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Abstract
'This ambitious book draws upon a wide variety of literature in developing a comprehensive theory of entrepreneurship, ranging from the discovery of entrepreneurial activities, to industry differences in entrepreneurial activity, to the organizing process. It represents a major contribution to the field.' - Arnold C. Cooper, Purdue University, US. 'Professor Scott Shane provides a deep and comprehensive discussion of the individual-opportunity nexus in entrepreneurship. Eschewing the usual approaches of either focusing exclusively on the individuals and their motivations and actions or focusing exclusively, almost always ex-post, on the economic potential of opportunities, Scott Shane fixes his gaze squarely on the nexus of the individual and the opportunity. It is this nexus that I believe is the building block for a better understanding of the entrepreneurial phenomenon.' - From the foreword by Sankaran Venkataraman. In the first exhaustive treatment of the field in 20 years, Scott Shane extends the analysis of entrepreneurship by offering an overarching conceptual framework that explains the different parts of the entrepreneurial process - the opportunities, the people who pursue them, the skills and strategies used to organize and exploit opportunities, and the environmental conditions favorable to them - in a coherent way.
... Entrepreneurial orientation is a process, practice, and decision-making activities that lead to new entry (Wang, 2008). According to the theory of entrepreneurship, entrepreneurial orientation is the capacity of the entrepreneur to identify and capture opportunities associated with entrepreneurial performance (Shane, 2003). Entrepreneurial orientation provides up-to-date knowledge that helps exploit new and innovative market opportunities (Li et al., 2009). ...
... This study successfully confirms the effect of entrepreneurial goals and motives on women entrepreneur performance. This result aligns with most of the previous research, which shows that entrepreneur motivation is a critical determinant of business growth (Shane, 2003). The relationship between motivation and performance in women entrepreneurs is an important issue regardless of whether female or male entrepreneurs, but whether the initial motivation to start their business affects business performance (Rosmiati, 2015). ...
... This research is in line with previous research (Sanjaghi et al., 2013;Yonggui Wang & Zhang, 2008) that have concluded that opportunities recognition enhances performance in women entrepreneur. The results of this study are by the theory of entrepreneurship from Shane (2003), which explains that the business environment includes activities that lead to entrepreneurial opportunities and entrepreneurs' decisions to exploit opportunities that lead to the acquisition of resources and improve performance (Shane, 2003). When women entrepreneurs recognize new opportunities, they can develop new products or services that meet unmet market needs. ...
Women entrepreneurs in Indonesia significantly contribute in national economy. Traditionally, Indonesian society has a tradition of believing that women have more responsibility for the household. This study investigates the effect of entrepreneurial orientation and entrepreneurial goals and motives on woman entrepreneur performance through opportunity recognition. Respondents in this study are 220 women entrepreneurs in from several provinces in Indonesia. This study chose the Partial Least Square-based Structural Equation (PLS-SEM) model technique to analyze the data. This study successfully confirmed the influence of entrepreneurial orientation on opportunity recognition in women entrepreneurs. However, the researcher could not show the effect of entrepreneurial goals and motives on opportunity recognition in women entrepreneurs. Furthermore, entrepreneurial orientation, entrepreneurial goals and motives, and opportunity recognition significantly influence women entrepreneur performance.
... We employ imprinting theory as our overarching framework to develop a model that explains how military experience can reduce entrepreneurial tendencies (Marquis & Tilcsik, 2013;Stinchcombe, 2000). While military service imparts valuable skills such as leadership and discipline (Bartone et al., 2008;Wong et al., 2003), the hierarchical structure of the military-characterized by stringent rule adherence, suppression of individualism, and a focus on executing predefined strategies-may constrain entrepreneurial behaviors, which often require flexibility, creativity, and a propensity for risk-taking and uncertainty (Cohen et al., 2021;Moskos, 1977;Shane, 2007;Siebold, 2001;Winslow, 1998). Thus, military service may instill a preference for stable environments, lower risk tolerance, and a diminished capacity for innovative thinking-factors often critical to entrepreneurship (Avrahami & Lerner, 2003;Diefenbach & Sillince, 2011;Jackson et al., 2012;Koch-Bayram & Wernicke, 2018;Shane, 2007). ...
... While military service imparts valuable skills such as leadership and discipline (Bartone et al., 2008;Wong et al., 2003), the hierarchical structure of the military-characterized by stringent rule adherence, suppression of individualism, and a focus on executing predefined strategies-may constrain entrepreneurial behaviors, which often require flexibility, creativity, and a propensity for risk-taking and uncertainty (Cohen et al., 2021;Moskos, 1977;Shane, 2007;Siebold, 2001;Winslow, 1998). Thus, military service may instill a preference for stable environments, lower risk tolerance, and a diminished capacity for innovative thinking-factors often critical to entrepreneurship (Avrahami & Lerner, 2003;Diefenbach & Sillince, 2011;Jackson et al., 2012;Koch-Bayram & Wernicke, 2018;Shane, 2007). ...
... Prolonged exposure to hierarchical structures can lead to the internalization of these structures, affecting decision-making processes and risk tolerance, making individuals more comfortable in environments with clear chains of command and well-defined roles (Diefenbach & Sillince, 2011). However, tolerance for ambiguity and risk-taking propensity are key traits for successful entrepreneurs (Shane, 2007). ...
Drawing on imprinting theory, this study hypothesizes that military experience negatively influences entrepreneurship by fostering a preference for stability, lower risk tolerance, and limited innovation due to the hierarchical and rule-bound nature of military service. It is further hypothesized that age moderates this relationship, as older veterans accumulate human and social capital over time, which mitigates the rigid impact of military service. Data from 14,046 households and 54,293 observations from the Panel Study of Income Dynamics (PSID) spanning 2011-2021 were analyzed to test the hypotheses. The results show that military experience reduces entrepreneurial tendencies, and age mitigates this negative effect. Theoretical and practical implications are discussed.
... Some researchers argue that entrepreneurship is a discipline that can be learned (Drucker, 1985); others focus on entrepreneurship education as "the process of providing individuals with the concepts and skills to recognize opportunities that others have overlooked, and to have the insight and self-esteem to act where others have hesitated" (McIntyre & Roche, 1999). Most of the contributions within the cluster explain that not everyone is likely to come across the same opportunities because there exists a difference in the prior distribution of knowledge information (Shane, 2003). Learning asymmetries exist and they have a strong effect on the ability of people to recognize new opportunities (Corbett, 2007). ...
... Some studies highlight that entrepreneurial intention is influenced by different factors that include: psychological factors (personality, extraversion, core self-evaluation, locus of control, cognitive characteristics (e.g. overconfidence) and also non-psychological factors (experience, age, social position and opportunity cost) (Shane, 2003). However, these characteristics are obviously valid, but not always sufficient, as they overlook the individuals' emotional preference for the entrepreneurial lifestyle which raises their alertness to opportunities (Khanin et al., 2022). ...
... Davidsson and Honig (2003);Unger et al. (2011);Shane et al. (2003);Kim et al. (2006);Gimeno et al. (1997) Entrepreneurial education to boost entrepreneurial opportunitiesBlueEckhardt & Shane(2003); Reynolds & Curtin (2008); Corbett (2007); Haynie et al. (2009); Gielnik et al. (2014). Educational model and methods to enhance entrepreneurial intention Green Souitaris et al. (2007); Bae et al. (2014); Krueger et al. (2000); Liñán and Chen (2009); Zhao et al. (2005) Universities in/for an entrepreneurial society Yellow Audretsch (2014); Åstebro et al. (2012); Guerrero and Urbano (2012); Perkmann et al. (2013); Siegel & Wright (2015). ...
In recent years, entrepreneurship education has attracted increasing interest among scholars, but current literature reviews often focus on specific micro or macro factors, neglecting an integrated perspective. This paper provides a comprehensive systematic literature review and bibliometric analysis of Entrepreneurship Education (EE), aiming to consolidate existing knowledge while identifying emerging trends. To address this gap, using advanced bibliometric tools, we were able to uncover key themes such as the role of human, cultural, and social capital, educational models, and the evolving function of universities in fostering entrepreneurship. Findings suggest a shift towards multidisciplinary approaches, integrating fields like psychology, ethics, and neuroscience, to enrich EE frameworks. By highlighting both established and emerging topics, this review offers actionable insights for reshaping EE to better equip future leaders with the competencies and resilience needed in an entrepreneurial society.
... These framework conditions have a direct impact on the resources available to the new venture, influencing how well the start-up venture is able to realize its full potential (Aldrich, 1999;Baum and Oliver, 1996;Hannan and Freeman, 1977). Relevant framework conditions in this category include human capital (Marvel et al., 2016;Shane, 2003;Unger et al., 2011), knowledge spillovers (Audretsch and Lehmann, 2005;Iftikhar et al., 2022;Qian et al., 2013); financial capital (Charfeddine and Zaouali, 2022); and inter-firm networks and policy support (Koo and Cho, 2011;Zhao et al., 2022). ...
... • Entrepreneurship process is a dynamic and complex system, ranging from individual decisions to institutional framework conditions (Shane and Venkataraman, 2000;Shane, 2003) • Business survival depends on the ability to get the necessary resources (Mintzberg et al., 1998) • New approach to entrepreneurship research (behavior, context, entrepreneurial outcome (Low and MacMillan, 1988) • Entrepreneurship is a socially embedded phenomenon (Aldrich and Zimmer, 1986) • The diversity of the environmental context determines the existence of various types of entrepreneurs (Vesper, 1980) National Innovation System (NIS) Lundvall (2007Lundvall ( , 2010Lundvall ( , 2016, Lundvall et al. (2002), Peters (2006), Rosenberg and Nelson (1994) • NIS literature emphasizes the role of institutions in fostering innovation ...
... Therefore, the SFCs must come together to help "co-produce" the system outcomes. SFCs are resourcerelated conditions directly affecting a country's entrepreneurial dynamics encompassing (1) Human capital (Marvel et al., 2016;Shane, 2003;Unger et al., 2011); (2) Knowledge creation and dissemination (Audretsch and Lehmann, 2005;Iftikhar et al., 2022;Qian et al., 2013); (3) Finance (Charfeddine and Zaouali, 2022); and (4) Networking and support (Koo and Cho, 2011;Zhao et al., 2022). As a third layer in our model, the digital framework conditions (DFCs) describe the general level of digitalization of the economy, as it affects entrepreneurial activity through its impact on general (GFCs) and systemic framework conditions (SFCs). ...
Purpose
Digitalization is changing the way entrepreneurs pursue opportunities. We have elaborated a conceptual framework to gain a better understanding of digital entrepreneurship. Using this framework, we have developed the Global Index of Digital Entrepreneurship Systems (GIDES), an analytical tool designed to measure and comprehend the impact of digitalization on entrepreneurship. This study aims to answer the research question of what specific bottlenecks are hindering the performance of digital entrepreneurial systems in the countries under investigation, with a particular focus on developing Asian economies.
