Identify the Factors Affecting the Transition of Necessity Female Nascent Entrepreneurs to Established Entrepreneurship

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Business Management, Faculty of Humanities, Hazrat-e Masoumeh University, Qom, Iran. r.kohanhooshnejad@hmu.ac.ir. (Corresponding Author)

2 MSc, Department of Business Management, Faculty of Humanities, Hazrat-e Masoumeh University, Qom, Iran. zahramousavi6036@gmail.com

10.22051/jwsps.2023.43364.2731

Abstract

Women play a crucial role in promoting entrepreneurial activities and enhancing the economic status of society. The entry of women into the business space can be motivated by necessity or opportunity. Necessity women's entrepreneurship, considered unproductive, contrasts with opportunity women's entrepreneurship, which is known as productive entrepreneurship. Businesses led by opportunity female entrepreneurs tend to have a longer and more stable life cycle compared to those led by necessity entrepreneurs. This is due to the former's high entrepreneurial capabilities and access to various human, social, and financial capitals, enabling them to reach the stage of established entrepreneurship. Consequently, they make substantial contributions to economic growth and development. On the other hand, necessity entrepreneurs, facing lower entrepreneurial capabilities and limited access to various forms of capital, often struggle to progress to the established entrepreneurship stage and make comparatively less contribution to the economy. The present study aims to identify the factors influencing the transition of necessity female nascent entrepreneurs to established entrepreneurship. This research is applied in terms of its purpose and exploratory in nature. The statistical population of the research consists of 15 necessity female nascent entrepreneurs and entrepreneurship specialists from Poldakhter city, Lorestan province, who were selected purposefully. Data were collected using a semi-structured interview method, and theme analysis was applied for data analysis. The research findings revealed that financial support, appropriate laws and tax systems, access to empowering centers, technical and commercial infrastructure, formal and informal education, social capital, business management competencies, social status, market freedom, traits, and psychological capital are influential in the transition of necessity female nascent entrepreneurs to established entrepreneursh.
 





Keywords




Women, Entrepreneurship, Necessity, Opportunistic, Productive
‌                             
 
‌Introduction
Researchers have identified two different types of motivation for starting a new business among women entrepreneurs, which include necessity and opportunity entrepreneurial motivation (Sendra-Pons et al., 2022). Entrepreneurship with necessity motivation refers to the push motivations that arise from unemployment, family pressure, dismissal, being unemployable (due to an unfavorable background), and people's dissatisfaction with their current situation, leading them to engage in entrepreneurial activities. On the other hand, entrepreneurship with opportunity motivation involves pull motivations arising from the discovery of opportunities, the need for independence, innovation, and the desire to improve prosperity and wealth, prompting people to start new businesses (Zwan et al., 2016). Necessity entrepreneurship is considered unproductive, while opportunity entrepreneurship is known as productive entrepreneurship (Fu et al., 2020).
The findings of the GEM (2021) indicate that businesses led by opportunity nascent entrepreneurs have a longer and more stable life cycle than those led by necessity entrepreneurs. This is due to their high entrepreneurial capabilities and access to various human, social, and financial capitals, enabling them to reach the stage of established entrepreneurship, thereby contributing significantly to economic growth and development. However, necessity entrepreneurs, facing lower entrepreneurial capabilities and lacking access to various forms of capital, are often hindered from reaching the established entrepreneurship stage and make a comparatively smaller contribution to the economy (Zwan et al., 2016).
The transition of necessity female nascent entrepreneurs to established entrepreneurship is crucial for the economic prosperity of societies. From the researchers' perspective, it is essential to focus on necessity female nascent entrepreneurs because they constitute one of the fastest-growing entrepreneurial populations capable of contributing to wealth generation in the economy. Therefore, policies should be developed to ensure that the necessary platform is provided for these entrepreneurs, and they receive sufficient support and assistance to acquire the knowledge, skills, and resources needed to achieve established entrepreneurship (Martinez-Rodriguez et al., 2020).
According to the GEM report (2021), concerning the ratio of opportunity nascent entrepreneurship to necessity entrepreneurship, it can be said that the level of productive entrepreneurial activities in Iran is not in good condition compared to other developed countries. Additionally, the rate of necessity nascent entrepreneurship is high in developing countries, emphasizing the need to identify the factors that cause the transition of necessity nascent entrepreneurs to productive and established entrepreneurship.
 
