Swedish Entrepreneurs Research Articles

Refugee entrepreneurship motivations in Sweden and Germany: a comparative case study

Refugee entrepreneurs can make a significant contribution to sustainable growth and development in host countries. However, comprehensive comparative studies of refugee entrepreneurial motivations are scarce, particularly in the absence of a theoretical framework on entrepreneurship motivation that is suitable for such contexts. This is a research topic that is increasingly of interest to scholars and policymakers working with refugee workforce integration, particularly in light of forecasted increases in global forced displacement over the next years. This paper tests and extends newly constructed entrepreneurship motivation measures, comparing person-related factors and the perceptions of environmental-related factors for Syrian refugee entrepreneurs in Sweden and Germany. The results indicate that their motivations differ between the two countries with respect to market conditions, the educational environment, dissatisfaction, and know-how. However, refugee entrepreneurs in both countries have similar levels of entrepreneurial ambition and attitude and are motivated by similar perceptions of social environments and cultural norms. This paper identifies how entrepreneurship motivation differences could be considered by governments to better shape and inform host countries’ programs and policies to improve refugee entrepreneurship and subsequent integration.

The Swedish Slave Trade Efforts at the Turn of the Nineteenth Century: Case Studies in Nordic Transimperial History

ABSTRACT The relatively minor imprint Sweden had on the transatlantic slave trade has been seen as one of the consequences of Sweden being a ‘failed empire’. This conception is misleading. By utilising a transimperial perspective on new research findings, the article shows that there was no lack of ambition among Swedish entrepreneurs in the context of the slave trade. The relative lack of Swedish slaving voyages rather had to do with specific circumstances such as Sweden’s late entrance into the status of a colonial power, as well as patriotic politics in the wake of king Gustav III’s death in 1792. By examining a range of case studies, specifically slaving voyages organised both from the Baltic and from Sweden’s colony Saint-Barthélemy in the Caribbean, the historical record is clear that from the end of the eighteenth century onwards, there was an active Swedish engagement in the slave trade. Moreover, it was made possible by transimperial contacts and allowances. Reviewing this evidence, the article argues that all Swedish slaving voyages were complex and decentralised undertakings which were organised in spite of the lack of Swedish state policy, often with some form of foreign involvement, whether it consisted of mercantile networks, capital or knowledge.

Entrepreneurial action and eudaimonic well-being in a crisis: Insights from entrepreneurs in Sweden during the COVID-19 pandemic

Based on transactional stress theory, this article provides an empirical glimpse into how entrepreneurs in Sweden have experienced the COVID-19 pandemic. The authors investigated the impact of two crisis-induced stressors (unpredictability, loneliness) on two aspects of entrepreneurial success (business and personal success) through the indirect effect of eudaimonic well-being. They examined the role of crisis-related entrepreneurial actions (applying for government financial support, engaging in online business activities). Results from a sample of entrepreneurs operating in Sweden in the summer of 2020 revealed that unpredictability and loneliness were negatively related to business and personal success via eudaimonic well-being. Results for the moderating effects of the crisis-related entrepreneurial actions revealed mixed findings. The results provide valuable insights into the mechanisms that tie entrepreneurial stressors and opportunities for action to eudaimonic well-being, and in turn, entrepreneurial success in the early days of the crisis caused by the pandemic.

In the Eye of the Storm: Entrepreneurs and Well-Being During the COVID-19 Crisis

In this paper, we examine the impact of the COVID-19 pandemic on the well-being of entrepreneurs. We surveyed a representative sample of Swedish entrepreneurs and wage employees at different stages of the COVID-19 pandemic. The survey data, combined with register data, show that the COVID-19 outbreak has a negative effect on the well-being of entrepreneurs in terms of increased perceived stress. However, this negative effect is weaker for entrepreneurs who feel younger than their chronological age and entrepreneurs who are geographically distant from the epicenter of the crisis.

