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Entrepreneurship during economic crisis: Success factors and paths to failure

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Abstract

This paper identifies the combinations of fundamental entrepreneurial factors that drive the growth of new businesses under different economic conditions. Using data from the Global Entrepreneurship Monitor (GEM) survey, the study focuses on two moments in Spain's recent economic cycle: the 2008 economic crisis and the economic boom prior to this downturn. The study presents an application of fuzzy-set qualitative comparative analysis (fsQCA) to identify the basic entrepreneurial characteristics (opportunity recognition and innovation) and drivers of entrepreneurship (necessity vs. opportunity) that increase the likelihood of success for new businesses during these two periods in the economic cycle. Results reveal that necessity-driven entrepreneurship is ineffective during recessions and that innovation and opportunity recognition are more relevant as success factors during periods of recession than during periods of prosperity. Results also show that the entrepreneur's perception of opportunities may be misleading in strong economies.

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... Although the existence of exogenous shocks is widely accepted by mainstream business scholars, their timing and severity cannot be forecast, and the extant literature overlooks how small business owners and entrepreneurs should respond to crises (Doern et al., 2019;Saridakis, 2012). Yet, relatively few studies examine how small firms survive during exogenous shocks or recover afterwards (Davidsson and Gordon, 2016;Devece et al., 2016;Pearce and Michael, 1997;Pearce and Robbins, 1994;Smallbone et al., 2012). When such attention is given, much of it focuses upon the social aspects of entrepreneurship in response to crises Shepherd, 2016a, 2016b). ...
... Therefore, not every action by a struggling entrepreneur would qualify as a meaningful pivot. The entrepreneurship literature distinguishes between necessity-and opportunity-driven entrepreneurial initiatives (Devece et al., 2016); while necessity motivates a substantial share of individual efforts at enterprising (Devece et al., 2016), it rarely results in purposeful testing of fundamental hypotheses in order to find the most attractive opportunity to pursue -an essential part of pivoting. Opportunity-driven initiatives appear more promising in this regard, although for existing small firms that promise is substantially constrained for a number of reasons. ...
... Therefore, not every action by a struggling entrepreneur would qualify as a meaningful pivot. The entrepreneurship literature distinguishes between necessity-and opportunity-driven entrepreneurial initiatives (Devece et al., 2016); while necessity motivates a substantial share of individual efforts at enterprising (Devece et al., 2016), it rarely results in purposeful testing of fundamental hypotheses in order to find the most attractive opportunity to pursue -an essential part of pivoting. Opportunity-driven initiatives appear more promising in this regard, although for existing small firms that promise is substantially constrained for a number of reasons. ...
Article
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Following major exogenous shocks, firms often contemplate business model pivoting where they change product or service offerings to capitalize on emerging opportunities. We assess potential bright and dark sides of pivoting for new and existing firms in regard to quality of opportunities, fit with current capabilities, and potential costs. Extant literature suggests that two forms of opportunities exist, arbitrage and innovation. We discern that post-shock, new firms may be better positioned to pursue arbitrage opportunities whereas existing firms should target innovation. Existing firms may have more complications when pursuing arbitrage due to resource embeddedness and stakeholder obligations, and have a greater ability to innovate with an established resource base. Conversely, new firms can capitalize on arbitrage due to lack of embeddedness since arbitrage requires a significant investment in opportunity selection. Additionally, we offer suggestions for future research in regard to the current pandemic and more broadly exogenous shocks.
... This distinction is important because motivation can influence the way an entrepreneur manages their business and can thus influence their performance (Hessels et al., 2008). Pull factors attract entrepreneurs to create businesses and to seize market opportunities (Devece et al., 2016). The entrepreneurs motivated by opportunity tend to be more ambitious than entrepreneurs motivated by necessity (Verheul and Mil, 2011) although, after the crisis, only the export-oriented entrepreneurs are more motivated by opportunity (Giotopoulos et al., 2016). ...
... The push factors refer to external conditions that force people to be entrepreneurs, due to the lack of viable alternatives (Devece et al., 2016). Individuals can be pushed into entrepreneurship for economic needs. ...
... In addition to unemployment, push factors include seeking autonomy and difficulties in finding work caused by educational level, race, social level, or gender (González-González et al., 2011). Economic crises and periods of high unemployment may draw individuals into self-employment due to the absence of other opportunities (Dawson and Henley, 2012), but entrepreneurs motivated by necessity have weak growth prospects during the recession and contribute primarily to self-employment (Devece et al., 2016). ...
Article
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This paper aims to analyse the changes on the profile of the European agricultural entrepreneurs after the recent financial crisis, that began in 2008, given the impact of the crisis on European economic activity and the lack of studies on agricultural entrepreneurship. Using individual-level data from the total early-stage entrepreneurial activity for the European agricultural sector in 2007 (before the crisis) and 2012 (after the crisis), taken from the global entrepreneurship monitor, we investigate if after the crisis changes the role of motive, demographic and economic factors (gender, age, education, household income), perceived characteristics (opportunity perception, self-confidence, fear of failure, meeting other entrepreneurs) and innovativeness (clients, technology, competition). This study includes 22 European countries and the results allow us to conclude that the role of these variables is changed by the crisis, except for the role of gender, to meet other entrepreneurs, customers and competition, which may reflect specific characteristics of the agricultural sector.
... For Hundt et al. [54], the intention to start up an entrepreneurial project is conditioned, in addition to individual characteristics, by the conditions of the economic context, an aspect that must be taken into account to explain entrepreneurial intention, as well as its antecedents [55]. ...
... On the other hand, the promotion of entrepreneurship is one of the measures usually considered as a response to situations of economic crises [9], although according to the results obtained by Devece et al. [55], entrepreneurship out of necessity in situations of economic recession is less effective than that arising from the recognition of opportunities. In this sense, Aparicio et al. [56] find a positive relationship between the generation of entrepreneurial projects by opportunity and the economic growth of a given territory. ...
... In this sense, Aparicio et al. [56] find a positive relationship between the generation of entrepreneurial projects by opportunity and the economic growth of a given territory. This is why the development of entrepreneurial projects that take advantage of opportunities generates regional economic growth that is greater than that of entrepreneurship for necessity, since, while the latter is limited to solving short-term problems, opportunities can have a long-term impact [55]. ...
Article
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The interest in promoting social entrepreneurship projects lies in their ability to develop innovative solutions to social and environmental problems. This ability becomes even more important in situations of global crises such as that arising from COVID-19. Based on the Theory of Planned Behavior (TPB), an explanatory structural model of social entrepreneurial intention was tested, and the impact of the COVID-19 crisis on this intention was evaluated. To do this, a quantitative investigation was conducted using a survey of Spanish university students, obtaining a total of 558 responses: 324 before the COVID-19 crisis and 234 during the crisis period (February and June 2020). The results obtained make it possible to validate the explanatory model of social entrepreneurial intention from the perspective of the TPB. In addition, it shows that social entrepreneurial intention decreases in times of deep socioeconomic crises and high uncertainty, such as that caused by COVID-19.
... This distinction is important because motivation can influence the way an entrepreneur manages their business and can thus influence their performance (Hessels et al., 2008). Pull factors attract entrepreneurs to create businesses and to seize market opportunities (Devece et al., 2016). The entrepreneurs motivated by opportunity tend to be more ambitious than entrepreneurs motivated by necessity (Verheul and Mil, 2011) although, after the crisis, only the export-oriented entrepreneurs are more motivated by opportunity (Giotopoulos et al., 2016). ...
... The push factors refer to external conditions that force people to be entrepreneurs, due to the lack of viable alternatives (Devece et al., 2016). Individuals can be pushed into entrepreneurship for economic needs. ...
... In addition to unemployment, push factors include seeking autonomy and difficulties in finding work caused by educational level, race, social level, or gender (González-González et al., 2011). Economic crises and periods of high unemployment may draw individuals into self-employment due to the absence of other opportunities (Dawson and Henley, 2012), but entrepreneurs motivated by necessity have weak growth prospects during the recession and contribute primarily to self-employment (Devece et al., 2016). ...
Article
This paper aims to analyse the changes on the profile of the European agricultural entrepreneurs after the recent financial crisis, that began in 2008, given the impact of the crisis on European economic activity and the lack of studies on agricultural entrepreneurship. Using individual-level data from the total early-stage entrepreneurial activity for the European agricultural sector in 2007 (before the crisis) and 2012 (after the crisis), taken from the global entrepreneurship monitor, we investigate if after the crisis changes the role of motive, demographic and economic factors (gender, age, education, household income), perceived characteristics (opportunity perception, self-confidence, fear of failure, meeting other entrepreneurs) and innovativeness (clients, technology, competition). This study includes 22 European countries and the results allow us to conclude that the role of these variables is changed by the crisis, except for the role of gender, to meet other entrepreneurs, customers and competition, which may reflect specific characteristics of the agricultural sector.
