The moral legitimacy of entrepreneurs: An analysis of early-stage entrepreneurship across 26 countries

This article will develop our socio-cultural understanding of entrepreneurship by examining the influence of the moral legitimacy of entrepreneurs in society on an individual’s engagement in early-stage entrepreneurship. A multilevel analysis conducted across 26 countries shows that the higher the perceived degree of moral legitimacy, the more likely an individual is to think about starting a business compared to not thinking about it; to start preparing a business as against just considering it; or to found and run a business as compared to just engaging in preparation activities. We conclude that moral norms in society play an important role in early-stage entrepreneurship and that makes it important to legitimize the understanding of entrepreneurs as moral and beneficial for society as a whole.Peer reviewe

Development of New Venture Support Networks and the Role of "Promoters"

New Venture Support Networks (NVSN) are a political instrument for the purpose of contributing to regional economic development by fostering more and qualitatively better start-ups. NVSN bundle together different available sources of information and consultation for potential entrepreneurs, including e.g. authorities, universities, financial institutions, trade associations and private consultants. Achieving effective cooperation between such a wide range of institutions is not a simple task. The initial situation is often characterised by conflicts between the varying individual interests of the participants and the politically defined goal of fostering more and better start-ups. Moreover, since the network has been established by a political initiative for a pre-determined funding period, the actor relations within it are “artificial” (as opposed to naturally developed). Thus, the actors lack common experiences, social bonds, values and other common motivators contributing to trust-based cooperative relationships. Such relationships are a crucial factor in turning the “artificial” network into a “real” one, which continues to exist also after the political funding period is over. Our hypothesis is that certain key actors are a critical success factor in developing NVSN into “real” networks. Following the “promoter model” – an expansion of champion models that has established itself in the German innovation management literature – we suggest that there are administrative, organisational and know-how related barriers that are detrimental to the development of NVSN. The overcoming of these barriers requires a combination of different organisational resources, which the promoter model discusses in terms of three different ideal types: promoter by power, promoter by know-how, and relationship promoter. One person can act in one or more of these roles simultaneously and the roles can appear in different combinations, known as promoter structures. The specific research objectives of the proposed paper are to identify a) the types of barriers faced in the different developmental stages of NVSN and b) the roles the key actors play and the resources they use in coping with them. Our sample consists of key actors in five regional NVSN in Germany, which were established in 1998 as part of the governmental initiative “EXIST – Entrepreneurs from Universities”. The author team is also involved in one of these networks. Using a grounded theory based qualitative approach, we intend to map the development process of these NVSN with respect to the above research objectives. The contribution of the study is two-fold: 1) It presents the first application of the promoter model in the context of NVSN and produces tentative results that can be used as a basis for further research. 2) It offers practical implications to NVSN by analysing how their effectiveness and continuity could be improved by an effective use of promoter structures.

Determinants of job satisfaction for salaried and self-employed professionals in Finland

This article contributes to our knowledge of the determinants of job satisfaction by analysing the effects of employment status (self-employed or salaried employee) and work characteristics (autonomy, variety, task identity, task significance and feedback) on job satisfaction in a sample of 2327 Finnish professionals. The results of the analysis show that although the self-employed professionals are significantly more satisfied with their jobs than their salaried counterparts in Finland, employment status as such does not explain job satisfaction when the five work characteristics are added to the structural model. Furthermore, the analysis finds that task significance, variety and autonomy have similar effects on the level of job satisfaction among both employees and self-employed individuals, while feedback has a weaker effect when the individual is self-employed and task identity does not affect job satisfaction in either group. Overall, the study points to the need to develop jobs that are high in autonomy, variety and task significance for professionals in order to enhance job satisfaction

Ageing and entrepreneurial preferences

Previous research on age and entrepreneurship assumed homogeneity and downplayed age-related differences in the motives and aims underlying enterprising behaviour. We argue that the heterogeneity of entrepreneurship influences how the level of entrepreneurial activity varies with age. Using a sample of 2566 respondents from 27 European countries we show that entrepreneurial activity increases almost linearly with age for individuals who prefer to only employ themselves (self-employers), whereas it increases up to a critical threshold age (late 40s) and decreases thereafter for those who aspire to hire workers (owner-managers). Age has a considerably smaller effect on entrepreneurial behaviour for those who do not prefer self-employment but are pushed into it by lack of alternative employment opportunities (reluctant entrepreneurs). Our results question the conventional wisdom that entrepreneurial activity declines with age and suggest that effective responses to demographic changes require policy makers to pay close attention to the heterogeneity of entrepreneurial preferences

Entrepreneurs’ age, institutions, and social value creation goals: a multi-country study

