Low Entrepreneurial Activity Research Articles

Економіка територіальних громад: тенденції в умовах війни та стратегування повоєнного відновлення

The development of the economy of territorial communities largely depends on the presence of business entities within their boundaries and the ability of local self-government bodies to create an environment conducive to the development and functioning of business in the community. The ongoing war has exacerbated the challenges associated with the functioning of business entities, and therefore the development of the economy of territorial communities. Local self-government bodies have a considerable set of tools for local economic development to respond to these challenges. However, the following questions remain open: how and what tools of local economic development do local governments use to stimulate the development of the local economy? The purpose of the study is to identify obstacles to the functioning of business after the onset of russia’s full-scale armed aggression against Ukraine and analyze local economic development tools which local self-government bodies can use in strategic planning of post-war recovery and development of the economy of territorial communities. In the course of the study it is revealed that in the first months of russia’s full-scale armed aggression against Ukraine, there was a drop in entrepreneurial activity. However, the relative stabilization of the front line, the victories of the Armed Forces of Ukraine, and tax regulation measures aimed at mitigating the tax pressure on business during the war ensured a gradual resumption of entrepreneurial activity. At the same time, there was a territorial redistribution of business entities in favor of safer western regions of the country. The challenges of development of the local economy in territorial communities, associated with the conduct of entrepreneurial activity by economic entities (lack of qualified labor potential, low entrepreneurial activity among local residents, loss of logistics chains, declarative nature of business support by local governments) are disclosed and characterized. A classification of local economic development tools that can be used by local self-government bodies to increase the competitiveness of the economy of territorial communities is provided. The tools of local economic development, the use of which is declared by local self-government bodies in strategic documents for the development of territorial communities, are analyzed and critically evaluated.

Создание стартап-студии в качестве ключевого элемента инфраструктуры поддержки молодежного предпринимательства

Issues of support and formation of a system for the development of youth entrepreneurship in Russia in modern conditions are subject to active discussion and research, including at the federal level. The article considers the role of youth entrepreneurship in the economic structure of the country and startups as a key element of it, analyzes the reasons why startups do not achieve economic effect. The solution to the problem of low entrepreneurial activity of young people and the failure of their projects is the creation of specialized platforms for technological entrepreneurship. Various models of startup studios, their advantages and the possibility of integration into the university system are evaluated. The scheme of organization of technological entrepreneurship platform in Udmurt state university and forms of involvement of students and teachers in entrepreneurial activity are described. It is concluded about the role of the platform of technological entrepreneurship in the ecosystem of the university.

Entrepreneurial intention and university: A necessary relationship in regions with high level of unemployment

Purpose: Although university entrepreneurship education as a predictor of entrepreneurial intention (EI) has been verified in the academic literature, few studies have analysed its influence in regions with low entrepreneurial activity. This research provides a new point of view by contrasting students' perceptions with what entrepreneurs consider most relevant. We propose an integrative and multi-perspective framework based on expectancy theory and the theory of planned behaviour, which includes the moderating effect of gender and family imprinting. Design/methodology/approach: A valid sample of 108 business students from the University of Huelva (Spain) served as the basis of the study, whose data were analysed using consistent partial least squares (PLSc) to validate the scales and subsequently test the hypotheses. In addition, 54 valid questionnaires from local entrepreneurs were used for the comparative analysis between entrepreneurs and students. Findings: Our findings showed that the elements associated with university support have a significant, albeit negative, impact on students' intentions to become entrepreneurs. In terms of moderating variables, no significant differences were found by gender, but significant differences were found in the group with entrepreneurial parents. In relation to the determinants of entrepreneurial success, it was found that the students' conceptions of entrepreneurship were closer to those of the entrepreneurs in Huelva than to those of the successful entrepreneurs. Originality/value: This paper contributes to the academic debate on whether universities in general, and business schools in particular, should promote entrepreneurship as the core of education. We believe that these results, despite the specific and limited scope of the study, may be of great interest for university staff in regions with high levels of structural unemployment and low rates of total early-stage entrepreneurial activity (TEA) to incorporate into their academic programmes.

