Risk or Opportunity? Exploring the Relationship Between Entrepreneurial Decision and the Use of Equity Crowdfunding Campaigns in Less- and Well-Developed Regions in Italy

2022 ◽  
pp. 99-114
Author(s):  
Simona Leonelli ◽  
Filippo Marchesani ◽  
Francesca Masciarelli
Keyword(s):  
Equity Crowdfunding ◽  
Entrepreneurial Decision ◽  
The Relationship

scholarly journals Exploring entrepreneurial characteristics, motivations and behaviours in equity crowdfunding: some evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ciro Troise ◽  
Mario Tani
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Added Value ◽  
Content Type ◽  
Entrepreneurial Alertness ◽  
Equity Crowdfunding ◽  
Entrepreneurial Characteristics ◽  
Entrepreneurial Decision ◽  
The Relationship ◽  
Least Squares Approach

PurposeThis study explores entrepreneurial decision-making in the equity crowdfunding (ECF) context, and it aims to shed some light on the relationship among three aspects: entrepreneurial characteristics (i.e. entrepreneurial alertness and entrepreneurial self-efficacy), entrepreneurial motivations (i.e. promotion, improvement of networking and acquisition of product and market knowledge) and entrepreneurial behaviours (i.e. campaign characteristics in terms of communication and offerings).Design/methodology/approachThe hypotheses testing and analysis were conducted using the partial least squares approach to structural equation modelling, and data were collected from the overall population of Italian ECF platforms.FindingsOur results highlight that entrepreneurial characteristics may be central in ECF because of their significant impact on some motivation entrepreneurs have to adopt ECF, which in turn have an impact on meaningful campaign characteristics that can influence ECF performance.Originality/valueThe current literature is mainly focused on investors' decisions, while a neglected perspective until now has been that of entrepreneurs. This study is among the first to focus on entrepreneurs in the ECF context, and, to the best of our knowledge, it is the first study to investigate the entrepreneurial decision-making process. The added value of this research lies in the analysis of the entrepreneurial aspects underlying entrepreneurial decisions to use ECF.

Influence of Confucian culture on entrepreneurial decision making using data from China's floating population

2020 ◽  
Vol 48 (7) ◽  
pp. 1-12
Author(s):  
Ran Xiong ◽  
Ping Wei
Keyword(s):  
Decision Making ◽  
Floating Population ◽  
Positive Role ◽  
Confucian Culture ◽  
Chinese Nation ◽  
Using Data ◽  
Entrepreneurial Decision ◽  
And Behavior ◽  
The Relationship

Confucian culture has had a deep-rooted influence on Chinese thinking and behavior for more than 2,000 years. With a manually created Confucian culture database and the 2017 China floating population survey, we used empirical analysis to test the relationship between Confucian culture and individual entrepreneurial choice using data obtained from China's floating population. After using the presence and number of Confucian schools and temples, and of chaste women as instrumental variables to counteract problems of endogeneity, we found that Confucian culture had a significant role in promoting individuals' entrepreneurial decision making among China's floating population. The results showed that, compared with those from areas of China not strongly influenced by Confucian culture, individuals from areas that are strongly influenced by Confucian culture were more likely to choose entrepreneurship as their occupation choice. Our findings reveal cultural factors that affect individual entrepreneurial behavior, and also illustrate the positive role of Confucianism as a representative of the typical cultures of the Chinese nation in the 21st century.

Influence of perceived risks on the decision to invest in equity crowdfunding: a study of Malaysian investors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shaista Wasiuzzaman ◽  
Lee Lee Chong ◽  
Hway Boon Ong
Keyword(s):  
Risk Factors ◽  
Structural Equation ◽  
Positive Influence ◽  
Equation Modeling ◽  
Investment Risk ◽  
Content Type ◽  
Legal Risk ◽  
Equity Crowdfunding ◽  
Start Ups ◽  
The Relationship

Purpose This study aims to investigate the influence of various risk factors, specifically investment risk, legal risk and technology risk, on the decision of investors to invest in equity crowdfunding ventures in Malaysia. Design/methodology/approach A total of 169 valid responses out of a total of 195 questionnaires were distributed to individuals with prior knowledge of equity crowdfunding. The data from the responses are used to test the relationships using structural equation modeling partial least squares (SEM-PLS). Findings Investigation into the influence of risk factors on the willingness to support equity crowdfunding shows that investment risk and legal risk significantly influence the decision to support equity crowdfunding ventures, but technology risk does not. However, while the influence of investment risk is negative, legal risk is found to have a positive influence. Originality/value This study is important as, to the authors’ knowledge, this is the first study to empirically test the relationship between the various risks inherent in equity crowdfunding investments and the decision to invest. The study is also important to entrepreneurs and start-ups as it provides evidence that while the equity crowdfunding investment community follows the norms of investment, i.e. lower risk is preferred, stricter laws and regulations governing equity crowdfunding may not be needed or may only be relevant in countries where there are more retail, unsophisticated investors.