... According to Fard, Aniri, Oboudi and Ramezani (2018), "the main difference between Ajzen and Shapero models relates to the axes of a propensity to act and the role of social norms, such that Ajzen's model implies the role of perceived social pressure to act or not to act" (p.176). Thus, a person's intentions enable him or her to hold certain values and to strive to uphold those values-despite various barriers to doing so (Devece, Peris-Ortiz and Rueda-Armengot, 2016;Kebaili, et al., 2015). Many researchers (e.g. ...
... Being an entrepreneur means making difficult choices, sometimes even to the point of abdicating things that have been important to them (Ozaralli & Rivenburgh, 2016). According to Devece, et al. (2016), negative (push) and positive (pull) factors attract individuals to creating their own business. Push factors can be economic necessity or unemployment; pull factors are characterized as affirmative events: the need for achievement; a locus of internal control; and a strong sense of personal capacity for achievement. ...
Chapter
Entrepreneurial intention presumes that new business formation is a deliberately designed behavior and is the first step in new business formation. What is the basis of these intentions? In this review chapter, the authors consider spirituality has been seen as a strong predictor of a successful entrepreneur, who bases the company on personal values, that is, economic values are not the most important. If we consider spirituality as a form of intelligence that can be developed, it can be seen as a coping mechanism in the field of entrepreneurship, especially in decision making. A spiritual and resilient entrepreneur has the key to personal fulfillment and sustainable lifelong performance at extraordinary levels.
... Nonetheless, to create an opportunity, a person needs skills in a number of items such as leadership, decision making, human resource management, strategy design, financing, marketing, and attaining competitive advantage (Jamali et al., 2018); the mentioned factors and skills are not easily developed in poor people as they are faced with many other issues, hindering them to develop their own skills. Thus, a pushed entrepreneur, on the other hand, is someone who cannot find a good job and has no chance to earn a stable salary, thus pursing a personal, self-owned and self-managed business (Binder and Coad, 2013;Devece et al., 2016). There are a remarkable body of studies on necessity-based entrepreneurship and pushed entrepreneurs, but there are also a number of questions regarding the difference between these two types of entrepreneurship: what type of entrepreneurial opportunities does pushed entrepreneurs usually qualify for and undertake? ...
... A sub-topic of interest in this category is the productivity and efficiency of necessity-based entrepreneurship and its role in economic growth. Although necessity-based entrepreneurship is introduced as a way to escape poverty for many deprived and underprivileged people (Downing, 2012;Poschke, 2013;Devece et al., 2016;Sserwanga and Rooks, 2013), it is not considered by some scholars as a factor effective in economic growth (Popescu and Drǎghici, 2012;Maritz, 2004a). In some other works, necessity-based entrepreneurship is recognised much as a survival strategy, rather than a fruitful economic activity (Chrysostome, 2010). ...
... This will be a strong disincentive for the intention to start up Arrighetti et al, 2016). Alternatively, individuals who see risk as an opportunity (Nabi and Liñán, 2013) will be prepared to identify and willing to exploit high-quality opportunities caused by the above-mentioned shocks (Giotopoulos et al, 2017;Devece et al., 2016). But this effect will likely be smaller than is the case for necessity-motivated potential entrepreneurs, at least initially. ...
... In the case of opportunity and/or ambitious entrepreneurial projects and opportunities, we can anticipate smaller numbers but higher quality (Giotopoulos et al., 2017). Therefore, a higher share of the new ventures will be started by necessity-motivated individuals and will most probably exhibit low development prospects and potential (Devece et al., 2016). Figure 2 presents the breakdown of actual early-stage entrepreneurial activity by motives in some countries. ...
Article
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Purpose: The Covid-19 pandemic has affected the world in an unprecedented manner. The economic recession in 2020 is expected to be the most serious since World War II. The present article analyses the likely consequences of the Covid-19 pandemic crisis on entrepreneurship and new venture activity with a particular focus on emerging economies. Design/methodology/approach: The paper focuses first on the major shocks caused by the pandemic that may affect entrepreneurial activity. To do so, we briefly review the literature about the previous financial crisis and its effects on entrepreneurship. Then, the manuscript means to disentangle how these shocks will impinge on the different stages and motives within the entrepreneurial process. Findings: Our analysis reveals that the consequences of the pandemic for entrepreneurship will be generally damaging, but they may not be so tremendously negative as originally thought. We could initially expect a broad downturn in entrepreneurial activity. Soon after that, however, necessity entrepreneurship is likely to boom. At the same time, but to a lesser extent, high-potential entrepreneurial activity could also be fostered, provided the recovery is quick and there is sufficient support from the environment and institutions. Originality/value: This is probably one of the first academic reflections on the likely effects of the Covid-19 pandemic on entrepreneurship. It specifically addresses the role of institutions and how they may differently affect necessity and opportunity entrepreneurship. It also suggests interesting, related research areas and some basic recommendations on how to help entrepreneurs overcome it. Acknowledgements:
... Perceived low cultural tolerance is more likely to aggravate the entrepreneurial stigma (Singh et al., 2015), which thus hinders the entrepreneurial activities (Simmons et al., 2014). The combination of fundamental entrepreneurial factors is identified as the driving force for the growth of new businesses under different economic conditions (F 18 ) (Carlos et al., 2016). Human and social capital (F 19 ), organizational systems, industry characteristics (F 20 ) and knowledge network are combined to facilitate or restrict growth (Anderson et al., 2007;Macpherson and Holt, 2007). ...
... Firstly, our study sorts out 24 influencing factors of entrepreneurial learning from failure according to literature review, and proposed a hierarchical model of influencing entrepreneurial learning from failure through the expert method based on ISM method of system dynamics. Existing studies have explored a lot of factors affecting entrepreneurial failure learning from three levels, including individual, enterprise and environmental aspects (Shepherd et al., 2009b;Carlos et al., 2016;Vivianna et al., 2017). We carry out a comprehensive research and present an intuitive ISM (as shown in Figure 1) for researchers. ...
Article
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Based on the interpretive structure model of system dynamics, this paper constructs a hierarchical structure model of factors affecting the entrepreneurial learning from failure, which has been also tested through a case of entrepreneurship. The study finds that: (1) there are 15 factors influencing entrepreneurial learning from failure that play different hierarchical roles; (2) the entrepreneurs' self-efficacy, as a key influencing factor of entrepreneurial learning from failure, can be cultivated and improved by enriched the entrepreneurs' successful career experience. In addition, emotion regulation after the entrepreneurial failure is also a key influencing factor of the entrepreneurial learning from failure and the emotion management is deemed as an important part of entrepreneurship education; (3) the entrepreneurial education may affect the entrepreneurship learning from failure indirectly by affecting the entrepreneurs' self-efficacy; (4) the economic conditions, the policy support, the industry characteristics and the cultural sensemaking of failure are the macro factors that may affect the entrepreneurship learning from failure.
... ECO - (Devece et al., 2016, Laasch, 2018 ...
... SOC (Devece et al., 2016, Potts et al., 2015 ENV12: Climate change adaptation/disaster risk management It refers to the development, field testing and promotion of a "climate-smart approach to disaster risk management" (Mitchell, 2010). It includes lifecycle analysis, product disassembly analysis, post-sale tracking, and reverse logistics. ...
Article
Sustainability concepts showcase significant value in construction projects. The discipline of project management is also integrating sustainability issues into its approaches. Under this notion, this study explores the integration of sustainability indicators into project management practices of construction projects. Current literature discloses many indicators/key factors as contributing towards the sustainability success of construction projects. However, the lack of an all-encompassing categorization creates difficulties in directing project managers towards their proper utilization. This paper aims to contribute towards the holistic view of sustainability in project management, especially for construction projects. A systematic literature review was conducted towards the understanding of the key topics and the findings were validated through semi-structured interviews. Eighty-two (82) sustainability indicators related to project management practices in construction projects were finally identified. Their categorization into economic, environmental and social/management sustainability indicators was completed through semi-structured interviews with construction experts and via previous literature analysis. The economic related indicators finalized in 27; 18 for the environmental dimension and 37 indicators were included in the social/management dimension. This study contributes to research on sustainable project management for construction projects in two main ways: (1) it provides a holistic view of sustainable project management indicators, covering the full spectrum of the triple constraint (TBL); (2) it offers the possibility for practitioners to choose the right mix of indicators, depending on the sustainability focus they want to provide in their projects.
... Nonetheless, to create an opportunity, a person needs skills in a number of items such as leadership, decision making, human resource management, strategy design, financing, marketing, and attaining competitive advantage (Jamali et al., 2018); the mentioned factors and skills are not easily developed in poor people as they are faced with many other issues, hindering them to develop their own skills. Thus, a pushed entrepreneur, on the other hand, is someone who cannot find a good job and has no chance to earn a stable salary, thus pursing a personal, self-owned and self-managed business (Binder and Coad, 2013;Devece et al., 2016). There are a remarkable body of studies on necessity-based entrepreneurship and pushed entrepreneurs, but there are also a number of questions regarding the difference between these two types of entrepreneurship: what type of entrepreneurial opportunities does pushed entrepreneurs usually qualify for and undertake? ...
