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Evaluating The Motives Of Informal Entrepreneurs: Some Lessons From Ukraine

Author

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  • COLIN C. WILLIAMS

    (School of Management, University of Sheffield, 9 Mappin Street, Sheffield, S1 4DT, United Kingdom)

  • JOHN ROUND

    (School of Geographical Sciences, University of Birmingham, Birmingham, B15 2TT, United Kingdom)

  • PETER RODGERS

    (Aston Business School, Aston University, Birmingham, B4 7ET, United Kingdom)

Abstract

To understand entrepreneurs' motivations, it has become increasingly common to distinguish between those driven by necessity (or pushed) and those driven by opportunity (or pulled) into entrepreneurship. Until now, entrepreneurs operating wholly or partially in the informal economy have been widely assumed to be necessity-driven, pushed into this enterprise as a survival strategy in the absence of alternatives. To evaluate whether this is indeed the case, this paper reports one of the first surveys of informal entrepreneurs' motives. Reporting face-to-face interviews conducted in Ukraine during 2005–06 with 298 informal entrepreneurs, the finding is although most identified themselves as necessity entrepreneurs when initially asked whether they were either pushed or pulled, subsequent questions reveal in the vast majority of cases, there were not only both push and pull factors driving their original decision to start-up informal enterprises, but also a clear shift among these entrepreneurs as their business became established away from necessity-oriented motivations and toward more opportunity-oriented motivations. The outcome is a call for a transcendence of a static either/or approach and the adoption of a dynamic both/and approach that recognizes the coexistence of necessity- and opportunity-drivers as well as the fluidity of entrepreneurs' motivations.

Suggested Citation

  • Colin C. Williams & John Round & Peter Rodgers, 2009. "Evaluating The Motives Of Informal Entrepreneurs: Some Lessons From Ukraine," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 59-71.
  • Handle: RePEc:wsi:jdexxx:v:14:y:2009:i:01:n:s1084946709001144
    DOI: 10.1142/S1084946709001144
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    1. Colin C. Williams, 2006. "The Hidden Enterprise Culture," Books, Edward Elgar Publishing, number 3948.
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    Cited by:

    1. Colin C. Williams & Abbi M. Kedir, 2017. "Starting-up unregistered and firm performance in Turkey," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 797-817, September.
    2. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    3. Nadia Abdelhamid Abdelmegeed Abdelwahed & Abdulrahman Alshaikhmubarak, 2023. "Developing Female Sustainable Entrepreneurial Intentions through an Entrepreneurial Mindset and Motives," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    4. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    5. Usman Ladan & Colin C. Williams, 2019. "Evaluating Theorizations Of Informal Sector Entrepreneurship: Some Lessons From Zamfara, Nigeria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-18, December.
    6. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    7. Pham, Tho & Talavera, Oleksandr & Zhang, Mao, 2018. "Self-employment, financial development, and well-being: Evidence from China, Russia, and Ukraine," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 754-769.
    8. Colin C. Williams & Brunilda Kosta, 2019. "Evaluating Institutional Theories Of Informal Sector Entrepreneurship: Some Lessons From Albania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-17, June.
    9. Shakra, R., 2018. "Aspirations and Farmers Investment Choices - An Investigation of Aspirations Failure in South Africa," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277177, International Association of Agricultural Economists.
    10. Colin C. Williams & Youssef Youssef, 2014. "Is Informal Sector Entrepreneurship Necessity- or Opportunity-driven? Some Lessons from Urban Brazil," Business and Management Research, Business and Management Research, Sciedu Press, vol. 3(1), pages 41-53, March.
    11. Amir Emami & Shayegheh Ashourizadeh & Shima Sheikhi & Gadaf Rexhepi, 2022. "Entrepreneurial propensity for market analysis in the time of COVID-19: benefits from individual entrepreneurial orientation and opportunity confidence," Review of Managerial Science, Springer, vol. 16(8), pages 2413-2439, November.
    12. Eunice Maria M. N. Dos Santos & João J. Ferreira, 2017. "Analyzing Informal Entrepreneurship: A Bibliometric Survey," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-20, December.
    13. Eijaz Ahmed Khan, 2018. "The Voice Of Informal Entrepreneurs: Resources And Capabilities Perspective," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-19, September.
    14. Jing Song & Lulu Li, 2023. "Empowered in Business or Penalised in Marriage: Experiences of Single Female Entrepreneurs in China," Work, Employment & Society, British Sociological Association, vol. 37(1), pages 3-19, February.
    15. Colin C. Williams & Youssef Youssef, 2015. "Theorising Entrepreneurship in the Informal Sector in Urban Brazil: A Product of Exit or Exclusion?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 24(2), pages 148-168, September.
    16. Kovarova Kateřina & Simsova Jana, 2019. "Factors Affecting Entry into Entrepreneurship for University Students," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 398-416.
    17. Syed Awais Ahmad Tipu, 2012. "What have we learned? Themes from the literature on necessity driven entrepreneurship," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1), pages 70-91.

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