Entrepreneurial Motivation in Developing Countries: What Does 'Necessity' and 'Opportunity' Entrepreneurship Really Mean?

The relationship between motives of entrepreneurial behavior and venture maturity

“…This observation is also confirmed by Rosa et al (2006), who state that entrepreneurial ventures in poor countries are guided by motives of survival while in developed countries they are guided by identified opportunities. This statement share Reynolds (2001) and , noting that the increase of poverty influence an increase in the number of necessity entrepreneurial ventures.…”

Preference for self-employment

“…Even in poor counties were the jobs are scarce and salaries low, most people start businesses because they want to, not because they have to. Rosa et al (2008) investigated the motives for starting a business among entrepreneurs in Uganda and Sri Lanka, and found that other motives for starting a business were clearly more important than 'necessity'. The poorer the people were, the less likely they were to start a better business, and the very poor tended to be 'trapped' in a state of routine in which long hours were needed to earn a subsistence living.…”

Unlacing the entrepreneurial potential : exploring factors influencing entrepreneurial intention and entrepreneurship education in emerging economies

“…For instance, necessity entrepreneurs may become 'trapped' in a state of necessity in which long hours are needed to earn a survivalist living (Rosa et al, 2006). Individuals who have gained such exposure are likely to be aware of these impacts and would make reference to these negative vicarious experiences when evaluating career options.…”

“…Moreover, more often than not, these nascent entrepreneurs will operate in the informal sector, which presents its own unique set of problems, such as low earning and long work hours (Rosa et al, 2006 We use family entrepreneurship and past startup experience as proxies for measuring past exposure.…”