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Purpose This study aims to understand the necessity of entrepreneurship in a poor emerging economy, where the supportive entrepreneurial ecosystem is not in place. Design/methodology/approach In the years 2015 and 2019, this study survey first-time small-scale emerging entrepreneurs within the new entrepreneurial ecosystem in Cuba. Findings The results suggest that the entrepreneurial environment has deteriorated and declined over this period. The study contributes to the understanding of high-vulnerability regions and poverty conditions as found in some emerging economies. This study contributes to the wider literature on policies that inhibit or stimulate necessity entrepreneurship in emerging economies. Originality/value The study responds to calls for a better understanding by offering new insights into necessity entrepreneurship in challenging contexts under poverty and crisis; and the ways for recovery. It provides insights into the underexplored Cuban economy.

PurposeThis study aims to examine the extent to which board size, the use of power by venture capital investors and entrepreneurs’ interpersonal tactics such as persuasion to sway board decisions, influence the long-term survival of start-ups.Design/methodology/approachThis study used a mixed-methods approach. The quantitative part is based on data collected from 179 chief executive officers (CEOs) of high-tech start-ups community financed by venture capitalists (VCs) in Israel of which 59 did not survive. To achieve a better understanding of these findings, semi-structured interviews with 12 entrepreneurs were conducted.FindingsSmaller boards were positively associated with venture survival. The use of power by VC investors positively influenced start-up survival. CEO persuasion had a negative effect on venture survival; however, its interaction with board size suggests that it had a lesser effect on very small boards.Practical implicationsAlthough investors’ control over decision-making contributes to long-term survival, entrepreneurs should be aware of the possible detrimental effects of exercising a high level of persuasion in board processes. The findings also suggest that a small board size is preferable for start-up survival.Originality/valueExploring the effect of board processes on venture survival is considered complex. A unique sample of high-technology start-ups consisting of both surviving and failed start-ups was analyzed to explore the effects of persuasion and power in board processes.

This study explores differentiating factors in employment growth between young small and medium-sized enterprises in rural regions and their application in developing economies. We applied a mixed-method approach, including a survey of 155 new ventures in Israel, an economy whose rural regions exhibit similarities to those of less developed countries, and 10 in-depth interviews with academics and practitioners. The results suggest that the economic development of rural areas through the cultivation of entrepreneurship should be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.

Purpose– This study aims to focus on how companies operating in international food commodity markets can improve their long-term competitiveness and profitability upon financial pressure. Management can choose between generic strategies of either cost leadership or enhanced value adding by differentiation and innovative marketing strategies. The aim of the paper is to highlight key findings from a case study perspective.Design/methodology/approach– The research is set within the farmed salmon sector in the world’s second largest producing country, Chile, which is also a fast growing emerging economy in Latin America. Semi-structured personal interviews were conducted with General Managers of this global industry.Findings– Unexpectedly, our findings show that executives preferred competitive strategy of cost reduction rather than differentiation. Based on previous research, we recommend managers of individual firms and trade associations to play down commoditisation and to pursue differentiation strategies with particular attention to emergent environmental attributes.Originality/value– Practitioners from Latin America may learn on empirical considerations of international marketing strategies taking this competitive global industry as an example. An overall cost leadership strategy is not sufficient in a mature industry, and customer-oriented strategies are needed more than production-oriented strategies. Clustered firms are recommended to benefit from differentiation strategies with particular attention to emergent environmental attributes.

This study explores common and different aspects of sustainability, in terms of survival and growth, between social and commercial ventures. The effects of nonhuman factors between a sample of social ventures and a sample of commercial ventures taken from the same environment in Israel were compared. Social ventures showed higher likelihood to survive and grow. Findings exhibit interesting similarities between the two types of entrepreneurship in regard to the significant effect of early market or community acceptance and the non-effect of early funding diversity on venture long-term sustainability. Further research is suggested to substantiate these findings and to explore other aspects of comparison between social and commercial entrepreneurship.

This paper reports the findings of the first academic study in Latin America, and one of the few in any emerging economy, to explore entrepreneurial perceptions and activity in peripheral geographic locations. A survey of experts included 139 respondents from three peripheral regions and two core regions in Chile. A key finding is that those located at the periphery perceived critical entrepreneurial resources and access to markets less favorably than their counterparts at the core, but surprisingly, they perceived greater business opportunity in their area. A further survey of 2,200 respondents concerning actual entrepreneurial activities among the total adult population revealed no differences between peripheral and core regions. This study revives the debate about specific regional policies for fostering the growth of local business, and the entrepreneurial framework conditions required at the regional level in emerging economies.

PurposeThis paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.Design/methodology/approachThe study was carried out in a region of Latin America where limited research has been conducted in terms of inter‐firm relationships. Managers from three key natural resources‐based industries in Chile participated in the survey; one of these industries constituted a well‐defined cluster whereas the other two did not. The survey assessed managers' perceptions of the benefits and opportunities of inter‐firm cooperation in strategic marketing activities.FindingsResults support the advantages of clusters. Managers of firms which are part of clustered industries tend to perceive more benefits and opportunities for inter‐firm co‐operation in marketing activities. Additionally, significant differences between clustered and non‐clustered industries in terms of their co‐operation behavior and objectives were found.Research limitations/implicationsThe findings shed light on strategies for the enhancement of inter‐firm cooperation in marketing, of particular value for marketers in small‐and‐medium sized enterprises. The paper suggests establishing new clusters and promoting more regional clusters policies since clustering seems to provide better and positive inter‐firm interaction leading to cooperation.Practical implicationsThere are lessons to be learned at national and regional levels for Latin American and emerging economies fostering new industry cluster policies.Originality/valueClustered firms and industries may result in more innovative marketing strategies at both local and international levels than non‐clustered firms. The authors encourage regional development bodies to foster more cooperation among firms and trade associations.

