Opportunity versus Necessity
Entrepreneurs that voluntarily choose to start a business because they are able to identify a good business opportunity and act on it -- opportunity entrepreneurs -- might be different along various dimensions from those who are forced to become entrepreneurs because of lack of other alternatives -- necessity entrepreneurs. To provide evidence on these differences, this paper exploits a unique data set covering a wide array of characteristics, including cognitive skills, non-cognitive skills and managerial practices, for a large sample of female entrepreneurs in Mexico. Descriptive results show that on average opportunity entrepreneurs have better performance and higher skills than necessity entrepreneurs. A discriminant analysis reveals that discrimination is difficult to achieve based on these observables, which suggests the existence of unobservables driving both the decision to become an opportunity entrepreneur and performance. Thus, an instrumental variables estimation is conducted, using state economic growth in the year the business was set up as an instrument for opportunity, to confirm that opportunity entrepreneurs have higher performance and better management practices.
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| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016-04
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| Subjects: | OPEN ACCESS, RESULT, EMPLOYMENT, FIRMS, GLOBAL ECONOMY, BUSINESSES, BUSINESS, EXPENSES, RESULTS, SEARCH, PARTNERS, SALES, PERFORMANCE, EMAIL ADDRESS, COMPETITIVE ADVANTAGE, COMPETITIVENESS, PRODUCTIVITY, NETWORKS, INFORMATION, ENTREPRENEURS, SELLING, MARKETING, FIRM, PERFORMANCE MEASURES, ENTERPRISE, IMPACTS, ENTREPRENEURSHIP, ENTREPRENEUR, BUSINESS GROWTH, ENTERPRISES, BUSINESS PERFORMANCE, MARKET, PLANNING, GROWTH POTENTIAL, QUALITY, COMMERCIAL ACTIVITY, GRANTS, BUSINESS OPPORTUNITY, BUSINESS TRAINING, MICROENTERPRISES, |
| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs https://hdl.handle.net/10986/24210 |
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dig-okr-10986242102024-08-07T19:59:35Z Opportunity versus Necessity Understanding the Heterogeneity of Female Micro-Entrepreneurs Calderon, Gabriela Iacovone, Leonardo Juarez, Laura OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES Entrepreneurs that voluntarily choose to start a business because they are able to identify a good business opportunity and act on it -- opportunity entrepreneurs -- might be different along various dimensions from those who are forced to become entrepreneurs because of lack of other alternatives -- necessity entrepreneurs. To provide evidence on these differences, this paper exploits a unique data set covering a wide array of characteristics, including cognitive skills, non-cognitive skills and managerial practices, for a large sample of female entrepreneurs in Mexico. Descriptive results show that on average opportunity entrepreneurs have better performance and higher skills than necessity entrepreneurs. A discriminant analysis reveals that discrimination is difficult to achieve based on these observables, which suggests the existence of unobservables driving both the decision to become an opportunity entrepreneur and performance. Thus, an instrumental variables estimation is conducted, using state economic growth in the year the business was set up as an instrument for opportunity, to confirm that opportunity entrepreneurs have higher performance and better management practices. 2016-05-04T17:51:16Z 2016-05-04T17:51:16Z 2016-04 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs https://hdl.handle.net/10986/24210 English en_US Policy Research Working Paper;No. 7636 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES |
| spellingShingle |
OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES Calderon, Gabriela Iacovone, Leonardo Juarez, Laura Opportunity versus Necessity |
| description |
Entrepreneurs that voluntarily choose to
start a business because they are able to identify a good
business opportunity and act on it -- opportunity
entrepreneurs -- might be different along various dimensions
from those who are forced to become entrepreneurs because of
lack of other alternatives -- necessity entrepreneurs. To
provide evidence on these differences, this paper exploits a
unique data set covering a wide array of characteristics,
including cognitive skills, non-cognitive skills and
managerial practices, for a large sample of female
entrepreneurs in Mexico. Descriptive results show that on
average opportunity entrepreneurs have better performance
and higher skills than necessity entrepreneurs. A
discriminant analysis reveals that discrimination is
difficult to achieve based on these observables, which
suggests the existence of unobservables driving both the
decision to become an opportunity entrepreneur and
performance. Thus, an instrumental variables estimation is
conducted, using state economic growth in the year the
business was set up as an instrument for opportunity, to
confirm that opportunity entrepreneurs have higher
performance and better management practices. |
| format |
Working Paper |
| topic_facet |
OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES |
| author |
Calderon, Gabriela Iacovone, Leonardo Juarez, Laura |
| author_facet |
Calderon, Gabriela Iacovone, Leonardo Juarez, Laura |
| author_sort |
Calderon, Gabriela |
| title |
Opportunity versus Necessity |
| title_short |
Opportunity versus Necessity |
| title_full |
Opportunity versus Necessity |
| title_fullStr |
Opportunity versus Necessity |
| title_full_unstemmed |
Opportunity versus Necessity |
| title_sort |
opportunity versus necessity |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016-04 |
| url |
http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs https://hdl.handle.net/10986/24210 |
| work_keys_str_mv |
AT calderongabriela opportunityversusnecessity AT iacovoneleonardo opportunityversusnecessity AT juarezlaura opportunityversusnecessity AT calderongabriela understandingtheheterogeneityoffemalemicroentrepreneurs AT iacovoneleonardo understandingtheheterogeneityoffemalemicroentrepreneurs AT juarezlaura understandingtheheterogeneityoffemalemicroentrepreneurs |
| _version_ |
1807157662167597056 |