ASPECTS OF TERRITORIAL ORGANIZATION OF ECONOMY BUT INSTITUTIONAL PROVIDING In MODERN TERMS

A problematic trend is the orientation of the regional economy mainly to the raw materials sector, a decrease in the rate of introduction of innovative types of products, and low entrepreneurial activity of the population. The unproductiveness of the economy and the uneven distribution of it increase the asymmetry of interregional and subregional sustainable development. Trends towards increasing disparities are also observed in terms of the volume of industrial products sold, exports, attracting investments, the level of attracting capital investments per person, etc. The uneven level of development of the regions, which especially deepens at the level of cities, towns, and villages, leads to an imbalance of the territory of Ukraine, which threatens its integrity. The growth of territorial disparities in the level and quality of life of the population increases external and internal migration processes, which are practically uncontrollable, lead to the outflow of human resources, especially from border and rural areas, monofunctional cities, and disrupts the settlement system. As a result, there is a growing gap between the center and territories remote from it, loss of control over them, further aggravation of the crisis in underdeveloped territories and their marginalization. In the article the features of influence of territorial organization of economy are investigated and her institutional providing, possibility of creation of new and strengthening of existent methodological contradictions, враховуючі modern calls. It is indicated, priority directions of optimization of the інституціанального providing of territorial organization of economy. It is marked that in modern terms the key factors of territorial organization of economy in the countries-members of ЄС are confess innovative activity, capitalization of human potential and effective management. An author is indicate conceptual principles of optimization of the institutional providing of territorial organization of economy in modern terms

Технологическое предпринимательство как фактор развития России

Technological entrepreneurship is a potential driver of Russia’s socio-economic development. But an optimal combination of environment and business networks (entrepreneurial ecosystem) to be formed is very rare and depends on many factors. The article discusses the potential role of technology start-ups in diversification, economic and employment growth, and adaptation to technological changes. The number of start-ups in Russia had decreased since 2015, and there is a low entrepreneurial activity in comparison with other countries. In general, the change in the industry structure of startups in Russia is consistent with the global trends; the role of knowledge-intensive business services and ICT is high and growing, the share of manufacturing is declining. We revealed the determining role of socio-cultural factors, human capital and universities, business climate and access to foreign markets in the creation and success of technology companies, as well as the contradictory impact of state support. Significant and increasing role of immigrants and diaspora abroad is underestimated for Russia. We noted the inability of the widespread development of successful technology companies (“gazelles”, “unicorns”); identified regional and sectoral priorities for public policy. We examined the main elements and models of national entrepreneurial ecosystems, limitations and prospects for their application in Russia.

Intentions and Barriers of Youth Entrepreneurship in Belarus

Purpose: The primary purpose of this paper is to analyze the entrepreneurial attitude and intentions of young people in Belarus and provide insights into the factors that respondents perceive as barriers to start-up activities. Design/Methodology/Approach: The survey of respondents was conducted through popular social networks in the region by filling out a questionnaire on the Internet. The sample group consisted of 179 people aged 17-35 years. The data gathered in the research were analyzed using descriptive statistics. Findings: As a result of our research, we have found that a high percentage of young people in Belarus have a very positive attitude towards self-employment and a high level of intentions to implement business projects. Despite relatively high implications to entrepreneurship, their activity is low. A detailed analysis of the causal relationships between barriers and the low level of business ideas and projects indicates a lack of entrepreneurial literacy among young people, which is accompanied by limited funding opportunities for start-up projects. Practical Implications: The research results are qualitatively, analyzed feedback from young people on the problems of low entrepreneurial activity which can be used to develop government measures to stimulate the private sector. In addition, the results provide a reasonable basis for further research on the role and relationship of financial and educational barriers to youth entrepreneurship. Originality/Value: Youth entrepreneurship in Belarus is poorly studied. The present research is an independent and comprehensive analysis of entrepreneurial activity among young people in one of the regions of Belarus.

