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Heterogeneity in the level and handling of the Liability of Newness: Female and immigrant entrepreneurs’ need for and use of business advisory service
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0001-8430-5714
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

In the start-up entrepreneurs face the Liability of Newness when problems and challenges often threaten business survival. Business advisory service, provided by public and private supplier contacts, can offer important knowledge and information, accompanied by various forms of assistance, and thereby decrease the entrepreneurs’ risk of failure and reduce their Liability of Newness. However, it is difficult to match the entrepreneurs’ need for such advice with the available advice. The support must meet the need. Most nations in the European Union have programs and projects that provide such support for entrepreneurs and SMEs. Special programs often support female entrepreneurs and/or immigrant entrepreneurs.

This thesis examines the level and handling of the Liability of Newness with special focus on female entrepreneurs and immigrant entrepreneurs in Sweden. The four papers of this thesis take the perspective of these entrepreneurs. The research is based on a sample of 2 832 entrepreneurs who were interviewed (in a telephone survey) on their impressions and recollections on their need for and use of business advisory service in the start-up processes of their companies. Fulfilment of need is achieved when the need for business advisory service is matched with the right use of business advisory service.

Heterogeneities as far as the level and handling of the Liability of Newness exist related to female entrepreneurs (vs. male entrepreneurs) and immigrant entrepreneurs (vs. non-immigrant entrepreneurs). Female entrepreneurs have a higher need for business advisory service than male entrepreneurs and also use more business advisory service than male entrepreneurs. As a result, female entrepreneurs can decrease the hazard rate for their companies and also reduce the Liability of Newness as their companies move toward the standard risk in their industry. Immigrant entrepreneurs also have a higher need for business advisory service than non-immigrant entrepreneurs. However, because immigrant entrepreneurs use business advisory service to the same extent that non-immigrant entrepreneurs do, immigrant entrepreneurs are unable to decrease the hazard rate for their companies or to reduce the Liability of Newness.The thesis makes both theoretical, methodological and practical contributions.

The thesis may be of interest to government policy makers with its attention to the need and use of business advisory service by female entrepreneurs and immigrant entrepreneurs.

Place, publisher, year, edition, pages
Västerås: Mälardalens högskola , 2017. , 70 p.
Series
Mälardalen University Press Dissertations, ISSN 1651-4238 ; 230
Keyword [en]
Entrepreneurship, Business advisory service, female and male entrepreneurs, immigrant entrepreneurs
National Category
Social Sciences Economics and Business
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-35288ISBN: 978-91-7485-331-5 (print)OAI: oai:DiVA.org:mdh-35288DiVA: diva2:1093091
Public defence
2017-06-19, Paros, Mälardalens högskola, Västerås, 09:15 (Swedish)
Opponent
Supervisors
Available from: 2017-05-05 Created: 2017-05-05 Last updated: 2017-07-10Bibliographically approved
List of papers
1. Business networks at start-up: Swedish native-owned and immigrant-owned companies
Open this publication in new window or tab >>Business networks at start-up: Swedish native-owned and immigrant-owned companies
2014 (English)In: International Journal of Entrepreneurship and Small Business, ISSN 1476-1297, E-ISSN 1741-8054, Vol. 22, no 3, 307-325 p.Article in journal (Refereed) Published
Abstract [en]

The aim of this study is to examine the differences between native Swedish and immigrant entrepreneurs’ business networks at start-up  stage. The study is based on a database consisting of 261 immigrant- and  2,463 native-owned companies, applying several univariate and multivariate statistical methods. Immigrant entrepreneurs’ business networks are less likely to include mainstream contacts at the start-up stage than native born entrepreneurs. Thus, ethnicity is an important variable explaining differences in such networks at the start-up stage. A combination of both mainstream and immigrant networks has the potential to give rise to more growth for immigrant-owned businesses. As a result, these businesses may have potential to create new jobs for unemployed immigrants. This study provides a deeper understanding of how ethnicity may influence the entrepreneurs’ use of business networks. It may lead to policy makers considering access to mainstreaming networks as an important issue in the social and economic integration.

Keyword
business networks, start-ups, ethnicity, immigrant networks
National Category
Economics and Business
Identifiers
urn:nbn:se:mdh:diva-35159 (URN)10.1504/IJESB.2014.063778 (DOI)2-s2.0-84904765025 (Scopus ID)
Available from: 2017-04-12 Created: 2017-04-12 Last updated: 2017-05-05Bibliographically approved
2. Fulfilling the need of business advisory services among Swedish immigrant entrepreneurs: An ethnic comparison
Open this publication in new window or tab >>Fulfilling the need of business advisory services among Swedish immigrant entrepreneurs: An ethnic comparison
2016 (English)In: Journal of Entrepreneurship and Public Policy, ISSN 2045-2101, E-ISSN 2045-211X, Vol. 5, no 3, 343-364 p.Article in journal (Refereed) Published
Abstract [en]

