Articles

Zoltan J. Acs, László Szerb & Scott Jackson, Entrepreneurship in Africa Through the Eyes of Gedi (July 4, 2013), available at http://ssrn.com/abstract=2289859.

 Abstract (by authors): Since the 1990s, several new indices like the Index of Economic Freedom, Doing Business, Global Competitiveness Index, have been created to achieving real progress in modernizing the business climates of developed and developing countries alike. These indicators however are focused largely on ameliorating burdens for current business, addressing issues with property rights, processes, etc. While necessary conditions, in the public effort to improve the economic incentives and create employment, they remain insufficient to foster the economic font of development: entrepreneurship. It has to be clear that entrepreneurship, and entrepreneurship policy is not merely about small business, or even at times about business at all, but about creating environments where people are able to perceive entrepreneurial opportunities, opportunities to improve their lives and be empowered by the environment to act upon their visions. While much has been written about the Global Entrepreneurship Monitor (GEM) and increasingly about the Global Entrepreneurship Development Index (GEDI), this paper represents the first attempt to examine private enterprise development in Africa.

 

Stephen M. Aigner, Cornelia Butler Flora, Syed Noor Tirmizi, & Carrie Wilcox,Dynamics to Sustain Community Development in Persistently Poor Rural Areas, Cmty. Dev. J., 34(1), 13-27 (1999)

Abstract:  In confronting the problem of persistent rural poverty, scholars and practitioners of rural development have increasingly questioned the utility of previous antipoverty approaches that emphasize individually oriented cash transfer programs or policies guided by a modernization/development model. Instead, to design a recent ten-year policy initiative, the 1994 US empowerment zone/enterprise community initiative, policy framers chose a new approach, locality-based rural development. Using rural census tracts with persistently poor profiles, the 2 selection process emphasized the primary outcome goals of (1) sustainable community development and (2) economic opportunity for all residents, and two process goals of (3) citizen participation in the construction of a locally defined strategic vision and (4) the formation of community based partnerships to implement benchmark activities to achieve the two primary outcome goals.

 Scot Atkins, A Study into the Lived Experiences of Deaf Entrepreneurs: Considerations for the Professional, 47 J. Am. Deafness & Rehabilitation Ass’n 222 (2013).

Abstract (by author): The number of deaf people owning a business has increased exponentially over the years, making this a worthy subject for exploration and research. Especially in today’s economy, entrepreneurship, or the process of establishing and maintaining a business venture, has become a viable career option for many deaf and hard of hearing individuals. Insights will be offered from the author’s phenomenological research on the lived experiences of deaf entrepreneurs and business owners. Unique themes have been found in this study, and topics relevant to professionals in their support of deaf consumers in the creation of their business ventures are discussed.

Ellen Baker et al., Emergence, Social Capital and Entrepreneurship: Understanding Networks from the Inside, Emergence: Complexity & Org., July 2011, at 21.

Abstract (from journal): Communities are a major research context for both social capital and entrepreneurship, and ‘networks’ is a core concept within both frameworks. There is need for conceptualizing network formation processes, and for qualitative studies of the relational aspects of networks and networking, to complement the existing mainly quantitative studies. Within complexity theory, emergence has been linked with formation of entities including networks, and with social entrepreneurship. In this paper, community networks are interpreted as an emergent dynamic process of action and interaction through an empirical case study conducted in an urban community setting. Interviews were conducted with experiential experts at networking. The study was designed within a social capital framework, but frequent reporting of entrepreneurship prompted additional analysis. Practical and theoretical implications of the network study findings are examined in light of the three frameworks together, and further empirical studies are suggested.

Catherine Bampoky et al., Economic Growth and the Optimal Level of Entrepreneurship (2013), available at http://ssrn.com/abstract=2295612.

Abstract (adapted from authors): What is the “growth penalty” when a country’s entrepreneurship deviates from its optimal level? The authors use data on entrepreneurship for a panel of developed and developing countries over 2003-2011 to estimate growth equations. They treat the impact of entrepreneurship on real GDP growth as heterogeneous across countries. The methodology accounts for unobserved heterogeneity among countries in the optimal entrepreneurship rate and other factors affecting growth. In less developed countries, there is not enough entrepreneurship, and increases in the entrepreneurship rate have a sizeable positive effect on growth. In high income countries, entrepreneurship appears to be close to the optimum. The paper also explores how the growth penalty varies across countries. Higher levels of research and development capability decrease the growth penalty of having too few entrepreneurs, suggesting that research and development and entrepreneurship are substitutes. Corruption increases the opportunity cost of having a suboptimal entrepreneurship level, a finding that is in accord with the hypothesis that corruption can “grease the wheels” of commerce by speeding up bureaucratic processes. Countries with greater entrepreneurial capability suffer a higher growth penalty: the higher the ability of the marginal entrepreneur, the higher is the opportunity cost to the economy of not taking advantage of her talents.

