NECESSITY VERSUS OPPORTUNITY MOTIVATION: NASCENT FIRM PERFORMANCE IN CARIBBEAN SMALL ISLAND DEVELOPING STATES

Preeya Mohan

14 citations0/0 files storedJournal of Developmental Entrepreneurship

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Entrepreneurship Studies and Influences Firm Innovation and Growth Migration, Ethnicity, and Economy

Abstract

This paper investigates entry motivation of nascent entrepreneurs and their post-entry performance in Caribbean Small Island Developing States (SIDS). The study estimates the effect of being a nascent opportunity/necessity entrepreneur on three business-performance variables — firm growth, exports and innovation using regression analysis and control for time, country and sector effects. The data come from the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) for Barbados, Jamaica and Trinidad and Tobago. The results show that opportunity versus necessity entrepreneurial start-up motivation tends to be related to a superior post-entry firm performance. In addition, personal and firm characteristics influence post-entry firm performance including gender, education, household income, number of owners, firm age and number of workers at start-up.

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References

1993Human Capital 2017The theory of economic development 1992Entry, Exit, and firm Dynamics in Long Run Equilibrium 1956Barriers to New Competition 1989Entry and Exit Decisions under Uncertainty 1994Initial human and financial capital as predictors of new venture performance 1997Survival of the Fittest? Entrepreneurial Human Capital and the Persistence of Underperforming Firms 1989Some Empirical Aspects of Entrepreneurship

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