Microenterprise Education and Economic Development
Edited by Jeremi Brewer and Stephen W. Gibson
Chapter 8: The role of family capital in necessity entrepreneurship
Entrepreneurship is the economic engine fueling the economies of many countries throughout the world. Some entrepreneurs start their ventures with significant experience and expertise along with the ability to identify business opportunities. Others have access to labor and capital through formal networks and thus are able to acquire the resources needed to start a business. On the other hand, other individuals start businesses out of necessity - they lose a job, a family member who was providing income becomes sick, or their nation's economy cannot provide enough employment opportunities for all its citizens. In these cases, out of necessity, these individuals launch a new business - often with just themselves as the only employee. These 'necessity entrepreneurs' often have greater difficultly gaining access to the resources they need as compared with those more experienced entrepreneurs who have established resource networks. However, most necessity entrepreneurs can access one form of capital that can help them succeed - family capital. 'Family capital' is the human, social, and financial resources that are available to individuals or groups as a result of family affiliation (Danes, Stafford, Haynes and Amarapurkar, 2009).
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