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Showing papers in "Journal of Entrepreneurship and Public Policy in 2020"


Journal ArticleDOI
TL;DR: In this article, the authors examined the effect of control of corruption on the relationship between formal and informal institutions and the development of the entrepreneurial activity, and found that lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity.
Abstract: The paper aims to analyse the interplay between formal and informal institutions' and their impact on entrepreneurship rates in emerging economies.,This study expands previous research in examining the moderating effect of control of corruption on the relationship between formal institutions and the development of the entrepreneurial activity. The study utilizes longitudinal analyses of a dataset from 41 emerging economies over 11 years (2006–2016).,Findings provided robust support for the study's hypotheses. The results suggested lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity, while negatively moderating the effects of firm-level technology absorption on the rates of entrepreneurial activity.,The study has considered only one particular aspect of high-growth entrepreneurship, which is newly registered firms with limited liability. Although newly registered firms are recognized as one of the critical drivers of entrepreneurial activity. Future research should seek to examine other aspects of growth-oriented entrepreneurship such as activities involving a high level of innovation, corporate entrepreneurship or technology developments.,This study advanced the existing theories in the field of entrepreneurship and institutional economics as it merged the two theories as a driving framework in the design of the study in the context of emerging economies.,The study tested a theoretical model by expanding the number of emerging economies in the study and found comparable findings that explain factors that may influence the likelihood of individuals entering entrepreneurship.,This article adds to the current literature as it highlights the importance of the interplay of formal and informal institutions in determining their impact on entrepreneurship rates in emerging economies. This is of particular importance to policy-makers, and the business world as the empirical results of this study show the benefits of control of corruption in boosting entrepreneurial rates in these economies, which strive for economic diversification in their developmental endeavours.

17 citations


Journal ArticleDOI
Abstract: While the topic of women's entrepreneurship continues to grow in academic appeal, the policy aspect is one that has received limited scholarly attention, especially in the context of developing countries. To address this gap in scholarship, the purpose of this paper aims to critically explore women's entrepreneurship policy in Tanzania. The research question asks: How are policies designed to encourage and support entrepreneurship in Tanzania gendered, and how might such policies be (re)designed so that they are more relevant to women entrepreneurs in the Tanzanian context? The authors contribute to extant scholarship by: drawing attention to the particular context for women's entrepreneurship in Tanzania; identifying gender biases inherent in current entrepreneurship policies; offering some recommendations for policymakers and identifying areas worthy of future research attention in this area.,The study builds on the Global Women's Enterprise Policy project. The authors apply an adapted reading guide technique to analyse and critique relevant entrepreneurship policy documents in Tanzania. The reading guide examines the category and type of document being analysed, key themes, content, language and imagery, as well as the key policy recommendations being offered and their relevance to women's entrepreneurship in Tanzania and the wider sub-Saharan African region. Completed reading guide templates are then coded and collated into an excel spreadsheet. Findings are discussed and critiqued within a regulative, normative and cultural-cognitive framework.,The study provides rich and valuable insights into the unique context for women's entrepreneurship in Tanzania, shedding new light on how women's entrepreneurship is supported in a particular region of sub-Saharan Africa. Findings reveal that while current policy acknowledges the important role women play in their communities, especially in terms of their contribution to labour, it is geared more towards small and medium-sized enterprise (SME) development than entrepreneurship; this is despite the fact that entrepreneurship is identified as a means to address sustainable development challenges (notably unemployment and poverty) and expand opportunities for socially disadvantaged groups, especially women. Existing policy is essentially “context neutral” and hence relatively ineffective; the gender focus is lacking and there is a failure to take account of the specific context in which Tanzanian women entrepreneurs have to operate. The authors argue for policies designed to support women's entrepreneurship to be formalised and contextualised in their specific geographical and cultural setting. The “institutional pillars” framework allows us to identify areas where contextualisation of women's entrepreneurship policies could be enhanced.,The study implies that, to be effective, policies designed to support women's entrepreneurship need to be formalised and contextualised to their specific geographical and cultural setting. Some areas where this might be achieved are identified. Avenues for future research in this area are also suggested.,The value of the paper lies in its focus on Tanzania, and its critique of existing policies from a gender and institutional perspective. It also enhances understanding of the unique context in Tanzania for entrepreneurship.

