Showing papers in "Journal of Developmental Entrepreneurship in 2015"

Recognizing the contribution of female entrepreneurs in economic development in sub-saharan africa: some evidence from ghana

Abstract: In recent decades, female entrepreneurs have been seen to contribute to the economic development of nations especially in developing countries Until now the contribution of female entrepreneurs to economic development in sub-Saharan Africa (SSA) has been relegated to the background or ignored in development circles Part of the reason is because female entrepreneurs mainly work in the informal economy and are necessity driven and marginalized The main research question the study poses is 'what is the contribution of female entrepreneurs to socio-economic development in SSA?' This paper seeks to answer this by examining critically the contribution of female entrepreneurs from Ghana as a means to achieve economic development The study employs a qualitative approach using multiple case study design To examine female entrepreneurship, a 2014 survey involving face-to-face interviews of 60 female entrepreneurs from Accra in Ghana is analyzed The key finding is that, although male entrepreneurs contribute significantly more to economic development than their female counterparts, there remains untapped potential for female entrepreneurs becoming key players for achieving economic development This and other findings of the study have some implications for policy on female entrepreneurship Therefore, there is a call to harness these potentials through policies that would promote female entrepreneurship on an equal wavelength as their male counterparts This is the first known study of female entrepreneurship as a catalyst for economic development in Ghana

Internationalization as a "work-around" strategy: How going abroad can help to overcome local constraints

Abstract: The economic environment and associated constraints have significant and unequal effects on Small and medium enterprises (SMEs). Constraints have been used, among other growth factors, to understand why some SMEs fail to grow while others foster. However, beyond knowing the effects or constraints, it is important entrepreneurs know how they can avoid constraints. The study provides an important contribution by showing that South-African SMEs that face constraints because of competition, government rules and regulations, financing gaps and corruption, can navigate away from these constraints by going international. The evidence shows a positive moderating effect of internationalization on the relationship between local constraints and SME growth. However, the results also reveal that lack of government support is a significant constraint to growth when SMEs export internationally.

Entrepreneurial self-efficacy and firm performance in challenging environments: evidence from the franchise context

Abstract: The purpose of the current study is to investigate the impact of the five ESE dimensions on firm performance. More specifically, we examine whether any of the five ESE dimensions are important to firm performance when the external environment is either competitively intense or technologically turbulent. This study investigated these relationships using a sample of franchisees, an important audience understudied in entrepreneurial literature. We find that the three-way interaction of competitive intensity, technological turbulence and each of ESE innovation, ESE management, and ESE financial control predicts franchisee performance. This confirms the wisdom of studying ESE as consisting of specific dimensions (as opposed to holistically) because not all ESE dimensions interact with franchisee environment in predicting performance.

Determinants of business performance of small and medium size enterprises in rwanda

Abstract: Small and medium enterprises (SMEs) are often identified as one of the most important strategies for enhancing the livelihoods of people in Rwanda. This research analyzed the factors influencing the performance of SMEs in the Musanze district in the Northern Province. A survey was conducted with 52 registered SMEs selected from three sectors of Musanze. The sample was obtained by using proportional allocation sampling where the number of SMEs within each sector was considered. Both quantitative and qualitative data from SMEs were collected using structured questionnaires. Factor analysis and bivariate correlation analysis were used to facilitate data analysis. The results of this study showed that starting SMEs incurred a mean annual net income loss of -185,965Rwf (-295US$). However, the average net annual income increased to 970,820Rwf (1540US$). There was a positive correlation between annual net income, business experience and asset size (p < 0.05). Three factors that determined the performance of SMEs are marketing and entrepreneurship skills, working environment and materials and infrastructure availability. Future policy interventions should consider these strategic areas for enhanced visibility of SMEs.

