Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs

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 en...

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Main Authors:	Calderon, Gabriela, Iacovone, Leonardo, Juarez, Laura
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES
Online Access:	http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs http://hdl.handle.net/10986/24210

id	okr-10986-24210
recordtype	oai_dc
spelling	okr-10986-242102021-04-23T14:04:20Z Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs Calderon, Gabriela Iacovone, Leonardo Juarez, Laura OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES 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. 2016-05-04T17:51:16Z 2016-05-04T17:51:16Z 2016-04 Working Paper http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs http://hdl.handle.net/10986/24210 English en_US Policy Research Working Paper;No. 7636 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES
spellingShingle	OPEN ACCESS RESULT EMPLOYMENT FIRMS GLOBAL ECONOMY BUSINESSES BUSINESS EXPENSES RESULTS SEARCH PARTNERS SALES PERFORMANCE EMAIL ADDRESS COMPETITIVE ADVANTAGE COMPETITIVENESS PRODUCTIVITY NETWORKS INFORMATION ENTREPRENEURS SELLING MARKETING FIRM PERFORMANCE MEASURES ENTERPRISE IMPACTS ENTREPRENEURSHIP ENTREPRENEUR BUSINESS GROWTH ENTERPRISES BUSINESS PERFORMANCE MARKET PLANNING GROWTH POTENTIAL QUALITY COMMERCIAL ACTIVITY GRANTS BUSINESS OPPORTUNITY BUSINESS TRAINING MICROENTERPRISES Calderon, Gabriela Iacovone, Leonardo Juarez, Laura Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper;No. 7636
description	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.
format	Working Paper
author	Calderon, Gabriela Iacovone, Leonardo Juarez, Laura
author_facet	Calderon, Gabriela Iacovone, Leonardo Juarez, Laura
author_sort	Calderon, Gabriela
title	Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
title_short	Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
title_full	Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
title_fullStr	Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
title_full_unstemmed	Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
title_sort	opportunity versus necessity : understanding the heterogeneity of female micro-entrepreneurs
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/04/26218482/opportunity-versus-necessity-understanding-heterogeneity-female-micro-entrepreneurs http://hdl.handle.net/10986/24210
_version_	1764455937814298624

Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs

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