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Necessity Versus Opportunity Motivation: Nascent Firm Performance In Caribbean Small Island Developing States

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  • PREEYA S. MOHAN

    (Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies, St. Augustine Campus, Trinidad and Tobago, West Indies)

Abstract

This paper investigates entry motivation of nascent entrepreneurs and their post-entry performance in Caribbean Small Island Developing States (SIDS). The study estimates the effect of being a nascent opportunity/necessity entrepreneur on three business-performance variables — firm growth, exports and innovation using regression analysis and control for time, country and sector effects. The data come from the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) for Barbados, Jamaica and Trinidad and Tobago. The results show that opportunity versus necessity entrepreneurial start-up motivation tends to be related to a superior post-entry firm performance. In addition, personal and firm characteristics influence post-entry firm performance including gender, education, household income, number of owners, firm age and number of workers at start-up.

Suggested Citation

  • Preeya S. Mohan, 2019. "Necessity Versus Opportunity Motivation: Nascent Firm Performance In Caribbean Small Island Developing States," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-22, December.
    • Handle: RePEc:wsi:jdexxx:v:24:y:2019:i:04:n:s1084946719500237
    DOI: 10.1142/S1084946719500237
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    Cited by:

    1. Preeya S. Mohan, 2022. "An investigation into entrepreneurial intentions in Caribbean Small Island Developing States," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-21, December.

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