Entrepreneurial orientation, market orientation and networking: impact on innovation and firm performance

Abstract: The study examines the relationships among entrepreneurial orientation, market orientation and networking on firm performance with radical and incremental innovation as the mediator. The present study draws on the resource-based view theory to provide insights about intangible resources and capabilities among SMEs. The study adopts a subjectivist approach and is based on multiple case study method by conducting interviews with 7 SMEs purposively operating in different sectors. The research findings seem to support both proactive and responsive market orientation (PMO, RMO), entrepreneurial orientation (EO) and networking have positive relationships on firm performance with radical and incremental innovation as the mediator. It appears firms initiating radical innovation take longer for new product performance because of lack of information about customer needs in the market but networking assists in providing market information that enables commercialization of new products. Further, networking among firms drives performance while strong ties are practiced to a lesser extent.

Tackling entrepreneurship in the informal sector: an overview of the policy options, approaches and measures

Abstract: The aim of this paper is to review the various policy options, approaches and measures that can be used to address informal entrepreneurship. To do this, it first reviews four possible policy options, namely taking no action, eradicating informal entrepreneurship, moving formal entrepreneurship into the informal economy, or transforming informal entrepreneurship into formal entrepreneurship. Revealing that transforming informal entrepreneurship into formal entrepreneurship is not only the most viable option but also the approach most commonly adopted by supra-national agencies and national governments, a review is then undertaken of how this can be achieved using either direct controls, which seek to increase the costs of informal entrepreneurship and/or the benefits of formal entrepreneurship, or indirect controls that seek to generate a commitment to compliance and greater self-regulation. It is then revealed how these approaches and their accompanying policy measures are not mutually exclusive and can be combined in various ways, exemplified by the responsive regulation and slippery slope approaches. The outcome is a comprehensive review and evaluation of the various policy options, approaches and measures available to policy makers for addressing informal entrepreneurship along with some recommendations regarding the way forward.

Benchmarking entrepreneurship education in u.s., australian, and new zealand university agriculture programs

Abstract: The present study examines the extent of entrepreneurship education in Australian, New Zealand and U.S. agricultural colleges and programs. The findings suggest that entrepreneurship is important in agriculture, which is reflected in a majority of programs having some coverage in their curriculum of entrepreneurship. In addition, the courses taught are focused on developing entrepreneurial capabilities such as opportunity recognition and assessment, risk management and networking to create value.

The evolution of studies on business location factors

Abstract: Entrepreneurship has been widely considered as the power that drives development and well-being in the regions it affects. As a result, local, regional and national institutions, as well as researches in different disciplines, have focused on finding and researching the factors leading to the installation of business on a certain location. Therefore, it seems well-timed to present a quantitative survey of the literature review of this field. The scope of this article is to present past and present research studies related to the business location factors (BLF) identifying the most important sub-topics, contributors and their geographical distribution, major outlets, main empirical methodologies employed, as well as the most frequently studied countries. The presentation and documentation of the existing literature review could be a valuable tool for policy makers in the regional and national level, as well as for active entrepreneurs and researchers engaged in relevant academic disciples. Policy makers could take advantage of the BLF to attract investments in regions seeking development while active entrepreneurs could realize the important role played by the factors affecting the location of their business in a specific place and researchers could trace and fill in potential research voids on this subject.

Legitimacy, attitudes and intended patronage: understanding challenges facing black entrepreneurs

Abstract: Traditional research on the reasons for the depressed rate of black entrepreneurship has focused on differences between black [note: The term "blacks" is used to represent the broader groups of blacks in the United States, which include African-Americans and also black people from African countries, the Caribbean and other countries.] and white entrepreneurs. In this paper, we move beyond the individual entrepreneur and study consumers' perceptual differences of black and white entrepreneurs. Using a multi-disciplinary theoretical framework to study 846 participants, we found empirical evidence that there are significant relationships between perceptions of legitimacy and consumer attitudes toward entrepreneurs and intended patronage. In addition, there appears to be differences in the way consumers perceive black and white entrepreneurs, which suggest significant challenges facing black entrepreneurs. Implications and future research directions are discussed.

