Micro Entrepreneurship in Rural Vietnam. A Multilevel Analysis of Business Start-Up and Closure

Since the beginning of the economic renewal process (Doi Moi) in 1986, Vietnam has undergone a process of economic growth, which has led to a significant reduction in poverty. This positive development process, however, focuses mainly on the urban centers with Hanoi in the north and Ho Chi Minh City in the south of the country. In contrast to the urban centers, rural areas have developed less dynamically. As a result, regional disparities within the country, particularly between rural and urban regions, have increased over time. In order to reduce the growing disparities, the Vietnamese government is trying to initiate potential for regional development in rural areas. In this context, micro entrepreneurship is considered to play a significant role in the economic development of rural areas as well as in the reduction of the vulnerability to poverty of rural households. The aim of this dissertation is to empirically analyze the regional economic conditions under which participation in micro entrepreneurship reduces the vulnerability to poverty of rural households. In addition, this dissertation aims to determine the impact of spatial factors on the start-up and closure of micro enterprises. For the empirical analyses a panel data set is used, which was collected in three provinces in rural Vietnam (Dak Lak, Thua Thien-Hue, Ha Tinh) in the course of the DFG Research Unit FOR 756 from 2007 to 2013. The empirical findings show that micro entrepreneurship contributes significantly to reducing the vulnerability to poverty of rural households, but only if they are located in a regional economic environment characterized by proximity to markets, good infrastructural conditions and an advanced stage of structural change. In economically less well developed regions, micro entrepreneurship is not sufficient to reduce the vulnerability to poverty of rural households. In such regions, what matters more is that micro entrepreneurship is driven by opportunity and not by necessity. In highly agricultural and peripheral regions, micro entrepreneurship does not reduce the vulnerability to poverty of rural households, irrespective of the motivation. In addition, the empirical results show that both the start-up and the closure of micro enterprises are influenced by spatial factors to a significant degree. In this respect, local market potentials, the presence of state-owned enterprises, access to regional markets and credit institutions, as well as a prospering regional economy are important factors

Micro Entrepreneurship in Rural Vietnam. A Multilevel Analysis of Business Start-Up and Closure

Since the beginning of the economic renewal process (Doi Moi) in 1986, Vietnam has undergone a process of economic growth, which has led to a significant reduction in poverty. This positive development process, however, focuses mainly on the urban centers with Hanoi in the north and Ho Chi Minh City in the south of the country. In contrast to the urban centers, rural areas have developed less dynamically. As a result, regional disparities within the country, particularly between rural and urban regions, have increased over time. In order to reduce the growing disparities, the Vietnamese government is trying to initiate potential for regional development in rural areas. In this context, micro entrepreneurship is considered to play a significant role in the economic development of rural areas as well as in the reduction of the vulnerability to poverty of rural households. The aim of this dissertation is to empirically analyze the regional economic conditions under which participation in micro entrepreneurship reduces the vulnerability to poverty of rural households. In addition, this dissertation aims to determine the impact of spatial factors on the start-up and closure of micro enterprises. For the empirical analyses a panel data set is used, which was collected in three provinces in rural Vietnam (Dak Lak, Thua Thien-Hue, Ha Tinh) in the course of the DFG Research Unit FOR 756 from 2007 to 2013. The empirical findings show that micro entrepreneurship contributes significantly to reducing the vulnerability to poverty of rural households, but only if they are located in a regional economic environment characterized by proximity to markets, good infrastructural conditions and an advanced stage of structural change. In economically less well developed regions, micro entrepreneurship is not sufficient to reduce the vulnerability to poverty of rural households. In such regions, what matters more is that micro entrepreneurship is driven by opportunity and not by necessity. In highly agricultural and peripheral regions, micro entrepreneurship does not reduce the vulnerability to poverty of rural households, irrespective of the motivation. In addition, the empirical results show that both the start-up and the closure of micro enterprises are influenced by spatial factors to a significant degree. In this respect, local market potentials, the presence of state-owned enterprises, access to regional markets and credit institutions, as well as a prospering regional economy are important factors

The impact of Brexit on London’s entrepreneurial ecosystem: The case of the FinTech industry

