Social Structure, Reasonable Gain and Entrepreneurship in Africa

George, G., Kotha, R., Parikh, P., Alnuaimi, T., Bahaj, A. 2016. Social structure, reasonable gain, and entrepreneurship in Africa, Strategic Management Journal, 2015 Forthcoming.

26 Pages Posted: 2 Mar 2015

See all articles by Gerard George

Gerard George

Singapore Management University

Reddi Kotha

Singapore Management University - Lee Kong Chian School of Business, Management Department

Priti Parikh

Imperial College London

Tufool Alnuaimi

Imperial College London

AbuBakr S. Bahaj

University of Southampton

Date Written: February 28, 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 search for reasonable income gain is a key driver of entrepreneurial action at subsistence levels, thereby adding to behavioral explanations of entrepreneurship.

Keywords: Africa, Poverty, Entrepreneurship, Natural Shocks, Kenya, Affordable Loss

JEL Classification: J24, I3, I31, I32, E24

Suggested Citation

George, Gerard and Kotha, Reddi and Parikh, Priti and Alnuaimi, Tufool and Bahaj, AbuBakr S., Social Structure, Reasonable Gain and Entrepreneurship in Africa (February 28, 2015). George, G., Kotha, R., Parikh, P., Alnuaimi, T., Bahaj, A. 2016. Social structure, reasonable gain, and entrepreneurship in Africa, Strategic Management Journal, 2015 Forthcoming. . Available at SSRN: https://ssrn.com/abstract=2571652

Gerard George (Contact Author)

Singapore Management University ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

HOME PAGE: http://www.smu.edu.sg/faculty/profile/118836/Gerry-GEORGE

Reddi Kotha

Singapore Management University - Lee Kong Chian School of Business, Management Department ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

HOME PAGE: http://www.business.smu.edu.sg/Faculty/management/reddikotha.asp

Priti Parikh

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Tufool Alnuaimi

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

AbuBakr S. Bahaj

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

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