Dilani Jayawarna

Entrepreneur motivations and life course

In this paper we propose two conceptual developments in understanding entrepreneur motivations and their effects. First, we argue that entrepreneur motivations develop dynamically in relation to career, household and business life courses. Second, we conceptualize how motivation and life courses develop interactively. We present an exploratory test of these ideas. In a sample of enterprise programme participants, we identify motivation profiles employing more robust cluster analyses than hitherto presented: our profiles are termed reluctant, convenience, economically driven, social, learning and earning, and prestige and control entrepreneurs. We then demonstrate statistical relationships between motivation profiles at a particular phase in the business life course (early establishment) and career and household life course factors. Motivations are also related to business resources, behaviour and performance. This initial confirmation of our conceptual claims suggests that further testing is warranted.

Resourcing new businesses: social networks, bootstrapping and firm performance

It is commonly reported that new businesses have difficulty in accessing finance. Such businesses can engage in ‘bootstrapping’ activities as a way of compensating for the lack of finance and other resources. This paper extends prior research on start-up finance by investigating how social networks can help new ventures to acquire bootstrapped resources and how these resources influence business performance. Based on theoretical considerations, the paper proposes a framework linking social networks and bootstrapping activities to the performance of firms during the early stages of operation. The model is tested using structural equation modelling. Results obtained from the longitudinal study based on a sample of 211 entrepreneurs indicate that social networks play a key role in the acquisition of bootstrapped resources. The study differentiates between the roles of strong ties, weak ties and brokerage in accessing three different types of bootstrapped resources: payment related, owner related and joint utilisation techniques. Furthermore, bootstrapped resources make a direct impact on firm performance as well as mediating the impact of social networks. It is suggested that the results of this study have significant implications for scholarly interest in business start-ups as well as those involved with supporting nascent entrepreneurs.

Training commitment and performance in manufacturing SMEs: Incidence, intensity and approaches

– This study sets out to examine management development activities within manufacturing SMEs, and their impact on performance. Unlike previous published studies that concentrate on formal training, this empirical analysis includes both formal and informal training. Performance is measured in terms of turnover, employee growth, and survival. It also includes consideration of the firms context on both training approach and performance., – Survey responses from 198 manufacturing SMEs in the UK are analysed using descriptive statistics, multiple regression analysis, and ANOVA., – Findings indicate that formal training is likely to be a targeted activity that contributes more significantly to performance than informal training. Also, the approach and influence of training are dependent on contingent factors. A model is proposed for a further detailed study of these contingent factors using a multivariate statistical analysis., – For SME managers, while they may prefer informal training approaches, they would benefit from seeking a formal training intervention that directly addresses their specific needs. For business support policy, support options need to be flexible enough to provide idiosyncratic solutions. Generic training solutions are not welcomed by SMEs, and are unlikely to provide significant performance benefits. A greater understanding is required of the variety of contingent variables that moderates the relationship between choices of training approach, and between training and performance.

The financing of disadvantaged entrepreneurs: Are enterprise programmes overcoming the finance gap?

Purpose – This paper asks whether enterprise programmes are overcoming the finance gap faced by their disadvantaged participants. Specifically, the paper seeks to assessthe level of finance invested by participants on a leading UK enterprise programme, the New Entrepreneur Scholarships (NES).Design/methodology/approach – The paper draws on a postal and e‐survey of participants on a leading UK enterprise programme, reporting on 472 respondents. Three capital structure variables (personal investment, external private investment and grants) are employed to analyse the importance of various types of funding in NES businesses. These figures are compared with published data about use of different types of finance, including principal sources of funding, in UK start‐ups. Descriptive statistics of perceptions of under‐capitalisation, and needs for additional funding, are also reported.Findings – NES Scholars make significantly lower start‐up investment than is typical in UK small businesses, particularly in terms...

Entrepreneurial potential: The role of human and cultural capitals

Empirical evidence for links between human capital and entrepreneurship potential is equivocal despite a wide range of studies. This research draws on prospective longitudinal data from the National Child Development Study (NCDS) to offer new theoretical perspectives and empirical evidence on the human capital predictors that drive entrepreneurship. The results suggest that start-up is more likely for those who demonstrate higher levels of analytical and creative abilities in childhood, benefit from a supportive family background, invest in their human capital through diverse and longer work experience and have accrued a solid basic education, albeit not strongly credentialed. This article contributes to a better understanding of human capital acquisition during the unfolding entrepreneurial life-course. Mediators and moderators of the relationship between education, human capital and entrepreneurship are also identified by accentuating the importance of family processes. In doing so, this study bridges the human capital and cultural capital literatures that have tended to evolve on separate tracks.

