Nascent Entrepreneurship

Research on nascent entrepreneurship concerns itself with the emergence of new business ventures. The research aims to capture the pre-operational stage, from first idea or action to the point where the process ends either in the establishment of a viable new business or in termination of the start-up attempt. Although the label “nascent entrepreneur” is commonly used, it should be noted that it is really the venture that is nascent. The founder(s) may or may not have prior entrepreneurial experience.

Phoenix activity: Regulatory challenges and the law

Remedying the mischief of phoenix activity is of practical importance. The benefits include continued confidence in our economy, law that inspires best practice among directors, and law that is articulated in a manner such that penalties act as a sufficient deterrent and the regulatory system is able to detect offenders and bring them to account. Any further reforms must accommodate and tolerate legal phoenix activity. Phoenix activity pushes tolerance of entrepreneurial activity to its absolute limits. The wisest approach would be to front end the reforms so as to alleviate the considerable detection and enforcement burden upon regulatory bodies. There is little doubt that breach of the existing law is difficult and expensive to detect; and this is a significant burden when regulators have shrinking budgets and are rapidly losing feet on the ground. This front end approach may need to include restrictions on access to limited liability. The more limited liability is misused, the stronger the argument to limit access to limited liability. This paper proposes that such an approach is a legitimate next step for a robust and mature capitalist economy.

Sri Lankan entrepreneurs in Australia: Chance or choice?

Purpose Ethnic entrepreneurship is, and always has been, a means of survival. However, there is limited literature on ethnic entrepreneurship in Australia and therefore, an understanding of ethnic entrepreneurs’ motivations to become self-employed. The purpose of this paper is to report the influential factors in the decision to engage in self-employment through case studies of members of Melbourne’s Sri Lankan community informed by the mixed embeddedness approach. Design/methodology/approach The mixed embeddedness approach frames the study where the authors examine the motivations for business of five Sri Lankan entrepreneurs. Narratives are used to construct individual case studies, which are then analyzed in terms of the motivations for, resources used and challenges faced on the entrepreneurial journey. Findings For these ethnic entrepreneurs, their entrepreneurial activity results from a dynamic match between local market opportunities and the specific ethnic resources available to them at the time of founding. The self-employment decision was not prompted by a lack of human capital but an inability to use that human capital in alternative means of employment at specific points in time. Moreover the authors highlight the importance of social and cultural capital as resources used to overcome challenges on the entrepreneurial journey. Originality/value In this community, entrepreneurship was not a result of a lack of human capital but how it was utilized in combination with social and cultural capitals in the given opportunity structure. The mixed embeddedness approach enables the uncovering of how ethnic network ties were used in light of the opportunities available to build entrepreneurial activity.

ACE research briefing paper 009: Global Entrepreneurship Monitor: GEM Australia - 2014 National Report

Most policymakers and academics agree that entrepreneurship is critical to the development and wellbeing of society. Entrepreneurs create jobs. They drive and shape innovation, thereby speeding up structural changes in the economy. By introducing new competition they contribute indirectly to increased productivity and overall economic activity. Entrepreneurship is thus a catalyst for economic growth and national competitiveness. In 2014, the Global Entrepreneurship Monitor (GEM)conducted its 15th annual survey of the rate and profile of entrepreneurial activity around the globe. GEM interviewed over 206,000 adults aged 18–64 in 70 economies, spanning diverse geographies and a range of development levels. The Australian Centre for Entrepreneurship Research (ACE) participated as the Australian GEM partner, surveying 2,177 Australian adults. This report provides a summary of entrepreneurship in Australia as measured by GEM, and benchmarks this against other countries. We compare the level of entrepreneurship in the population across different phases of the entrepreneurial process, and provide a profile of some key characteristics of entrepreneurs and the businesses they are starting. We also report on some of the institutional and framework conditions that support entrepreneurship.

The Relationship Between University Culture and Climate and Research Scientists’ Spin-off Intentions

Over the past decades, universities have increasingly become involved in entrepreneurial activities. Despite efforts to embrace their 'third mission', universities still demonstrate great heterogeneity in terms of their involvement in academic entrepreneurship. This chapter adopts an institutional perspective to understand how organizational characteristics affect research scientists' entrepreneurial intentions. We study the impact of university culture and climate on entrepreneurial intentions, thereby specifically focusing on intentions to spin off a company. Using a sample of 437 research scientists from Swedish and German universities, our results reveal that the extent to which universities articulate entrepreneurship as a fundamental element of their mission fosters research scientists' spin-off intentions. Furthermore, the presence of university role models positively affects research scientists' propensity to engage in entrepreneurial activities, both directly and indirectly through entrepreneurial self-efficacy. Finally, research scientists working at universities which explicitly reward people for 'third mission' related output show higher levels of spin-off intentions. This study has implications for both academics and practitioners, including university managers and policy makers.

The conundrum of phoenix activity: Is further reform necessary?