... A sub-topic of interest in this category is the productivity and efficiency of necessity-based entrepreneurship and its role in economic growth. Although necessity-based entrepreneurship is introduced as a way to escape poverty for many deprived and underprivileged people (Downing, 2012;Poschke, 2013;Devece et al., 2016;Sserwanga and Rooks, 2013), it is not considered by some scholars as a factor effective in economic growth (Popescu and Drǎghici, 2012;Maritz, 2004a). In some other works, necessity-based entrepreneurship is recognised much as a survival strategy, rather than a fruitful economic activity (Chrysostome, 2010). ...
Poverty is an ever-increasing economic problem and a number of theorists have introduced entrepreneurship as a solution to poverty. However, a small number of studies have theorised, modelled, or analysedentrepreneurship’s contribution to poverty alleviation. In view of that, this study aimed to systematically review previous research on poverty-related issues discussed in entrepreneurship literature to identify common poverty-related issues addressed by entrepreneurship literature. This study as a systematic literature review (SLR) was conducted on a total of 175 papers that were classified into 11 main categories, each representing a major poverty-related issue discussed in entrepreneurship literature. The findings of this study indicate that although many efforts have been made to cover the poverty-related issues in entrepreneurship studies, such as the necessity-based entrepreneurship, entrepreneurship in rural areas, and the empowerment of poor people for undertaking entrepreneurial activities, there are still many dimensions of poverty untouched.
... For Start-ups, finance has been a major issue in many parts of the world. This challenges cannot be neglected and solved by individual entrepreneurs themselves, but requires government to create financial incentives (Devece, Peris-Ortiz, & Rueda-Armengot, 2016;Berger, 2014). Berger (2014) also found that poor business planning and lack of inter-firm cooperation between small firms and weaker relations with financial institution lead to failure of start-ups. ...
... The empirical results should be interpreted cautiously. It is clear that especially the exceptionally low values of r and g due to financial crisis period at least to some degree affect the results [24] [25]. However, alternative values of the discount rate applied to calculate DCF did not alter the conclusions. ...
... Thus we believe that the field of entrepreneurship research is at the dawn of a new era, with the potential to build upon prior 1 Note that while interaction effects can be tested by symmetric analysis, the regression coefficient found is the net effect or average for all cases in the sample, and thus is not necessarily applicable to any particular case within the sample. 2 Muñoz and Dimov (2015) found two main alternative configurations for the development of sustainability-oriented new ventures; Beynon et al. (2016) examined the relationship between entrepreneurial attitudes and entrepreneurial activity at the national level of analysis; Devece et al. (2016) identified configurations of antecedent conditions that increase the likelihood of success for new ventures; and Muñoz and Kibler (2016) examined which combinations of local institutional forces play the largest role in determining social entrepreneurs' confidence in their ability to achieve their social objectives. Other entrepreneurship scholars have used the configural approach prior to the advent of the fsQCA software (see, e.g. ...
Article
Entrepreneurship theory has largely been developed and tested using symmetrical correlational methods, effectively describing the sample-average respondent and subsuming individual differences. Such methods necessarily limit investigation of asymmetries that are evident in entrepreneurship, and provide only a single explanation that belies the multiple pathways to entrepreneurship observed in practice. This paper employs a case-based approach—fuzzy-set Qualitative Comparative Analysis (fsQCA)—to identify configurations of antecedent attributes of individuals in groups within samples, thereby revealing asymmetries and multiple entrepreneurial pathways that are otherwise hidden in the data. We explain the application of fsQCA to reveal these common issues in entrepreneurship; demonstrate how fsQCA complements correlational methods and offers finer-grained understanding of individual entrepreneurial behavior; and offer a comprehensive research agenda to build new entrepreneurship theory.
... The coefficient of the regression equailon ( This study also indicates that entrepreneurial outcome is positively and significantly related to the intentions related to ideas and skill. This study finding is supported by other studies as well (Cefis & Marsili, 2018;Devece et al., 2016;Franga & Rua, 2017;Hyytinen, Pajarinen & Rouvinen, 2015;Stewart et al., '1999;Wokoun, Kolao[k & Kolaolkov6, n.d.) Entrepreneurs create jobs; employ people and have concern for them. Thus, there is an element of altruism in entrepreneurship. ...
Article
Entrepreneurial intentions and outcomes differ and this research investigates if intentions influence the outcomes. Factor analysis of the 20 items related to the entrepreneurial intent construct was done to group it to 7 parsimonious factors. Reliability of self-reported 4 item scale for the entrepreneurial outcome was tested. Total entrepreneurial outcome factors were regressed with 7 intentions factors as the independent variables to understand its influence on the total outcome. This research indicates that the entrepreneurial outcomes (income and savings, social respect, career, and overall satisfaction) are positively and significantly influenced by intentions such as esteem seeking, idea & skill, and altruism; but negative significant influences were observed for intentions related to necessity and alertness. The intention factors related to individualism and kinship had insignificant positive and negative relationship with outcomes respectively.
... Positive results like that are common in entrepreneurs who is trying to take the advantage from market opportunities because entrepreneurs have extraordinary knowledge about identifying any opportunities [2]. Shane also mentioned that successful nature of the new business is just a beginning, it depends on the readiness of the youth to turn their unique ideas into business [3]. ...
... To date several authors have used the fsQCA methodology to analyse issues related to entrepreneurship (Devece, Peris-Ortiz, & Rueda-Armengot, 2016;Kuckertz, Berger, & Allmendinger, 2015;Mandl, Berger, & Kuckertz, 2016;Rey-Martí, Tur-Porcar, & Mas-Tur, 2015;Ribes-Giner et al., 2018). In this research, the fs/QCA software, v. 3.0, was used to apply the fuzzy QCA methodology (Thiem & Dusa, 2013). ...
Article
There are two main reasons when entrepreneurs decide to start a new venture: opportunity and necessity. Opportunity-driven entrepreneurship is expected to provide a stronger long-term positive impact than necessity-driven entrepreneurship. This study aimed to identify the combinations of the economic and sustainable development factors of countries that may be related to opportunity-driven entrepreneurship. In order to identify the combinations of the Sustainable Development and Economic aspects influencing opportunity-driven entrepreneurship, we analysed the data for 2017 from 57 countries. For this purpose, we conducted a cross-national analysis using the fsQCA methodology, which has proved suitable for small-sized datasets. Data were retrieved from four databases: Global Entrepreneurship Monitor, Country Risk Score, World Bank Database, and Sustainable Development Goals Index. Thus to analyse opportunity-driven entrepreneurial motivation, we considered economic and financial aspects jointly with social and gender equality, education, responsible production, innovation and infrastructure indicators.
... The positive impact of new firm formation rate and economic growth means that the French government should sustain entrepreneurial activities [31]. According to this latter study, the necessity of entrepreneurship implies that there are sufficient prospects for significant growth. ...
Article
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This study offers a novel analytical approach on the relationships between renewable energy consumption, capital, labor force, new firm formation rate, and economic growth. It aims to investigate such causal relationships using different estimation techniques such as the ordinary least squares (OLS) model, dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and canonical cointegrating regression (CCR), along with necessary condition analysis (NCA), which are applied to data for France over the period 1987–2017. Our results show that all necessary conditions yield outcomes ranging from small- to large-sized effects on economic development. The French government should readdress its efforts towards encouraging more beneficial investments in renewable energy consumption. This study opens up new insights for policymakers to maintain environmental protection and ensure sustainable economic growth. Finally, the use of NCA reduces complexity and allows a better understanding of the relationships involved.
... Entrepreneurship is a global phenomenon that has attracted the interest of both governmental and non-governmental organisations, both private and public, to promote an entrepreneurial culture and society (Devece et al., 2016;Tang and Koveos, 2004;Timmons, 1990). ...
Article
Purpose The aim of this study is to explore which factors of entrepreneurship and innovation influence economic development under the quadruple helix model, contrasting Southern and Northern Europe. Design/methodology/approach In this study, secondary data are collected from the Global Entrepreneurship Monitor databases, Organization for Economic Co-operation and Development and Global Competitiveness Index, for four countries in the North and four Southern European countries, for the period from 2007 to 2015. Data was analyzed with SPSS 22.0 software and subjected to several multivariate statistical tests. Findings The results show a statistically significant difference in the variables of the four quadruple helix model dimensions. This means that Northern European countries (Finland, the Netherlands, Norway and Sweden) display better results on innovation and entrepreneurship than Southern European countries (Spain, Greece, Italy and Portugal). The results also showed that per capita gross domestic expenditure on R&D is positively related to government and university dimensions, with significant differences between Southern and Northern European countries. Originality/value It is hoped that this study will contribute to new evidence on the factors of innovation and entrepreneurship that are decisive for economic development. To the traditional quadruple helix model, control variables were added to meet the endogenous characteristics of the countries.