Frederick L. Bates & Lloyd Bacon, The Community as a Social System, Soc. Forces 540 (3): 371-79 (1972).

Abstract: Some assumptions common to traditional theories of the community are examined: (1) that social system boundaries are geographically determinable; (2) that the units comprising communities are either humans or families; (3) that cooperation based on common goals underlies community organization. Suggested here is a conflict model of community structure and behavior that focuses upon interstitial groups linking elemental groups and complex organizations to form the community system. Within interstitial groups social exchange and coordination occurs between groups and organizations whose orientations are in potential conflict. This social exchange between elemental groups, a consequence of the division of labor, is accomplished within interstices containing conjunctive relationships, and it is here that conflict is managed, enabling the operation of complex social systems.

Terry L. Besser, Community Involvement and the Perception of Success among Small Business Operators in Small Towns, 37 J. Small Bus. Mgm’t. 16 (1999).

Abstract (from publisher): A study was conducted on whether the success among small businesses is linked to involvement in community activities in 1,008 small businesses in Iowa using multi-stage sampling. It was found that 77% of socially responsible businesses were more successful due to an enhanced level of loyalty among consumers and employees. Community involvement among businesses can then be considered not only as a significant tool for advancement but also for improving relationships among competing businesses.

Jeffrey C. Bridger & Albert E. Luloff, Toward an Interactional Approach to Sustainable Community Development, 15 J. Rural Stud. 377 (1999).

Abstract (from Elsevier): During the 1980s, the concept of sustainable development emerged as a popular solution to the problem of meeting the material needs of a rapidly growing population while minimizing environmental damage. Rather than pitting economic growth against environmental protection, proponents of sustainability focus on development which meets the needs of both present and future generations. This new legitimacy has prompted scholars to broaden the range of issues to which sustainability can be applied. A potentially important development along these lines has been the growing body of literature surrounding the concept of sustainable community development. In this paper, we delineate the central features of the sustainable community, assess obstacles to achieving sustainable communities, and present a conceptual framework for sustainable community development based on an interactional approach to community.

Ralph B. Brown & Albert B. Nylander, III, Community Leadership Structure: Differences between Rural Community Leaders' and Residents' Informational Networks, 29(9) J.  Cmt’y. Dev. Soc’y 71 (1998).

Abstract (from Routledge): A demarcation must exist between community leaders and non-leaders; leaders must have followers. Typically, community leaders are identified through specific attributes, positions, skills, etc. However, to create sustainable leadership and community development, communities need to consistently mobilize resources through collective action. To do this, an established system of information networks and a method for allocating organized efforts in the community need to be in place. Thus, besides functional leaders, communities also need a functional leadership structure-the sociology of community leadership. We examined the network density, size, and organizational memberships of identified community leaders and other residents in two rural Missouri communities. Leaders had larger, more dense, and diffuse networks, and more organizational memberships than other residents. The structure of community leadership is as important and real as the psychology of leadership and a key to developing sustainable community development strategies.

Tilman Brück, Wim Naudé & Philip Verwimp, Small Business, Entrepreneurship and Violent Conflict in Developing Countries, 24 J. Small Bus. & Entrepren. 161 (2011), available at http://ssrn.com/abstract=2125075.

 Abstract (adapted from authors): This study surveys the small but growing field of entrepreneurship and conflict in developing countries, which is also the topic of this special issue of the Journal of Small business and Entrepreneurship. The authors review recent contributions on how mass violent conflict such as civil war affects productive entrepreneurship and the authors discuss the contributions to this special issue. Furthermore, the authors define entrepreneurship and violent conflict and indicate how they may affect each other. The authors find that violent conflict has diverse impacts on entrepreneurs, firms and their investment and production processes, and that there are many ways to overcome the legacies of fighting. In fact, the post-war peace dividend — and, more generally, the reconstruction of markets and economies — critically depends on public policies promoting entrepreneurship. 

 Gabriela Calderon, Leonardo Iacovone & Laura Juarez, Opportunity Versus Necessity: Understanding the Heterogeneity of Female Micro-Entrepreneurs (World Bank Policy Research Working Paper No. 7636, 2016), available at http://ssrn.com/abstract=2764635.

