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• W218950210 abstract "ABSTRACT This study explored the views of a subpopulation of potential entrepreneurs: employees displaced by downsizing. Theory from job loss research suggests that these individuals are reacting to their loss, a motivation different from many other entrepreneurs, and one with possible consequences for understanding of entrepreneurship. A qualitative study among more than 100 downsized employees elicited their perceptions by questions concerning the type of assistance and forms of assistance they would deem most helpful. Comments supported the relevance of applying a job loss model rather than assuming this population to mirror other potential entrepreneurs. INTRODUCTION During the mid-1990s, approximately 1,500 Americans per day saw their corporate or publicsector jobs abolished (Gabriel, 1995), and an estimated three million U.S. jobs disappeared from 1989 to 1996 as a consequence of downsizing (Grim Countdown, 1995). Many of the downsized job holders were middle-aged, a term of undetermined meaning but apparently indicating a 40+ age range and thus also indicating the possibility of unusual difficulty in finding new employment (Uchitelle & Kleinfield, 1996). A reasonable assumption, then, is that many considered beginning a business, even if as a last resort. Such individuals provided data for the study to be described here, designed to apply a qualitative research approach to exploring the perceptions of a sample of this population. Such perceptions, it was expected, would assist in understanding the possible applicability of theory concerning job loss to theory concerning the antecedents of starting and succeeding in a business. Literature on which the study was based will be reviewed. Then the method and findings will be outlined and conclusions presented. LITERATURE REVIEW Coping with job loss has been described in an integrative process model by Latack, Kinicki, and Prussia (1995). The authors categorize responses as control and approaches. Either, they note, can appear in a problem-focused or emotion-focused form; for example, an escape strategy might consist of cognitively persuading oneself that there are more important things in life than having a job. Coping strategies, the alternative to escapism and the area of greatest interest to the authors, might include at least consideration of self-employment-starting one's own business. Such a motivation, based on coping, appears different from what researchers have found in the mass market of potential entrepreneurs when studying antecedents of business formation (Boyd & Vozikis, 1994; Gnyawali & Fogel, 1994). Emphasis in such research has been on personal and process variables, rather than a lack of alternatives. However, there is also considerable overlap between variables affecting downsized employees and those investigated in previous studies of small business formation. For example, Krueger (1994) found entrepreneurial exposure to be an antecedent of new venture formation, and certainly the consideration of starting a business raises the likelihood of actually starting one. More broadly, Robinson and Sexton (1994) found that education of any kind correlates positively with undertaking self-employment and with succeeding. Thus, it seems that attempts by downsized employees to educate themselves concerning the possibility of starting a business will lead to some degree of business formation. However, that process may be different for those unsure of whether in fact they should try to start a business, in contrast to those freely choosing to start a business and simply deciding how to do so or seeking substantive help. Theoretically, then, there was justification for investigating the perceptions of a population that might differ in motivation from those who have previously sought information on beginning a business and differ further in being earlier in the decision process. …" @default.
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• W218950210 title "Perceptions of Downsized Employees Considering Entrepreneurship" @default.
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