nep-ent New Economics Papers
on Entrepreneurship
Issue of 2017‒09‒17
fourteen papers chosen by
Marcus Dejardin
Université de Namur

  1. Badge of Honor or Scarlet Letter? Unpacking Investors’ Judgment of Entrepreneurs’ Past Failure By Diego Zunino; Mirjam (C.M.) van Praag; Gary Dushnitsky
  2. Satisfaction and Self-Employment: Do Women Benefit More from Being Their Own Boss? By Karen Maguire; John V. Winters
  3. Media and Occupational Choice By Alexander Konon; Alexander Kritikos
  4. TV and entrepreneurship By Slavtchev, Viktor; Wyrwich, Michael
  5. Microfoundations and the birth of a firm's identity: How entrepreneurs deal with routines to entrench their start-up in an ecosystem By Olga Kokshagina; Sophie Hooge; Emilie Canet
  6. Measuring Entrepreneurial Ecosystems By F.C. Stam
  7. Tax Evasion, Firm Dynamics and Growth By Emmanuele Bobbio
  8. Stimulating youth entrepreneurship in the public sector's organizations By Tirziu, Andreea-Maria; Vrabie, Catalin
  9. Effectiveness of tax incentives for venture capital and business angels to foster the investment of SMEs and start-ups By Institute for Advanced Studies (IHS)
  10. How Networking and Social Embeddedness Make Entrepreneurs Successful in Medium-Sized Cities of Peripheral Areas: A Location Case-Study in Brittany (France) By Guy Baudelle; Gerhard Krauss; Clément Marinos
  11. Toward a Matching Approach to Support CBM (Collaborative Business Model) Processes between Regional Entrepreneurs within the RIS3 Policy By Jérémie Faham; Maxime Daniel; Jérémy Legardeur
  12. Inclusive local development: A strategy for Heraklion, Greece By Benner, Maximilian; Buzin, Johannes; Hoffmann, Jakob; Taifour, Ahmad Azzam
  13. Les déterminants de l’entrepreneuriat féminin à Dakar Sénégal By Dia, Ibrahima; Bonnet, Jean; Abdesselam, Rafik
  14. Les motivations des femmes entrepreneures du secteur informel à Dakar (Sénégal) By DIA, Ibrahima

  1. By: Diego Zunino (Copenhagen Business School); Mirjam (C.M.) van Praag (Copenhagen Business School, University of Amsterdam, CEPR, IZA; Tinbergen Institute, The Netherlands); Gary Dushnitsky (London Business School)
    Abstract: Research shows that most ventures fail, yet it has devoted limited attention to the consequences of entrepreneurs’ past failure for investors’ decisions. Our motivating insight is that failure can be due to bad luck, lack of skill or both. Therefore, failure conveys ambiguous information about skill. We predict that investors will discount entrepreneurs that experienced past failure. However, in the presence of a signal of skill, the magnitude of the failure discount is reduced. We test our predictions using an online experiment where respondents are potential investors in seed stage ventures via equity crowdfunding. Respondents evaluate a realistic investment opportunity in a between-subjects design, where we decompose the effect of failure into luck and skill. Our results indicate that investors discount entrepreneurs who have experienced failure. Past failure in the presence of a signal of skill, however, is not discounted. The findings indicate no discount of failure based on the “failed†label only. Overall, our analysis sheds light on the rationality of investors. In a world where entrepreneurial failure is prevalent, we find that investors are sensitive to its core drivers: luck and skill.
    Keywords: entrepreneur; venture; failure; luck; skill; investors; crowdfunding; experiment
    JEL: G32 G24 L26
    Date: 2017–09–11
  2. By: Karen Maguire (Oklahoma State University); John V. Winters (Oklahoma State University)
    Abstract: This paper uses individual self-reported life satisfaction data to analyze the relationship between self-employment and subjective well-being by gender and race. We document substantial heterogeneity, with women appearing to benefit the most from self-employment. Self-employed women have significantly higher rates of being very satisfied relative to both traditionally employed women and self-employed men. We also find that the self-employed have higher rates of dissatisfaction, and this adverse relationship with self-employment is most pronounced for minorities. These nuanced findings broaden our understanding of the relationship between self-employment and subjective well-being and have important implications for both researchers and policymakers.