Abstract (from authors): Entrepreneurs that voluntarily choose to start a business because they are able to identify a good business opportunity and act on it – opportunity entrepreneurs – might be different along various dimensions from those who are forced to become entrepreneurs because of lack of other alternatives – necessity entrepreneurs. To provide evidence on these differences, this paper exploits a unique data set covering a wide array of characteristics, including cognitive skills, non-cognitive skills and managerial practices, for a large sample of female entrepreneurs in Mexico. Descriptive results show that on average opportunity entrepreneurs have better performance and higher skills than necessity entrepreneurs. A discriminant analysis reveals that discrimination is difficult to achieve based on these observables, which suggests the existence of unobservables driving both the decision to become an opportunity entrepreneur and performance. Thus, an instrumental variables estimation is conducted, using state economic growth in the year the business was set up as an instrument for opportunity, to confirm that opportunity entrepreneurs have higher performance and better management practices.

Colleen Casey, Critical Connections: The Importance of Community-Based Organizations and Social Capital to Credit Access for Low-Wealth Entrepreneurs, 50 Urb. Aff. Rev. 366 (2014).

Abstract (adapted from author): This article studies the relationship between linking social capital and credit access for low-wealth entrepreneurs. The author argues that the support provided by community-based organizations facilitates critical linkages to credit access for low-wealth entrepreneurs. Data on nascent firms engaging in start-up efforts in the United States in 2005 from the Panel Survey of Entrepreneurial Dynamics II (PSED II) are used to test the effects of government, bank, and community-based organization supports. The results suggest that government support has a positive effect for entrepreneurs overall. However, among low-wealth entrepreneurs, support provided by community-based organizations significantly increases access to credit for start-up activities.

Rashmi Dyal-Chand & James V. Rowan, Developing Capabilities, not Entrepreneurs: A New Theory for Community Economic Development, 42 Hofstra L. Rev. 839 (2014).

Abstract (adapted from author): This article presents a contemporary and compelling American context in which entrepreneurship is not a good solution. Despite the enormous potential that entrepreneurship seems to hold for community economic development, it has thus far failed as a framework for widespread and reliable local economic development and poverty alleviation. The reasons for this failure are grounded both in theory and empirical data. This article takes up the theoretical question. It examines why entrepreneurship theory is a weak foundation for the work of community economic development practitioners. Arguing that the important work of these practitioners is best understood and measured using a theory grounded in poverty alleviation, this Article offers a modified version of the capabilities approach first developed by Nobel Prize-winning economist Amartya Sen. By relying on a theory that broadly conceptualizes poverty and social exclusion, community economic development practitioners can better evaluate the work that they are already doing. More importantly, the theory proposed here can and should guide practitioners to make straightforward changes with the potential for quite positive gains.

Mary Emery, Milan Wall & Don Macke, From Theory to Action: Energizing Entrepreneurship (E2), Strategies to Aid Distressed Communities Grow Their Own, 35(1) J. Cmt’y. Dev. Soc’y 82 (2004).

Abstract (from authors): The Heartland Center for Leadership Development and the Center for Rural Entrepreneurship propose a new approach to helping distressed communities build on their assets to grow their own jobs and businesses. Using lessons gleaned from case studies in rural areas, data collected on the nature of entrepreneurial activity, strategies emerging from the study of entrepreneurial communities, and research on community capacity building, the partners developed a flexible approach for encouraging entrepreneurial activity. The approach helps communities build on business and community assets through focused strategic interventions at the community, business, and organizational levels. This paper reports on preliminary results of how elements of our approach are at work in several communities where leaders engage community members in working toward a prosperous future.

Cornelia Butler Flora & Jan L. Flora, Developing Entrepreneurial Communities, 8 Soc. Prac. 197-207 (1990).

Focus on Community Economic Development, Susan R. Jones: Community Development Through Small Business Clinics, Metro. Corp. Couns. 48, (col. 1), (November 1999).

Thomas P. Gaunt, Communication, Social Networks, and Influence in Citizen Participation, 29 J.  Cmty. Dev. Soc’y 276-297 (1998).

T.H. Gindling & David Newhouse, Self-Employment in the Developing World, 56 World Dev. 313 (2014).