scholarly journals Entrepreneurs’ optimism, cognitive style and persistence

2016 ◽  
Vol 22 (1) ◽  
pp. 84-108 ◽  
Author(s):  
Samuel Adomako ◽  
Albert Danso ◽  
Moshfique Uddin ◽  
John Ofori Damoah
Keyword(s):  
Cognitive Style ◽  
Longitudinal Design ◽  
Moderating Effects ◽  
Causal Inferences ◽  
Cross Sectional ◽  
Policy Makers ◽  
Content Type ◽  
Cross Sectional Design ◽  
Entrepreneurial Decision ◽  
The Relationship

Purpose – The purpose of this paper is to examine the moderating effects of cognitive style dimensions on the relationship between entrepreneurs’ optimism and persistence. Design/methodology/approach – This theoretically derived research model is empirically validated using survey data from 198 small and medium-sized enterprises in Ghana. Findings – The study’s empirical findings are that the relationship between entrepreneurs’ optimism and entrepreneurial persistence is enhanced at higher levels of cognitive planning and creating styles. Somewhat interestingly, cognitive knowing style negatively moderates the relationship between optimism and entrepreneurial persistence. Research limitations/implications – The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications – The results of this paper can assist entrepreneurs and policy-makers in understanding the dynamics and processes involved in entrepreneurial decision making. The understanding of this issue can promote the development and maintenance of entrepreneurial ventures. Originality/value – The paper has a strong theoretical value as it relies on cognitive explanations of human behaviour, and seeks to advance the theoretical field by demonstrating the value of cognitive style within the domain of entrepreneurship.

scholarly journals Age of the entrepreneurial decision: Differences among developed, developing, and non- developed countries

2018 ◽  
Vol 7 (1) ◽  
pp. 36 ◽  
Author(s):  
Alicia Coduras ◽  
Jorge Velilla ◽  
Raquel Ortega
Keyword(s):  
Machine Learning ◽  
Social Norms ◽  
Survey Data ◽  
Population Survey ◽  
Adult Population ◽  
Developed Countries ◽  
Machine Learning Techniques ◽  
Learning Techniques ◽  
Entrepreneurial Decision ◽  
The Relationship

Although entrepreneurship is widely considered an engine of growth, it is not clear whether policies, de facto, promote it, and knowing which individuals are willing to become entrepreneurs could help in the design of those policies. In this paper, we study how individuals become entrepreneurs at different ages, according to the degree of development of the country of residence. We make use of the GEM 2014 Adult Population Survey data, against a background where social norms are controlled, to find that the relationship between entrepreneurship and age follows an inverted U-shape, according to machine learning techniques, and that younger individuals are the most willing to become entrepreneurs.

scholarly journals THE MEDIATING EFFECT OF INTEREST ON THE RELATIONSHIP BETWEEN DEMORAPHIC ASPECTS AND THE DECISION FOR BEING AND ENTREPRENEUR

2019 ◽  
Vol 2 (2) ◽  
pp. 101-120 ◽  
Author(s):  
Arief Tukiman Hendrawijaya
Keyword(s):  
Path Analysis ◽  
Family Member ◽  
Indirect Effects ◽  
Family Members ◽  
Mediating Effect ◽  
Direct And Indirect Effects ◽  
Street Vendors ◽  
Entrepreneurial Decision ◽  
The Relationship ◽  
Effect Of Age

The study analyzes the effect of age, education, gender, experience, and the number of family members on the interest to be an entrepreneur and entrepreneurial decision. In addition, the study tests whether the interest to be an entrepreneur mediates the effect of age, education, gender, experience, and family number on the decision to be an entrepreneur. The population of the study are the street vendors in the Jember downtown. The samples consist of 192 respondents. This research uses the path analysis to determine the direct and indirect effects. The results show that age, education, gender, experience, and the number of family member have positive and significant effects on interest and the decision to become an entrepreneur. Interest mediates the effect of age, education, gender, experience, and the number of family member on the decision to become an entrepreneur.

scholarly journals The rhythm of effective entrepreneurs’ decision-making process. The pathways of alertness scanning and search and cognitive style. A mediation model

2021 ◽  
Author(s):  
Sara Sassetti ◽  
Vincenzo Cavaliere ◽  
Sara Lombardi
Keyword(s):  
Decision Making ◽  
Cognitive Style ◽  
Cognitive Styles ◽  
Decision Making Process ◽  
Manufacturing Companies ◽  
Mediation Model ◽  
Scant Attention ◽  
Entrepreneurial Decision ◽  
The Relationship

