Factors influencing opportunity driven nascent entrepreneurs in Europe and Asia

The purpose of this study was to investigate factors influencing to become opportunity driven entrepreneurs. Based on Global Entrepreneurship Monitor (GEM) data in 2015, 7,465 samples of nascent entrepreneurs from 13 countries of Europe (n=3,678), and 10 countries of Asia (n=3,787) were analyzed by logistic regression technique. A range of cognitive and demographic factors were examined. The result showed that perceived business opportunity, fear of failure, and education level are the significant antecedent factors to become an opportunity driven nascent entrepreneur for both Europe and Asia. Entrepreneurial networking and self efficacy were found to influence the likelihood to become an opportunity driven nascent entrepreneur for Asia but not in Europe. Logistic regression analysis also showed that young people seemed to become an opportunity driven nascent entrepreneurs than senior people. Education level had a positive effect on a chance to become an opportunity derive entrepreneurs. Policy implications and finding results have been discussed.peer-reviewe

Small government is not a cure-all for entrepreneurship

It stimulates necessity (not opportunity-driven) entrepreneurs, write Andreas Kuckertz and Elizabeth S.C. Berge

Accelerating Entrepreneurship in Africa: Understanding Africa's Challenges to Creating Opportunity-Driven Entrepreneurship

Despite the positive economic news and encouraging trends that have emerged from Africa over the past decade, the troubling reality remains that the everyday livelihoods of Africans have not kept pace with macroeconomic growth, andper capita GDP levels on the continent persistently lag behind the rest of the world . We submit that entrepreneurship canaddress this stubborn income gap in Africa if -- and only if -- itis able to evolve beyond its current state of necessity-based informality into one thatis vibrant and robust enough to promote sustained economic growth and generate long-term, viable livelihoods across the continent .To better understand the state of entrepreneurship in Africa,Omidyar Network launched the Accelerating Entrepreneurship in Africa Initiative in 2012 . To execute this multi-phase research project, we were fortunate to partner with the Monitor Group, and together we set outto identify the challenges facing African entrepreneurs and pinpoint the most trenchant barriers that inhibit high-impact entrepreneurship .The first phase of the initiative commenced with a survey of 582 entrepreneurs in six Sub-Saharan African countries: Ethiopia, Ghana, Kenya, Nigeria, South Africa and Tanzania. That survey, in turn, was augmented by 72 in-depth interviews and then benchmarked against 19 global peers .The survey focused on four critical aspects of entrepreneurial environments:Entrepreneurship assets:Financing, skills and talent, and infrastructure .Business support: Government programmes and incubation .Policy accelerators: Legislation and administrative burdens .Motivations and mindset: Legitimacy, attitudes, and culture .The second phase of the initiative broughttogether business, government and thoughtleaders to analyse the survey findings, as well as more closely examine the state of entrepreneurship in Africa . .The sessions were held in October 2012 at the inaugural Entrepreneurship in Africa Summit in Accra, Ghana. The summit was convened by Omidyar Network in collaboration with the African Leadership Network and the Monitor Group and drew more than 300 relevant leaders from both private and public sectors to participate in a solutions-driven dialogue on fostering high-impact entrepreneurship across the continent

Is Informal Sector Entrepreneurship Necessity- or Opportunity-driven? Some Lessons from Urban Brazil

The aim of this paper is to evaluate critically the widely-held assumption that entrepreneurs operating in the informal sector in developing nations are largely necessity-driven entrepreneurs, pushed into this entrepreneurial endeavour as a survival strategy in the absence of alternatives. Reporting an extensive 2003 survey conducted in Brazilian urban areas of informal sector entrepreneurs operating small businesses with less then five employees, the finding is that under half of the surveyed entrepreneurs are driven out of necessity into entrepreneurial endeavour in the informal economy. The outcome is a call to recognize the prevalence of opportunity-drivers amongst entrepreneurs operating in the informal economy and to reposition informal sector entrepreneurs more centre-stage in discussions of entrepreneurship and enterprise development