Phoenix activity presents a conundrum for the law and its regulators. While there is economic cost associated with all phoenix activity, the underlying behaviour is not always illegal. A transaction with indicators of phoenix activity may be an entirely innocent and well-intentioned display of entrepreneurial spirit, albeit one that has ended in failure. Restructuring post business failure is not illegal per se. Recent reforms targeting phoenix activity fail to grapple with the vast range of behaviour that can be described as phoenix activity since they do not differentiate between legal and illegal activity. This article explores the importance of the distinction between legal and illegal phoenix activity, the extent to which the existing law captures a range of behaviour that can be described as illegal phoenix activity and the response of key regulators and governmental bodies to the absence of single law that attempts to define illegal phoenix activity.

Focus on opportunities as a mediator of the relationship between business owners' age and venture growth

Combining upper echelons and lifespan theories, we investigated the mediating effect of focus on opportunities on the negative relationship between business owners' age and venture growth. We also expected that mental health moderates the negative relationship between business owners' age and focus on opportunities. Path analytic findings based on data from 84 business owners (mean age = 44, range 24-74) supported these hypotheses. Findings suggest that focus on opportunities is a psychological mechanism that links business owners' age with venture growth. Our findings also indicate that mental health helps maintain a high level of focus on opportunities with increasing age.

Focus on opportunities as a mediator of the relationships between age, job complexity, and work performance

Focus on opportunities is a cognitive-motivational facet of occupational future time perspective that describes how many new goals, options, and possibilities individuals expect to have in their personal work-related futures. This study examined focus on opportunities as a mediator of the relationships between age and work performance and between job complexity and work performance. In addition, it was expected that job complexity buffers the negative relationship between age and focus on opportunities and weakens the negative indirect effect of age on work performance. Results of mediation, moderation, and moderated mediation analyses with data collected from 168 employees in 41 organizations (mean age = 40.22 years, SD = 10.43, range = 19-64 years) as well as 168 peers providing work performance ratings supported the assumptions. The findings suggest that future studies on the role of age for work design and performance should take employees' focus on opportunities into account.

Economic theory informing approaches to phoenix activity in small business: A neo-Schumpeterian analysis

The adequacy and efficiency of existing legal and regulatory frameworks dealing with corporate phoenix activity have been repeatedly called into question over the past two decades through various reviews, inquiries, targeted regulatory operations and the implementation of piecemeal legislative reform. Despite these efforts, phoenix activity does not appear to have abated. While there is no law in Australia that declares ‘phoenix activity’ to be illegal, the behaviour that tends to manifest in phoenix activity can be capable of transgressing a vast array of law, including for example, corporate law, tax law, and employment law. This paper explores the notion that the persistence of phoenix activity despite the sheer extent of this law suggests that the law is not acting as powerfully as it might as a deterrent. Economic theories of entrepreneurship and innovation can to some extent explain why this is the case and also offer a sound basis for the evaluation and reconsideration of the existing law. The challenges facing key regulators are significant. Phoenix activity is not limited to particular corporate demographic: it occurs in SMEs, large companies and in corporate groups. The range of behaviour that can amount to phoenix activity is so broad, that not all phoenix activity is illegal. This paper will consider regulatory approaches to these challenges via analysis of approaches to detection and enforcement of the underlying law capturing illegal phoenix activity. Remedying the mischief of phoenix activity is of practical importance. The benefits include continued confidence in our economy, law that inspires best practice among directors, and law that is articulated in a manner such that penalties act as a sufficient deterrent and the regulatory system is able to detect offenders and bring them to account. Any further reforms must accommodate and tolerate legal phoenix activity, at least to some extent. Even then, phoenix activity pushes tolerance of repeated entrepreneurial failure to its absolute limit. The more limited liability is misused and abused, the stronger the argument to place some restrictions on access to limited liability. This paper proposes that such an approach is a legitimate next step for a robust and mature capitalist economy.

Entrepreneurship education: revisiting our role and its purpose

This paper seeks to focus on two questions. First, what value is created by entrepreneurship education? Second, how could any such value be created? The aim therefore is to go beyond any assumed notion that entrepreneurship education is beneficial to students in higher education, to question its underlying value. Design/methodology/approach – A critical realist approach is used to discuss the ontological nature of entrepreneurship education. Specifically, the process through which enterprise knowledge is developed and used by students in higher education. This research is based on a single-site case study at UTAS with the data collected by the author and complemented by other recent work that sought to empirically consider the notion of student value from entrepreneurship education within the same (UTAS) context. Findings – The paper argues that students in higher education understand quite well the limitations of the knowledge they develop about entrepreneurship. That they (the educators) need to better understand the students' journeys so that they can better develop learning environments within which the students' personal development can be advanced. Practical implications – The degree to which educators understand their limitations and the limitations of their students as potential entrepreneurs is critical to maximizing the likely value of entrepreneurship education in higher education. Originality/value – The paper provides a unique way of understanding the process of learning to be entrepreneurial in higher education. As such it offers an alternative way to understand how educators can redefine their importance in the provision of entrepreneurship education. It also highlights the likely limitations of student advancement in the domain of entrepreneurship education in higher education.

