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 potential for consumer segmentation in the Finnish housing market

This article examines whether cluster analysis can be used to identify groups of Finnish residents with similar housing preferences. Because homebuilders in Finland have been providing relatively homogeneous products to an increasingly diverse population, current housing may not represent the occupiers' preferences so a segmentation approach relying on socioeconomic characteristics and expressed preferences may not be sufficient. We use data collected via questionnaire in a principal component analysis followed by a hierarchical cluster analysis to determine whether different combinations of housing attributes are important to groups of residents. We can identify four clusters of housing residents based on important characteristics when looking for a house. The clusters describe Finnish people in different phases of the life cycle and with different preferences based on their recreational activities and financial expenditures. Mass customization of housing could be used to better appeal to these different clusters of consumers who share similar preferences, increasing consumer satisfaction and improving profitability.

Where do consumers draw the line? Factors informing perceptions and justifications of deviant consumer behaviour

Deviant consumer behaviour in the marketplace is an ongoing problem causing harm to the organisation, employees, and other consumers. To address this problem, this study explores consumer perceptions of right and wrong using the novel concept of a deviance threshold – the mental line in the sand dictating right and wrong. Using consumer-based interviews with a card-sort activity, findings supported and extended dimensions proposed to explain why some behaviours are perceived as more serious or unethical than others. Moreover, why specific neutralisation techniques are used and how they affect categorisations of behaviours within an individual’s deviance threshold is explained. This study offers alternative strategies tailored to challenging consumer justifications to curb deviance. Implications support abandoning the universal approach to deterrence.

Impact of online privacy concerns and brand reputation on consumer willingness to provide personal information

The aim of this research was to identify the role of brand reputation in encouraging consumer willingness to provide personal data online, for the benefits of personalisation. This study extends on Malhotra, Kim and Agarwal’s (2004) Internet Users Information Privacy Concerns Model, and uses the theoretical underpinning of Social Contract Theory to assess how brand reputation moderates the relationship between trusting beliefs and perceived value (Privacy Calculus framework) with willingness to give personal information. The research is highly relevant as most privacy research undertaken to date focuses on consumer related concerns. Very little research exists examining the role of brand reputation and online privacy. Practical implications of this research include gaining knowledge as to how to minimise online privacy concerns; improve brand reputation; and provide insight on how to reduce consumer resistance to the collection of personal information and encourage consumer opt-in.

Unpacking the perceived opportunity to misbehave: The influence of spatio-temporal and social dimensions on consumer misbehavior

Purpose This study aims to use opportunity as a theoretical lens to investigate how the spatio-temporal and social dimensions of the consumption environment create perceived opportunities for consumers to misbehave. Design/methodology/approach Drawing on routine activity theory and social impact theory, the authors use two experiments to demonstrate that spatio-temporal and social dimensions can explain consumer theft in retail settings. Findings Study 1 reveals mixed empirical support for the basic dimensions of routine activity theory, which posits that the opportunity to thieve is optimised when a motivated offender, suitable target and the absence of a capable formal guardian transpire in time and space. Extending the notion of guardianship, Study 2 tests social impact theory and shows that informal guardianship impacts the likelihood of theft under optimal routine activity conditions. Originality/value The study findings highlight important implications for academicians and retail managers: rather than focusing on the uncontrollable characteristics of thieving offenders, more controllable spatio-temporal and social factors of the retail environment can be actively monitored and manipulated to reduce perceived opportunities for consumer misbehaviour.

‘Lemon Laws’: an inquiry into consumer protections and remedies for buyers of new motor vehicles