    Keywords: Well-being, Entrepreneurship, Self-Employment, Gender, Race
    JEL: I10 I31 J2
    Date: 2017–08
  3. By: Alexander Konon; Alexander Kritikos
    Abstract: We address the question of whether media influences occupational choices. To theoretically examine media effects, we construct a dynamic Bayesian occupational choice model with sequential decisions under ambiguity due to imperfect information. We show that sufficiently intensive positive media articles and reports about entrepreneurship increase the probability of self-employment and decrease the probability of wage work. To test our model, we use an instrumental variable approach to identify causal media effects using US micro data and a country-level macro panel with two different media variables. We find that an increase in positive media articles and reports about entrepreneurs generates effects on choice probabilities that are consistent with our model.
    Keywords: Media, occupational choice, Bayesian learning, ambiguity aversion
    JEL: D81 D83 J62 L26
    Date: 2017
  4. By: Slavtchev, Viktor; Wyrwich, Michael
    Abstract: We empirically analyse whether television (TV) can influence entrepreneurial identity and incidence. To identify causal effects, we utilise a quasi-natural experiment setting. During the division of Germany after WWII into West Germany with a free-market economy and the socialistic East Germany with centrally-planned economy, some East German regions had access to West German public TV that - differently from the East German TV - transmitted images, values, attitudes and view of life compatible with the free-market economy principles and supportive of entrepreneurship. We show that during the 40 years of socialistic regime in East Germany entrepreneurship was highly regulated and virtually impossible and that the prevalent formal and informal institutions broke the traditional ties linking entrepreneurship to the characteristics of individuals so that there were hardly any differences in the levels and development of entrepreneurship between East German regions with and without West German TV signal. Using both, regional and individual level data, we show then that, for the period after the Unification in 1990 which made starting an own business in East Germany, possible again, entrepreneurship incidence is higher among the residents of East German regions that had access to West German public TV, indicating that TV can, while transmitting specific images, values, attitudes and view of life, directly impact on the entrepreneurial mindset of individuals. Moreover, we find that young individuals born after 1980 in East German households that had access to West German TV are also more entrepreneurial. These findings point to second-order effects due to inter-personal and inter-generational transmission, a mechanism that can cause persistent differences in the entrepreneurship incidence across (geographically defined) population groups.
    Keywords: entrepreneurship,TV,culture,occupational choice,institutions
    JEL: D02 D03 J24 L26 M13 O30 P20 P30 Z10
    Date: 2017
  5. By: Olga Kokshagina (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Sophie Hooge (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Emilie Canet (MLab - DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: How to shape successful ventures; ensure that an entrepreneur’s journey will lead to create viable businesses over time? It is argued that organizations are built on habits and routines in place that are defined as dispositions to follow certain behavioral tendencies motivated by appropriate contexts and environments (Abell et al., 2007; Becker, 2012; Cohen, 2012; Nelson & Sidney, 1982). Prior work stressed that the individual identity, founders’ habits influence the emergence of organizational routines. Bryant (2014) argues that founders can better manage the initial imprinting process thus enhancing a venture’s capacity to adapt. Besides the founders’ identity and their imprinting memories, ventures’ identity is influenced by its corresponding ecosystem. For instance, to promote and ensure firms’ creation, local ecosystems create incubators, co-working spaces oriented to support the entrepreneurship activities. The principal objective is to help premature companies to grow and become independent, strengthen their offer, help them launching their business. For instance, in Europe, the incubation and mentoring offer drastically increased over the last years aiming to produce successful firms that will leave the incubator financially viable and independent. How do start-ups make use of these structures to actually build their identity, shape their routines? With this purpose our research seeks to understand which role the corresponding ecosystems play on the start up’s collective identity creation, definition of its routines and whether and how the ecosystem along with founders ‘strengthen’ ventures identity.
    Keywords: Firm's identity, routines, start-up, entrepreneurship, innovation
    Date: 2016–07–07
  6. By: F.C. Stam
    Abstract: How can entrepreneurial ecosystems and productive entrepreneurship can be traced empirically and how is entrepreneurship related to entrepreneurial ecosystems. The analyses in this chapter show the value of taking a systems view on the context of entrepreneurship. We measure entrepreneurial ecosystem elements and use these to compose an entrepreneurial ecosystem index. Next, we measure the output of entrepreneurial ecosystems with different indicators of high-growth firms. We use the 12 provinces of the Netherlands as a test case for measuring the entrepreneurial ecosystem elements, composing an entrepreneurial ecosystem index and relate this to entrepreneurial outputs. The prevalence of high-growth firms relates to the overall value of the entrepreneurial ecosystem index, but not to individual elements of the entrepreneurial ecosystem. The model fit increases once we introduce a multiplicative index and a non-linear model. By measuring entrepreneurial ecosystems and their outputs in this way we move from the ecosystem metaphor to a complex system model of the entrepreneurial economy.
