Latent Entrepreneurs Research Articles

Pixels to Paychecks: Understanding The Determinant of Latent Entrepreneurial Transition in Digital Context

In the ever-changing landscape of China’s digital economy, comprehending the transition drivers from latent to active participation in entrepreneurship is critical. This research explores the factors shaping the decisions of latent entrepreneurs to become active entrepreneurs in a digital context. Using simple random sampling, this study randomly selected 18 industries within China’s major cities. This study collected cross-sectional data from 485 respondents in high-tech and low-tech industries across six major Chinese cities and tested the model using partial least structural equation modeling (PLS-SEM). Statistical findings conducted by SmartPLS reveal a nuanced interplay between personal factors and external traits in shaping the transition to active entrepreneurship. In particular, entrepreneurial competence, digital skills and literacy, and adaptability are crucial personal factors influencing this transition. Access to the necessary technology, startup cost, market and customer base, and government support are external traits found to significantly shape individual decisions to venture into digital entrepreneurship. Surprisingly, Logistics and Transportation (LAT) had no substantial impact on the transformation. This investigation strengthens entrepreneurship theory while also providing policymakers and industry actors with practical insights. Personalized training for entrepreneurs, spending on digital infrastructure, evidence-based regulations, and enhanced business innovation initiatives are among the recommendations.

Does local government corruption inhibit entrepreneurship?

The dominant ‘sand in the wheels’ view holds that entrepreneurship is strongly inhibited by corruption. Challenging this, the ‘grease the wheels’ view maintains that corruption might increase entrepreneurship in highly regulated economies. We extend the basic predictions of these theories by examining entrepreneurs’ start-up decisions, as well as their location choices, in a seemingly low-corruption environment: Swedish municipalities. Combining a validated index of corruption perceptions in local government with population data on new entrepreneurs, nested logit models reveal that even in a low-corruption setting such as Sweden, perceptions of corruption can deter latent entrepreneurs. We also find that a minority of entrepreneurs relocate from their home municipalities to establish their start-ups elsewhere. Surprisingly and contrary to expectations, these relocating entrepreneurs often relocate from relatively low-corruption municipalities to others that are more corrupt. Implications for future research and public policy are discussed.

A cross-national study of entrepreneurial intent: the contextual effect of social trust and trust in government

This multilevel, cross–national study examines the influence of social trust and trust in government on latent entrepreneurs’ intention to start a business. Building upon the theory of institutional hierarchy and social relations, this research shows that the negative impact of fear of business failure on entrepreneurial intention varies across countries. Results indicate that such a negative relationship is weaker in countries with higher levels of social trust and trust in government. In other words, in a trusting environment, a sense of uncertainty and lack of control of start–up issues may be mitigated by conflict compromise and efficient exchange of information among agents. Such understanding has profound academic, policy and business implications in both developing and developed nations.

The role of entrepreneurship policy and culture in transitional routes from entrepreneurial intention to job creation: a moderated mediation model

It has long been assumed that entrepreneurship has significant social and economic benefits, including the creation of jobs. Based on the literature, however, small businesses have often had difficulty expanding to recruit and even surviving due to their plight. In spite of this, little is known about how institutional factors facilitate and constrain the path from entrepreneurial intention to create jobs. Therefore, we develop and test a moderated mediation model to examine how the government's policymaking and national entrepreneurship culture regulate entrepreneurship-based job creation. With the Adult population survey and the National expert survey of the Global Entrepreneurship Monitor (GEM), this study compiled 417 observations from 39 European and North American countries between 2002 and 2020. We prove the partial mediation effect of entrepreneurial behaviour on the relationship between individuals' entrepreneurial intention and job creation. The findings of our study suggest that institutional changes should be mobilised to relieve the pressures on small business owners instead of residing on size-neutral approaches. Furthermore, a progressive, contextually based entrepreneurial culture serves as a critical stimulant to the growth of latent entrepreneurs and early-stage start-ups. Therefore, the study not only describes a new path that underpins entrepreneurship-based job creation, but also highlights a new motive for necessary institutional change.

