The emergence of family entrepreneurship in the transition economy of Cuba

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eli Gimmon ◽  
Christian Felzensztein

PurposeTo better understand the emergence of small-scale entrepreneurial firms in the under-researched transition economy of Cuba.Design/methodology/approachGiven the scarcity of reliable publicly available information and restrictions on private data collection in Cuba, in-depth interviews were conducted with a panel of small-scale entrepreneurs at three different points in time. Evolutions are analyzed over this period.FindingsFamily can overcome institutional constraints by helping the entrepreneur deal with market and social obstacles. Despite the absence of a supportive entrepreneurial ecosystem, these new entrepreneurs and their families have been able to transform longstanding passive attitudes into positive steps to set up new small-scale ventures in a country facing unprecedented internal and external challenges.Originality/valueA new conceptual model of family support for entrepreneurship in transition economies is presented. The findings lend weight to institutional theory on overcoming constraints in emerging markets and extend the theory of family entrepreneurship to new transition economies.

2019 ◽  
Vol 25 (4) ◽  
pp. 717-730 ◽  
Author(s):  
Veland Ramadani ◽  
Robert D. Hisrich ◽  
Leo-Paul Dana ◽  
Ramo Palalic ◽  
Laxman Panthi

Purpose Throughout Macedonia, beekeeping is becoming popular regardless of ethnicity. Studying ethnicity, the purpose of this paper is to determine what beekeepers in Macedonia thought in their own words about their beekeeping entrepreneurship. The objective is to identify whether motivations of ethnic Albanian beekeepers in Macedonia were the same or different compared to those of ethnic Macedonians in the same country, and if different, how. Design/methodology/approach To accomplish this objective, in-depth interviews were conducted with 40 beekeepers in Macedonia. A total of 29 interviews were conducted face-to-face and the other 11 by phone. The first set of interviews took place between December 2016 and February 2017, followed by more interviews in June 2017. In total, 27 respondents said they were ethnic Albanians, and 13 identified themselves as ethnic Macedonians. Also, ten respondents were women. While eight were full-time beekeepers, 32 were part-time beekeepers. Findings The results indicated that beekeeping businesses play a significant role in the transition economy of Macedonia. Beekeeping provides additional earnings that support rural families and keeps them financially stable. The majority of both Albanians and Macedonians understood that beekeeping on a part-time job basis provided a needed supplement to their income. Some part-time beekeepers are also working as auto-mechanics, locksmiths, medical doctors, restaurant/cafeteria owners, and tailors. A few in the sample were retired from their jobs or full-time beekeepers. An important difference between ethnic Albanian beekeepers and ethnic Macedonians in Macedonia is that the majority of ethnic Albanian participants see beekeeping as following in “my father’s footsteps”, while most Macedonians were motivated by the perceived opportunity of having a good business. Research limitations/implications Limitations of the research are twofold. First, financial data of family beekeeping are not available, which would be useful in determining the contribution made to economic development. It is common, especially in transition economies such as the western Balkans, that financial results are very sensitive to their owners. Second, unavailable databases for beekeepers make any quantitative approach difficult, if not impossible, resulting in most research using the qualitative research approach. Originality/value This paper is one of the first to treat beekeeping as a form of artisan entrepreneurship, which also contributes to the understanding of family business. As in other countries, the important and operation of the family business among family members in Macedonia is passed from generation to generation. The results of this research revealed the value of networking, which was found to be very important to income. For beekeepers to develop, grow, and be branded in the community, networking is an important ingredient.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Orjon Xhoxhi ◽  
Domenico Dentoni ◽  
Drini Imami ◽  
Engjell Skreli ◽  
Olta Sokoli

PurposeIn contexts of transition economies generally characterized by weak formal institutions, a rich literature remarks the important role of informal institutions in fostering entrepreneurial ecosystems. Nevertheless, in the agricultural context, little is known yet about how and why institutions shape farmer entrepreneurship. To better understand how informal institutions shape farmer entrepreneurship, this paper investigates how farmers' trust towards their buyers influence their entrepreneurial orientation (EO) in the rural context of a transition economy.Design/methodology/approachA structured survey was conducted in June–July 2017 with Albanian dairy farmers. In total, 238 milk producers were interviewed. Confirmatory factor analysis (CFA) is employed to develop measures for the latent variables of the study (e.g. farmers' trust, EO), and an instrumental variable (IV) approach is employed to estimate the effect of farmers' trust towards the buyer on their EO, by using farmers' reciprocity as a suitable IV.FindingsEmpirical findings reveal that innovativeness, risk-taking and proactivity represent effective dimensions of farmers' EO also in the rural context of a transition economy. Furthermore, farmers' trust towards their buyers shapes their EO, and, at the same time, younger and wealthier farmers are more likely to have higher levels of EO.Research limitations/implicationsThe results show that there is an association between farmers’ wealth and their EO. This relationship can go both ways. However, cross-sectional studies are not appropriate to investigate feedback loops.Originality/valueThis study addresses a knowledge gap in the institution–entrepreneurship literature in transition economies, by making two contributions. First, it tests the measurement model for farmers' EO, an established psychological antecedent of farmers' entrepreneurial activity. Second, it tests the hypothesis that farmers' trust towards their buyers may influence their EO.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vladislav Spitsin ◽  
Darko Vukovic ◽  
Sergey Anokhin ◽  
Lubov Spitsina