    Keywords: Entrepreneurial ecosystem, complex systems, entrepreneurial ecosystem index, entrepreneurship, regional development
    Date: 2017–08
  7. By: Emmanuele Bobbio (Bank of Italy)
    Abstract: Italy's growth performance has been lacklustre in the last two decades. The economy has low R&D intensity; firms are smaller and less likely to grow or exit than firms in other advanced countries; the shadow economy is large. I show how these features arise simultaneously in a Schumpeterian growth model with heterogeneous firms where the tax auditing probability increases with firm size. Tax evasion confers a cost advantage over competitors. In equilibrium, small firms invest less in innovation because growing entails a (shadow) cost of fiscal regularization. Unfair competition forces other firms to lower the mark-up they charge for their new products, reducing the incentive to innovate. Market selection is hampered, further lowering the aggregate growth rate along the extensive margin. I calibrate the model on Italian firm-level data for the period 1995-2006 and find that enforcing taxes would have increased the long-run growth rate from 0.9% to 1.1%. The market share of high type firms would have been 8 percentage points higher and average firm size 25% higher. Also, I find that lowering the tax burden can have a significant impact on growth when the shadow economy is large, while the effect is negligible when taxes are enforced.
    Date: 2017
  8. By: Tirziu, Andreea-Maria; Vrabie, Catalin
    Abstract: An entrepreneurial education and work culture brings changes in the relation between the public sector’s organizations and its interested parties. More precisely, it is a question of changing managerial and organizational education practices towards self-direction, innovativeness, flexibility and responsibility. Understanding how public sector’s organizations operate in an entrepreneurial manner is also helpful for supporting growth within the business community. This article aims at presenting a framework on young people’s possibilities of becoming successful entrepreneurs within the public sector’s organizations, showing a literature review that concentrates on the entrepreneurship subject, with focus on youth and the public sector’s field. The results are the research made by using studies on this subject, thus leading to a proper use of entrepreneurial means, knowledge and start-up activities that allow an evolved education, self-responsibility and autonomy. We will see that the entrepreneurship concept has been expanded and a strong tendency is in favor of placing entrepreneurship in the center of attention, being regarded as natural in more contexts than the economic one. The wide understanding aims at developing abilities – power of initiative, energy, creativity, cooperation and responsibility, whereas the narrow understanding is more aimed at students obtaining business and self-engaging knowledge regarding personal growth activities.
    Keywords: social innovation; public sector; youth; entrepreneurship education
    JEL: L31
    Date: 2017–09–10
  9. By: Institute for Advanced Studies (IHS)
    Abstract: The Capital Markets Union project (CMU) aims to strengthen the single market by deepening the integration of investment across the European Union. Improved access to finance is a key component of this project, in particular for start-ups, SMEs, and young companies with innovative growth plans. Historically, European SMEs have been primarily dependent on bank finance. In the wake of the financial crisis, this source of funding has been restricted by refinancing capacity, risk appetite and capital adequacy of the banking sector. This has forced young, growing and innovative businesses to seek finance from different sources, such as venture capital (VC) and business angels (BA).This study investigates the part that tax incentives for can play in fostering VC and BA investment, with the intention of promoting best practice across Member States.
