IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v16y2022i4d10.1007_s11846-021-00477-6.html
   My bibliography  Save this article

Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit

Author

Listed:
  • Dmitry Khanin

    (Alfaisal University)

  • Robert Rosenfield

    (Duke University Corporate Education
    Nazarbayev University)

  • Raj V. Mahto

    (The University of New Mexico)

  • Cherry Singhal

    (The University of New Mexico)

Abstract

Entrepreneurship is a phenomenon associated with wealth generation and economic development in a region or country. However, despite significant advancement in our understanding of this complex concept our understanding of its heterogeneity in countries across the world is limited. In this paper, we utilize barriers to entrepreneurship to explain that heterogeneity. We define barriers to entrepreneurship as conditions that prevent opportunity recognition and/or opportunity pursuit. We propose that cognitive-psychological factors may lead to discovery- lifestyle and growth–well-being barriers; social-institutional factors may create access and legitimacy barriers; and economic-operational factors may erect location and magnitude barriers. Using an abduction method, we enrich this theory by analyzing the stories of entrepreneurs and the coping strategies they use to overcome barriers to entrepreneurship.

Suggested Citation

  • Dmitry Khanin & Robert Rosenfield & Raj V. Mahto & Cherry Singhal, 2022. "Barriers to entrepreneurship: opportunity recognition vs. opportunity pursuit," Review of Managerial Science, Springer, vol. 16(4), pages 1147-1167, May.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:4:d:10.1007_s11846-021-00477-6
    DOI: 10.1007/s11846-021-00477-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-021-00477-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-021-00477-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pissarides, Francesca, 1999. "Is lack of funds the main obstacle to growth? ebrd's experience with small- and medium-sized businesses in central and eastern europe," Journal of Business Venturing, Elsevier, vol. 14(5-6), pages 519-539.
    2. João J. M. Ferreira & Cristina I. Fernandes & Sascha Kraus, 2019. "Entrepreneurship research: mapping intellectual structures and research trends," Review of Managerial Science, Springer, vol. 13(1), pages 181-205, February.
    3. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    4. Belousova, Olga A. & Groen, Aard J. & Ouendag, Aniek M., 2020. "Opportunities and barriers for innovation and entrepreneurship in orphan drug development," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Aidis, Ruta & Adachi, Yuko, 2007. "Russia: Firm entry and survival barriers," Economic Systems, Elsevier, vol. 31(4), pages 391-411, December.
    6. Thomas M Begley & Wee-Liang Tan, 2001. "The Socio-Cultural Environment for Entrepreneurship: A Comparison Between East Asian and Anglo-Saxon Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 537-553, September.
    7. Alicia Mas-Tur & Sascha Kraus & Mario Brandtner & Ralf Ewert & Wolfgang Kürsten, 2020. "Advances in management research: a bibliometric overview of the Review of Managerial Science," Review of Managerial Science, Springer, vol. 14(5), pages 933-958, October.
    8. James J. Chrisman & W. Ed McMullan, 2000. "A Preliminary Assessment of Outsider Assistance as a Knowledge Resource: The Longer-Term Impact of New Venture Counseling," Entrepreneurship Theory and Practice, , vol. 24(3), pages 37-53, April.
    9. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    10. Thomas M. Begley & Wee-Liang Tan & Herbert Schoch, 2005. "Politico–Economic Factors Associated with Interest in Starting a Business: A Multi–Country Study," Entrepreneurship Theory and Practice, , vol. 29(1), pages 35-55, January.
    11. Kwapisz, Agnieszka, 2019. "Do government and legal barriers impede entrepreneurship in the U.S.? An exploratory study of perceived vs. actual barriers," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    12. Tatiana S. Manolova & Rangamohan V. Eunni & Bojidar S. Gyoshev, 2008. "Institutional Environments for Entrepreneurship: Evidence from Emerging Economies in Eastern Europe," Entrepreneurship Theory and Practice, , vol. 32(1), pages 203-218, January.
