Effects of entrepreneurial heterogeneity within necessity- and opportunity-based entrepreneurs on business performance

Eriko Naiki and Yuta Ogane ()
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Eriko Naiki: Doshisha University
Yuta Ogane: Nanzan University

International Entrepreneurship and Management Journal, 2024, vol. 20, issue 2, No 11, 807-840

Abstract: Abstract This paper examines whether and how heterogeneity within necessity- and opportunity-based entrepreneur groups affects business performance using a survey of 21,532 new firms in Japan. The major findings are as follows. First, business performance is not homogeneous among either necessity- or opportunity-based entrepreneurs. Second, the existing theory that necessity-based entrepreneurs tend to show poorer performance than opportunity-based entrepreneurs does not necessarily hold when considering heterogeneity within the groups. Specifically, among some types of necessity- and opportunity-based entrepreneurs, necessity-based entrepreneurs can even exhibit better performance than opportunity-based entrepreneurs.

Keywords: Necessity-based entrepreneurs; Opportunity-based entrepreneurs; Business performance (search for similar items in EconPapers)
JEL-codes: L26 M13 M21 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11365-023-00903-z

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