A Cross-National Study of Entrepreneurial Intent: The Effect of Social Trust and Trust in Government

This multilevel, cross-national study examines the influence of social trust and trust in government on latent entrepreneurs’ intention to start a business. Building upon theory of institutional hierarchy and social relations, this research shows the negative impact of fear of business failure on entrepreneurial intention varies across countries. Results find such negative relationship is weaker in countries with higher levels of social trust and trust in government. In other words, in a trusting environment, a sense of uncertainty and lack of control of startup issues may be mitigated by conflict compromise and efficient exchange of information among agents.

Attitude of Students Towards Participation in Agribusiness in Edo State, Nigeria

The study investigated attitude of students towards agribusiness and constraints that can impede latent entrepreneurs from starting and running agribusiness. Simple random sampling was used to select 83 students from the list of students of college of agriculture participating in entrepreneurship training in Rubber Research Institute of Nigeria and Presco farm. Structured questionnaire was used to collect data for the study. Data obtained were described using percentage, mean and analysed using logit regression at p ≤ 0.05. Result revealed that majority of the students had favourable attitude ( 3.43) towards entrepreneurship and 97.6% were willing to be entrepreneur. Difficulty in finding customers ( 2.02) and fear of tough competition 2.02) were perceived as constraints to entrepreneurship. The most important factors that influenced the students’ willingness to become entrepreneur after completion of schooling were marital status and number of family members self-employed. The study concludes that the youth had favourable attitude toward entrepreneurship and are willing to be entrepreneur as long as market and start-up capital are available.
 Keywords: Youth, attitude, entrepreneurship,

‘Non-Routine Entrepreneurs’: Another Path of Realizing Entrepreneurial Intentions

The paper seeks to introduce the definition and to specify the characteristic features of “non-routine entrepreneurs”. Using the notion of entrepreneurship by Shane and Venkataraman (2000), it explains “non-routine entrepreneurs” as persons driven primarily by the idea of exploring entrepreneurial opportunities, but less interested in being formally engaged in owing/managing a business or to claim additional incomes from it. The empirical base of the papers is two cases, labelled as a “patriot” and a “big tipster”, from a panel of entrepreneurs, self-employees and start-ups the author surveyed in Moscow in three annual waves (2013–2015, N = 13). The paper shows the differences between the “non-routine entrepreneurs” and already well investigated groups (latent entrepreneurs, informal entrepreneurs, hybrid entrepreneurs, freelancers) and examines the personal (human capital) and social (transitional shock) context of the evolution of entrepreneurial intentions and their motivation. The “non-routine-entrepreneurs” fill in the lack of evidence about entrepreneurially minded persons with non-monetary goals, or non-economic meaning of results from such activities. Thus, the paper contributes to the literature on the reason and the intentionality of entrepreneurship. It concludes that “non-routine entrepreneurship” might become the choice of many people in contemporary societies where the boundaries between different kinds of economic activities are blurred.

Why latent entrepreneurs delay their launch to the market in Mexico

Entrepreneurship fosters job creation and GDP growth, a must for emerging countries. Due to its strategic geographical position, the region of Jalisco, Mexico, is an attraction pole with more than 650 high-tech corporations, exporting a total value of USD 21 billion (around GBP 16.4 billion) annually in tech products and services, being micro and small and medium enterprises a significant part of their companies. In this paper, we introduce a new entrepreneurial perspective about latent entrepreneurship, and we propose a multigroup structural equation modelling (MSEM) model using global entrepreneurship monitor (GEM) data. The model explains why latent entrepreneurs delay launching to the market, based on their fear of failure, perceived opportunities, and the emulation effect formed when nascent entrepreneurs interact with other successful colleagues. The main finding of this study suggests that in Mexico latent entrepreneurs' fear of failure does not moderate the relationship between perceived behavioural control, entrepreneurial intentions, perceived opportunities, and the knowledge of other successful entrepreneurs.