... On the other hand, internal factors refer to personal characteristics of the entrepreneurial team as well as to other firms' characteristics. The former includes the founder's previous business experience (Cooper et al. 1994;Sarasvathy et al. 2013;Van Praag 2003), level of education (Davidsson and Honig 2003;Ganotakis 2012), and attitudes to recognize an opportunity or risk propensity (Devece et al. 2016). Entrepreneurs with previous experience seem to have a better understanding of the entrepreneurial processes and of the different phases that characterize the life cycle of start-ups compared with inexperienced entrepreneurs (Van Praag 2003). ...
Article
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Although start-ups’ survival has been widely investigated, only few studies have focussed on the impact of the combined effect of firms’ internal resources. Drawing upon the resource-based view (RBV), we selected four internal resources influencing start-ups’ survival (R&D activity, advertising activity, export activity, and human capital) and we applied the fuzzy set qualitative comparative analysis (fsQCA) to examine which interactions among the said internal resources affect start-ups’ survival. We used a unique dataset of 38 start-ups accelerated in Italy in 2013. Our findings suggest that, among the various combinations of internal resources considered, the interaction between export activity and human capital is the only one that affects start-ups’ survival. On one hand, the interaction between these two resources amplifies the effect of the learning by exporting on start-ups’ survival. On the other hand, export activity provides the knowledge necessary to exploit the potential of qualified human capital.
... Ritchie, 2003), natural disaster (e.g. Flynn, 2007, Bresciani, et al, 2002Fabeil, et al, 2019), economic and financial crisis (Devece, Ortiz & Armengot, 2016) and inadvertent disaster and terrorisms (Cook, 2015). There is still a lack of literature on the impact of new and emergent crisis like a pandemic outbreak on micro-enterprises. ...
Article
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Covid-19 pandemic outbreaks have led many countries to impose travel restrictions and movement controls. In Malaysia, the small business sector is one of the most directly affected by the movement's control order. In fact, the impact is more significant among micro-enterprises than its larger counterparts. Entrepreneurs experience business cancellation or closure and reduced income due to the closure of several supporting sectors such as retails and transportation. There is still a lack of study on the impact of a pandemic outbreak on micro-enterprises in developing countries, especially in relating to business continuity and recovery strategy. It is crucial to explore how micro-entrepreneurs experience crisis and what decision they make for business survival. This study represents the perspectives of two micro-entrepreneurs in the rural area of Sabah, about their business continuity strategy during movement control order. The results of unstructured phone interviews provide insights on business survival approach and recovery plan of micro-enterprises during and after a crisis. This study will hopefully contribute towards the creation of effective support mechanisms through associated entrepreneurial development organizations for micro-entrepreneurs to thrive during and after a crisis.
... After the Great Recession, recent studies have analyzed the effect of the recessionary context on entrepreneurial intention, finding empirical evidence that the economic crisis impacted negatively on potential entrepreneurs' assessment of environmental conditions, subsequently shaping his/her intention to create a new venture [18,19]. Recent studies focusing on entrepreneurship in Spain or Greece during the Great Recession points out how a recessionary context shapes other aspects of entrepreneurial process such as venture's success or failure [20,21], firm behavior [22] or entrepreneurs' perceptions [23], for both commercial and social entrepreneurship [24]. ...
Article
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There is a consensus among researchers that one of the most important effects of the recent economic downturn that started in 2009-also known as the Great Recession-in Spain has been rising income inequality. In this context, researchers are concerned about the effects of inequality on the economy, and this concern is even more marked now, when the world is facing a new crisis that seems the equal of, or even more devastating than the last Great Recession as a consequence of Covid-19. Nevertheless, there is a lack of studies which consider the effects of inequality on entrepreneurship. This paper aims to contribute to a deeper understanding of the relationship between inequality and entrepreneurship in the context of an economic downturn. We focus on the 17 autonomous communities in Spain during the Great Recession (2007-2013). Using unbalanced panel data, we study the effect on entrepreneurial activity, differentiating between total, necessity-and opportunity-driven entrepreneurship. The contribution of this paper is twofold. First, our results offer new empirical evidence concerning the relationship between growing inequality and entrepreneurial activity, showing significant differences from results in the existing literature. Second, we explain how, in a recessionary context of highly restricted financial resources, inequality can negatively affect total, necessity-and opportunity-based entrepreneurship, preventing a large part of the population from engaging in this activity.
... Things have changed, and the future is uncertain. In this commentary, we discuss entrepreneurship as a means of transitioning from surviving to thriving [1][2][3]. ...
Article
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The COVID-19 pandemic has not only had a significant and catastrophic effect on business and economies globally, but has identified the external and internal enablement of new venture creation. This paper aims to provide entrepreneurship insights, implementations and dynamics to demonstrate the role of entrepreneurship in times of such adversity within an Australian context. We provide emergent enquiry narratives from leading Australian scholars, identifying entrepreneurial initiatives as a catalyst to new venture creation and growth. Narratives include insights associated with the entrepreneurial mindset, the multidimensional effects of resilience and entrepreneurship, entrepreneurship education, entrepreneurship enablers and the entrepreneurial ecosystem. Opportunities for further research are identified, particularly regarding context and empirical outcomes. We postulate that entrepreneurship may well be the unsung hero during the current COVID-19 economic crisis.
... Mellahi and Wilkinson (2010),Khelil (2010),Hammer and Khelil (2014),Devece et al. (2016),Cordes et al. (2010), andYakovleva et al. (2016).The nexus of psycho-economic factors and opportunistic behaviorBehavioral Determinants of Enterprise Development and Innovation Anna Ujwary-Gil, Natalia Potoczek (Eds.) Research FrameworkSource: conception of the authors, adopted fromMellahi and Wilkinson (2010),Khelil (2010),and Hammer and Khelil (2014). ...
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This paper investigates and discusses individuals’ internal circumstances as factors that may cause entrepreneurial failure, which consists of psycho-economic phenomenon and opportunistic behavior of individuals. The study is a quantitative study, and it operates relational analysis that relates existing arguments regarding psycho-economic factors to entrepreneurial failure. The study further adds and analyses the construct of opportunistic behavior as another possible factor that may cause entrepreneurial failure. The sample of the study is 1541 young entrepreneurs in West Sumatra Province, Indonesia, who have experienced failures in their previous businesses. The analysis was undertaken by using multiple and partial regression analysis in which the statistical protocol was operated. It is found that psycho-economic factors, together with opportunistic behavior of individuals in a lesser to a greater degree, have caused entrepreneurial failure to the context of the study. The study also implies and argues that opportunistic behavior may not only be viewed as a source of entrepreneurial success, as it also contributes to entrepreneurial failure. This finding clearly demonstrates the originality and value of this study since it argues that opportunistic behavior can also be viewed as a factor – apart from the other existing psycho-economic factors (deterministic, voluntaristic, and emotive) – that can cause entrepreneurial failure. The study further suggests that strengthening entrepreneurial personality, characteristics and psychological aspects should be a focus for the Indonesian government in promoting and developing young-nascent entrepreneurs.
... Devece, Peris-Ortiz, and Rueda-Armengot (2016) also analyze factors related to the success and failure of entrepre- neurs under different economic conditions. They focused on the economic crisis and economic boom in Spain noting that innovation is a basic factor for success for a typical entrepre- neur during an economic crisis. ...
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This research aims to study the success factors of an online entrepreneur. With the recent rapid growth of the online market for different goods and services, the need to investigate the business strategy of online entrepreneurs in specific markets such as in Thailand and extract relevant success factors is dire. The researcher collected data by using a seven-point Likert-type scale that measured the responses of 180 online businesses in Bangkok, Thailand. The study used Structural Equation Modeling (SEM) and Statistical Package for the Social Sciences (SPSS) for statistical analysis. The results indicated that the thirteen most relevant factors related to an online entrepreneur are ACO, EOU, government support, networking, risk-taking propensity, reliability, AFF, BIM, logistics and transportation, product quality, product price, advertising on social media and staff and employee.
... The conditions for supporting entrepreneurship and innovation during crisis are especially challenging for entrepreneurs and small businesses due to the high levels of economic uncertainty created (Doern, 2016). Conversely, entrepreneurs play a crucial role in helping economies overcome crisis through the generation of innovations that support, inter alia, new ways of working (Devece, Peris-Ortiz & Rueda-Armengot, 2016). Crisis can encompass different forms, one of which is a global pandemic. ...
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Call for a Special issue of Teaching Case Studies on: Entrepreneurship in Times of Crisis. Deadline for submission of the submission of case studies. March 2021. Overview and purpose of the special issue These are unprecedented times for entrepreneurs, innovators and their ventures in all sectors. Some have repurposed their venture and expertise to support the common effort to support communities and frontline workers. Others face critical decisions about the future viability of their ventures. However, there is a dearth of teaching case studies to support the teaching in this area. The International Journal of Entrepreneurship and Innovation is issuing a call for case studies that address issues related to the impact of crisis on entrepreneurship, innovation and related areas.