Profiles of entrepreneurial success during two centuries. The case of Sweden, with comparisons to Italy

One of the challenges of studying entrepreneurship is the lack of longitudinal data. One way to address this is through a promising new statistical approach called prosopography, where standardised biographies of prominent entrepreneurs are systematically compiled and analysed using quantitative methodology. This method combines the detailed information available in biographies at the micro-level, with a macro-level systematic approach – an approach that, notably, has been previously applied to Italy. Here, we compile a dataset of 267 Swedish entrepreneurial biographies that focus on individuals active from the early 19th century until the present day. We find five distinctive clusters of entrepreneurs. Innovation intensity appears to be important, and, as expected, inventors represent a distinct cluster in Sweden. Other results are more novel, and in part go against the conventional view of Sweden as an industrial economy. For instance, many Swedish entrepreneurs, of both sexes, have developed what are best described as advanced service innovations, and stand as sole founders of the ventures. The institutional context clearly affects the type of entrepreneurs that emerge, but there is also evidence of interaction and reverse causation where prominent entrepreneurs have influenced the institutional development of Sweden. As a result, there is a hybrid version of capitalism combining high redistributive taxes with free market capitalism and ample room for Schumpeterian entrepreneurs as well as dynastic entrepreneurs – thereby also combining private wealth creation with distribution. While one of the world’s least family -oriented cultures, high -impact Swedish entrepreneurs are surprisingly dynastic in their entrepreneurial endeavours.

The best of two worlds? Ethnic minority entrepreneurs and family in entrepreneurial activities

Ethnic minority entrepreneurs navigate between at least two different cultures. This can bring a number of advantages for their entrepreneurial endeavors, not least if those are based on ethnic-specific competences, such as ethnic cuisine. But they can also represent a challenge, for example when peers from the same group expect preferential treatment. Prior research has often pointed at the important role of family involvement for ethnic minority entrepreneurs, but has typically considered the family and/or business as the unit of analysis. In this study, we instead focus on the level of ethnic minority entrepreneurs and explore their perceptions about the role of family for creating and sustaining entrepreneurial activities. Based on an interview study with 34 ethnic minority entrepreneurs in Sweden, we identify three patterns and coping strategies for navigating between different cultures and expectations. These patterns include entrepreneurial ethnic loners, ethnic offspring entrepreneurs and ethnic recourse entrepreneurs.

Entrepreneurial experiences from venture capital funding: exploring two-sided information asymmetry

ABSTRACT Information between entrepreneurs and venture capitalists (VCs) is often shared unequally. VCs are experienced and professional dealmakers, while entrepreneurs have great knowledge about their venture but usually limited knowledge about VCs’ financing process and requirements. For entrepreneurs, VCs’ asymmetric information advantage can lead to difficulties in receiving funding, unfavorable terms, or negative startup experiences. Based on in-depth interviews with 20 Swedish entrepreneurs, this study investigates entrepreneurial experiences of mitigating the problems arising from information asymmetry in a VC–entrepreneur relationship. Four themes emerged from these interviews: (1) choosing the optimal time to raise the initial external capital, (2) ensuring that the VC fits the startup, (3) studying and understanding the venture capital process beforehand, and (4) building an open and honest relationship with the VC. Although entrepreneurs have not developed any formal tools similar to what VCs employ to mitigate information asymmetry risks, our study shows that entrepreneurs use informal tools based on their own and others’ experiences. This indicates that the entrepreneur might play a more active role in the VC–entrepreneur relationship than most previous studies have assumed.

Entrepreneurs’ Cognitive Ability and New Ventures’ Performance

Why do some newly founded ventures succeed, while others fail? To address this fundamental question in entrepreneurship field, we focus on the role of cognitive ability, and specifically how it influences selecting founding team members. We use a near-exhaustive sample of male Swedish entrepreneurs with available data on their cognitive ability. After controlling for non-cognitive ability of entrepreneurs, our results suggest that one standard deviation increase in cognitive ability of entrepreneurs is associated with about %23 increase in sales. This effect is significantly larger for entrepreneurs in high-tech industries relative to entrepreneurs in low-tech industries. This relationship is further mediated by founding team size and their collective cognitive abilities. Our study highlights dependence of new ventures’ growth on entrepreneurs’ talent to assemble high-quality founding teams.