The e-commerce market in Kazakhstan: analysis of the state and development directions Рынок электронной коммерции в Казахстане: анализ состояния и направления развития

Today, the global world is characterized by active development and widespread penetration of information and communication technologies into various spheres of life. This trend has also influenced the ways and formats of doing business: today, e-commerce is already actively developing, which has provided new development prospects for business in the form of savings on transaction costs, the ability to access global markets without the need to be present on the spot, etc. The purpose of the article is to identify barriers to the development of the e-commerce market in the Republic of Kazakhstan and develop proposals for their elimination. The article examines the problems and reasons for the insufficient level of development of e-commerce in Kazakhstan by analyzing the state of the e-commerce market and the main factors that determine the pace of its development. The reasons for low entrepreneurial activity in the investigated market are identified, with the definition of legal, infrastructural and other barriers to development. The research results can be used as a basis for regulating the e-commerce market. In particular, they results can be used to develop and implement programs to stimulate entrepreneurial activity in the e-commerce market and improve its infrastructure.

Prescription opioids and new business establishments

The effects of opioid abuse on health are widely documented, however, its effects on labor market outcomes have only recently become a topic of scientific inquiry. Whereas recent economic studies focus on various measures of labor market participation, the present study analyzes whether opioid prescription rates are associated with the impetus for entrepreneurial activity. By drawing on samples of US counties and US neighbor county-pairs across state borders from the years 2007 to 2016, we find that higher opioid prescription rates are associated with fewer non-employer establishments and new firms employing 1–4 employees. In an ancillary analysis of 50 US states from the years 2006 to 2016, we further show that opioid prescription rates are associated with lower entrepreneurial activity in general and opportunity-based entrepreneurial activity in particular. Overall, both the county-level and state-level analyses show that a higher rate of opioid prescriptions is negatively associated with new business formation. Although the estimated effect sizes are small, they are sizeable in absolute terms.

Analytical Approaches to Estimate Economic Security of the Region

In the conditions of continuing foreign policy instability, the problem of ensuring economic security at the national and regional levels is steadily increasing. The existing methodologies for assessing the security status of regional economies are static. Furthermore, they include a scattered list of indicators that are difficult to consistently interpret when conducting an analysis. Therefore, the authors proposed an indicative dynamic method for assessing changes in the security situation of the regional economy. As the initial data we have used indicators of the development of the Sverdlovsk region for the period from 2010 to 2017 inclusive. We have achieved the following results. Firstly, we have suggested the set of the indicators, which result in changes in the level of economic security of the region. Moreover, we have structured the main factors that have a formative and destructive impact on the economy of the region. Secondly, the conducted analysis has shown that the economic development of the Sverdlovsk region can be divided into two main phases: upward (2014) and downward (from 2014 to the present). This is a consequence of the instability of the regional economy to external shocks due to weak diversification as well as low entrepreneurial activity. Thirdly, the growing threats to the economy of the Sverdlovsk region lead to a decrease in the welfare of the population. In 2015, the level of wages in Moscow was 2 times higher than in the Sverdlovsk region, however, by the end of 2017, the level of wages in Moscow was already 2,2 times higher than in the Sverdlovsk region. At the same time, in Moscow, St. Petersburg and Tyumen, the growth rate of income of the population was about 10-11 % for 2017, while, in the Sverdlovsk region the income growth for the same period was only 5 %. The obtained results can contribute to the development of the Sverdlovsk region strategic programs aimed at ensuring the sustainable socio-economic development of the region. The findings concerning the level of economic security in the Sverdlovsk region are not final. This means the need for further development of economic and mathematical models that will logically complement the methods proposed in this article for assessing the economic security of Russian regions.