Methodology
The current research is applied in terms of purpose and exploratory in terms of method. The statistical population of this research includes entrepreneurship experts and necessity female nascent entrepreneurs in Poldakhtar city, Lorestan province, who have reached the stage of established entrepreneurship. In this research, the purposeful sampling method was used to determine the sample size. A semi-structured interview was employed as a data collection tool. Theoretical saturation was achieved through thirteen interviews, and two additional interviews were conducted for further certainty. Regarding the validity and reliability of the research instrument, content validity and the intra-subject agreement method of two coders were employed. To evaluate the internal and external validity of the research findings, Guba and Lincoln's four criteria (1995: 235), including credibility, dependability, confirmability, and transferability, were applied. For data analysis, the theme analysis method with the approach of Braun and Clarke (2006: 81) was utilized.
 
Findings
The findings of this research, obtained through qualitative data analysis and semi-structured interviews, are presented in the form of 27 sub-themes and 10 main themes, explaining the transition of necessity female nascent entrepreneurs in Lorestan province to established entrepreneurship. Regarding the derivation of the main themes, it should be mentioned that the main theme of financial support was extracted from the sub-themes of venture capital and government financial assistance. The main theme of appropriate laws and the tax system has been obtained from the sub-themes of solving administrative bureaucracies and addressing tax system problems. Access to empowering centers is the main theme derived from the sub-themes of access to parks and incubator centers, as well as skill-oriented centers. The main theme of technical and commercial infrastructure has been extracted from the sub-themes of support facilities and professional services. The main theme of formal and informal education is obtained from the sub-themes of holding workshops and seminars and teaching the principles of entrepreneurship. Social capital is the main theme obtained from the sub-themes of network relations and trust. Furthermore, the main theme of business management competencies is derived from the sub-themes of opportunity exploitation, strategy formulation, marketing research, sales management, and implementation. The main theme of social status is obtained from the sub-themes of financial ability, family background, and education level. Finally, the main theme of market freedom is extracted from the sub-themes of ease of business entry into the market and antitrust laws, and the main theme of characteristics and psychological capital is derived from the sub-themes of uncertainty tolerance, desire for achievement, self-efficacy, resilience, and hope.
 
Result
With the attention and focus of necessity female nascent entrepreneurs in Lorestan province and the government on the main variables discovered in this research, favorable results will be achieved. Consequences such as access to financial resources, administrative simplifications, and a reduction in the tax burden, as well as the utilization of services related to improving skills and business growth, can be expected. Additionally, other positive outcomes include acquiring operational knowledge, obtaining support from the perspective of resources and information, the ability to identify and solve problems and challenges in the business environment, improved social status, better management, and the implementation of appropriate decisions for the stabilization and development of the business. The realization of these consequences for necessity female nascent entrepreneurs will likely lead to their transition to established entrepreneurship, thereby having positive effects on economic growth and development.
 
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Bastian, B. L. & Zali, M. R. (2016). Entrepreneurial motives and their antecedents of men and women in North Africa and the Middle East. Gender in Management: An International Journal, 31(7), 456-478.
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Keywords