Design/methodology/approach
GIDES is a composite indicator that evaluates the performance of digital entrepreneurial systems on a national scale. Unlike traditional entrepreneurship or most entrepreneurial ecosystem measures, GIDES adopts a systemic approach using the Penalty for Bottleneck (PFB) algorithm to spot bottlenecks that potentially degrade overall system performance.
Findings
GIDES assesses the digital entrepreneurship systems of 113 countries, with a specific focus on 21 developing Asian economies. Singapore is ranked first among developing Asian countries globally. However, most developing Asian economies have significant room for improvement. While developing Asia excels in terms of physical infrastructure, it needs to work on its culture and informal institutions.
Originality/value
Digital transformation is not happening in isolation. Instead, it is closely linked to and happens within the context of entrepreneurship. The level of digitalization of the economy, described by digital framework conditions, impacts entrepreneurial activity through their influence on national-level general and systemic framework conditions. Thus, GIDES monitors all the general, structural and digital frameworks that support digital entrepreneurship. Consequently, it offers a deeper understanding of how digitalization impacts entrepreneurship.
... The need for achievement, which is later known as achievement motivation, is a concept that has attracted the attention of researchers, especially with academic achievement (Linenbrink-Garcia et al, 2018;Steinmayr, et al, 2018;Huang, 2011), employee performance (McClelland, 1987;Dewi, 2012), and business success among entrepreneurs. Regarding business success, researchers found that the need for achievement consistently has a significant positive correlation with business success (McClelland, 1965;Kirkcaldy et al, 2001;Shane, 2003;Collins et al, 2004;and Segal et al, 2005). According to McClelland (1987), the factors that influence the need for achievement are: a). ...
... The need for achievement is conceptualized as facing challenges to achieve goals of success and excellence (Lee, 1996) The need for achievement is affected by attributions for success and failure (Scapinello, 1989). Regarding business success, researchers found that the need for achievement consistently has a significant positive correlation with business success (Collins et al., 2004;Kirkcaldy et al., 2001;Segal et al., 2005;Shane, 2003). In addition, the need for achievement mediates the positive effect of religious values-based entrepreneurial behavior on the performance of a business. ...
This study aims to determine the direct and indirect effects of entrepreneurial behavior based on religious values, achievement drive, and internal locus of control on business performance. Data collection utilizes questionnaires with a purposive sampling technique totaling 100 MSME entrepreneurs (Micro, Small, and Medium Enterprises) in Kuningan Regency. Data analysis used Path Analysis with SPSS statistical software to determine the variables’ direct and indirect effects. According to the findings of the study, 1) Entrepreneurial behavior based on religious values has a significant and positive influence on business performance. 2) need for achievement mediates the influence of entrepreneurial behavior based on religious values on business performance. 3) internal locus of control does not mediate the influence of entrepreneurial behavior based on religious values on business performance. The main finding of this study is that the need for achievement has a greater influence on the business performance of MSMEs (Micro, Small, and Medium Enterprises) both directly and indirectly. The results of the study show that the need for achievement has a greater direct and indirect influence on business performance indicating that the need for achievement reflects strong personality characteristics to become a successful entrepreneur.
... Schumpeterian opportunities typically diverge from existing business routines, encouraging firms to take more significant risks. In contrast, Kirznerian opportunities generally build upon or replicate established business models or product concepts (Shane, 2003). Therefore, Schumpeterian IEO, with its focus on innovation and risk-taking, is likely to have more significant performance implications than Kirznerian IEO, as it fosters groundbreaking initiatives and market disruption. ...
... This aligns with the view that Schumpeterian IEO, driven by novel opportunities that break away from existing routines (Szerb et al., 2019), encourages greater risk-taking in entrepreneurial firms. In contrast, Kirznerian IEO focuses on opportunities that build incrementally upon or replicate existing business or product concepts (Shane, 2003), leading to a relatively smaller impact on international OR and OE, as well as overall firm performance. ...
... Previous research has shown various results regarding education, entrepreneurial activities, and success. Shane (2003) argued that knowledge and skills acquired through formal education help individuals identify and pursue entrepreneurial opportunities. Formal education might promote the confidence entrepreneurs need to execute entrepreneurial activities through the knowledge and skills they develop (Ucbasaran et al., 2008). ...
... Hence, the concept of entrepreneurship is central to the functioning of market economies that can result in countries' economic growth and development (Braunerhjelm et al., 2010). Despite the long history of entrepreneurship, literature shows a lack of consensus and consistency in entrepreneurship's definition (Shane et al., 2003;Shane & Venkataraman, 2000;Stokes et al., 2010). Scholars in a range of fields including business, economic, and social science domains, have posited various definitions. ...
In the past, people regarded education as a solution to overcoming poverty. Regrettably, new graduates in Nigeria still have difficulty securing jobs after graduating due to many factors, including overpopulation, poor political administration, conflicting government policies, and an education framework not tailored and adjusted to industry needs. Studies have shown that one of Nigeria'
... Extant research identifies two perspectives on the study of entrepreneurial opportunities: (1) discovery theory (Shane, 2003;Venkataraman, 2003); (2) creation theory (Alvarez & Barney, 2005;Baker & Nelson, 2005). ...
... Entrepreneurial nature refers to the individual ability to discover opportunities in businesses by searching innovative solutions to problems to turn challenges into the possibility of exploiting novelties, new products and services, and developing constant improvement (Shane, 2003;Ucbasaran et al., 2009). It is defined also as intrapreneurial orientation that represents the individual dimension of entrepreneurship (Antoncic & Hisrich, 2001), which is conceptualized as the mediation between the nature (human traits and pre-existing personal inclination) and the nurture (result of learning processes of entrepreneurial education over time, Niemann et al., 2022). ...
Digital transformation and the possibility to collect large amount of data, the so-called big data, from different sources can lead to the redefinition of business processes, models and infrastructures. In this respect, data-driven decision making (DDDM) emphasizes the need to rethink management practices to view data as a driving force that can improve the effectiveness of decisions and nurture innovation. Over time, data-driven principles have been reframed as the foundations for the development of a new mind-set that considers data as a key asset that redesigns entrepreneurship and encompasses orientation, culture and human resources management to help entrepreneurs catch, evaluate and launch entrepreneurial opportunities that can improve technology and knowledge by stimulating innovation. For this reason, the study aims at reconceptualizing entrepreneurship according to a multi-levelled perspective based on the integration of cultural, human, knowledge-based and technological dimension to assess the impact of data-driven management on entrepreneurial opportunities creation and on the development of different kinds of innovation. To assess these goals, empirical research based on constructivist grounded theory and on the administration of semi-structured interviews is performed through the investigation of an Italian public–private Consortium specialized in big data. The findings allow the elaboration of a conceptual framework which classifies the activities of data-driven entrepreneurial processes, the phases of opportunity creation and the different kinds of innovation enabled in the Consortium by guiding entrepreneurs and managers in the elaboration of effective data analysis strategies.
... Individuals' roles in a business enterprise can be better understood by taking into consideration their psychological, sociological, and demographic features, which can either help them or prevent them from being successful enterprises (Shane, 2003). Wang and Ahmed (2007) expounded on how knowledge and experience impact organizational success from the perspective of innovation. ...
... According to Shane (2003), the growth of MSEs and education are normally related. Education is crucial in imparting knowledge, skills, and critical thinking abilities to aspiring MSEs and allowing them to make better business decisions. ...
Micro and small enterprises are approved as economic engines that contribute towards the economic development of Rwanda and then help people improve their livelihoods in line with Rwanda's vision of 2050. The micro and small enterprise sector provides jobs for not only the young but all categories of people, as well as overwhelming macroeconomic issues of unemployment, income inequality, and poverty. Even considering their contribution to economic development, youth-owned micro and small enterprises are facing issues of intense competition from well-established larger firms, the need to adapt to rapidly changing customer preferences, insufficient entrepreneurial skills, a lack of financial resources, and multinational corporations that impede their growth. The study, therefore, investigated the influence of entrepreneurial interventions provided by the state on the growth of micro and small enterprises owned by youth in Kigali, Rwanda. The specific objectives of the research were to determine the influence of training regarding entrepreneurship, credit accessibility, online social media, and market accessibility on the growth of micro and small firms. The theory of the resource-based view is the main theory of the research and is supported by the theory of technology adoption, Gibb's MSE support theory, and firm growth theory. The explanatory and descriptive research designs were employed in determining the association between entrepreneurial interventions provided by the government and the growth of youth-owned micro and small enterprises, as well as to demonstrate the association between dependent and independent variables. Approximately 154 micro and small enterprises were sampled from 252 of the population; the respondents' selection was made using stratified random sampling techniques, and the respondents should be operating micro and small enterprises for the period of the study. Primary data were gathered using a method of semi-structured form, and a pilot study was conducted in the Gasabo district with 20 micro and small enterprises owned by the youth. To demonstrate the degree of reliability, Cronbach Alpha coefficients were used and validity was tested by the use of expert opinions. Inferential statistics were used to examine the role of entrepreneurial interventions supplied by the government in the growth of micro and small enterprises, whereas descriptive statistics were employed to calculate means and standard deviations. The results from the scrutinized data are demonstrated using tables, graphs, and other tools. The study indicated that youth-owned micro and small enterprises had grown more rapidly as a result of interventions offered by the government in Kigali, Rwanda. The study also found that personal characteristics yielded a beneficial moderating influence on the link between entrepreneurial interventions supplied by the government and the expansion of micro and small enterprises owned by youths in Kigali, Rwanda. The study proposes that the government should launch efficient and robust entrepreneurial interventions and program implementations for the expansion of micro and small firms. The study recommends that all micro and small enterprises should utilize technology-based online social media as a superior instrument for managing client relations for online businesses.
... Its dynamics encompass a myriad of factors, including motivation, risk-taking propensity, financial resources, and market demand. Scholars such as Shane (2003) emphasize the role of opportunity recognition and exploitation in self-employment dynamics, highlighting how individuals identify gaps in the market and leverage their skills to address them. Moreover, Baumol (1990) argues that self-employment flourishes in environments where regulatory barriers are low, and self-employment is culturally celebrated. ...
... Motivation plays a central role in driving individuals towards self-employment and sustaining their entrepreneurial endeavors. While financial incentives are commonly cited as motivators, intrinsic factors such as passion, autonomy, and personal fulfillment also significantly influence entrepreneurial behavior (Shane, 2003). Moreover, the pursuit of social impact, innovation, and the desire to leave a legacy contribute to the motivational landscape of self-employment (Stuetzer et al., 2010). ...