Abstract (by authors): This paper analyzes heterogeneity among the self-employed in 74 developing countries, representing two-thirds of the population of the developing world. After profiling how worker characteristics vary by employment status, it classifies self-employed workers outside agriculture as “successful” or “unsuccessful” entrepreneurs, based on two measures of success: whether the worker is an employer, and whether the worker resides in a non-poor household. Four main findings emerge. First, jobs exhibit a clear pecking order, with household income and worker education highest for employers, followed by wage and salaried employees, non-agricultural own-account workers, non-agricultural unpaid family workers, and finally agricultural workers. Second, a substantial minority of own-account workers reside in non-poor households, suggesting that their profits are often a secondary source of household income. Third, as per capita income increases across countries, the structure of employment shifts rapidly, first out of agriculture into unsuccessful non-agricultural self-employment, and then mainly into non-agricultural wage employment. Finally, roughly one-third of the unsuccessful entrepreneurs share similar characteristics with their successful counterparts, suggesting they have the potential to be successful but face constraints to growth. The authors conclude that although interventions such as access to credit can benefit a substantial portion of the self-employed, effectively targeting the minority of self-employed with higher growth potential is important, particularly in low-income contexts. The results also highlight the potential benefits of policies that facilitate shifts in the nature of work, first from agricultural labor into non-agricultural self-employment, and then into wage and salaried jobs.

William Graves, The Southern Culture of Risk Capital: the Path Dependence of Entrepreneurial Finance, 51 Southeastern Geographer 49 (2011).

Abstract (from author): The U.S. South has experienced remarkable job growth over the past quarter century; however few of these jobs were endogenously created. While the primary economic development strategy in the region has been to rely on branch plants to create locally-owned spillovers, recent efforts have shifted to the promotion of entrepreneurship via industrial district spillover (e.g., North Carolina's Research Triangle Park). Despite these efforts, rates of entrepreneurship remain low throughout the U.S. South. This research identifies elements of the dominant regional culture which contribute to this entrepreneurial weakness in North Carolina's Research Triangle Park. A series of interviews with regional venture capitalists were conducted to identify the role of culture in their industry. The significance of regional culture on this form of entrepreneurial finance is identified via inter-regional comparisons and surveys of entrepreneurs. Finally, the iterative effects of Southern culture are traced through the four phases of entrepreneurial finance.

Magnus Henrekson & Tino Sanandaji, Small Business Activity Does Not Measure Entrepreneurship, 111 Proc. Nat’l Acad. Sci. U.S. 1760 (2014).

Abstract (by authors): Entrepreneurship policy mainly aims to promote innovative Schumpeterian entrepreneurship. However, the rate of entrepreneurship is commonly proxied using quantity-based metrics, such as small business activity, the self-employment rate, or the number of startups. The authors argue that those metrics give rise to misleading inferences regarding high-impact Schumpeterian entrepreneurship. To unambiguously identify high-impact entrepreneurs we focus on self-made billionaires (in US dollars) who appear on Forbes Magazine’s list and who became wealthy by founding new firms. The authors identify 996 such billionaire entrepreneurs in 50 countries in 1996-2010, a systematic cross-country study of billionaire entrepreneurs. The rate of billionaire entrepreneurs correlates negatively with self-employment, small business ownership, and firm startup rates. Countries with higher income, higher trust, lower taxes, more venture capital investment, and lower regulatory burdens have higher billionaire entrepreneurship rates but less self-employment. Despite its limitations, the number of billionaire entrepreneurs appears to be a plausible cross-country measure of Schumpeterian entrepreneurship.

Roger Hopkins, Community Economic Development: A Question of Scale, 30 Cmty. Dev. J. 48-55 (1995).

X. N. Iraki & Wangethi Mwangi, Jogoo Kimakia: The Making of a Kenyan Entrepreneur (March 18, 2013), available at http://ssrn.com/abstract=2266965.

Abstract (by authors): Some people silently pass through this small planet unnoticed. Even the most sensitive radars do not notice their presence. Others, make a bang, and everyone notices them, admires them, envies them or at times hates them. The most noticeable ones are usually leaders, not just in politics but in their chosen area of endeavor. A few are noticed long after they have made their pilgrimage across this lonely planet. Jogoo Kimakia (Dedan Nduati Njoroge) made a mark when alive, and long after his departure. He made his mark in post independent Kenya through entrepreneurship targeting the transport business … Jogoo Kimakia was the trade name for a firm owned by Dedan Nduati Njoroge (1926-2008). The name originated from Kimakia forest where he burned charcoal as a young entrepreneur. His success in burning charcoal earned him the name Jogoo (cockerel) which in local language means a star. In his heyday, he owned 113 buses that plied different routes from Central Kenya to Rift Valley and beyond. Jogoo Kimakia is an example of a family owned business that made a great contribution to the Kenyan economy. This is in line with such businesses elsewhere. In the US for example it has been estimated that family businesses contribute 40-60% of the GDP and create over half of the new jobs (Shanker and Astrachan, 1996).