... Some businesses may put in place contingency plans in an attempt to anticipate the emergence of a crisis and its direct consequences, but this is quite rare in small entrepreneurial settings (Yamakawa and Cardon, 2017). Crises are, therefore, more severe for small entrepreneurial firms, who suffer from structural liabilities (e.g., liability of smallness, liability of newness), which in turn limit their prompt response to external shocks that challenge their current operations (Devece et al., 2016). Entrepreneurial self-efficacy and resilience have been highlighted as crucial factors that may favor business growth under adverse conditions (Bullough et al., 2014). ...
Article
The rapid emergence of the COVID-19 crisis has challenged both private and public firms, requiring them to reshape their internal processes and external linkages in the fight against the virus, but also to survive the disrupting economic impact of the pandemic on their activities. Academic spinoffs have not been exempted from these dynamics. In this paper, we present and discuss a case study of an academic spinoff, Omnidermal, which has developed a new, efficient and easy-to-realize emergency life support machine for use in intensive and sub-intensive care units. This case, apart from offering information on the best practices of how spinoffs may contribute socially to the fight against COVID-19 and-more in general-against other exogenous shocks, also provides insights on their stages of development, evolution patterns and ability to define new solutions. The case shows that when the market needs are clear to a firm (as in the case of medical devices during the COVID-19 crisis), the 'legacy competences and practices' of spinoffs (i.e., technical competences and work practices) can be fully exploited to compress the development time and to realize products demanded by the market. We also identify access to a network as being an essential boundary condition for this process. These results introduce an alternative scope for academic spinoffs. Given the 'legacy competences and practices' they are able to develop, they are ideal candidates to respond to the societal and economic challenges posed by a crisis over short periods of time. On the basis of these insights, we draw a series of implications for practitioners, policy makers and academics.
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Entrepreneurship is a widely used mechanism to generate employment and increase production levels. However, it does not always arise spontaneously and rather requires the promotion of public policy. In this context, the objective of this article is to examine the effect of human capital on the rate of regional entrepreneurship in Ecuador. We use data published by the National Institute of Statistics and Census. In order to capture the spatial contagion produced by the emergence of new companies and the territorial mobility of human capital, we estimate a set of spatial lag (SAR), spatial error (SEM), Durbin spatial error (SDM) and lag and spatial error (SARMA) models. Our results show the importance of including the role of space in the understanding of the interactions between territorial units and suggest that human capital has a positive effect on the rate of regional entrepreneurship with spatial spillover. The results are consistent with the inclusion of a set of control variables related to the endowments of the regions. An implication of public policy derived from our research is that public planning aimed at promoting the emergence of new companies must consider the role of the spatial contagion of entrepreneurship and the territorial mobility of human capital.
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Performance research on incubation is a vibrant and complex field, which has received a lot of criticism in recent studies. So far, no dominant theory for incubation performance has evolved and authors request the application of more diverse economic frameworks on incubation to gain improved understanding. As a response, this study takes the fresh perspective of dynamic capabilities and resource-based theory as the baseline for the creation of a new model for incubation performance. By utilizing a qualitative research approach combining data from interviews and observations, the case of VentureLab, a Swedish university incubator, is presented and explored along various theoretical dimensions. The data is then used to adapt the theoretical performance model to practical reality within the incubator and draw conclusions on hurdles for customized or personalized incubation programs and for future methodologies in incubation research. The study concludes by pointing towards the positive effects of dynamic capabilities based on entrepreneurial satisfaction, motivation, personality, psychological state, resource needs and stakeholder expectations on incubation performance.
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Im Bereich der künstlichen Intelligenz (KI) wurde in den vergangenen Jahren ein neuer Reifegrad der zugrunde liegenden technologischen Voraussetzungen erreicht. Diese sind zum Treiber autonomer Systeme in allen Lebensbereichen geworden und haben das Potenzial einer Wertschöpfungssteigerung in erheblichem Ausmaß. Über zukünftige Auswirkungen konnten bis jetzt noch keine belastbaren Vorhersagen getroffen werden und Befürchtungen eines dramatischen Einschnitts in die Arbeitswelt mit Implikationen für die Gesellschaft werden intensiv diskutiert. Aufgrund dieser Unsicherheit über die zukünftige Entwicklung ist es wichtig die Rahmenbedingungen des lokalen Ökosystems krisensicher und risikominimierend zu gestalten. Die Konzepte der resilienten Gesellschaft sowie der Transformation greifen diese Überlegungen auf. Neugründungen setzen etablierte Unternehmen unter permanenten Innovationsdruck und sind entscheidend für den innovationsgetriebenen Strukturwandel und die Schaffung zukunftsfähiger Arbeitsplätze. Darüber hinaus üben die Rahmenbedingungen eines Gründungsökosystem einen signifikanten Einfluss auf den Erfolg der Gründungsaktivitäten aus. Aktuelle Beispiele aus der KI-basierten Gründungsszene in Karlsruhe werden zum Verständnis möglicher Auswirkungen auf die Arbeitswelt und die Gesellschaft in Fallstudien herangezogen.
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The main purpose of this chapter is to examine how country’s institutional context influences the way in which entrepreneurial activity affects social progress. Following the theoretical approach of institutional economics, we test our hypotheses using pooled data of 62 countries (2012 and 2014) and simultaneous equation model estimation. The findings suggest that business regulations decrease entrepreneurial activity, while established democracies provide as government context conducive to entrepreneurship. In addition, we find that the entrepreneurial activity has a positive impact on the Social Progress Index, which is an alternative measure of economic performance. Policy and theoretical implications are discussed from these findings.
Article
Entrepreneurs play a central role in generating and adopting both technological and non‐technological innovations. However, existing research provides little guidance on how entrepreneurs interpret their endeavours to generate and implement different types of innovation. This paper addresses this void by bringing metaphor analysis into the field of innovation. We argue that the role of figurative language is important in describing the complexity that characterizes the innovation process. Examining qualitative data from episodes of innovation narrated by a sample of Italian entrepreneurs, this paper provides insights into how each type of innovation (product, marketing, process, organizational and strategic) is described differently, through the use of metaphorical language. This research advances the literature by providing a conceptualization of the different metaphor themes entrepreneurs ascribe to each type of innovation, and discusses practical implications for how the metaphorical language can be analysed and interpreted so that the innovation process can be improved.
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Business owners experience uncertainty about the future when facing a minimum wage increase. Given the highly competitive markets in which they operate as well as their extreme resource constraints, rural small businesses are exceptionally vulnerable when facing a minimum wage increase, yet little research existed about how a minimum wage increase affected small business, especially those in rural communities. The purpose of this qualitative multi-case study was to explore rural small business owner decision-making when faced with a 20% increase in the minimum wage and how these decisions affected the small business. This study focused on rural small businesses in Yuma, Arizona which encompassed communities within a 50-mile radius located near the southwest border of Arizona, California, and Mexico. Answering open-ended, semi-structured questions, 13 small business owners described the actions they took when the Arizona minimum wage increased by 20% on January 1, 2017 and how it affected their business. This study’s predominant conclusion is that a 20% minimum wage increase resulted in reduced net income, wage compression, increased expectations of employee efficiencies, increased product prices, changed hiring practices, the consideration to automate, decreased employment opportunities, as well as a diminished incentive for small business ownership. The adjustments that these rural small business owners made resulted in the owners struggling to break-even and facing great uncertainty about the future with minimum wage increases up to $12.00 per hour planned by 2020. Recommendations for future research include expanding the study population to all rural Arizona communities, comparing rural and urban small business decision-making, and studying small business market entry and exit as an adjustment channel.
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Using a qualitative multi-case study, I explored how rural small business owners adjusted to a 20% minimum wage increase in Yuma County, Arizona.
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The moment of great political and economic instability in Brazil since its worsening in 2015 until the first semester of 2018 is analyzed by this research through its implications on the business model of a business school. Through the characterization of the previous business model and subsequent to the political-economic crisis with implications on the Lato-Sensu post-graduation, it is sought to identify which influences and which changes were strategically significant for this Institution. The theoretical approaches of strategy and business model identifies the gap for future studies that investigate the background and antecedents of changes in the business model. Through the qualitative approach of case study, with the use of primary and secondary data, using direct non-participant observation, documentary analysis and semistructured interviews, the main influences were investigated and identified from the economic crisis in the business model. The data suggests that the economic crisis modified the business model of the business school surveyed. These research findings were contrary to Wirtz et al. (2016) showing change of the business model may occur in the short term. Additionally, this research contribution shows empirically evidenced of the response of a business school during the crisis period.
