• DOI:10.1111/etap.12137
• Corpus ID: 153562537

Stratification, Economic Adversity, and Entrepreneurial Launch: The Effect of Resource Position on Entrepreneurial Strategy

@article{PerryRivers2016StratificationEA,
  title={Stratification, Economic Adversity, and Entrepreneurial Launch: The Effect of Resource Position on Entrepreneurial Strategy},
  author={Patrice Y. Perry-Rivers},
  journal={Entrepreneurship Theory and Practice},
  year={2016},
  volume={40},
  pages={685 - 712}
}

• Patrice Y. Perry-Rivers
• Published 1 May 2016
• Economics, Business
• Entrepreneurship Theory and Practice

This paper analyzes whether or not the simple theory of income choice, which indicates there is a positive relationship between economic adversity and entrepreneurship, is applicable to all groups and may have been overgeneralized in entrepreneurship research. Using social stratification theory and the resource–based view, I explore how accumulated resource position differences between advantaged and disadvantaged entrepreneurial actor groups could result in their employing different strategies when exposed to economic adversity. I find that economic adversity has no relationship with entrepreneurship (self–employment rates) in advantaged or disadvantaged groups, and these groups use resources divergently due to their converse resource positions.