In the Spirit of Perestroika? Swedish Involvement in the Soviet Baltic Economies, 1988-1991

In the literature on the Soviet Baltic republics‘ path to independence, Sweden usually figures among the rather cautious Western players. The social democratic government of Ingvar Carlsson did indeed tend to avoid any clear commitment to the Baltic cause due to concerns about its relations with Moscow and the credibility of Sweden‘s neutrality policy. Underneath the diplomatic level, however, a whole new infrastructure of Swedish-Baltic economic linkages emerged at the peak of perestroika, paving the way for the extraordinarily close trade and business cooperation between Sweden and its Baltic neighbors from 1991 onwards. Largely unrestricted by diplomatic constraints, Swedish entrepreneurs, investors and advisors established numerous links to the evolving Baltic business environment, which at the time was promoted as a bridge to the vast Soviet market. The reformoriented Soviet Baltic governments, on their part, saw the emerging ties with Swedish enterprises, trade organizations and business schools as a way to gradually reintegrate the republican economies into the structures of Western trade and business. Cooperation with Swedish investors and economists, which to a large degree was orchestrated and coordinated by Swedes with Baltic roots, indeed played a key role in the process of implementing an increasingly radical pro-market agenda. The Nordic connection facilitated the early transfer of market thinking and practices and kicked off a long-term rearrangement of economic linkages across the Baltic Sea, securing Sweden‘s dominant position in the region for decades to come. Taking into account these emerging patterns of transnational cooperation thus contributes to a more nuanced understanding not only of the post-Soviet economic transformation, but also of the birth of a new regional economic order that accompanied the geopolitical changes.

Network collaboration for local and regional development - the case of Swedish women entrepreneurs

This study explores women entrepreneurs' participation in networks with focus on local community collaboration. Using case study methodology with 14 qualitative interviews in two phases with business counsellors and women entrepreneurs, participatory observations and document studies, this study explores women entrepreneurs in smaller cities in Sweden and their collaboration in networks. Results state that women entrepreneurs participate in various local community networks and that networks are viewed as valuable assets for business development. Women entrepreneurs strategically choose to join strong networks that have an impact on local community development. Challenges faced are mainly related to the role as entrepreneur and running a business in a smaller city. However, some specific gendered challenges are lack of trust or respect from other business and public actors, especially in contact with authorities. The main sources for renewal processes and knowledge sharing are co-owners, staff, digital tools, networks partners, families and friends.

Revolution! Svenska erfarenheter från Ryssland

Abstract: Review of Revolution! Swedish experiences from RussiaBirgitte Beck Pristed reviews Revolution! Swedish experiences from Russia, edited by Alexander Husebye, with contributions by Bengt JAngfeldt, Ulrika Knutson, Martin Kragh, Benito Peix Geldart, Gunnar Åselius. The volume is issued by the Swedish Center for Business History on the occasion of the 100th anniversary of the Russian Revolution and examines the postrevolutionary fate of Swedish entrepreneurs and their extensive business activities in Russia.

Opportunity related absorptive capacity and entrepreneurial alertness

Extending the conceptualization of absorptive capacity, we propose the concept of opportunity related absorptive capacity, defined as an entrepreneur’s absorptive capacity during the opportunity development phase. Alertness, as an entrepreneurial schema bridging internal knowledge-building activities with external opportunity-related knowledge, could be positively associated with opportunity related absorptive capacity. In this exploratory study based on a sample of 93 Swedish entrepreneurs who had at least one patent associated with their venture, alertness is positively associated with opportunity related absorptive capacity.

The market value of trans-cultural capital. A case study of the market of provision for Scandinavian retirement migrants in Spain

