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 entrepre...

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Main Authors:	Calderon, Gabriela, Iacovone, Leonardo, Juarez, Laura
Format:	Journal Article
Language:	English
Published:	Published by Oxford University Press on behalf of the World Bank 2019
Subjects:	FEMALE ENTREPRENEURS MICROENTERPRISES MANAGEMENT QUALITY
Online Access:	http://documents.worldbank.org/curated/en/735801565608264531/Opportunity-versus-Necessity-Understanding-the-Heterogeneity-of-Female-Micro-Entrepreneurs http://hdl.handle.net/10986/32234

id	okr-10986-32234
recordtype	oai_dc
spelling	okr-10986-322342021-05-25T10:54:42Z Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs Calderon, Gabriela Iacovone, Leonardo Juarez, Laura FEMALE ENTREPRENEURS MICROENTERPRISES MANAGEMENT QUALITY 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 article exploits a unique data set covering a wide array of characteristics, including cognitive skills, noncognitive 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. 2019-08-13T18:28:57Z 2019-08-13T18:28:57Z 2016-04-01 Journal Article http://documents.worldbank.org/curated/en/735801565608264531/Opportunity-versus-Necessity-Understanding-the-Heterogeneity-of-Female-Micro-Entrepreneurs World Bank Economic Review http://hdl.handle.net/10986/32234 English CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research 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
topic	FEMALE ENTREPRENEURS MICROENTERPRISES MANAGEMENT QUALITY
spellingShingle	FEMALE ENTREPRENEURS MICROENTERPRISES MANAGEMENT QUALITY Calderon, Gabriela Iacovone, Leonardo Juarez, Laura Opportunity versus Necessity : Understanding the Heterogeneity of Female Micro-Entrepreneurs
geographic_facet	Latin America & Caribbean Mexico
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 article exploits a unique data set covering a wide array of characteristics, including cognitive skills, noncognitive 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	Journal Article
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	Published by Oxford University Press on behalf of the World Bank
publishDate	2019
url	http://documents.worldbank.org/curated/en/735801565608264531/Opportunity-versus-Necessity-Understanding-the-Heterogeneity-of-Female-Micro-Entrepreneurs http://hdl.handle.net/10986/32234
_version_	1764476093616619520

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

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