Nataliia Kravchenko et al., Information Externalities and Small Business Lending by Banks: A Comparison of Urban and Rural Counties in the U.S. (2011), available at http://ssrn.com/abstract=1968965.

Abstract (from authors): It is widely recognized that small business is not only an important source of employment but is the genesis of virtually all successful large enterprises. Given their size and characteristic opaqueness, Small and Medium Enterprises (SMEs) tend to be more financially constrained than large firms because of the lack of access to external financing from both banks and capital markets. Though building a relationship provides the loan officer more information about the individual entrepreneur, there are other factors that can influence the success or failure of an enterprise. The authors divide the entrepreneurial information available to bank loan officers into three segments: information about competition in the local banking market, information about success and failures of other SMEs in the local market, and information about how well other banks are performing in the local market. The primary purpose of this paper is to find proxies for this entrepreneurial information and to gauge its impact on bank lending in a geographical area. The authors then test to see how this proxies for this information impact the dollar volume of small business lending. This analysis uses county level data as the geographical area and controls for general economic conditions such as the level of income and the endowments of human capital. The paper confirms the importance of entrepreneurial information in influencing the level of SME lending by banks.

Norris Krueger, Markers of a Healthy Entrepreneurial Ecosystem (2012), available at http://ssrn.com/abstract=2056182.

Abstract (adapted from author): Is there a term used as much as “entrepreneurial ecosystem” without defining it, let alone measuring it? (Besides “entrepreneurial mindset”, of course.) However, just as it is absolutely critical to nurture a more entrepreneurial mindset, communities really need to nurture a more entrepreneurial local economy. That means an entrepreneurial ecosystem that works to support increasing quantity (and quality!) of entrepreneurial activity. What are the markers of a healthy ecosystem? This is a first ‘go’ to identify a reasonably comprehensive scorecard, crowdsourced via some great entrepreneurs, scholars & educators, that is intended to be developmental, not punitive.. please use it to spur discussion in your community!

Norris Krueger, Prescription for Opportunity: How Communities Can Create Potential for Entrepreneurs, Commissioned by the Small Business Foundation of America, working paper (1995).

Frank Lasch et al., Regional Determinants of ICT New Firm Formation, 40 Small Business Economics 671 (2013), available athttp://ssrn.com/abstract=2281104.

Abstract (adapted from authors): The role of regional determinants in new entrepreneurs’ location decisions is analyzed in the French information and communication technologies (ICT) sector. As the focus is on the emergence of this industry, the dataset includes every new ICT firm in France in the period 1993-2001. The author finds evidence for the positive effect of co-location with incumbent ICT firms and some effect of knowledge spillovers. The effects of agglomeration, entrepreneurial capital and human capital are mixed.

 

Adam Seth Litwin & Phillip H. Phan, Quality over Quantity: Reexamining the Link between Entrepreneurship and Job Creation, 66 Indus. & Lab. Rel. Rev. 833 (2013).

Abstract (by authors): Although much has been written about the quantity of jobs created by entrepreneurs, scholars have yet to examine the quality of these jobs. In this article, the authors begin to address this important issue by examining nearly 5,000 businesses that began operations in 2004. They investigate the extent to which nascent employers provide what many think of as quality jobs--those offering health care coverage and a retirement plan. The authors find that because of small scale, constrained resources, and protection from institutional pressures, start-up companies do not provide their employees with either of these proxies for job quality, and their likelihood of offering health or retirement benefits increases only marginally over their first six years of operation. The finding that entrepreneurs’ impressive record of job creation is not matched by a similarly impressive outcome with respect to job quality challenges policymakers to ensure that entrepreneurs are encouraged to create quality employment opportunities in the course of creating new businesses.

Ramana Nanda & Tarun Khanna, Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry, 19 J. Econ. & Mgmt. Strategy 991 (2010).

Abstract (from author): This study explores the importance of cross-border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and localentrepreneurs in India's software industry. We find that localentrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs-where getting leads to new businesses and accessing finance is more difficult. Our results provide micro-evidence consistent with a view that cross-border social networks play an important role in helpingentrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.

Nissim Otmazgin, Anime in the US: The Entrepreneurial Dimensions of Globalized Culture, 87 Pac. Aff. 53 (2014).

