The Impact of Entrepreneurship on Community Integration: Evidence from a Quasi-natural Experiment

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Abstrakt

Previous research has focused on the antecedents of entrepreneurship within communities, but little is known about the consequences of entrepreneurship for the community. Focusing on within-community integration, as indicated by violation of community norms through misconduct, we propose that regional boosts of entrepreneurial activity benefit communities. Using employer–employee matched data from Portugal between 2002 and 2010 and an exogenous increase in entrepreneurship, we find support for our claims. Following the enactment of entry deregulation policies which increased entrepreneurship, the incidence of norm violation through misconduct declined within the focal community. We further find that labor market integration of disadvantaged groups is the key mechanism responsible for this effect. Workers from such groups are more likely to (a) transition into entrepreneurship; (b) find employment; and (c) experience improvement in working conditions – when entrepreneurship rates increase. The beneficial effect of entrepreneurship on misconduct was further amplified in communities with greater rates of unemployment and greater income inequality, confirming our prediction that entrepreneurship can serve as a vehicle to improve the standing of low-income communities.
OriginalsprogEngelsk
TitelProceedings of the Seventy-ninth Annual Meeting of the Academy of Management
RedaktørerGuclu Atinc
Antal sider5
UdgivelsesstedBriarcliff Manor, NY
ForlagAcademy of Management
Publikationsdato2019
Sider918-922
Artikelnummer163
DOI
StatusUdgivet - 2019
BegivenhedThe Academy of Management Annual Meeting 2019: Understanding the Inclusive Organization - Boston, USA
Varighed: 9 aug. 201913 aug. 2019
Konferencens nummer: 79
http://aom.org/annualmeeting/

Konference

KonferenceThe Academy of Management Annual Meeting 2019
Nummer79
LandUSA
ByBoston
Periode09/08/201913/08/2019
Internetadresse
NavnAcademy of Management Proceedings
ISSN2151-6561

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