This research investigates into the intricate dynamics of self-employment by examining the perceptions, behaviors, decision-making approaches, and motivational drivers among self-employed individuals based in Karachi, Pakistan. Through a qualitative investigation, this study explores the multifaceted nature of self-employment, shedding light on how individuals perceive and navigate the challenges and opportunities inherent in entrepreneurial endeavors. By analyzing the daily lives of self-employed individuals, their reactions to various situations, and their relationship with the myriad aspects of self-employment, this research provides valuable insights into the mindset and practices of this unique demographic. Moreover, the study uncovers the motivational drivers that propel individuals to pursue self-employment, elucidating the underlying factors that influence entrepreneurial aspirations and sustain entrepreneurial endeavors. This comprehensive analysis contributes to a deeper understanding of self-employment phenomena and offers implications for policymaking, entrepreneurial education, and support initiatives aimed at fostering self-employment and economic development.
... Entrepreneurs are often viewed as the lifeblood of economic progress, injecting dynamism into the market and fostering competition, which in turn stimulates improvements in productivity and technological advancement [1]. These individuals not only bring novel products and services to market but also create employment, generate wealth, and contribute to the overall economic well-being of societies [2], [3]. The role of entrepreneurs extends beyond mere business creation; they are instrumental in identifying and exploiting niches, adapting to and shaping market trends, and responding to societal needs with innovative solutions [4]. ...
... Entrepreneurial achievement is multifaceted, encompassing the successful launch of new ventures, market penetration, and the establishment of a loyal customer base, as well as recognition within the industry and contribution to economic development [3], [16]. It is also reflective of personal growth, resilience, and the capacity to overcome challenges and adapt to changing market conditions [17]. ...
Manufacturing firms in Rivers State were the focus of this research, which aimed to assess their entrepreneurial self-efficacy and venture success. With government policy serving as the moderating variable, the dimensions of self-efficacy included accomplishment orientation, idea creation, and resilience. The indicators of venture success included financial success, market success, and operational success. The researchers in this study mostly used a survey research strategy based on correlations. Based on data collected from the Manufacturers Association of Nigeria, Rivers state branch, this study's population consists of 294 management workers from 98 manufacturing enterprises in Rivers state. This study used the taro yamen sampling formula with a sample size of 170. We used a structured questionnaire to gather our data. Items are dependable according to Cronbach's Alpha, which showed a dependability index of.874. You can see the responder demographics in the bar chart. We analyzed the study variables using descriptive statistics, which include means and standard deviations. To test our hypotheses, we used the Spearman Rank Order Correlation Coefficient with a significance threshold of 0.05. In order to examine the government policy controlling variable, we used the partial correlation. The study found that manufacturing firms in Rivers state that are achievement oriented are more likely to have ventures that are successful, that manufacturing firms in Rivers state that are resilient are more likely to have ventures that are successful, and that there is a significant relationship between idea generation and venture success. In Rivers state, entrepreneurial self-efficacy is a major factor in the success or failure of industrial businesses. It has an effect on the businesses' overall performance and sustainability by affecting accomplishment orientation, idea creation, and resilience. Findings from the research suggest that manufacturing companies may encourage a growth mindset among their workers by outlining specific, attainable goals that contribute to the overall purpose and vision of the company.
... Entrepreneurial leaders create a culture that promotes continuous innovation, encouraging the development of new products, services, and processes. This allows companies to stay competitive by responding to market changes and evolving customer demands (Shane, 2003;Nawaz, Wenqi, Akhtar, 2025). ...
... Environmental conditions are important drivers of new business creation (Drucker, 1985;Kirzner, 1973;Shane & Venkataraman, 2000). Economic, technological, social and demographic, political, institutional or regulatory changes disrupt the competitive equilibrium in the market or industry, and give rise to competitive imperfections, which may be seized by entrepreneurs (Shane, 2003). Favorable environmental conditions may be interpreted as environmental Grilo and Thurik (2005); Grilo and Irigoyen (2006) Lack of financial support is positively or not related to latent entrepreneurship; administrative complexities are negatively related to both latent and actual entrepreneurship. ...
Research Summary
Consistent with the theories of planned behavior and social contagion, this study is based on the notion that entrepreneurial intentions affect entrepreneurial behavior (“conversion channel”), which in turn affects others' intentions (“contagion channel”). GMM estimation results of a simultaneous equation model suggest that entrepreneurial intentions and new business ownership are reciprocally related. The conversion channel appears to be the stronger force in the relationship. Additional moderator analyses suggest that environmental munificence, as expressed by regulatory quality, advanced stage of the economy, and economic growth strengthen, whereas the GDP level weakens the relationship. Furthermore, entrepreneurial perceptions, exits, and knowing other entrepreneurs promote the conversion channel but mitigate the contagion channel. These findings yield implications relevant for research and policy makers.
Managerial Summary
A positive feedback loop in the economy is a situation where two events reinforce each other. In such situation, small and random changes in the economy, such as policy changes or economic shocks, are magnified. This study shows that there is a positive feedback loop in entrepreneurship between entrepreneurial intentions and behavior: individuals' entrepreneurial intention determines actual entrepreneurial behavior, which in turn encourages others to develop entrepreneurial intentions. The positive feedback loop is strengthened by environmental munificence, weakened by living standards, and ambiguously affected by entrepreneurial perceptions, experience, and networks. These findings deepen our understanding of how startup hotspots emerge, emphasize the importance of accounting for structural influences, and contribute to the discussion on cross‐country variation in entrepreneurial activity.
... Prior knowledge of individuals has a role in the discovery and exploitation of entrepreneurial opportunities (Shane 2000;Shane and Venkataraman 2000). It is often argued that some individuals are more likely than others to discover opportunities because they have information and information-processing abilities that others lack (Shane 2003). Specific life experiences, such as work experience and education, give people access to information and knowledge that others do not have. ...
Recent developments in venture creation are discussed, moving from a standard model of venture creation as a one-off binary decision (enter or not) to viewing venture creation in terms of knowledge endowments that differ according to the gestation process. We draw on the analogy that healthy newborn babies lose weight in the first few days after birth to investigate how nascent ventures slowly build routines and capabilities while drawing down their initial resource endowments. We critically discuss various themes, such as the paradox of new ventures without DNA (i.e., routines), misunderstandings about lean startups, accelerating vs. delaying a startup, and the timing of birth.
... Although these entrepreneurs may not initially focus on innovation, their survival-driven efforts can lead to adaptive solutions and resourceful business practices. In contrast, opportunity-driven entrepreneurship flourishes in more stable economic conditions, where individuals are motivated by the prospect of exploring new market opportunities and launching innovative business ideas (Shane, 2003). These entrepreneurs typically have access to better resources and conditions, allowing them to introduce cutting-edge technologies or business models that drive long-term economic growth and advancement in various sectors. ...
Purpose
This paper examines the impact of digitalization, innovativeness, capital formation, unemployment and sustainable development on entrepreneurship in European countries. By analyzing data from 42 European Council countries between 2000 and 2021, the study aims to uncover the relationships between these factors and entrepreneurship, with a focus on upper-middle-income and high-income countries.
Design/methodology/approach
The research uses panel cointegration, panel ARDL and panel Granger causality to examine the data across three panels. This methodological approach allows for a comprehensive assessment of relationships between the variables of interest.
Findings
In all countries and high-income countries, information and communication technology (ICT), unemployment (UNE) and the Sustainable Development Goals (SDGs) positively and significantly influence entrepreneurship, while R&D expenditure (RDE) and gross fixed capital formation (GFCF) negatively and significantly influence entrepreneurship. In upper-middle-income countries, ICT has no statistical significance, but RDE, GFCF, UNE and SDG have a significant negative impact on entrepreneurship. In terms of causality, there is bidirectional causality between all variables in all countries and high-income countries, while there are mixed causal relationships in the upper-middle-income group.
Originality/value
This paper contributes to the literature by focusing on the macroeconomic determinants of entrepreneurship, with particular emphasis on ICT, R&D and sustainable development. The study offers new insights into how these factors influence entrepreneurship in different income levels of European countries. By examining the interaction between entrepreneurship and all considered variables, this research provides a deeper understanding of the dynamics of entrepreneurship and possible policy implications.
... Entrepreneurship is an activity that is, broadly speaking, open and freely accessible to any individual who has identified an opportunity and seeks to capitalize on it (Shane 2003). However, although entrepreneurship is theoretically available to everyone, research suggests that women and men face different realities in forming their entrepreneurial ventures (Robb 2002). ...
We contend that the degree of closure in women entrepreneurs’ social networks affects how concerned they feel about being judged through the lens of negative gender stereotypes (i.e., their experience of social identity threat). Using data from a survey of entrepreneurs in Study 1, we observe that women (but not men) entrepreneurs who report more closure in their social networks experience less social identity threat. Study 2 shows that the trust that is inherent in closed social networks accounts for our effects. Using an experimental design, we find that a field sample of entrepreneurs who are assigned to develop a closed (vs. open) network experience more trust, which is associated with reduced social identity threat for women (but not men). Our findings suggest that a closed social network may inoculate women against the risk of being derailed by negative stereotypes in the venture creation process. We conclude by discussing the theoretical and practical implications of our findings.
... The logic underlying those findings is rooted in the training literature (Bell & Kozlowski, 2008) and grounded in human capital theory (Becker, 1964;Mincer, 1958)-a theory drawn upon in the entrepreneurship literature to explain aspects of entrepreneurial success (e.g., Martin et al., 2013;Pfeffer, 1994). As a process involving a set of related skills (e.g., in opportunity recognition and resource acquisition and use- Shane, 2003), entrepreneurship theoretically can be cultivated through EE experiences (e.g., Gorman et al., 1997;Katz, 2003;Pittaway & Cope, 2007;Martin et al., 2013;Mayhew et al., 2016). The affirmative school is also supported by translating the past evidence of EE's positive significant effects on intentions, skills improvements, and self-efficacy-through the Theory of Planned Behavior, Agency Theory and Career Theory-into the expectation that those factors will translate into positive, sustained and successful entrepreneurial activity by students. ...
We explore the question of whether entrepreneurial education matters for medium-sized venture performance. We do so to better understand the conflicting evidence indicating that, while such education appears to have significant positive micro-level effects, it has no significant macro-level effects. The growing investment in entrepreneurial education has increased intentions and start-up rates in treatment effects studies but has yet to make an impact on national start-up or survival rates. To address the contradiction, we apply a different empirical approach—one based on the capabilities view—where we survey venture entrepreneurs about their firm’s performance and their education in order to determine whether their skills-enhancing entrepreneurial training is or is not a key driver of success. We find that while that training significantly increases their confidence, when taken as a whole—as a multidimensional measure—that entrepreneurial education does not significantly influence venture performance. We discuss the implications for research, policy, and education.