The Role of International Academic Professionals in the Development of Entrepreneurial Universities in South Africa: Government Funded Universities Perspective

There is a wide belief and acceptance from leading government and business experts that small enterprises and entrepreneurship are the key components to unemployment and poverty alleviation in any country. Unfortunately, high unemployment levels, low entrepreneurial activity and high small business failure rate have become the main characteristics of the South African economy. Post-school education is partially blamed for the dropping levels of entrepreneurial activities in the country. South Africa’s tertiary education system continues to focus on producing job-seekers instead of job creators. This problem has forced South African Universities to explore more on their potential of becoming more entrepreneurial, but lack of academics in the field of entrepreneurship has been found to be a hindrance to success in this agenda. To avert this obstacle, it is reiterated that internationalisation is key to any university entrepreneurship strategy, and therefore universities are encouraged to internationalise through attracting international entrepreneurial staff. The purpose of this literature review paper is twofold. The first part explores the role played by international academic professionals in the establishment of entrepreneurial universities in South Africa, while the second aims at evaluating the state of entrepreneurship development in higher education and the potential of South African universities becoming more entrepreneurial. The study employs both quantitative and qualitative research techniques (mixed method). The study reveals that South African universities should internationalise if they are to succeed in the entrepreneurial strategy. In addition, it is found that foreign academics have the required skills and bring in the diverse expertise needed for the establishment of entrepreneurial universities. Moreover, the presence of international academics has enhanced entrepreneurship mindset of local staff and students. It is recommended that universities should establish entrepreneurial institutes which are affiliated to them in order to drive this initiative and that the establishment of entrepreneurial universities is the way to go in South Africa if the country is to beat poverty and unemployment.

Cross-cultural differences in the entrepreneurial activity of men and women: a fuzzy-set approach

PurposeThe aim of this paper is threefold: to identify the combinations of national culture dimensions that lead to high (or low) entrepreneurial activity (EA) for men and women, to understand the role of economic development as a relevant condition that combines with national culture dimensions to achieve high (or low) male or female EA and to identify the differences between the configurations that lead to those outcomes.Design/methodology/approachUsing data from the Global Entrepreneurship Monitor (GEM) and from the Hofstede Centre for 77 countries, this study uses a fuzzy-set qualitative comparative analysis (fsQCA) to explore complex causal relations between national culture dimensions, the level of economic development (conditions) and the male and female EA (outcomes).FindingsThis research provides three major insights. First, it is not possible to talk about a single culture that promotes entrepreneurship, but instead in several entrepreneurial cultures. This is particularly interesting when distinguishing between genders, because there are configurations that are specific to one of the genders. Second, different levels of economic development (high/low) combine with national culture dimensions to produce different configurations that can lead to high EA. Third, differences found between the solutions for both genders are higher in the case of the configurations that lead to high EA than in the ones that lead to low EA.Practical implicationsThese results are very important to governments and policy makers with the objective of stimulating the EA within their specific countries. When designing public policies to promote entrepreneurship, they should take into consideration the specific cultural context of the country. The cultural context of each country presents multiple dimensions; therefore, the design of public policies should not rely on single, occasional and unarticulated policies. There are countries where the cultural context only promotes EA for males or females. In those cases, the public policies should differentiate between men and women, to be equally effective.Originality/valueBy using a configurational approach, this study identifies several configurations of national culture dimensions and the level of economic development that lead to the same outcomes: high (or low) EA. Some of the configurations are specific to achieving only male or female EA (high or low).