    13. Robert A. Baron & Michael D. Ensley, 2006. "Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs," Management Science, INFORMS, vol. 52(9), pages 1331-1344, September.
    14. Pissarides, Francesca & Singer, Miroslav & Svejnar, Jan, 2003. "Objectives and constraints of entrepreneurs: evidence from small and medium size enterprises in Russia and Bulgaria," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 503-531, September.
    15. Juita-Elena (Wie) Yusuf, 2014. "Impact of start-up support through guided preparation," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 3(1), pages 72-95, April.
    16. Dimo Dimov, 2007. "From Opportunity Insight to Opportunity Intention: The Importance of Person–Situation Learning Match," Entrepreneurship Theory and Practice, , vol. 31(4), pages 561-583, July.
    17. Amarjit Gill & Nahum Biger & Vivek Nagpal, 2011. "Barriers to small business creations in India," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 13(4), pages 395-410.
    18. Chrisman, James J. & McMullan, Ed & Hall, Jeremy, 2005. "The influence of guided preparation on the long-term performance of new ventures," Journal of Business Venturing, Elsevier, vol. 20(6), pages 769-791, November.
    19. Sascha Kraus & Matthias Breier & Paul Jones & Mathew Hughes, 2019. "Individual entrepreneurial orientation and intrapreneurship in the public sector," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1247-1268, December.
    20. Amarjit Gill & Nahum Biger & Vivek Nagpal, 2011. "Barriers to small business creations in Canada," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 14(2), pages 245-257.
    21. Thomas Hellmann, 1998. "The Allocation of Control Rights in Venture Capital Contracts," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 57-76, Spring.
    22. Tatiana A. Iakovleva & Lars Kolvereid & Marjan J. Gorgievski & Øystein Sørhaug, 2014. "Comparison of perceived barriers to entrepreneurship in Eastern and Western European countries," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 18(2/3), pages 115-133.
    23. Noam Wasserman, 2003. "Founder-CEO Succession and the Paradox of Entrepreneurial Success," Organization Science, INFORMS, vol. 14(2), pages 149-172, April.
    24. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    25. Michail Kouriloff, 2000. "Exploring Perceptions of A Priori Barriers to Entrepreneurship: A Multidisciplinary Approach," Entrepreneurship Theory and Practice, , vol. 25(2), pages 59-80, December.
    26. Christos N. Pitelis, 2009. "The Sustainable Competitive Advantage and Catching-up of Nations: FDI, Clusters and the Liability (Asset) of Smallness," Management International Review, Springer, vol. 49(1), pages 95-120, February.
    27. Dimo Dimov, 2007. "Beyond the Single-Person, Single-Insight Attribution in Understanding Entrepreneurial Opportunities," Entrepreneurship Theory and Practice, , vol. 31(5), pages 713-731, September.
    28. Hung Manh Chu & Cynthia Benzing & Charles Mcgee, 2007. "Ghanaian And Kenyan Entrepreneurs: A Comparative Analysis Of Their Motivations, Success Characteristics And Problems," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 295-322.
    29. Dean A. Shepherd & Holger Patzelt, 2017. "Trailblazing in Entrepreneurship," Springer Books, Springer, number 978-3-319-48701-4, January.
    30. Gideon D. Markman & David B. Balkin & Robert A. Baron, 2002. "Inventors and New Venture Formation: the Effects of General Self–Efficacy and Regretful Thinking," Entrepreneurship Theory and Practice, , vol. 27(2), pages 149-165, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luis J. Callarisa-Fiol & Miguel Ángel Moliner-Tena & Rosa Rodríguez-Artola & Javier Sánchez-García, 2023. "Entrepreneurship innovation using social robots in tourism: a social listening study," Review of Managerial Science, Springer, vol. 17(8), pages 2945-2971, November.
