Motivations or context? Factors influencing low-income entrepreneurship in a developed economy

Abstract

This paper examines expressed motivations and the (expected) value sought from venture creation action amongst a sample of low-income venture owners in a developed economy. We build on the work of Dencker et al. (2019) by testing their theoretical framework of necessity entrepreneurship in a developed economy. First, we demonstrate that a conceptual development of push motivations, however nuanced, is not sufficient to understand the type of venturing action undertaken and outcomes achieved amongst this sample of venturers. Thus, explanations that position observed venturing outcomes as a robust explanation of presumed (motivational) inputs, and the simplistic push-pull dichotomy, are unsound. Second, findings indicate that a more complete explanation for venturing action outcomes observed requires consideration of the role of context, circumstance and an examination of process. Furthermore, we identify that the institutional norms of self-employment labour found in a developed economy are more influential than supportive institutional levers, and thus individuals and their choices for venture creation action will be shaped by factors beyond their control, contrary to conceptualisations of venture creation action as agency determined. Finally, we demonstrate that multiple forms of value are sought and that it is opportunity value that more frequently shapes the outcomes observed in (self-employment) venture creation with low-income outcomes.