Main Subjects


Abazi-Alili, H. & Jusaj, Y. (2022). Women entrepreneurship development in Kosovo: Challenges and opportunities. Entrenova-Enterprise Research Innovation, 8(1), 212-224.
Adom, K. & Asare-Yeboa, I. T. (2016). An evaluation of human capital theory and female entrepreneurship in sub-Sahara Africa: Some evidence from Ghana. International Journal of Gender and Entrepreneurship, 8(4), 402-423.
Al-Ghamri, N. (2016). Challenges facing businesswomen and their negative impact on the performance of small businesses in the province of Jeddah in Saudi Arabia. International Journal of Business and Management, 11(9), 96-116.
Ali, H. Y., Khan, M. K. & Asrar-ul-Haq, M. (2019). Factors affecting the performance of women entrepreneurs in SMEs: a case study of Punjab, Pakistan. Journal for International Business and Entrepreneurship Development, 12(1), 67-82.
Almobaireek, W. N. & Manolova, T. S. (2013). Entrepreneurial motivations among female university youth in Saudi Arabia. Journal of Business Economics and Management, 14(1), S56-S75.
Al-Qahtani, M., Fekih Zguir, M., Al-Fagih, L. & Koç, M. (2022). Women entrepreneurship for sustainability: Investigations on status, challenges, drivers, and potentials in Qatar. Sustainability, 14(7), 1-27.
Amidžić, R. (2019). A set of factors related to the opportunity motivation: Analysis of Early-stage entrepreneurs from SEE. Strategic Management-International Journal of Strategic Management and Decision Support Systems in Strategic Management, 24(2), 45-57.
Amrita, K., Garg, C. P., Raghuvanshi, J. & Singh, S. (2022). An integrated model to prioritize the strategies for women entrepreneurship development to overcome its barriers: Case of Indian MSMEs. IEEE Transactions on Engineering Management, 71, 3964-3978.
Audretsch, D. B., Belitski, M., Chowdhury, F. & Desai, S. (2022). Necessity or opportunity? Government size, tax policy, corruption, and implications for entrepreneurship. Small Business Economics, 58(4), 2025-2042.
Bastian, B. L. & Zali, M. R. (2016). Entrepreneurial motives and their antecedents of men and women in North Africa and the Middle East. Gender in Management: An International Journal, 31(7), 456-478.
Bijaoui, I. & Tarba, S. Y. (2011). From necessity to business entrepreneurship: The case of the Songhai center, Porto Novo, Benin. In fourth Annual EuroMed Conference of the EuroMed Academy of Business.
Brush, C. G. & Cooper, S. Y. (2012). Female entrepreneurship and economic development: An international perspective. Entrepreneurship & Regional Development, 24(1-2), 1-6.
Caliendo, M., Kritikos, A. S. & Stier, C. (2023). The influence of start-up motivation on entrepreneurial performance. Small Business Economics, 61(6), 869-889.
Carmichael, T. & Mazonde, N. B. (2016). The influence of culture on female entrepreneurs in Zimbabwe. The Southern African Journal of Entrepreneurship and Small Business Management, 8(1), 1-10.
Cetindamar, D., Gupta, V. K., Karadeniz, E. E. & Egrican, N. (2012). What the numbers tell: The impact of human, family and financial capital on women and men's entry into entrepreneurship in Turkey? Entrepreneurship & Regional Development, 24(1-2), 29-51.
Chinomona, E. & Maziriri, E. T. (2015). Women in action: Challenges facing women entrepreneurs in the Gauteng Province of South Africa. International Business & Economics Research Journal, 14(6), 835-850.
Coffman, C. D. & Sunny, S. A. (2021). Reconceptualizing necessity and opportunity entrepreneurship: A needs-based view of entrepreneurial motivation. Academy of Management Review, 46(4), 823-825.
Dencker, J. C., Bacq, S., Gruber, M. & Haas, M. (2021). Reconceptualizing necessity entrepreneurship: A contextualized framework of entrepreneurial processes under the condition of basic needs. Academy of Management Review, 46(1), 60-79.
Dhahri, S., Slimani, S. & Omri, A. (2021). Behavioral entrepreneurship for achieving the sustainable development goals. Technological Forecasting and Social Change, 165, 120561.
Digan, S. P., Sahi, G. K., Mantok, S. & Patel, P. C. (2019). Women's perceived empowerment in entrepreneurial efforts: The role of bricolage and psychological capital. Journal of Small Business Management, 57(1), 206-229.
Duberley, J. & Carrigan, M. (2013). The career identities of ‘mumpreneurs’: Women’s experiences of combining enterprise and motherhood. International Small Business Journal, 31(6), 629-651.
Fairlie, R. W. & Fossen, F. M. (2018). Opportunity versus necessity entrepreneurship: Two components of business creation. Stanford Institute for Economic Policy Research Discussion Paper No. 17-014, 1-49.
