Necessity entrepreneurship: A journey from unemployment to self‐employment

Abstract

This study provides a comprehensive examination of necessity entrepreneurship, a concept distinct from its counterpart, opportunity entrepreneurship. Necessity entrepreneurship emerges from the compelling need to address economic hardship or unemployment, contrasting with opportunity entrepreneurship, which is driven by the pursuit of new market opportunities. The backdrop of this study is anchored in the escalating unemployment crisis and its implications for sustainable economic growth and the attainment of sustainable development goals. Through an integrative review combining bibliometric–content analysis of 96 publications, following the PRISMA protocol, and a detailed case analysis of 10 globally recognized entrepreneurs who embarked on their ventures driven by necessity, this study unravels the critical factors fueling the rise of necessity entrepreneurship. The findings delineate the relationship between necessity and opportunity entrepreneurship, highlighting how an entrepreneurial orientation can serve as a pivotal link. This orientation not only mitigates the adverse effects of unemployment but also propels the economy toward sustainable growth, thereby contributing significantly to the sustainable development goals. The insights derived from this study traverse multiple domains including entrepreneurial orientation, socio‐economic factors, as well as innovation and digitalization, offering a granular perspective on business policy, entrepreneurial ecosystems, the disparate impacts on developed versus developing nations, and the role of innovation in dynamic entrepreneurship. Through a conceptual framework, this study elucidates how entrepreneurial orientation can effectively bridge the gap between the unemployment crisis and sustainable economic growth. Therefore, this study not only enriches the academic discourse on necessity entrepreneurship but also provides pragmatic insights for entrepreneurs, policymakers, and scholars, emphasizing the crucial role of entrepreneurship in navigating economic and social challenges.