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Varieties of Necessity Entrepreneurship – New Insights From Sub Saharan Africa

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  • Christiana Weber
  • Anja Fasse
  • Helen M. Haugh
  • Ulrike Grote

Abstract

Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.

Suggested Citation

  • Christiana Weber & Anja Fasse & Helen M. Haugh & Ulrike Grote, 2023. "Varieties of Necessity Entrepreneurship – New Insights From Sub Saharan Africa," Entrepreneurship Theory and Practice, , vol. 47(5), pages 1843-1876, September.
    • Handle: RePEc:sae:entthe:v:47:y:2023:i:5:p:1843-1876
    DOI: 10.1177/10422587221111737
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