepreneurship support organizations which are highly structured and with strong educational content, of short duration (generally less than three months), and aim to support aspiring entrepreneurs in speeding the process of venture concept emergence through fast-paced interactions and problem-solution validation. Participants start with (or without) scattered ideas that change and evolve during the program. Most often they can enter individually, and teams are formed from interactions within the cohort.
 
In his recent commentary, Per Davidsson questions the potential of the actualization perspective of entrepreneurship to move the field forward. The actualization approach stresses that opportunities do not exist as actualized and empirically undiscovered entities, but as the profit propensities that may actualize when properly exploited. This worldview emphatically acknowledges an impenetrable region of “unknowable”: we cannot know where and when opportunities exist or whether they can be actualized by any given agent. Davidsson is, therefore, justified to doubt that the propensity conceptualization can facilitate the production of predictive knowledge involving the causal interaction between empirically tractable entities with events of “action” and “success”. However, Davidsson is unjustifiably concerned that this limitation hinders the scientific progress of entrepreneurship. This concern only reflects philosophical preoccupations of an empiricist nature, which ought to be uprooted for the study of entrepreneurship to progress along genuinely scientific pathways.
 
Access to credit is crucial for SMEs’ survival. However, due to the opaqueness of publicly available information on SMEs, banks face information asymmetry that can cause them to ration credit. In this case, trust has been shown to facilitate credit access by bridging the information gap. We contribute to the literature on trust-based banking by using new data to add robustness to extant results, and by discussing two important and still overlooked venues requiring further research. Using two waves of original survey data on 160 Finnish SMEs, our results support findings from prior studies by showing a robust positive relationship between trust and credit access (measured one year apart). We also find support for the hitherto assumed but not explicitly tested substitutability of trust and formal information: trust matters but only when formal information for assessing the SME’s creditworthiness is insufficient. We then identify a future research agenda by highlighting that we do not yet know how banks use qualitative factors such as trust to make lending decisions, nor whether the common implicit assumption of symmetric trust between borrower and lender is realistic. Finally, we discuss how these overlooked areas of research have important theoretical and practical applications.
 
Conceptualizing firm failure as the loss of something important to the entrepreneur, the literature on emotional responses to firm failure has focused on the negative emotions experienced in response to this loss. We shift emphasis to introduce the positively valanced emotions relief and exploration as emotional responses to firm failure. These emotions reflect the inherently stressful nature of firm failure enabling an exploration into the timing of when stress is experienced during the failure process. Empirically we test our hypotheses, using a combination of a telephone and mail survey, on a sample of 114 entrepreneurs who had recently experienced the bankruptcy of their firm. We extend the literature on responses to firm failure by establishing relief and exploration as common emotional responses to firm failure and provide initial empirical support for the importance of considering pre-failure experiences in the process of entrepreneurial failure. Our findings also lend empirical support to the anticipatory grief argument put forward by Shepherd and colleagues (2009).
 
This paper investigates the association of life satisfaction and self-employment experience. Using a large longitudinal dataset from the Understanding Society survey over the period 2009–2019, the paper examines how the allocation of time to wage- or self-employment affects individual life satisfaction. We argue that the typical dichotomous wage-employee/self-employed variable does not fully explain the association over time. Instead, when we measure self-employment experience over time, we identify significant variations. We examine the effects of self-employment experience on overall satisfaction and on a composite life satisfaction metric which combines the satisfaction with job, income, leisure, and health. We find that overall self-employment experience exhibits a positive effect on life satisfaction. However, we identify contrasting effects between the two life-satisfaction metrics in men and women. The results suggest the existence of effects above and beyond work related factors, which affect men and women differently.
 
