Journal of Developmental Entrepreneurship

This paper uses estimates of total factor productivity of small enterprises to identify the reasons underlying idiosyncratic variation. Empirical analysis is used to segregate internal and external determinants of productivity using a novel dataset. For reliable estimation, the baseline estimates are corrected for simultaneity bias using instrumental variables and selectivity bias through Heckman correction. Results identify significance of factors operating within firms; educational qualification and professional training of entrepreneurs for higher levels of productivity and the external drivers of productivity differences; sources of energy, selective access to credit and agglomeration economies. The research has important implications for entrepreneurs and policy intervention.

In recent years, a new institutionalist theory has emerged to explain the prevalence of informal sector entrepreneurship. This argues that formal institutional failures lead to the emergence of an asymmetry between the formal rules (laws and regulations) and the norms, values and beliefs of entrepreneurs regarding the acceptability of participating in the informal sector, which in turn leads to the prevalence of informal entrepreneurship. The aim of this paper is to evaluate this social actor approach by reporting evidence from 453 face-to-face interviews with a nationally representative sample of entrepreneurs in FYR Macedonia. This reveals not only a significant association between participation in the informal economy and the non-alignment of entrepreneurs’ views with the formal rules, but specific formal institutional failings that are significantly associated with the acceptability of informal entrepreneurship, namely poor quality public services, a lack of tax fairness, corruption and instability in the formal institutions. The theoretical and policy implications are then discussed.

Despite increased attention from scholars and policy makers, the growth of informal entrepreneurship and its challenges have been reported continuously and are growing frequently. However, there is an inadequate study on informal entrepreneurship growth in view of resources and capabilities. Thus, the objective of this paper is to propose a model of informal entrepreneurship in view of resources and capabilities by examining the existing literature and field study data in the context of a developing country. An exploratory field study was undertaken, where fourteen interviews were conducted. A content analysis technique was applied to identify the resources and capabilities factors with their associated variables and a research model was developed. Outcomes from field study recognized the resources and capabilities factors and variables, as well as their relationships. It vibrates well with the existing literature and establishes the proposed model. This study proposes a model for future informal entrepreneurship research and identifies theoretical and policy implications.

This study develops a completely new measure of environmental sustainability orientation (ESO) to examine the impact that gender, organizational identity and organizational tenure have on the sustainability orientation of existing entrepreneurs. Using a sample of 208 existing entrepreneurs, we build upon a recent stream of research in sustainable entrepreneurship that suggests understanding the ESO of individuals can give us insight into what factors may promote environmentally responsible firm foundings. Our findings suggest that no gender differences exist, but that organizational identity and organizational tenure do have a significant impact on the ESO of existing entrepreneurs.

This study explores the role of cultural practices on female entrepreneurship with some insights from the Nabdam district of Ghana. The views of twenty (20) female entrepreneurs were gathered through face-to-face in-depth interviews, which were analyzed according to identified themes. The key finding of the study is that, because of cultural influences and norms, entrepreneurship is perceived to be a field for uneducated women as highly educated women seek formal employment than self-employment. Also, the value and respect for traditions was found to be a limiting factor to the growth and expansion of female-owned enterprises. Therefore, this study concludes that the general poor performance of female entrepreneurs in the study area can be attributed to long-held traditional beliefs and practices rather than managerial inability on the part of women. The stereotype threat theory is used to explain the state of female entrepreneurship in the study area. Therefore, there is a call on policy makers to formulate policies that could eliminate the negative impact of culture on female-owned businesses.

Using cross-sectional data from 1148 structured questionnaires, administered in two key commercial hubs of Africa’s largest economies (609 from Lagos in Nigeria and 539 from Johannesburg in South Africa), we examine the volatility of venture firms, and particularly ascertain what life-cycle phases they are likely to transition out of quickly or sluggishly in the entrepreneurship process. Adopting GEM’s concept of entrepreneurship phases — conception, firm’s-birth, persistence, established and renowned phases — we find that the most volatile entrepreneurship phase in Nigeria is the conception phase while the conception and firm’s-birth phases are the most volatile in South Africa. The highest transition rate for start-ups in both countries occurs between the persistent and established phases. Overall, Nigeria’s start-ups have better prospects for progression than South Africa’s, and the transitioning differences between the two countries are attributable to differences in personality traits of the entrepreneurs. Therefore, governments seeking to influence likelihood of success at the more strategic phases of the entrepreneurship process should prioritize early phases while only channeling little of the scarce support funds to later-phases, especially when seeking to scale-up productive capabilities of emerging enterprises, in addition to encouraging personality traits that can compensate for inadequate environmental support for entrepreneurship.