Why latent entrepreneurs delay their launch to the market in Mexico

Entrepreneurship fosters job creation and GDP growth, a must for emerging countries. Due to its strategic geographical position, the region of Jalisco, Mexico, is an attraction pole with more than 650 high-tech corporations, exporting a total value of USD 21 billion (around GBP 16.4 billion) annually in tech products and services, being micro and small and medium enterprises a significant part of their companies. In this paper, we introduce a new entrepreneurial perspective about latent entrepreneurship, and we propose a multigroup structural equation modelling (MSEM) model using global entrepreneurship monitor (GEM) data. The model explains why latent entrepreneurs delay launching to the market, based on their fear of failure, perceived opportunities, and the emulation effect formed when nascent entrepreneurs interact with other successful colleagues. The main finding of this study suggests that in Mexico latent entrepreneurs' fear of failure does not moderate the relationship between perceived behavioural control, entrepreneurial intentions, perceived opportunities, and the knowledge of other successful entrepreneurs.

Regulation and entrepreneurial intention: cross-country evidence

PurposeEntrepreneurship, along with its effect on economic growth, has been a major topic of research for quite some time now. However, none of these studies employs the use of entrepreneurial intention, a key indicator of latent entrepreneurs, as a measure of entrepreneurship. Till now, some small-scale studies have been done using survey data, with results indicating that external entrepreneurial environment affects entrepreneurial intention. A handful of studies have also looked at the linkages between economic freedom and entrepreneurial activities. The paper aims to discuss this issue.Design/methodology/approachUsing a panel data setting, this paper investigates the effects of economic freedom, especially regulation, on entrepreneurial intention. The empirical analysis uses data for 79 countries from 2001 to 2012.FindingsThe findings suggest that stricter credit market regulation reduces entrepreneurial intention whereas more stringent labor regulations restricts job availability and thereby encourage more people to take up entrepreneurship as a career choice.Research limitations/implicationsThe entrepreneurial intention data available from GEM is a highly unbalanced data and the data also does not differentiate between latent entrepreneurship in agricultural and non-agricultural sectors.Practical implicationsFuture research should focus more on latent entrepreneurship which is a rough estimate of future entrepreneurs.Social implicationsEntrepreneurship acts as a channel to improve economic growth by creating more jobs and the institutional qualities might act as a barrier for aspiring entrepreneurs to take up entrepreneurship as their career choices in developing countries.Originality/valueThis study has a twofold contribution in the literature. First, it is the foremost large scale study that deals with entrepreneurial intention using secondary data from Global Economic Monitor (GEM) report. Second, this study explores the linkages between economic freedom index and entrepreneurial intention.

The influence of Ghana's national culture on latent entrepreneurs: An application of Social Rule System Theory

The impact of Ghana's national culture on its latent entrepreneurial activities are in frequently studied on - as compare to social, economic and financial influences. The current studyexamined the impact of Ghana's national culture on its latent entrepreneurs amongSmall and Medium Sized Enterprises (SMEs) from the view point of Social Rule System theory. The study employeda simple random sampling technique ineliciting251 respondents from the Business city of Kumasi in Ghana.It employedStructural Equation Modelling statistical technique (SEM) using Amos software version 22 in analysing the data. The results showed that, masculine and high power distance cultures in Ghana have significant positive effects on peoples' intention to become entrepreneurs. High uncertainty avoidance and collective cultures had positive and insignificant effects on latent entrepreneurs. Thestudy presents significant contribution to the existing academic literature on national culture and latent entrepreneurial activities. Italso brings additional step towards a fundamental means of empowering people into SMEs in any developing country. Recommendationsare also providedfor useful suggestionstogovernment and policy makers in Africa towards the improvement of Small and Medium Sized Enterprises.

