The Significance of Business Exit for Future Entrepreneurial Activity

Purpose: The purpose of this paper is to analyse the impact of business exits on future dimensions of entrepreneurial activity at the macroeconomic level. Design/methodology/approach: This research uses the Global Entrepreneurship Monitor (GEM) data for 41 countries and the Generalized Method of Moments (GMM) to carry out the analysis. The paper differentiates the effect of the two components of total entrepreneurial activity, and the two motivations for it – opportunity and necessity entrepreneurship. Findings: The results presented here show a positive and significant effect of the coefficient associated with exits in all models. This means that the levels of entrepreneurial activity exceed business exits. The robustness of the models are tested, including other variables such as the fear of failure, the Gross Domestic Product, role models, entrepreneurial skills and the unemployment variables. The main hypothesis which stated that at national level business exits imply greater rates of opportunity-driven entrepreneurship is corroborated. Originality/value: One would expect that unemployment rates would imply higher levels of necessity entrepreneurship. However, results show that unemployment rates do in fact favour opportunity entrepreneurship levels. This could be due to those government policies that are aimed at promoting entrepreneurship through the capitalization of unemployment to be totally invested in a new start-up. To the best of our knowledge, this is the first panel data study to link previous exit rates to future dimensions of entrepreneurial activity. Keywords: Entrepreneurship, business exits, social values, industrial organization Paper type: Research paper

Protective behavioral strategies and future drinking behaviors: Effect of drinking intentions.

Alcohol use is common among United States and Swedish high school students and is related to negative consequences. Whereas drinking intentions are associated with future drinking behaviors, the use of protective behavioral strategies (PBS) is associated with decreased alcohol-related harm among young adults. The interactive effect of PBS and drinking intentions in predicting alcohol outcomes has not been examined. Further, because most PBS studies have been conducted among U.S. college students, PBS research among other populations is needed. The aims of this study were to evaluate longitudinally (a) the relationships between drinking intentions, PBS and alcohol outcomes, and (b) the moderating roles of drinking intentions and country in these relationships among United States and Swedish high school drinkers. Data were collected at baseline, 6- and 12-month follow-ups on 901 Swedish and 288 U.S. high school drinkers. Drinking intentions were associated with more alcohol use and consequences, and use of certain PBS was related to fewer alcohol-related consequences over time. Additionally, the negative prospective relationship between use of PBS and alcohol use, but not alcohol-related consequences, was moderated by intentions, such that the relationship was stronger among participants endorsing high drinking intentions. Country did not moderate these relationships. These results provide initial support for the generalizability of PBS college research to United States and Swedish high school students and suggest that interventions targeting the use of PBS may be most effective among high school drinkers endorsing high drinking intentions. (PsycINFO Database Record

Entrepreneurial skills and over-education five years later. A comparison between Spain and the Netherlands

[cat] El fenòmen de la sobre-educació és freqüent i persistent a molts països. En aquest article estudiem el paper de les habilitats emprenedores en evitar la sobre-educació a la primera feina, i en sortir d’una situació de sobre-educació cinc anys després. Comparem els resultats d’Espanya i Holanda, dos països que difereixen en el seu sistema educatiu i mercat de treball. Els resultats mostren que les habilitats emprenedores ajuden a evitar i/o sortir de la sobre-educació només a Espanya, on el sistema educatiu és més flexible i menys vinculat amb el mercat de treball. En general, els nostres resultats recolzen les polítiques que promocionen el desenvolupament d’habilitats emprenedores al sistema educatiu espanyol.

Entrepreneurial skills and over-education five years later. A comparison between Spain and the Netherlands

[cat] El fenòmen de la sobre-educació és freqüent i persistent a molts països. En aquest article estudiem el paper de les habilitats emprenedores en evitar la sobre-educació a la primera feina, i en sortir d’una situació de sobre-educació cinc anys després. Comparem els resultats d’Espanya i Holanda, dos països que difereixen en el seu sistema educatiu i mercat de treball. Els resultats mostren que les habilitats emprenedores ajuden a evitar i/o sortir de la sobre-educació només a Espanya, on el sistema educatiu és més flexible i menys vinculat amb el mercat de treball. En general, els nostres resultats recolzen les polítiques que promocionen el desenvolupament d’habilitats emprenedores al sistema educatiu espanyol.

Yrittäjyysintentiosta yrittäjäksi - vai yrittäjyydestä luopujaksi?

