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Factors Influencing the Entrepreneurial Engagement of Opportunity and Necessity Entrepreneurs

Author

Listed:
  • Roy Thurik
  • Ingrid Verheul
  • Jolanda Hessels
  • Peter van der Zwan

Abstract

This paper investigates determinants of engagement in various stages of the entrepreneurial process while considering an individual's start-up motivation using 2007 survey data for 27 European countries and the US. Next to opportunity and necessity start-up motivations, we take into account individuals driven by a combination of both motivations. We observe that opportunity- and necessitydriven entrepreneurs as well as those with mixed start-up motivations have different profiles. Furthermore, they differ concerning the factors that inspire or hinder them to engage in the entrepreneurial process more fully ('to climb the entrepreneurial ladder'). For example, entrepreneurship-specific education, selfemployed parents, risk tolerance, perception of lack of financial support, and living in a metropolitan area are important variables in determining entrepreneurial engagement and failure for opportunity-driven individuals, but they are not (or less) important for necessity-driven individuals.

Suggested Citation

  • Roy Thurik & Ingrid Verheul & Jolanda Hessels & Peter van der Zwan, 2010. "Factors Influencing the Entrepreneurial Engagement of Opportunity and Necessity Entrepreneurs," Scales Research Reports H201011, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201011
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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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