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Effects of entrepreneurial heterogeneity within necessity- and opportunity-based entrepreneurs on business performance

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  • Eriko Naiki

    (Doshisha University)

  • Yuta Ogane

    (Nanzan University)

Abstract

This paper examines whether and how heterogeneity within necessity- and opportunity-based entrepreneur groups affects business performance using a survey of 21,532 new firms in Japan. The major findings are as follows. First, business performance is not homogeneous among either necessity- or opportunity-based entrepreneurs. Second, the existing theory that necessity-based entrepreneurs tend to show poorer performance than opportunity-based entrepreneurs does not necessarily hold when considering heterogeneity within the groups. Specifically, among some types of necessity- and opportunity-based entrepreneurs, necessity-based entrepreneurs can even exhibit better performance than opportunity-based entrepreneurs.

Suggested Citation

  • Eriko Naiki & Yuta Ogane, 2024. "Effects of entrepreneurial heterogeneity within necessity- and opportunity-based entrepreneurs on business performance," International Entrepreneurship and Management Journal, Springer, vol. 20(2), pages 807-840, June.
    • Handle: RePEc:spr:intemj:v:20:y:2024:i:2:d:10.1007_s11365-023-00903-z
    DOI: 10.1007/s11365-023-00903-z
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    More about this item

    Keywords

    Necessity-based entrepreneurs; Opportunity-based entrepreneurs; Business performance;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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