Industry choice by young entrepreneurs in different country settings: the role of human and financial capital¹

1 Research has been conducted with financial support from Russian Science Foundation grant (project No. 14-18-01093).

Abstract

Entrepreneurial entry happens as a consequence of a general choice of an individual to become an entrepreneur. While most entrepreneurial entry studies rarely consider an industry choice to be an aspect of entrepreneurial decision making process, we address this issue taking into account individual, industrial, and country specific attributes. Using data from the Global University Entrepreneurial Spirit Students’ Survey (2013–2014) on young nascent entrepreneurs and extending it with objective indicators derived from World Bank, Global Entrepreneurship Monitor, and International Property Rights Index datasets, we investigate how various factors impact the choice between knowledge-intensive and capital-intensive industries. Drawing on the RBV and contingency approach, we link an industry choice to the level of human capital development and access to financial capital testing for possible country-specific moderation effects. Our study contributes to entrepreneurial entry research stream extending the understanding of entrepreneurial entry decision making nuances related to individual access to resources and both industryand country-level contingencies.

Keywords:

• entrepreneurial entry
• industry choice
• young entrepreneurship
• innovationdriven economy
• efficiency-driven economy
• GUESSS

JEL Classification:

• L26
• M29

Notes

1 Research has been conducted with financial support from Russian Science Foundation grant (project No. 14-18-01093).

Additional information

Notes on contributors

Dmitri Knatko

Dmitri KNATKO is an assistant professor of Strategic and International Management Department at St.Petersburg University Graduate School of Management, Russia and an active entrepreneur. Dmitri has participated in several research projects studying influence of institutional aspects of emerging market conditions on small and medium sized business and management transition. His research interests are entrepreneurship, institutional theory, corruption, business development, management transition. He is an author of six articles in academic journals including Journal of Business Economics and Management, International Journal of Entrepreneurial Behaviour & Research, Journal of Ethics & Entrepreneurship.

Galina Shirokova

Galina SHIROKOVA (Corresponding author) is a Professor of Strategic and International Management Department at St.Petersburg University Graduate School of Management, Russia. Her research interests include entrepreneurship in emerging markets, entrepreneurial orientation, and student entrepreneurship. Galina Shirokova is Director of the Centre for Entrepreneurship in St. Petersburg University and one of the founders of the Russian Association for Entrepreneurship Education. She is an author of more than 90 publications, including 60 articles in academic journals and 18 cases about Russian entrepreneurial firms. Her publications have appeared in such journals as Entrepreneurship Theory & Practice, Journal of Small Business Management, Journal of Business Economics and Management, European Journal of International Management, Journal of Entrepreneurial Behaviour & Research, Journal for East European Management Studies, International Journal of Entrepreneurship and Innovation among others.

Karina Bogatyreva

Karina BOGATYREVA is a junior researcher at St.Petersburg University Graduate School of Management, Russia. She holds a bachelor degree in international management and a master degree in economics. She has recently graduated from the GSOM SPbU doctoral program having defended her dissertation to acquire the candidate of sciences degree. Her research interests are entrepreneurial orientation, student entrepreneurship, effectuation theory, and intention-behaviour translation in entrepreneurship.