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p>Las contribuciones de los emprendedores tecnológicos como impulsadores de la innovación, y esta como fuente de crecimiento y desarrollo económico han cobrado gran importancia en la agenda pública mundial. América Latina no es ajena a esto; los gobiernos de la región se han preocupado por incentivar el desarrollo tecnológico mediante el impulso del emprendimiento con base tecnológica. En este contexto, el presente documento tiene por objeto analizar los determinantes de los emprendimientos tecnológicos y su impacto, considerando factores socioeconómicos y de mercado. Para realizar dicho análisis se utilizan dos herramientas: un modelo probabilístico, para examinar una muestra de 12 países de América Latina en el periodo 2010-2013, y la metodología de Propensity Score Matching, para evaluar el impacto de los emprendedores tecnológicos sobre las ventas y la educación de los trabajadores.</p
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El emprendimiento es un mecanismo ampliamente utilizado para generar empleo y aumentar los niveles de producción. Sin embargo, no siempre surge de forma espontánea y más bien requiere del impulso de la política pública. En tal contexto, el objetivo de esta investigación es examinar el efecto del capital humano en la tasa de emprendimiento regional en Ecuador; utilizamos datos publicados por el Instituto Nacional de Estadísticas y Censos. Con el fin de capturar el contagio espacial que produce el nacimiento de nuevas empresas y la movilidad territorial del capital humano, estimamos un conjunto de modelos de rezago espacial (SAR), de error espacial (SEM), espacial de Durbin (SDM) y de rezago y error espacial (SARMA). Nuestros resultados destacan la importancia de la inclusión del rol del espacio en la comprensión de la interacción entre unidades territoriales y sugieren que el capital humano posee un efecto positivo en la tasa de emprendimiento regional con derrames espaciales. Los resultados son consistentes ante la inclusión de un conjunto de variables de control relacionadas con las dotaciones de las regiones. Una implicación de política pública derivada de nuestra investigación es que la planificación pública orientada a promover el nacimiento de nuevas empresas debe considerar el rol del contagio espacial del emprendimiento y la movilidad territorial del capital humano.
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This paper examines sustainable entrepreneurship over time by focusing on the identification of the combinations of environmental factors (clean water and sanitation, affordable clean energy, urgent action to combat climate change, and life on land) and economic development factors (decent work and economic growth). Based on data from 50 countries, it examines the causal configurations behind the manifestations of these factors using fuzzy‐set qualitative comparison analysis. The variables and data were derived from the Global Entrepreneurship Monitor and the Sustainable Development Goals Index. Our key finding is that protecting and sustainably using terrestrial ecosystems always have a sufficiently positive effect to ensure a high level of sustainable entrepreneurship. Also, high levels of sustainable use of terrestrial ecosystems and sustainable growth and decent work, plus good access to affordable and sustainable energy and clean water are related to promote sustainable entrepreneurship.
Article
The literature focusing on rural and urban entrepreneurship has so far overlooked the conditions in which different institutional contexts can affect firms’ performance. The present study addressed this gap by investigating the extent to which institutional factors impact distinctively the performance of rural and urban newly created ventures. Based on data gathered through a direct questionnaire, we obtained 408 responses from newly created ventures located in Portuguese business incubators and science parks. Resorting to econometric binary (logit) models, we found that certain institutional factors, namely EU policy support, financial support from other sources than not banks, business advice for starting up/ ongoing activities, and collaboration to access new markets, are critical for new venture export performance, particularly those located in rural settings. To a larger extent than for urban, rural new venture economic-related performance positive and significantly depend on central government policy support, close relatives’ role models, and technological support at the R&D collaboration level. Given the relevance of embeddedness-related factors in rural municipalities, public authorities should follow strategies that involve a growing connection between rural entrepreneurs and a variety of actors from industry, academia and the public and private sectors in order to foster newly created venture performance.
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Startup companies are expected to become the new engines of economic growth through the rise of new innovation-based entrepreneurs. The Penta Helix framework is widely used as a framework to analyse factors related to the development of innovation-based companies. The use of the Penta Helix framework as the unit of analysis is considered to be relevant because this framework offers a comprehensive perspective and is in line with the economic development innovation and knowledge-based startups. However, there is a lack of research that has been conducted that analyse the nature of support that can be given to startups at their early-stage of creation using the Penta Helix framework that consists of five stakeholders namely Academicians, Businessmen, Government, Communities. This study aims to propose a conceptual model about the nature of support needed by startups in order to survive in their initial stages by using the Penta Helix Framework. This study is a qualitative one using the Focus Group Discussion method, in which participants are made of six early stages technology-based startup founders and CEOs, who were gathered to conduct several discussions regarding the topics. Our results show that obstacles faced by startups include among other: difficulties in obtaining qualified yet affordable workforce in facing existing competitors, difficulties in increasing sales, difficulties in managing product development costs, no adequate support from the government, and ineffective incubation programs. A model that consists of lists of support that startups need, was depict as main contribution from the discussion, named Penta Helix support for startups. This model offers comprehensive practical guide for policy makers to support startups from five perspectives.
Article
Purpose The article examines the entrepreneurial decision-making in the Greek tourism and hospitality sector during a period of an economic crisis. Design/methodology/approach The nationwide study includes the responses of 503 entrepreneurs engaged in the Greek travel, tourism and hospitality industry. The research employs fuzzy-set Qualitative Comparative Analysis (fsQCA), and examines trust, enterprising negotiation power, tourism decision-making considerations and crisis effects. It also includes the categorical data of operational mode and company type. Findings The analysis has generated three different pathways for entrepreneurial decision-making during crisis in the Greek tourism and hospitality sector. These pathways are (1) crisis conditions, (2) enterprising operations and focus and (3) enterprising capabilities. Research limitations/implications Due to the limited employment of fsQCA in the tourism sector, its full potential is still to be explored. Practical implications The study provides three different pathways that Greek tourism entrepreneurs select for their decision-making according to the characteristics of their firms and their market orientation. Originality/value Theoretically, the study contributes by enhancing understanding of entrepreneurial decision-making during periods of crisis. In the methodological domain, the research employs fsQCA, which has only recently started to be used in tourism and hospitality, and generally the service sector.
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This study aims to confirm the importance of entrepreneurship in strategic priorities in competitive environments. In this context, it started with the conceptual structure of the term and proceed conditions the entrepreneur prefers for business success. Furthermore, the fundamental elements that the entrepreneur brings to the market discussed. While explaining these factors, the emphasis placed on the significance of entrepreneurship. Moreover, some crucial determinants are focused on developing entrepreneurship. For this purpose, it is mentioned in both physical and other factors to reach business success in competitive markets.
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This issue of Social Entrepreneurship Review aims to collect original, inspiring and research-grounded studies focusing on the way small community initiatives, organizational level changes and wide social movements, as well as cross-sector projects and programs answer to crisis situations. This broad topic encompasses a plentitude of questions, as the following: • What are the antecedents and driving factors of pro-social engagement in times of crisis? • What are the forms of social engagement in times of crisis? • What kinds of social entrepreneurship initiatives are stimulated in crisis situations? • What is the role of new technologies and social media in launching these initiatives? • What is the durability of such initiatives, also after crisis termination? • What is the role of charity and philanthropy in times of crises? • What is the role of Humane Entrepreneurship in times of crises? • What is the role of the public administration is facilitating social engagement, connecting actors and supporting social entrepreneurship? • Is social solidarity manifested in enhanced cross-sector cooperation and joint initiatives? • Do pro-social initiatives launched in times of crisis introduce lasting changes in the relationships between the public, social and private sector?
Article
This study examines the impact of internal control and its five components on corporate innovation using the Committee of Sponsoring Organizations (COSO) framework with a sample of Chinese firms. The impact of the internal control system as a whole, as well as the impact of the five components of internal control individually (i.e. control environment, risk assessment, control activities, information & communication, and monitoring), are analyzed. Our results suggest that internal control, as an integrated system, has significant positive impact on firm innovation, as measured by patent applications. We document that the magnitude of impact on innovation varies across different subcategories (components) of internal control, with control environment, control activities, and information & communication components exhibiting stronger impacts on innovation than those of risk assessment and monitoring components. In addition, we find that a high level of control environment, control activities, and information & communication (risk assessment and monitoring) components have a stronger (weaker) impact on innovation compared to a low level.
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ABSTRACT It is not known what the future rules of entrepreneurship will be. The aim of this study is to reveal the methods that entrepreneurs started to deal with the COVID-19 virus crisis and the effects of these methods. Today, the COVID-19 virus outbreak is profoundly affecting the world economy. Economic authorities and companies state that this epidemic will cause the biggest crisis in the world history. Even the theory that the virus wants to spread, by manipulating it, is a sign of the impact of the crisis. In this study, using the interview method, the general characteristics of the entrepreneurs, how they behave in the face of the crisis, and what measures they take to avoid or not be affected by the crisis were examined. 15 entrepreneurs operating in Istanbul, Izmir, Denizli, Bolu and Aksaray provinces participated in the interview. Research data was obtained between April and May 2020. In the study, it has been observed that entrepreneurs try to achieve sustainability by minimizing their costs during the crisis period. Entrepreneurs focused on technology investment during the COVID-19 crisis period and made use of technology effective. Research findings revealed that entrepreneurs attach importance to R&D activities, distance education, customer communication, advertising studies, appearing in various media and personal marketing during the epidemic period. Another finding that emerged in the study is that entrepreneurs focus on providing a competitive advantage by implementing a stable growth strategy, providing minimum costs, and with a less profit margin. Keywords: COVID-19, Entrepreneurship, Crisis Perception, Crisis Strategies, Pandemic 1
Article
Purpose This study aims to examine how owners and managers of micro and small enterprises perceive firm success and the future of their businesses. Entrepreneurial action theory is adopted in the analysis and a modified theoretical framework is proposed. Design/methodology/approach Semi-structured, face-to-face interviews were conducted with 34 owners and managers representing 32 Italian and Spanish wine businesses; qualitative content analysis was used. Findings Eight dimensions common to both groups of participants emerged, with the most prevalent themes revealing strong links with opportunity maximisation. In particular, the importance of perceived critical success factors was manifested by continuous improvements, building relationships, and being perceived highly are in line with perceptions of wineries’ future, including entering demanding markets, becoming a referent for the region, or attaining global recognition. Originality/value In investigating critical success factors and the perceived future of businesses from two of the world’s largest wine producers and exporters, this study provides a theoretical, practical and international perspective concerning these dimensions. In addition, this study focuses on Europe’s largest business sector, namely, small and medium enterprises. Furthermore, this study proposes a theoretical framework, which brings together the findings and the insights of entrepreneurial action theory.
