Nascent Entrepreneurs Research Articles

Nascent Entrepreneurs and the Moderators of Race, Gender, and Government Support

Purpose: In a better attempt to understand nascent entrepreneurship, this paper explores the relationship between opportunity recognition and entrepreneurial intent of nascent entrepreneurs. Contrary to conventional wisdom, research on this relationship is fragmented and empirically underdeveloped. In addition, the contextual and perceptual boundary conditions of government support, gender, and minorities are explored. Design: We surveyed 1246 nascent entrepreneurs in the state of Florida, which is the largest data set on this topic. Respondents answered 55 survey questions on potential barriers to entrepreneurship to help understand how their context impacts their intent. Findings: Our empirical results indicate that opportunity recognition by nascent entrepreneurs significantly affects entrepreneurial intent, the strength of which is moderated by government support and gender, but not by minorities. Originality: The nascent entrepreneur is viewed through the lens of entrepreneurial self-efficacy (ESE) which refers to an individual’s belief in one’s capability to produce entrepreneurial outcomes and engage in entrepreneurial behavior. This study provides a more nuanced understanding of contextual factors that influence nascent entrepreneurs within the state of Florida.

Unpacking the Negative Impact of Initial Informality on Innovation: The Roles of R&D and Training

This article identifies the underlying mechanism explaining why firms starting unregistered (initial informality) are less innovative. We argue that resource allocation patterns developed during a firm’s early stage are likely to persist. Firms with initial informality are less likely to invest in R&D and employee training compared to firms starting registered. This explains their low innovativeness. Using data from the World Bank Enterprise Survey, we analyze firms from 30 countries in Sub-Saharan Africa. Our empirical evidence shows that R&D investment and employee training mediate the negative relationship between initial informality and innovation. This finding has significant policy and managerial implications. While transitioning from informal to formal firm status, it is essential to put in place policy instruments encouraging investment in R&D and employee training. Nascent entrepreneurs should take into consideration the lasting impacts of initial informality on firm development when making decisions.

Mapping Women’s Geography of Fear onto the Entrepreneurial Landscape

In studies of emotion in entrepreneurship, the link between gender and geography and the effects of both on women's decisions about whether or not to engage in business-related activities, are areas relatively unexplored. In response to this identified research gap, we have conducted a study that proposes the concept of the 'geography of fear’ and examines female entrepreneurs’ relationships with, and use of, physical places and spaces needed for business social activities. Previous studies that address the fear of harm in entrepreneurship and the associated gendered norms regarding women’s use of space, are rare. Semi-structured interviews were conducted with 23 female nascent entrepreneurs. Based on participants’ narratives, it is the perception of others tied with gender norms, proneness to vulnerability and coping mechanisms, which in the context of women entrepreneurship contribute to the development of the geography of women entrepreneurs’ fear and to understanding the intersection between emotions, gender and geography in influencing women’s entrepreneurial decisions in their use of space.

A Timely Take-off. Human Capital, Age, and Entrepreneurial Process Duration

We examine the impact of nascent entrepreneurs’ human capital, both general and specific, and of their age, on the duration of the business start-up process until a positive (profitable) outcome. We argue why higher knowledge and older age of entrepreneurs may be associated either with shorter or with longer duration of the entrepreneurial process to a profitable outcome. Using the harmonised PSED dataset, and applying competing risks Cox models, we find that higher educational attainment trumps other forms of human capital being associated with the fastest venture creation process towards a profitable outcome, especially for hi-tech start up projects. Age has a sinusoidal relationship with the speed of the start-up process.

Exploring the Entrepreneurial Intention-Competency Model for Nascent Entrepreneurs: Insights From a Developing Country Context.

Several previous scholars have investigated the relationship between entrepreneurial intention (EI) and entrepreneurial competencies (ECs), yet categorising individual ECs in relation to higher-order competence constructs has not been explored. Based on the previous literature studies, four higher-order constructs are identified, namely cognitive, functional, social/personal and meta-competence. Investigating which ECs are categorised according to the four higher-order constructs in this relationship with EI is important as it contributes to the development and training of these antecedents of entrepreneurial behaviour. Data are collected from 203 nascent entrepreneurs in South Africa and analysed by using structural equation modelling. In this developing country context, only two higher-order constructs, cognitive/functional competence and social/personal competence, fit the data in relationship with EI. The strongest positive relationships were found between the cognitive and functional higher-order construct, opportunity recognition and opportunity assessment, conveying a compelling vision and creative problem-solving. The cognitive and functional higher-order competence construct also showed a strong positive relationship with EI. To improve pedagogical interventions and enhance EI, educators and policymakers can use these findings in entrepreneurship programmes to ensure that this higher-order competence construct with the individual ECs in this category are developed simultaneously rather than individually. Research efforts and support programmes that include cognitive and functional higher-order competence constructs for nascent entrepreneurs should therefore not be neglected. Such efforts and programmes can encourage EI, which in turn can enhance entrepreneurial behaviour, thereby potentially contributes to economic growth and employment creation.