For many digital ventures, acquiring financial resources in multiple rounds beyond seed funding to grow has become an important part of their entrepreneurial journey. The success rate of raising equity capital beyond their seed investments is, however, very low. Existing entrepreneurship studies on financial resource acquisition have explored separately how entrepreneurs organize their networks, establish venture legitimacy, and decide on funding sources. However, despite being identified as an important subprocess in new venture creation, little is known about why, when, and how entrepreneurs engage potential investors to increase the likelihood of post-seed investments. Hence, this paper synthesizes the literature on financial resource acquisition, theoretical concepts in entrepreneurial financing, and practice knowledge to frame a set of design principles to create a prescriptive process model to increase the likelihood of success in post-seed financial resource acquisition.
 
How should new venture ideas be framed in order to acquire human resources and gain support in times of crisis characterized by struggling or failing institutions and governmental organizations? To answer this question, we analyze 316 new venture ideas aimed at alleviating the COVID-19 crisis in 11 countries. We investigate different linguistic framing configurations and test their persuasive power for human resource acquisition. Our fuzzy-set qualitative comparative analysis (fsQCA) and linguistic analysis reveal that a “common enemy framing” is crucial for obtaining resources in crisis contexts. Non-profit venture ideas, specifically, may acquire resources via two additional paths: adding positive emotional content or using an entrepreneurial hustle framing with concrete calls to action. Our findings provide novel insights into entrepreneurial resource acquisition and idea framing during crises.
 
We explore how the readability of an investment document influences new venture screening evaluations. Based on two field studies across pitch competition and crowdfunding contexts, we find that documents of high and low readability receive more favorable screening evaluations compared with those of medium readability. Our post-hoc experiment illustrates how the effect of readability is mediated by entrepreneurial capability and idea complexity. It appears that highly readable documents are generally valued because they make it easy for investors to process information, whereas less readable documents may be preferred because investors perceive the entrepreneurs to possess greater capability.
 
While existing research has found that informal competition positively impacts product innovation by formal firms in developing and transitioning countries, there is a lack of understanding of how this decision to innovate varies between incumbents and new ventures. Through replication and extension of the work by McCann and Bahl (2017), the article primarily tries to address this significant gap by analyzing the differential impact of informal competition on product innovation decisions of incumbents and new ventures. Using data from the latest round of the World Bank Enterprise Surveys, 2019–2020, conducted across multiple transitioning and developing countries and logistic regression as the method of analysis, this study finds that (a) informal competition positively impacts the likelihood of product innovation by formal firms, confirming the results of McCann and Bahl (2017) and (b) new ventures are less likely to engage in product innovation than incumbents when competing with informal firms. The article contributes to the literature by trying to empirically resolve the friction between Attention-Based View of the firm and liability of newness. This paper argues that when facing informal competition, new ventures are less likely to respond through innovation compared to incumbents due to competing resource requirements that limit their attention towards competition from informal firms.
 
The rapid advancement of computationally complex machine learning systems, commonly known as artificial intelligence (AI), is the fruit of a decades-long effort to endow machines with cognitive capabilities that equal or even exceed those possessed by human actors. As the growing sophistication of AI algorithms revolutionizes entrepreneurial action in uncertain environments, these advancements raise an important set of questions for future theory-building in entrepreneurial action, creativity, and decision-making research. In this paper, we take up these critical questions by exploring how advancing AI systems provide novel solutions for resolving the fundamental challenges of modal uncertainty in entrepreneurial decision environments. And in doing so, AI algorithms create new possibilities for future forms of entrepreneurial action. We conclude the paper with a robust discussion of future research at the intersection of AI and entrepreneurship.
 
Health is one of the most important topics in society. By exploring issues related to health we can gain a deeper understanding of the critical antecedents and consequences of entrepreneurial action. Specifically, we take a psycho-social perspective on health and our knowledge of the entrepreneurship literature to begin a conversation about, and hopefully stimulate research on, how heath (of the entrepreneur and/or others) impacts entrepreneurial action and how entrepreneurial action creates (or diminishes) value (through the health of the entrepreneur and or others). We hope this article stimulates scholars' curiosity on one of society's most critical issues.
 
