Entrepreneurial motivation and small business growth in Rwanda

2015 ◽  
Vol 7 (3) ◽  
pp. 212-240 ◽  
Author(s):  
Emiel L Eijdenberg ◽  
Leonard J Paas ◽  
Enno Masurel
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Family Background ◽  
Primary Data ◽  
Small Business Owners ◽  
Business Growth ◽  
Developed Country ◽  
Content Type ◽  
Entrepreneurial Motivation ◽  
Small Business Growth

Purpose – The purpose of this study is to investigate the relationship between entrepreneurial motivation and small business growth in one of the poorest emerging countries: the African least developed country (LDC), Rwanda. Design/methodology/approach – On the basis of theoretical resources and a pre-study of interviews with local experts in Rwanda, the authors developed a survey for this study. Based on primary data from 133 Rwandan small business owners, the authors conducted an exploratory factorial analysis to uncover the underlying factors. Subsequently, the authors conducted regression analyses to test the hypotheses. Findings – The analyses show that the predictors for the growth of small businesses can be divided into three factors: one factor with a mix of motivations related to family background, necessity and opportunity motivations; one factor with items predominantly related to opportunity motivation; and one factor with items related to necessity motivation. The first factor has the strongest positive effect on small business growth followed by the second factor. The factor concerning necessity motivation was irrelevant for further inclusion in the regression model, due to insufficient reliability. Research limitations/implications – The study contributes to the debate in the literature about which entrepreneurial motivations affect the growth of small businesses in LDCs. Practical implications – The results reported in this study also have implications for how small business growth in LDCs can be supported and stimulated by policy-making practice. Originality/value – This study shows that entrepreneurial motivation is not a clear distinction between necessity and opportunity, but that a mix of motivations is important to assess the growth of small businesses in an LDC, which is an understudied context.

Decision-making and small business growth in Burundi

2017 ◽  
Vol 9 (1) ◽  
pp. 35-64 ◽  
Author(s):  
Emiel L. Eijdenberg ◽  
Leonard J. Paas ◽  
Enno Masurel
Keyword(s):  
Decision Making ◽  
Small Business ◽  
Firm Growth ◽  
Business Owners ◽  
Primary Data ◽  
Small Business Owners ◽  
Business Growth ◽  
Content Type ◽  
Uncertain Environment ◽  
Small Business Growth

Purpose This paper aims to investigate the effect of decision-making, in terms of the effectuation and causation orientation of small business owners, on the growth of their small businesses in an uncertain environment: Burundi. Design/methodology/approach On the basis of primary data from a pre-study of 29 expert interviews, a questionnaire was developed and was filled in by 154 small business owners in Burundi’s capital, Bujumbura. Subsequently, correlation analyses, a factor analysis and regression analyses were performed to test the hypotheses. Findings While, on the one hand, the findings show that small business owners who perceive the environment as uncertain are more effectuation-oriented than causation-oriented; on the other hand, the findings show that effectuation and causation orientations do not influence later small business growth. Therefore, other determinants for small business growth in an uncertain environment should be further explored. Originality/value This paper fills the research gap of decision-making in relation to small business growth from the entrepreneurs who are among the billion people who live in absolute poverty. On the basis of Western studies, effectuation might be more present in contexts of dealing with many uncertainties of future phenomena, and that it is often positively correlated with firm growth. In contrast, this paper shows that neither an effectuation orientation nor a causation orientation significantly affects small business growth in a context that can be assumed as highly uncertain.

scholarly journals The impact of personal attitudes on the growth ambitions of small business owners

2017 ◽  
Vol 24 (4) ◽  
pp. 850-862 ◽  
Author(s):  
Paul Braidford ◽  
Ian Drummond ◽  
Ian Stone
Keyword(s):  
Small Business ◽  
Critical Realism ◽  
Business Owners ◽  
Perceived Barriers ◽  
Small Business Owners ◽  
Business Growth ◽  
Content Type ◽  
Personal Attitudes ◽  
Small Business Growth ◽  
The Impact

