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Article
Social Structure, Reasonable Gain, and Entrepreneurship in Africa
Strategic Management Journal
  • Gerard GEORGE, Singapore Management University
  • Reddi KOTHA, Singapore Management University, Singapore
  • Priti PARIKH, University College London
  • Tufool ALNUAIMI, Imperial College London
  • Abubakr S. BAHAJ, University of Southampton
Publication Type
Journal Article
Version
submittedVersion
Publication Date
4-2015
Abstract

In the context of desperate poverty, characterized by households at subsistence level that experience economic loss and social fracture, explanations for why individuals undertake entry into entrepreneurship are limited. We find that individuals rely on their social relationships to enable entrepreneurial activities that have the potential to create a reasonable income gain. In a sample of 1,049 households in rural Kenya, we test whether the disintegration of social structure attenuates entrepreneurial behavior. When coupled with factors such as income loss, gender of the household head, and access to communal resources, social structure plays a pivotal role in entrepreneurial action. We propose that the search for reasonable income gain is a key driver of entrepreneurial action at subsistence levels, thereby adding to behavioral explanations of entrepreneurship.

Keywords
  • Entrepreneurship,
  • Africa,
  • Entry,
  • Reasonable Gain,
  • Affordable Loss,
  • Effectuation,
  • Poverty,
  • Mobility,
  • Occupational Change,
  • Gender,
  • Women
Identifier
10.1002/smj.2381
Publisher
Wiley
Creative Commons License
Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International
Additional URL
https://doi.org/10.1002/smj.2381
Citation Information
Gerard GEORGE, Reddi KOTHA, Priti PARIKH, Tufool ALNUAIMI, et al.. "Social Structure, Reasonable Gain, and Entrepreneurship in Africa" Strategic Management Journal (2015) ISSN: 1097-0266
Available at: http://works.bepress.com/gerard-george/84/