Abstract (by author): In the past two decades, the enthusiastic global reception of Japanese cultural exports has drawn wide academic attention. In the case of Japanese animation (“anime”), its penetration into the United States, the world’s biggest media market, has been described as owing greatly to the crucial role of fans as cultural agents, the deterritorializing effects of globalization, the domestication and heavy editing of anime to suit local tastes, and being part of the wider global flow of Japanese pop culture and “soft power.” Drawing on interviews with Japanese and American key personnel in the anime industry, field research and market surveys, this paper focuses on the organizational aspect of the anime market in the United States since the mid-1990s, with particular attention to the role of entrepreneurs, who are imperative for bridging organizational rigidities and cultural differences in global markets. The key argument presented is that entrepreneurship is a central feature in the process of transnational penetration, distribution, reproduction and consumption of cultural commodities and genres, which produce ever more complex and disjunctive economic, cultural and political orders.

Rob Pochert, The Fourth Commandment of Economic Development, Bellingham Bus. J. C14 (April 1, 2004).

Francesco Quatraro & Marco Vivarelli, Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries (IZA Discussion Paper, No. 7436, 2013), available at http://ssrn.com/abstract=2283551.

Abstract (by authors): The aim of this paper is to provide an updated survey of the "state of the art" in entrepreneurial studies, with a particular focus on developing countries (DCs). In particular, the same concept of "entrepreneurship" will be critically discussed, then moving to the institutional, macroeconomic and microeconomic conditions affecting the entry of new firms and the post-entry performance of newborn firms.

Nthati M. Rametse & Hetal Shah, Investigating Social Entrepreneurship in Developing Countries (2012), available at http://ssrn.com/abstract=2176557.

Abstract (by authors): Social entrepreneurship has drawn interest from global policy makers and social entrepreneurs to target developing countries. Generally, not-for-profit organizations, funded by government and donor grants have played a significant role in poverty alleviation.  The authors argue that, by applying entrepreneurial concepts, organizations can create social value, hence mitigate poverty. This is a theoretical paper that builds upon a multi-dimensional model in analyzing how three social enterprises from India and Kenya create social value to address social problems. The findings suggest that whilst the social mission is central to all these organizations, they also create social value through innovation and pro-activeness. Additionally, the cultural and political environmental contexts hinder their attempt to create social value. Building networks and partnerships to achieve social value creation is vital for these organizations. Policy makers should devise policies that would assist social enterprises to achieve development goals.

Tammi C. Redd, Entrepreneurial Climate: The Role of Online Social Networks in the Entrepreneurial Ecosystem, (George Washington University (GWU) International Council for Small Business (ICSB) Proceedings of 6th Annual Global Entrepreneurship Research and Policy Conference, 2015), available at http://ssrn.com/abstract=2700803.

Abstract (adapted from authors): There is a consensus in the literature that some geographic areas have a more positive entrepreneurial climate than others. Entrepreneurial climate encompasses the entrepreneur’s entire functional environment including opportunities, skills creation, and social support. The expansion of social support sources and networks beyond the local community is key to creating successful business ventures. The environment in which the entrepreneur lives and works creates a social context which often times will determine the number and types of relationships formed and in turn influences the types of opportunities recognized for exploitation and business creation.

Networking ability is the ability to develop contacts and relationships for the purpose of exchanging information or resources in an effort to further a career or business venture. This particular construct allows us to examine the entrepreneur’s capability in creating network ties, which may be difficult in geographically isolated areas where entrepreneurial climate may be perceived as negative. The expansion of social support sources and networks is key to creating successful business ventures. The purpose of this study is to examine whether the possession of online network ties is used as a substitute for entrepreneurial climate.

Paul D. Reynolds, Entrepreneurship in Developing Economies: The Bottom Billions and Business Creation, 8 Foundations and Trends in Entrepren. 141 (2012), available at http://ssrn.com/abstract=2137727.

Abstract (by author): Over 100 million of the 1.8 billion mid-life adults living on less than $15 a day are attempting to create new firms. Another 110 million are managing new ventures. This is almost half of the global total of 450 million individuals involved with 350 million start-ups and new ventures. For the poor, business creation provides more social and personal benefits than illegal and dangerous migration, criminal endeavors, or terrorism. Almost all of the business creation by the bottom billions occurs in developing countries, half are in Asia. The ventures initiated by the bottom billion are a significant minority of all firms expecting growth, exports, an impact on their markets, and in high tech sectors. Assessments based on multi-level modeling suggest that young adults, whether they are rich or poor, in countries with access to informal financing and an emphasis on traditional, rather than secular-rational, and self-expressive values are more likely to identify business opportunities and feel confident about their capacity to implement a new firm. Such entrepreneurial readiness is, in turn, associated with more business creation. Compared to the strong associations of informal institutions with business creation, formal institutions have very modest and idiosyncratic relationships. Expansion of access to secondary education and early stage financing may be the most effective routes to more firm creation among the bottom billion. 