PERCEPTUAL ENABLERS OF GLOBAL NASCENT ENTREPRENEURS: A QUANTITATIVE INVESTIGATION BASED ON GLOBAL ENTREPRENEURSHIP MONITOR DATA

With the deepening of research on entrepreneurial activity motivation, academic discourse has been cognizant of the incompleteness of macro-contextual factors and micro-personality in explaining entrepreneurship momentum. The interaction mechanism between context and potential nascent entrepreneurs has gradually become a theoretical hot spot in the 21st century. This article aims to elaborate on the emerging debate about perceptual factors of entrepreneurship and identify salient perceptual enablers of entrepreneurial activities for global nascent entrepreneurs. In order to bring empirical breakthroughs to the table, this article employs nascent entrepreneurial activity data of more than 50 countries from 2011 to 2019 gathered by Global Entrepreneurship Monitor (GEM). The author built a pooled cross-sectional dataset to unveil the perceptual determinants shared by new entrepreneurs worldwide and employed pooled OLS regression. The study confirms the significant positive influence of the 'perceived opportunity' (PO), 'perceived capability' (PC), and 'immersion in entrepreneurial culture/social norm' (CSN) and negative influence of 'fear of failure' (FF) on national entrepreneurial activity. This empirical article is a prompt exploration of entrepreneurial enablers. Among the existing empirical milestones, few attempts mentioned shared perceptual needs among entrepreneurs on various continents. This paper introduces an emerging cross-national variable structure grounded on existing conceptual elements. It contributes to corresponding knowledge by updating the time span/contextual background, expands the scope of theory applicability, and recommends an inclusive environment practically. When reflecting on the entrepreneurship context and policies, this research can serve as a priori insights for evaluating entrepreneurial support and proffer 'perceptual criteria' for comparison between cross-national policies.

Nascent Entrepreneurs, Entrepreneurial Self-Efficacy, and the Moderators of Race, Gender, and Government Support

Abstract In a better attempt to understand nascent entrepreneurship, this paper explores the relationship between opportunity recognition and the entrepreneurial intent of nascent entrepreneurs. Contrary to conventional wisdom, research on this relationship is fragmented and empirically underdeveloped. In addition, the contextual and perceptual boundary conditions of government support, gender, and minorities are explored. We surveyed 1246 nascent entrepreneurs in the state of Florida, which is the largest data set on this topic in Florida. Respondents answered 55 survey questions on potential barriers to entrepreneurship to help understand how their context impacts their intent to start a new business. Our empirical results indicate that opportunity recognition by nascent entrepreneurs significantly affects entrepreneurial intent, the strength of which is moderated by government support and gender, but not by minorities. Our study is a direct response to the call-in existing entrepreneurship literature for new research in geographically narrower contexts as the largest survey-based study at the state level in the US that we know of. We extend and demarcate entrepreneurial self-efficacy into a new context while clarifying boundary conditions. Lastly, our dependent variable measures intensity of intention to start a business along a time dimension which empirically narrows the gap between studies on entrepreneurial intention and studies on entrepreneurial action.

How formal institutional antecedents affect Tunisian venture creation decision scripts

The aim of this paper is to reveal the impact of three Tunisian formal institutional systems on their venture creation decision through the study of entrepreneurial scripts of Tunisians nascent entrepreneur post-revolution phase. The method adopted in this study is the cognitive map. This research enriches entrepreneurial process literature by examining a finer-grained linkage between the degree of the development of Tunisian formal institutional systems and the level of expertise in the decision stage as an early process of venture creation. To do this, the cognitive approach is adopted by using the structural analysis method as a tool for structuring ideas and collective reflections. In the field of entrepreneurship, the mentioned approach has been the subject of few empirical studies. This leads to a better understanding of individual’s cognitive universe (actors, coaches, managers, entrepreneurs, etc.). It is important in the context of this study to identify and analyze the influence of formal institutional antecedents on the cognition of Tunisian nascent entrepreneurs and consequently on their decision. Experiments done on 120 born entrepreneurs incubating in the nurseries allowed to present, in the form of a collective map, the formal institutional antecedents that seem to affect their decisions to become entrepreneurs through their NVCD scripts.

