Journal of Developmental Entrepreneurship

The mission and performance of an enterprise is the legal and strategic responsibility of the Board of Directors (BOD). For the BODs of microfinance institutions (MFIs) this task is even more challenging. This study investigates the connection between the composition and roles of BODs and organizational evolution. It builds on the experiences of BancoSol and Los Andes, two MFIs that pioneered microfinance in Bolivia. The findings support the notion that BODs evolve to fit the needs of organizations at different stages of industry and organizational evolution. While these results are not surprising, previous research has not shown the micro-dynamics involved in this co-evolution and thus their impact on board composition and roles.

Entrepreneurship has become a defining business trend in many countries throughout the world. The ranks of entrepreneurs contain a sizable contingent of women. As a result, research into the pathways of entrepreneurship as a general phenomenon as well as a career option for women has flourished in recent years. However, very little of this research has focused on women entrepreneurs in Arab countries, particularly those around the Gulf of Arabia, where private enterprise is viewed as a way for these nations to reduce their reliance on oil and their dependence on expatriate (foreign) workers. This study of the business start-up experiences of ten Arab women from Bahrain and Oman can serve as a starting point for such research. Although based on a non-representative sample, it suggests that the experiences of the Arab women entrepreneurs studied generally parallel those of their counterparts from other parts of the world with a few distinct differences. These differences relate to securing start-up capital and other resources, networking, and work/family balance. Infused with Arab and Islamic values, the unique cultural milieu played a major role in shaping the entrepreneurial experiences of the Bahraini and Omani business owners studied.

Facilitating entrepreneurial networks is a key to promoting entrepreneurial vitality in a region. The focus of this research was to investigate methods to enhance member involvement in entrepreneur network organizations (ENOs), building from concepts in relationship marketing. Six organizations participated in the study, producing 205 usable surveys. The overall concept of organizational marketing strategies being mediated by the attitudinal variables of commitment and trust, which in turn may be related to behavior, was supported. Enhancement of member interdependence and core service performance emerged as important independent latent constructs, or marketing strategies, that might be employed. Service performance was directly related to participation as well as mediated by instrumental commitment and trust. Measures of affective commitment were not important. Normative commitment was positively related to instrumental commitment, retention and participation. A surprising negative relationship is noted between trust and participation. Of particular interest may be the role of normative commitment, which appears to be a powerful driver of participation, particularly notable since economic benefits might logically be expected to be stronger drivers of member involvement in this context.

A strategic network perspective established the theoretical foundation for exploring aspects of business management in 383 small businesses predominantly operating in small communities across the U.S. It was proposed that those owner/managers involved in formal voluntary organizations to promote business effectiveness would differ in their strategic decisions and evaluations of performance from businesses without such formal group affiliations. Business strategies assessed involved the emphasis placed on employees, customers, and community, and the effect of these three variables in explaining four elements of business performance. Networking businesses were found to place more emphasis on strategies dealing with employees, customers, and community than non-networking businesses. Final results suggested that network membership held a direct effect on business strategies, and that these strategies held varying direct effects on perceptions of business performance. Findings offer initial support for strategic network theory as well as practical information for small business owners considering network membership.

This study reviews selected issues related to the role that black-owned banks can play in contributing to the economic development of low-income, minority communities. Given their paucity in numbers, their lack of size, and their financial weaknesses, they have yet to demonstrate that they can serve as an important engine of growth for their communities. Also, for over 150 years, it has been argued that black-owned banks are needed because of discrimination by financial institutions against black customers. Various studies give conflicting results, but so far there is no conclusive evidence that lending discrimination exists. To encourage bank lending to low-income communities, the Community Reinvestment Act was enacted. Some black-owned banks however, have complained that the Act encourages unfair competition from other banks for the same loan customers. Hence, the case for an essential role for black-owned banks has yet to be made decisively. Evidence, however, suggests that their profitability and efficiency improves with time. Hence, in the future, with greater experience, black-owned banks may play a more important role in their communities.