Purpose: Taking the entrepreneur’s perspective and a broad view of business advisory services, the purpose of this paper is to examine to what degree the need of business advisory services among Swedish start-ups, first-generation immigrants compared to non-immigrants, is fulfilled. Design/methodology/approach: The sample data consist of a unique and comprehensive firm-level database and contain telephone interviews with 2,800 Swedish start-up entrepreneurs. The study examines 20 different kinds of business advice services, in terms of both need and use. Statistical methods such as Mann-Whitney test and regression analysis are used while controlling for entrepreneurial characteristics. Findings: The findings suggest that immigrants’ compared to non-immigrants’ need for business advisory service was not fulfilled. Of the 20 different business advices, ten were fulfilled and ten were not fulfilled. Both strategic advice and operational advice were fulfilled as well as unfulfilled. Apart from ethnicity, other variables did influence the need of business advisory services. Research limitations/implications: The author was not able to make comparisons between different immigrant groups. Practical implications: This study offers an explorative approach that contributes on how business advisory services are differentially tailored between start-ups by immigrants and those by non-immigrants. It illustrates to what extent public- and/or private-funded organizations contribute to fulfilment of the needs of immigrant and non-immigrant start-ups. Originality/value: Few studies take the entrepreneur’s perspective and from such a perspective examine the fulfilment of needs of advice regarding both private and public organizations role in the area. Both the need and the use of business advisory services are studied as well as the kind of business advice that is needed.

Keyword
Business advisory service, Entrepreneurship, Immigrants, Start-ups
National Category
Economics and Business
Identifiers
urn:nbn:se:mdh:diva-33498 (URN)10.1108/JEPP-03-2015-0017 (DOI)000388977800006 ()2-s2.0-84991702409 (Scopus ID)
Available from: 2016-11-03 Created: 2016-11-03 Last updated: 2017-05-05Bibliographically approved
3. Business advisory services and risk among start-ups and young companies: A gender perspective
Open this publication in new window or tab >>Business advisory services and risk among start-ups and young companies: A gender perspective
2015 (English)In: International Journal of Gender and Entrepreneurship, ISSN 1756-6266, E-ISSN 1756-6274, Vol. 7, no 2, 168-190 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – This study aims to investigate the demand for business advisory services by owners of start-ups and young companies by taking a gender perspective. The study also examines whether risk-taking is more characteristic of masculine than feminine behaviour in this context. Design/methodology/approach – Aliterature review examines business advisory services and risk aversion from a gender perspective. The empirical data are derived from interviews with owners of more than 2,700 start-ups and young companies in Sweden.Anumber of key variables compare how the company owners (women and men) view business advisory services as a way to overcome risk and to gain access to information in networks. Several statistical tests are used to analyse these data. Findings – Women owners of start-ups and young companies use more and different business advisory services than men owners. There are differences among the men owners and women owners with regard to the amount of start-up capital, company size and industry sector. Given the risks associated with start-up, business advisory services are important to women in helping them reduce their risk in the start-up and early stages of their companies. Research limitations/implications – Companies in Sweden’s largest city, Stockholm, were not included in the sample. Financial data were not used as variables. Practical implications – Policymakers should address women owners’ greater demand for business advisory services in their companies’ early stages. Originality/value – This study’s originality is its gender perspective on the demand for business advisory services by start-ups and young companies and its challenge to previous findings about entrepreneurial behaviour and risk-taking. 

Keyword
Business advisory services, Gender, Network, Risk, Start-up, Young companies
National Category
Economics and Business
Identifiers
urn:nbn:se:mdh:diva-28214 (URN)10.1108/IJGE-05-2013-0046 (DOI)2-s2.0-84930157695 (Scopus ID)
Available from: 2015-06-11 Created: 2015-06-11 Last updated: 2017-05-05Bibliographically approved
4. A user perspective on business advisory service for entrepreneurs of new and young companies in Sweden
Open this publication in new window or tab >>A user perspective on business advisory service for entrepreneurs of new and young companies in Sweden
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Purpose: The paper uses the construct of the liability of newness to identify how entrepreneurs of new and young companies use business advisory service in the start-up process of their micro-companies.

Design/methodology/approach:

Various statistical techniques were used to analyze aA sample of 2832 new and young companies were analysed. The empirical data derive from a survey of micro-companies in Sweden and their use of 20 kinds of business advisory services.

 Findings: Despite some similarities in the use of business service areas, the paper finds that new companies use more and different business advisory service areas than young companies. The paper examines these similarities and differences in detail.

Practical implications: This research adds to our knowledge on how business service providers (public and private) can tailor their offerings to new and young companies. In particular, these findings may be of interest to government policy makers and other relevant stakeholders as they allocate funds to publicly funded organizations that provide business advisory service.

Originality/value: The paper analyzes a broad range of business service areas used by new and young companies. This paper, which takes a user-perspective, contributes to the rather sparse research in this field because it examines business advisory service from the demand side rather than the supply side.

Keyword
Business advisory service, Liability of newness, micro-companies, start-ups, new and young companies.
National Category
Social Sciences
Research subject
Industrial Economics and Organisations
Identifiers
urn:nbn:se:mdh:diva-35285 (URN)
Available from: 2017-05-04 Created: 2017-05-04 Last updated: 2017-05-29Bibliographically approved

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