Differences In Entrepreneurship Research Articles

Quality-related regional differences in entrepreneurship based on the GEDI methodology: The case of Hungary

This paper presents a regional application of the Global Entrepreneurship and Development Index (GEDI) methodology of Acs et al. (2013) to examine the level of entrepreneurship across Hungary’s seven NUTS-2 level regions between 2006 and 2012. The Regional Entrepreneurship and Development Index (REDI) has been constructed for capturing the individual efforts, and their contextual features, of entrepreneurship across regions. The REDI method builds on a Systems of Entrepreneurship Theory and provides a way to profile Regional Systems of Entrepreneurship. Important aspects of the REDI method include the Penalty for Bottleneck analysis, which helps in identifying constraining factors in Regional Systems of Entrepreneurship, and Policy Portfolio Optimisation analysis, which helps policymakers consider trade-offs between alternative policy scenarios and associated allocations of policy resources. The paper describes the entrepreneurial disparities amongst Hungarian regions and provides public policy suggestions to improve the level of entrepreneurship and to optimise resource allocation over the 14 pillars of entrepreneurship in the seven Hungarian regions.

Gender, trust and risk-taking: a literature review and proposed research model

Purpose – This paper aims to review and discuss recent literature on gender, trust, risk-taking and entrepreneurship. On this basis, a hypothetical model as a basis for theoretical and hypothetical development in future research is proposed. Design/methodology/approach – This paper presents a review of the literature on gender, trust, risk-taking and entrepreneurship. A hypothetical model that can form the basis of future research in the field of entrepreneurship is developed. Findings – In recent years, the issue of gender and its effect on entrepreneurship has been the subject of much debate and controversies. While some studies have shown that gender differences tend to affect intentions to become an entrepreneur, other studies deny any significant differences in this regard. Among these, a significant number of studies reveal that women are less likely to engage in entrepreneurial activities than their male counterparts. One of the major reasons provided for these gender disparities is the tendency of women to be less predisposed to taking risk than their male counterparts. This may in itself be the resultant of gender differences in their predisposition to trust. Research limitations/implications – The arguments and proposed model are in need of empirical testing and verifications. Future research may consider and test the validity of the model. Use of structural equation modeling in this regard may prove beneficial. Practical implications – The proposed model may also be considered by governments and stakeholders vested with tasks of promoting the participation of females in entrepreneurial activities in various contexts. This would entail that the factors of risk-taking/aversion and propensity to trust be considered and alleviated. Originality/value – In examining the underlying reasons for gender differences in entrepreneurial activities, the research to date has not incorporated the interplay of risk propensity and the propensity to trust. The proposed model incorporates these to help unravel the “enigma” of gender differences in entrepreneurship.

Cultural traits and stock market development: an empirical analysis

Purpose – During recent times, the stock market has emerged as a major financial institution of an economy. Yet, cross-country differences, in size and role of stock market, persist. The purpose of this paper is to investigate the correlation between cultural traits and the development of the stock market in a country. Considering multiple dimensions of culture, identified in the literature by Hofstede (1980/2001) and World Value Survey, the authors construct the hypotheses: trust, a key cultural trait, should positively influence stock market development; uncertainty avoidance, Hofstede’s cultural dimension should negatively influence the development of the stock market; and individualism, an alternate cultural dimension of Hofstede’s measures, should be positively correlated with stock market development. The cross-country empirical analysis supports the hypotheses. The results hold for multiple measures of stock market development. Design/methodology/approach – This paper investigates the correlation between various cultural traits and the development of the stock market in a country. Specifically, the authors consider three different cultural trait measures. The authors consider a cross-sectional analysis of an extensive number of countries. While all explanatory variables of interest are considered over the period 2000-2007, the authors consider 2008 figures for the dependent variables of interest, financial development. Ordinary least squares is considered as the benchmark specification. Robust regression has been considered as part of robustness analysis. The authors mention throughout the paper that the results stress on significant association between the variables, only. Findings – The empirical results support the hypotheses. The first measure, trust, is positively associated with stock market development of a nation. Statistically, for one standard deviation rise in trust (1 SD=37.5), stock market capitalization will go up between 11 and 19 percentage points. Uncertainty avoidance, the second measure is negatively correlated and statistically, the impact is much greater. Finally, the third measure, individualism, is positively correlated with stock market development. Statistically, for one SD rise in individualism (SD=23.9), stock market capitalization will rise by 23 percentage points. Originality/value – Existing literature has stressed the role of cultural traits – trust, uncertainty avoidance, individualism – in the promotion of entrepreneurship, innovation and growth. Since most startups need to raise capital in order to implement their new ideas, cross-country heterogeneity in the strength of capital markets may lead to important differences in entrepreneurship and productivity growth across economies (Greenwood and Jovanovic, 1990; Jayaratne and Strahan, 1996; Levine, 1997; Beck et al., 2000; Guiso et al., 2004). Yet, the link between stock market development and cultural traits has not been established in the literature. This paper aims to fill this missing link.