... Finally, related to the previous point, there are practical implications of our research for entrepreneurship and self-employment, as the measures used in the research may be helpful in identifying the suitability of opportunity-based entrepreneurship for individuals (Shane, 2003). This is especially helpful before individuals make decisions to be self-employed/entrepreneurs as not all of them may be suited for self-employment/entrepreneurship (Casson, 2005). ...
Purpose-This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture-the entrepreneur's values, entrepreneurial attitudes and entrepreneurial self-efficacy-to the firm's entrepreneurial orientation (EO) and market orientation (MO) and, ultimately, to firm performance. Design/methodology/approach-We conducted a survey on a stratified random sample of founders of early-stage South Australian micro-and small enterprises with a response rate of 24% (N 5 204). Structural equation modelling was used to evaluate the model. Findings-The study found that there is a significant relationship between the individual lead entrepreneur and firm strategies developed in early-stage firms in explaining firm performance. It also found that internal values are positively related to entrepreneurial attitude. Entrepreneurial attitude is positively related to entrepreneurial self-efficacy and EO innovativeness. In turn, entrepreneurial self-efficacy is related to innovativeness, proactiveness and risk-taking. The proactiveness dimension of EO and entrepreneurial attitude is related to MO. Entrepreneurial self-efficacy, innovativeness and MO are related to firm performance. Research limitations/implications-This research was limited to entrepreneurial ventures in South Australia and may lack generalisability in other states and countries. Originality/value-The research contributes to the understanding of the heterogeneity within self-employed individuals, in particular among innovative entrepreneurs, by expanding insights regarding antecedents and consequences of the entrepreneurial process. It develops insights into the links of individual-level constructs with firm-level constructs to develop a more meaningful understanding of new venture creation and performance. It enhances our knowledge of the heterogeneity within the group of self-employed by exploring the individual entrepreneurial antecedents of performance in early-stage firms.
... It is becoming increasingly clear that wealth has a profound impact on several different social outcomes, including social mobility [39]. Our findings, then, contribute to our understanding of how economic policies can exacerbate wealth inequalities [97], where pre-existing capital and social networks play a pivotal role in determining who benefits from economic upheavals. More work is, of course, required to understand exactly how policy responses have mitigated the potential economic losses for different groups within society. ...
The Covid-19 pandemic brought unprecedented changes to business ownership in the UK which affects a generation of entrepreneurs and their employees. Nonetheless, the impact remains poorly understood. This is because research on capital accumulation has typically lacked high-quality, individualized, population-level data. We overcome these barriers to examine who benefits from economic crises through a computationally orientated lens of firm creation. Leveraging a comprehensive cache of administrative data on every UK firm and all nine million people running them, combined with probabilistic algorithms, we conduct individual-level analyzis to understand who became Covid entrepreneurs. Using these techniques, we explore characteristics of entrepreneurs—such as age, gender, region, business experience, and industry—which potentially predict Covid entrepreneurship. By employing an automated time series model selection procedure to generate counterfactuals, we show that Covid entrepreneurs were typically aged 35–49 (40.4%), men (73.1%), and had previously held roles in existing firms (59.4%). For most industries, growth was disproportionately concentrated around London. It was therefore existing corporate elites who were most able to capitalize on the Covid crisis and not, as some hypothesized, young entrepreneurs who were setting up their first businesses. In this respect, the pandemic will likely impact future wealth inequalities. Our work offers methodological guidance for future policymakers during economic crises and highlights the long-term consequences for capital and wealth inequality.
... El emprendimiento es conceptualizado como identificación, evaluación y capitalización de oportunidad para generar producto o servicio nuevo e innovador a través de la organización de esfuerzos (Avendaño, 2024). Para Shane (2003) emprender significa visualizar y generar cambio, en donde se involucran ideas y soluciones innovadoras. Empero, el emprendimiento demanda también que el emprendedor esté dispuesto a tolerar esos cambios y actúe en función de una motivación para enfrentar los riesgos que genera este proceso de emprendimiento (McMullen y Shephard, 2006). ...
Introducción: El objetivo fue describir las estrategias de resiliencia desarrolladas por las familias de las comunidades que realizan turismo comunitario para superar las perturbaciones que éste genera. Metodología: Fue una investigación cualitativa y participaron 111 familias que ofrecen turismo en las comunidades campesinas de Llachon y Ccotos, Puno –Perú-. Resultados: Algunas estrategias de resiliencia fueron: capacitación permanente sobre reciclaje y buenas prácticas ambientales para contribuir a la conservación de flora y fauna silvestre. Asimismo, la capacitación básica en: atención al cliente, marketing, idiomas y finanzas para afrontar los emprendimientos independientes. También la creación de diversos servicios especializados para el turismo comunitario y finalmente el acceso a microcréditos y acuerdos comerciales con agencias de viaje. Discusión: Las estrategias de resiliencia constituyen un motor poderoso para afrontar dificultades que se presentan en la actividad turística comunitaria. Conclusiones: Las estrategias de resiliencia que utilizaron las familias se consolidaron a través del tiempo, producto de una permanente capacitación por parte de organismos privados y públicos, mediante transferencia de conocimiento práctico a través de asistencias técnicas y pasantías de algunos miembros de las comunidades.
... According to Shane (2003), a business transfer forces the entrepreneur to focus on three aspects: (1) the identification of new opportunities; (2) the creation of an entrepreneurial strategy; and (3) performance. In this sense, a leader must find an equilibrium between their choice of a new strategic vision and, as shown earlier, the acceptance they receive as the legitimate leader of the organization. ...
L’une des manières possibles de démarrer un nouveau projet entrepreneurial consiste à investir dans une entreprise existante dans le but d’en prendre le contrôle. La littérature a abordé ce phénomène concernant les petites et moyennes entreprises (PME) implantées dans des secteurs traditionnels. Cependant, peu d’études ont analysé ce type de transfert lorsqu’il s’effectue dans des startups innovantes. Dans cette étude de cas, nous explorons l’expérience de Damien Guermonprez, un entrepreneur en série qui a décidé d’acquérir une part significative d’une startup fintech : Lemonway. En mettant en perspective son expérience antérieure de repreneur de Buy Way, une PME du secteur bancaire, nous retraçons les particularités du processus de transmission d’entreprise d’une startup par rapport à une PME traditionnelle. Le cas montre les éléments spécifiques à prendre en considération pour élaborer une stratégie de changement de propriétaire d’une start-up.
... A woman's entrepreneurial practices, marked by gender stereotype, are supported and discouraged by normative structure, financial capital, societal structures, cultural traditions and power relations (Blake, 2006;Brush et al., 2009). They also face barriers in market access (Shane, 2003), access to capital (Bruno & Tyebjee, 1984) and management of human and organizational capital (Aldrich, 1999). In India, these gender stereotypes create disadvantages for women entrepreneurs (Agarwal & Lenka, 2018;Loscocco et al., 2009). ...
In India, though women form a significant part of the population, gender stereotypes prevent women from engaging in entrepreneur-ship because they gain identities that are counterproductive. It is therefore important to study how Indian women entrepreneurs break the gender stereotype, reconstructing new gender identities. A longitudinal study with unstructured interviews capturing narratives of the entrepreneur and her team members was conducted adopting a qualitative, multi-method approach including focus groups and secondary data. Employing the Gioia method for analysis, our study makes three important contributions. First, it identifies enablers, obstacles, blockages and accelerators that help Indian women entrepreneurs reconstruct gender identity. Second, our study shows the intersectionality of concurrent identities and gender stereotyping at workplace, societal and personal levels. Third, our study brings out identity evolution drivers that helped in breaking the gender stereotype. The research advances knowledge on gender identity and gender stereotypes in entrepreneurship literature, particularly in the context of women entrepreneurs.
... Innovative entrepreneurship, therefore, includes activities aimed at recognizing, evaluating, and capitalizing on opportunities to launch new products and services, adopt unique business practices, enter new markets, or utilize previously inaccessible sources of materials (Shane, 2003). Innovative entrepreneurship specifically involves establishing a new business that leverages the results of scientific and technological advancements (Barbara, 2013). ...
The objective of this study is to analyze the existing literature and highlight significant trends in the area of entrepreneurial intention and innovation among students. The data employed in this analysis were sourced from the Scopus database, covering 361 publications in English over the last ten years (from 2014 to 2024, as of the survey conducted on September 10, 2024). The method employed is bibliometric analysis with the support of the VOSViewer software. The findings show that the topic of entrepreneurial intention and innovation among students is a rather interesting subject, which has been widely published in reputable journals, particularly in the fields of education, training, and entrepreneurship. This topic has been extensively researched in Asian countries, with China standing out as the top contributor in terms of the number of publications. Through bibliometric analysis, this study has also identified four main research themes related to the topic of entrepreneurial intention and innovation among students. They are: (1) the effect of individual student characteristics on entrepreneurial intention; (2) the role of education and innovation in shaping students’ entrepreneurial intentions; (3) utilizing the theory of planned behavior to explore factors influencing social entrepreneurial intentions among students in higher education; (4) the influence of entrepreneurship education on the development of students’ entrepreneurial mindset and actions. Furthermore, this study has outlined nine promising future research directions that aim to enhance both the quantity and quality of studies on students’ entrepreneurial intentions and innovation. AcknowledgmentThis study is a product of the doctoral dissertation project carried out under decision No. 5125/QD-ĐHDT dated November 30, 2021, from Duy Tan University, Vietnam.
... Consequently, consider a newly born venture that has a high failure ratio and resource scarcity, it is very essential for the firm to acquire satisfactory resources for business expansion and operational process (Barney and Arikan, 2005). Obtaining external resources is not only important for high performance and profitability, but firms also get other benefits such as exploiting new opportunities, new markets information and customers' demands (Shane, 2003). A firm need to access resources in the host country and home country when planning for internationalization. ...
This research examines if intellectual capital facilitates Small and Medium Enterprises (SMEs) in the acquisition of (in)tangible resources in the host and international market to expedite the internationalization process. We surveyed 271 Chinese SMEs and employed structural equation modelling in AMOS to test the hypothesized relationships. The results revealed that intellectual capital significantly improves internationalization process of Chinese SMEs. Moreover, we found that intellectual capital does not significantly help in acquiring national (in)tangible resource acquisition of international tangible resources while it has an insignificant influence on (in)tangible resource acquisition as well as international intangible resource acquisition. Both national tangible resources and intangible resources have an insignificant influence on internationalization while international (in)tangible resources significantly promote Chinese SMEs towards internationalization. Size of firms and educational background play a prominent role in internationalization route of SMEs. This study partially support claim that both theories can be complemented in terms of internationalization process. This study recommends SMEs to investment in intellectual capital that may help in acquisition of external resources (all types) that are essential for internationalization. This study suggests policy makers to formulate strategic policies and regulations for national resources that can be accessed by ventures easily for internationalization process. Other useful implications are discussed. This research contributes the RBV and internationalization theory in the context of SMEs. To the best of our search and knowledge, we did not find any study addresses the role of intellectual capital in domestic and foreign resource acquisition for internationalization process.