Value capture dynamics – opportunity-driven changes

The study addresses the gap in the research concerning the dynamics of the value capture process. The aim is to enhance the understanding of the dynamics of value appropriation by identifying those decision-making practices and strategic behaviours that are entrepreneurial in nature. The conceptual discussion is supported by the empirical research governed by a multiple case design. The longitudinal study generated valuable insights into the processual character of value appropriation, as well as into its variable, not always linear, occurrence with value creation. The collected data provide rich evidence of opportunity-driven changes in the value capture action lines

Motivation and barriers of Chinese opportunity-driven immigrant entrepreneurs in Portugal : exploratory research

Mestrado em Ciências EmpresariaisO objetivo principal do presente estudo é o de investigar e analisar as motivações e obstáculos de empreendedores chineses motivados por oportunidades em Portugal. Esses chineses que criam um novo empreendimento em Portugal sob oportunidade empresarial devem distinguir-se dos empreendedores chineses de necessidade ou sobrevivência. O grupo demográfico principal neste estudo é o de empreendedores imigrantes Chineses motivados por oportunidades que chegaram a Portugal após o ano de 2012. A partir desta data, existiu uma grande mudança da estrutura demográfica dos empreendedores chineses imigrantes que entraram em Portugal, devido à publicação de Autorização de Residência para Atividade de Investimento (ARI) que atraiu não só investidores chineses mas também os empreendedores chineses que reconheceram oportunidades comerciais em Portugal. É proposto um enquadramento, que se divide em duas dimensões (fatores exteriores e fatores individuais), para demonstrar as motivações e os obstáculos suscitados com a criação de uma empresa em Portugal. Por causa de ausência de estudos académicos relacionados com o empreendedor imigrante chinês em Portugal, decidiu-se utilizar a metodologia de análise qualitativa. Selecionámos cinco casos representativos dos empreendedores chineses para desenvolver a análise, implementando entrevistas em profundidade com respostas a um conjunto de questões aos empreendedores.This study's primary objective is to investigate and analyse the motivation and barriers of Chinese opportunity-driven entrepreneurs in Portugal. The Chinese who create new ventures in Portugal with a particular business opportunity should be distinguished from those Chinese who are entrepreneurs for survival. The main demographic group in this study is Chinese opportunity-driven entrepreneurs who arrived in Portugal after 2012. For after this date the demographic structure of Chinese immigrant entrepreneurs changed immensely in Portugal with the divulgation of Residential Authorisation for Investment Activity (ARI), which attracted not only Chinese investors, but also Chinese entrepreneurs who recognised potential business opportunities in Portugal. We advocate a framework of Chinese opportunity-driven immigrant entrepreneurs which demonstrates the motivation and barriers of their new venture in Portugal. As there is a lack of academic studies about Chinese immigrant entrepreneurs in Portugal, we decided to use a qualitative analysis which was divided into two dimensions, namely environmental factors and individual factors. We selected five representative cases of Chinese opportunity-driven entrepreneurs to develop the analysis, through the use of in-depth interviews with entrepreneurs with a set of questions.info:eu-repo/semantics/publishedVersio

The value of entrepreneurship by gender on regional behaviour

This paper examines how the value of entrepreneurship by gender is related to regional behaviour. Researchers have traditionally defined entrepreneurial organization as separate to gender and to economic growth. Using the Global Entrepreneurship Monitor (GEM) we complete a dataset of 50 countries using variables such as total early-stage entrepreneurial activity (TEA) and opportunity-driven entrepreneurial activity (OPP). The methodology used proposes an analysis of regional convergence, comparing the evolution over time of both the rate of entrepreneurial activity and the ratios of opportunity-driven and need-driven entrepreneurial activity, distinguishing by gender. On the other hand, a regression model is proposed that explains the greater presence of female entrepreneurship. The results show that entrepreneurship by gender is an important factor to define different cluster of countries according to how men and women entrepreneurs create new economic opportunities