The influence of Ghana's national culture on latent entrepreneurs: An application of Social Rule System Theory

The impact of Ghana's national culture on its latent entrepreneurial activities are in frequently studied on - as compare to social, economic and financial influences. The current studyexamined the impact of Ghana's national culture on its latent entrepreneurs amongSmall and Medium Sized Enterprises (SMEs) from the view point of Social Rule System theory. The study employeda simple random sampling technique ineliciting251 respondents from the Business city of Kumasi in Ghana.It employedStructural Equation Modelling statistical technique (SEM) using Amos software version 22 in analysing the data. The results showed that, masculine and high power distance cultures in Ghana have significant positive effects on peoples' intention to become entrepreneurs. High uncertainty avoidance and collective cultures had positive and insignificant effects on latent entrepreneurs. Thestudy presents significant contribution to the existing academic literature on national culture and latent entrepreneurial activities. Italso brings additional step towards a fundamental means of empowering people into SMEs in any developing country. Recommendationsare also providedfor useful suggestionstogovernment and policy makers in Africa towards the improvement of Small and Medium Sized Enterprises.

Large firm dominance on country\u2019s entrepreneurship potentials

This paper aims to determine whether countries where large firms are very dominant have less entrepreneurial activities. There is anecdotal evidence that the continued decline in the business dynamism or the number of start-ups in the United States is said to be partly attributed to large firms. One key explanation is that the regulatory environment tends to favor existing large firms – an environment that allows near monopolies and a protection of tiny entrepreneurial elite. Using the Global Entrepreneurship Monitor (GEM) data together with the World Bank – International Finance Corporation’s MSME country indicators, I empirically test whether large firm dominance influences entrepreneurial activities as well as intentions. Using fixed effects regression analysis on unbalanced panel of 40 countries over the period 2002–2007, I found that the entrepreneurship potential of a country is potentially at risk if the growth of large firms’ stake in the economy is left unchallenged. In particular, a one percentage point increase in the share of large firms to total employment is associated with 0.35 percentage point lower total early-stage entrepreneurial activity rate, holding other factors constant. Also, worth noting is the sensitivity of entrepreneurial intentions to large firm dominance. A one percentage point increase in the share of large firms to total employment dampens (i.e., by 0.56 percentage point) intentions of latent entrepreneurs to start a business within the next 3 years, other factors remaining constant. This second-order effect of large firm dominance depends heavily on the country’s institutions. Thus, it is critical for governments to foster a dynamic system that guarantees free competition and rewards creativity. Likewise, it is necessary to review and amend policies that seem to favor large firms that compromise the establishment as well as growth of smaller enterprises.

The influence of anticipated regret on business start-up behaviour

This research note aims to develop the emotional underpinning of early-stage entrepreneurship by examining the influence of anticipated regret, a negative emotion, on the transformation of latent entrepreneurs into nascent entrepreneurs. Drawing on regret regulation theory and two waves of survey data, the analysis demonstrates that anticipated regret manifests as a, feeling for doing, by pushing latent entrepreneurs towards engaging in business start-up behaviour. We conclude that negative emotions exert an important influence on behavioural regulation in early-stage entrepreneurship, fostering the transition from latent to nascent entrepreneurship.

Job Satisfaction of Wage and Self-Employed Workers. Do Job Preferences Make a Difference?

A large body of the literature on job satisfaction concludes that self-employed workers enjoy higher levels of job satisfaction than their wage counterparts. In this article, we test this statement by including as an explanatory variable the preference of individuals for either type of employment. Using data drawn from 24,187 workers in the Spanish private sector, our results show that only self-employed workers report higher satisfaction levels than salaried employees when they actually display a preference for self-employment. Our conclusions posit that it is not self-employment per se, but being on the type of employment of preference (wage or self-employment) what contributes to explain the greater job satisfaction of self-employed workers when compared to employees. Additionally, our findings provide evidence on the lower level of satisfaction of reluctant entrepreneurs when compared to latent entrepreneurs. In other words, self-employed workers who prefer salaried employment are less satisfied than employees who report a preference for self-employment.