... One such stream of research is the view of entrepreneurs as unusual, even heroic, personalities. Scholars have argued that opportunity recognition is a key aspect of entrepreneurship (Shane, 2003;Short et al., 2010). This view argues that entrepreneurship opportunities need to be discovered and exploited by skilled entrepreneurs in the same way that prospectors search for oil or gold. ...
... Successful entrepreneurs provide new solutions for issues in the marketplace. Entrepreneurs are open to new experiences and use their available resources in novel ways to develop new solutions (Drucker, 2002;Karami et al., 2024;Shane, 2003). Creativity becomes especially important in entrepreneurship due to uncertainty in the market, where sometimes, even customers do not know exactly what they want. ...
We propose that entrepreneurial alertness plays a critical role in translating creativity into positive entrepreneurial outcomes. We conducted a multilevel meta-analysis, and our findings suggest that entrepreneurial alertness channels creativity toward more promising opportunities, innovation, and firm performance. By integrating Schumpeterian and Kirznerian views on entrepreneurship, we provide a pragmatic view that accounts for creativity and alertness. We also provide practical implications for entrepreneurs.
... Although there is little consensus on what specific aspect of parenthood influences children's entrepreneurship entry the most, researchers generally believe that human capital, representing the collective knowledge and cognitive abilities of family members (Coleman, 1988), improves the cognitive ability of individuals to build and sustain businesses (e.g., Shane, 2003). As general human capital comes from life experiences, we take age and education to observe human capital. ...
Societies that are more oriented on being traditional, as in Latin America, emphasize the institution of family; hence, family businesses may be supported by laws, regulations, services, and education and training. Therefore, in these kinds of developing countries, family is the first school, where values and norms shape the practices that are shaped (Verbeke et al., A values-based analysis of bifurcation bias and its impact on family firm internationalization. Asia Pacific Journal of Management, 1–29, 2019). Evidence shows that parents can become role models for the youngest (Lee et al., Entrepreneurship education and founding passion: The moderating role of entrepreneurial family background. Frontiers in Psychology,12(743672), 2021). Undergraduates with family business traditions are more inclined to choose the entrepreneurial route (Cieślik & van Stel, Explaining university students’ career path intentions from their current entrepreneurial exposure. Journal of Small Business and Enterprise Development, 24(2), 313–332, 2017). Notwithstanding controversial results concerning parents as role models’ influence when dealing with the entrepreneurial career option (Abd El Basset et al., Reducing barriers to female entrepreneurship in Oman: Does family matter? Journal of Enterprising Communities: People and Places in the Global Economy, 2022). Few studies have been done in Latin America, especially in countries such as Mexico and Peru. These countries have higher entrepreneurial capacity (Bosma & Kelley, Global Entrepreneurship Monitor [GEM] 2018/2019 Global Report. GEM Global Entrepreneurship Monitor. https://www.gemconsortium.org/file/open, 2019; GEM, Global Entrepreneurship Monitor 2022/2023 Global Report: Adapting to a “New Normal”. GEM, 2023). In Mexico, higher education institutions are working to foster entrepreneurship in the community, and other higher education institutions are trying to build more robust entrepreneurial ecosystems in their institutions. Peru is among the first four countries with the most significant entrepreneurial activity within the group of efficiency-based economies (Bosma & Kelley, Global Entrepreneurship Monitor [GEM] 2018/2019 Global Report. GEM Global Entrepreneurship Monitor. https://www.gemconsortium.org/file/open, 2019); the country has been advised about the relevance of entrepreneurial education necessary in the educational system to help reduce the level of the business survival indicator (GEM, Global Entrepreneurship Monitor 2017/18. GEM, 2018). Therefore, understanding the perspective of students from different entrepreneurial university ecosystems becomes important.
... Para referirnos a las oportunidades emprendedoras, seguimos el planteo de Scott Andrew Shane (2003), uno de los referentes más citados en esta materia. Según este autor, el proceso emprendedor se estructura en tres fases: detección, evaluación, y explotación de una oportunidad; y señala que "la oportunidad emprendedora es el punto de partida de todo emprendimiento y la oportunidad es una situación en la que una persona puede crear un nuevo marco de medios-fines para re-combinar recursos que el empresario cree que producirá una ganancia" (2003, p. 18). ...
Al emprender desde el diseño industrial, se entrelazan y confrontan dos culturas distintas: la del diseño y la empresarial. Por ello, este estudio de caso múltiple se propuso analizar en profundidad los discursos empleados y la percepción de los diseñadores industriales respecto a su rol emprendedor. Se enfocó específicamente en ocho iniciativas emprendedoras desarrolladas entre 2009 y 2019 por egresados de la Facultad de Artes de la Universidad Nacional de La Plata, dentro del ecosistema emprendedor bonaerense. Metodológicamente, el trabajo se estructuró a partir de una tríada emprendedora compuesta por el emprendedor, su emprendimiento y el ecosistema en el que se desarrollan. Se llevaron a cabo veintiocho entrevistas semiestructuradas con diseñadores y otros informantes clave, lo que permitió reconstruir detalladamente los procesos emprendedores. Estos relatos no solo exploraron la dinámica del trabajo autoorganizado, sino también su influencia en los proyectos de vida personales de los emprendedores y las diferentes culturas discursivas presentes en esta comunidad profesional.
... The effect of AI can enhance the decision-making process for entrepreneurs, offering one of many options to strategize how it is useful for market and business strategy, and to utilize opportunities in firms and society. The literature clearly mentions identifying opportunities in the decision-making process to explore entrepreneurial activity (Fairlie & Fossen, 2018;Shane, 2003;Shane & Venkatraman, 2000). ...
The study mainly concentrates on entrepreneurial success and decision-making
power and processes in a developing country like India. The study used qualitative
and quantitative methods, adopting semi-structured interviews conducted with
entrepreneurs in Dehradun City, Uttarakhand, India. The findings of the study
were analyzed using SPSS version 23. The study focused on the following aspects:
socio-economic characteristics of the entrepreneurs, problems faced by entrepre�neurs at various levels such as family, financial, gender disparities, and education,
as well as legal challenges encountered by the entrepreneurs. The significance of
the study lies in how entrepreneurs, with the support of Artificial Intelligence, cope
with problem-solving, risk identification, and decision-making processes. The study
emphasizes that AI can play a vital role in improving both the entrepreneurs' lives
and their businesses. This study can contribute to enhancing the future perspectives
of AI and entrepreneurship-related asp
... This diversity persists even in attempts to define, classify, measure and propose policies as concern both innovation and innovation activities (Bielińska-Dusza & Hamerska, 2021). The field of innovation research predominantly draws upon the overarching theory of entrepreneurship, strategic management principles, and theories of institutional and endogenous growth (Shane, 2003), (Song, 2016), (Costa, et al., 2016), (Mei, et al., 2019). Despite the breadth of theoretical frameworks utilized, there remains a notable gap in empirical studies that delve into microdata analysis within specific business sectors, particularly at the more granular 2-3 digit NACE levels. ...
The current business environment is characterized by high competition between companies as well as global challenges and growing technological progress. Businesses must constantly adapt to changes in the business environment, changes in the market environment and the constantly changing requirements of customers. The purpose of this article is to point out the major gaps across eight former communist East-European countries in what regards the innovation: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia. In order to compare the trends in hat regards innovation in Eastern European countries we have first collected data for four innovation indicators for each East European country, separately for each field of activity. We have computed variation coefficients that revealed the fields of activity with the highest and/or lowest gaps across selected countries. Our conclusion is that Eastern Europe is increasingly becoming a hotspot for innovation, with countries in the region making significant progress in various aspects of innovation-driven development. By leveraging their strengths, addressing challenges, and capitalizing on opportunities, Eastern European countries can further enhance their innovation performance, competitiveness, and sustainable growth in the global innovation landscape.
... This diversity persists even in attempts to define, classify, measure and propose policies as concern both innovation and innovation activities (Bielińska-Dusza & Hamerska, 2021). The field of innovation research predominantly draws upon the overarching theory of entrepreneurship, strategic management principles, and theories of institutional and endogenous growth (Shane, 2003), (Song, 2016), (Costa, et al., 2016), (Mei, et al., 2019). Despite the breadth of theoretical frameworks utilized, there remains a notable gap in empirical studies that delve into microdata analysis within specific business sectors, particularly at the more granular 2-3 digit NACE levels. ...
Digitization in tourism represents a big challenge. Worldwide initiatives are directed towards its application in the service of the industry. Already at the present time, their portfolio is quite broad and gives opportunities for the use of these innovations. The aim of the empirical study was to find out, analytically evaluate and describe the perception of the attractiveness of selected digital tools in hotel rooms and the interest in them. Through questionnaire research as a tool of quantitative research, it approximates the results on a sample of Slovak respondents, who participate in tourism and use the accommodation services regularly. The results point to the fact that digital tools harmonize the offer, but do not represent a highly attractive element without which the tourists could not imagine their stay in accommodation establishments.
... lace (Aomako et al., 2018;Kirzner, 1999). It does so by channeling creativity toward entrepreneurial opportunities with a balance between familiarity and novelty, that is, opportunities that are "new and different enough to capture consumers' attention, but familiar enough to not be misunderstood or rejected out of hand as too radically different" S. A. Shane, 2003;Ward, 2004, p. 173), thus increasing the success rate of entrepreneurship. ...
Contributing to ongoing conversations about the central role of
creativity in entrepreneurship, we propose that creativity leads to
positive entrepreneurial outcomes through a crucial mediating
mechanism: entrepreneurial alertness. We conducted a multilevel
meta-analysis of 92 published studies with 209 effect sizes
extracted and a cumulative sample size of 927,615 participants.
Our findings suggest that alertness fine-tunes creativity and channels it toward more promising opportunities, innovation, and firm performance. Integrating Schumpeterian and Kirznerian perspectives, this study provides a pragmatist view of entrepreneurship and paves the way for further theorizing the association between creativity and alertness in explaining entrepreneurial outcomes.
... By examining customer preferences from a macro perspective, students gain insights into emerging market trends and consumer behaviours, enabling them to identify entrepreneurial opportunities that align with evolving customer needs. Navigating how opportunities or pattern recognition happen, such as individual opportunity (Shane, 2003), or in consideration with cognitive skills (Shane & Venkataraman, 2000), networking skills (Chea, 2008), organisational learning process (Lumpkin & Lichtenstein, 2005), career choices (Lee & Venkataraman, 2006) and so on, entrepreneurs can anticipate needs, connect with external developments and formulate strategies for success. ...