Factors Influencing the Entrepreneurial Engagement of Opportunity and Necessity Entrepreneurs

This paper investigates determinants of engagement in various stages of the entrepreneurial process while considering an individual's start-up motivation using 2007 survey data for 27 European countries and the US. Next to opportunity and necessity start-up motivations, we take into account individuals driven by a combination of both motivations. We observe that opportunity- and necessitydriven entrepreneurs as well as those with mixed start-up motivations have different profiles. Furthermore, they differ concerning the factors that inspire or hinder them to engage in the entrepreneurial process more fully ('to climb the entrepreneurial ladder'). For example, entrepreneurship-specific education, selfemployed parents, risk tolerance, perception of lack of financial support, and living in a metropolitan area are important variables in determining entrepreneurial engagement and failure for opportunity-driven individuals, but they are not (or less) important for necessity-driven individuals.

Availability of Financing, Regulatory Business Costs and National Entrepreneurial Propensity

In this paper, we focus on two barriers to entry that may hinder the formation of new firms: capital requirements and regulatory business cost. The contribution of this paper is twofold: we compare the availability of different types of financing sources to address the issue of capital requirement and we utilise a new measure of business cost by constructing a composite index using data from the World Bank’s Doing Business Database. Using cross-sectional data on 37 countries that participated in the 2002 Global Entrepreneurship Monitor, we examine the effect of availability of financing and regulatory business costs on the propensity of three different types of entrepreneurial activity:opportunity-driven, necessity driven and high-growth potential new firm formation. The availability of three types of financing sources is analysed: traditional debt financing, venture capital financing, and informal investments. The findings show that only informal investments significantly influence the propensity to be entrepreneurs. Regulatory business costs were found to deter opportunity driven entrepreneurship, but had no impact on other types of entrepreneurial activity.entrepreneurial activity, financing, venture capital, informal investment, business cost

Two Essays on the Impact of Institutional Structures on Entrepreneurship: Country Level Analysis

Entrepreneurship has long been viewed as an engine of innovation and economic growth; however, there is limited understanding of cross-national differences in rates and types of entrepreneurship. This dissertation mainly uses an institutional theory framework to investigate whether shared social knowledge, value systems, and regulations influence differences in rates and types of entrepreneurial activities among countries. This dissertation’s central research question is addressed in two essays. In Essay 1, I examine what factors explain the recovery of entrepreneurial activities in countries after the 2008 global financial crisis (GFC). Nearly all countries experienced a sharp drop in entrepreneurial activities during the GFC; however, entrepreneurial activities rebounded to pre-crisis level in some countries, and not others. I test my propositions using Fuzzy-set Qualitative Comparative Analyses (FSQCA) and identify the distinct configurations of institutional arrangements that explained recovery of entrepreneurial activities after the GCF. The findings broadly indicate that there is an equifinality in countries’ recovery in which either formal institutions (regulatory) or informal institutions (normative and cognitive) are sufficient conditions for entrepreneurial recovery indicating multiple paths for countries to pursue after an entrepreneurial crisis, and thesimultaneous presence of all three institutional structures (cognitive, normative and regulative) was not necessary for the recovery. Essay 2 investigates the relationship between countries’ institutional profile (cognitive, normative and regulatory) coupled with national innovation system and individuals, entrepreneurial choice: necessity driven entrepreneurship and opportunity driven entrepreneurship. Recent research has identified that opportunity driven entrepreneurship has more significant impact on economic growth than necessity driven entrepreneurship. I examine how national innovation system factors such as entrepreneurship training and education, university–industry collaboration, technology and availability of venture capital impact the type of entrepreneurship. Using Hierarchical Linear Modeling, the findings shows that while either institutional profile or national innovation system factors cannot solely encourage people to choose OME over NME, if supportive institutional arrangements (cognitive, normative and regulatory) get coupled with national innovation system factors, it can be expected to see more potential entrepreneurs to get engaged in opportunity driven entrepreneurship rather than necessity driven entrepreneurship