This paper analyses how different entrepreneurial actors respond to political uncertainty and changing institutional settings. Moreover, it discusses the impact of those actor-level responses on the resilience of entrepreneurial ecosystems (EEs), focussing on how they affect the diversity of and the connectivity among its actors. To address these questions, the paper examines how the decision of the United Kingdom to leave the European Union has influenced the financial technology (FinTech) industry in London, applying data collected from in-depth interviews, covering different groups of stakeholders in London’s FinTech industry, such as angel investors, banks, legal advisors, lobby organisations, and private companies. Our results show that political uncertainty and the prospect of institutional change can trigger actor-level responses, which have the potential to modify the diversity as well as the local and non-local connectivity of an EE. Moreover, we demonstrate that the nature of strategic responses of entrepreneurial actors varies significantly, depending on their firm’s characteristics, such as age, size, product specialization, and the structure of their egocentric networks. With regard to the latter, our results show that anchor firms play an important role in other firms’ egocentric networks and have the power to shape their strategic responses

Do they do as they say? Analysing the Impact of Brexit on Relocation Intentions in the UK’s FinTech Industry

This paper responds to Bathelt and Li’s (2020) call for selecting more appropriate methods and improving their rigour by evaluating the feasibility of using factorial surveys to anticipate future relocation behaviour. By utilising a case study approach, focussing on Brexit and the UK FinTech industry, the paper examines to what extent business managers’ relocation intentions are driven by factors similar to those known to drive actual relocation behaviour and compares business managers’ relocation intentions with their companies’ actual relocation outcomes. We use a factorial survey conducted in 2018, which allows us to quantitatively analyse the impact of different Brexit scenarios and selected company characteristics on business managers’ likelihood to intend to relocate their UK business unit (or some functions thereof) to the EU and/or the US. Additionally, we collected qualitative secondary data on the actual relocation outcomes of the surveyed companies in February 2022 by investigating online platforms, such as LinkedIn, Companies House, and Crunchbase, as well as company webpages. The results of this mixed-methods approach highlight a significant variation in business managers’ intentions, and the importance of geographical and institutional proximity for relocation intentions and outcomes. We show that business managers’ relocation intentions are driven by factors similar to those known to drive actual relocation behaviour, such as their perception of the economic consequences of different Brexit scenarios, their territorial embeddedness, as well as their nationality. Most importantly, our findings indicate that, although factorial surveys are only moderately accurate when predicting the exact extent and destination of actual relocation, they are highly accurate when predicting whether a company relocates or not

Diversify, produce or buy? An analysis of factors contributing to household dietary diversity among shrimp and non‑shrimp farmers in coastal Bangladesh

Until the Covid-19 pandemic, Bangladesh had reported consistent improvements regarding its food and nutrition security (FNS) status, and yet, the country still features poor FNS outcomes among parts of its population. In rural coastal regions of the Ganges–Brahmaputra-Meghna delta, farming households’ vulnerability is particularly exacerbated by a range of environmental hazards, increasing challenges for agriculture to contribute to higher FNS levels. In the context of existing literature on the trade-offs between subsistence agriculture and cash-earning livelihood activities, vis-à-vis food and nutrition security outcomes, this article assesses the relative contribution of crop diversification vis à vis other factors on the households’ Food Consumption Score (FCS) in specific livelihood contexts. We provide differentiated analyses between primarily exportoriented shrimp farming and non-shrimp farming households, so policy makers can better address FNS targets. Quantitative data from 1,188 sample households across the delta were analysed through descriptive and linear regression analyses. Results show that households cultivating shrimp have a significantly higher dietary diversity than households that do not. Among shrimp farmers, crop diversification has the relatively strongest significant positive effect on dietary diversity, suggesting part of the aquacultural crops are geared towards subsistence. By contrast, crop diversification seems to have a negative effect on dietary diversity among households that do not produce shrimp, especially when different agricultural crops are combined. Importantly, both for shrimp and non-shrimp farmers, crop diversification systems combining agriculture with aquaculture, and agroforestry seem to improve diverse diets among households. While by no means a panacea to solving FNS challenges among rural households, we suggest that promoting specific crop diversification systems could be a beneficial pathway to improved FNS outcomes

