Journal of Developmental Entrepreneurship

The purpose of this research is to examine country institutional profile for encouraging entrepreneurial activity in two developmental states: South Korea and United Arab Emirates. Data was collected from business students in the two countries to examine the favorability of their institutional environment for entrepreneurship. Confirmatory factor analysis indicated high reliability, construct validity and internal consistency for the Korean and Arabic language versions of the questionnaire instrument in the respective countries. Results revealed important cross-national differences between the two countries in the regulatory, cognitive and normative dimensions of the institutional environment. Implications, limitations and future research directions are discussed.

We sought to ascertain whether newly-formed micro firms owned by minority entrepreneurs would be as likely to be profitable or not when compared to non-minority business owners. Additionally, we placed special emphasis on the impact of equity and debt to determine if capital financing influences firm profitability the same or differently for minority as compared to non-minority owned micro firms. Using longitudinal data from the Kauffman Firm Survey, micro firms owned by Hispanic and Black entrepreneurs were less likely to be profitable than non-minority owned micro firms, whereas profitability differences were not found between the latter and Asian-owned micro firms. Moreover, Hispanic and Black-owned micro firms that made use of personal debt were more likely to be profitable than those using only equity to finance operations. Asian-owned micro firms that utilized business debt were more likely to earn a profit than those solely using equity. Alternatively, non-minority owners benefited in terms of profitability from the use of both personal and business debt. Implications of these findings for minority entrepreneurship are discussed.

Entrepreneurship capital refers to the factors of a region that drives new businesses (Audretsch and Keilbach, 2004). This study considers industry growth and performance in manufacturing, retail and service as components of entrepreneurship capital to drive the long-term growth of new establishments. Using a panel data of 2,940 counties from 2002–2007, our results support the notion that the overall new venture activity is benefited by the industry growth and performance. Future research directions and practical implications are also discussed.

This study tests the hypotheses that: (i) formal microfinance institutions (MFIs) using their own mobilized financial resources (based on owners' equity, commercial lending or deposits) for on-lending reach non-poor clients and (ii) concentrating on the achievement of financial sustainability causes an institution to target non-poor clients. Using data on 2,691 MFI clients and non-clients from Ghana, we revisit the microfinance argument of serving poorer clients and sustainability, and in addition examine the effect of the source of funds and type of institution on the financial and social objectives of MFIs. Following the correction of endogeneity, our regression analysis shows that unlike financial self-sufficiency, MFIs that are only operationally self-sufficient reach poorer clients, and also, formal institutions dispensing their own funds target non-poor clients. The latter finding suggests the importance of complementary development strategies and a deliberate harmonization of microfinance interventions, irrespective of the source of funds.

A number of solutions have been suggested for overcoming the considerable and entrenched economic and social disadvantage indigenous Australians face, including the encouragement to gain employment in the mainstream economy and to become entrepreneurs. Governments of all persuasions have implemented policies to encourage indigenous entrepreneurship; however, most appear to have had little success. To support and promote indigenous entrepreneurship effectively, it is important to identify the factors that either promote or hinder entrepreneurial endeavors. This paper reports on a study that used a qualitative research approach guided by a social constructivist paradigm to examine the experiences of Indigenous entrepreneurs in Northern New South Wales, Australia. The study results indicated that participants were found to possess characteristics of confidence, strong self-determination and ambition, and a desire to achieve. The role and influence of spouses, extended family and other role models were important determinants of entrepreneurial success, as were access to financial capital and established business networks. Above average education levels, prior industry experience and the assistance of mentors were also found to positively influence success. Lacking access to financial capital was a major hindrance. Participants also found government assistance programs confusing, unwieldy and difficult to access. Other hindrances included the presence of racism and discrimination; and difficulties reconciling business needs with the requests and needs of family, culture and community.

Despite a widespread recognition in the mainstream entrepreneurship literature that many legitimate entrepreneurs do not pursue purely profit-driven commercial goals, the small but burgeoning literature on entrepreneurship in the informal economy has assumed entrepreneurs operating wholly or partially on an off-the-books basis are commercial rather than social entrepreneurs. To evaluate critically this assumption, evidence is reported from a survey involving face-to-face interviews with 70 informal entrepreneurs located in deprived and affluent urban and rural English localities. The finding is that informal entrepreneurs range from those pursuing purely commercial ends through to purely social entrepreneurs pursuing solely social logics, with the majority situated somewhere in-between combining both commercial and social objectives. The outcome is a call to recognize that not all informal entrepreneurs are purely commercial entrepreneurs and that the commercial versus social entrepreneurship dichotomy will need to be transcended if the multifarious goals underpinning informal entrepreneurship are to be better understood.