Necessity entrepreneurship – the creation of firms out of unfavorable circumstances – is an increasingly important phenomenon due to the adverse labor market conditions stemming from the recent global crisis. Despite its importance, the existing literature has focused almost exclusively on opportunity-driven entrepreneurship. In this study, we set out to enhance knowledge of how the level of necessity experienced by a founder affects entrepreneurship. Specifically, we draw on organizational, sociological, and entrepreneurship theories to develop and empirically test a conceptual framework that predicts how, under the influence of increasing levels of necessity, a founder’s existing industry experience and the attractiveness of her home industry vis-à-vis external industries shape her industry choice and, thus, one of the most fundamental decisions in the creation of new organizations.
Nikiforou, Argyro; Dencker, John C.; and Gruber, Marc
"NECESSITY ENTREPRENEURS AND INDUSTRY CHOICE: UNEMPLOYMENT TO SELF-EMPLOYMENT TRANSITIONS DURING THE GREEK CRISIS (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 36
, Article 9.
Available at: https://digitalknowledge.babson.edu/fer/vol36/iss3/9