Volume 11, Issue 4

Building upon institutional economics, we examine how social progress orientation (SPO) affects inclusive growth through innovative and opportunity entrepreneurship. Hypotheses about civic activism, voluntary spirit, and the inclusion of minorities as proxies of SPO that affect entrepreneurship directly and inclusive growth indirectly have been suggested. Using unbalanced panel data of 132 observations (63 countries) and the three-stage least-squares method (3SLS), we provide empirical evidence that these three measures of SPO significantly affect innovative and opportunity entrepreneurship. Interestingly, our endogenous measures of entrepreneurial activity have served to explain inclusive growth, which is observed through poverty reduction across countries. Public policies should focus on social values oriented to progress in order to stimulate valuable entrepreneurial activity and hence facilitate economic development that also embraces vulnerable communities.

This article is the first one that considers a model of the choice between the different types of crowdfunding, which contains elements of the asymmetric information approach and behavioral finance (overconfident entrepreneurs). The model provides several implications, most of which have not yet been tested. Our model predicts that equity-based crowdfunding is more profitable than reward-based crowdfunding when an entrepreneur is overconfident. This is because the entrepreneur learns from the sale of shares before making production decisions. The model also predicts that an equilibrium can exist where some firms use equity-based crowdfunding, which contrasts the results of traditional theories (which have rational managers), for example, the pecking-order theory. It also contrasts traditional behavioral finance literature (e. g. Fairchild, R. 2005. “The Effect of Managerial Overconfidence, Asymmetric Information, and Moral Hazard on Capital Structure Decisions.” ICFAI Journal of Behavioral Finance 2 (4).) where equity is not issued in equilibrium.

Patents are no longer merely protective; other factors are becoming prominent in explaining when start-ups patent their inventions. This study uses data from 220 start-ups from different industries to evaluate the role of size, location, collaboration partners and financial means in patenting activity. Our results show a quadratic effect of size on patenting likelihood for start-ups, and patenting level reaches a tipping point for medium-sized start-ups. The findings also show that patenting likelihood is higher, regardless of the industry, when: (i) start-ups are located in international clusters or near other start-ups; (ii) start-ups collaborate with specialized research institutes; and (iii) start-ups are financed through crowdfunding campaigns. Location in co-working spaces seems, however, to be associated with lower patenting likelihood. These results help to illustrate the context in which start-ups value patents as protection instruments vs. as strategic resources to achieve other goals, such as reputation, or access to networks or financial capital. Analysing the reasons why start-ups patent is crucial due to the growing relevance these companies gain when they introduce innovations in the current economy.

Studies with contradictory results have been published on the relationship between personality and entrepreneurial intentions. This paper examines the role of personality traits and demographic factors in the formation of business start-up intention, using a moderated mediation model derived from the theory of planned behaviour. Data were collected from 324 final year MBA students using a structured survey instrument and analysed with single and multi-group structural equation modelling (SEM). Innovativeness, risk propensity and stress tolerance had small but significant indirect effects on entrepreneurial intentions; these effects were mediated by attitudes to entrepreneurship and perceived behavioural control. Need for autonomy and stress tolerance were not significant, neither was family background nor work experience. Observation of small, indirect personality effects suggests some resolution to the contradictory results observed until now; helps career counsellors and university selection panels to identify candidates with the potential to become entrepreneurs; and provides support for calls for policy makers and university administrators to develop educational environments and socio-political infrastructure that provides opportunities for students to exploit their creative and risk-taking traits and develop positive attitudes to entrepreneurship.

The importance of external environmental uncertainty and the size of the organization has long been a topic of much debate, but the findings remain mixed. In addition, few studies have investigated the effects of the fit between factors on an organizational innovation activity. The present study aims to examine the effects of the fit between SMEs’ size and environmental uncertainty on their innovation activity. Building on literature of organizational innovation and environments, a research model is developed and tested with 232 samples. Results indicate that only firm size affects SMEs’ innovation activity and the fit between firm size and environmental uncertainty has a positive effect on the innovation activity. The findings imply that SMEs should place particular emphasis on practices that can strengthen the fit between size and environmental turbulence so as to facilitate their innovation activity. Limitations and suggestions for future studies are presented.

Social entrepreneurship is a business approach in which entrepreneurs focus on social problems. Social entrepreneurs generate new initiatives, provide social plans and marshal resources with regard to social problems. This study examines the opportunity recognition behavior and readiness of youth for social entrepreneurship as a career choice. The topic is not arranged systematically; hence, this research aims to organize the topic by combining opportunity recognition behavior and willingness of youth toward social entrepreneurship through comprehensive theoretical modeling and empirical testing. The study hypothesized that social capital, social empathy, normative institutional environment, formal education, and training may enhance opportunity recognition behavior, whereas the regulative institutional environment may harm youth opportunity recognition behavior. This study also hypothesized that opportunity recognition behavior can lead to the readiness of youth for social entrepreneurship. Non-probability purposive sampling technique has been used due to selective participation. The data for this research have been collected from Indian, Pakistani, and Chinese youth. A total of 750 questionnaires were distributed among respondents, and 555 were returned for further analysis. The findings conclude that Social Empathy and Education and Training within formal and informal environments hold strong influence while defining individuals’ Social Entrepreneurial Intentions.