Promoting sustainable development: the role of entrepreneurship education

A new educational approach to sustainable development is emerging in the entrepreneurship literature. However, because business schools encourage a ‘profit-first mentality’, critics question their ability to deliver sustainability-related education programmes. This article adapts the theory of planned behaviour to examine attitudes to an entrepreneurial form of sustainability education. The relationship between nascent entrepreneurs’ intentions to exploit learning and the extent of a profit-first mentality is examined. The study utilises data from 257 nascent entrepreneurs participating in a business start-up programme. Structural equation modelling is used to test a series of hypotheses which examine links between sustainability education and nascent entrepreneurs’ attitudes. The results indicate a strong relationship between perception of learning benefits and intentions of nascent entrepreneurs to exploit those benefits. Although a profit-first mentality is negatively related to perceptions of benefit, learning itself is not affected. The results have implications for research, policy and the practice of entrepreneurship education.

New business creation and regional development: Enhancing resource acquisition in areas of social deprivation.

Over 7 years, the UK-Government funded an entrepreneurship scholarship scheme in the most deprived regions of England. This study examines how, for 211 of these nascent entrepreneurs, bootstrapping compensated for their inability to obtain debt or equity funding. Results show that social capital (strong, weak and brokerage ties) is important for access to bootstrapped resources. While human capital, including previous business experience and financial skills, are linked to joint-utilisation approaches to bootstrapping, higher financial investment is linked to owner- and payment-related approaches. A key outcome for developing appropriate regional policy is that ‘brokers’ provide a link between socially disadvantaged entrepreneurs and external resources.

Life course pathways to business start-up

We explore how socially embedded life courses of individuals within Britain affect the resources they have available and their capacity to apply those resources to start-up. We propose that there will be common pathways to entrepreneurship from privileged resource ownership and test our propositions by modelling a specific life course framework, based on class and gender. We operationalize our model employing 18 waves of the British Household Panel Survey and event history random effect logistic regression modelling. Our hypotheses receive broad support. Business start-up in Britain is primarily made from privileged class backgrounds that enable resource acquisition and are a means of reproducing or defending prosperity. The poor avoid entrepreneurship except when low household income threatens further downward mobility and entrepreneurship is a more attractive option. We find that gendered childcare responsibilities disrupt class-based pathways to entrepreneurship. We interpret the implications of this study for understanding entrepreneurship and society and suggest research directions.

Investigating the Social Capital and Resource Acquisition of Entrepreneurs Residing in Deprived Areas of England

Enterprise policy in England has focused extensively on funding and training aspiring entrepreneurs residing in deprived areas. These policy initiatives have been directed at increasing the capabilities of entrepreneurs residing in deprived areas without knowing about their social capital and access to resources. This study is based on a survey of entrepreneurs that have completed the New Entrepreneurship Scholarship training programme across the nine regions of England. The findings suggest that social capital helps explain the acquisition of resources entrepreneurs residing in deprived areas need to develop a new venture. However, there seems to be an overreliance on bonding ties for resource acquisition. Too much bonding can lead to redundant resources and ‘getting by’ and may limit growth. In light of these findings several recommendations are developed for the coalition governments Local Enterprise Partnerships policy and the future funding of entrepreneurship initiatives in deprived areas.

Structures of Exclusion from Enterprise Finance

Business start-up is promoted to the labour-market disadvantaged internationally. This policy increasingly draws on the concept of social inclusion. In this paper we define ‘enterprise inclusion’ policy as situating the chance to start a viable business as a right and supporting the multiply disadvantaged to overcome strong barriers to enterprise. We draw on the resource-based view of entrepreneurship to argue that viable business ownership is contingent on access to resources. We explore how access to a primary business resource—start-up finance—relates to intersecting social disadvantages. We report a complex pattern of financial exclusion. Rather than supporting the concept of interconnecting yet separate social divisions, as argued under social inclusion theory, this supports a class-based interpretation of exclusion from enterprise finance. New research and policy agendas are outlined.