    Keywords: SME, tax incentives, venture capital, business angels
    JEL: G24 H21 G32
    Date: 2017–07
  10. By: Guy Baudelle (ESO - Espaces et Sociétés - UNICAEN - Université Caen Normandie - UM - Université du Maine - UA - Université d'Angers - UN - Université de Nantes - AGROCAMPUS OUEST - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique); Gerhard Krauss (ESO - Espaces et Sociétés - UNICAEN - Université Caen Normandie - UM - Université du Maine - UA - Université d'Angers - UN - Université de Nantes - AGROCAMPUS OUEST - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique); Clément Marinos (LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire)
    Abstract: According to the mainstream literature in economic geography, agglomeration economies are so powerful drivers for polarization in the larger metro areas that a center-periphery pattern is almost inescapable, making any peripheral location clearly disadvantageous for firms (Dicken and Lloyd, 1992; Fujita and Thisse, 2003). Urban studies also support such views by demonstrating the growing, steadily trend towards metropolization. However these statements are not fully confirmed by some empirical results. Indeed the stated entrepreneurs’ locational preferences of firms localized in medium-sized (and even small) cities situated in peripheral areas do not always meet these theoretical interpretations. Innovative entrepreneurs and successful companies are usual in such locations, making necessary to explain such unexpected location choices and how they can be successful despite their so-called locational constraints due both to their remote position in badly connected peripheries (as demonstrated by population and economic potential models at the national and European scales) and to the lack of localized external economies of scale. To enlighten such apparently irrational business location choices, we could refer to the behavioural approach (Pred, 1967) as the perception of the quality of location characteristics has been neglected by the literature (Eickelpasch and al., 2015). Indeed the mental maps of the peripheral entrepreneurs –as revealed by our survey– do not exhibit the same perception of their working-area as expected from the theoretical works that consider peripheral locations are damaging due to various backwash effects (Myrdal, 1957; Haggett, 1979). As it has often been established by numerous surveys, the first locational factor of SMEs is often the birthplace of their manager, especially for family-owned companies, considering that entrepreneurial spirit is often more common in areas dominated by small firms (Baudelle and Ollivro, 2000; Ejermo and Hansen, 2015). Therefore the rationale of their location choice does not necessarily match the requisites of profit maximization. But despite this kind of path dependency due to the faithfulness of these entrepreneurs to their native region, we need to understand how such firms can be innovative and therefore successful notwithstanding their non- optimal location in small and medium-sized cities of peripheral areas. At this point we need another theoretical framework, namely the institutional approach (Granovetter, 1973). This perspective is required to explain why and how entrepreneurs can be successful in spite of their non-metropolitan location in modest cities situated far not only from the core of Europe but also from the national and sub-national metropolises. More specifically our study mobilizes the sociology of networks (Krauss, 2011 & 2013) to explain the paradoxical success-stories of peripheral firms. Such an approach is congruent with the evolutionary perspective that is paying more and more attention (but not so much) to networks and institutions as parts of complex adaptative systems to explain regional resilience (Boschma, 2015). Therefore our theoretical assumption is the following: professional networks and personal networking are crucial for these companies and their managers to give them access to various kinds of resources that are necessary to run their business. This is consistent with the theory striking the need for embeddeness among the entrepreneurs to make them possible to run their business with success (Granovetter, 1973; Krauss, Sternberg, 2014). The final goal of the study is to understand how the access to various informational and human resources is made possible by the construction of networks used by innovating companies to develop their business. Consequently the objective is to identify the configuration of the networks –strong or weak, local or distant, central or peripheral– of the interviewed entrepreneurs to understand their possible role in their success stories. The field-study area is a corridor along the Southern Brittany Coast (France). In this area of about 939 000 inhab., there is no large metropolis. The three main cities (Lorient, Quimper, Vannes) are simply medium-sized cities: their built-up areas have respectively 115 000, 80 000 and 75 000 inhab. only and their travel-to-work areas 180 000, 120 000 and 135 000 people. Outside them, only small cities can be found. Moreover these cities are far from the rest of France and Europe and even from the larger metro area in Western France, Nantes (622 000 inh.), which is more than 3 hours away by car from Western Brittany and even 4 hour and a half by train. Even from the closest city (Vannes) the journey to Nantes requires more than 2 hours. Paris, the national capital-city, remains from 3h30 to 6h30 away by train. Some local domestic airports compensate this remoteness but not totally and with a high flight cost due to monopolies. As a result this area is a typical periphery, far from the metropolitan engines of the globalizing economy. The French division of labour between Paris metro area and the province even worsens the gap between the Breton Western periphery and the French World City. To understand how the entrepreneurs overcome such a physical distance, a sample of about 20 successful business leaders were interviewed (Marinos, 2015). The selected companies (mainly SMEs) are deliberately very competitive ones: they are intensive in technology, exhibit a high level of innovation (as demonstrated by the number of patents) allowing high added values and significant export rates, they attract international investors and look for clients