Gender gap in latent and nascent entrepreneurship: driven by competitiveness

This study highlights the relevance of gender differences in competitiveness for the gender gap in latent and nascent entrepreneurship. Using data obtained from a recent large-scale survey conducted in 36 countries, we find that individuals who like situations in which they compete with others are more likely to have a preference for being self-employed (latent entrepreneurs) and are also more likely to take steps to start new businesses (nascent entrepreneurs). Moreover, our results suggest that women are less competitively inclined than men in almost all countries in our sample and are also less willing to take risks. The results of a decomposition analysis suggest that gender differences in competitiveness and risk taking contribute significantly to the gender gap in latent and nascent entrepreneurship. Gender differences in competitiveness seem to be relevant, especially for the gender gap in nascent entrepreneurship.

The Social Entrepreneur as Trailblazer: A Non-Normative Role for Social Enterprise in a Market Economy

This paper advances the field of social entrepreneurship by developing a basic economic model of the social entrepreneur as a profit-deviating firm. We then demonstrate how profit deviation lowers the effective operating costs of the firm, allowing social entrepreneurs to recognize, evaluate, and exploit previously unconsidered opportunities. In doing so, social entrepreneurs may generate knowledge spillovers by providing valuable ex-post entry information regarding the expected costs of a venture, thereby providing a public good to latent entrepreneurs in the commercial sector. Based on this new information, the latter may then enter markets previously considered unprofitable, leading to market development and growth. We illustrate the range of market conditions that are relevant for the social entrepreneur and provide one industry- and one company-focused case study to illustrate the model. The model and evidence provide a complementary role for the social entrepreneur beyond the production of collective goods.

Institutions, Latent Entrepreneurship, and Self–Employment: An International Comparison

This paper examines how the institutional environment in 18 countries affects the self–employment decision, as well as the preferences of latent entrepreneurs—individuals who prefer to be self–employed. Latent entrepreneurs fall into two groups, those who are currently self–employed and those who are not—the “truly latent entrepreneurs.” These two groups differ in their responses to changes in the institutional environment. An occupational choice model where institutions affect switching costs informs the empirical model. As institutions such as economic freedom improve, preferences for self–employment increase for both groups, but the effect is greater for those who are currently self–employed.

The Determinants of Latent Entrepreneurship in Japan

This paper examines regional characteristics affecting the latent entrepreneurship in Japan, focusing on regional macroeconomic indicators, existing density of establishments and human capital, and business start-up assistance programs by local governments. We define two types of people having the latent entrepreneurship as follows (1) persons merely wishing to be a self-employed worker, and (2) persons preparing to be a self-employed worker out of the former definition. Total cash earnings and the unemployment rate, which are the macro economic indicators, had positive effects on latent entrepreneurship in Japan. Judging from the significance of their estimations, the latent entrepreneurship is explained by the “Push hypothesis”. If we examine the problem more closely, it is necessary for us to identify government assistance programs which make the latent entrepreneurs more self-employment.

Determinants of entrepreneurial intentions: Mexican immigrants in Chicago

This paper focuses on Mexican immigrants who are considering to start a business but do not so for various reasons (latent entrepreneurs). The research design is unusual in that it queries the individuals at the very preliminary stages of the process when they are contemplating the alternatives, so it is well suited to learn about the determinants of business ownership. First, the findings demonstrate the potential value of personality measures (e.g., risk disposition) for predicting who will want to start a business. Second, the results underscore that having close family members in business exposes individuals to role models and sources of financial and nonfinancial help that might put business ownership within reach of people with modest resources. Third, economic resources in the household, in the form of financial investments, also affect the wish to start a business because they furnish available capital for the start-up.