PurposeThe paper analyzes the effects of the capital structure on company performance (return on assets). The analysis is conducted in a large sample of high-tech manufacturing and service companies in the transition economy (Russian Federation). In addition to the aggregated analysis, separate investigations are conducted to scrutinize the impact of company age, size and location factors (the effects of agglomerations). This research postulates the existence and variability of the optimal capital structure and its dependence on economic crisis.Design/methodology/approachWe utilized a large sample that includes 1,826 enterprises over the period from 2013 to 2017. The estimation was performed using the panel-corrected standard error estimation technique (Prais–Winsten regression) to account for the panel nature and distributional properties of our data. The existence of the optimal capital structure was assessed based on a curvilinear (quadratic) function.FindingsThe results are consistent with the Static Trade-off Theory and show that this theory is applicable to countries with transition economy. They demonstrate that effective management of the capital structure can increase return on assets by 16–22%. The optimal share of borrowed capital is higher for small businesses compared to larger ones and for enterprises located in agglomerations compared to those located in other regions. A greater increase in profitability can be achieved by larger firm companies compared to smaller ones. High share of borrowed capital leads to negative profitability, i.e. to losses by enterprises. No significant differences in profitability growth were identified between young and mature enterprises. The optimal share of borrowed capital that maximizes return on assets is in the range of 0–21%.Research limitations/implicationsDue to the SPARK policies, our access to the data has been limited to a five-year window, which imposed certain limitations on the choice of econometric methods we could have employed and somewhat limited our ability to contrast the effect of the crisis period with the period of stability. In this sense, although our results pertaining to the effect of the crisis could be treated as conservative, future research should consider extending the panel to include more years into consideration.Practical implicationsWe identified significant differences between optimal capital structures and actual capital structures for high-tech enterprises. The contribution of this study is that the calculations were made for a country with a transition economy under crisis conditions. Countries with transition economies and developing countries tend to be characterized by a high level of interest rates on loans and a high proportion of borrowed capital in total assets. This poses difficulties for companies relying on borrowed capital to finance their operations. At the same time, our results demonstrate that in transition economies, enterprises in high-tech industries do have an optimal capital structure that allows maximizing firm performance. That is, Static Trade-off Theory is applicable to transition economies characterized by high interest rates on loans.Originality/valueThe novelty of this study lies in the detailed analysis of high-tech industries in Russian Federation. This analysis makes use of sophisticated econometric techniques for the first time in this context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gökay Selcuk ◽  
Lech Suwala

PurposeBy combining manifold approaches from migrant entrepreneurship and family business studies, the purpose of the paper is to shed some light upon the contextual features of motivation, resources, generational pathways of Turkish migrant family entrepreneurs in Berlin – through the lens of a mixed and multiple embeddedness approach.Design/methodology/approachAn explorative research design, based on an eclectic theoretical framework and on purposive sampling, combines qualitative in-depth interviews/content analysis and on-site observation resulting in an almost ethnographic assessment of selected case studies of Turkish migrant family entrepreneurs (concerning age (min. 20 years), size (15+ employees) and currently at a stage of succession).FindingsThe results show that despite specific strategies vary – four circumstances hold true for all cases: (1) firm trajectories were characterized by little strategic planning and mostly trail-and error processes in the past and business survival is highly dependent on owner families; (2) owner families heavily relied on personal, family and collective resources, not benefiting from promotion programmes or micro-funding measures for SMEs; (3) owner families have actively developed their (mixed) embeddings during the growth of their migrant business beyond the single ethnic group at various spatial scales; (4) succession adds another layer of context – what we call here multiple embeddedness – with ambivalent effects: emerging potentials and conflicts between the preceding and succeeding generation.Practical implicationsResults have shown that is it necessary to set up both: customized funding opportunities for migrant start-ups in general and succession consulting for migrant family entrepreneurs in particular. Given the magnitude of family migrant entrepreneurs and the accelerating migration patterns in most Western European countries, there is urgent need for such measures.Originality/valueFamily entrepreneurship has been often discussed without a migration perspective, neither taking a systematic look at pertinent motivation, resources, and future trajectories nor context. Migrant entrepreneurship studies barely take the family or family-specific issues (e.g. succession) into account, and mainly deal with the integration or economic aspects. Our mixed and multiple embeddedness approach allows for a holistic view on transgenerational migrant family entrepreneurship by integrating both socio-spatial (actor, family, network, micro, meso, macro) and multi-generational contexts (preceding, succeeding).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shirleyana ◽  
Scott Hawken ◽  
Riza Yosia Sunindijo ◽  
David Sanderson

