Journal of Developmental Entrepreneurship

This study examines CEO succession in small firms and the impact of CEO honing and enterprising competence on firm performance within a contingency framework. In a study of 162 small firms, we hypothesize that a newly appointed CEO will bring entrepreneurship to its small firms, but the results do not support this. Instead, the results indicate that a new CEO tends to introduce honing in the firm. Only CEO market enterprising had a direct relation to better performance. However, we find several instances of moderation effects attributable to strategic competence, environmental uncertainty, and the nature of tasks in the company.

The research explored the antecedents and outcomes of seeking information and advice about the marketplace in which a small firm exists. A survey of 185 small business owners suggested that both operating in a dynamic environment and having complex marketing activities had a direct link to the frequency with which the small business owner sought marketplace information and advice. Marketplace advice seeking, in turn, was positively correlated with owners' perceptions of business performance. The usefulness of the findings for owners and business-support advisors was discussed.

This article explores the nature and impact of gestation-specific human capital on successful start-up among a random sample of Canadian nascent entrepreneurs. Although much is known about the relationship between individual-level factors and the probability of becoming a nascent entrepreneur, the same cannot be said for the relationship between individual-level factors and success in starting a business. Previous studies of existing business founders indicate that general human capital (education and work experience) plays a role in opportunity identification, but at best plays a very weak role in opportunity pursuit. In light of these findings we sought to identify elements of human capital that would be specific to gestation–previous start-up experience, completion of classes or workshops in starting a business, and financial management capability (FMC). In documenting these elements, we found the majority of the sample had not taken any classes or workshops on starting a business, were novices to the start-up process, and were characterized by a wide range of financial management capability. Among those nascent entrepreneurs who succeeded in starting a business, FMC was found to be associated with sustainability. We conclude by discussing implications for researchers.

This study investigates differences in financial funding between immigrant and non-immigrant businesses and delineates factors influencing financial funding of immigrant businesses. Data for the study were collected in Israel between 2000 and 2005. By combining convenient and snowball samples, 214 native Israelis and 153 FSU immigrant entrepreneurs answered a questionnaire. We classified financial sources for immigrant businesses according to their affiliation to the ethnic community, and according to their relation to official financial institutions. Our study revealed that the scope of funding of immigrant businesses is significantly smaller than that of non-immigrant businesses. Immigrant entrepreneurs are more likely to finance their businesses from informal sources but they use fewer loans from family and friends than non-immigrant entrepreneurs. We found that immigrant entrepreneurs who deal with co-ethnic clients do not use more ethnic sources of capital for financing their businesses: the share of co-ethnic clients does not influence the ratio of ethnic financial sources for both setting up and expanding immigrant businesses. Our study revealed that governmental support in the terms of designated loans is the most salient factor influencing financial funding of immigrant businesses. The results suggest important implications for public policy.

The process of starting and surviving a new venture is always a challenge, and this is aggravated by unfavorable conditions especially prevalent in less affluent, developing, and transitional economies. This study reviews and integrates the literature on different entrepreneurial dimensions in transitional economies and provides a case analysis, Kyrgyzstan. The review of the entrepreneurial motivations dimension indicated four major motives behind starting a new venture, and an examination of the entrepreneurial problems dimension underlined common problems prevalent in different transitional economies. Findings of the Kyrgyz case indicated that the entrepreneurial motives of local entrepreneurs are of the extrinsic type and related to push factors; difficulty with finding capital, existence of red tape, and high labor turnover rate are major entrepreneurial problems. There are favorable entrepreneurial opportunities in general, but exploitation of these is contingent on appropriate support. Based on the literature review and synthesis as well as the case study, transitional economies need more competitive, liberal, and transparent business environments to be supported by more developed financial systems and a more efficient labor force. Further, two future research areas on transitional economies are suggested and an update on Kyrgyzstan is included.

This study looks at the relationship between the success of microfinance institutions and the degree of economic freedom in their host countries. Many microfinance institutions are currently not self-sustaining, and both theoretical and empirical work suggests that the economic environment in which they operate is an important factor in their ability to reach this goal, furthering the mission of outreach to the poor. The sustainability of the microfinance institutions is analyzed here using a large cross-section of institutions and countries. The results show that microfinance institutions operate primarily in countries with a relatively low degree of overall economic freedom and that government intervention in the economy can reduce their sustainability.