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Full And Part-Time Entrepreneurship And The Supply Of Entrepreneurial Effort: Evidence From Mexican Microenterprises

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  • ALEJANDRO MUNGARAY

    (School of Economics and International Relations, Universidad Autónoma de Baja California, Calzada Tecnológico #14418, Colonia Mesa de Otay, Tijuana, Baja California, Mexico 22390, Mexico)

  • MARTIN RAMIREZ-URQUIDY

    (School of Economics and International Relations, Universidad Autónoma de Baja California, Calzada Tecnológico #14418, Colonia Mesa de Otay, Tijuana, Baja California, Mexico 22390, Mexico)

Abstract

This paper aims to study the influence of pecuniary and non-pecuniary aspects on entrepreneurship. It attempts to fill a gap in terms of explaining how these aspects determine individual and household choices or constraints regarding entering entrepreneurship as either part time, with participation in labor markets, or as full time, as well as the corresponding supply of entrepreneurial effort. The study searches for insights on the relation between motivations intrinsic in either form of entrepreneurship and their effects on the supply of the entrepreneurial effort. Part-time micro entrepreneurs respond more to non-pecuniary aspects when maximizing their life choices, which divert them from profit maximization. However, full-time micro entrepreneurs are more sensitive to pecuniary factors and their choices regarding utility maximization are more compatible with profit maximization, albeit both groups are part of simple forms of entrepreneurship. The results identify the expectations placed on enterprises run by part-time and full-time entrepreneurial households in terms of their motivation and attitude toward the goal of profit making and consequently, to entrepreneurial supply and performance. Both groups may be relevant from the policy standpoint and employment in developing economies.

Suggested Citation

  • Alejandro Mungaray & Martin Ramirez-Urquidy, 2011. "Full And Part-Time Entrepreneurship And The Supply Of Entrepreneurial Effort: Evidence From Mexican Microenterprises," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 441-458.
    • Handle: RePEc:wsi:jdexxx:v:16:y:2011:i:04:n:s1084946711001938
    DOI: 10.1142/S1084946711001938
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    References listed on IDEAS

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    1. repec:idb:brikps:publication-detail,7101.html?id=23575 is not listed on IDEAS
    2. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications - Books, The World Bank Group, number 6730, December.
    3. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632.
    4. Simon C. Parker (ed.), 2006. "The Economics of Entrepreneurship," Books, Edward Elgar Publishing, number 3920.
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    Cited by:

    1. Jörn H. Block & Andreas Landgraf, 2016. "Transition from part-time entrepreneurship to full-time entrepreneurship: the role of financial and non-financial motives," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 259-282, March.
    2. Anmari Viljamaa & Elina Varamäki & Sanna Joensuu-Salo, 2017. "Best of Both Worlds? Persistent Hybrid Entrepreneurship," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(04), pages 339-359, December.
    3. Pedro Orraca & Martin Ramirez-Urquidy & Natanael Ramirez, 2017. "Beyond The Local Market: Mexican Cross-Border Entrepreneurs In The United States," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-23, December.

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