Effects of emotional intelligence on entrepreneurial intention and self-efficacy

Past studies associated emotional intelligence with positive workplace outcomes, such as job performance and job satisfaction. However, to date, the relationship between emotional intelligence and individual differences in entrepreneurship has been scarcely examined. In this study, the contribution of emotional intelligence dimensions to entrepreneurial potential is explored, controlling for the influence of personality traits and demographic variables. Using a sample of 394 participants, it has been tested, by means of multiple hierarchical regression analyses, the mediating role of entrepreneurial self- efficacy in the relationship between emotional intelligence dimensions and the intention to become entrepreneur. Results indicate that two dimensions of emotional intelligence, regulation and utilization of emotions, positively positively affect entrepreneurial self-efficacy. In turn, the perception of self-efficacy mediates the relation between emotional intelligence and the intention to become an entrepreneur.

Greed is good? Assessing the relationship between entrepreneurship and subclinical psychopathy

Despite the stereotype of entrepreneurs as corporate psychopaths, there has been little research on the overlap between individual differences in entrepreneurship and subclinical psychopathy. In line with this issue, the current study investigated whether primary and secondary psychopathy are linked to a measure of entrepreneurial tendencies and abilities, as well as entrepreneurial activities and achievements. Participants were 435 working adults. Structural equation models revealed that individual differences in entrepreneurial tendencies and abilities were positively related to primary psychopathy, but unrelated to secondary psychopathy. Secondary psychopathy did not predict entrepreneurial activity; primary psychopathy predicted some entrepreneurial outcomes, albeit modestly, providing partial support for the‘corporate psychopath’ stereotype. Implications for entrepreneurship research and practice are discussed.

Cross-National Differences in Entrepreneurship: Impact of Culture and Institutions

Existing entrepreneurship literature suggests that culture plays an important role in determining the extent of entrepreneurial activities across nations. In line with this assertion, but contrary to traditional belief, I argue that the individualism-collectivism dimension of culture can have a negative impact on Total Entrepreneurial Activity (TEA) across nations. Further I argue that institutional factors, mainly corruption and education also impact TEA; however their impact on TEA is moderated by the individualism-collectivism dimension of culture. Based on a sample of 42 nations, empirical results support the hypothesized assertions and indicate that the impact of various contextual factors on TEA is not as simplistic as often thought.

Who Wants to Be an Entrepreneur? The Relationship Between Vocational Interests and Individual Differences in Entrepreneurship

The current study examines the relationship between individual differences in entrepreneurship and vocational interests in a sample of 565 adults. Specifically, it investigates associations between vocational interests (as assessed by Holland’s realistic, investigative, artistic, social, enterprising, and conventional model), entrepreneurial potential (as assessed by measure of entrepreneurial tendencies and abilities [META]), and entrepreneurial activity, both within and outside organizations. Results reveal predictable associations between Holland’s taxonomy of vocational interests and entrepreneurial outcomes. Incremental validity tests show that Holland’s vocational interests predict entrepreneurial activity even when entrepreneurial potential and demographic variables are taken into account. Furthermore, structural equation modeling indicates that META is the strongest and most consistent predictor of entrepreneurial activity. Practical and theoretical implications for vocational guidance and career assessment are considered.

The evolution of the social understanding of ethnic entrepreneurship: results from a bibliometric analysis of the literature

There is growing attention toward the role of ethnic entrepreneurship as a potential source of social integration and economic growth. Despite this recent interest, there is in fact a long tradition of studies focusing on ethnic entrepreneurship. Furthermore, there are also a number of qualitative literature reviews that attempt to systematise the main findings in this field of study. We contribute to existing literature by providing a more objective representation of how this concept has evolved on the basis of a bibliometric review of the literature. Our results are based on a sample of 102 publications published on this topic since 1990. Our main contribution is to show that the concept of ethnic entrepreneurship has evolved into three phases. In the first phase, scholars focused mainly on cultural factors in order to explain the differences in entrepreneurship across ethnic communities. In the second phase, the focus shifted toward the structure of opportunities available in the host society. Nowadays, scholars are focusing on the role of networking and embeddedness, and on the creation of seedbed conditions for the development of ethnic entrepreneurship in metropolitan areas.