Tutkielman tavoitteena on syventää käsitystä yrittäjäksi ryhtymisestä ja siihen vaikuttavista tekijöistä. Tutkielmassa on tutkittu yrittäjyyttä, yrittäjäksi ryhtymisen prosessia ja yrittäjäkoulutusta. Tutkielmassa tarkastellaan yrittäjäkurssin käyneitä henkilöitä, joista osa on perustanut yrityksen, mutta osa luopunut yrittäjyysintentiostaan yrittäjäksi ryhtymisen prosessin aikana. Tutkimus on luonteeltaan laadullinen. Tutkielmassa on teemahaastatteluilla selvitetty, minkälainen on yrittäjäksi ryhtyvän päätöksentekoprosessi, mitkä tekijät korostuvat päätöksentekoprosessissa yrittäjäksi ryhtyneillä ja aiotusta yrittäjyydestä luopuneilla, sekä mikä on ollut koulutuksen vaikutus yrittäjyysprosessissa. Tutkimuksessa on haastateltu yhtätoista Lappeenrannan seudun Yrittäjyysprojektin yrittäjäkurssin käynyttä henkilöä. Näiden haastatteluiden pohjalta on luotu tarinat jokaisesta henkilöstä. Päätöksentekoprosessit vaihtelivat tapauskohtaisesti sekä ajan että intensiteetin suhteen. Haastatelluista yrittäjiksi ryhtyneillä korostuivat tilannetekijät, kuten työttömyys ja työtyytymättömyys yrittäjyyteen ajaneina tekijöinä. Henkilötekijöistä esille nousivat sisäisen hallinnan tunne ja suoriutumisen tarve. Yrittäjäkurssilla koettiin olevan tiedonsaannin kannalta suuri merkitys.

The down-regulation of disgust by implementation intentions: experiential and physiological concomitants

Emotion regulation plays a key role in mental health and psychopathology. Therefore, it seems important to develop effective forms of emotion regulation. Implementation intentions are if-then plans that help people attain their self-regulatory goals. Perspective-taking and response-focused implementation intentions have been shown to reduce feelings of unpleasantness and arousal, respectively, in response to briefly presented disgusting pictures. The present study addressed the open research questions whether forming these types of implementation intentions is effective in regulating affect during prolonged presentation of disgusting pictures, and whether it is associated with changes in physiological arousal. Eighty-one participants viewed disgusting, neutral, and pleasant pictures of 6 s duration under four instructions: the goal intention to not get disgusted, this goal intention furnished with a perspective-taking or a response-focused implementation intention, and no emotion regulation instructions. The dependent variables were ratings of disgust, valence, arousal, and electrodermal activity. Only perspective-taking implementation intention participants significantly reduced their disgust and unpleasantness as compared to goal-intention and control participants. Arousal and skin conductance did not significantly differ between conditions. The effectiveness of response-focused but not perspective-taking implementation intentions seems to be substantially reduced during sustained exposure duration.

Entrepreneurial Initiative Selling Within Organizations: Towards a More Comprehensive Motivational Framework

We develop and test a motivational framework to explain the intensity with which individuals sell entrepreneurial initiatives within their organizations. Initiative selling efforts may be driven by several factors that hitherto have not been given full consideration: initiative characteristics, individuals' anticipation of rewards, and their level of dissatisfaction. On the basis of a survey in a mail service firm of 192 managers who proposed an entrepreneurial initiative, we find that individuals' reported intensity of their selling efforts with respect to that initiative is greater when they (1) believe that the organizational benefits of the initiative are high, (2) perceive that the initiative is consistent with current organizational practices (although this effect is weak), (3) believe that their immediate organizational environment provides extrinsic rewards for initiatives, and (4) are satisfied with the current organizational situation. These findings extend previous expectancy theory-based explanations of initiative selling (by considering the roles of initiative characteristics and that of initiative valence for the proponent) and show the role of satisfaction as an important motivational driver for initiative selling.

