Doing Business Involuntarily: Evidence On Determinants Of Necessity Entrepreneurship From The Greek Periphery

This research focuses on the phenomenon of necessity entrepreneurship, whereby individuals opt for entrepreneurship as a second-best career alternative, having failed to obtain an acceptable salaried occupation so far. Despite risk aversion designating the Greek cultural context, necessity entrepreneurship has been spreading rapidly out of shortage of vocational opportunities. Qualitative data was gathered through series of in-depth interviews with small businessmen in a semi-urban community. A process model has been elaborated in order to depict forces that drive inhabitants of the Greek periphery into necessity business. Findings include the higher propensity for failure among necessity entrepreneurs compared to opportunity entrepreneurs, mostly due to the discouraging institutional framework, lack of adequate preparation, deficient business skills, and absence of a supportive social network.