Greed is good? Assessing the relationship between entrepreneurship and subclinical psychopathy

Despite the stereotype of entrepreneurs as corporate psychopaths, there has been little research on the overlap between individual differences in entrepreneurship and subclinical psychopathy. In line with this issue, the current study investigated whether primary and secondary psychopathy are linked to a measure of entrepreneurial tendencies and abilities, as well as entrepreneurial activities and achievements. Participants were 435 working adults. Structural equation models revealed that individual differences in entrepreneurial tendencies and abilities were positively related to primary psychopathy, but unrelated to secondary psychopathy. Secondary psychopathy did not predict entrepreneurial activity; primary psychopathy predicted some entrepreneurial outcomes, albeit modestly, providing partial support for the ‘corporate psychopath’ stereotype. Implications for entrepreneurship research and practice are discussed.

EQ-nomics: Understanding the relationship between individual differences in Trait Emotional Intelligence and entrepreneurship

Past studies highlight the importance of Trait Emotional Intelligence (EI) in the prediction of career success. Given the evidence that trait EI predicts job performance and job satisfaction, it is reasonable to expect this construct to also predict other forms of career success. In this study, we examine whether EI predicts entrepreneurship; that is, whether higher trait EI is linked to entrepreneurial behaviours and entrepreneurial success, and whether any effects of trait EI on entrepreneurship are independent of the personality trait of Core Self-Evaluations, demographic variables, and individual differences in entrepreneurial personality. Results show that trait EI predicts only some entrepreneurial outcomes beyond other variables examined, and with small effect sizes. This suggests that individual differences in entrepreneurship result only in part from inter-personal differences in trait EI. Implications for research and practice are discussed.

Gender Differences in Entrepreneurship: Evidence From Gem Data

Being a significant component of the contemporary business world, female entrepreneurial activity is considered a key element of economic growth worldwide, and especially in emerging markets. The present study explores gender differences in efficiency-driven countries based on the GEM data through correlation and regression analyses. An important finding of the paper is that training on starting a new business as a common factor, has a greater influence on female entrepreneurial activity. Therefore, training should be considered an essential issue when designing government policies and stimulating entrepreneurial activity in general, of both female and male entrepreneurs.

Institutions and the shaping of different forms of entrepreneurship

Entrepreneurship is a broad concept encompassing a wide range of activities, from the Schumpertian ideal associated with innovation to simply creating a job for oneself. Because we ask about national differences in entrepreneurship, we consider national differences for entrepreneurship, the institutions, and if these relate to the emergence of different types of enterprise. We propose that national patent grants represent innovation and that national self-employment rates represent job replacement. Interestingly, we found that institutional factors that determine self-employment and innovation may act in opposite directions: what encourages self-employment might discourage innovation and vice-versa.

Gender differences in entrepreneurship

PurposeIn 2008, the world had undergone a global economic crisis. Since women always face greater difficulties in obtaining capital than men, the economic crisis had a greater effect on them. The purpose of this paper is to examine the implications of the global crisis for women's entrepreneurship, from the perspective of equality, diversity and inclusion.Design/methodology/approachThe paper reviews studies on gender differences in entrepreneurship, focusing on 2007 and 2008 Global Entrepreneurship Monitor (GEM) studies that examined the rates of entrepreneurship in 43 countries.FindingsThe data show that in all 43 countries, the rates of women's entrepreneurship are lower than men's. Furthermore, the percent of women entrepreneurs is higher in countries where the general income per capita is small and where women have no other option for making a living.Research limitations/implicationsThis surprising finding has been explained as a result of the difference between “necessity” and “opportunity” entrepreneurship, with necessity entrepreneurship found to be more prevalent among women in poor countries, thus pointing to the role played by inequality and exclusion in women's entrepreneurial inferiority.Practical implicationsFrom the perspective of diversity, equality and inclusion, entrepreneurship can be viewed as a means for inclusion of women and other marginalized groups in countries, especially low‐income countries, in which they suffer from lack of equal opportunities and social exclusion.Originality/valueThe paper usefully shows how, especially in times of a global crisis, the role played by inequality and exclusion in women's entrepreneurial inferiority has important implications; such as the need to create special funds for women and the importance of establishing social and business networks for women entrepreneurs.