This study tests a situated metacognitive model of entrepreneurial action to highlight how action (or inaction) during the entrepreneurial process is influenced by both individual traits and one's metacognitive ability, namely one's strategic mindset. Integrating theory on resourcefulness and metacognition, we show how entrepreneurs who are more frugal tend to engage in less action in developing their new venture (i.e., enacting fewer innovative behaviors and putting forth less effort) as compared to less frugal entrepreneurs. However, we explain that this direct (negative) relationship is mediated by one's strategic mindset, such that the indirect effect of frugality on both innovative behavior and level of effort enacted towards one's new venture is positive (rather than negative). Overall, this study extends the construct of strategic mindset to the entrepreneurship literature and highlights the crucial role that metacognition can play regarding one's socio-cognitive decision-making process and subsequent entrepreneurial behaviors.
 
This article elaborates on a lively and rapidly evolving conversation central to entrepreneurship: the underpinnings of entrepreneurial action. In particular, we respond to a critique published in this journal by Brown, Packard, and Bylund (BPB), in which they argue that all EA is based on intendedly-rational judgment. The empirical reality of rational, deliberative intentionality in entrepreneurship is beyond dispute and we have argued that behavioral logics do not simply supplant intendedly-rational ones. However, mounting evidence suggests that the wide-spectrum framework developed by Lerner, Hunt and Dimov – ranging from impulse-driven, a-rational action to deeply deliberative, rational action – offers a more veridical and useful perspective. Although BPB's critique succeeds in underscoring the exciting challenges facing entrepreneurship scholars; in our view, the critique largely relies on philosophical argumentation and definitional boundary-setting that are inconsistent with decades of scientific advancement in the psychological sciences. Given this, and recent empirical evidence from entrepreneurship scholars, we think it would be counter-productive to consider entrepreneurship as the sole domain of human activity completely circumscribed by rational judgment.
 
In this exploratory study, we investigate how the actual and the perceived level of government bureaucracy correlates with nascent ventures' outcomes, a largely understudied topic in entrepreneurship literature. We use data merged (N = 922) from the U.S. Panel Study of Entrepreneurial Dynamics II (PSED II)—which tracked nascent startups over a six-year period—and the Economic Freedom of North America Index from the Fraser Institute. We find no relationship between state-level economic freedom and startups' outcomes and no relationship between the actual and the perceived government bureaucracy. Additionally, government is perceived as a major barrier by only 6% of entrepreneurs (of whom only 54% actually check government regulations), and 1% of entrepreneurs list regulations as the main reason for quitting the startup process. Overall, our results suggest that government and legal barriers are not significantly related to nascent startups’ outcomes and are not major barriers for entrepreneurs.
 
Passionate entrepreneurs often refer to their ventures as their babies; while we know that passion drives entrepreneurial action, research space is unclear about how entrepreneurial passion leads to addiction. This work takes a reductionist approach to explicate how entrepreneurial passion shifts to entrepreneurial addiction by discussing the pleasure-pain pathway that dopamine governs. Such an approach unravels how in a relentless pursuit of pleasure, an individual chases entrepreneurship because they are passionate about it but ends up being addicted to it. Besides contributing to entrepreneurship theory and practice, I discuss several future directions embedded in neuroentrepreneurship.
 
The purpose of this article is to derive a content adequate five-dimensional Entrepreneurial Orientation (EO) scale. Content adequacy is the most basic psychometric property that should be assessed of any measurement instrument. However, none of the few, extant five-dimensional EO scales have ever been assessed for content adequacy. Utilizing the methods developed by Schriesheim and colleagues, a two-stage study is undertaken first to explore and then confirm the content adequacy of a five-dimensional EO scale. The resultant scale shows excellent agreement with theory and would be instrumental in advancing research in the sparsely studied five-dimensional EO research domain.
 
