Explaining Entrepreneurial Performance of Solo Self- Employed from a Motivational Perspective. Nardo de Vries (Panteia/EIM) Werner Liebregts (Tilburg University and Panteia/EIM) OECD-DBA International workshop Skills Development for SMEs and Entrepreneurship - November 28th 2012
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Iii b - vries de explaining the entrepreneurial performance of self-employed
The upgrading of workforce skills is key to the competitiveness of SMEs. In today’s business environment there is a premium on innovation that enables firms to develop new products and services, new production processes and new business models. This requires both in-house innovation and the ability to absorb knowledge from other firms and organisations, both of which call for a skilled labour force. Skills are also a critical but understated resource for entrepreneurship seen in the sense of business creation. Similarly to workforce skills, entrepreneurship skills will boost the competitiveness of local businesses thanks to the improved strategic and management competences of the entrepreneur.
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Explaining Entrepreneurial Performance of Solo Self-Employed from a Motivational Perspective.
Nardo de Vries (Panteia/EIM)Werner Liebregts (Tilburg University and Panteia/EIM)
OECD-DBA International workshopSkills Development for SMEs and Entrepreneurship - November 28th 2012
OECD-DBA workshop - Skills Development for SMEs and Entrepreneurship - November 28th 2012
• Introduction• Motivational approach: opportunity vs. necessity• Research design• Data• Methodology• Results• Conclusions and discussion
Outline
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OECD-DBA workshop - Skills Development for SMEs and Entrepreneurship - November 28th 2012
Introduction
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Introduction
Increase of self-employment:• Structural change (outsourcing and services), individualism, improved
reputation• Entrepreneurship Policy (Van Es and Van Vuuren 2011, Stam 2012)• Supposed to lead to economic growth• Natural or ‘equilibrium’ rate of solo self-employment (Van Stel, Scholman &
Wennekers 2012)
Not just the quantity, but also quality of entrepreneurship (Baumol 1990)• Productive entrepreneurship and economic performance• Motives for entrepreneurship are considered influential • Opportunity vs. Necessity (Reynolds 2002)
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Introduction
Research question(s):• Does the economic performance of opportunity solo self-employed differ from
the economic performance of necessity solo self-employed? • If so, to what extent?• What factors are influential?
OECD-DBA workshop - Skills Development for SMEs and Entrepreneurship - November 28th 2012
Motivational approach
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Motivational approach
Theoretical background• Introduced by Global Entrepreneurship Monitor (Reynolds et al. 2002)• Human capital theory (argued by Block and Sandner 2009)
• Formal education• Experience• Practical learning e.g. active (Ericson and Pakes 1995) and
passive learning (Jovanovic 1982)• Entrepreneurial talent and skills
• Opportunity entrepreneurs are assumed to have higher human capital endowment
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Motivational approach
Literature:• Much research is done in the field of explaining the prevalence
of opportunity and necessity motives.• No consensus on ‘necessity’-measures• Most studies focus on macro-level relationships. • There are very few micro-level studies that actually connect
start-up motivation and economic performance on the individual level.
• General focus on entrepreneurship, no focus on solo self-employed
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This study
• Individual economic performance.• Longitudinal data • Targeting solo self-employed (zzp’ers in Dutch)• Robustness for necessity motives (multiple indicators)• Controls for socio-demographic, firm and organizational
characteristics
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Data
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Data
Explanatory variables:• Three indicators for necessity motives
1. Unemployed (entitled to benefits)2. Self-proclaimed necessity3. Author-classified necessity
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Data
• The entrepreneurial performance of solo self-employed is measured in terms of their annual turnover
• turnover is a categorical dependent variable
• There appears to be a statistically significant relationship between annual turnover and type of solo self-employed in case of all three type dummies
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Data
Cumulative frequencies of all types of necessity SSE