The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By, by Scott A. Shane

Applying Resource Scarcity Theory to Franchising: The Effect of Industry Choice and Age on Franchise Success and Satisfaction

“…According to Knatko et al (2016), most scholarly studies on entrepreneurship infrequently address industry choice as a facet of the entrepreneurial decision-making process. As Shane (2008) suggested, many entrepreneurs mistake selecting industries they are familiar with, and the barriers to entry are low.…”

“…According to Knatko et al (2016), most scholarly studies on entrepreneurship infrequently address industry choice as a facet of the entrepreneurial decision-making process. According to Shane (2008), many entrepreneurs need to make better choices when starting a venture because they open businesses in industries with an elevated level of competition. Moreover, these industries usually mirror competitors, have smaller profit margins, and have lower growth rates.…”

“…Moreover, Minola et al (2016) suggest that macro-changes in the business environment indicate that self-employment as a possible career choice is now available to a broader spectrum of the adult population. Studies suggest age is a factor in industry selection (Bohlmann et al, 2017;Hipple & Hammond, 2016;Knatko et al, 2016;Rogoff, 2007;Shane, 2008). This notion results from access to resources like financial and human capital factors.…”

“…There is a strong correlation between age and entrepreneurship. Previous research has revealed that fewer younger people engage in franchising (Gaille, 2017) and might not perform as well in many instances compared to older entrepreneurs (Shane, 2008). According to the U.S. Census (2020), over half of U.S. business owners were 55 and over.…”

The regulatory environment for migrant and women entrepreneurs

“…This common assumption that entrepreneurship benefits all, and thus should be promoted by policies does not always hold (Ahl & Nelson, 2015; Verduijn & Essers, 2013). Studies have questioned the support on entrepreneurship by pointing out its negative effects on individuals, families and society, such as financial hardship (Shane, 2008), difficulties with work–life balance (Kirkwood & Tootell, 2008), impairment on family well‐being (Jennings et al, 2013) and focus only on economic development to the detriment of social development (Rindova et al, 2009). These findings lead to question whether these policy support benefit or possibly harm migrant and women entrepreneurs.…”