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‘Entrepreneurs out of necessity’: a snapshot

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  • Markus Poschke

Abstract

‘Entrepreneurs out of necessity’ as identified by the Global Entrepreneurship Monitor (GEM) survey are a sizeable group across countries. This article documents that they tend to have low education, run smaller firms, expect their firms to grow less, but are likely to stay in the market. This evidence matters for policy supporting small businesses. It is a challenge for existing theories of heterogeneous firms and points to the importance of heterogeneous outside options.

Suggested Citation

  • Markus Poschke, 2013. "‘Entrepreneurs out of necessity’: a snapshot," Applied Economics Letters, Taylor & Francis Journals, vol. 20(7), pages 658-663, May.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:7:p:658-663
    DOI: 10.1080/13504851.2012.727968
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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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