Varieties of necessity entrepreneurship—new insights from sub-Saharan Africa
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Authors
Weber, C
Fasse, A
Haugh, H
Grote, U
Publication Date
2022Journal Title
Entrepreneurship: Theory and Practice
ISSN
1042-2587
Publisher
Wiley
Type
Article
This Version
AM
Metadata
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Weber, C., Fasse, A., Haugh, H., & Grote, U. (2022). Varieties of necessity entrepreneurship—new insights from sub-Saharan Africa. Entrepreneurship: Theory and Practice https://doi.org/10.1177/10422587221111737
Abstract
Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.
Keywords
necessity entrepreneurship, tanzania, resource endowments, life satisfaction, capability approach, cluster analysis, endogenous switching regression
Identifiers
External DOI: https://doi.org/10.1177/10422587221111737
This record's URL: https://www.repository.cam.ac.uk/handle/1810/338133
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