Comparing the development of entrepreneurial self-efficacy of female entrepreneurs in male- and female-dominated industries

Abstract: The aim of this paper is to examine the potential differences in the entrepreneurial self-efficacy (ESE) of female entrepreneurs who own businesses in gender congruent and incongruent industries. Through the lens of social role theory the four antecedents of efficacy are examined. The results of ten in-depth, qualitative interviews show there are overarching similarities in all factors between the groups but nuanced differences in the areas of mastery experiences, social persuasion and vicarious learning. Differences were also found in the areas of social comparisons and perceived gender stereotypes. The paper discusses how ESE manifests for female entrepreneurs based on the gender congruency of the industry in which her business operates. Last, areas for future research are discussed.

Bridging the gender gap in entrepreneurship: an empirical analysis

Abstract: There is no gender difference between success in establishing a business once both males and females have the same preference to self-employment and attempts towards establishing a new business. However, the gender gap tends to be huge when it comes to individual preferences and attempts to start up an entrepreneurial activity. In this study, we empirically estimate the role of inequality in individual and country attributes between man and woman in the bridging the gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions, we found that differences in both individual as well as country characteristics largely favor males, while the former play greater role in explaining the gender gap. Empirical results also show differences in return to measured characteristics favor males. Nevertheless, a portion of gender gap that is unexplained by the differences in these characteristics and their coefficients (or return) could still indicate gender discrimination.

Diaspora Networks, Non-Economic Remittances and Entrepreneurship Development: Evidence from Some Economies in Latin America

Abstract: Diaspora networks' non-economic remittances in the forms of social, political, cultural and technical contributions to their homeland play important roles in entrepreneurship and economic development. In this paper, we examine the effects of such remittances on entrepreneurship development in economies in Latin America and the Caribbean (LAC). We analyze how factors such as migrants' skills and education and characteristics of the host country are likely to affect non-economic remittances and their contribution to entrepreneurship and economic development. We offer some examples of initiatives taken in the home country and the host country to maximize the potential non-economic remittances and their impacts on entrepreneurship development in the home country. A key lesson and take-away that we can gain from entrepreneurially successful efforts of some economies is that the primary focus of diaspora policies need to be centered on utilizing various forms of non-economic remittances in stimulating the quantity and quality of entrepreneurial activity.

Entrepreneurship education in the context of developing countries: study of the status and the main barriers in mozambican higher education institutions

Abstract: This study focuses on the issue of entrepreneurship education and the role of Higher Education Institutions (HEI) in the context of developing countries. More specifically it aims to understand how entrepreneurship education is being implemented in Mozambique and to identify the main barriers to the creation of companies promoted by/incubated in HEI with entrepreneurship education in their curricula. The paper includes theoretical discussion and the presentation of a case study. It begins with a literature review about the relationship between entrepreneurship and development followed by a discussion about entrepreneurship education in the context of developing countries and entrepreneurship education provided by HEI. The empirical study is focused in Mozambique. After a contextualization of entrepreneurship education in Mozambique, Mozambican HEI with entrepreneurship education are identified and their situation and difficulties concerning the implementation of entrepreneurship education are discussed. Data collection includes documental sources and interviews with HEI representatives of a sample of ten establishments of the universe of five public and private HEI with entrepreneurship education in Mozambique. Results indicate that lack of resources, trained/qualified teachers and cooperation networks with the business community and other relevant actors are the main barriers.

Social networks and growth of female-owned ventures: a sub-saharan africa perspective

Abstract: We examine the influence of the dimensions of social networks on the growth aspirations of female entrepreneurs. Using multi stage stratified random sampling, 540 women were surveyed in the five geographic regions of Uganda. Drawing on social network theory, point bi-serial correlation and logistic regression analysis were carried out to test our hypotheses. Although we find a relationship between belonging to a social network and growth, we also find that the relationship between the other indicators of social networks, including social support, discussion of business ideas, equality of network members and growth, are not statistically significant. We propose this may be because the challenges that face female entrepreneurs in this context negate the influence of social networks on growth. On the other hand, we posit that the metrics used to measure entrepreneurship related constructs are biased not only against women but even the developing country context.