Purpose The purpose of this paper is to provide an empirical evidence in support of widespread calls for new approaches to understanding small business growth, by exploring the use of non-positivist methods (e.g. critical realism) to analyse how owners’ innate dispositions shape growth in practice. Design/methodology/approach In 2014, a telephone survey was used to inform two focus groups and 29 in-depth interviews with small business owners throughout England, covering attitudes towards growth, the use of particular strategies and perceived barriers. Discourse analysis was used to develop a multi-layered explanatory model incorporating key ideas from critical realism and the work of Bourdieu. Findings Bourdieusian analysis reveals the existence of orientations among small business owners towards or against business growth. Such attitudes tend to impact upon their response to perceived barriers. Growth-inclined owners were willing to strategise for long-term benefit, in return for lower returns in the short term. Growth-resistant owners were more likely to view obstacles as absolute, stating that they cannot grow their firms as a result. Practical implications Removing or reducing obstacles may not encourage growth if motivations and attitudes of owners do not change to embrace more growth-oriented positions. Banks’ lending practices, for example, were seen by many as problematic, but growth-oriented owners were more willing to seek and use alternatives to raise funds for growth. Originality/value The authors suggest that entrepreneurship researchers should look beyond positivist research to epistemologies that provide more multi-layered modes of explanation.

scholarly journals The “Fairness Paradox” and “Small-Firm Growth Resistance Strategies”

2015 ◽  
Vol 11 (3) ◽  
pp. 154-175 ◽  
Author(s):  
Farid Ullah ◽  
Robert Smith
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Firm Growth ◽  
Peer Group ◽  
Small Business Owners ◽  
Employment Practices ◽  
Content Type ◽  
Business Context ◽  
The Family ◽  
Small Business Growth

Purpose – The purpose of this paper is to examine and explore why “Small-Businesses” resist employing outside the immediate family and investigate the employee as an outsider and entrepreneurial resource. Design/methodology/approach – The authors review the literature on barriers to small-business growth concentrating on key empirical and theoretical studies. The authors use empirical data from the Federation of Small Business in which informants commented on growth and employing outside the family. Findings – The findings suggest that small business owners adopt a polemical stance, arguing that a barrage of employment regulations deters them from employing outsiders because doing so brings trouble in terms of costs such as insurance, taxes, paperwork, leave (maternity and paternity) entitlement, etc. They argue that employing from inside the family or ones peer group is much cheaper, convenient and less hassle. This ignores the entrepreneurial employee as a potential ingredient of growth and points to a paradox whereby the very values and emotions characterized by fairness of which of “smallness” and “familialness” is composed compound the issues of discrimination central to the debate. Research limitations/implications – The paper offer important insights for growth issues among small businesses and challenge the contemporary equilibrium in terms of small “family-orientated” business philosophy relating to employment practices. Ideologically, the entrepreneur is an “outsider” fighting the establishment, yet paradoxically, in a small-business context s/he becomes the establishment by employing outsiders. This results in the fairness vs unfairness paradox. Originality/value – The paper contributes to the existing knowledge and understanding on growth issues among small businesses by illuminating a paradoxical insider vs outsider tension.

scholarly journals HIRINGLAB.io: An exploration into the commercial potential of an innovative connection service that provides work experience opportunities for young adults to drive small business growth

2021 ◽  
Author(s):  
◽  
Darshana Patel
Keyword(s):  
Young Adults ◽  
Small Business ◽  
Work Experience ◽  
Small Businesses ◽  
Design Thinking ◽  
Small Business Owners ◽  
Business Growth ◽  
Start Up ◽  
Small Business Growth ◽  
Development And Validation

