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Opportunity and necessity entrepreneurship: do linguistic structures matter?

Author

Listed:
  • Nabamita Dutta

    (University of Wisconsin)

  • Russell S. Sobel

    (Baker School of Business)

  • Adam Stivers

    (University of Wisconsin)

  • Thor Lienhard

    (University of Wisconsin)

Abstract

A rapidly growing literature explores the link between linguistic structures and economic outcomes. The language a speaker uses systematically influences cognition, thinking, and thus behavior. It also influences the form and content of cultural information that is shared through time and generations. We examine how these linguistic structures influence entrepreneurship. Not all forms of entrepreneurship are equally conducive to, nor associated with, economic growth and prosperity. A distinction is often made between necessity entrepreneurship, which is a result of individuals being pushed into self-employment by adverse circumstances, and opportunity entrepreneurship in which individuals choose to pursue promising ideas. We find that countries with languages not dropping personal pronouns in their major spoken language, or those speaking a weak future time reference (FTR) language, have higher proportions of opportunity relative to necessity-driven entrepreneurs, and that this effect is stronger in countries with higher levels of economic freedom.

Suggested Citation

  • Nabamita Dutta & Russell S. Sobel & Adam Stivers & Thor Lienhard, 2025. "Opportunity and necessity entrepreneurship: do linguistic structures matter?," Small Business Economics, Springer, vol. 64(4), pages 1981-2012, April.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:4:d:10.1007_s11187-024-00972-6
    DOI: 10.1007/s11187-024-00972-6
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    More about this item

    Keywords

    Linguistic structures; Pronoun drop; Future time reference; Opportunity entrepreneurship; Necessity entrepreneurship; Economic freedom;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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