Fernández, M. B. (2022). Comparative analysis: Factors influencing female entrepreneurship in Europe. International Journal of Trade, Economics and Finance, 13(1), 19-23.
Foroutan, M., Safiri, K. & Mirsardo, T. (2021). Phenomenological typology
of entrepreneurship and self-employment of working graduated women in
Tehran. Social Development, 15(4), 1-38. (In Persian.
Foroutan, M., Safiri, K. & Mirsardo, T. (2022). Study of the effect of entrepreneurial capital on the entrepreneurial performance of women higher education graduates living in Tehran. Women Social and Psychological Studies, 20(1), 99-129. (In Persian)
Fu, H., Okumus, F., Wu, K. & Köseoglu, M. A. (2019). The entrepreneurship research in hospitality and tourism. International Journal of Hospitality Management, 78, 1-12.
Fuentelsaz, L., González, C., Maícas, J. P. & Montero, J. (2015). How different formal institutions affect opportunity and necessity entrepreneurship. BRQ Business Research Quarterly, 18(4), 246-258.
Guled, N. S. & Kaplan, B. (2018). Factors influencing women entrepreneurs’ business success in Somalia. Research in Business and Management, 5(1), 13-24.
Handaragama, S. & Kusakabe, K. (2021). Participation of women in business associations: A case of small-scale tourism enterprises in Sri Lanka. Heliyon, 7(11), e08303.
Huang, Y., Li, P., Wang, J. & Li, K. (2022). Innovativeness and entrepreneurial performance of female entrepreneurs. Journal of Innovation & Knowledge, 7(4), 100257.
Isa, F. M., Muhammad, N. M. N., Ahmad, A. & Noor, S. (2021). Effect of ICT on women entrepreneur business performance: Case of Malaysia. Journal of Economics and Business, 4(1), 136-146.
Ivanović-Djukić, M., Lepojević, V., Stefanović, S., van Stel, A. & Petrović, J. (2018). Contribution of entrepreneurship to economic growth: A comparative analysis of southeast transition and developed European countries. International Review of Entrepreneurship, 16(2), 257-256.
Jahed, A. M., Kulsum, U. & Akthar, S. (2011). Women entrepreneurship in Bangladesh: A study on support services available for its development and growth. Global Management Review, 5(3), 1-11.
Jesurajan, S. V. A. & Gnanadhas, M. E. (2011). A study on the factors motivating women to become entrepreneurs in Tirunelveli district. Asian Journal of Business and Economics, 1(1), 1-14.
Jha, P. & Alam, M. M. (2022). Antecedents of women entrepreneurs’ performance: An empirical perspective. Management Decision, 60(1), 86-122.
Kalyani, A. L. N. S. & Mounika, G. S. (2016). Factors influencing female entrepreneurship. Anveshana’s International Journal Of Research in Regional Studies, Law, Social Sciences, Journalism and Management Practices, 1(8), 1-13.
Kamaruddin, L., Arshad, A. S., Osman, C. A. & Buyong, S. Z. (2018). An exploratory study of Malaysian women entrepreneurs: What drives them into business? ASEAN Entrepreneurship Journal, 4(2), 84-96.
Karakire Guma, P. (2015). Business in the urban informal economy: Barriers to women’s entrepreneurship in Uganda. Journal of African Business, 16(3), 305-321.
Khalid, R., Raza, M., Sawangchai, A. & Somtawinpongsai, C. (2022). The challenging factors affecting women entrepreneurial activities. Journal of Liberty and International Affairs, 8(1), 51-66.
Li, Y., Huang, S. S. & Song, L. (2020). Opportunity and necessity entrepreneurship in the hospitality sector: Examining the institutional environment influences. Tourism Management Perspectives, 34, 100665.
Maleki, B., Ranaei Kurdshuli, H., Mosleh Shirazi, A. N. & Mousavi Haghighi, M. H. (2018). Development of entrepreneurial motivation index in Iran's entrepreneurial ecosystem with systems dynamics approach. Entrepreneurship Development, 12(4), 601-620. (In Persian)
Martínez-Rodriguez, I., Callejas-Albiñana, F. E. & Callejas-Albiñana, A. I. (2020). Economic and socio-cultural drivers of necessity and opportunity entrepreneurship depending on the business cycle phase. Journal of Business Economics and Management, 21(2), 373-394.
Mashenene, R. G. & Majenga, A. (2014). Socio-cultural factors and financial performance among women small and medium enterprises in Tanzania. European Journal of Business and Management, 6(32), 153-163.
Maudati, M., Torabi, T., Memaranjad, A. & Mahmoudzadeh, M. (2017). Formal and informal institutional factors, opportunistic entrepreneurship and economic growth using the generalized torque method. Entrepreneurship Development, 11(3), 539-521. (In Persian)
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