Gender Gap in Entrepreneurship

The article considers a significant global issue – gender gap starting and developing own business. The field of business was for a long time reserved to men, thus, despite of an increasing number of female entrepreneurs during last decade, the number of female entrepreneurs in Europe, including Lithuania, remains lower than the one of male entrepreneurs. According to the data of various statistical sources, an average ratio of enterprises newly established by men and women in EU countries is about 70% and 30% (European Economic and Social Committee, 2007). Especially in developing countries where gender stereotypes formed through long decades (women’s main role is to be wife and mother) are treated as one of the most important obstacles preventing women to start their own business. Business development, achievements in work environment such as successful carrier, increased personal influence and prestige in society, in contrast with simple job, require conditionally great personal commitment which according to various sources of literature (Nordic Innovation Centre (2007); M. Minniti (2003); P. Tominc, M. Rebernik (2006)) is more acceptable to men than women. Moreover, it is supposed that own business often puts to shade personal private life; therefore it is more associated to men than women. Going deep into the field was also encouraged by the discovery that the analysed literature lacks more detailed discussion of factors that determine the emergence of gender gap in perspective of business establishment. Scientists point out various factors, attach them to various groups, however, little attention is paid to the impact of those factors to existing gender gap. At present, literature does not have an answer to such questions as: “Why do differences exist?“, “What causes them?“. The aim of the article – to determine differences of gender gap in entrepreneurship – is to review the reasons provided in literature explaining the emergence of gender gap when starting own business, to analyse and point out the factors which positively or negatively influence the behaviour of men and women in business and also, on the grounds of expert evaluation, to perform a comparative study of gender gap in entrepreneurship in Lithuania. Having performed an analysis of scientific literature, the conclusion was made that the theories of feminism and discrimination, changes of demographic factors, different value systems and various other factors best explain the prevailing gender differences between men and women. In order to systemise different factors influencing gender gap, the article provides such factor groups as cultural, organisational, economic, demographic, psychological, technological, institutional and political factors. Also the factors that influence the differences of men and women in business in three ways (increase, decrease and neutral) are excluded. Having completed a comparative analysis of gender differences in entrepreneurship, the conclusion was made that the gender differences discussed and analysed in literature are relevant also to Lithuanian entrepreneurs. An expert survey revealed that enterprises managed by men are bigger, exist longer than the ones managed by women; however, the fields of business establishment of both men and women are very similar. It is important to note that the theory emphasises different value systems of genders in obvious practise.

Now you see them, now you don't: gender differences in entrepreneurship

PurposeWhile the numbers of, and research on, women entrepreneurs have accelerated radically in recent years, the rates of women entrepreneurs remain significantly lower than men's. Research has shown that subjective perceptual variables have a crucial influence on the entrepreneurial propensity of women and account for much of the gender differences in entrepreneurial activity. The paper aims to describe three studies that addressed gender differences in entrepreneurial perceptions, testing predictions derived from Schneider's Attraction Selection Attrition (ASA) model.Design/methodology/approachEach study focused on a different subject population with different entrepreneurial activity. The first was a national telephone survey that involved 514 Israeli adults. The second involved 313 Israeli management students who responded to a self‐report questionnaire. The third involved interviews with 101 Israeli small business owners.FindingsThe results of the first study showed few gender differences in entrepreneurial traits and values. The results of the second study showed large gender differences in the willingness to start a business among management students and smaller differences among students who intend to start a business. Gender differences were far smaller among actual business owners. Alone and together the three studies support Schneider's ASA model.Practical implicationsThe practical implications of these findings are addressed.Originality/valueThe paper provides valuable information on gender differences in entrepreneurship.

Mexican-Hispanic Self-Employment Entry: The Role of Business Start-Up Constraints

This article examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry using the 1996 panel of the Survey of Income and Program Participation (SIPP). The data show that Mexican-Hispanics are less likely to be self-employed or enter self-employment, relative to non-Hispanic whites. The authors analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital “intensiveness,” or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups. The authors show that the lower self-employment entry rates among Mexican-Hispanics are due to lower entry rates into business ownership of firms in relatively high-barrier industries. In fact, Hispanics are more likely to start up a business in a low-barrier industry than whites.