Descriptive statistics of the independent and dependent variables by employment form.
Frequency chart of the categorical covariates by employment form.
Tests of effects of the models on the subjective quality-of-life measures.
Omnibus test results.
Results on the relationship between ADHD and entrepreneurial success are conflicting and several aspects of entrepreneurial success, especially on the personal level, have not been studied. By using a randomly selected Hungarian sample, the study examines the effects of subclinical ADHD symptomatology on the subjective quality-of-life outcomes in employment and entrepreneurship. The results indicate that subclinical ADHD impairs only entrepreneurs’ subjective income and harms entrepreneurs’ health perception to a larger extent than that of employees. Yet, the negative effects of ADHD symptomatology on life satisfaction are rather felt among employees. We argue that these results reflect a relatively good fit between entrepreneurship and subclinical ADHD symptomatology on the needs-supplies dimension but not on the demands-abilities dimension.
 
Research examining mental health and entrepreneurship has found important links between mental health and entrepreneurship. These findings have led scholars to suggest a fit between some aspects of mental health, and in particular, mental dysfunction, and entrepreneurship. This paper complements extant studies in this area by examining the mental health and entrepreneurship relationship from a sociocognitive perspective. We examine to what extent does ADHD influence entrepreneurial self-efficacy and opportunity recognition tendency. Our findings are consistent with our hypotheses, suggesting that people with ADHD may not be efficacious in the entrepreneurial context, and specifically in recognizing opportunities. However, confidence in one’s ability regarding the entrepreneurship vocation can grow with education and experience. Our findings allow us to advance theory and offer practical implications.
 
The entrepreneurship literature has suggested the criticality of replicating findings along with the potential for nuance when examining relationships within emerging market contexts. In this study, we seek to reproduce the findings of Yu et al. (2021) concerning entrepreneurial orientation (EO), attention-deficit/hyperactivity disorder (ADHD), and firm performance using a sample of Russian SMEs. We conduct a quasi-replication study, systematically changing the data, measures, and construct within our empirical models. The results of our study are partly in line with the original study's findings: we did not find a significant relationship between hyperactivity/impulsivity symptoms and EO. However, when we considered different sub-dimensions of EO (innovativeness, proactiveness, and risk-taking), managers with hyperactivity/impulsivity ADHD symptoms exhibited greater innovativeness, proactiveness, and risk-taking, while managers with inattention ADHD symptoms exhibited opposite effects. We discuss the extent to which the effects of ADHD on firm performance in developed economies, as mediated by EO, are generalizable within an emerging economy.
 
This replication study contributes to the lively debate about firm-specific growth paths of new firms. Utilizing rich German administrative panel data (i.e., 895,459 young firms that submitted a turnover tax preregistration form between 2001 and 2011), the study empirically revisits new firms’ growth paths as documented in the JBV Insights paper of Coad et al. (2015). In line with their results, the empirical findings of this study corroborate that (a) growth paths of young firms are erratic, meaning that such growth paths cannot be easily sorted into a meaningful taxonomy and (b) young firms rarely persistently experience comparably high growth in sales over time. In addition, an analysis of the characteristics of persistently growing firms suggests that these tend to invest more in their founding period and are typically founded in the manufacturing industry.
 
Is there an entrepreneurial personality, and does it appear early in life? We provide a new answer to this important question by examining traits related to Type A behavior (Aggression, Leadership, Responsibility, and Eagerness-Energy) measured during adolescence and their relationship to entrepreneurship propensity in adulthood. The results indicate that the early-life Leadership dimension is significantly associated with a higher likelihood of 1) becoming an entrepreneur and 2) being more successful as an entrepreneur, as approximated by sales.
 
Based on institutional theory, Lall (2017) established a social performance measurement (SPM) adoption model for nascent social enterprises and found that internal factors (measuring to improve) are influential, while external factors (measuring to prove) have limited or no effects on the probability of adopting SPM. This finding contradicts the predictions of institutional theory; external factors, such as legitimacy and isomorphism, should exert strong influences on nascent social enterprises’ behavior. Using the same dataset as that used in Lall’s (2017) study, we find the missing influence of external factors, i.e., equity and grant funding-related behavior. This study contributes to entrepreneurship research by 1) refining the institutional SPM adoption model, 2) demonstrating the need for a theoretical SPM adoption model, and 3) highlighting the importance of replication studies.
 