and suppliers all around the world. The objective of the study was to evaluate how important the networks are to compensate the possible theoretical locational constraints due to peripheral sites (Krauss, 2009). The literature often points out the possible negative locking effects of excessive local inward-looking ties, suggesting a trade-off between immediate adaptation and later adaptability (Grabher, 1993; Boschma and Frenken, 2010; Braun and Schulz, 2012; Boschma, 2015). However our study shows clearly that such a distinction between strong local, proximate connections and weak, outward-looking networks does not fit with our empirical results, which leads to reconsider the present literature about the connectedness of entrepreneurs working in peripheries seen as so-called autarkic and poorly connected places. The survey reveals that the entrepreneurs do not ignore the drawbacks of peripheral locations. However the professionals met for the survey express great satisfaction about their business in Southern Brittany. The participation of three quarters of them in local networks (business associations, chambers of commerce, development agencies...) is presented as necessary for their business development process, and even crucial during the start-up stage. It allows them to open up to their immediate environment and to enhance their external visibility. Belonging to a network also improves their collective capacity for concerted actions. Doing so, entrepreneurs become more audible by politicians and influence local public policies. Small and medium-sized cities are perceived as a favorable ground to confident relationships even if that kind of links rarely exceeds the TTWA boundaries. Local political staff and administration are more easily approachable and quicker to react than in bigger cities. More surprisingly, these employers are involved in the local economic life even if their clients are not local. The more entrepreneurs operate on the globalized market, the more they express that need for local commitment: “my company needs roots to have wings”. The local territory acts as a medium between stakeholders: “partnerships, collaborations, it is first and foremost a human-based process”. A collaborative way of working is considered essential. The importance of trusting is at the heart of networks' efficiency because it facilitates the exchanges and improves the flow of information. The information quality control is operated by network members. Immaterial resources access constitutes a favorable ground for entrepreneur’s social capital. This access opportunity participates to the process of innovation. Therefore mutual trust can be regarded as an implicit knowledge transmission accelerator that fosters innovation. Higher education (including alumni associations) is complementarily highly structuring for entrepreneurs’ networks, offering good opportunities to develop sustainable partnerships. When they exist, links with experts and academic researchers are sustainable and lead to success. These relations take time and depend on the leader’s background. They vary a lot according to how long the company has been based on the territory. However most of the local research fields are different from those which are of interest to local companies to such an extent that some companies prefer working with metropolitan research organizations, particularly for those which operate in niche activities. In terms of cooperation, employers display a very pragmatic behavior: they get to the closest companies, sometimes even at the expense of the quality of the resource. Geographic proximity fosters working together, a round trip in the afternoon being considered as the symbolic border. This is particularly true for interpersonal networks, restricted to everyday life territory. But for commercial partnerships there is no geographic border. Eventually these networks are helpful to overcome some challenges such as hiring talented employees or getting a convenient job for their partners in small TTWAs. But they do not solve all the usual problems the peripheral entrepreneurs face to such as good air connectivity within an hour drive (“If the airport closes, I leave”). Moreover the companies operating in specialized activities or in a niche productions do suffer from the lack of dense sectorial networks, generating a feeling of isolation. This can impact the open innovation process and even inhibit the organization of events supposed to provide new interactions. Finally the network approach helps to understand why companies located in peripheral areas do not move towards larger central metro areas despite of their locational disadvantage underlined by the neoclassic locational theory.
    Keywords: peripheral location, embeddedness, entrepreneurship, networks, innovation
    Date: 2017–08–30
  11. By: Jérémie Faham (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Maxime Daniel (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), LaBRI - Laboratoire Bordelais de Recherche en Informatique - Université Bordeaux Segalen - Bordeaux 2 - Université Sciences et Technologies - Bordeaux 1 - École Nationale Supérieure d'Électronique, Informatique et Radiocommunications de Bordeaux (ENSEIRB) - CNRS - Centre National de la Recherche Scientifique); Jérémy Legardeur (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: One of the objectives of the European Commission for 2014-2020 is to establish " Research and Innovation Strategies for the Smart Specialization " (RIS3). The originality of RIS3 is the " bottom-up " identification of regional priorities especially through the " Entrepreneurial Discovery " (ED) process. The Collaborative Business Models (CBM) approach has probably a role to play within this process as a suitable strategic tool to set up regional " value networks ". However, the preparatory stage of CBM and especially the identification and the matching processes among potential RE partners is often not addressed. This work is based on the need to support the discovering and the matching processes between " regional entrepreneurs " (companies, research , consulting, association, public authorities…) in order to improve the efficacy of CBM and RIS3. In this paper, we propose a review of the state of the art concerning the different dimensions linked to the matching processes.