Women's agricultural co-operatives in greece: a comprehensive review and swot analysis

Abstract: Very few women's co-operatives exist in Europe today; of those that do, the vast majority are involved in non-agricultural sectors. For the past thirty years in Greece, numerous women's agricultural co-operatives have been established in rural areas and scholars have articulated several aspects of their role in both women's life and the local development. A cursory glance at the history of the women's agricultural co-operatives in Greece and a review of the literature highlights the uniqueness of this type of entrepreneurship (a rarity in Europe) and their significant role for rural society cohesion, mainly in geographically and economically isolated rural areas. In this paper we employ a SWOT analysis to elaborate on strengths and weaknesses, which vary from co-operative to co-operative. Either bottom-up or top-down created women's co-operatives are currently a social innovation. Their strengths mainly concern economic independence and social inclusion of women in rural areas, while their weaknesses are mainly associated with funding, organization, administration, know how, culture, product promotion and marketing problems. Nevertheless, they are called upon to survive in a competitive environment; although difficult, it is one that provides opportunities that most likely can outweigh threats.

Social Media Use to Support Entrepreneurship in the Face of Disruption

Abstract: By comparing respondents in Egypt and the United States this paper examines whether the rise of virtual social networks to support entrepreneurship may be more important in driving entrepreneurial intent in countries undergoing disruption. Further, this research developed a new factor of “social media self-efficacy” as a predictor of perceived behavioral control in entrepreneurial intent. Results were analyzed using Partial Least Squares (PLS), employing the double bootstrap comparison method for improved accuracy. Social media self-efficacy provided significant, unique variance for both samples in predicting perceived behavioral control above and beyond the contribution of entrepreneurial self-efficacy and access to entrepreneurial resources. Social media self-efficacy was significantly more influential for Egyptians than for Americans in predicting perceived behavioral control; entrepreneurial self-efficacy and access to resources were significantly more influential for Americans. This research introduces a framework for conceptualizing a social media role in promoting entrepreneurship, with an emphasis on its likely importance for contexts suffering from institutional voids or severe institutional instability.

Blessing in disguise? coping strategies and entrepreneurial intentions following involuntary job loss

Abstract: A growing body of research in entrepreneurship has explored the personality and social determinants of entrepreneurial intentions (EI). Most empirical work in this area has emphasized the “pull” approach to EI, which focuses on the pursuit of entrepreneurial opportunities. In contrast, the “push” approach to EI, which explains EI as a function of displacing events in one’s life, has received little scholarly attention. This study contributes to the “push” approach to EI by examining involuntary job loss as a specific situational factor that influences EI. This study investigates whether problem-focused and emotion-focused coping strategies predict EI among individuals who have experienced involuntary job loss. Furthermore, we test whether entrepreneurial self-efficacy (ESE) mediates the relationship between coping and EI. Using a sample of 266 individuals who had experienced recent involuntary job loss, we found that the use of problem-focused coping strategies was positively associated with EI and that this relationship was mediated by ESE. On the other hand, the use of emotion-focused coping strategies to manage job loss was unrelated to EI. Overall, our findings highlight the role of problem-focused coping in effectively managing the impacts of involuntary job loss.