From Dream to Reality: The Ambivalent Role of Nascent Entrepreneurs’ Motivation in the Intention-Action Gap

Abstract This paper addresses nascent entrepreneurs’ intention-action gap by examining the predictive and the moderating role of different types of motivations. We draw on the theory of planned behavior and on action theory to explain the entrepreneurial action of 205 student nascent entrepreneurs operating in academic incubators within the French higher education system. Our results demonstrate an indirect influence of extrinsic and intrinsic motivation on entrepreneurial action. When referring to motivation as moderating the relationship between intention and action, we show that mid-levels of extrinsic and intrinsic motivation reinforce the positive association between nascent entrepreneurs’ intentions and actions. Our study demonstrates the importance of distinguishing between motivational and volitional phases of the entrepreneurial process, and provides new insights for academic institutions seeking to incubate businesses created by student nascent entrepreneurs.

Specialization of entrepreneurs in the production of goods and the provision of services in modern economies

The study of the sectoral characteristics of early-stage entrepreneurial activity is one of the topical issues in modern research. The aim of the study is to assess the existing level of specialization of nascent entrepreneurs in modern national economies. The source of information for the analysis of the industry specialization of nascent entrepreneurs was the data provided in the Global Entrepreneurship Monitor project. The research methodology involved economics modeling with normal density function. The result of the computational experiment is the assessment of the indicator values characterizing the involvement of nascent entrepreneurs in the production and service sectors of national economies. A comparative analysis of the values of indicators for Russia and the foreign countries was carried out. It has been proved that nascent entrepreneurs in the countries under consideration are on average 4 times more likely to start activities in the service sector than in the commodity producing sector.

Ready or not? Nascent entrepreneurs’ actions and the acquisition of external financing

PurposeThis study offers empirical evidence from a nationally representative panel dataset of nascent entrepreneurs (PSED-II) regarding when external financing is acquired and how certain factors affect this timing during the cumulative process of nascent entrepreneurs taking actions toward establishing an operational entity. By assessing the relationship between the external financing event and the cumulative set of actions that nascent entrepreneurs undertake to create new businesses, we improve our understanding of how the timing of acquiring external financing affects organizational survival and growth.Design/methodology/approachWe apply nonparametric and semiparametric survival analysis techniques to a nationally representative panel dataset of nascent entrepreneurs. This ascertains the probability of an external financing event at any given moment in time and a set of startup conditions that we hypothesize will affect this timing. First, we use Kaplan–Meier analysis to explore when external financing occurs during new business creation. We then use discrete-time survival analysis to investigate whether certain startup conditions affect when external financing occurs. Finally, we conduct a test of independence to examine the external financing event relative to other startup activities completed during new business creation.FindingsNascent entrepreneurs tend to acquire external funding relatively late in the new venture startup process – on average, about two-thirds of the way from conceiving of the idea and becoming operational. They tend to take actions that are less resource-demanding early in the startup process to build their organizations to a fundable stage. Net worth tends to speed up the acquisition of external funding as wealthy entrepreneurs tend to ask for funding earlier in the process. Finally, entrepreneurs in capital-intensive industries do not seem to get outside funding before entrepreneurs in other industries.Originality/valueThis study is unique in three ways. First, we investigate the timing of the highly important external financing event. Timing is critical in unpacking and making sense of the very early stages of a new business and in guiding entrepreneurs and students about when to do what. Second, we do so in a subsample of preoperational, nascent, funded entrepreneurs derived from a nationally representative panel dataset of startup attempts. Third, our findings provide a counter-intuitive yet systematic understanding of organizational emergence and very early-stage financing.

Commitment profiles of nascent entrepreneurs: insights from an empirical taxonomy among French student entrepreneurs