Maureen Rogers & Roberta Ryan, The Triple Bottom Line for Sustainable Community Development, 6(3) Loc. Env’t 279 (2001). 

Abstract:  Rural communities in Australia are confronting a period of unprecedented change. They face declining commodity prices, the withdrawal of both public and private sector services, such as banks and hospitals, and the closure of small businesses. Their populations are in decline, with young people leaving for the larger regional centers. Many also face a declining resource base as soils become saline and water resources are sold to areas with higher unit returns. This paper presents a framework for sustainable community development based on emerging ideas of performance auditing and the development of progress indicators. The triple bottom line community audit approach is recast for the community level, measuring performance on improved community wellbeing, reduced environmental impact and increased economic vitality. Rural communities need to redefine their future. A sustainability focus offers a way forward.

Vernon D. Ryan, Community Development and the Ever Elusive Collectivity, 25 J.  Cmty. Dev. Soc’y 5-19 (1994).

Frederic E. Sautet, Local and Systemic Entrepreneurship: Solving the Puzzle of Entrepreneurship and Economic Development, 37 Entrepren. Theory & Prac. 387 (2013), available at http://ssrn.com/abstract=2234307.

Abstract (by author): Most economists agree that entrepreneurship has a positive effect on growth in developed countries. However, no evidence of this has been found in the case of developing countries. Rather, in many low‐income countries, one can observe productive entrepreneurship but little corresponding development. This is the puzzle of entrepreneurship and development. To solve this puzzle, we propose to look at the notions of local and systemic entrepreneurship. Using recent research on the mechanisms of social cooperation, as well as network and firm theories, we offer an explanation of why entrepreneurship has a limited impact on growth in developing countries.

 

Anke Schwittay, Designing Development: Humanitarian Design in the Financial Inclusion Assemblage, 37 PoLAR 29 (2014).

Abstract (by author): This article examines the emergence of a new group of development experts who tackle development problems in “innovative” ways: professional designers and the organizations that fund them. What has become known as humanitarian design is an instantiation of the afterlives of development, which redefines the problem of development as eliciting the needs of poor clients and creating mechanisms so that they can provide feedback on proposed solutions. This reframing results in hybrid forms of development knowledge that combine business and entrepreneurial objectives with concerns about designers’ moral responsibilities in the contemporary world. The use of humanitarian design in creating formal financial products and services for the poor is analyzed through the work of the Institute for Money, Technology, and Financial Inclusion.

Ron Shaffer, Achieving Sustainable Economic Development in Communities, J.   Cmty. Dev. Soc’y, 26(3), 145-154 (1995).

Ron Shaffer, Building Economically Viable Communities: A Role for Community Developers, 21 J.  Cmty. Dev. Soc’y 74-87 (1990).

So Young Sohn & Ann Sung Lee, Bayesian Network Analysis for the Dynamic Prediction of Early Stage Entrepreneurial Activity Index, 40 Expert Sys. with Applications 4003 (2013).

Abstract (adapted from authors): Entrepreneurship plays a critical role for the development and well-being of society. Illustration of its dynamic relationship with entrepreneurial attitudes and aspirations can provide a guideline for the cause of such activities. However, a time-lagged causal relationship among these concepts has not yet been established. In this study, the authors examine a dynamic relationship among early stage entrepreneurial attitudes, activities, and aspirations using Bayesian network (BN) analysis. In addition, they propose an early stage entrepreneurial activity index that can predict the percentage of both nascent entrepreneur and new business owner using the variables related to entrepreneurial attitudes of the previous year. This index, in turn, can be used to predict various aspects of entrepreneurial aspiration of the following year. The proposed index turns out to have very high prediction accuracy and is expected to provide effective policies to boost future entrepreneurial activity and aspiration.

Heather M. Stephens & Mark D. Partridge, Do Entrepreneurs Enhance Economic Growth in Lagging Regions?, 42 Growth & Change 431 (2011).

