Title: New Zealand necessity entrepreneurs

Authors: Alex Maritz

Addresses: School of Management and Entrepreneurship, Unitec New Zealand, Private Bag 92025, Auckland, New Zealand

Abstract: The necessity entrepreneur (NE) is someone who never considered starting or owning a business until there was no other option. Using the methodology of the global entrepreneurship monitor, this paper examines New Zealand necessity entrepreneurs in the light of propositions cited in the literature that NE is associated with three factors: positively with economic growth (real GDP growth rate); positively with unemployment (unemployment rate); negatively with a generous welfare system (expenditures on social security). Factor 1 is confirmed through the GEM data; Factors 2 and 3 are not supported by the data. Immigration is seen as a possible contributory factor to the moderately high NE rates in New Zealand. In addition, unique characteristics of migrant necessity entrepreneurs pave ways for initiatives and intervention by local governments.

Keywords: necessity entrepreneurs; opportunity entrepreneurs; economic growth; New Zealand; unemployment; social security; immigration; entrepreneurship.

DOI: 10.1504/IJESB.2004.005655

International Journal of Entrepreneurship and Small Business, 2004 Vol.1 No.3/4, pp.255 - 264

Published online: 10 Nov 2004 *

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