<p>Technology has changed the way that young adults begin their careers. Exploring potential work opportunities is easier to do now than 20 years ago with the rise of technology. However, with the rise of job accessibility a number of challenges for young adults looking to get ahead have arisen. Work experience is crucial in making the transition from simply getting a job, to starting a career that will have meaning and impact. In contrast, technology has affected the way that small businesses survive, and then grow. It can be challenging for small businesses to grow with limited resources, in a competitive commercial environment. Small business owners in the start-up and growth phases in particular struggle, to fill the gaps in their capabilities with little time, money or the necessary skills and expertise.   This research, in partnership with Accenture, explores the commercial potential of an innovative connection service. The proposed service will provide work experience opportunities for young adults that will drive small business growth. Research involved the application of lean start-up methodology and service design thinking principles across three phases; Phase One Market Development and Validation, Phase Two Service Development and Validation, and Phase Three Business Case Development. Phase One involved interviewing 20 young adults and 10 small business owners to identify the specific market segments that the service could benefit. Phase Two involved matching two pairs of suitable young adults and small businesses from Phase One, to trial the prototyped service solution. Phase Three involved conducting a retrospective focus group with the trial participants to understand thoughts and feelings about the service as potential customers.  Findings from each research phase indicate that young adults and small businesses are suitable markets for the service and that the service concept is feasible. A major finding from Phase One was that certain characteristics improved the potential of some market segments for the proposed service over others. For young adults this meant having the necessary knowledge, skills and confidence to solve a small business problem. For small businesses those with zero employees in particular had suitable gaps to fill and were open to young adults helping them. In Phase Two, critical success factors were identified for the service, most significantly a key indicator of success for the relationship was understanding a person’s work purpose, culture and values. Phase Three found that the success of the match reflected on perception of service quality. It highlighted that young adults and small businesses preferred short term, meaningful engagements.   Research findings led to recommendations of suitable development strategies and a proposed business model for the service. A key recommendation is to incorporate both lean start-up methodology and service design thinking as the main development strategy, for fast iteration with the customer at the centre of decisions made. It was also recommended that the service adopt a freemium marketplace business model where users are able to view potential jobs, at no cost but engage in the customised matching service on a subscription basis. The implementation and success of this service could ultimately change how young adults seek work experience and differentiate themselves in competitive job markets. For small businesses, the service could offer an affordable tool in seeking talent to overcome business shortcomings and ultimately achieving growth.</p>

scholarly journals HIRINGLAB.io: An exploration into the commercial potential of an innovative connection service that provides work experience opportunities for young adults to drive small business growth

2021 ◽  
Author(s):  
◽  
Darshana Patel
Keyword(s):  
Young Adults ◽  
Small Business ◽  
Work Experience ◽  
Small Businesses ◽  
Design Thinking ◽  
Small Business Owners ◽  
Business Growth ◽  
Start Up ◽  
Small Business Growth ◽  
Development And Validation

<p>Technology has changed the way that young adults begin their careers. Exploring potential work opportunities is easier to do now than 20 years ago with the rise of technology. However, with the rise of job accessibility a number of challenges for young adults looking to get ahead have arisen. Work experience is crucial in making the transition from simply getting a job, to starting a career that will have meaning and impact. In contrast, technology has affected the way that small businesses survive, and then grow. It can be challenging for small businesses to grow with limited resources, in a competitive commercial environment. Small business owners in the start-up and growth phases in particular struggle, to fill the gaps in their capabilities with little time, money or the necessary skills and expertise.   This research, in partnership with Accenture, explores the commercial potential of an innovative connection service. The proposed service will provide work experience opportunities for young adults that will drive small business growth. Research involved the application of lean start-up methodology and service design thinking principles across three phases; Phase One Market Development and Validation, Phase Two Service Development and Validation, and Phase Three Business Case Development. Phase One involved interviewing 20 young adults and 10 small business owners to identify the specific market segments that the service could benefit. Phase Two involved matching two pairs of suitable young adults and small businesses from Phase One, to trial the prototyped service solution. Phase Three involved conducting a retrospective focus group with the trial participants to understand thoughts and feelings about the service as potential customers.  Findings from each research phase indicate that young adults and small businesses are suitable markets for the service and that the service concept is feasible. A major finding from Phase One was that certain characteristics improved the potential of some market segments for the proposed service over others. For young adults this meant having the necessary knowledge, skills and confidence to solve a small business problem. For small businesses those with zero employees in particular had suitable gaps to fill and were open to young adults helping them. In Phase Two, critical success factors were identified for the service, most significantly a key indicator of success for the relationship was understanding a person’s work purpose, culture and values. Phase Three found that the success of the match reflected on perception of service quality. It highlighted that young adults and small businesses preferred short term, meaningful engagements.   Research findings led to recommendations of suitable development strategies and a proposed business model for the service. A key recommendation is to incorporate both lean start-up methodology and service design thinking as the main development strategy, for fast iteration with the customer at the centre of decisions made. It was also recommended that the service adopt a freemium marketplace business model where users are able to view potential jobs, at no cost but engage in the customised matching service on a subscription basis. The implementation and success of this service could ultimately change how young adults seek work experience and differentiate themselves in competitive job markets. For small businesses, the service could offer an affordable tool in seeking talent to overcome business shortcomings and ultimately achieving growth.</p>

