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Discovering resource mobilization pattern of selected necessity entrepreneurs in the Philippines

Author

Listed:
  • Moses G. Manalang

    (Far Eastern University Cavite)

  • Jyro B. Triviño

    (Ateneo de Manila University)

Abstract

There is limited literature available about Filipino necessity entrepreneurs, particularly about how they gather resources before starting their businesses. Most scholarly articles about this group describe them as unemployed, low-skilled individuals who are undercapitalized but still pursue their ventures to earn a modest amount for themselves and their families. In other words, necessity entrepreneurs are compelled to become entrepreneurs, unlike most literature that defines entrepreneurship as a choice. This study is based on the resource-based view and resource dependence theory and uses the resource mobilization framework. The study utilizes a multiple case study research design using a critical rationalist approach by featuring a barber, manicurist, food kiosk owner, and drug store owner. Pattern-matching is used for data analysis. The results indicate that necessity entrepreneurs use resource bricolage, while opportunity entrepreneurs use resource optimization when starting a venture.

Suggested Citation

  • Moses G. Manalang & Jyro B. Triviño, 2024. "Discovering resource mobilization pattern of selected necessity entrepreneurs in the Philippines," SN Business & Economics, Springer, vol. 4(11), pages 1-14, November.
    • Handle: RePEc:spr:snbeco:v:4:y:2024:i:11:d:10.1007_s43546-024-00740-4
    DOI: 10.1007/s43546-024-00740-4
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    References listed on IDEAS

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    1. Angulo-Guerrero, María J. & Pérez-Moreno, Salvador & Abad-Guerrero, Isabel M., 2017. "How economic freedom affects opportunity and necessity entrepreneurship in the OECD countries," Journal of Business Research, Elsevier, vol. 73(C), pages 30-37.
    2. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    3. Fairlie, Robert W & Fossen, Frank M, 2018. "Opportunity Versus Necessity Entrepreneurship: Two Components of Business Creation," Santa Cruz Department of Economics, Working Paper Series qt0rd0g01g, Department of Economics, UC Santa Cruz.
    4. repec:hal:pseose:hal-01060265 is not listed on IDEAS
    5. Argyro (Iro) Nikiforou & John C. Dencker & Marc Gruber, 2019. "Necessity entrepreneurship and industry choice in new firm creation," Strategic Management Journal, Wiley Blackwell, vol. 40(13), pages 2165-2190, December.
    6. 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.
    7. Joern Block & Karsten Kohn & Danny Miller & Katrin Ullrich, 2015. "Necessity entrepreneurship and competitive strategy," Small Business Economics, Springer, vol. 44(1), pages 37-54, January.
    8. Markus Poschke, 2013. "‘Entrepreneurs out of necessity’: a snapshot," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 658-663, May.
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