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The second issue in 2020 of the quarterly published JEMI explores enterprise development and innovation. The behavioral determinants of the economic ventures indicated by the authors is a continually developing trend of research in economic sciences. Contemporary enterprises are increasingly investing their resources in obtaining information on factors that stimulate employee behavior in order to increase efficiency or develop innovation. Behavioral approach is also used in seeking answers to questions about the development of small and medium enterprises (SMEs) posed by entities responsible for supporting the SME sector. In economic sciences, behavioral approaches result from an interdisciplinary view on the behavior of people participating in economic life. The behaviors of entrepreneurs, managers, other participants in an organization, clients, and entities supporting economic activities are an essential subject of research interest. The presented articles show the research perspectives that contribute to the development of a behavioral stream in economic sciences. The first article proposes a triangulation of theoretical foundations for behavioral research in economic sciences. Dominika Korzeniowska and Łukasz Sułkowski reviewed the scientific literature and analyzed 37 articles and 21 monographs selected from scientific databases. As a result of their research, the authors concluded that by adopting different research perspectives in behavioral economics, rather than just a cognitive one, it is possible to enrich both theoretical and empirical foundations in scientific research. Discovering human economic behavior can be done using methods and techniques appropriate to research, e.g. in behavioral or evolutionary trends. The authors conduct their analysis in relation to three paradigms: cognitive, behavioral and evolutionary, and then come to the conclusion that these approaches should not be treated as competitive but complementary knowledge of economic behavior. For example, the evolutionary approach in psychology makes it easier to explain the genetics of certain automatic response patterns that have developed during evolution. Its usefulness is expressed in the possibilities of creating an image of the human economic mind or economic society. In turn, the use of behavioral approaches, according to the authors, allows finding ways to eliminate the effects of mental traps appearing in the processes of making economic decisions and other problem situations. The authors in their research refer to three research trends, but ultimately encourage the search for other theories and concepts in the study of human economic behavior and their impact on business ventures. The next article presents field studies carried out in West Sumatra. The authors use psychoeconomic factors lying on the side of entrepreneurs to study failures in their business operations. An essential aspect of the research is the identification and analysis of opportunistic behavior and its impact on the success or failure of operations. Hafiz Rahman, Eri Besra, and Nurhayati conducted quantitative research using multiple and partial regression analysis on a sample of 1541 young entrepreneurs from the West Sumatra province in Indonesia, who had experienced failures in their earlier enterprises. It was found that psycho-economic factors, together with the opportunistic behavior of individuals, more or less, caused the entrepreneurial failure. The obtained research results also formed the basis for the claim that opportunistic behavior can be seen as both a source of business success and failure. The authors believe that the research should be of interest to the Indonesian government, as it suggests that the creation of entrepreneurial resilience takes place in a process that also considers the failures of undertaken enterprises. Young entrepreneurs usually draw conclusions from the mistakes they made, which is why it is postulated to support them even in situations of failure, e.g. through entrepreneurship capacity building programs. In addition to economic and business knowledge, it is necessary to build mental resilience, develop maturity, logically consider the choice of alternatives, improve decision-making processes, and deal with social pressure. The subject of interest of the author of the third article is organizational behaviors that affect high performance. Przemysław Zbierowski presented the results of his research, conducted on a sample of 406 enterprises, using the computer-assisted personal interview (CAPI) technique. Based on the collected research material, the author analyzed the impact of high-performance organizational features on actual organizational performance, and the indirect impact on organizational citizenship and entrepreneurship-oriented behavior. As the author notes, his research contributes to the scientific debate in at least three ways. Firstly, it confirms that the features of high performance have a strong impact on the actual performance of the enterprise, which is not surprising but verifies the hypothesis. Secondly, it indicates entrepreneurial orientation as a partial mediator in this relationship. Finally, he discovers the very strong impact that high-performance features have on the organization's civic behavior. The article also has practical implications. The obtained research results form the basis for developing organizational citizenship and entrepreneurship orientation through the skillful use of high-performance factors. Behavioral research trends in economic sciences also include the research presented in the fourth article regarding employee behavior and their development stimulated by managerial coaching. Ghulam Abid, Saira Ahmed, Tehmina Fiaz Qazi, and Komal Sarwar filled the research gap in the field of sustainable employee development in the organization. The research conducted by them is pioneering. The authors relate to the context of work and individual differences in promoting a thriving workplace. The intervention mechanism of self-efficacy and prosocial motivation in the relationship between managerial coaching and thriving at work was explored using a sequential mediation approach. Data were analyzed using Hayes' Process Model 6 based on 1,000 bootstrap resampling with an actual sample of 221 respondents. The obtained results confirm that managerial coaching increases employee self-efficacy. The goal of coaching is to increase the employee's sense of self-efficacy in connection with a particular activity so that he or she can perform his or her tasks effectively and efficiently. Efficiency among employees directly activates positive moods that help engage employees and trigger prosocial behavior. This study contributes to the detection of awareness related to the links between prosocial motivation and employee development and provides an additional, comprehensive analysis of the procedure for obtaining the positive effects of managerial coaching. Another group of articles relates to the behavioral aspects of developing innovation in enterprises in relation to employees, as well as the implementation of innovation by customers. Determinants of innovation in enterprises have become the subject of the research interests of Izabella Steinerowska-Streb and Grzegorz Głód. The authors presented the results of their research, which was conducted on a sample of 353 Polish family businesses. In the course of the conducted research, it was possible to determine whether family businesses that introduced the creative ideas of their employees were more innovative than others. The company's innovativeness can be expressed in the product, process, marketing, or organizational area. The authors also examined the relationship between the innovation of family businesses and their involvement in activities that stimulate creative thinking, build trust in the workplace, stimulate employee development, and support team integration. The study revealed that family businesses that are aware of the importance of creative employees, and that bring their employees' creative ideas into business practice, are more innovative than other family businesses. In addition, it was found that an increase in company innovation exists when the company supports employee development. Interesting behavioral aspects are presented in the research on employee resistance to implementing technological innovations. Çiğdem Sıcakyüz and Oya Hacire Yüregir conducted a study of medical personnel at a public hospital in Adana, Turkey, to investigate the reasons for employee resistance to implementing an IT system. The Technology Acceptance Model (TAM) was expanded to include factors such as affective commitment, gender, and age. Based on the data collected from 291 surveys, a regression analysis was conducted, which led to the formulation of conclusions regarding the usefulness of information technology, its ease of use, and affective commitment. It was examined whether demographic factors such as age, gender, position, and tenure are associated with resistance to implemented technological innovations. The results of this study confirm earlier models of technology acceptance. The practical implications of the study relate to the need to increase employee participation in making decisions about the change process. The examined resistance of employees to technological innovations should also be treated as an essential voice in the discussion of problems related to managing change in the organization. In the article presented by Neema Mori and Rosallia Mlambiti, attention was focused on the acceptance of product innovation by customers. The research was carried out in Tanzania using the example of mobile banking services. To examine the impact of demographic factors on the adoption of innovative mobile banking services, Rogers' Diffusion Innovation Theory (DIT) was applied to 416 clients of a leading bank in Tanzania. Regression results showed a positive and significant relationship between income level and education on the one hand, and the adoption of mobile banking on the other. Practical implications refer to the recommendations to develop promotional practices and awareness campaigns and capture customer demographic profiles to encourage them to use mobile banking. The study showed the importance of using the situational theory to adopt innovative technologies in banking services in Tanzania. The authors indicate that this approach to research issues, broadens the understanding of the importance of demographic factors, especially in relation to the Sub-Saharan African region, and also contributes to a better understanding of mobile banking from the point of view of the bank's customers in Tanzania. The last article covers a bibliometric analysis of published research results in the field of business innovation, its financing, and policy framework. The analysis was based on the resources of the Web of Science Core Collection using Vosviewer for the period 1990–2019. The researched publications were divided according to the research area, and then the research gaps were identified. In total, 437 articles were found that went through various stages of selection. 32 publications were analyzed in detail, and the study presents citations received by each of these selected publications and their summaries. Thematically grouped summaries show the areas that the researchers paid more or less attention to. The conducted research allowed the authors to state that the countries involved in a higher level of innovation had a higher level of publication. Few studies on this topic have been developed in emerging economies such as Africa and Asia, excluding China and Taiwan. A similar situation was noted for countries in the Middle East. Most of the research comes from the United States and European countries. The article also refers to aspects such as the time horizon of research, approach, and research methods. The results of the presented research allow readers to get acquainted with the current state of publications on the subject of financing innovation and policy in this field. The editors express the hope that the articles presented will contribute to the development of knowledge on behavioral aspects of the functioning of enterprises and the development of innovation. The authors' extension of the research perspective with behavioral determinants, strengthens our belief in the legitimacy of supporting this research trend in JEMI. We thank all the researchers and authors for enriching their studies, broadening the perspective of resolving complex management problems, and developing innovation in organizations dispersed in geographical, economic, and cultural terms. We hope all readers will find this second issue of JEMI in 2020 both interesting and informative.