ABSTRACT The aim of this article is to analyse in depth the market of provision for Scandinavian retirement migrants in Spain answering the following research questions: a) what kind of goods and services are typically on offer in the market oriented to Scandinavian retirees?; b) what are the main characteristics of the people who work in this market?; and c) how can we explain the varying levels of success that different providers have? To deal with the last research question we use a Bourdieusian framework to seek out connections between the type(s) of capital that each provider possesses (economic, social, cultural) as well as her/his living conditions. Our results indicate that ‘trans-cultural capital’ (Triandafyllidou, A. 2009. “Sub-Saharan African Immigrant Activists in Europe: Transcultural Capital and Transcultural Community Building.” Ethnic and Racial Studies 32 (1): 93–116) a form of cultural capital defined as the ability to navigate between two cultures, is the key determinant that differentiates those who can economically benefit from retirement migration from those left behind. High levels of trans-cultural capital almost guarantee success in this market, but the absence of this form of capital among the vast majority of the local population explains the relatively small impact that retirement migration has on economic employment opportunities for locals. Our results are based on interviews with 80 Swedish retirement migrants, 120 workers and entrepreneurs who provide services for these migrants, and 20 experts in 24 villages on the Southern coast of mainland Spain as well as in the Canary Islands.

A leadership development programme for agricultural entrepreneurs in Sweden

ABSTRACTPurpose: This article describes the five-phase process of a leadership development programme conducted with agricultural entrepreneurs who own and manage dairy farms in Sweden. The programme primarily focused on leadership of employees and on self-leadership. The article’s purpose is to present a template for leadership development programmes that can be used in the agricultural sector and in other industry sectors as well. Design/Methodology: The empirical data come from interviews with agricultural entrepreneurs, agricultural advisors and authors of a book on leadership in its various forms. Observations were also conducted of the instruction in the leadership development programme. Findings: First, agricultural entrepreneurs (and possibly entrepreneurs in other sectors) benefit from leadership development programmes in which the concept and practice of self-leadership are emphasized. Second, such programmes are more valuable to participants if other actors (e.g. academics and advisors) are participants. Third, coaches are useful as support for the programmes’ participants. Practical Implications: An implication of this study is the finding that working with the knowledge transfer and dissemination to advisors and entrepreneurs in the agricultural sector can enhance leadership competences in the industry. Role transformation (e.g. advisor to coach) can also enhance the transfer of such leadership competences. Theoretical implications: An implication for theory is to include a self-leadership module in leadership theories about learning leadership in development programmes. Originality/Value: Knowledge transfer and dissemination through leadership development programmes for agricultural advisors and entrepreneurs can have a beneficial effect on industry leadership and management. In addition to the traditional leadership skills that many leadership development programmes teach, such programmes also need to emphasize self-leadership.

Exclude Me Not: The Untold Story of Immigrant Entrepreneurs in Sweden

This article examines the perspectives of immigrant entrepreneurs on the barriers they face regarding their inclusion in public procurement in Sweden through the so-called supplier diversity programs. Drawing upon modern stakeholder theory and transaction cost economics, this study aims to identify potential barriers such entrepreneurs face in succeeding as suppliers to the public sector. Data were collected through interviews with immigrant entrepreneurs who had experience with the public procurement tender process in Sweden. The results reveal that immigrant entrepreneurs doing business with public procurement face several barriers, ranging from economic to social ones such as information, advertising, human resources, and undercapitalization. The interviewees believe that such barriers weaken their performance and hinder their success in public procurement tenders. When it comes to supplier diversity programs, the entrepreneurs under study were either unaware of such programs in public procurement in Sweden or did not believe in their effectiveness.

Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship

We integrate insights from the social embeddedness perspective with research on immigrant entrepreneurship to theorize on how family resources influence exit from entrepreneurship among previously unemployed immigrant entrepreneurs. Results from a cohort study of immigrant entrepreneurs in Sweden reveal that family resources are important for immigrants to integrate economically into a country. We find that having family members in geographical proximity increases immigrant entrepreneurs' likelihood of remaining in entrepreneurship. Further, family financial capital enhances immigrant entrepreneurs' likelihood of remaining in entrepreneurship as well as their likelihood of exiting to paid employment. Although often neglected in immigrant entrepreneurship studies, resources accruing from spousal relationships with natives influence entrepreneurs' exit behavior. We discuss contributions for research on entrepreneurial exit, entrepreneurs' social embeddedness, and immigrant entrepreneurship.

