An examination of the determinants of entrepreneurship at the regional level:the case of East Midlands region

Despite the importance of new firms to the economy, determinants of start-ups have mainly been examined at a country level and discussion of regional entrepreneurial activity has received less attention. Since there are significant variations in entrepreneurship rates across and within countries, such an investigation at a regional level would help in gaining an in depth understanding of the impact of the individual level resource endowments and neighbourhood characteristics on an individual’s decision to engage in entrepreneurial activity. The main aim of the thesis is to explore various theories of entrepreneurship and develop integrated frameworks for examining the determinants of entrepreneurial activity at a neighbourhood level in the East Midlands region in England. The specific objectives of the thesis are to examine how the individual level resources and the neighbourhood characteristics: (i) combine to influence an individual to engage in the different stages of the entrepreneurial process, (ii) influence natives and migrants to engage in start up activity and (iii) influence women and men to become self-employed and ambitious entrepreneurs. In terms of the methodology, the empirical analysis is based on two databases combined: 2006 to 2009 GEM East Midlands region and the English Index of Multiple Deprivation dataset. Based on the critical review of the literature on entrepreneurship the thesis develop theoretical frameworks which led to formulate hypotheses related to the differentiated impact of both individual and neighbourhood level factors on the propensity of an individual to be involved in entrepreneurial activity. The findings indicate that the determinants of entrepreneurial activity vary with human, financial and the local environment factors affecting the entrepreneurial process. Finally, the thesis calls for caution when developing and applying generic and specific policy measures aimed at promoting entry into entrepreneurship

The moderating role of individual and social resources in gender effect on entrepreneurial growth aspirations

Purpose: This study aims to examine how the effect of gender on entrepreneurial growth aspirations is moderated differently by individual resources (human and financial capital) compared to those within the social environment (availability of entrepreneurial knowledge and role models). Design/methodology/approach: A multilevel estimator is used to investigate the determinants of growth aspirations of owners-managers of nascent start-ups. The Global Entrepreneurship Monitor database is employed, covering the period 2007–2019, with 99,000 useable cases drawn from 95 countries. Findings: The results suggest that individual financial resources and human capital have positive effects on entrepreneurial growth aspirations; yet these effects are weaker for female entrepreneurs relative to males. In contrast, the impact of the availability of entrepreneurial social knowledge and role models on their growth aspirations is more positive than for male entrepreneurs. Originality/value: This study offers a novel insight into entrepreneurial growth ambition, as it utilises a global perspective to scrutinise whether individual and social resources contribute differently to male versus female growth-aspirations, employing a multilevel approach. It also integrates insights from the resource-based view and from the relevant business literature on entrepreneurs’ gender to develop theoretical explanations

The moderating role of individual and social resources in gender effect on entrepreneurial growth aspirations

Purpose This study examines how the effect of gender on entrepreneurial growth aspirations is moderated differently by individual resources (human and financial capital) compared to those within the social environment (availability of entrepreneurial knowledge and role models). Study design/methodology/approach A multilevel estimator is used to investigate the determinants of growth aspirations of owners-managers of nascent start-ups. The Global Entrepreneurship Monitor (GEM) database is employed, covering the period 2007 to 2019, with 99,000 usable cases drawn from 95 countries. Findings The results suggest that individual financial resources and human capital have positive effects on entrepreneurial growth aspirations; yet these effects are weaker for female entrepreneurs relative to males. In contrast, the impact of availability of entrepreneurial social knowledge and role models on their growth aspirations is more positive than for male entrepreneurs. Originality This study offers a novel insight into entrepreneurial growth ambition, as it utilises a global perspective to scrutinise whether individual and social resources contribute differently to male versus female growth-aspirations, employing a multilevel approach. It also integrates insights from the resource-based view (RBV) and from the relevant business literature on entrepreneurs’ gender to develop theoretical explanations

The Opportunity Cost and Endowment Effects of Resources and Capabilities on Stages of Entrepreneurship

In this paper, the start-up process is split conceptually into four entrepreneurial stages considering entrepreneurship, intending to start a new business in the next three years, nascent entrepreneurship and newly established business. We investigate the determinants of the start-up process using a multinomial logit model which allows the effects of resources and capabilities to vary across the different entrepreneurial stages. We employ a pooled Global Entrepreneurship Monitor database for the years 2006 to 2009, containing 8,269 usable observations of the East Midlands region in the United Kingdom, controlling for the local environmental effects. Our results show that the combinative role of human capital, experience and local context varies along the different stages of the entrepreneurial process. In the early stages the (negative) opportunity cost effect of resources dominates tends to reverse in advanced stages, where the (positive) endowment effect becomes stronger

Ethnic pluralism, immigration and entrepreneurship

We consider the effects of immigration and ethnicity on entrepreneurship, distinguishing between the individual traits and the environmental characteristics. We look beyond the resource-opportunity framework and occupational choice: culture and values matter. Yet, instead of assigning the latter to specific ethnic features, we relate them to both immigration, and to the social environment defined by the share of immigrants, and by ethnic diversity. Empirical evidence we provide is based on Global Entrepreneurship Monitor UK data, 2003-2013. Having more immigrants in the locality enhances entrepreneurship. With increase in ethnic diversity, the likelihood of being engaged in start-up activity decreases, then increases

Positive local externalities of immigration on entrepreneurship: Evidence from the UK East Midlands region

This article examines the effects of immigration on entrepreneurship, making a distinction between the individual level and the neighbourhood characteristics. The study combined individual level drawn from the Global Entrepreneurship Monitor data with neighbourhood level data for the English Index of Multiple Deprivation East Midlands region in the UK and applied a maximum likelihood logit model to test the hypotheses. The empirical evidence suggests that there is no direct link between the internal immigrants and start-ups on the one side; yet, there is direct link between the external immigrants and start-ups on the other side. However, the findings point to the importance of indirect effect of neighbourhood characteristics, as external immigrants have a significant effect on an individual’s perception of new entrepreneurial opportunities which predicts start-up activity. Their presence in the neighbourhood has a positive monotonic effect on individual entrepreneurship. Therefore, the critical factor is not that external immigrants come with unique knowledge and skills they utilise in the creation of their own businesses, instead they produce positive local externalities enabling others to start-up businesses

The effect of gender and resources on entrepreneurial activity

In this paper, we examine the relationship between human capital, personal wealth and social capital to explain the differences in start-up rates between female and male entrepreneurs. Since our dependent variable is dichotomous, we examine the determinants of these using a maximum likelihood logit estimator. We used the Global Entrepreneurship Monitor database covering the period 2006 to 2009 with 421 usable cases drawn from the Lower Layer Super Output Areas in East Midlands in the United Kingdom. We found evidence that indicate that a female positively moderate the positive relationships between indicators of human capital and personal wealth with start-up activity. The findings have implications for programs, policies, and practices to encourage more females to engage in start-up activity