Comparing small business owner and voter beliefs regarding constraints on business growth

2020 ◽  
Vol 9 (3) ◽  
pp. 329-341
Author(s):  
Trey Malone ◽  
Antonios M. Koumpias
Keyword(s):  
Small Business ◽  
Policy Design ◽  
Business Owners ◽  
Entrepreneurial Activity ◽  
Primary Data ◽  
Small Business Owners ◽  
Business Owner ◽  
Linear Regression Models ◽  
Small Business Owner ◽  
Content Type

PurposeThis research note compares voter opinions regarding small business entrepreneurial activity to opinions of small business owners and links any divergence in perceptions to realized suboptimal entrepreneurial growth policy.Design/methodology/approachPrimary data collection via best–worst scaling and estimation of linear regression models.FindingsResults suggest that small business owners are less concerned about issues such as foreign competition, estate/death taxes, oil prices and labor union demands but are more concerned with domestic competition, income taxes, regulatory burdens and availability of credit from lenders.Social implicationsThe authors find major discrepancies in opinions about trade policy and business financing, which may lead to policy design that hinders entrepreneurship given evidence that politicians do respond to voters' opinions (Autor et al., 2016).Originality/valueIt represents the first empirical assessment of differences between voter and small business owner perspectives on entrepreneurial policy. An immediate policy implication includes the need to provide additional avenues of communication of entrepreneurs' concerns.

scholarly journals Are international small business owners really that different?

2019 ◽  
Vol 27 (1) ◽  
pp. 92-117
Author(s):  
Sarah Gundlach ◽  
Andre Sammartino
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Owners ◽  
Small Business Owners ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Individual Traits ◽  
Tolerance For Ambiguity ◽  
The Impact ◽  
Do So

Purpose The purpose of this paper is to investigate the impact of individual traits and attributes on the entrepreneurial and internationalization actions of Australian businesswomen, many of whom run small businesses. Design/methodology/approach This study is exploratory and quantitative, based on a questionnaire survey of 323 Australian businesswomen. Drawing upon the extant literature on internationalization, gender and entrepreneurship, the study explores two micro-foundational relationships of interest – personality and capability assessment differences between female business owners and their employed counterparts, and the impact of such traits and assessments on their internationalization. A further question is explored in terms of any differentials in perceptions of barriers in internationalization. Findings The findings show key personality dimensions do not differ dramatically between Australian businesswomen working in their own businesses (i.e. entrepreneurs) or as employees in organizations, while there are surprisingly few differences between women who are engaged internationally and those yet to do so. When comparing the female entrepreneurs and employees, in particular, the findings around tolerance for ambiguity and management efficacy are notably counterintuitive. This leads to the development of testable propositions to refine the causal claims in this domain. Practical implications The study calls into question the distinctiveness of entrepreneurs and entrepreneurial endeavors, at least for female businesswomen. Originality/value By including entrepreneurs and employees, women who have engaged internationally and those that are yet to do so, the study avoids some of the potential self-selection and confirmation biases inherent in studies of only entrepreneurs or small business owners. The investigation of individual traits, attributes and experiences as micro-foundations for internationalization motivations challenges existing theories of small business expansion.

scholarly journals Focused training programmes for solving growth problems of very small businesses

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
S. Perks ◽  
E. E. Smith
Keyword(s):  
Small Business ◽  
Financial Management ◽  
Small Businesses ◽  
Computer Training ◽  
Black Business ◽  
Business Growth ◽  
Specific Focus ◽  
Growing Pains ◽  
Small Business Growth ◽  
Training Programmes