Two sides of the same coin: Dutch rural tourism entrepreneurs and countryside capital in Sweden

This article contrasts Sweden's tourism policy considering sustainable growth and increased employment with experiences and evaluations of Dutch rural tourism entrepreneurs in Sweden. The study employs notions of countryside capital, investigating the effects on Dutch rural tourism entrepreneurs of experiences with Swedish national tourism policy aims and local populations. A tourism-migration nexus occurs where the entrepreneurs are attracted by countryside capital before migration and use this capital in their firms to attract new tourists after migration. Interviewees tell of experiences which frustrate optimal utilization of countryside capital. In combination with flexible attitudes conceptualized as multi-local living and strategic switching, this results in the risk of losing the entrepreneurs' socio-economic impetus for lagging rural areas. The article relates this loss to incomers' rural tourism business transfers after the initial start-up phase and questions the alleged transition from countrysides of production to countrysides of consumption.

The prevalence, characteristics and well-being of 'necessity' self-employed and 'latent' entrepreneurs: findings from Sweden

Self-employment is often discussed in terms of 'push' and 'pull' factors. The aim of this article is to assess not only the prevalence of 'necessity' self-employed and 'latent' entrepreneurs in Sweden, but also the characteristics in terms of socio-demography, personality traits, intrinsic work motivation and preference for independence associated with each group. In addition, the article investigates whether 'necessity' self-employment and 'latent' entrepreneurship are related to four measures of well-being. This is done using a nationally representative survey of the self-employed (small-business owners, n = 2,483) and regularly employed (n = 2,642) in Sweden. The main findings indicate that 'necessity' self-employed have characteristics and preferences that differ from other (non-'necessity') self-employed. They display relatively low intrinsic work motivation and preference for independence as well as scores on personality traits typically associated with entrepreneurship. They also report lower levels of work autonomy, job-satisfaction, life satisfaction and family-life satisfaction than other self-employed. 'Latent' entrepreneurs resemble entrepreneurs in many ways but they nevertheless report lower levels of well-being than non-'necessity' self-employed.

The effect of local business climate on employment

Purpose– The purpose of this paper is to analyse empirically whether policies to improve the local business climate affect employment in general, and among groups of immigrants that suffer from structural unemployment.Design/methodology/approach– The paper analyses the relation between Swedish entrepreneurs’ perception of the local business climate and total employment as well as employment among immigrants born outside of Europe, a group that tends to be particularly affected by structural unemployment. Instrumental variable and Arellano-Bond GMM estimation indicate that a better local business climate improves immigrants employment considerably more than total employment.Findings– The results suggest that improvements in institutions and policies that entrepreneurs perceive as shaping the business climate may have an important effect on employment, in particular employment of groups that tend to have high rates of structural unemployment. Given the limitations, the estimates appear robust over a variety of specifications.Research limitations/implications– The authors use a subjective measure of local business climate policies, but instrument this with an exogenous variable and lagged variables. The unit of observation are Swedish municipalities, which in contrast to other countries control many factors important for business.Practical implications– Employment policies often focus on labour market institutions. The results suggest that other policies and their local implementation may be equally important for employment. Unfortunately the study does not reveal much detail of which specific measures give the greatest effects. That remains to be done in future research.Social implications– The positive employment effects the authors find are particularly large for immigrants born outside of Europe. If the results are correct, then better local business climate could make an important contribution to social cohesion.Originality/value– While there are more studies that analyse the relation between entrepreneurship and employment, much fewer previous studies have tried to establish a link between business climate policies and employment. The authors do this with a novel approach.

The influence of functional and relational proximity on business angel investments

Business angels are a vital source of capital for innovative start-up firms. However, many potentially attractive investment opportunities are rejected during the angel's decision-making process. Information asymmetry, risk and distrust in the relationship between the investor and the entrepreneur result in investment barriers. The concept of proximity has been proposed as a conceptual foundation to understand how the relationship between angel and entrepreneur hinders or benefits the investment decision. Specifically, researchers distinguish between the functional (geographic) and relational dimensions of proximity. This paper uses structural equation modelling to examine the influence of proximity on angel investments based on data from 226 investment situations gathered in fall 2014 from 56 business angels and 87 entrepreneurs in Sweden. We find that the relationship between geographic proximity and the likelihood of a positive investment decision is indeed positive and significant, supporting prior research; however, it is fully mediated by relational proximity.