body bg


‘Recession push’ and ‘prosperity pull’ entrepreneurship in a rural developing context

  • Year: 2013
  • Author: Jürgen Brünjes & Javier Revilla Diez
  • Journal Name: Entrepreneurship & Regional Development: An International Journal
  • Journal Number: 25.3-4
  • Publisher: Taylor & Francis Online
  • Country: Vietnam

In this paper, the ‘recession push’ and the ‘prosperity pull’ hypotheses are used to analyse the effect of growing non-farm wage employment on entrepreneurship in a rural developing context. Data are collected in a rural household survey in 110 communes in central Vietnam which includes subjective owner assessments of reasons for starting non-farm businesses. This way it is possible to separately test the two hypotheses by distinguishing opportunity and necessity entrepreneurs. We use clustered probit regression analyses and control for possible endogeneity in order to predict participation in entrepreneurship. The results show that better access to non-farm wage employment increases the likelihood of becoming an opportunity entrepreneur but has no effect on necessity entrepreneurship. This, therefore, supports the ‘prosperity pull’ hypothesis but not the ‘recession push’ hypothesis. The growing non-farm economy is likely to accelerate the emergence of opportunity entrepreneurship in rural areas. However, necessity entrepreneurs are suffering from a lack of individual and household assets which pushes them into entrepreneurship regardless of non-farm job opportunities in the surrounding area.

Related Items

The Anatomy of the Australian Entrepreneur: Understanding Micro, Small and Medium Business Entrepreneurs in Australia

This report is the result of research into how Indigenous and non-Indigenous owned micro, small...

Bringing Business into Australian Regional Development

Much of Australia's insight into business conditions is dominated by metropolitan perspectives,...

Formation of entrepreneurial intentions in a regional context

Research on the impact of the regional environment in the very early phase of the business...

Share this with your friends

Footer Logo

Contact Us

Level 2, 53 Blackall Street
Barton ACT 2600
Telephone: 02 6260 3733
or email us