    2. Miguel-Ángel Galindo-Martín & María-Soledad Castaño-Martínez & María-Teresa Méndez-Picazo, 2023. "Digitalization, entrepreneurship and competitiveness: an analysis from 19 European countries," Review of Managerial Science, Springer, vol. 17(5), pages 1809-1826, July.
    3. Rigtering, Coen & Niemand, Thomas & Phan, Vinh & Gawke, Jason, 2024. "Intrapreneurs, high performers, or hybrid stars? How individual entrepreneurial orientation affects employee performance," Journal of Business Research, Elsevier, vol. 176(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van der Zwan Peter & Verheul Ingrid & Thurik Roy, 2011. "The Entrepreneurial Ladder in Transition and Non-Transition Economies," Entrepreneurship Research Journal, De Gruyter, vol. 1(2), pages 1-20, March.
    2. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    3. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    4. Vandor, Peter & Franke, Nikolaus, 2016. "See Paris and… found a business? The impact of cross-cultural experience on opportunity recognition capabilities," Journal of Business Venturing, Elsevier, vol. 31(4), pages 388-407.
    5. Maksim Belitski & Julia Korosteleva & Julia Korosteleva, 2012. "Entrepreneurial Dynamics and Higher Education Institutions: Evidence from the Post-Communist World," UCL SSEES Economics and Business working paper series 120, UCL School of Slavonic and East European Studies (SSEES).
    6. Francisco Díez-Martín & Alicia Blanco-González & Camilo Prado-Román, 2016. "Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1079-1102, December.
    7. Nerine Mary George & Vinit Parida & Tom Lahti & Joakim Wincent, 2016. "A systematic literature review of entrepreneurial opportunity recognition: insights on influencing factors," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 309-350, June.
    8. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    9. Andranik Tumasjan & Isabell Welpe & Matthias Spörrle, 2013. "Easy Now, Desirable Later: The Moderating Role of Temporal Distance in Opportunity Evaluation and Exploitation," Entrepreneurship Theory and Practice, , vol. 37(4), pages 859-888, July.
    10. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    11. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    12. Valliere, Dave, 2013. "Towards a schematic theory of entrepreneurial alertness," Journal of Business Venturing, Elsevier, vol. 28(3), pages 430-442.
    13. Linda Edelman & Helena Yli–Renko, 2010. "The Impact of Environment and Entrepreneurial Perceptions on Venture-Creation Efforts: Bridging the Discovery and Creation Views of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(5), pages 833-856, September.
    14. Jones, Raymond J. & Barnir, Anat, 2019. "Properties of opportunity creation and discovery: Comparing variation in contexts of innovativeness," Technovation, Elsevier, vol. 79(C), pages 1-10.
    15. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    16. Shepherd, Dean A. & Sattari, Rose & Patzelt, Holger, 2022. "A social model of opportunity development: Building and engaging communities of inquiry," Journal of Business Venturing, Elsevier, vol. 37(1).
    17. Peter Klein & Per Bylund, 2014. "The place of Austrian economics in contemporary entrepreneurship research," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 259-279, September.
    18. Blume, Brian D. & Covin, Jeffrey G., 2011. "Attributions to intuition in the venture founding process: Do entrepreneurs actually use intuition or just say that they do?," Journal of Business Venturing, Elsevier, vol. 26(1), pages 137-151, January.
    19. Enrique Claver-Cortés & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Lorena Ruiz-Fernández & Eduardo Sánchez-García, 2020. "Explanatory Factors of Entrepreneurship in Food and Beverage Clusters in Spain," Sustainability, MDPI, vol. 12(14), pages 1-22, July.
    20. Matthew McCaffrey, 2014. "On the Theory of Entrepreneurial Incentives and Alertness," Entrepreneurship Theory and Practice, , vol. 38(4), pages 891-911, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rvmgts:v:16:y:2022:i:4:d:10.1007_s11846-021-00477-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.