Reassessing Necessity Entrepreneurship in Developing Countries

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dc.contributor.authorRosa, Peter
dc.contributor.authorKodithuwakku, Sarath
dc.contributor.authorBalunywa, Waswa
dc.date.accessioned2018-12-17T14:15:36Z
dc.date.available2018-12-17T14:15:36Z
dc.date.issued2006-11-02
dc.descriptionProceedings of the 29th International Conference on Entrepreneurship From Local to Global Enterprise Creation and Developmenten_US
dc.description.abstractThe paper examines the relationship between the state of necessity and entrepreneurial activity, through qualitative case studies from Uganda and Sri Lanka, and a survey of 1006 Ugandan adults. Questions are posed on the tenability of hypothesis that necessity is a primary motive for business start-up in poor countries. The relationship between necessity and business start-up, though significant, is in the opposite direction from that predicted by the “necessity hypothesis”. Those with low incomes were much less likely to start a business, because they often became “trapped” by having to work long hours for just enough income to survive. Opportunistic diversification, however, flourished once resources improved. The results question recent attempts to classify countries on the basis of distinctive forms of entrepreneurship based on necessity and opportunity. Policy makers should be cautious in formulating policies based on demarcating necessity and opportunity entrepreneurship.en_US
dc.identifier.citationRosa, Peter J.; Kodithuwakku, Sarath; and Balunywa, Waswa (2006) Reassessing Necessity Entrepreneurship in Developing Countriesen_US
dc.identifier.urihttps://hdl.handle.net/20.500.12282/4601
dc.language.isoenen_US
dc.publisherInstitute for Small Business & Entrepreneurshipen_US
dc.subjectPovertyen_US
dc.subjectNecessityen_US
dc.subjectEntrepreneurshipen_US
dc.subjectEconomic growthen_US
dc.subjectDeveloping countriesen_US
dc.titleReassessing Necessity Entrepreneurship in Developing Countriesen_US
dc.typeArticleen_US
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