Individual Determinants of Self‐employment Entry: What Do We Really Know?

Simões, Nádia; Crespo, Nuno; Moreira, Sandrina Berthault

doi:10.1111/joes.12111

Cited by 225 publications

(206 citation statements)

References 177 publications

(295 reference statements)

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“…Future research should also combine aspects of diversity in human and social capital with personality characteristics that are widely researched as factors related to self-employment (Caliendo et al 2014;Simoes et al 2015;Zhao and Seibert 2006). Moreover, Lazear's theory should be linked with persistence in self-employment and entrepreneurial success.…”

Section: Discussionmentioning

confidence: 99%

“…Knowledge and skills can translate into entrepreneurial ideas, innovations, improvements, new practices, or applications, leading to new business ventures. However, entrepreneurship research has thus far produced insufficient evidence as to whether a particular set of knowledge and skills is needed to successfully exploit business opportunities (Galunic and Rodan 1998;Simoes et al 2015). One important focus concerns the need for expert knowledge versus the need for general and balanced knowledge.…”

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confidence: 99%

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Are women graduates jacquelines-of-all-trades? Challenging Lazear’s view on entrepreneurship

2016

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This study challenges the basic reasoning behind Lazear's theory on entrepreneurship (2005). Based on the key motive of maximizing one's lifetime income, Lazear posits that individuals with a balanced set of skills should have a higher probability of being self-employed. His ''Jack-of-all-trades'' hypothesis presumes that entrepreneurs need sufficient knowledge in a variety of areas to succeed, while paid employees benefit from being specialists in a certain area demanded by the labor market. Because most women-led businesses are neither based on the motive of making money nor are they growth oriented, we argue that maximizing their lifetime income is not the main motivation of many women to start a business. However, we argue that Lazear's theory can be extended to motivations that are mostly stated for women entrepreneurs as well. We apply it to a specific representative sample of 1384 women graduates in Germany and test our hypothesis with logit regression. A dichotomized measure indicating whether a women graduate was self-employed (n = 706) or not (n = 678) served as the dependent variable. Our results widely confirm Lazear's assumption for women graduates who run relatively small businesses in terms of sales and employment: professional training, balanced industry experience, and balanced entrepreneurship-based self-efficacy increase the probability of being self-employed. Solo self-employed tend to have balanced industry experience more often than those being in a team or having employees. Lazear's theory has male as the norm, and as such, does not readily apply to the case of women-but could and should be extended to women's specifics.

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Section: Discussionmentioning

confidence: 99%

mentioning

confidence: 99%

Are women graduates jacquelines-of-all-trades? Challenging Lazear’s view on entrepreneurship

2016

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“…Though many scholars' conceptualizations on RNFM development are in similar directions, their findings show different directions of influences and conclusions of a few determinants with regard to their relative importance (Linan et al 2011;Simoes et al 2013;Thai and Turkina 2013). Considerable efforts have been put on explaining the existing gender gap in the entrepreneurial participation as well as on performance, yet potential role of female micro-entrepreneurship remains under researched.…”

Section: Introductionmentioning

confidence: 99%

Rural Non-Farm Micro-Entrepreneurship or Not: Gender Issue in Decision Making

Hazarika

2014

SSRN Journal

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The expansion of female intensive sectors due to globalization and trade liberalization engenders ample employment and income opportunities for female and thus female entrepreneurship. Despite an increase in the female entrepreneurship in recent decade, females are still outnumbered in entrepreneurial activities by the male. The determinants that influence the decision to become an entrepreneur substantially differ across gender.Present study provides empirical evidences towards individuals' entry into rural non-farm microentrepreneurship focusing on gender issue. Based on primary data collected in Assam, the study found that the probability of becoming a micro-entrepreneur is more for being a female in the female intensive industry. The results reveal the existence gender differences with respect to magnitude and direction in the determinants of micro-entrepreneurship development. The influence of educational attainment is not found significant for female's probability to become a handloom micro-entrepreneur. Financial inclusion of rural people coupled with proper utilization of credit accessed is crucial in handloom micro-enterprise development.

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“…From the vast group of studies analyzing the individual characteristics of entrepreneurs, the following findings emerge: women have a lower propensity to enter into self-employment (Bosma & Schutjens, 2011;Simoes et al, 2016) but, when they do, they are more likely to be necessity-driven entrepreneurs (Kelly et al, 2016); young people show higher preferences to become self-employed than older people (there is an inverted U-shape relationship between age and self-employment) (Kelly et al, 2016;Simoes et al, 2016); and individuals with entrepreneurial families or with close friends who own businesses, are more likely to develop entrepreneurial intention and activity (Bosma & Schutjens, 2011).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Overall, the entrepreneurial research is based on three main theoretical strands: the first one focuses on psychological and individual characteristics to identify the stereotypical entrepreneur (Simoes, Crespo, & Moreira, 2016); the second one emphasizes the influence of exogenous factors like social, economic and political systems to analyze favorable and unfavorable conditions for the development of entrepreneurial intentions (Bosma & Schutjens, 2011;Khuong & An, 2016); and the third one draws on behavioral approaches in order to better understand why individuals decide to start their own business (Krueger & Brazeal, 1994).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Does Unemployment and Precarious Employment Lead to Increasing Entrepreneurial Intentions among Young People? Results from a Survey-Based Study in Spain

Vancea¹,

Utzet²

2017

CEBR

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1Vancea, M., Utzet, M.The article explores the relationship between unemployment and precarious employment, and young people's entrepreneurial intentions in Spain. We focus on the effects of employment conditions and experience on young people's intentions to start their own business or become selfemployed. The role of socio-demographic characteristics and behavioral factors such as perceived self-efficacy and desirability as well as risk taking were also analyzed. The analyses were based on a cross-sectional representative sample, corresponding to the year 2016, of Spanish working young individuals aged 18 to 35 years (n=1.678). All analyses were stratified by gender. The results show that besides behavioral attitudinal factors that seem to particularly influence the entrepreneurial intentions of Spanish young people, having a precarious contract or being unemployed for more than six months cannot be regarded as necessity-driven factors for increasing intentions toward entrepreneurship. Instead, well educated, experienced and economically stable women are more likely to engage in entrepreneurial activity than men.

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Individual Determinants of Self‐employment Entry: What Do We Really Know?

Abstract: Abstract:The analysis of the decision to enter into self-employment is a hot topic in economic

Cited by 225 publications

References 177 publications

Are women graduates jacquelines-of-all-trades? Challenging Lazear’s view on entrepreneurship

Are women graduates jacquelines-of-all-trades? Challenging Lazear’s view on entrepreneurship

Rural Non-Farm Micro-Entrepreneurship or Not: Gender Issue in Decision Making

Does Unemployment and Precarious Employment Lead to Increasing Entrepreneurial Intentions among Young People? Results from a Survey-Based Study in Spain

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