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Entrepreneurship Through Social Networks

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Abstract

The formation of new businesses can be conceptualized as a function of opportunity structures and motivated entrepreneurs with access to resources. On the demand side, opportunity structures contain the environmental resources that can be exploited by new businesses as they seek to carve out niches for themselves. On the supply side, motivated entrepreneurs need access to capital and other resources so that they can take advantage of perceived opportunities. A cursory examination of this formulation reveals two essential issues that research on entrepreneurship must address: (1) Entrepreneurship is a process and must be viewed in dynamic terms rather than in cross-sectional snapshots; and (2) entrepreneurship requires linkages or relations between key components of the process.
... Incubation centres are praised for their ability to create employment and generate wealth thereby reducing poverty levels (Aldrich & Zimmer, 2011). Ombagi (2010) further acknowledges that business incubations create a platform for entrepreneurs to access business information, knowledge, networks, and finances for startups. ...
... Many authors have claimed that collective attitudes, beliefs and values determine the entrepreneurial decisions of group members and are linked to their intentions for business creation (Gorgievski et al., 2018), thus influencing the level of entrepreneurship in society (Hechavarr ıa, 2016; Shapero and Sokol, 1982;Strauß et al., 2021). Numerous studies also emphasize the importance of the social and cultural conditions under which entrepreneurs enter the market for their success (Aldrich and Zimmer, 1986;Morris et al., 2002;Portes, 2013;Shakeel et al., 2020). As indicated by Cabarcos et al. (2006), this approach emphasizes social and cultural factors in explaining entrepreneurial decisions, since individual perceptions and behaviors are largely determined by the context and the shared beliefs of society (Krueger et al., 2000). ...
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Purpose Entrepreneurship is presented as a vehicle for innovation and social development. Given the importance of entrepreneurship, the objective of this study was to analyze the psychological and sociological dimensions by determining the factors that explain individual perceptions and cultural support for entrepreneurship. Design/methodology/approach Using Global Entrepreneurship Monitor (GEM) data obtained from the Adult Population Survey (APS) ( N = 2,500) in the region of Andalusia (Spain), a quantitative analysis was carried out, specifically a multivariate analysis based on four-stage linear regressions. Findings The variables examined do not explain the psychological and sociological dimensions to the same extent. The results highlight the existence of cultural homogeneity between provinces, the importance of sociodemographic variables and the influence of the entrepreneurial expectations and experiences of the population, especially in shaping individual perceptions towards entrepreneurship. Research limitations/implications The replication of the study at the national and international levels is proposed in order to delve deeper into the cultural differences that condition entrepreneurship. Including new variables associated with entrepreneurial human capital could also be of interest. Practical implications The results can help to improve the design and implementation of policies and programs aimed at fostering entrepreneurship through the promotion of favorable individual perceptions and entrepreneurial culture. Originality/value The originality of this study is the consideration of individual perceptions and cultural support for entrepreneurship as dependent variables, since they are normally incorporated as explanatory factors. The results contribute to the advancement of knowledge of the entrepreneurial phenomenon through two approaches, psychological and sociological.
... In the context of the social network, entrepreneurship is embedded in networks of continuing social relations and is facilitated or constrained by linkages between aspiring entrepreneurs, resources and opportunities (Aldrich & Zimmer, 1986). Entrepreneurs are highly dependent on the social network to acquire necessary resources, such as capital and information, to launch their careers (Evans & Jovanovic, 1989;Westlund et al., 2014;Zhang, 2020). ...
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Entrepreneurial activities differ substantially across populations. However, whether and how the entrepreneurial culture can contribute to these variations are not yet well understood. Using internal migrants instead of international migrants widely used in previous research, this study proves the original entrepreneurial culture’s persistent effects on migrant entrepreneurship. With a unique database, the China Labor-force Dynamics Survey (CLDS), we reveal that every additional start-up per 1000 people in the city of origin in 2004 is associated with a 3.2% increase in the probability that the internal migrant will start a business in host cities during 2014 and 2016. Our results are consistent with several robustness tests, confirming the existence and persistence of the original entrepreneurial culture. Further analysis reveals that entrepreneurial culture of origin leads to migrant entrepreneurship through enhancing social networks, promoting role models, and cultivating traits that favor entrepreneurship. Through these channels, the intangible entrepreneurial culture of origin can be transformed into tangible business opportunities and migrants’ willingness and capability to do business, which stimulates their entrepreneurial activities in host cities.
