Titelaufnahme

Titel
Opportunity versus necessity entrepreneurship : two components of business creation / Robert W. Fairlie (University of California, Santa Cruz, NBER and IZA), Frank M. Fossen (University of Nevada, Reno, DIW Berlin and IZA) ; IZA Institute of Labor Economics
VerfasserFairlie, Robert W. In der Gemeinsamen Normdatei der DNB nachschlagen ; Fossen, Frank M. In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, January 2018
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (45 Seiten) : Diagramme
SerieDiscussion paper ; no. 11258
URNurn:nbn:de:hbz:5:2-147238 Persistent Identifier (URN)
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Opportunity versus necessity entrepreneurship [0.64 mb]
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Zusammenfassung

A common finding in the entrepreneurship literature is that business creation increases in recessions. This counter-cyclical pattern is examined by separating business creation into two components: "opportunity" and "necessity" entrepreneurship. Although there is general agreement in the previous literature on the conceptual distinction between these two factors driving entrepreneurship, there are many challenges to creating a definition that is both objective and empirically feasible. We propose an operational definition of opportunity versus necessity entrepreneurship using readily available nationally representative data. We create a distinction between the two types of entrepreneurship based on the entrepreneur's prior work status that is consistent with the standard theoretical economic model of entrepreneurship. Using this definition we document that "opportunity" entrepreneurship is pro-cyclical and "necessity" entrepreneurship is countercyclical. We also find that "opportunity" vs. "necessity" entrepreneurship is associated with the creation of more growth-oriented businesses. The operational distinction proposed here may be useful for future research in entrepreneurship.