Purpose – The purpose of this paper is to is focus on the role of geographic co‐location in the development of firm‐level marketing externalities.Design/methodology/approach – A mail survey and quantitative analysis were used to examine the effect of co‐location on externalities. Fast growing salmon farming clusters in Scotland and Chile were chosen where most environmental variables could be controlled. These clusters enjoy business to business marketing practices.Findings – Respondents indicated several externalities yielded by co‐location such as buying intermediate goods, enhanced reputation and joint participation in trade fairs. However, other externalities such as providing access to new technology and referrals to other firms were only slightly indicated useful as produced by co‐location.Practical implications – Practitioners in the salmon farming industry are suggested to pursue inter‐cluster cooperation.Originality/value – While previous findings are conflicting, the contribution of this study w...

This paper seeks to explain an unexpected result of a previous quantitative study which suggested suboptimal evaluation by investors of the human capital of first time high tech venture founders. A literature review revealed two possible reasons for this finding: biases/heuristics and signalling. Six investors across three countries (one venture capitalist and one business angel each from the US, UK and Israel) with experience in investing in early stage high technology ventures were interviewed using an identical semi-structured interview protocol. This research design is appropriate for research that seeks to reflect back unexpected findings of previous quantitative research on the subjects of research. Interviewees were first asked to state their own investment criteria, and then presented with the results of the quantitative study and asked for their views. Previous research suggesting a gap between in-use and espoused criteria, and extensive use of gut feeling in decision-making, was supported. Inter...

This study explores the factors that cause differences in employment growth between young SMEs in core urban and peripheral regions and whether the uneven distribution of resources requires peripheral firms to draw on management consulting to achieve growth. We applied a mixed methods approach that included a quantitative study of 155 Israeli new ventures and 10 in-depth interviews with experts from academia and experienced practitioners. The use of consulting services by the surveyed SMEs is significantly higher in peripheral areas, and it was found to have a positive effect on SME growth in these areas. Raising capital through bank loans has a positive and significant effect on business growth, but only in peripheral areas. Regression results show that management consulting was beneficial for SMEs growth only for those located in peripheral regions. SMEs funded by money from family members grew less than the other firms. The economic development of peripheral areas needs to be carried out by providing p...

This exploratory study of motivation for entrepreneurship in later life extends the concept of active aging which in recent decades has attracted growing research attention in contemporary gerontology. Motivation of older adults toward entrepreneurship has been underexplored. Previous research shows mixed results regarding the effect of pull and push factors on entrepreneurial intentions. We employed a mixed methods approach while data was collected from a homogeneous cohort of retirees. Findings indicate that older adults' motivation to become entrepreneurs is centred mainly on pull factors such as self-fulfilment, increasing personal well-being, self-realisation and enhancing personal interests. Older adults may consider becoming entrepreneurs as part of their 'active aging' perceptions. These findings have implications for designated training programs for older adults that aim to promote their motivation and foster their skills to launch entrepreneurial activities. Highlights: 1) this research extends the concept of active aging by applying it to entrepreneurship; 2) entrepreneurs' in the third age are motivated by pull factors; 3) a process model of specific Gero-pull and Gero-push factors was developed; 4) we suggest an entrepreneurship training program designated for older people.

Previous research in different countries found peripheral regions are weaker than core regions in terms of indicators related to founding new ventures. The research proposition of this study is whether entrepreneurs located far away from core regions perceive difficulties in founding new ventures. Based on the global entrepreneurship monitor (GEM) methodology regarding entrepreneurial framework conditions, we interviewed 32 entrepreneurs located in regions of Southern Chile. The results show peripheral regions deprived in terms of entrepreneurial capabilities. The current policies of national and local governments in Chile tailored for fostering and facilitating entrepreneurial activity do not seem to be in favour of regional entrepreneurship and do not provide enough support to entrepreneurs located in peripheral areas. The objective of this paper is to address a common problem in emerging countries with diverse regions and can be of value to the entrepreneurial, policy and scholarly communities.

Radical strategic change, a common event in high technology new ventures, presents a conflict between potential opportunity and the risk of departing from a planned and approved strategy. This study explores investors' perspectives regarding RSC in their portfolio companies, based on interviews of 13 private investors who are active venture capitalists or business angels. The study explores the investors' views based on three theories of VC-entrepreneur relationships: agency theory, stewardship theory and game theory. The findings indicate three approaches taken by investors: avoidance, expectation and passivity. Since the success of radical strategic change is critical to venture performance, it is suggested that investors adopt the expectation approach, which optimises the prisoner's dilemma inherent in the VC-entrepreneur relationship during such events. The findings of this exploratory study indicate the need for further research.