Purpose This paper aims to discuss what people perceive as risks and resilience factors, and how they build everyday resilience. Design/methodology/approach The study focuses on Kampung (literally “village”) Plampitan, a neighbourhood in the inner-city part of Surabaya. The research used field observation, in-depth interviews and workshops during community meetings to collect data. Findings The results show how people respond to daily risks and find the support necessary to survive. The problems and risks revealed in the study include crime and economic difficulties, such as unemployment and insufficient income. Coping strategies identified are classified into place-based adaption, people-based network and political network. These strategies can serve as a starting point for local communities to assess their resilience and assist them in enhancing “everyday” resilience. Originality/value The paper argues that the concept of resilience must go beyond top-down approaches to disaster risk management and integrate bottom-up understanding from the perspective of local people, especially among marginal and disadvantaged communities. The paper develops the emerging and overlooked concept of “everyday resilience” and suggests that it is essential in surviving both “everyday” or small-scale chronic risks and large-scale disasters.


2015 ◽  
Vol 6 (3) ◽  
pp. 200-214 ◽  
Author(s):  
Adrian Devine ◽  
Frances Devine

Purpose – The purpose of this paper is to examine how the structure of government-funded event agencies affected the development of the events industry in Northern Ireland. The institutional arrangements for two agencies which operated at different times in Northern Ireland were analysed. Design/methodology/approach – A total of 62 in-depth interviews were conducted with event organisers and public officials who had worked directly with these two organisations. Findings – The standalone National Events Agency which began operating in 1999 was found to be more hands-on and worked closely with event organisers to develop the quality of their event. As a quango it worked at arms length from government. Unfortunately it abused this freedom and used public monies to manage its own events, highlighting the need for transparency and accountability when managing this type of agency. In 2008 it was replaced by an Events Unit which was set up within the National Tourism Organisation. Under this structure event tourism and not event development was the priority. For the events industry this created development issues and reduced its clout at government level. Originality/value – This paper addressed a gap in the literature and found that the institutional arrangements did affect how a government-funded events agency operated and what it regarded as a strategic priority. This in turn had repercussions for the development of the events industry.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shagufta Tariq Khan ◽  
Mohd Abass Bhat ◽  
Mohi-Ud-Din Sangmi

PurposeThis study investigates the effectiveness of microfinance-backed entrepreneurship as a mechanism for the holistic empowerment of women.Design/methodology/approachThis study employs a mixed-method research-design consisting of quasi-experimental design (quantitative approach) involving women, both entrepreneurs (132) and non-entrepreneurs (238), as well as in-depth semi-structured interviews (qualitative approach).FindingsQuantitative analysis revealed that female entrepreneurs are better off than female non-entrepreneurs in terms of economic, social, political and psychological indicators of empowerment. However, relatively lesser impact was found in terms of political, and to an even smaller extent, social empowerment of women. Analysis of in-depth interviews corroborated these findings confirming that entrepreneurship serves as an effective tool for the holistic empowerment of women. However, non-entrepreneurs also exhibit social empowerment.Research limitations/implicationsGiven the restricted geographical ambit of the study, prudence ought to be exercised in drawing inferences applied to alternate contexts. That the vast majority of questionnaire respondents are illiterate presented a notable impediment in the process of collection of accurate responses.Practical implicationsMicrofinance intervention ought to be specifically directed to cultivating entrepreneurship among women; in particular, to achieve the full benefits of empowerment, women availing microfinance ought to exert full control over their own business ventures.Originality/valueIn analyzing holistic empowerment through microfinance supported businesses set up by women, the study adds to the existing literature on women entrepreneurship and empowerment.


2014 ◽  
Vol 9 (1) ◽  
pp. 147-156 ◽  
Author(s):  
Mico Apostolov

Purpose – This paper is a case study of the Republic of Macedonia and focuses on the development of governance and enterprise restructuring. Thus, country's effective corporate governance and corporate control, which impact enterprise restructuring, are essential in the analysis of market-driven restructuring through domestic financial institutions and markets. The data used in this article are analyzed with an econometric regression model, which as employed in this study examines the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns. Two basic hypothesis are taken in the analysis: first, governance and enterprise restructuring depend on set of policies, such as, large-scale privatization, small-scale privatization, price liberalization, competition policy, trade and foreign exchange system, banking reform and interest rate liberalization, securities markets and non-bank financial institutions and overall infrastructure reform; and second, governance and enterprise restructuring improves over time due to imposed policies. The paper aims to discuss these issues. Design/methodology/approach – The data used in this article are analyzed with an econometric regression model, which as employed in this study examines the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns. Findings – There is still more to be done in order to bring these economies closer to the standards of developed ones. Indeed, it is needed considerable improvement of corporate governance, institution-building to control agency problems and imposing already adopted regulation, as well as, enforcing new enterprise restructuring policies, within existing policies of overall transition economy restructuring. Originality/value – This paper is a contribution to the research developing the business aspects of the Macedonian economy, as there is constant lack of scientific papers that deal with the specific issues of corporate governance and enterprise restructuring.


