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Opportunity entrepreneurs - potential drivers of non-farm growth in rural Vietnam?

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Author Info

  • Juergen Bruenjes

    ()
    (Institute of Economic and Cultural Geography, Leibniz University Hanover)

  • Javier Revilla Diez

    (Institute of Economic and Cultural Geography, Leibniz University Hanover)

Abstract

In this paper we apply the concept of necessity and opportunity entrepreneurship to rural Vietnam. The aim is to evaluate whether opportunity entrepreneurs in rural areas in developing countries have a greater potential to stimulate endogenous non-farm growth than necessity entrepreneurs. The results show that opportunity entrepreneurs are relatively frequent. They have an agricultural background less often and are better educated and skilled. In addition, they are more successful in terms of profits, even after controlling for general business and locational characteristics. However, even rural opportunity entrepreneurs are often not oriented towards employment growth and thus have a limited capacity to generate nonâ€farm employment for other households. It becomes clear that although the necessity/opportunity concept has so far been primarily applied to developed countries, distinguishing opportunity and necessity entrepreneurship is very suitable in a rural developing context if some contextual specifics of the rural environment are taken into account.

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Bibliographic Info

Paper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2012-01.

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Length: 28 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:pum:wpaper:2012-01

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Related research

Keywords: Necessity entrepreneurship;  opportunity entrepreneurship;  developing countries; Vietnam;

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References

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  1. Jörn Block & Philipp Sandner, 2009. "Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data," SOEPpapers on Multidisciplinary Panel Data Research 191, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Uwe Blien, 2011. "The Interaction between Culture and Economy in Vietnam," ERSA conference papers ersa11p342, European Regional Science Association.
  3. Block, Joern & Wagner, Marcus, 2006. "Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earnings Differentials," MPRA Paper 610, University Library of Munich, Germany.
  4. Earle, John S. & Sakova, Zuzana, 2000. "Business start-ups or disguised unemployment? Evidence on the character of self-employment from transition economies," Labour Economics, Elsevier, vol. 7(5), pages 575-601, September.
  5. Günther, Isabel & Launov, Andrey, 2012. "Informal employment in developing countries," Journal of Development Economics, Elsevier, vol. 97(1), pages 88-98.
  6. Thomas Gries & Wim Naudé, 2010. "Entrepreneurship and structural economic transformation," Small Business Economics, Springer, vol. 34(1), pages 13-29, January.
  7. Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
  8. Giacomin, Olivier & Janssen, Frank & Guyot, Jean-luc & Lohest, Olivier, 2011. "Opportunity and/or necessity entrepreneurship? The impact of the socio-economic characteristics of entrepreneurs," MPRA Paper 29506, University Library of Munich, Germany.
  9. Michael Grimm & Jens Krüger & Jann Lay, 2011. "Barriers To Entry And Returns To Capital In Informal Activities: Evidence From Sub‐Saharan Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57, pages S27-S53, 05.
  10. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
  11. Cynthia Benzing & Hung Manh Chu & Gerard Callanan, 2005. "A Regional Comparison Of The Motivation And Problems Of Vietnamese Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 3-27.
  12. Roy Thurik & Ingrid Verheul & Isabel Grilo & Reena Bhola, 2006. "Explaining engagement levels of opportunity and necessity entrepreneurs," Scales Research Reports H200610, EIM Business and Policy Research.
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Cited by:
  1. David B. Audretsch & Dirk Christian Dohse & Annekatrin Niebuhr, 2014. "Regional Unemployment Structure and New Firm Formation," Kiel Working Papers 1924, Kiel Institute for the World Economy.

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