This study explores the relationship between an entrepreneur's age and his/her social value creation goals. Building on the lifespan developmental psychology literature and institutional theory, we hypothesize a U-shaped relationship between entrepreneurs’ age and their choice to create social value through their ventures, such that younger and older entrepreneurs create more social value with their businesses while middle age entrepreneurs are relatively more economically and less socially oriented with their ventures. We further hypothesize that the quality of a country’s formal institutions in terms of economic, social, and political freedom steepen the U-shaped relationship between entrepreneurs’ age and their choice to pursue social value creation as supportive institutional environments allow entrepreneurs to follow their age-based preferences. We confirm our predictions using multilevel mixed-effects linear regressions on a sample of over 15,000 entrepreneurs (aged between 18 and 64 years) in 45 countries from Global Entrepreneurship Monitor data. The findings are robust to several alternative specifications. Based on our findings, we discuss implications for theory and practice, and we propose future research directions

Regional social legitimacy of entrepreneurship: Implications for entrepreneurial intention and start-up behaviour

Regional social legitimacy of entrepreneurship: implications for entrepreneurial intention and start-up behaviour, Regional Studies. A new understanding of the role of regional culture in the emergence of business start-up behaviour is developed. The focal construct is regional social legitimacy: the perception of the desirability and appropriateness of entrepreneurship in a region. The econometric analysis utilizes a combination of bespoke longitudinal survey data from 65 regions in Austria and Finland, and variables capturing regional socio-economic characteristics derived from official statistics. The study demonstrates that, and explains how, regional social legitimacy influences the relationships between individual entrepreneurial beliefs, intentions and start-up behaviour and how these interaction effects are conditioned by the socio-economic characteristics of the region

Being a Self-Employed Older Woman: From Discrimination to Activism

This article presents an autobiographical account of an older woman’s lived experience of self-employment. Little is known about women who experience ongoing self-employment into their 50s and beyond. Shoshanna’s personal narrative describes her experiences and the challenges she has faced as she reflects upon her attempts to grow and sustain her business and the implications of ageism and gender inequality in laying a claim to entrepreneurship. The narrative proceeds to reflect on her activist work, as it is constructed through the creation of a social enterprise to support older people. Shoshanna’s narrative provides valuable insights into the intersection of age and gender in self-employment moving from discrimination to active support

Entrepreneurial-intention constraint model: A comparative analysis among post-graduate management students in India, Singapore and Malaysia

YesAlthough literature on entrepreneurship has increasingly focused on intention-based models, not much emphasis has been laid on understanding the combined effect of contextual and situational factors along with support of university environment on the formation of entrepreneurial intention among students. In an effort to make up for this shortfall, by taking Theory of Planned Behavior as basic framework, the present study seeks to understand the influence of three of the most important factors, viz. (a) endogenous barriers, (b) exogenous environment, and (c) university environment and support on the entrepreneurial intention among management students. The study sample consisted of 1,097 students, wherein 526 students were from India, 252 from Singapore, and 319 were from Malaysia. The results indicates that along with positive attitude and perceived behavioral control that directly influences entrepreneurial intention, university environment and support and exogenous environment also have an indirect but significant impact on shaping of entrepreneurial intention among students. With this, it was found that exogenous environment was found to have a negative relationship with both attitude towards behavior and perceived behavioral control for all three countries.The full-text of this article will be released for public view at the end of the publisher embargo on 2 Jun 2018

Entrepreneurs' exit and paths to retirement : theoretical and empirical considerations

The number of ageing entrepreneurs in micro- and small-sized companies is rapidly increasing in Finland and other European Union countries. Over half a million jobs, in over one hundred thousand companies within the EU, are lost annually due to unsuccessful, predominantly retirement-related transfers of businesses. This challenge coincides with EU Grand Challenges and has been highlighted in the Entrepreneurship 2020 Action Plan (European Commission 2013). It has been estimated that in Finland, some 8000 jobs are lost yearly due to the ageing of entrepreneurs. Therefore, entrepreneur ageing has implications not only for the ageing individual but also for the company and the society at large. As entrepreneurs age it becomes more essential for them to start planning when and how they transition into retirement. While they may experience several exits and subsequent re-entries into working life via buying or starting new companies, exiting ones entrepreneurial career due to old age retirement differs from exits that occur earlier during the career. In this chapter, we provide a short overview of the entrepreneur retirement and exit literature from an age perspective. Furthermore, we present a theoretical conceptualization which combines entrepreneur retirement process with exit theories. This will enable scholars to better understand the retirement process, including decision-making, transitioning, and adjustment to retirement. We also provide empirical evidence using data collected among Finnish entrepreneurs in 2012 and 2015, where we outline the types of exits and assess several factors, including age, in association with exit intentions.fi=vertaisarvioitu|en=peerReviewed

Business angel exits: A theory of planned behaviour perspective

Although there are a handful of studies on business angel investment returns, the business angel literature has given little or no attention to exits and the exit strategy. This is surprising given that a primary objective of investing is to achieve a capital gain through some form of liquidity event. Using the theory of planned behaviour (TPB) as an interpretative heuristic, we examine how exits happen: specifically, what are the motivations to seek an exit and to what extent are they planned or opportunistic? Based on multiple case studies in which business angels were invited to tell the story of their most recent exit(s), the evidence suggests that the majority of liquidity events are the outcome of planned behaviour. We propose a typology of angel-backed investment exits as the basis for identifying future directions for research and developing practical advice to angels on effective business practices