Public houses and house prices in Great Britain: a panel analysis

This paper examines the relationship between public houses or ‘pubs’ and house prices in Great Britain. Using a unique dataset, comprising statistical indicators for 373 local authorities registered between 2005 and 2015, the authors investigate this relationship from a panel data perspective. The analysis identifies a strong positive association between an increase in the number of pubs and house prices, showing different patterns with regard to pubs located in urban, suburban and rural areas. Results offer an original contribution to the literature related to the economic value of pubs as important third places in Great Britain, providing the basis for potential policy choices aimed at supporting community investment

The uneven effects of COVID-19 on the German restaurant and bar industry

The COVID-19 crisis in the restaurant and bar industry is affecting an industry that has been under significant pressure before. Using the concept of organizational resilience from a spatial perspective, we analyze how individual/company factors and regional factors influence owner’s assessment of resilience in the German restaurant and bar industry. Findings from an online survey with 445 owners and managers and 46 qualitative interviews in Germany show that enterprises in peripheral locations are perceived as more resilient. Similarly, the age of the respondents, the ownership of property and the provision of delivery and takeaway service play a positive role in enterprises being seen as resilient, while, owner-managed enterprises, financing by loans or credit, and lower ex-ante sales reduce the likelihood of the assessment of resilience. Overall, the study contributes to the evolving strand of research that aims to analyze the resilience of enterprises from a spatial perspective

The effect of natural disasters on FDI attraction: a sector-based analysis over time and space

Extensive research has addressed the question of why some countries are able to attract a large amount of foreign direct investment (FDI), while others are not. Until now, this research mostly neglected natural disasters as a business risk. In the realm of natural disaster research, some studies have investigated the effect of natural disasters on FDI inflow. However, this research remains overly simplistic and conceals the complexities of the underlying relationship. As such, this article aims to provide a more deciphered perspective by considering variations across economic sectors and the dynamic effect of natural disasters. We apply hybrid panel regressions to a dataset of 181 countries over a period of 13 years across four different economic sectors. The analysis shows that the effect of natural disasters on FDI inflow varies among economic sectors. From a longitudinal perspective, the study finds a positive relationship between exposure to natural disasters and the inflow of FDI within countries 3 and 5 years after an event. Overall, the findings highlight the complex nature of the relationship between natural disasters and FDI and warn against using too simplistic approaches

Resilient SMEs and entrepreneurs: evidence from the UK craft brewing sector

Purpose The paper examines the sudden changes and challenges experienced by British craft breweries because of COVID-19. The purpose is twofold; firstly, to evaluate the overall growth trajectory of the craft brewing sector prior to the pandemic crisis and, secondly, to identify features of resilience and adaptability that aided business survival. Design/methodology/approach The authors conducted 24 interviews with a sample of craft brewers during 2020, supplemented with a focus group later in 2021, to understand the impacts of COVID-19 on their businesses. Inductive thematic analysis followed a flexible six-stage approach to generating codes. Qualitative findings were set in the context of the pre-COVID-19 industry trends which were analysed using panel data from the Society of Independent Brewers' (SIBA) Annual Surveys between 2015 and 2018. Findings Findings from the analysis reveal a range of factors influencing growth in the UK craft beer sector before the pandemic crisis, such as levels of investment and local network ties, and identify a range of strategies implemented by brewers in response to the crisis, including new packaging and supply channels, more intensive marketing and greater online engagement with customers. Analysis of the intersection between aspects of individual and organisational resilience also revealed that dynamic responses to an external crisis depend on individual resilience characteristics before organisational strategies can be developed. Originality/value The study provides fresh empirical evidence to practitioners and policymakers to help forecast and future-proof the UK craft beer sector, as well as elucidating aspects of resilience that apply to SMEs in the global industry who face similar challenges. Moving towards a post-COVID-19 economy, the paper offers important theoretical insights into how the resilience of breweries, and other SMEs, is shaped by complex interdependencies and networks and how their adaptive responses might strengthen future business models