Resource endowment and opportunity cost effects along the stages of entrepreneurship

Abstract

In this paper, the start-up process is split conceptually into four stages: considering entrepreneurship, intending to start a new business in the next three years, nascent entrepreneurship, and owning-managing a newly established business. We investigate the determinants of all of these jointly, using a multinomial logit model; it allows for the effects of resources and capabilities to vary across these stages. We employ the Global

Individual capital and social entrepreneurship: Role of formal institutions

“…General human capital refers to educational qualifications, while entrepreneur specific human capital refers to having the knowledge, skills and experience to run a business (Marvel et al, 2016;Unger, Rauch, Frese, & Rosenbusch, 2011). An individual who has higher human capital is in a better position to identify and exploit new business opportunities (Autio & Acs, 2010;Mickiewicz et al, 2017;Rauch & Rijsdijk, 2013). Literature also suggests that entrepreneurs can create successful new ventures even without substantial financial capital provided they have high levels of human capital (Kim et al, 2006).…”

“…Based on capital theories (Becker, 1994;Bourdieu, 1986;Dollinger, 1995), we know that new business creation requires substantial levels of individual capital (De Clercq et al, 2013;Mickiewicz, Nyakudya, Theodorakopoulos, & Hart, 2017). According to capital theory (Bourdieu, 1986;Dollinger, 1995), financial, human and social capital are the key forms of individual capital.…”

Knowledge management and entrepreneurship

“…Second, this distribution of payoffs from investment in internal knowledge (R&D, ICT) and knowledge transfer via spillovers will be unequal. Third, the ability to substitute internal and external knowledge while innovating depends on the firm's absorptive capacity (Cohen and Levinthal 1989) as well as the firm's location relative to the production possibility frontier (Mickiewicz et al 2017).…”

“…The paper's results suggest that knowledge management in SMEs within developing and transitioning economies could be described via a second-order hierarchical model composed of strategy, marketing and human resource management pillars. The organizational pillars of strategy, marketing and human resource management mutually reinforce the combination of resources available in firms (Mickiewicz et al 2017). As the development of each pillar is costly, complementarities between strategy, marketing and human resources need to be better matched to maximise the return to investment in knowledge.…”

Entrepreneurship, gender gap and developing economies: the case of post-apartheid South Africa

“…Finally, in the entrepreneurship literature, age, knowing other entrepreneurs, race and business angles have all been are recognised as having an effect on an individual's propensity to engage in entrepreneurial activity Mickiewicz et al, 2017;Reynolds, 2011). Hence, we use them as control variables in order to isolate the independent effect of risk aversion and entrepreneurial ability on the probability to engage in self-employment nascent and high growth entrepreneurship.…”