Factors Affecting Gender Discrepancy in Entrepreneurial Activity

In spite of rising market opportunities in new, knowledge-based economies, women’s representation in business start-ups and ownership remains remarkably low across industrialized nations (Allen et al., 2008; Kelley, et al., 2010; The´baud, 2015). This low entrepreneurial activity rate could be explained by the lack of possession of different resources that facilitate entrepreneurial activities. The existing literature on women’s entrepreneurship has often explained women’s status by examining patterns of gender inequality in the labor market, such as wage and salary differences. For example, women are less likely to have the human, social, and financial capital deemed critical for the recognition and pursuit of market opportunities, such as workplace and managerial experience, heterogeneous social networks, income, and wealth (Kim, Aldrich, and Keister, 2006; The´baud, 2015). Gender-differentiated perceptions about the activity of entrepreneurship can also contribute to gender gaps in the likelihood of being a business owner (Arenius and Minniti, 2005; Minniti and Nardone, 2007). A number of studies have identified performance gaps between men and women entrepreneurs as a global phenomenon (for example, see OECD, 2005 for OECD countries and Sabarwal and Terrell, 2008 for countries in Eastern Europe). However, most support to women entrepreneurship has focused on developing countries.

Country-based comparison analysis using fsQCA investigating entrepreneurial attitudes and activity

This study undertakes a cross-country comparison of the relationship between entrepreneurship attitudes and high and low entrepreneurial activity. The analysis employs fuzzy-set Qualitative Comparative Analysis. The data set comes from the Global Entrepreneurship Monitor 2011 survey, four country-level entrepreneurial attitudes and perceptions variables considered against Total Early-Stage Entrepreneurial Activity from a sample of 54 countries. This study provides comprehensive understanding of variations between individual countries at different levels of economic development and groups of countries in their level of opportunity and necessity-related entrepreneurial activity.

Best practices for developing university bioentrepreneurship education programmes

The objective of this paper is to present a comprehensive overview on the bioentrepreneurship education programme organised within the framework of the project ‘Technological Entrepreneurship at the Free University of Brussels (Vrije Universiteit Brussel, VUB)’. The main motivations for implementing this high-technology entrepreneurship education programme are the threats posed by the low entrepreneurial activity in Belgium and by the European innovation paradox. The biotechnology programme was implemented to stimulate and teach bioentrepreneurship among master students in business and bio-engineering at the university. The theoretical background of the paper focuses on entrepreneurship education in an academic environment and relating success factors to discover possible solutions. Following this, the paper presents a case study on the bioentrepreneurship programme implemented at the VUB. The main objective of the project is to develop and implement a set of integrated, interdisciplinary courses, organised by different faculties and attended by students in business and in bio-engineering. By presenting this solution and showing that it is possible to implement an interdisciplinary educational programme on bioentrepreneurship in a university environment, the authors suggest increasing the number of such programmes across European universities.

DO THEY SEE WHAT WE SEE?: A CRITICAL NORDIC TALE ABOUT PERCEPTIONS OF ENTREPRENEURIAL OPPORTUNITIES, GOALS AND GROWTH

This paper serves as an overview of a decade of the authors' theoretical reviews, participant observations, empirical studies, quasi-experimental research, qualitative interviews, personal consulting, firm incubation, and action research with firms, clusters, and regional groups in both the information technology and biotechnology sectors in Finland. Interpretations of our findings are told using a narrative format, based on Nordic mythology. This story-telling approach is used to express the perceptions of entrepreneurship by various players in society. It discusses what happens when public policies are based on perceptions very different from, and in potential conflict, with those of the would-be entrepreneur. The paper addresses the current and very real problem in many Nordic countries where enormous efforts are invested in pushing technology creation assuming at the simultaneous creation of entrepreneurial high growth firms. Results show extremely low entrepreneurial activity and declining interest towards entrepreneurship as a career alternative. For those firms that do emerge growth does not seem to be the primary goal. The conclusions are discussed in terms of the long term prognosis for developing an entrepreneurial society in economically advanced nations to take advantage of the technological developments supported by governmental research funding.