AbstractHow can entrepreneurs be effective when making decisions? To enrich current research on entrepreneurship and cognition, the present study shows how alertness and decision making are closely related. Prompted by the scant attention that scholars have paid to the link between alertness and the pathways of entrepreneurs’ thought, it proposes that being alert by adequately scanning and searching for information is likely to increase decision-making effectiveness. Distinguishing between rational and intuitive cognitive styles and based on a sample of 98 Italian entrepreneurs from small and medium manufacturing companies, the analysis shows that while a rational cognitive style significantly mediated the relationship, intuition did not play a role in shaping entrepreneurial decision-making effectiveness. The results suggest that developing individual alertness might not be sufficient for entrepreneurs to make effective decisions; a rational cognitive style might also be a key mechanism shaping this association.

The Relationship among Biases, Misperceptions, and the Introduction of Pioneering Products: Examining Differences in Venture Decision Contexts

2002 ◽  
Vol 27 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Mark Simon ◽  
Susan M. Houghton
Keyword(s):  
Control Law ◽  
Entrepreneurial Firms ◽  
Product Introduction ◽  
Different Types ◽  
Entrepreneurial Decision ◽  
Context Specific ◽  
The Relationship ◽  
Decision Environments ◽  
Reasoning By Analogy

Although biases influence the decision to take entrepreneurial actions, studies have not differentiated among entrepreneurial decision environments. These environments vary greatly and affect which biases arise and their context–specific consequences. Focusing on the role of firm size, age, and type of product introduction, we propose that entrepreneurs in smaller, younger, firms, who are considering pioneering, are more likely to exhibit illusion of control, law of small numbers, and reasoning by analogy. These biases contribute to underestimating competition, overestimating demand, and overlooking requisite assets. We hope to spur researchers to examine information processing across different types of entrepreneurial firms and actions.

scholarly journals Exploring the moderating effect of social intelligence on the relationship between entrepreneurial decision-making strategy and SME sustainable performance

2018 ◽  
Vol 150 ◽  
pp. 05020
Author(s):  
Dayang Hasliza Muhd Yusuf ◽  
Mohd Salleh Hj. Din ◽  
Muhamad Shahar Jusoh
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Social Intelligence ◽  
Venture Performance ◽  
Sustainable Performance ◽  
New Instrument ◽  
Modelling Techniques ◽  
Entrepreneurial Decision ◽  
The Relationship ◽  
Significant Moderator

The study reveals that causation, rather than effectuation, decision-making strategy is a more significant predictor of sustainable performance of SMEs. However, social intelligence was not found to be a significant moderator of entrepreneurial decision-making-sustainable performance relationship. The study uses data from a survey among 91 technology-based SMEs (TBS) in Malaysia and employs structural equation modelling techniques for data analysis. A new instrument to measure all three variables of entrepreneurial decision-making strategy, social intelligence, and venture performance is proposed based on adoption and adaptation of existing validated scales available in literature.

Entrepreneurship and the consequences of healthcare policy

2014 ◽  
Vol 3 (1) ◽  
pp. 141-159 ◽  
Author(s):  
Robert Salvino ◽  
Michael Tasto ◽  
Gregory Randolph
Keyword(s):  
Design Methodology ◽  
Healthcare Policy ◽  
Firm Innovation ◽  
Content Type ◽  
Self Employment ◽  
Long Run ◽  
Entrepreneurial Decision ◽  
The Relationship ◽  
Employment Data ◽  
Over Time

Purpose – The purpose of this paper is to examine the long-run impact of federal government healthcare subsidies on the level of entrepreneurship as measured by self-employment. Design/methodology/approach – Using annual healthcare and employment data from 1948 through 1999, the paper empirically examines the relationship between the growth in employer-provided healthcare and the rate of self-employment as a share of the non-agriculture, civilian labor force. Findings – The regression results imply that there is a consistent effect that has appeared over time – where federal healthcare subsidies have disproportionately benefitted larger firms, contributing to the decline in the rate of self-employment, within-firm innovation, and factor mobility over time. Research limitations/implications – The research in this study is limited by the examination of self-employment only and a constant institutional structure across all states, only varying across time for the entire USA. In addition, an empirical study looking at how the value of healthcare benefits have changed over time – vs the sole question in this study that depends upon whether or not an individual is covered or not would be very useful in determining the true effect on an entrepreneur. Social implications – Reducing or removing the layers of healthcare subsidies would bring about an increase in the transparency of the wage-productivity relationship and a more efficient allocation of labor and entrepreneurial ability across firm sizes. Originality/value – This paper presents empirical evidence supporting specific improvements to national healthcare policy at a time when such policy is undergoing significant change with consequences for entrepreneurial decision making.

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