PurposeIn line with an emerging body of literature questioning student entrepreneurs’ practices, and recent calls to bridge the intention-action gap, this contribution aims to identify profiles of commitment among nascent entrepreneurs, and their relationship with the performance of entrepreneurial behaviors.Design/methodology/approachRelying on Meyer and Allen's multidimensional model, the authors build an empirical taxonomy regarding affective and instrumental forms of commitment experienced by nascent entrepreneurs (n = 328) operating within French higher education.FindingsThe authors identify three commitment profiles – weak, affective and total – associated with distinct levels of advancement and investment in the entrepreneurial process. This analysis leads them to map out the entrepreneurial process followed by nascent entrepreneurs with three main thresholds: the initial threshold, the resonance threshold and the irreversibility threshold.Research limitations/implicationsThe work contributes to an emerging field of research dedicated to student entrepreneurship. It highlights the existence of different trajectories among nascent entrepreneurs, but also to different ways of being tied to them. It also enriches more broadly the understanding of the entrepreneurial process, especially its volitional phase.Practical implicationsThe results are also important to guide public action, especially to design relevant support programs accounting for nascent entrepreneurs' diversity.Originality/valueThis is the first research to identify profiles of nascent student entrepreneurs based on the way they feel tied to their project, but also to the broader project of becoming entrepreneurs.

Logistic Regression Model for Entrepreneurial Capability Factors in Tourism Development of the Rural Areas with Bayesian Inference Approach

The logistic regression model is used to analyze the entrepreneurial capability factors in the rural area’s tourism development with the Bayesian inference approach due to a small number of sample sizes. This study is conducted with sixty nascent entrepreneurs from the rural areas at Nagari Batang Barus of Solok regency in West Sumatra, Indonesia. Scaled categorical response variable indicated by insufficient, sufficient, average and excellence as the response category are used to measure the entrepreneurial capability of the respondents. The predictor variables are demographic dimensions, namely gender, education level, and occupation. At the same time, the variables of the entrepreneurial dimension are indicated by entrepreneurial motive, working motive, social motive, individual motive, and economic motive. The result shows that only the predictor variables of social motive and entrepreneurial motive affect significantly with a hit ratio of 76.67%. This model has a better fit by using Bayesian logistic regression with a small sample size. Social motive and entrepreneurial motive have the main rule in developing tourism business in the rural area based on the character of the local inhabitant and creative economy.

A MULTILEVEL PERSPECTIVE OF NASCENT SOCIAL ENTREPRENEUR DISENGAGEMENT

Each year, a significant number of grant programs select, award, and support young social entrepreneurs. However, not all can bring their ideas to fruition; many nascent entrepreneurs terminate their efforts before launching the business. Determining why some individuals continue while others disengage is critical to understanding the entrepreneurial process. This study explores factors affecting nascent social entrepreneurs' decisions to disengage. We interviewed 18 social entrepreneurs who intended to start a social venture but decided to terminate the process. The findings suggest that macro-, meso-, and micro-level factors influence nascent social entrepreneurs’ decisions to disengage.

Inexperienced decision-makers' use of positive heuristics for marketing decisions

PurposeResearch has reliably demonstrated that decision-makers, especially expert ones, use heuristics to make decisions under uncertainty. However, whether decision-makers with little or no experience also do, and if so, how? is unknown. This research addresses this issue in the marketing context by studying how a group of young and generally inexperienced entrepreneurs decide when asked to set a price and choose a distribution channel in a scenario involving a hypothetical firm.Design/methodology/approachThe authors used think-aloud protocols to elicit data and then used inductive procedures to code the data for analysis.FindingsThe inexperienced entrepreneurs in the sample used three types of heuristics in their decision-making, forming a structured process that narrows in scope. First, metacognitive heuristics, which specify a decision-making approach, were used, followed by heuristics representing the criteria they considered, and finally, heuristics detailing the execution of a selected option. The authors also found that heuristics relating to a market orientation, especially customer-centric criteria, were the most common, but these were balanced with ones representing an internal orientation or growth.Research limitations/implicationsThe generally inexperienced decision-makers the authors’ studied used heuristics in a structured way that helped them to select and balance several potentially conflicting decision-making criteria. As with most research using qualitative research designs, the generalizability of these findings is unclear. Further research on the mechanisms by which relatively inexperienced decision-makers learn the heuristics they use is recommended.Originality/valueThis research's novelty lies in its focus on heuristic use by nonexpert decision-makers under conditions of uncertainty and the findings about their scope and the order they are used. As the authors collected data from think-aloud protocols with relatively young entrepreneurs with limited experience, they also offer a description of the heuristics used by nascent entrepreneurs when making marketing decisions about pricing and channels. The most surprising conclusion is that even without relevant domain-specific knowledge, decision-makers can use heuristics in an ecologically rational way (i.e. structured to match the environment).