A framework for understanding the role of culture in entrepreneurship

Purpose: Synthesising research findings on business regulations, culture, self, and entrepreneurship, this article provides a broad overview of the potential patterns of relationships between cultural values, personal and contextual factors, and entrepreneurial outcomes. Theories of entrepreneurship where either environmental or personality variables have been specified as unique predictors of entrepreneurship are investigated to determine whether they capture the complexity of entrepreneurial action that encompasses the interaction of environmental, cognitive, and behavioural variables. Emphasis is also placed on the South African business environment, where business regulations that may enhance or constrain new business activity are analysed. Design/Methodology/Approach: Building on previous conceptualisations and empirical findings, the article identifies salient antecedents and consequences of venture creation from established literature. A framework is then proposed, building on previous findings to approach the interaction between the multiple interacting influences on entrepreneurship more systematically.Findings: Principal literature reviews indicate that, despite SA's apparent favourable regulatory environment, low entrepreneurial activity persists, and understanding the interplay between culture, self, context and entrepreneurship remains imperative for policymakers and practitioners. In the proposed model, cultural values affect the perception of an individual resulting in key entrepreneurial outcomes; culture is depicted as a moderator in the relationship between contextual factors (business regulations) and entrepreneurial outcomes, and acts as a catalyst rather than a causal agent of entrepreneurial outcomes. Limitations include lack of any causal inferences, and thus directionality between the variables which are not fully explored or empirical tested.Implications: Implications for policymakers encouraging entrepreneurship in SA, are that the complexity of factors involved in enhancing or constraining entrepreneurship should be given due consideration, without any one set of variables overshadowing the other factors. Entrepreneurs, educators, and consultants all benefit from a better understanding of how various factors merge into the intent to start a business. Training entrepreneurs to be aware of the multiple influencing factors will raise their level of sophistication and ability to correctly gauge opportunities. Originality/Value: Since no unified theme exists regarding the relationship between culture / self / context and entrepreneurship, the synthesis of the variables proposed in this framework offers an introductory roadmap to guide future research. Taking the multiplicity of variables and dimensions influencing entrepreneurial activity even further, the article provides crucial insights of how entrepreneurial outcomes are determined in a SA context; such models are essential for real advances in the emerging field of entrepreneurship.

Creativity, innovation and implementation: Management experience, venture size, life cycle stage, race and gender as moderators

SMME (small, medium and micro-enterprise) development has been identified by the South African government as a priority in creating jobs. The Global Entrepreneurship Monitor reports low entrepreneurial activity and suggests entrepreneurial education as paramount for improvement. Entrepreneurial skills depend on creativity and innovation as it distinguishes the entrepreneur from the small venture owner. This study empirically investigated the perceptions of small venture owners about their own creativity, their ventures’ innovativeness as well as their implementation orientation. While levels of self-evaluation for own creativity and venture innovativeness were high, implementation orientation was low and correlations between them were weak and not significant. Notwithstanding the expectation that high creativity will lead to high innovation and implementation, this article reports otherwise.It was found that number of years management experience, life cycle phase of the venture and race (cultural heritage) but not venture size and gender moderate perception of own creativity. Perception of venture innovativeness was significantly influenced by the life cycle phase of the venture only. Implementation orientation was significantly influenced by the number of years management experience, life cycle phase of the venture, venture size and race but not by gender.

Best practices for developing university bioentrepreneurship education programmes

The objective of this paper is to present a comprehensive overview on the bioentrepreneurship education programme organised within the framework of the project ‘Technological Entrepreneurship at the Free University of Brussels (Vrije Universiteit Brussel, VUB)’. The main motivations for implementing this high-technology entrepreneurship education programme are the threats posed by the low entrepreneurial activity in Belgium and by the European innovation paradox. The biotechnology programme was implemented to stimulate and teach bioentrepreneurship among master students in business and bio-engineering at the university. The theoretical background of the paper focuses on entrepreneurship education in an academic environment and relating success factors to discover possible solutions. Following this, the paper presents a case study on the bioentrepreneurship programme implemented at the VUB. The main objective of the project is to develop and implement a set of integrated, interdisciplinary courses, organised by different faculties and attended by students in business and in bio-engineering. By presenting this solution and showing that it is possible to implement an interdisciplinary educational programme on bioentrepreneurship in a university environment, the authors suggest increasing the number of such programmes across European universities.