Entrepreneurs proactively envision and pursue change, embracing the potential destruction of the status quo to create value by solving meaningful problems. With that, entrepreneurs themselves are the very embodiment of heterodoxy: deviation from accepted or orthodox standards or beliefs. The tensions, paradoxes, and juxtapositions of ideas, people, and resources underpinning heterodox thinking can shed considerable light on the discovery, enactment, evaluation, and exploitation of the opportunities the entrepreneurs of today are pursuing. To achieve this, though, requires directly tackling the real-world heterodoxies entrepreneurs are currently grappling with and developing their ventures within. Advancing knowledge on these critical inputs to entrepreneurship, however, involves entrepreneurship scholars explicitly seeking out and probing what we call meaningful heterodoxies: the socio-cultural settings and/or potentially contentious phenomena entrepreneurs are immersed within that can be influential for generating novel and valuable ways of solving problems. As the “letters” of the field of entrepreneurship, the Journal of Business Venturing Insights is uniquely placed to tackle this. In this article, we introduce our new ongoing section and unpack several key contexts that we hope will guide submissions within the theme of meaningful heterodoxies.
 
While most networking research focuses on quantity and composition of contacts, this study explores factors underlying the advice and advisors most valued by small business owners. Owners (n = 528) were asked to indicate the formal and informal sources they had relied on for advice during the previous year and to identify which was most beneficial to them, what types of advice they received from their best advisor, and how they communicated. Length of ownership and founder status influenced what type of advisor was most valued by owners. Overall network breadth, owner demographics, and business characteristics were significantly associated with the nature of advice and support this preferred advisor provided, even after controlling for advisor type. Gender, age, and location predicted the extent to which owners communicated with their preferred advisor online, which affected the level of emotional support received. Results suggest the importance of studying the perceived quality of external business advice, and practical implications for facilitating soft support for small business owners.
 
Most of the previous literature examining health insurance and entrepreneurship focused on the effects of provisions of health insurance coverage on the decision to start or end self-employment. This paper takes a different approach and investigates the decision to purchase health insurance once self-employed. Using data from the US Federal Reserve Board’s 2016 Survey of Consumer Finances, we found that in 2016 (when full provisions of the Affordable Care Act were in place) the self-employed were less likely to be insured, especially females who in the general population are more likely to be insured. Compared to the general population, the odds of being covered by health insurance were 62% lower for self-employed males and 83% lower for self-employed females. Additionally, self-employed females were less likely to be insured when they reported using friends and family as a source of financial information.
 
Entrepreneurial parents can serve as sources of information and inspiration to transmit entrepreneurial intentions to their offspring. Yet we find that role modelling is not purely observational, but it requires social interactions between parents and children to take effect. Our results using more than 2,500 child-parent dyads from the German socio-economic panel show that only if the socialization intensity between self-employed parents and their child is high entrepreneurial intentions will be transmitted. The intergenerational transmission of entrepreneurial intentions is dependent on the socialization intensity of the parents. The opportunity to share experiences with the children influences children's forming of entrepreneurial attitudes especially within same-sex parent-child dyads.
 
We challenge the current, psychology-based model of affect’s influences on the entrepreneurial process (and some of its past empirical support). We review the current model and identify its limitations. We analyze the relevance of ’hope’ as a cognitive capability underlying the entrepreneurial process and assess why it has yet to be leveraged in our field. We then use hope and the recent studies on emotional control to argue a new, and more prescriptive model of the role of affect in entrepreneurial cognition and action.
 
Our study proposed a research model in which opportunity recognition mediates the relationships between the Dark Triad personality traits and entrepreneurial intentions, and locus of control moderates the influence of opportunity recognition on entrepreneurial intentions based on the theory of planned behavior. To test the model, we used data collected from a sample of 962 undergraduate students who were enrolled in nine Vietnamese universities. The results show that opportunity recognition mediates the effects of the Dark Triad traits, namely Machiavellianism, psychopathy, and narcissism, on entrepreneurial intentions. In addition, the influence of opportunity recognition on entrepreneurial intentions was positively moderated by internal locus of control and negatively moderated by external locus of control. Our results cast light on the mediation and moderation mechanisms of the relationships between Dark Triad traits and entrepreneurial intentions and provide empirical evidence supporting the theory of planned behavior. Furthermore, the study proposes implications for educators to motivate students’ intentions to start a business venture.
 