16 citations


Journal ArticleDOI
TL;DR: In this paper, the authors consider the success and failure of micro-finance institutions in generating economic growth over the past 30 years and propose a dual criterion of evaluation, which is a case of poor institutional quality leading to unproductive or even destructive entrepreneurship.
Abstract: The purpose of this paper is to consider the success and failure of microfinance institutions in generating economic growth over the past 30 years and propose a dual criterion of evaluation.,It surveys the empirical literature on microfinance and finds that while there has been small and localized success in various countries in improving access to credit, at the same time there has been a broader failure to generate economic growth. The authors argue that this broader failure should be viewed from the viewpoint of institutional failure or the lack of supporting institutions such as private property rights and stable rule of law within developing countries.,Using Baumol’s (1968) theory of entrepreneurship, the authors argue that the broader failure of microfinance is a case of poor institutional quality leading to unproductive or even destructive entrepreneurship rather than productive entrepreneurship. The paper also suggests a link between the literature criticizing foreign aid and this view on microfinance.,The paper provides a survey of the empirical literature on micro finance as well as a novel framework that aids in understanding both the localized small-scale success as well as broader failure to generate economic growth.

12 citations


Journal ArticleDOI
TL;DR: In this article, the authors analyzed the impact of national entrepreneurship systems on the sustainability of countries and concluded that those countries deploying higher level national entrepreneurship system return better results in terms of their sustainability.
Abstract: National systems of entrepreneurship (NSE) broadly act as a means of allocating resources driven by the constant search for opportunities at the individual level through the launching of new businesses and firms with such activities, and their results are governed by the specific institutional characteristics of each country. In contrast to the institutional emphasis on innovation systems, in which such institutions establish and regulate actions, institutions are only able to regulate those who act with the results stemming from such individual actions, the core driver of national entrepreneurship systems.,Given the challenges faced by companies and societies in general over mitigating climate change, support for sustainable entrepreneurship is fundamental. However, there has to be any study of the impact of national entrepreneurship systems on sustainability. This research therefore analyses the impact of national entrepreneurship systems on the sustainability of countries.,The authors conclude that those countries deploying higher level national entrepreneurship systems return better results in terms of their sustainability.,The authors, thus, seek to contribute towards the academic throughout deepening the knowledge prevailing on the relationship between entrepreneurship and sustainability. The authors also seek to enable managers, entrepreneurs and politicians to grasp how entrepreneurship is a systemic factor, and it is at this level that it may make its greatest contribution to bringing about sustainability.

11 citations


Journal ArticleDOI
TL;DR: In this article, the authors argue that commercial entrepreneurial activities have social implications and can provide needed social spaces during the disaster recovery process, and that viewing commercial enterprises as socially valuable has implications for post-disaster public policy.
Abstract: This paper argues that commercial entrepreneurial activities have social implications and can provide needed social spaces during the disaster recovery process, and that viewing commercial enterprises as socially valuable has implications for post-disaster public policy.,This paper discusses themes and concepts developed through in-depth interviews conducted in New Orleans, Louisiana, and Houston, Texas, after Hurricane Katrina. Particular case studies of the personal experiences of communities that recovered after Hurricane Katrina are utilized to highlight how commercial entrepreneurship creates and maintains social spaces where community members can share resources and connect during the recovery process.,Entrepreneurs need not have a specific social mission in order to make social contributions, and commercial entrepreneurship should create and maintain social spaces that are important for community recovery after disasters.,The social spaces that commercial entrepreneurs facilitate should be considered when designing and implementing public policy in the post-disaster context. Policies can often hinder recovery, and policymakers should instead establish clear regulatory regimes and allow for greater space for entrepreneurs to act.,This paper highlights the role entrepreneurs play in advancing social goals and purposes after disasters, specifically how commercial entrepreneurs can create and maintain social spaces where community members gather to discuss their challenges and strategies for disaster recovery. It highlights the extra-economic role of commercial entrepreneurs and discusses the implications for public policy based on this broadened conception of entrepreneurship.

5 citations


Journal ArticleDOI
TL;DR: In this paper, the authors argue that policymakers and academics should place more emphasis on maximising the additional benefit created by entrepreneurial support programs and impact investments and demonstrate the value of pursuing it.
Abstract: This paper argues that policymakers and academics should place more emphasis on maximising the additional benefit created by entrepreneurial support programs and impact investments. It demonstrates a robust approach to advancing this field of research by using qualitative methods to determine the variables that may predict the additional benefit a firm will gain from funding.,The research is based on 60 semi-structured interviews averaging 1.5 h each; 45 with entrepreneurs that did or did not receive funding from a business plan competition in Nigeria, 15 with relevant elites. Detailed World Bank panel data on program participants further validated responses and supported conclusions.,Numerous factors that may explain additional benefit were uncovered, including those that vary the need for external funding and those that vary access to it.,Qualitative methods explored variables previously assumed to be unobservable. Future studies are necessary to test the results quantitatively.,Understanding the characteristics that indicate ex ante which firms would most benefit from support will help policymakers, impact investors and development institutions to more effectively allocate capital.,This paper addresses the paucity of research into increasing additional impact and demonstrates the value of pursuing it. Methods used to suggest additionality variables for such programs and many of the factors highlighted are unique to this study. The research is also based on unique access to the participants and un-anonymised data from a significant World Bank study, and on substantially more interviews than previous papers.

