Quantitative Methods in the Field of Necessity Entrepreneurship

Abstract – In this paper, we review existing quantitative approaches that have been implemented to study necessity entrepreneurship (NE). We find that the study of NE has so far relied heavily on secondary survey data (most notably the Global Entrepreneurship Monitor (GEM)) and that many of the quantitative studies on NE are descriptive and correlational in nature. This has led to a strong focus on Western countries and an underrepresentation of necessity entrepreneurs in low- and middle-income economies. In addition, we reflect on the findings from our review and recommend alternative empirical approaches that facilitate causal inference in the field of NE. These approaches include quasi-experimental designs, such as instrumental variable (IV) analysis, and full experimental designs, such as randomized control trials. We argue that the adoption of these methods allows for more rigor and new insights to the field of NE. To adopt these methods, we also encourage researchers to engage in more primary data collection.