Market orientation and performance in entrepreneurial SMEs

Market orientation is the organizational culture that creates the necessary behaviors for continuous additional value for customers and thus continuous superior performance for the business. The field of market orientation has been studied repeatedly during the past two decades. Yet research has concentrated on large firms in large domestic markets creating a need for diversifying research. The master’s thesis at hand examined the general incidence of market orientation among SMEs from five different industries as well as its consequences on SME performance. The empirical part of the thesis was conducted with a web-based survey that resulted in 255 responses. The data of the survey was analyzed by statistical analysis. The incidence of market orientation varied among dimensions and market orientation did not show any direct effect on firm performance. Customer orientation was the only dimension that showed a direct (positive) effect. On the contrary, moderating effects were found which indicate that the effect of market orientation in SMEs is influenced by other factors that should receive further attention. Also industry specific differences were discovered and should be further examined.

The Interplay between Market Orientation and Entrepreneurial Orientation - Empirical Evidence from SMEs

The purpose of this thesis is to investigate how the dimensions of market orientation and entrepreneurial orientation are carried out in small and medium-sized enterprises (SME). In addition, the research aims to answer how these strategic orientations are apparent in SMEs, how the orientations co-vary, and how the dimensions of orientations are carried out in successful SMEs. The qualitative case study was participated by 16 SMEs. The research sample was gathered trough face-to-face interviews, consisting of Likert scale statements and open-ended questions. The main restriction of implementing market and entrepreneurial orientations in SMEs were scarce resources. Thus, the enterprises were required to make trade-offs between the different dimensios of orientations. Risk-aversive enterprises had emphasis on reactive customer orientation whereas, willing to take risks was generally related to proactiveness. Proactive enterprises utilized interfunctional coordination, and innovativeness was supported by value network coordination. The majority of the successful enterprises were growth-oriented, aiming to be technologial leaders in their industries. The successful firms placed similar emphasis on customer and product orientation.

On the cross-road of ethical- and fashion consumerism: intentions of pink ribbon campaign consumers

Tutkielman tavoitteena oli selvittää Roosanauha kampanjan tuotteiden ostoon liittyvää aikeen muodostumista kuluttajilla. Lisäksi tavoitteena oli selvittää onko aikeen muodostumisessa eroja uuden pinkin värin tai lahjoitus ominaisuuden osalta. Tutkimus toteutettiin sähköisenä kyselynä, jota analysoitiin tilastollisin menetelmin, lähinnä korrelaatioiden avulla. Tutkimus ei saavuttanut toivottua päämääräänsä lähinnä huonoksi jääneen vastausten kokonaismäärän vuoksi.Joitakin suuntaa antavia tuloksia pystyttiin kuitenkin tunnistamaan. Tuloksissa oli viitteitä lahjoitusominaisuuden tärkeydestä kuluttajille sekä vaaleanpunaiseen väriin positiivisesti asennoitumisesta. Kampanjan jatkoa ajatellen markkinoijien on syytä huomata tuloksissa ilmennyt värin tärkeä rooli sekä lahjoitusominaisuudelle painottunut sosiaalisten normien vahvuus.

Towards conceptually comprehensive and integrated theory of entrepreneurial opportunity

Insufficient understanding of entrepreneurial opportunities characterizes entrepreneurship research (Companys & McMullen 2006, 302). Subsequently, the purpose of this study was to analyze the concept of entrepreneurial opportunity and to explore and synthetize the integrated theory of entrepreneurial opportunity. A theoretical and concept analytical approach was adapted. Findings of this study was that entrepreneurial opportunity concept was used for variety of different phenomena. No commonly accepted definition existed. Altogether 24 attributes that described the concept were found. The most frequently attached attributes were agent and action, new goods and services, market, value, new means ends or both, and future. Further, the results implied that opportunity could be best understood as a part of a process. Opportunity emerges out of intervened factors. Changes in the environment together with factors related to knowledge, cognition and social ties are the most important drivers of opportunity. Preventing factors that impeded the emergence of opportunity were typically related to cognitive and organizational factors. This study found a tendency towards more integrated theory of entrepreneurial opportunity. The integrated theory acknowledged the usefulness of both discovery and creation theories of opportunity in explaining opportunity. Yet three argument types of integrating two different opportunity theories were identified. These were process category, contextual category and complementing category. Opportunity is at the same time cognitive, social and linguistic construct, although it is shaped by the objective environment. Opportunity requires linguistic endeavors to become explicit. Materialization of opportunity occurs in a social context. Moreover, it is always characterized by some extent of subjectivity, as opportunities cannot appear without the agent and their action. Due to these the concept remains always to some extent ambiguous. Tolerating and harnessing change and investing in human and social capital create the preeminent environment for the entrepreneurial opportunity to be identified.