Performance differentials of necessity and opportunity entrepreneurs: through the lens of motivation to learn and female entrepreneurial competencies

Abstract

Purpose Women entrepreneurs are often categorized and assessed for various outcomes based on their start-up motivations. It is generally assumed that entrepreneurs with opportunity motivation have better performance when compared to necessity entrepreneurs. This study aims to test these suppositions through the lens of the entrepreneur’s motivation to learn (MTL) and level of female entrepreneurial competencies (FECs), namely, business and management, entrepreneurial, human relations (HR) and personal. Design/methodology/approach Data collected from 344 respondents through a survey questionnaire was analyzed using the structural equation modelling – partial least squares method using SmartPLS 4. Findings The findings highlight the need of recognizing the differentials between necessity and opportunity entrepreneurs as they were found to influence performance and learning outcomes. Opportunity entrepreneurship was found to significantly impact both MTL and the FECs. The authors also observed that business and management skills along with HR competencies played a greater role in the firm performance. Practical implications The findings demonstrate a case for specialized, tailor-made policy approaches rather than the “one size fits all” approach as evident in many government programs. As necessity entrepreneurs form a vital part of the Indian entrepreneurial ecosystem, apart from mentoring, need-based competency development programs may be looked at. Opportunity entrepreneurs may need support and encouragement through advanced skilling and uncomplicated funding options. Originality/value To the best of the authors’ knowledge, empirical studies related to women-owned micro, small and medium enterprises in India establishing the relationship between start-up motivation and business performance are scarce. Even in the global context, this is one of the initial studies to examine the relationship through the lens of MTL and competencies.