1. Under the Terms of Reference for the Committee’s Inquiry, ‘lemons’ are defined as ‘new motor vehicles with numerous, severe defects that re-occur despite multiple repair attempts or where defects have caused a new motor vehicle to be out of service for a prolonged period of time’. Consumers are currently protected in relation to lemon purchases by the Australian Consumer Law (ACL) located in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (CCA). The ACL applies as a law of Queensland pursuant to the Fair Trading Act 1989 (Qld). The voluntary recall and consumer guarantees law took effect on 1 January 2011. 2. In 2006, the Government of Victoria made a commitment to introduce a lemon law into the provisions of the then Fair Trading Act 1999 (Vic). The public consultation process on the proposal to introduce a lemon law for motor vehicle purchases in Victoria was conducted by Ms Janice Munt MP, with the assistance of Consumer Affairs Victoria (CAV). CAV released an Issues Paper to canvas with industry and the community options for the development and introduction of a motor vehicle lemon law.(Consumer Affairs Victoria, Introducing Victorian motor vehicle lemon laws, Issues Paper, (September, 2007). 3. A CAV report prepared by Janice Munt MP was released in July, 2008 (Consumer Affairs Victoria, Motor Cars: A report on the motor vehicle lemon law consultations (July 2008) (Victorian Lemon Law Report). However, the Victorian proposal was overtaken by events leading to the adoption of a uniform consumer protection law in all Australian jurisdictions, the ACL. 4. The structure of this submission is to consider first the three different bases upon which consumers can obtain relief for economic loss arising from defects in motor vehicles. The second part of the submission considers the difficulties encountered by consumers in litigating motor vehicle disputes in the courts and tribunals. The third part of the submission examines the approach taken in other jurisdictions to resolving motor vehicle disputes. The final part of the submission considers a number of possible reforms that could be made to the existing law and its enforcement to reduce consumer detriment arising from the purchase of ‘lemon’ motor vehicles. 5. There are three principal bases upon which a consumer can obtain redress for defects in new motor vehicles under the ACL. The first is where the manufacturer admits liability and initiates the voluntary recall procedure provided for in s 128 of the ACL. Under this basis the manufacturer generally repairs or replaces the part subject to the recall free of charge. The second basis is where the manufacturer or dealer denies liability and the consumer is initiates proceedings in the court or tribunal seeking a statutory remedy under the ACL, the nature of which will depend on whether the failure to comply with the consumer guarantee was major or not. The third basis upon which a consumer can obtain redress is pursuant to public enforcement by the ACCC. Each basis will be considered in this part. What all three bases have in common is the need to conduct an investigation to identify the nature of the defect and how it arose.

Sorry Joe, consumer spending will disappoint Santa this Christmas

Treasurer Joe Hockey called on shoppers this week to “not let Santa down” and asked them to spend up big at the stores this Christmas. Unfortunately, the latest retail and consumer confidence data indicate his calls are falling on deaf ears. Westpac’s Consumer Confidence Index shows pessimists outnumber optimists. This has been the case for the last nine months. The index was up 1.9% in November, but still well below its level a year ago.

Exploring changing culture and building capacity in research with consumers, carers and consumer companions

Background Australian policy mandates consumer and carer participation in mental health services at all levels including research. Inspired by a UK model - Service Users Group Advising on Research [SUGAR] - we conducted a scoping project in 2013 with a view to create a consumer and carer led research process that moves beyond stigma and tokenism, that values the unique knowledge of lived experience and leads to people being treated better when accessing services. This poster presents the initial findings. Aims The project’s purpose was to explore with consumers, consumer companions and carers at the Metro North Mental Health-RBWH their interest in and views about research partnerships with academic and clinical colleagues. Methods This poster overviews the initial findings from three audio-recorded focus groups conducted with a total of 14 consumers, carers and consumer companions at the Brisbane site. Analysis Our work was guided by framework analysis (Gale et al. 2013). It defines 5 steps for analysing narrative data: familiarising; development of categories; indexing; charting and interpretation. Eight main ideas were initially developed and were divided between the authors to further index. This process identified 37 related analytic ideas. The authors integrated these by combining, removing and redefining them by consensus though a mapping process. The final step is the return of the analysis to the participants for feedback and input into the interpretation of the focus group discussions. Results 1. Value & Respect: Feeling Valued & Respected, Tokenism, Stigma, Governance, Valuing prior knowledge / background 2. Pathways to Knowledge and Involvement in Research: ‘Where to begin’, Support, Unity & partnership, Communication, Co-ordination, Flexibility due to fluctuating capacity 3. Personal Context: Barriers regarding Commitments & the nature of mental illness, Wellbeing needs, Prior experience of research, Motivators, Attributes 4. What is research? Developing Knowledge, What to do research on, how and why? Conclusion and Discussion Initial analysis suggests that participants saw potential for ‘amazing things’ in mental health research such as reflecting their priorities and moving beyond stigma and tokenism. The main needs identified were education, mentoring, funding support and research processes that fitted consumers’ and carers’limitations and fluctuating capacities. They identified maintaining motivation and interest as an issue since research processes are often extended by ethics and funding applications. Participants felt that consumer and carer led research would value the unique knowledge that the lived experience of consumers and carers brings and lead to people being treated better when accessing services.