This study explores the affective turmoil experienced by nascent entrepreneurs during opportunity recognition and exploitation. Based on the affect circumplex model, we employed nonlinear methods to identify configurations of affect that emerge during these early stages of the entrepreneurial journey. We analyzed data from 50 nascent entrepreneurs using Artificial Neural Networks (ANNs) trained with twenty affect dimensions as input variables and opportunity recognition and opportunity exploitation as outcomes. Results show that nascent entrepreneurs experience different affect configurations during opportunity recognition and exploitation. While four configurations of affect emerged associated with opportunity recognition and exploitation, their nature and importance to the experienced event are significantly different. Specifically, “active screening” is the most important configuration of affect during opportunity recognition, while “vigilant” is the most important during opportunity exploitation. We posit that nonlinear methods can help to uncover the affective turmoil experienced by entrepreneurs during a particular event. These findings provide new insights on how affect associates differently with cognition during the early stages of entrepreneurship.
 
, Appendix II: Sales, skills and access to finance: OLS and quantile regressions, Low-skill sectors 9
Firm sales, skills and access to finance: OLS and quantile regressions, full sample
This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited.
 
Complementing recent studies supporting a variety of associations between self-employment and biological outcomes associated with stress, physical wear and tear, and aging, we examine the relationship between self-employment and aging. In a sample of 6088 participants from the National Health and Nutrition Examination Survey (NHANES) data, we find a small but meaningful negative association between self-employment and Klotho levels. Specifically, for self-employed, relative to the employed, the geometric mean of Klotho was lower by 2% or a 5.51% lower standard deviation from the mean Klotho levels in the sample. Our findings show that self-employment has a small but meaningful association with aging.
 
Whereas social entrepreneurship has been extensively studied, its antipode—antisocial entrepreneurship—is all but neglected in the literature. This article identifies and elucidates this glaring conceptual and research gap; it provides a conceptual foundation for making sense of antisocial entrepreneurship, demonstrating how it is distinct from related constructs such as illegal and destructive entrepreneurship; and it suggests an agenda for future research on antisocial entrepreneurship. Through studying antisocial entrepreneurship, a broader spectrum of entrepreneurial intentions, actions and outcomes becomes visible, potentially furthering our understanding, not only of antisocial entrepreneurship, but also of other, more commonly studied, facets of entrepreneurship.
 
This paper investigates entrepreneurs' satisfaction. We conceptually replicate and extend Carree and Verheul’s (2012) Dutch study on the drivers of entrepreneurs' satisfaction with data from Belgian entrepreneurs. Thus, we respond to the need to replicate more in the (social) sciences, including entrepreneurship studies. The ‘extension’ aspect contributes novel theoretical understanding and empirical explanatory power of entrepreneurs' satisfaction. Specifically, the paper introduces psychological flexibility as an important new predictor of entrepreneurs' satisfaction. Indeed, we provide evidence that entrepreneurs with greater psychological flexibility are, on average, more satisfied.
 
We challenge the obvious and easy association of enterprise and entrepreneurship. We do so by arguing that entrepreneurship is inherently social and collective, something that is concealed when held up as example of enterprising behaviour. We use as an illustrative case the Chinese artist Ai Weiwei, an example of entrepreneurship that has little to do with commerce and everything to do with the social nature of creativity. We conclude by equating entrepreneurship to generosity: a social production of possibility from which all opportunities and ventures emerge.
 
Top-cited authors
Andreas Kuckertz
  • University of Hohenheim
Elisabeth S.C. Berger
  • Johannes Kepler University Linz
Leif Brändle
  • University of Hohenheim
Sebastian Hinderer
  • University of Hohenheim
Alicia Prochotta
  • University of Hohenheim