Access to finance and entrepreneurial intention

Abstract

Purpose Appreciating the need to foster entrepreneurship in Madagascan rural areas and acknowledging that many unanswered questions remain regards testing the theory of planned behaviour (TPB), the study aims to apply and extend the TPB model by investigating the moderating effect of access to finance (A2F) on entrepreneurial intentions (EI). Design Based on survey data (n = 1,456) collected across several regions in Madagascar, hypotheses are statically tested using regression analyses. Findings A significant moderating effect is revealed on the TPB-EI relationship in terms of attitude towards behaviour and perceived behavioural control. Moreover, levels of education and gender differences also influence this relationship. Research limitations/implications Policy directives for the Madagascan Government and other private institutions include fostering support systems for those who intend to enter into entrepreneurship. On a practical level, Malagasy policymakers and decision makers at financial institutions need to pay particular attention to the TPB antecedents. Originality The paper makes a contribution to the literature by providing empirical evidence on the moderating role of A2F on the TPB-EI link, while also explaining how individual-level variables influence this relationship in an under-researched developing country context – Madagascar.

Nexus between entrepreneurship education, motivations, and intention among Indian university students: The role of psychological and contextual factors

“…Access to entrepreneurial finance and entrepreneurial motivations: Access to entrepreneurial finance can be defined as the easy and adequate access to different funding options, which can be in the form of debt, equity or funds from private lenders and friends (Gimmon and Levie, 2010; Kristiansen and Indarti, 2004; Matshekga and Urban, 2013; Urban and Ratsimanetrimanana, 2019). Entrepreneurial finance can have multiple sources—venture capital funding, bank loans, personal resources, and seed funding (Farooq et al, 2018; Kristiansen and Indarti, 2004).…”

“…The two main conceptual frameworks that have been predominantly used to model the precursors and predictors of entrepreneurial intention are the Entrepreneurial Event Model of Shapero and Sokol (1982) and the Theory of Planned Behavior” of Ajzen (1991). However, the results obtained from empirical studies have highlighted a gap between these models and the practicalities of entrepreneurship (Barba-Sánchez and Atienza-Sahuquillo, 2018) as various other psychological and contextual factors—including entrepreneurial motivations, fear of failure, perceived cultural support, perceived government support, access to entrepreneurial finance and entrepreneurship education—also play a key role in determining the entrepreneurial intentions of an individual (Sahoo and Panda, 2019; Shinnar et al, 2012; Tsai et al, 2016; Tung et al, 2020; Urban and Ratsimanetrimanana, 2019). Welter (2011, p. 165) also highlight the importance of context in entrepreneurship: “Context is important for understanding when, how, and why entrepreneurship happens and who becomes involved.” Therefore, we build on these factors as the precursors of entrepreneurial intention using individual-level data collected through questionnaires, and provide a theoretical framework that allows us to examine the strength of psychological and contextual factors in fostering entrepreneurial motivations and developing the intention to undertake an entrepreneurial activity.…”

Entrepreneurial alertness and social entrepreneurial venture creation: the mediating role of personal initiative

“…Roundy et al (2018) define entrepreneurial alertness as the degree to which decision-makers can sense and anticipate entrepreneurial opportunities associated with the current and future states of their business environment. Social entrepreneurs need to be alert (Li, 2013) to any opportunities that may arise and they must have an intention (Urban and Ratsimanetrimanana, 2019) to achieve their desired social objectives. Alert individuals are those that spot social entrepreneurial opportunities that are not obvious to all but are unique (Short et al , 2010).…”

Data retrieval from online social media networks for defining business angels’ profile

“…Particularly, the access to finance has been stated as crucial for the development of SMEs (Urban and Ratsimanetrimanana, 2019), remaining the bridging of the so-called “valley of death” (time frame of a start-up spanning from the conceptualization of the business until breaking even) as one of the most important challenges for new companies. Besides bootstrapping (entrepreneur’s own resources), the financing sources that can allow overcoming this challenge are the ones labelled as “informal,” namely: the triple F (family, friends and fools); business angels; and crowdfunding. …”

“…However, business angels, who are an essential part of an entrepreneurial ecosystem (Walsh and Winsor, 2019), tend to be more abundant around successful economic poles (big cities, technological hubs, etc.). Therefore, entrepreneurs from rural regions or underdeveloped countries are in disadvantage when compared with those located in urban areas or developed regions (Kasseeah and Tandrayen-Ragoobur, 2016; Urban and Ratsimanetrimanana, 2019), as business angels are more prone to invest: in locations they are familiar with (Harrison et al , 2010; Croce et al , 2018); and in companies which are closer un terms of social relationships (Liang and Yuan, 2016). …”