This simulation exercise offers transformative experiential learning in entrepre-neurship. Integrated with the knowledge, skills and attitudes framework, this exercise immerses students in real-world scenarios of local livelihood businesses. Through hands-on engagement, students propose solutions, fostering critical thinking and problem-solving aligned with Bloom's Taxonomy. The exercise yields profound experiential learning outcomes, empowering students with insights, skills and attitudes vital for entrepreneurial success.
... Conversely, opportunity exploitation requires uniform organizational learning and collective efforts to align individuals' opportunity-seeking behaviour with the firm's advantage-seeking action (Hitt et al., 2001). Therefore, in SMEs following a CBI strategy, the 'individual-opportunity nexus' (Shane, 2003) is even more critical and must be managed to efficiently integrate individual learning of the staff who is in direct contact with the customer exploring new opportunities with the organizational learning scheme that exploits the firm's efficiency. Otherwise, the risk of polarization can arise (Cuevas, 2018) missing innovation opportunities in SMEs. ...
Customer-based innovation (CBI) contexts can facilitate the journey from exploitation to
exploration in SMEs in order to evolve towards organizational ambidexterity. However, the
transition towards ambidexterity is not an easy journey and managers deal with different
tensions regarding the balance between explorative and exploitative processes. The paper
presents an inductive research, based on the in-depth analysis of four Basque innovative
SMEs that have been able to develop an organizational ambidexterity strategy in CBI
contexts. In this attempt, first, we contribute to the theory identifying the specific risks
associated with the transition towards ambidexterity in SMEs. Second, we provide a
qualitative study to understand how exploitation transit through ambidexterity can be done
successfully and finally, we propose some lessons to help SMEs in this transition period.
... Meanwhile, many other identified competencies can be connected to the claims in mainstream entrepreneurship and digitalization literature (Blanka et al., 2022;McKendrick, 2017;Zimmer et al., 2020). However, the similarity can be explained by the fact that entrepreneurs, and managers in general demonstrate some general characteristics (Shane, 2003). As a result, the study is the first to contribute to the body of prior research by offering a competency classification that is more comprehensive and integrative than previous anecdotal evidence (Andersson & Rosenqvist, 2018;Herbert, 2017). ...
Digitalization is emerging as a broader socio-technical transformation affecting businesses of all types. The paradigm shifts in digital technology have mandated new mindsets and approaches to managerial, leadership, and entrepreneurial competitiveness in organizations. Human capital with the ability to convey digital knowledge and strategies is regarded as a crucial resource for digital transformations (DT) in organizations. In fact, the development of relevant technological and digital competencies (DCs) is regarded as the biggest obstacle to DT in non-profit organizations (NPOs) as well. However, the growth of literature in this direction has been fragmented by the lack of any formal integration of DCs. The current study is formulated with the primary goal of exploring the digital competency requirements of NPOs. A systematic literature review protocol adhering to PRISMA guidelines was undertaken to synthesize the initial draft of DCs. Subsequently, a modified two-round Delphi survey with a panel of 25 experts was used to rate the competencies quantitatively. The analysis followed the prescribed Delphi principles to determine the results' validity and reliability. As a result, a comprehensive set of eighteen competencies was generated and categorized into three areas (‘digital leadership’, ‘personnel and organizational’, and ‘technical’ competencies). While filling an important void in the literature, the study's findings lay the groundwork for a digital transformation education, learning, and development agenda in non-profits.
Purpose-We examine how investment in digital technology shapes entrepreneurial trajectory-entrepreneurial opportunities, business models and performance given the competitive environment of the firm.
Design/methodology/approach-We choose all the observations from the listed firms of the Dhaka Stock Exchange Limited in Bangladesh, an emerging economy in Southeast Asia. We choose firms that have more exposure to technological investment each year in the value-generation process from 2019 to 2021. We use ordinary least square, controlling all fixed effects, to explore the impact of investment in IT on the entrepreneurial trajectory.
Findings-Following the "resource-based perspective" of the firms, we find that more investment in technologies improves entrepreneurial trajectory, even in a competitive environment.
Practical implications-This paper will assist regulators and policymakers in adopting the right legislation, regulatory reform and enforcement strategies to enhance the information technology implementation processes.
Originality/value-We expect that this paper will provide an incentive for managers and entrepreneurs to think more about the role of investment in technologies to improve and shield entrepreneurial trajectory in the long run.
Over the past two decades, the relationship between migration and entrepreneurship has gained prominence in Western economies. The increasing number of businesses led by foreign nationals has reshaped the entrepreneurial landscape in many countries, including Italy. In Italy, regulatory flexibility, shifting migration patterns, and market demand—combined with an economy dominated by small enterprises—have fostered a favorable environment for entrepreneurship. Grounded in micro and small businesses, the Italian economy supports self-employment and small-scale enterprises, making it particularly welcoming for immigrant entrepreneurship. Micro and small enterprises have historically driven national economic growth. Within this framework, female immigrant entrepreneurship has become a significant and growing component, reflecting broader trends in women-led and migrant-owned businesses. Female immigrant entrepreneurship in Italy today represents a dynamic phenomenon shaped by territorial factors and relational capital. These elements enable immigrant women to overcome barriers and seize opportunities in the Italian market. The concept of territory includes resources within local contexts, such as infrastructure, economic frameworks, and institutional support. Immigrant women often identify market gaps, especially in ethnic products and services, gaining a competitive edge. Relational capital, comprising networks built through family, community, and professional connections, is equally crucial. These networks provide access to financing, partnerships, mentorship, and market insights, helping immigrant women navigate socio-economic challenges. Together, territorial factors and relational capital drive female immigrant entrepreneurship in Italy, promoting social inclusion and economic diversification. This study examines how these elements support the emergence and growth of female immigrant businesses.
The gig economy, facilitated by digital platforms, has emerged as a revolutionary trend in modern entrepreneurship, reshaping traditional employment and business models. The gig economy has redefined work relationships and employment structures globally. The gig model offers autonomy and flexible working arrangements but often comes with unwarrantable income, lack of benefits, and regulatory ambiguities. The gig economy in India has emerged as a significant driver of employment, characterized by flexible, task-based jobs mediated through digital platforms. With platforms like Zomato, Ola, and Urban Company gaining prominence, gig work offers unique opportunities and challenges for Indian workers. It highlights the dual nature of gig work—providing employment opportunities in a country with high unemployment rates but also presenting issues like income insecurity, lack of benefits, and regulatory gaps.
Pengelolaan Usaha dari Kecil Menjadi Besar” ini
adalah panduan lengkap bagi siapa saja yang ingin mengembangkan
usaha kecil menjadi bisnis besar. Buku ini dimulai dengan langkah
awal menjadi pengusaha, mulai dari menyusun rencana bisnis yang
komprehensif hingga memilih jenis usaha yang sesuai dengan minat
dan peluang pasar. Dilengkapi dengan panduan meningkatkan
kualitas produk dan layanan, buku ini memberikan strategi efektif
untuk menciptakan kepuasan pelanggan serta membangun loyalitas
jangka panjang.
The general theoretical consensus is that economic growth and development are the product of entrepreneurial activities. Baumol, however, famously observed that not all entrepreneurial activities were economically ‘productive’ and that some entrepreneurial activities were unproductive or even destructive. What is generally not known, however, is how, why, or when destructive entrepreneurship thrives. We begin to unpack the destructive entrepreneurship phenomenon within the context of Haiti. Haiti is an intriguing context of study because, despite extensive efforts to create and develop new institutions to promote productive entrepreneurship, these efforts have been consistently undermined by destructive entrepreneurs. We find in our case study that destructive entrepreneurs strategically protect their entrepreneurial endeavors through various nefarious mechanisms, thereby ensuring the sustainability of their profitable, destructive ventures. The institutional change necessary to economic development is undermined when destructive entrepreneurs have access to and power over the institutional entrepreneurs.
Purpose
The purpose of this paper is to offer a first review of the literature focusing on cultural characteristics and values that impact on entrepreneurial behavior and activities to gain a first-hand overview of the state of the art in this field of research. In the following section, some of the most important concepts, theories and empirical papers are drawn from the existing research to frame and shape the literature review. In particular, section two identifies some of the most compelling factors influencing entrepreneurship behavior, including entrepreneurship education, entrepreneurial self-efficacy, national institutions, entrepreneur-specific characteristics, contextual characteristics and national culture. These six underlying factors are generally viewed in the literature to explain why and how behavior varies across entrepreneurs.
Design/methodology/approach
The methodology involves bibliometric analysis of the scholarly literature on entrepreneurial behavior more generally, and in particular, the role of culture. Studies listed in the Web of Science since 2000 are scanned, which generated 1,520 articles with the theme of entrepreneurial behavior. Using standard and widely accepted bibliometric techniques, a careful inspection of the original search is reduced to 582 articles. The particular inclusion criteria are carefully discussed and documented in this section, along with the keywords utilized in the search algorithm.
Findings
By systematically assessing the extant literature review, findings and methods of the top 25 cited articles in the field are presented so as to identify content, methodology, direction of the literature and the opportunities for future research. An important finding is the preponderance of quantitative studies and the lack of qualitative studies in this field. Therefore, the conclusion emphasizes the need for future research with a variety of methodological approaches to how national cultural settings impact entrepreneurial behavior. Such new studies can be useful for understanding entrepreneurship and how governments can tailor entrepreneurial programs that fit the country’s context.
Research limitations/implications
The qualification involves the key phrases and words employed in the bibliometric algorithm to undertake the search and identify the relevant literature. In fact, the entrepreneurship research field is a relatively young field (Acs and Audretsch, 2006). The time period: Given that some of the most important scholars and journals addressed the topic before the new century, there is no doubt that important research was published prior to the year 2000. However, we focused on the current century due to the sudden increase of research in this topic that occurred in 2015. The restriction to the English languages in implementing the bibliometric algorithm: Such an obstacle is common in bibliometric searches, due to the different spelling used in keywords. However, this bibliometric search run could successfully identify the different spellings of the word “behavior” and “behaviour”.
Originality/value
This paper fills a research gap by addressing an emerging research area that has been receiving increasing attention recently due to the growing demand for understanding the differences of entrepreneurial responses and behaviors in national cultural settings. Presently, very few systematic reviews of literature exist that specifically cover the impact of national cultural practices, characteristics and values on entrepreneurial behavior. The paper introduces a bibliometric review of literature of refereed published articles in the field of entrepreneurship behavior from 2000 until 2021, with a focus on publications that include the keywords “local/national culture/cultural characteristics/cultural values influence on entrepreneurial behavior” in their title or abstract. The paper shows that the number of publications has been rising within the last few years, indicating the growth of interest in the field of cultural impact on entrepreneurship and specifically, entrepreneurial cognition, intention and behaviors.