Abstract (adapted from author): Because support for entrepreneurship is often a core part of economic development strategies, the authors investigate whether it is important for growth in lagging, rural U.S. regions by focusing on Appalachia. While entrepreneurship has the advantage of being endogenous and 'home grown,' previous research suggests that remote rural regions may lack the agglomeration economies to benefit greatly from entrepreneurship. Using county-level data, this paper explores the relationship between entrepreneurship and economic growth, employing self-employment and small business data as proxies for entrepreneurship. It looks at the results for the Appalachian Regional Commission (ARC) region, using its immediate Appalachian neighbors outside the ARC region as a control group. Moreover, the authors also account for self-sorting by proprietors to locate in expanding regions. Despite strong barriers to growth in Appalachia, the empirical results suggest that self-employment is positively associated with employment and income growth, and that efforts to promote entrepreneurial capacity may be among the few economic development strategies with positive payoffs in remote regions.

Robert Strom, A Commentary on Entrepreneurship and Economic Development(2011), available at http://ssrn.com/abstract=1832677.

Abstract (from author): Interest in the study of entrepreneurship has flourished among scholars in recent years. This research has brought to light, among other things, the important role of entrepreneurship and innovation in economic growth. We know that innovative entrepreneurs - those who bring new products and processes to the market - are disproportionately responsible for the breakthrough or ‘disruptive’ innovations that change our daily lives and allow for the rapid improvement in standards of living that developed countries have experienced over the past century, and also disproportionately responsible for job growth in industrialized economies. While we have learned much about the effects of entrepreneurship, many of the mechanisms of change remain open for research.

The role of entrepreneurship in the economic growth of developing countries is certainly even more complex. Studies of this topic often look to history for answers, following the development path of industrialized or growing nations to find the ‘secret sauce’ for their success. Just as innovative entrepreneurial activity is vital to the ongoing growth of developed countries, innovation and entrepreneurship are essential components to a developing economy’s long-term growth. This is the topic of the recent UNU-WIDER book Entrepreneurship and Economic Development, edited by Wim Naudé. This article provides some perspective on this contribution.

Bram Timmermans & Jon Mikel Zabala-Iturriagagoitia, Coordinated Unbundling: A Way to Stimulate Entrepreneurship Through Public Procurement for Innovation, 40 Sci. & Pub. Pol’y 674 (2013).

Abstract (from publisher): Public procurement for innovation is a matter of using public demand to trigger innovation. Empirical studies have demonstrated that demand-based policy instruments can be considered to be a powerful tool in stimulating innovative processes among existing firms. However, the existing literature has not focused on the role this policy instrument can play in the promotion of (knowledge-intensive) entrepreneurship. This paper investigates this link in more detail and introduces the concept of coordinated unbundling as a strategy that can facilitate this purpose. We also present a framework for organizing public procurement for innovation around this unbundling strategy and provide a set of challenges that need to be addressed.

Maria Costanza Torri, Community Gender Entrepreneurship and Self-Help Groups: A Way Forward to Foster Social Capital and Truly Effective Forms of Participation Among Rural Poor Women?, 47 Community Dev. J. 58 (2012).

Abstract (from publisher): In the last few years, there has been a tendency to consider group approach in gender entrepreneurship and the creation of networks among women as an important factor to improve the conditions of rural women and enhance their development. Consequently, elements such as caste, class, ethnic and religious hierarchies that lead to diversities among the different groups of women have been underestimated by the schemes of non-governmental and governmental organizations. This paper examines GMCL (Gram Mooligai Limited Company), an Indian community-based enterprise led by women which is formed by a network of self-help groups. By individuating the main challenges, the paper argues that while the ‘group’ and social forms of entrepreneurship have inherent benefits, it must never be allowed to become the paradigm in developmental policies for women.

Kenneth P. Wilkinson, A Field Theory Perspective for Community Development Research, 37 Rural Soc. 43-52 (1972).

Abstract: This article conceptualizes community development within the general framework of social field theory. Community is defined as a generalizing, locality-oriented social action field. Community development refers to action which is purposively directed toward altering community field structure in a positive way. The focus of this approach is upon attempts by actors to increase the generalization potential of their interactional relationships. Implications of this definition of community development are shown by discussions of practical issues which confront community development workers: value, capability, responsibility, and commitment.

Kenneth P. Wilkinson, Phases and Roles in Community Action, 35 Rural Soc. 54-68 (1970).

Abstract:  This article provides a structural context for analysis of dynamic community action roles by conceptualizing community in interactional terms. Structure is viewed as the relationship among acts of actors in an action process. The community action process emerges from and serves to coordinate programs of locality-oriented action in various interest fields of the local society. Review of the literature on community action reveals five problems which routinely occur and which may be taken as base for classification of action roles. That include problems of (1) awareness, (2) organization, (3) decision, (4) resource mobilization, and (5) resource application.