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In this PhD dissertation, I analyze how actors transform resources within and between organizational routines in response to resource constraints of a new commercial strategy. To this end, I seek to contribute to some of the gaps in the recent literature on organizational strategy and routines, considering that the internal analysis of routines has still been treated as a black box in research on strategic change. To achieve these goals, I conducted an in-depth single case study at the distance education unit (DEU) of a private university (UAlpha). UAlpha crossed by rapid changes in the legislation and market environment, and internal changes in its DEU, which allowed to characterize the relevance and contribution of the case to the purposes of understanding the phenomena. During the data collection period, I followed the DEU's internal change process as a non-participating observer for five months, triangulating the observations collected with semi-structured interviews and with secondary sources and internal documents. The use of different qualitative analysis techniques with the support of Atlas.ti software allowed me to elaborate a processual theoretical-empirical model that demonstrate the relationship between the contextual and internal changes of the organization, with a central interest in the internal dynamics within and between organizational routines. The focus of the narratives is on how a new commercial strategy impacted the chain of activities and resources of a focal routine (teaching routine), resulting in a new internal scenario characterized by the restriction of time, space and identity in the focal routine. Therefore, I present how the actors in the teaching routine and some interdependent routines mobilized resources to respond to the new condition imposed by the strategy. The analysis allowed me to identify three core resourcing processes (emergent, configurational and identity) from which actors seek to respond emergently to the new strategic condition of the organization within and between routines. In addition to the intended theoretical contributions, the findings also allowed me to offer practical implications for strategists, managers and employees, and suggestions for future advances in these relevant fields of research.
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The issue of provision of sustainability of development of entrepreneurial structures is very topical in the current conditions of functioning of national economy. Recessive declines are replaced by stagnating tendencies, which are manifested in the aspects of financial crises. At that, the formed mechanisms and directions of development of entrepreneurial structures in the conditions of financial crisis are concentrated on implementation of measures in the sphere of state support for business. Effectiveness and efficiency of these measures is debatable. According to this conclusion, it is possible to form the model of development of entrepreneurial structures in the conditions of financial crisis. The purpose of scientific article is the process of search for the most effective model of provision of sustainability of development of entrepreneurial structures in the conditions of financial crisis. For that, it is necessary to solve the following tasks: structure the process of changeability of entrepreneurial structures in the conditions of conjunctural peculiarities of the financial system; form the model of development of entrepreneurial structures in view of manifestations of financial crisis; model the platform of development of entrepreneurial structures in the conditions of financial crisis. The methodology of the article includes the following methods: scientific substantiation, schematic image, process modeling, structural ration, and sustainable interconnections. Within this research, the authors try to form new approaches to the process of provision of development of entrepreneurial structures. Further consideration of this issue could be conducted in the aspect of methodological evaluation of consequences of financial crisis for development of entrepreneurial structures.
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This editorial suggests moving beyond relying on the dominant logic of multiple regression analysis (MRA) toward thinking and using algorithms in advancing and testing theory in accounting, consumer research, finance, management, and marketing. The editorial includes an example of testing an MRA model for fit and predictive validity. The same data used for the MRA is used to conduct a fuzzy-set qualitative comparative analysis (fsQCA). The editorial reviews a number of insights by prominent scholars including Gerd Gigerenzer's treatise that “Scientists' tools are not neutral.” Tools impact thinking and theory crafting as well theory testing. The discussion may be helpful for early career scholars unfamiliar with David C. McClelland's brilliance in data analysis and in introducing business research scholars to fsQCA as an alternative tool for theory development and data analysis.
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This study examines a number of proposed relationships between formal and informal institutional factors that impact the entrepreneurial intent (EI) of 477 university business students in Germany, Russia and the United States, as well as similarities and differences in these relationships between countries. This is the first study, of which we are aware, to develop an instrument to measure the impact of formal institutional factors on EI based upon the World Bank's Doing Business Report. Overall, the results give only minor support for the influence of formal institutional factors on EI with the greater impact appearing to come from the informal institutions of need, social norms and parental experience. Theoretical and practical implications are discussed.
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We examine the relationship, across 39 countries, between regulation and entrepreneurship using a new two-equation model. We find the minimum capital requirement required to start a business lowers entrepreneurship rates across countries, as do labour market regulations. However the administrative considerations of starting a business – such as the time, the cost, or the number of procedures required – are unrelated to the formation rate of either nascent or young businesses. Given the explicit link made by Djankov et al. [Djankov et al. 2002, ‹The Regulation of Entry’, Quarterly Journal of Economics 117(1), 1–37] between the speed and ease with which businesses may be established in a country and its economic performance – and the enthusiasm with which this link has been grasped by European Union policy makers – our findings imply this link needs reconsidering.
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Several drivers of entrepreneurial aspirations and entrepreneurial motivations are investigated using country-level data from the Global Entrepreneurship Monitor (GEM) for the years 2005 and 2006. We estimate a two-equation model explaining aspirations using motivations and socioeconomic variables, and explaining motivations using socioeconomic variables. We find that countries with a higher incidence of increase-wealth-motivated entrepreneurs tend to have a higher prevalence of high-job-growth and export-oriented entrepreneurship and that a country’s level of social security relates negatively to the prevalence of innovative, high-job-growth, and export-oriented entrepreneurship. We also find that the increase-wealth motive mediates the relationship between socioeconomic variables and entrepreneurial aspirations.
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Using a case study of ten SMEs the authors apply a model of human information processing which provides a frame to help understand the entrepreneur's use of information to identify opportunities. Their model integrates an algorithmic or pattern type of information processing and a heuristic or trial and error type of information processing into a pragmatic frame of the entrepreneur's opportunity recognition-construction mechanism. This article shows how human information processing can moderate entrepreneurial opportunity identification.
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Opportunity identification represents a unique entrepreneurial behavior yet its processes and dynamics remain mysterious. Entrepreneurial alertness, a distinctive set of perceptual and information-processing skills, has been advanced as the cognitive engine driving the opportunity identification process. To date, empirical support has been equivocal; however, these early studies suffer from fundamental mistakes in theory and method. These mistakes are examined and addressed. A research agenda for the systematic and conceptually sound study of entrepreneurial alertness and opportunity identification is outlined. Copyright 2001 by Kluwer Academic Publishers
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Entrepreneurial activity varies significantly across countries and over time. The economic and institutional context is a determining factor that can drive and lend shape to entrepreneurial activity. The search for a deeper understanding of the role of this factor constitutes a promising and important research stream. A thorough review of the specialist literature identifies groups of countries with similar economic and institutional environments. Subsequent analysis highlights differences in entrepreneurial activity and innovation outcomes between these homogeneous groups. Results indicate significant differences, not only in entrepreneurial activity, but also in the type of entrepreneurship and innovation results. These findings mark a relevant step forward in the identification of different environment types, and the effects of environment on entrepreneurial activity and innovation results.
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This paper explores the reasons that nascent entrepreneurs offered for their work and career choices and compares those responses to the reasons given by a group of nonentrepreneurs. Six separate factors accounted for 68% of the variance: self-realization, financial success, roles, innovation, recognition, and independence. The factor scores of nascent entrepreneurs and nonentrepreneurs were not significantly different on self-realization, financial success, innovation, and independence. Nascent entrepreneurs rated reasons concerning roles and recognition significantly lower than nonentrepreneurs. Finally, gender differences in reasons also emerged; male nascent entrepreneurs and nonentrepreneurs rated financial success and innovation higher than did females, regardless of their group of origin.
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While the vast economic literature on entry has been recently accompanied by a growing literature on the post-entry performance of newborn firms, still few studies propose a connection between the two phenomena. Exploiting the opportunity of using data concerning potential entrepreneurs, this study attempts to relate ex-ante economic, individual and environmental features to both the decision to start a new firm and – in the case of actual foundation – to the post-entry performance exhibited by the newborn firm. Empirical results based on 365 Italian potential founders show that entrepreneurial projects based on a rich information set, a first-best choice and on self commitment are more likely to develop into actual startups and better post-entry performances.