Broaden the Pathway to Inclusive Entrepreneurship: A Transaction Cost Proposition

Du Jian, Lu Jie () and Jiang Yanbing
Additional contact information
Du Jian: School of Management, Zhejiang University, Hangzhou, Zhejiang, China
Lu Jie: School of Management, Zhejiang University, Hangzhou, Zhejiang, China
Jiang Yanbing: School of Accounting, Zhejiang University of Finance and Economics, Hangzhou, Zhejiang, China

Entrepreneurship Research Journal, 2023, vol. 13, issue 4, 1169-1206

Abstract: Since entrepreneurship was conceptualised as a panacea for achieving inclusive growth in the “base of the pyramid” (BoP) regions, various ways have been explored to leverage this powerful tool, such as helping potential entrepreneurs build the resource base and capabilities. However, given the severe resources constraints in the BoP regions, such a goal is difficult to achieve. Besides, due to the high demands on personal competence, only a few people can benefit from this method, which fails to solve the problem of social exclusion in the BoP regions. Therefore, we aim to find a better way to leverage entrepreneurship to tackle the problem of the BoP regions by calling for more attention to the inclusiveness of entrepreneurship. Based on data of inclusive entrepreneurs in Zhejiang, China, we construct a three-stage model for inclusive entrepreneurship. We also apply Transaction Cost Economics to look for determinants that foster inclusive entrepreneurship and validate our main assertion that decreasing transaction cost significantly helps to increase the inclusiveness of entrepreneurship, and different phases of inclusive entrepreneurship (i.e., opportunity inclusiveness, participation inclusiveness, and sharing inclusiveness) are influenced by different sets of determinants of transaction costs.

Keywords: entrepreneurship; inclusive entrepreneurship; transaction cost; base of the pyramid; BOP (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/erj-2020-0077 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:erjour:v:13:y:2023:i:4:p:1169-1206:n:13

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/erj/html

DOI: 10.1515/erj-2020-0077

Access Statistics for this article

Entrepreneurship Research Journal is currently edited by Chandra S. Mishra and Ramona K. Zachary

More articles in Entrepreneurship Research Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().