Necessity Entrepreneurs
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Necessity Entrepreneurs

Microenterprise Education and Economic Development

Edited by Jeremi Brewer and Stephen W. Gibson

Necessity entrepreneurs, in developing countries, are individuals who start small enterprises out of necessity. While they range from street sellers to educated hopefuls with little access to formal employment, the one thing that unites them is the need to survive. This volume is the first-known compilation of theories contributed by international scholars who have worked together to establish a theory-based discourse on necessity entrepreneurship, micro-enterprise education, and long-term economic development.
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Chapter 3: Towards an improved understanding of knowledge requirements in entrepreneurship: an empirical investigation of founder and opportunity characteristics

Marc Gruber and John C. Dencker


This chapter sheds light on two main factors driving the founding process of new organizations - the founder and the opportunity that is being exploited - in order to increase understanding of the heterogeneity encountered in entrepreneurship and, in particular, in those instances when people become entrepreneurs 'out of necessity.' As we will see, both the heterogeneity in terms of founder human capital endowments and in the opportunities being exploited will affect processes and outcomes in entrepreneurship, which in turn allows us to draw conclusions about the knowledge requirements that founders need to meet in order to become successful in entrepreneurship.

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