We survey 612 entrepreneurs who are members of microcredit programs across three developing countries to examine the determinants of firm employment. We find that for opportunity-motivated entrepreneurs, a greater number of employees are predicted by pre-entry means (managerial skill, pre-planning, and business expertise) with these relationships mediated by differentiation-related innovation. We find that necessity-motivated entrepreneurs do not seek innovation as a means to growth. Rather their efforts to increase firm employment are enhanced by a set of learned repertoires which we identify as resourcefulness. Specifically, we find behavioral resourcefulness and social resourcefulness increased the likelihood of higher firm employment for necessity-motivated entrepreneurs while financial resourcefulness was not significant.
Bradley, Steven W.; McMullen, Jeffery S.; Atmadja, Adwin; Simiyu, Edward; and Artz, Kendall
"SELF-EMPLOYED OR EMPLOYING OTHERS? PRE-ENTRY CAPABILITIES, ENTREPRENEURIAL ACTION, AND THE LEARNED RESOURCEFULNESS OF MICROCREDIT FIRM FOUNDERS,"
Frontiers of Entrepreneurship Research: Vol. 31
, Article 2.
Available at: http://digitalknowledge.babson.edu/fer/vol31/iss19/2