There has been an increase in the number of businesses owned by women, however most women businesses are stuck in micro and small levels failing to scale up to medium sized or large enterprises. The objective of the study was to determine the Effects of knowledge and skills on the growth of small-scale women owned businesses in Awendo sub county, Migori county Kenya. The study was supported by Marxist and socialist feminism theory by Karl Marx and human capital theory. The study employed a cross-sectional survey and was purely qualitative study. The study targeted 364 registered women businesses at Awendo Municipality. The sampling frame was created by employing purposive sampling techniques. This study utilized an interview guide enhanced by direct observation to collect the required qualitative data. The focus group discussions were used in the study and comprised of a minimum of 4 groups. The study adopted the content analysis approach to analyses data. The study sought to collect data from 110 respondents. From the samples participants 92 respondents took part in the study. This represented a response rate of 83.63%. Bryman and Bell (2014) contend that a response rate of at least 50% to a research instrument is satisfactory to proceed with statistical analyses; a rate of 60% is good enough and 70% is excellent. From the data collected, the inadequate knowledge by the women entrepreneurs hindered the growth and their expansion of the businesses. The study recommended that the policy makers at both County and National level need to institute proper policies that support small-scale businesses and more so those operated by women. The study also recommends that the government needs to facilitate and encourage training and awareness campaigns on entrepreneurship and digital innovation for rural development at Awendo sub-County and other Counties.
Entrepreneurial orientation (EO) is critical for firms navigating dynamic environments, yet
the mechanisms driving its development remain underexplored. This study examines the role
of entrepreneurial alertness (EA) as a mediator linking environmental dynamism to EO and
firm performance. We argue that while information acquisition reduces uncertainty, excessive
focus on gathering information without adequate processing can lead to inefficiencies and
missed opportunities. This imbalance may hinder the development of EO and adversely affect
firm performance. Using data from 209 small and medium enterprises (SMEs) in Ghana,
collected across multiple informants in two waves, our findings provide empirical support for
the proposed model. The study contributes to the EO literature by demonstrating the
relationship between information acquisition and processing in fostering EO and
performance. It also cautions against the risks of overemphasising one dimension at the
expense of the other in dynamic environments. Additionally, we extend the conceptualisation
of EA by demonstrating that its dimensions operate through flexible, non-linear pathways,
enabling entrepreneurs to adapt their information-processing strategies to the demands of
dynamic environments.
The current study aims to measure the effect of entrepreneurial self-efficacy on improvisational behavior in private universities in central and southern Iraq, and to identify the reality of the situation of the universities in the study community to help them solve the problems they face and develop appropriate solutions to overcome these problems. To reach the goal(s) of the study, the questionnaire form was used as a tool for the study and was prepared according to the five-point Likert scale, as it consisted of two axes. The first axis included entrepreneurial self-efficacy as a main variable consisting of: Five dimensions are (Entrepreneurial creativity , planning and organizing resources , ambiguity management , financial knowledge) included (4) items based on the scale (Moberg, 2013). The second axis focuses on improvisational behavior as a main variable consisting of three dimensions: (creativity, proactiveness, and risk-taking) by relying on the scale (Jong et al., 2013), which includes (3) items for each dimension. (420) questionnaires were distributed to investors, owners, and leaders working in universities, and (393) questionnaires were returned, meaning that the response rate was 94%. After scrutiny, (9) questionnaires were excluded because they did not meet the conditions of statistical analysis, so that the sample was (384). Therefore, the sample was (384). The number of questionnaires suitable for analysis was (369) questionnaires after deleting (15) answers as they were considered anomalous data. The descriptive analytical method was relied upon in this study. For the purpose of analyzing the data collected, some statistical methods were used, such as the arithmetic mean, standard deviation, coefficient of variation, as well as the structural modeling equation (SEM), the simple correlation coefficient, and impact analysis using the Smart PLS statistical analysis program. Several results were reached, the most important of which is the existence of a correlation and influence between the variables of the study. Although this relationship varies at the level of sub-dimensions, the most prominent recommendations of the study are to work to achieve a balance between the need to make quick decisions while adhering to procedures and responsibilities.
İşletmeler, üretim faktörlerini bir araya getirerek toplumun mal ve
hizmet ihtiyaçlarını karşılayan ekonomik birimlerdir. İşletmeler, bu ihtiyaçların
karşılanması sürecinde hem istihdam imkânları sağlayarak hem de ekonomik
genişleme ve canlanmaya hizmet ederek ülke ekonomilerine fayda sağlarlar.
Bu açıdan bakıldığında işletme sayılarının artması ekonomi için önem arz
etmektedir. İşletme sayılarının artmasının yanında, hayatta kalması ve başarı
düzeylerinin artması, sundukları sosyal ve ekonomik faydaların devamlılığını
sağlayan diğer önemli hususlardır.
İşletmelerin başarı düzeylerini etkileyen birçok unsur bulunmaktadır. Bu
unsurlar işletmenin kendi iç çevresinden veya kontrol edemediği dış
çevresinden kaynaklanmaktadır. İşletmenin iç çevresinde başarıyı etkileyen
birçok unsur bulunmaktadır. Bu unsurların bir bölümü, işletmeyi kuran veya
devralıp yöneten girişimcinin bireysel olarak sahip olduğu sermaye türleri ile
ilgilidir. Sermaye teorilerinin gelişmeye başladığı erken dönem araştırma
aşamalarında, girişimcilik araştırması sermaye teorilerini benimsemiş ve
girişimcinin bireysel olarak sahip olduğu sermaye türleri ile ilgilenmiştir. Bu
sermaye türlerinin işletmenin başarısındaki rolü üzerine birçok çalışma
yapılmıştır.
İşletme başarısının ve girişimcinin bireysel olarak sahip olduğu sermaye
türlerinin tanımlandığı, yapılmış çalışmaların incelendiği ve ülkemizde işletme
başarılarını arttırmak üzere önerilerin geliştirildiği bu kitap “Girişimci
Sermayesinin Girişim Başarısına Etkisi” isimli doktora tez çalışmasından
türetilmiştir.
Armed Robbery as a Determinant of Women’s Participation in
Entrepreneurial Activities in Ondo State
Poverty has always been an integral part of many schedule Tribes (ST) in India and the Tribes in Tripura has no escape from the problem. According to the National Family Health Survey; ST is considered the poorest people in India. Entrepreneurship has been widely accepted as the best instrument for alleviating poverty. Yet many entrepreneurs are operating at the subsistence level to attain the basic livelihood. Through this study, the researchers attempt to investigate if Subsistence Entrepreneurship helps in alleviating Poverty and if the demographic factors affect the performance of the subsistence entrepreneurs amongst Jamatia Tribe in Tripura. The data collected for a pilot study from 100 subsistence entrepreneurs belonging to the Jamatia Tribe in Tripura has been used for the study. The data collection involves the translation of schedule questionnaire from English to Kokborok (local Language). The findings indicate that Subsistence Entrepreneurship plays an important role in alleviating poverty but only to the extent that they eke out of extreme poverty.
Human resource management policies and entrepreneurship are linked. New businesses in the high technology sector are competing for employees in a tougher labor market than most businesses face. Like all businesses, they must attract, recruit, and keep skilled workers. They must also find ways of motivating these workers throughout their careers in a highly competitive and quickly changing market. We propose two perspectives on organizational change--a developmental and an evolutionary--to aid our investigation of the following questions: Do new firms start with effective HRM policies? If not, why not? If yes, how do owners learn about effective policies? If firms don't start with effective policies, do or can they eventually develop or adopt them? How quickly do effective HRM systems arise? We review the literature and suggest four sets of factors that might be used in answering these questions: characteristics of founding teams, a firm's initial workforce composition, the structure of an organization, and a firm's institutional context.
Utilizing data collected from the 1980 public-use sample of the U.S. Census, we examine the effect of percentage foreign born in the labor force upon aggregate self-employment rate in 272 SMSAs. Because mean self-employment among the foreign born was higher than among the native born, an increased percentage in the foreign born in a SMSA labor force caused increased aggregate self-employment. Also, as a result of renewed immigration during the 1970s, and the resulting increase in the foreign-born component of the civilian labor force, nonfarm self-employment in the United States increased about 3% above what would have been expected from a comparable "influx" of native-born workers. Depending on which method of estimation one selects, this immigration-prompted increase explains from 16% to 52% of the decade's total increase in nonfarm self-employment, a surprising reversal of nearly 10 decades of uninterrupted decrease. Rate of self-employment among immigrants had no effect upon the rate of or returns to self-employment of native-born workers in general or native blacks in particular.
Used a nonprojective measure of achievement motivation to investigate the relationship among need for achievement (nAch), labor turnover, and occupations in New Zealand. Questionnaire results from 315 entrepreneurs, engineers, accountants, and middle managers revealed low turnover among high nAch self-employed Ss. High-turnover Ss displayed significantly higher achievement motivation levels than low-turnover Ss. Among engineers, accountants, and middle managers, those with high nAch had high labor mobility rates. Results are supportive of D. C. McClelland's theory and demonstrate the feasibility of extension of the model through use of nonprojective research methods. (18 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This study utilises the Miner Sentence Completion Scale Form T, translated into Russian, to compare the entrepreneurial motivation of 120 Russian managers interested in entrepreneurial activity with an American sample found in Miner (1986). This contrast shows very substantial differences between the two groups. After four years a follow-up study was conducted on the Russian sample. Of the 120 managers who originally took the MSCS, 58 men and women were found actually engaged in running their own businesses. Comparing this follow-up sample with a similar one provided by Miner, Smith, & Bracker (1994) shows very little difference between American and Russian active entrepreneurs. Correlations of MSCS Form T with two criteria of entrepreneurial success show similar positive results for both samples. Implications for use of the test by Russian authorities are discussed.
On utilise dans cette recherche l’Echelle de Comple`tement de Phrases de Miner (MSCS) forme T, traduite en russe, pour comparer l’esprit d’entreprise de 120 cadres russes tente´s par l’activite´ d’entrepreneur avec celui d’un e´chantillon ame´ricain e´tudie´ par Miner (1986). Cette confrontation met en e´vidence de tre`s nettes diffe´rences entre les deux groupes. L’e´chantillon russe a e´te´ revu quatre ans plus tard. Sur les 120 cadres du de´part, 58 hommes et femmes furent retrouve´s a` leur compte. La comparaison de cet e´chantillon avec un autre comparable pre´sente´ par Miner, Smith, & Bracker (1994) de´tecte tre`s peu de diffe´rences entre les entrepreneurs actifs russes et ame´ricains. Les corre´lations du MSCS forme T avec deux crite`res de succe`s pour l’entrepreneur de´bouchent sur des re´sultats positifs analogues dans les deux e´chantillons. Le proble`me de l’utilisation du test par les autorite´s russes est aborde´.