... Terbentuknya sikap berbagi pengetahuan dan perilaku penciptaan bisnis baru tidak bisa dilepaskan dari modal sosial yang dimiliki oleh individu (Aldrich & Zimmer, 1986). Kuatnya ikatan jaringan yang dimiliki individu dan itikad baik dari modal sosial yang dimiliki seperti teman, keluarga, dan kerabat akan meningkatkan akses terhadap sumberdaya dan informasi yang dibutuhkan untuk menciptakan bisnis baru dan komitmen untuk melaksanakan arahan yang diterima. ...
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The purpose of this study is to examine the role of individual entrepreneurial orientation and knowledge-sharing attitudes on the influence of religion on the creation of new businesses. Data were collected from 300 millennial and post-millennial generations in Yogyakarta. Regression analysis with the bootstrap method was used to test the hypothesis. The results prove that individual entrepreneurial orientation and knowledge-sharing attitudes mediate the effect of religiosity on the creation of new businesses. The limitation of this study lies in the ability to explain the variations and dynamics of the new business creation process that differs from the identified stages.
Chapter
There has been an increased level of unemployment generally—especially among the youth—and this has been associated with a mismatch between the number of workers joining the labour market and the capacity of the economy to create new jobs, leading to various forms of solutions being put forward.
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In Africa, Small and medium enterprises (SMEs) are notably the engines that drive economic development. Unfortunately, over 32 % of SMEs fail before they celebrate their second birthday. In Uganda, entrepreneurs are creative, recognize opportunities and endeavour to exploit them; however, the failure rate of SMEs is still great. Despite the Ugandan government trying to invest in entrepreneurship programs, SMEs have continued to fail. This study explored the effect of opportunity recognition and design thinking, and financing decisions on entrepreneurial success among SME owners in Kampala, Central division, Uganda. The study adopted a cross-sectional research design and quantitative method. The findings revealed a positive effect of opportunity recognition, design thinking, and financing decisions on entrepreneurial success (F=0.443, Sig = 0.000). The variables explained 55% of the variance of Entrepreneurial success (R Square =0.555; Adjusted R Square = .541). It was concluded that opportunity recognition, design thinking, financing decision strategies are essential for SME success. The study recommends that SMEs should design and implement sustainable and effective opportunity recognition, adopt design thinking, and effective financing decision strategies, which ultimately lead to entrepreneurial success of SMEs.
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Educators and policymakers have sought to open entrepreneurship to a broader range of students. The paper investigates the role of entrepreneurship education in the development of People with Physical Disabilities (PWPDs) and the moderating role of inclusion in their entrepreneurial action. This research employed a cross-sectional survey of 253 students with physical disabilities across tertiary institutions in Nigeria. The findings underscore the significant role of entrepreneurship education in enhancing the entrepreneurial action of physically disabled students. The finding of the study established the moderating role of inclusion in the relationship between entrepreneurship education and the entrepreneurial action of physically disabled students. This implies that the commitment of the educators to accept and support physically disabled students in the class will create an environment in which physically disabled students can learn to monitor and respond to entrepreneurial changes in the environment. This will in turn prepare them to engage in a business start-up. This research highlights that entrepreneurship education and inclusion make significant contributions to physically disabled students' entrepreneurial action. Therefore, these factors are key to consider in preparing physically disabled students to become entrepreneurial graduates. The study contributes to the extant literature by underscoring the value of creating an environment of inclusion in entrepreneurship education.
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This study aims to evaluate the impact and weight of several cognitive, demographic, social, and cultural factors on the prospect of emerging as an entrepreneur in the agricultural sector in countries widely becoming agrarian. This study uses a data set of 799 respondents from nine emerging agrarian countries provided by the largest entrepreneurship research project, GEM. The data was analyzed by employing logistic regression. The outcomes depict that the inclination and propensity to commencing a new agricultural business are guided by opportunity perception, self-efficacy, a business angel, income, education, and work status. The government should try to enhance and develop an agri-entrepreneurial ecosystem to facilitate collaboration, interaction, and mobilization of resources in these countries. For this purpose, incubation centers should be established to help farmers understand market-oriented agricultural businesses. Relevant insights are derived about whether and how the cognitive, cultural, social, and demographic influence the tendency to initiate a new business in the agricultural sector in emerging agrarian countries.
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