Hispanic Self-Employment: A Dynamic Analysis of Business Ownership

This paper analyzes causes of the low self-employment rates among Hispanics, which are nearly half of non-Hispanic white self-employment rates. Relatively little is known of the reason for the lower entrepreneurship rates among Hispanics, the fastest growing ethnic group in the U.S. The paper analyzes the self-employment gap by studying self-employment entry and exits, which determine the observed self-employment rates, utilizing nationally representative longitudinal data, the 1996 panel of the Survey of Income and Program Participation (SIPP). The data reveals differences between Mexican-Hispanics and Hispanics not of Mexican descent, referred to as Other-Hispanics. While Mexican-Hispanics are less likely to enter self-employment, relative to whites, Other-Hispanics are more likely to start a business. The differences however, are relatively small but shown to be meaningful in explaining the white-Hispanic self-employment rate gap. The data show large differences in business survival rates between Hispanics and whites. Mexican-Hispanics are almost twice as likely to exit business ownership in a year compared to whites. Our results indicate that differences in education and financial wealth are important factors in explaining differences in entrepreneurship across groups. We also show that the lower self-employment entry rates among Mexican-Hispanics is due to lower entry rates into business ownership of firms in relatively high barrier industries. In fact, Hispanics are more likely to start-up a business in a low barrier industry than whites. Differences in the industry composition across groups is also discussed and analyzed as a determinant of differences in business survival rates.

Regional differences in the development of Chinese small and medium‐sized enterprises

PurposeThis paper aims to investigate the patterns of and reasons for regional differences in entrepreneurship among Chinese provinces (excluding Hong Kong and Taiwan).Design/methodology/approachThe paper employs a linear regression model to examine determinants of regional entrepreneurship in China.FindingsEvidence suggests that provincial differences in entrepreneurship were directly related to local business growth, but not to factors such as level of local business development, urbanisation rate, level of market economy, level of salary and ratio of unemployment. The differences among economic growth in various regions contributed directly to differences in entrepreneurship.Research limitations/implicationsThere is a need to determine the spatial patterns of entrepreneurship by using panel data in a more sophisticated econometric model. A further investigation of regional entrepreneurship in China is planned for the near future.Practical implicationsActive entrepreneurship in a region can contribute to the economic growth of the region, leading to more active enterprising activities. It is therefore argued that one of the effective ways to boost entrepreneurship and small business development is to advance the economic growth of a region.Originality/valueThe paper adopts an industrial location perspective on determinants of business growth and its links with regional entrepreneurship.

Gender differences in ethnic entrepreneurship

Gender-based differences are the most important topic of discussion in female entrepreneurship studies. While earlier studies focused on psychological and sociological characteristics of female entrepreneurs, assuming there were only a few differences between males and females, more recent studies have addressed gender-based differences in entrepreneurship from a new perspective, referred to as the integrated perspective, which is rooted in psychological and sociological theory. This perspective focuses on gender differences in entrepreneurial characteristics and performance from the perspective of liberal feminist and social feminist theories, which attempt to explain the basis of the lower status of women in society. Against this background, the aim of the present paper is to investigate gender-based differences in a special field of entrepreneurship, viz. ethnic entrepreneurship, and to describe male and female profiles of ethnic entrepreneurs and enterprises.

Financing the Celtic Tigress: Venture financing and informal investment in Ireland

This study explores gender differences in entrepreneurship and informal investment in Ireland, a country with one of the lowest rates of female entrepreneurship in the developed world. Females in Ireland are less likely than males to be engaged in either the demand for (as entrepreneurs), or the supply of (as informal investors), entrepreneurial finance. Using Global Entrepreneurship Monitor data from a telephone survey of nearly 6 000 individuals, we present a comparative analysis of 73 female and 172 male nascent entrepreneurs, and 40 female and 91 male informal investors. We find no differences in the planned absolute financial capitalization of new ventures of female and male nascent entrepreneurs or in the investments made by female and male informal investors. We compare the full sample (from which we identified the nascent entrepreneurs) and find that females, when compared to males, are less likely to report perceiving opportunities, less likely to perceive they have the skills and knowledge required to start a business, and are less likely to know a recent entrepreneur. We argue that this might suggest that there may be less demand for start-up capital from females. We conclude by suggesting that policies that focus narrowly on the provision of finance to female entrepreneurs may have limited impact on the levels of female entrepreneurial activity.