This paper establishes a case that firms seek rent without specializing in rent-seeking business: A government collects taxes and redistributes the revenue among the firms. Firms manipulate their rewards by affecting the way government collects taxes or allocates transfers. Their competitive rent-seeking efforts waste society's entrepreneurial resources and trap the economy in a suboptimal equilibrium. The study examines how the primary tax rate and the entry or exit of firms affect rent-seeking waste.
Start-up companies present many uncertainties for both entrepreneurs and seed capital investors. Although both seek financial rewards, they typically have different perceptions about what must be done to achieve them.The strong vision of the entrepreneur is often based on a compelling fascination with a new product. He knows that business issues are important but believes they can be dealt with routinely if the product is clearly superior.Venture capital investors encounter good ideas every day. The business issues are the critical factors for them and they must be planned carefully if the promise of the entrepreneur's vision is to be realized.These different concepts for creating wealth come together in the negotiation process for seed capital investments in start-up enterprises. The author studied six factors that enter into these negotiations. They are market, product, team, risk, time, and deal. He conducted a survey of venture capital organizations to assess the relative importance of these factors in determining the outcome of negotiations.The survey sent questionnaires to 137 members of the Western Association of Venture Capitalists. Each respondent was asked to complete it for three negotiations that succeeded and three that failed. Eighty-nine questionnaires were returned from 18 respondents reporting on 47 negotiations that succeeded and 42 that failed.The results suggest that business factors are more important than product characteristics for successful negotiations. Among the business factors, markets that offer unconstrained opportunities for rapid growth are significantly more important than the completeness of the team, a credible business plan, rapid return on investment, or favorable terms. The most important reason for failure of negotiations is a business plan in which too many things could go wrong, even where there are strong market opportunities.Both entrepreneurs and investors should find these results useful. Entrepreneurs need not approach venture capitalists if they are not part of a rapidly growing market or cannot create a new one with no constraints on the growth of their companies. Given good market opportunities, business plans must be readily believable to avoid failure of negotiations. Products need not promise major improvements over others in the market, but they must have a competitive edge. Although the team must be highly qualified, it does not necessarily need to be complete at the start-up stage.Investors may be interested to know that successful negotiations typically do not depend on unusually rapid return on investment or particularly favorable investment/equity ratios. They can expect negotiations to fail if the business plan is very risky, even where market opportunities are good.
Some of the factors in an individual's life that contribute to and manifest their entrepreneurial orientation are identified. The proposed model hypothesizes that such orientation is derived originally from family background. The derivation is perhaps indirect in that family background strongly affects intermediate variables such as education, and goal orientation and motivation, which also affect or at least manifest entrepreneurial orientation.
The issue of whether state-sponsored investment incentives stimulate the formation of new businesses has not been resolved for a lack of adequate measures of state policy activity and because researchers have failed to consider the effects of other, perhaps more important, features of states' political economies. The purpose of this research is to examine the political-economic determinants of new business formation across the American states between 1970 and 1985. Methods. This research tests the effects of a new measurement model of states' economic development policies and other factors suggested by Gordon, Edwards, and Reich's framework of social structures of accumulation using pooled cross-sectional time series analysis techniques. Results. Results show that new business formation is related to several dimensions of states' political economies, including the organizational capacity of labor, social wage policies, fiscal capacities, and the political/electoral context of states. By contrast, state-sponsored economic development policies have minimal effects. Conclusions. Findings attest to the severe problems that states face in trying to replace businesses lost to deindustrialization. They likewise cast doubt on the conventional wisdom of "state entrepreneurship.".
A model of the relationships between pre-organlzational Information processing and environmental load specifies an interaction effect on new organization creation. The model proposes that levels of Information-processing ability In pre-organlzational networks can be either superoptimal or suboptimal relative to the levels of environmental load encountered by intending entrepreneurs. Either condition will reduce the likelihood that the entrepreneurs’ Intentions will be realized. However, when an appropriate balance between Information-processing ability and environmental load Is achieved, the likelihood of new organization creation increases. Environmental load Is described in terms of information load and information diversity. Entrepreneurs’ information-processing ability is specified In terms of pre-organlzational size, interconnectivity, and frequency of communication.
Past studies have corroborated the hypothesis asserting that family ties and co-ethnic bonds are instrumental in the growth of ethnic enterprise. Many of these studies, however, can be challenged on methodological grounds. This article uses data from two samples of Cuban exiles to test the hypothesis in a manner which addresses the challenges. Results offer minor support for the hypothesis. Because our test has dealt with methodological uncertainties that previous research overlooked, the negative nature of our results raises questions about the explanatory power of the family ties/co-ethnic bond hypothesis.
Assuming that certain personality tendencies are a necessary condition for entrepreneurial behaviour, an approach toward the measurement of entrepreneurial potential is suggested here. Measures of three personality characteristics: need achievement, dependency, and achievement orientation, are used as the basis for a measure that is meant to discriminate entrepreneurs from non-entrepreneurs. The measure, which is built on the discriminatory power of its' items rather than on their internal consistency, significantly discriminated a group of Israeli entrepreneurs from a control group of non-entrepreneurs. This finding supports the measurement approach taken here and can be interpreted as a step towards the development of a measure of entrepreneurial potentials.
Interest in the personality of entrepreneurs has grown as we try to better understand the characteristics and attitudes of this economically important group of people. Kirton's Adaption-Innovation (KAI) Theory describes deep-seated differences in styles of creativity, decision making, and problem solving that appear to be relevant to entrepreneurship. Previous studies suggest that entrepreneurs should score higher on the Kirton Adaption-Innovation Inventory than non-entrepreneurs. To test this hypothesis, and to confirm that KAI scores do not change as a result of training, we administered the KAI to 34 business students in a class in entrepreneurship at the beginning and end of the semester. A control group of 24 students received the same treatment. As hypothesized, the mean KAI scores for the entrepreneurship class were higher than both the population at large and the control group, and did not change systematically over time.
Reinforcement control and achievement motivation measures were given to 29 black individuals engaged in operating small businesses, and their level of business activity was assessed 18 months later. Individuals with a high need to achieve were found to be significantly more active than those whose achievement motivation was low. Activity scores of internal locus of control individuals were significantly higher than those of externals. Internals with a high need to achieve were significantly more active than all others. It was inferred from the data that thoughts are most successfully translated into action when the individual feels in control of his fate and recognizes the steps that are instrumental in reaching goals.
Business plans that were funded by venture capitalists were compared to unfunded plans. Comparisons on the basis of plan structure, plan organization, and financial projections indicate that plans which deviate too far from the norm of the variables studied tend to go unfunded. Implications for plan preparation are discussed.
The entrepreneur, in one form or another, has been around a long time in both economic theory and empirical studies of entry. Argues that these traditions have exhibited an over-concern with the entrepreneur's function at the expense of the supply of entrepreneurs, an area which has received only sporadic attention in the literature. It is this supply aspect which is critical to economic development and economists should now devote more attention to it.
This investigation provides new data and commentary on several neglected topics: employment contributions of microbusinesses, characteristics of the selfemployed, business survival rates, and psychological and social aspects of new business ownership. A survey and archival analysis of 413 retail and service establisments that began operation in 1985 is reported. The modal staff size of these establishments was three persons; 28% had no employees. Women, young people, and Latinos were among the larger groups of employees, although employment patterns varied according to size and type of business. The typical owner was male, white, in his 30s or 40s, and relatively inexperienced in business. Fifty-nine percent of the establishments survived two years; survival was associated with corporate ownership, with the owners' reliance on the business for a livelihood, and with their prior employment experience.
This paper examines incentives for investment in inventive activity in an environment subject to informational constraints. On the one hand the inability of the public to monitor such investments suggests that inventors should bear a high share of the risk associated with their efforts. On the other hand, the very novelty of an invention could make it difficult to sell to a skeptical public. This difficulty could induce an inventor to engage in costly signalling activity. This papers considers this friction, and the nature of contracts which balance the incentive to invent against the incentive to signal. Optimal contracts are interpreted in terms of financial arrangements between entrepreneurs and investors.
We find that the hazard rate confronting new establishments in U.S. manufacturing tends to be reduced in industries where scale economies play an important role. New establishments can reduce the risk of failure by increasing their start-up size. These relationships are affected by both the ownership structure of the establishment and the technological environment.
This paper examines the determinants of self-employment among married women. The study uses these results to assess the impact of selectivity bias, due to self-employment decisions, on the earnings of wage/salary and self-employed workers.
Successful entrepreneurial activity is a major source of job creation and a vital part of a healthy market economy. This article
examines the attitudes that, taken collectively within a region, may contribute to a climate that is conducive to and supportive
of this activity. Four different components that characterize these attitudes are identified—the willingness to take risks
and accept the possibility of failure, the perceived difficulty of starting new firms, the importance and respect accorded
to new and small firms and their owners, and the socialization children are likely to receive from their parents. These attitudinal
components are related to measures of the structure and performance of the respondent's local economy and to individual factors.
The most important finding is that pro-entrepreneurial attitudes are lower among individuals working in large organizations
and among those who live in areas dominated by large organizations regardless of the size of their own employer. Other measures
of the local economy, such as past success in creating new businesses, were not associated with differences in attitudes.
Attitudes also are related to individual attributes such as age and income.
Previous studies have shown that a wife's education increases the labor market productivity of men. This paper finds that such effects are stronger within families who are entrepreneurs in the family business. The analysis also examines factors which determine the decisions of men and women to work in the family business versus seeking alternative employment as a worker. The study considers both the effects of wife's education on husband's earnings and of husband's education on wife's earnings conditional on the choice of employment status.
This research focused on differences between rural and urban entrepreneurs. It replicates and extends a study of New England managers using data from 926 firms in rural North Florida. Probit and ordered probit models were used to analyze data. Entrepreneurial status and measures of firm performance were related to psychological traits. Type A behavior, need for achievement, ascendancy, emotional stability, and personal relations were the traits which differentiated founders and nonfounders. No major differences in psychological traits were found between rural and urban managers. Thus, psychological traits do not seem to pose constraints on expansion of entrepreneurship in rural areas.
Using data from the Federal Trade Commission 's Line of Business Program and survey measures of technological opportunity and appropriability conditions, this paper finds that overall firm size has a very small, statistically-insignificant effect on business unit R&D intensity when either fixed industry effects or measured industry characteristics are taken into account. Business unit size has no effect on the R&D intensity of business units that perform R&D, but it affects the probability of conducting R&D. Business unit and firm size jointly explain less than 1 percent of the variance in R&D intensity; industry effects explain nearly half the variance. Copyright 1987 by Blackwell Publishing Ltd.