    Keywords: Entrepreneurs,Profile Comprehension,Matching,RIS3,Entrepreneurial Discovery,Collaborative Business Models
    Date: 2016–09–03
  12. By: Benner, Maximilian; Buzin, Johannes; Hoffmann, Jakob; Taifour, Ahmad Azzam
    Abstract: Identifying opportunities to facilitate economic growth is a major challenge in local and regional development. Particularly for local or regional economies confronted with deep structural economic problems, unlocking growth differentials by targeting untapped potentials for employment and entrepreneurship can provide an opportunity to renew themselves. Therefore, it is logical that the “missing entrepreneurs” from among economically underrepresented or disadvantaged groups such as women, senior citizens, people with special needs, or youth as well as immigrants have recently gained attention by scholars and policymakers in local and regional development. Still, there is not yet a clear and comprehensive understanding on how to consider the needs of economically underrepresented or disadvantaged groups, both as entrepreneurs or as employees, in local and regional development strategy design. While women and youth entrepreneurship have been subject to an academic and policy debate for some time, the discourse on how to include other economically underrepresented or disadvantaged groups in local or regional economies is far less advanced. The present study reviews the state of literature on inclusive local development and, based on a preliminary analysis of the local economy, proposes a strategy for inclusive local development in Heraklion, Greece. As a locality suffering under the structural economic crisis that has afflicted Greece for almost a decade, a strategy for how to include economically underrepresented or disadvantaged groups in the local economy is both a social necessity and a way to unlock untapped potentials for economic growth.
    Keywords: local development; regional development; inclusiveness; women entrepreneurship; senior entrepreneurship; youth entrepreneurship; immigrant entrepreneurship; special-needs entrepreneurship; missing entrepreneurs; Heraklion; Crete; Greece
    JEL: L26 L31 L83 O13 O14 R11 R58
    Date: 2017–09–12
  13. By: Dia, Ibrahima; Bonnet, Jean; Abdesselam, Rafik
    Abstract: The purpose of this paper is to understand the determinants of women's entrepreneurship in the informal sector in Dakar (Senegal). It aims mainly at a better knowledge of women's involvement in economic activities through the informal sector. The paper does this in three ways: first, by defining the informal sector and the female entrepreneur through a literature review; second, by adapting theoretical models in entrepreneurship to the Senegalese informal sector and by defining the concept of entrepreneurial culture ; third, by making a discriminating factorial analysis and a barycentric analysis, based on primary data collected from 153 women in Dakar, to describe a woman’s belonging to a category of creation: creation in the formal or large informal sector, creation in the small informal sector and non-creation. The results show that the woman entrepreneurial activity from one sector to another depends on her human, social and cultural capital and confirm the importance of social capital in the female entrepreneurship of the developing countries where the informal sector is highly developed.
    Keywords: female entrepreneurship, informal sector, intentional models, barycentric regression, Dakar.
    JEL: E26 L26 M13 M14
    Date: 2017–03–10
  14. By: DIA, Ibrahima
    Abstract: In developing countries and particular in Senegal the majority of women are poor. Microenterprises created by a part of these women, especially in the informal sector, qualitatively improve their lives and those of their families and arouse increasingly growing interest for public authorities. In Senegal, where the informal sector is an important part of the economy, few researchers were interested in the factors which are likely to push women entrepreneurship in this sector. Based on the data from a field survey we conducted among 107 women entrepreneurs in the informal sector of the area of Dakar, this article attempts to verify if the entrepreneurial choices of these women is linked to socio-cultural factors, economic and / or noneconomic factors using a principal component analysis of motivational factors. Our results are rather surprising and highlight the complexity of the motivational phenomenon. Women rather undertake to satisfy their desire to participate in the welfare of their community.
    Keywords: Entrepreneurship, women, motivation, informal sector
    JEL: A1 J0 J1 J12 J16 O1 O17
    Date: 2017–09–05

This nep-ent issue is ©2017 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.