Contemplating Whitehead's freedom and discipline

This paper extends the previous application of Alfred Whitehead's educational ideas to the domain of enterprise education. In doing so, a unique approach to enterprise education is illustrated that links students to their reality whilst also connecting the curriculum to contemporary entrepreneurship theory. The paper reports upon past cycles of reflective practice related to the developing hic et nunc teaching and learning framework. Two specific findings of note have emerged. First, that student' learning outcomes are enhanced through the oscillating influence of freedom and discipline. However, in the absence of either factor, sub-optimal outcomes are seen to occur. That is, an imbalance between freedom and discipline has resulted in sub-optimal outcomes from either a lack of student interest or an inability to adequately apply acquired knowledge. Where gains have been made, the most obvious process has been through consultation with students. Second, that the students also play an important role in shaping the nature of the learning environments within which they interact. Both findings are of significant importance to all academics charged with the responsibility of developing enterprise education curriculum. The main implication of the paper is that in the absence of sound pedagogical practises, it is possible that enterprise programs may develop a tendency to reinforce past practises. The processes of constructive alignment and criterion-based assessment are argued to offer avenues through which students can influence the educational process. They also provide the educator with a reflective pathway through which continual improvements are constantly possible. This paper provides other academics with a window through which to view the ongoing development of a process that has been recognised nationally for teaching excellence and influenced many fine young entrepreneurs. The paper also draws attention to a set of core educational philosophies that have transferable value to any academic setting. It is noted that the task of developing a learner-centred curriculum for enterprise education has been an entrepreneurial endeavour in itself. Many mistakes have been made and many memorable achievements have been celebrated.

Developing enterprise curriculum: Building on rock, not sand

Entrepreneurial education is the process of providing individuals with the ability to recognise commercial opportunities and the insight, self-esteem, knowledge and skills to act on them. It includes instruction in opportunity recognition, commercialising a concept, marshalling resources in the face of risk, and initiating a business venture. It also includes instruction in traditional business disciplines such as management, marketing, information systems and finance. The purpose of this paper is to describe the design and introduction of a new program in Entrepreneurship at the University of Tasmania. Rather than adopt a traditional business school (passive learning) approach, within this program the method and responsibility of learning has largely been reversed through the process of student centred learning. This method of learning represents a challenging departure from the traditional mainstream teaching practices. In considering the benefits achievable from this teaching method, this paper also considers the difficulties in transferring increased responsibility to students to manage their futures.

Contemplating Knudsen's Baseline: Where small is not so beautiful

Does the Internet's World Wide Web (the web) represent an opportunity or threat to the small firms of the world? In line with recent calls for entrepreneurship research to adopt a more evolutionary approach, this article considers the context, process, and possible outcomes of small place-based firms operating in a web-impacted environment. Despite initial optimism that the web would provide a level-playing field for firms of all sizes, little evidence exist to support such a notion. When the learning abilities deemed necessary to exploit the web are considered, it would seem that only the most entrepreneurial of small firms would likely adapt to web-impacted environments. It is concluded that the present rate of web-based change represents a unique and valuable research opportunity for entrepreneurship researchers.

A contemporary approach to entrepreneurship education

Entrepreneurial education is the process of providing individuals with the ability to recognise commercial opportunities and the insight, self-esteem, knowledge and skills to act on them. It includes instruction in opportunity recognition, commercialising a concept, marshalling resources in the face of risk, and initiating a business venture. It also includes instruction in traditional business disciplines such as management, marketing, information systems and finance. The purpose of this paper is to describe the design and introduction of a new program in Entrepreneurship at the University of Tasmania. Within this program the process and responsibility of learning has largely been reversed through the process of student centred learning. This method of learning represents a challenging departure from the traditional mainstream teaching practices. In considering the benefits achievable from this teaching method, this paper also considers the difficulties in transferring increased responsibility to students to manage their futures.

Small firm internet adoption: opportunities forgone, a journey not begun

This paper explores the endeavours of five small firms to develop web-based commerce capabilities within their existing operations. The focus is upon the strategic acquisition and exploitation of knowledge which underpins new value creating activates related to web-based commerce. A normative web-based commerce adoption model developed from a review of the extant literature related to electronic marketing, entrepreneurship, and the diffusion of new innovations was empirically tested. A multiple case study design enabled the exploration of contemporary marketing and entrepreneurship issues within the real life context of five small firms. The model aimed to emphasis best-practice adoption methods emphasizing the value of a firm's market orientation and entrepreneurial capabilities. A preliminary test of the model's theoretical contentions lent support to its overall focus, but found that the firm's existing learning capabilities were diminished during the adoption of web-based commerce, and that a lack of vision and prior knowledge produced sub-optimal adoption outcomes.