Marketing capability, competitive strategies and performance of micro and small family businesses in ghana

Abstract: The study examines the mediating role of competitive strategies (cost leadership and differentiation) in the marketing capability-performance relationship using data from 264 micro and small family firms in Ghana. The bootstrap method for exploring mediating relationships was used to examine the hypotheses. The findings indicate that although differentiation influence performance, cost leadership does not influence performance after controlling for firm age and firm size. However, marketing capability significantly influence performance. The findings further revealed that marketing capabilities do not have any indirect relationship on performance through cost leadership. However, the results indicated that marketing capability influenced firm performance through differentiation strategy. The findings indicate the need to implement both competitive strategy and marketing capability to enhance performance of micro and small family businesses.

Entrepreneur's actual behavioral controls, psychic distance stimuli, and export mode choice

Abstract: This paper looks at the mediating effect of entrepreneurs' actual behavioral controls on the relationship between psychic distance stimuli and export mode choice of SMEs. Based on a dataset of 84 Vietnamese exporters, we find that: (i) entrepreneurs' actual behavioral controls and organizational factors are determinants of Vietnamese SMEs' export mode choice; (ii) psychic distance (geographic distance and psychic distance stimuli) does not influence Vietnamese SMEs' export mode choice; (iii) entrepreneurs' actual behavioral controls do not play the mediating or moderating role in the relationship between psychic distance and Vietnamese SMEs' export mode choice.

A start-up generation approach for teaching entrepreneurship: an overview of affective learning results

Abstract: This study reports an analysis of the training objectives achieved by students with a heterogeneous educational background who attended a university entrepreneurial course. The course emphasized an experiential approach of a start-up creation. A pre-experimental design was followed to collect data on a sample of fourteen students who completed the six-month course. Findings, based on a non-parametric test, show significant differences between the pre and post-test. After the course, participants displayed a higher level of self-efficacy in making decisions, a higher level of probability of becoming entrepreneurs and a lower level of pessimism in projecting their future. Despite deserving to be corroborated with a more sophisticated research design, this study contributes to the extant literature by providing further empirical support about the role played by entrepreneurial courses in fostering harbinger variables of entrepreneurial behavior. Future research issues and practical implications are illustrated with respect to optimism and pessimism.

Are entrepreneurs’ networks dynamic? a replication study testing changes in entrepreneurs’ networks during new venture development

Abstract: Entrepreneurs’ networks are important for resource acquisition during early venturing. Interestingly, resource needs rapidly change during early venture development, which may necessitate a change in entrepreneurs’ networks. This study examines how the size of an early-stage entrepreneur’s network affects the subsequent structural (e.g., size) and content (e.g., knowledge diversity) character of their network. Additionally, how the strength of an early-stage entrepreneur’s network ties affects the subsequent structural (e.g., size and tie strength) and content (e.g., knowledge diversity) character of their network is explored. Data from the PSED-I were used to analyze the relationships. Results suggest the relationship between network size at time one and network size at time two is positive. Results further suggest a negative relationship between the number of weak ties at time one and the number of strong ties at time two. In addition, a positive relationship was found between network size at time one and network knowledge diversity at time two. Overall, this study contributes by providing a replication of results from recent work examining dynamics of entrepreneurs’ networks and it extends research on the topic by testing proposals utilizing panel data and through integrating novel theoretical perspectives.

Exploring innovative new ventures in china and the united states

Abstract: Data and general observations would indicate that Chinese new ventures are not as innovative as U.S. new ventures. This paper utilizes the Institution-Based View of Entrepreneurship to argue that the varying institutions within the subnational regions influence the innovativeness of new ventures. More specifically, this variation in innovativeness of new ventures is more salient in the Chinese setting than the United States setting because of the unevenness of institutional transitions within Chinese subnational regions. Using a sample of 488 Chinese new ventures and 317 U.S. new ventures, this paper not only shows that region matters beyond individual and industry characteristics, but also shows that China suffers from a weighted averages issue, with Central and West subnational regions of China bringing down its overall innovativeness of new ventures. This provides implications on the appropriateness of making comparisons at a country level.