5 citations


Journal ArticleDOI
TL;DR: In this article, a mix of different institutional and state support factors such as access to markets, education and training, access to finance, contract enforcement, regulations and business support programmes all have a significant and positive impact on enterprise growth in Swaziland.
Abstract: Public policy supported by effective institutions is one of the key strategies for promoting entrepreneurial activities. However, the problem is that an enabling environment that supports entrepreneurship is often lacking in several African countries. The aim of this article is to deepen our understanding of the mix of policy and institutional factors which create an enabling environment for enterprise growth in Swaziland.,Primary data are sourced from 200 enterprises across Swaziland's main regions and hypotheses are statistically tested using correlational and regression analyses.,Results show that a mix of different institutional and state support factors such as access to markets, education and training, access to finance, contract enforcement, regulations and business support programmes all have a significant and positive impact on enterprise growth.,Study implications relate to the need for specific and targeted policy interventions required to foster an enabling environment in order to stimulate enterprise growth in Swaziland.,Empirical investigations on enterprise growth in under-researched developing market contexts, such as Swaziland, are important since in many developing and emerging markets small enterprises are at the epicentre of the economy Moreover, this study adds to the stream of research highlighting that the application of institutional theory provides a detailed theoretical understanding of the actors and the process by which enterprise policy is formulated.

5 citations


Journal ArticleDOI
TL;DR: In this paper, the authors analyze the effect of state and city-level licensing of massage therapists on crime and the spread of sexually transmitted diseases using data from the FBI Uniform Crime Reports from 1985-2013 and the Centers for Disease Control and Prevention between 1993-2015.
Abstract: This study aims to analyze the trends for crime and STDs after the passage of massage therapist licensing. In 1977, Texas passed a law permitting county-level licensing laws for massage therapists, which was soon followed by a statewide licensing requirement in 1985. This early massage therapy law was upheld by the Fifth Circuit Court of Appeals. Massage therapy licensing is commonly associated with preventing crime, specifically prostitution. However, massage parlors also represent an opportunity for entrepreneurs starting businesses, who face significant barriers to entry across the USA.,The authors analyze the effect of state- and city-level licensing of massage therapists on crime and the spread of sexually transmitted diseases using data from the FBI Uniform Crime Reports from 1985–2013 and the Centers for Disease Control and Prevention between 1993-2015.,The authors find that state- and city-level licensing of massage therapists was not associated with preventing crimes related to prostitution or reducing sexually transmitted diseases. This analysis is consistent with the hypothesis that relaxing the stringency of massage therapist licensing would not lead to increases in crime or additional spread of disease while likely encouraging entrepreneurship.,This study is one of the first to examine the effects of city-level licensing on health and safety of consumers.

4 citations


Journal ArticleDOI
TL;DR: The authors found that small business owners are less concerned about issues such as foreign competition, estate/death taxes, oil prices and labor union demands but are more concerned with domestic competition, income taxes, regulatory burdens and availability of credit from lenders.
Abstract: This research note compares voter opinions regarding small business entrepreneurial activity to opinions of small business owners and links any divergence in perceptions to realized suboptimal entrepreneurial growth policy.,Primary data collection via best–worst scaling and estimation of linear regression models.,Results suggest that small business owners are less concerned about issues such as foreign competition, estate/death taxes, oil prices and labor union demands but are more concerned with domestic competition, income taxes, regulatory burdens and availability of credit from lenders.,The authors find major discrepancies in opinions about trade policy and business financing, which may lead to policy design that hinders entrepreneurship given evidence that politicians do respond to voters' opinions (Autor et al., 2016).,It represents the first empirical assessment of differences between voter and small business owner perspectives on entrepreneurial policy. An immediate policy implication includes the need to provide additional avenues of communication of entrepreneurs' concerns.

3 citations



Journal ArticleDOI
TL;DR: The authors assesses the efficacy of the 18 small business development centers (SBDCs) located throughout the state of Pennsylvania during 2013-2016 as a proxy for publicly funded, small business consulting services in general.
Abstract: This paper assesses the efficacy of the 18 small business development centers (SBDCs) located throughout the state of Pennsylvania during 2013–2016 as a proxy for publicly funded, small business consulting services in general.,The paper compares the sales growth of SBDC clients, as reported in postconsultation surveys, to comparable growth measures for the corresponding business population using one- and two-sample t-tests.,The results show that respondent clients with existing businesses clearly outperform the broader population following consultation, both in aggregate and when decomposed by region and industry.,Although the best available data, the results are tempered by low response rates and self-reporting.,The paper empirically demonstrates that SBDC clients experience higher growth in sales and employment following their consultation than the broader business population. The net benefit of such services is, however, impossible to determine.