When capital does not matter: How entrepreneurship training buffers the negative effect of capital constraints on business creation

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Research summary: Entrepreneurship training is an effective means to promote business creation. We examine the effect of entrepreneurship training in conjunction with capital constraints, which entrepreneurs frequently experience in the context of developing countries and emerging economies. We develop a theoretical model that explains how entrepreneurship training attenuates the negative effect of capital constraints on business creation by developing financial mental models. To test our model, we conducted two longitudinal, randomized field experiments in developing countries. Our studies show a moderation effect of entrepreneurship training on the relationship between capital constraints and business creation. Results reveal that financial mental models mediated this moderation. The study demonstrates the role that entrepreneurship training plays in dealing with capital constraints in entrepreneurship in developing countries and emerging economies.
Managerial summary: A major barrier for entrepreneurship is capital constraints. In the context of developing countries and emerging economies, where people experience severe capital constraints, the common thinking suggests improving access to capital as the major solution for overcoming capital constraints in business creation. Our study provides empirical evidence for a different point of view: It emphasizes the importance of entrepreneurship training as an effective means to cope with capital constraints when starting businesses. Our findings show that entrepreneurship training reduces the negative effect of capital constraints on business creation through financial mental models. This implies that entrepreneurship training improves participants' financial mental models and hence supports them in starting businesses despite capital constraints. Consequently, we recommend promoting entrepreneurship training to overcome capital constraints in business creation.
OriginalspracheEnglisch
ZeitschriftStrategic Entrepreneurship Journal
Jahrgang14
Ausgabenummer3
Seiten (von - bis)369-395
Anzahl der Seiten27
ISSN1932-4391
DOIs
PublikationsstatusErschienen - 01.09.2020

Dokumente

DOI

Zuletzt angesehen

Publikationen

  1. Modellierung von Lesekompetenz
  2. Erweiterung des Emissionshandels löst aktuelles Klimaschutzproblem nicht
  3. Bewegung an der Wand
  4. Betriebsräte und andere Formen der betrieblichen Mitarbeitervertretung
  5. § 315 c Inhalt der nichtfinanziellen Konzernerklärung
  6. US policy spillover(?) – China's accession to the WTO and rising exports to the EU
  7. Cultural Leadership in Practice
  8. Nachhaltigkeitsberichterstattung nach der CSRD
  9. On Hypo-Real Models, or Global Climate Change: A Challenge for the Humanities
  10. Affective States and Risky Driving Behavior of Novice and Young Drivers
  11. Environmental Management Accounting: Innovation or Managerial Fad?
  12. Lerngelegenheiten im niedersächsischen Langzeitpraktikum
  13. Multiscale analysis for the bio-heat transfer equation - The nonisolated case
  14. Kooperative Bearbeitung von Wertkonflikten im Küstenschutz
  15. Mystery shopping
  16. Kritik, partiale Perspektive und kapitalistische Totalität
  17. Soziale Unterschiede in der Gesundheitskompetenz von Studierenden
  18. Operative Umsetzung einer "Vertriebsorientierung"
  19. Geistesgeschichte der Technik als 'Kritik der Fortschrittskritik'
  20. Environmental Management Accounting
  21. Crystal structures of 1-2-(dicyclohexylphosphinophenyl)pyrol-2- dicyclohexylphosphino-rhodium(I) norborna-2,5-diene tetrafluoroborate tetrahydrofuran hemisolvate, [Rh(C 34H 5INP 2)(C 7H 8)] [BF 4] · 0.5C 4H 8O, and 1-2-(dicyclohexylphosphinophenyl)-pyrol-2- dicyclohexylphosphino-rhodium(I) (Z,Z)-cycloocta...
  22. Personality Across the Lifespan
  23. Überzeugung in der Politik, Grundzüge einer Diskurstheorie internationalen Regierens
  24. Landscape-scale biodiversity governance
  25. Simulation of economic losses from tropical cyclones in the years 2015 and 2050: the effects of anthropogenic climate change and growing wealth
  26. Responses to Thanks in Ireland, England and Canada