Social networks, cognition and risk recognition in new ventures: evidence from china

Abstract: Although risk has always been at the center of entrepreneurship, research on risk recognition in new ventures is limited. Applying cognitive information-processing theory, we develop a theoretical framework that explores the interactive influences of entrepreneurs' social networks and their cognitive characteristics on the outcomes of risk recognition. We test the framework on a sample of 226 Chinese entrepreneurs. The results show that network size, tie strength and structural holes enhance risk recognition outcomes and that cognition (i.e. risk propensity and illusion of control) generally reduces such effects, except in the case of illusion of control, which has no effect on structural holes.

Chance non-control and entrepreneurship

Abstract: The personality of entrepreneurs can have a large influence on entrepreneurial startups. The general locus of control, which is an element of the personality of entrepreneurs, is considered to be critical for the creation of entrepreneurial startups. Despite the generally acknowledged importance of one’s locus of control for entrepreneurial intentions and new firm startups, a research gap exists because less emphasis has been given to external locus of control, in particular chance control. Chance non-control can be defined as a person’s disbelief in chance- or luck-based outcomes. In this study, a country-moderated hypothesis about the relationship between a person’s chance non-control and his or her entrepreneurship (activities or intentions) was developed and empirically tested by using data collected through a structured questionnaire from 645 students in three countries (China, Finland and Slovenia). Regression analysis was used to test the hypothesis. Based on the findings, which are partially in support of the moderated hypothesis, recommendations for research and practice are proposed. The key contribution of the study is the explanation of the role of chance non-control in entrepreneurship and the notion the relationship between chance non-control and entrepreneurship tends to be moderated depending on uncertainty avoidance.

Entrepreneurial networks and growth in female-owned businesses: evidence from small and medium scale enterprises in eritrea

Abstract: This study examines the role of entrepreneurial network strength (strong vs. weak ties) on growth of female-owned businesses. Primary data were collected from 356 small- and medium-scale enterprises (SMEs) located in four of the six administrative regions of Eritrea. Our main finding indicates that weak entrepreneurial networks composed of cooperatives and business firms have the strongest positive relationship with growth.

Devaluation, competitiveness and new business formation in emerging countries

Abstract: In September 2010, Brazil’s Finance Minister, Guido Mantega, used the term “currency war” with reference to monetary policies implemented by different countries to generate an artificial devaluation of their currency and achieve a cheaper, more competitive domestic economy that may be attractive to foreign investors. Similar cases have been documented since the 1930’s Great Depression, when several countries abandoned the gold standard as backing for their currencies. More recently, a large-scale asset purchase by Japan’s Central Bank in 2013 was singled out as a strategy aimed at generating devaluation of the yen. This research uses statistics of new business formation density reported by Doing Business for 30 emerging countries in the period from 2004 through 2011 to evaluate the impact of devaluation measured by the behavior of the real effective exchange rate (REER) on the rate of new business formation (NBF). It is determined how variables associated with competitiveness affect the relationship between devaluation and business formation. Results show that devaluation has a positive effect on NBF in the short term, which gets diluted in the long term. Countries with greater competitiveness have less dependence on devaluation to increase the number of businesses.

How prolonged droughts and farm subsidies influence entrepreneurial ventures by farmers

Abstract: A conceptual model of entrepreneurial uptake by water-scarce farmers explores how farmers accumulate social and human capitals while managing multiple risks in current and future livelihood choices. Social networking and human capital accumulation differentially impact on successes in agriculture and entrepreneurial ventures. The risk of farm subsidy removal and the uncertainties associated with finding and succeeding in a suitable enterprise, present the farmer with difficult trade-offs in terms of which type of capital to accumulate. Results suggest that in the presence of multiple risks, farmers may act to increase their investments in human capital even when chances of finding a suitable business opportunity are low; whereas in some cases, they may accumulate higher social capital to enhance their farm subsidy support even under better chances of finding suitable business opportunities. Further, an increase in risk of agricultural unviability, by itself, does not automatically lead to farmers shifting to enterprise.