Purpose and objectives: The purpose of the study is to investigate the various types of focused training programmes that should be designed for eliminating or preventing small business growth problems. To help achieve this main objective, the following secondary goals are identified : To highlight the role and nature of entrepreneurial training. To identify possible focused training programmes for solving very small business problems. To determine how training programmes should be structured to target very small business growth problems. To explore which other method(s), besides training programmes could be uitilised for solving very small black business entrepreneurs' growth problems. To provide trainers with guidelines in designing focused training programmes for solving very small business problems.Problem investigated: South African entrepreneurs have a poor skills record, which inhibits small business growth. The needs of a business changes as the business grows, resulting in growing pains for the very small business entrepreneur. Successful entrepreneurs are not necessarily academically inclined and often learn in a more dynamic, non-linear environment, therefore various specific focused training programmes need to be designed that can assist very small business entrepreneurs in eliminating or preventing small business growth problems.Methodology: A qualitative study was done, in which an empirical survey was conducted by means of a series of in-depth interviews with ten very small black business entrepreneurs.Findings: The empirical results identified seven types of training programmes focusing on financial management computer training, operations management, people management, marketing management, management and investment management. Other training programmes indicated were stress management, time management and security management. Within each of these types of training programmes specific focus areas were identified.Value of the research: The value of the research lies in the fact that specific focus areas were identified within the training programmes. Other studies have attempted to identify training programmes but the content thereof was not necessarily linked to the problems that very small businesses experienced, especially when attempting to grow. Time-, staff- and financial constraints regarding training programmes can be overcome.Conclusions: Training programmes should focus on specific training areas, be after hours and be well publicised. Computer training should preferably be on site on a one-to-one basis. Training programmes should suit the skills level of the very small business entrepreneurs and be broken up into smaller sessions to ensure understanding and meeting time constraints.

scholarly journals PENGARUH PERSEPSI KEADILAN PAJAK DALAM PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 46 TAHUN 2013 TERHADAP KEPATUHAN DALAM MEMENUHI KEWAJIBAN PERPAJAKAN

2018 ◽  
Vol 8 (2) ◽  
Author(s):  
SOLIYAH WULANDARI ◽  
ANDRIE BUDIAJI
Keyword(s):  
Regression Analysis ◽  
Small Business ◽  
Multiple Regression Analysis ◽  
Small Businesses ◽  
Business Owners ◽  
Primary Data ◽  
Small Business Owners ◽  
Tax Rates ◽  
Self Interest ◽  
Tax Fairness

The purpose of this research is to analyze the influence of perceptions of tax fairness towards compliance in fulfilling taxation of obligations. Azmi and Perumal (2008) identified five of tax fairness dimension: general fairness, exchanges with government, special provisions, tax rates, and self-interest towards individual taxpayers compliance.This research used primary data obtained by distributing questionnaire to micro and small business owners in Center of Promotion and Marketing Horticultural Department of Marine and Agriculture DKI Jakarta. Multiple regression analysis was used to identify dimensions of tax fairness that influence compliance in fulfilling taxation obligations.The results of this research indicate that general fairness and the structure of tax rates influence towards compliance of micro and small businesses in fulfilling taxation obligations, while exchange with government, special provisions, and self-interest does not influence towards compliance of micro and small businesses in fulfilling taxation obligations.  

scholarly journals Effect of Microfinance Products on Small Business Growth: Emerging Economy Perspective

2018 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Prince Gyimah ◽  
Williams Kwasi Boachie
Keyword(s):  
Small Business ◽  
Emerging Economies ◽  
Financial Services ◽  
Small Businesses ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Emerging Economy ◽  
Microfinance Institutions ◽  
Business Growth ◽  
Small Business Growth

Small businesses play significant role to the economic stability and development of emerging economies, and access to financial services is crucial to their growth and performance. This study seeks to ascertain whether microfinance products such as loans, savings, insurance, and education effects small business growth in Ghana. The study uses descriptive and inferential statistics on responses of 248 small business owners for data analysis. Using a multiple linear regression analysis, the study found that all the microfinance product or services positively affects small business growth, and the greatest influence is micro loans. This study contributes massively to exact literature to the growth of microfinance institutions (MFIs) and small businesses in emerging economy, Ghana. The study can assist MFIs to assess the effectiveness of their product or services, and can also serves as a guide to an effective utilization of available scarce resources leading to growth of small businesses in emerging economies.

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