Curvilinear relationship of entrepreneurial experience and entrepreneurial self-efficacy: Entrepreneurial passion as a moderator

We combined experience curve theory and social learning theory and proposed that the relationship between entrepreneurs' prior experience and their entrepreneurial self-efficacy would be curvilinear, with the upward slope of the curve gradually decreasing. Participants were 266 entrepreneurs in Southeast China who completed a survey. Our results show there was a nonlinear relationship between entrepreneurial experience and entrepreneurial self-efficacy, suggesting that as entrepreneurs gained more experience, the rate of entrepreneurial self-efficacy slowed down. Furthermore, we found that entrepreneurial passion moderated this curvilinear relationship, such that when entrepreneurial passion was strong, nascent entrepreneurs with less experience exhibited greater entrepreneurial self-efficacy than did entrepreneurs with more experience. Theoretical contributions and future research directions are discussed.

Entrepreneurial learning behaviour of community insiders

PurposeThe purpose of the present paper is to explore entrepreneurial learning at the centre of communities of practice.Design/methodology/approachLearning perspectives from the community of practice concept are applied to interpret and discuss results from an in-depth empirical investigation using a novel qualitative method, the Zaltman metaphor elicitation technique (ZMET), to study the entrepreneurial learning behaviour of ten coaches in a student venture incubator. The coaches are students with a certain level of entrepreneurial experience. Given their coaching roles and practices, the coaches are considered “community insiders”.FindingsThe findings show how the socially situated entrepreneurial learning of community insiders could be considered an adaptive process following multiple learning trajectories depending on with whom and about what the entrepreneur involves in social relationships.Practical implicationsPolicy makers seeking to facilitate communities of practice should enable learning activities for community insiders and organic development in addition to networking events and support for the entire ecosystem in order to enable bridging of communities of practice.Originality/valueThe present paper focuses on the entrepreneurial learning of community insiders using a novel qualitative method, ZMET. The paper empirically demonstrates that community insiders learn through an adaptive process and participation in multiple communities of practice. This is both in interaction with the nascent entrepreneurs whom they coach as well as when interacting with other community insiders.

The effect of entrepreneurship education on nascent entrepreneurship

The literature has been enriched by studies examining the effect of entrepreneurship education on entrepreneurial or goal intention. Yet, few articles have considered how entrepreneurship education affects nascent entrepreneurship as a more sought-after outcome. Similarly, some scholars assess entrepreneurship education as an aggregate rather than a multidimensional construct comprised of alternative methods with peculiar characteristics yielding distinct student outcomes. Possibly, the present shortage of specificity in the investigation of methods in entrepreneurship education reduces empirical understanding of efficacious teaching and learning modes for optimising entrepreneurial behaviour. Hence, by way of contribution, this inquiry isolates and measures the direct effect of courses, workshops, guest speakers and simulations on new venture creation among UK students. It also measures indirect influence in the same relationships, with self-efficacy as a mediator. A structural equation analysis is performed and the findings show that discretely, in this order, simulations, workshops and courses stimulate nascent entrepreneurship. However, there is particular insignificance in the direct link between guest speakers and nascent entrepreneurship, and further dissociation in the indirect link between workshops and simulations leading to self-efficacy. Theoretical implications arise for future correlation and configurational studies, as well as practical ramifications for entrepreneurship education practitioners, simulation developers and public institutions.

Gender Differences in Entrepreneur Values and Venture Mission

The current research examined gender differences in nascent entrepreneurs’ value priorities and preferences for social or commercial entrepreneurship. An initial analysis revealed that male value priorities differ from both female and pan-cultural, non-entrepreneur value priority norms. In addition, based on Role Congruity Theory it was proposed that gender would predict diverging preferences for commercial and social entrepreneurship. Females were hypothesized to evidence greater preferences for social entrepreneurship relative to males. Males were expected to indicate elevated preferences for commercial entrepreneurship relative to females. These hypotheses were supported using data gathered from U.S. Midwestern nascent entrepreneurs recruited via Amazon Mechanical Turk to take two self-report surveys.

Paths academic scientists take to entrepreneurship: Disaggregating direct and indirect influences

Based on information from a large sample of German researchers and using business ownership and nascent entrepreneurship as alternative indicators of academic entrepreneurship, we use mediation analysis to analyze the direct effects of researchers' entrepreneurship attitudes, age, gender, and citizenship as well as the related indirect influences. Industrial cooperation, industry consulting, and patenting are used as alternative mediator variables. Focusing first on the overall drivers of academic entrepreneurship, the results show differences in the drivers of business ownership and nascent entrepreneurship. With regard to age, we find positive and significant indirect effects; they are negative for females; and positive for German citizens. The identification of direct and indirect channels of influence on academic entrepreneurship is the main contribution of this work.