EconPapers    
Economics at your fingertips  
 

Entrepreneurial Motivation and Business Performance: Evidence from a French Microfinance Institution

Renaud Bourlès () and Anastasia Cozarenco ()
Additional contact information
Anastasia Cozarenco: Montpellier Business School, Montpellier Research in Management, and Centre for European Research in Microfinance (CERMi)

No 1701, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This article examines the link between entrepreneurial motivation and business performance in the French microfinance context. Using hand-collected data on business microcredits from a Microfinance Institution (MFI), we provide an indirect measure of entrepreneurial success through loan repayment performance. Controlling for the endogeneity of entrepreneurial motivation in a bivariate probit model, we find that "necessity entrepreneurs" are more likely to have difficulty repaying their microcredits than "opportunity entrepreneurs". However, type of motivation does not appear to make a difference to business survival. We build a stylized model to develop formal arguments supporting this outcome. We test for the robustness of our results using parametric duration models, and show that necessity entrepreneurs experience difficulties in loan repayment earlier than their opportunity counterparts, corroborating our initial findings.

Keywords: opportunity and necessity entrepreneurs; business microcredit; loan repayment; business survival (search for similar items in EconPapers)
JEL-codes: C30 C41 G21 L26 M13 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2017-01
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-ent, nep-eur and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2017_-_nr_01.pdf (application/pdf)

Related works:
Journal Article: Entrepreneurial motivation and business performance: evidence from a French Microfinance Institution (2018) Downloads
Working Paper: Entrepreneurial Motivation and Business Performance: Evidence from a French Microfinance Institution (2018) Downloads
Working Paper: Entrepreneurial Motivation and Business Performance: Evidence from a French Microfinance Institution (2017) Downloads
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:aim:wpaimx:1701

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().

 
Page updated 2024-05-21
Handle: RePEc:aim:wpaimx:1701