2013 ◽  
Vol 10 (1) ◽  
pp. 77-95
Author(s):  
R. Srinivasan

Suprajit Engineering Limited (SEL) was set up by Mr Ajith Kumar Rai, who serves as its Managing Director, when he returned as a fresh graduate from Canada. Foreseeing a boom in the country’s automobile market, Ajith decided to establish an automotive cable-manufacturing unit. His clarity of vision convinced TVS Motors to invest in setting up Suprajit Engineering as a small, one-unit firm in Bangalore, a fast-growing Indian metro. Beginning in 1987 as a small-scale automotive cable manufacturer, Suprajit is now a public listed company, with some of the world’s biggest automobile companies as clients, products spanning a wide range of automotive and non-automotive parts and eleven manufacturing units. This case traces the inspiring story of Suprajit Engineering Limited and aims to highlight the reasons behind Suprajit’s success and is intended to demonstrate rapid growth strategies of entrepreneurial firms.


2018 ◽  
Vol 4 (3) ◽  
pp. 233-248
Author(s):  
Ben Wielenga

Purpose The purpose of this paper is to present the way in which the mainland of the German Wadden Sea area transitioned from traditional sectors into an almost entirely tourism destination, and which factors contributed to and/or necessitated such a development. Design/methodology/approach The overall approach in this paper has adopted a focus on an extensive case study of the German mainland of the Wadden Sea area. Scientific articles have been used to, first, structuring the theoretical framework and then to gain a general understanding on what a transition exactly entails. As a result, the theoretical framework has been written in an examination of existing literature on transitions and functioned as the theoretical support and foundation for the case study analysis. The analysis has been shaped by means of a number of scientific articles, branch reports, books and websites that, in most instances, specifically focused on the chosen case. Since the area of study is located in Germany, specific literature on this area was mostly limited to the German language, a language of which the author has a basic, yet not thorough, understanding. However, the overall scope of the developments in the case in regard to the transition from agricultural and fishing communities to communities in which tourism plays a substantial role has been understandable. Findings One of the most important sectors that economically benefit the Wadden Sea region, especially on the Dutch and German Wadden islands, is tourism. While tourism development on the Dutch mainland is minimal, the sector considerably developed in the past few decades on the German mainland, generally as a result of declining yields through multifarious unfavorable developments in traditional sectors such as agriculture and fishing, amongst others. Throughout previous centuries, Norden-Norddeich possessed some small-scale tourism facilities; however, negative developments in those traditional sectors required the municipality to prevent an impasse situation, resulting in altering business models and upscaling tourism facilities. Initiatives in different layers (micro, meso and macro) were initiated and gradually intensified in order to develop Norden-Norddeich as a counter destination for the expensive German islands. Following the phases of transition, Norden-Norddeich gradually developed and can now be regarded as a stable and dynamic holiday destination as well as a system that nowadays almost completely adheres to tourism. It took Norden-Norddeich ten years to transition toward tourism. Presently, Norden-Norddeich is the most visited mainland destination at the German Wadden Sea coast. In contrast, small-scale activities are set up in the mainland part of the Wadden Sea area in the Netherlands, but miss out on effective collaboration between different stakeholders that are involved in both planning and management (such as policy makers) and executive roles (such as the people who organize activities and/or facilities). Furthermore, the area is managed in such a way that does not contribute yet to upscaling economic development, mostly as a result of regulatory issues that hinder such developments. However, increasing efforts by several stakeholders are being taken that should ultimately lead to a sustainable socio-economic development of the Dutch mainland part of the Wadden Sea area. Originality/value Analyzing the stages of transition on the German mainland of the Wadden area might function as an example for stakeholders in villages or cities located on the mainland of the Dutch Wadden to become aware of how processes of tourism transitions occur, what factors are needed to start off such a transition and what effects a transition might have on the revitalization of a certain area. Moreover, the case of Norden-Norddeich could stand out as an example for Dutch stakeholders in the Wadden region to perceive in what way a locked-in situation could be prevented or solved by shifting from one system to another by taking on a wide range of initiatives that might be led and stimulated by different actors.


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