Understanding the heterogeneity of entrepreneurship education: going beyond Gartner

This paper seeks to draw attention to the importance of appreciating and using ever-present diversity to achieve increased legitimacy for entrepreneurship education. As such, it aims to draw the reader into a reflective process of discovery as to why entrepreneurship education is important and how such importance can be prolonged. Design/methodology/approach - The paper revisits Gartner's 1985 conceptual framework for understanding the complexity of entrepreneurship. The paper proposes an alternative framework based on the logic of Gartner's framework to advance the understanding of entrepreneurship education. The authors discuss the dimensions of the proposed framework and explain the nature of the dialogic relations contained within. Findings - It is argued that the proposed conceptual framework provides a new way to understand ever-present heterogeneity related to the development and delivery of entrepreneurship education. Practical implications - The paper extends an invitation to the reader to audit their own involvement and proximity to entrepreneurship education. It argues that increased awareness of the value that heterogeneity plays in student learning outcomes and programme branding is directly related to the presence of heterogeneity across the dimensions of the conceptual framework. Originality/value - The paper introduces a simple yet powerlu1 means of understanding what factors contribute to the success or otherwise of developing and delivering entrepreneurship education. The simplicity of the approach suggested provides all entrepreneurship educators with the means to audit all facets of their programme.

Exploring the role of entrepreneurial marketing in entrepreneurship education

This is a conceptual paper that seeks to explore the role of entrepreneurial marketing in promoting entrepreneurship in tertiary education. We postulate that the subject of entrepreneurship is marketed in different ways as a means of introducing (a) new learners to the subject area of entrepreneurship and (b) the wide ranging possibilities of entrepreneurship education. This research explores both the entrepreneurial marketing and the entrepreneurship literature to capture how they meet at the interface to solve the issue of appropriately marketing entrepreneurship courses within the context of university education. Whilst empirical evidence of entrepreneurial marketing has tended to concentrate on profit-making and small organizations, fewer studies have sought to understand the role of entrepreneurial marketing in public sector organizations, including the university. Although this article is exploratory in nature, it shows the benefits of utilizing the extensive research within the fields of entrepreneurial marketing and entrepreneurship to determine the value of entrepreneurship education for policymakers, universities and students.

Teaching Entrepreneurship to Undergraduates

This book is deliberatively provocative, and awakens another level of thinking on how to teach entrepreneurship. It will be required reading for entrepreneurship educators and those building a university entrepreneurship programme for years to come.

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 an evolutionary approach to entrepreneurship

This paper explores that application of evolutionary approaches to the study of entrepreneurship. It is argued an evolutionary theory of entrepreneurship must give as much concern to the foundations of evolutionary thought as it does the nature entrepreneurship. The central point being that we must move beyond a debate or preference of the natural selection and adaptationist viewpoints. Only then can the interrelationships between individuals, firms, populations and the environments within which they interact be better appreciated.

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.

Teaching Entrepreneurship to Postgraduates

The motivation for this work is to provide a distinct sister volume to Teaching Entrepreneurship to Undergraduates. The first volume sought to promote a learner-centred approach to thinking about how to teach entrepreneurship to undergraduates. This volume seeks to define the difference in thinking between teaching entrepreneurship to postgraduates as opposed to undergraduates. Therefore, a common structure is retained across both volumes, with attention given to both subtle and major differences between the motivation and process of learning related to entrepreneurship education for postgraduates and undergraduates. It is hoped that this sister volume will be as distinctive and innovative in terms of its constant focus on challenging issues, possible solutions to those challenges (based both the author’s practice and that of other educators situated in various global contexts), and probing questions to prompt reflection of your own teaching practice.