Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 7

Towards the Emergence and Valorization of Necessity Entrepreneurship: The Case of Women in the Republic of Congo Dr. Aimée Tathiana Koulounda α & Dr. Jean-Paul Favre σ Author α σ : ESM, Ecole Supérieur de Management Geneva (Switzerland). e-mail: aimee.koulounda@gmail.com 1 Global Journal of Management and Business Research Volume XXIII Issue VII Version I Year 2023 ( ) A © 2023 Global Journals Abstract- This article sheds light on the specificities of necessity entrepreneurship, characterized by the concern to reduce the risk of sinking and disappearing, in contrast to opportunity entrepreneurship, which is based on a secure present and the willingness to take risks for a promising future. It examines the emergence and valorization of necessity entrepreneurship, with a focus on the case of women in the Republic of Congo. The article highlights key issues related to this form of entrepreneurship. Keywords: necessity entrepreneurship, opportunity entrepreneurship, informal sector, women entrepreneur- ship. I. I ntroduction ecessity entrepreneurship, also referred to as "survival" or "resourcefulness" entrepreneurship, is an emerging form of entrepreneurship that has received limited attention in the traditional literature, dominated by the theory of opportunity entrepreneur- ship, which emphasizes the deliberate creation of value by entrepreneurs. The term "necessity entrepreneurship" carries a pejorative connotation that devalues entrepreneurs who find themselves in precarious situations and seek to improve their livelihoods. The decision to engage in entrepreneurship is often a result of significant life changes, such as separation, loss, unemployment, or deteriorating economic conditions Shapero and Sokol (1982). The motivation for entrepreneurship is influenced by the individual's context, and can be a choice or a response to necessity, as conceptualized in the push/pull or opportunity/necessity dichotomy. In the Republic of Congo, necessity entrepreneurship is particularly prevalent among women and constitutes a significant portion of the economy, providing around 70% of jobs. One potential solution lies in the government's decision in 2016 to promote female entrepreneurship, which seems to fare better despite the challenging business environment. However, the reforms implemented have not been sufficient to improve the business climate, mainly due to structural difficulties such as limited access to domestic and foreign N investments, burdensome administrative and judicial procedures for business creation, and corruption. Historically, African women have always been entrepreneurs, mainly engaging in informal trading to meet their families' basic needs. The informal sector offers quicker financial gains compared to the formal economy, which is less accessible due to administrative and financial barriers. This article focuses on the definition of necessity entrepreneurship, particularly within the Congolese context. II. E xogenous A pproach V ersus E ndogenous A pproach Entrepreneurial studies predominantly adopt an endogenous approach, which examines the intrinsic characteristics and profiles of individual entrepreneurs. This approach suggests that entrepreneurs are "born" rather than made. In contrast, the less-explored exogenous approach, which we adopt in this study, focuses on the environmental conditions that influence and push individuals to engage in entrepreneurship. We consider ourselves part of a systemic model where economic, social, and cultural factors interact with each other. This approach is particularly relevant in developing countries with a significant informal sector. The theoretical debate between the endogenous and exogenous origins of entrepreneurship can be summarized by two key questions: − Are Entrepreneurs "Born" or "Made"? − Is Entrepreneurship a Choice or a Constraint? By adopting the original exogenous approach, we shed light on the nature of high risk in the Congolese context. For Congolese women entrepreneurs, the motivation is driven by survival. Faced with pre- cariousness, unemployment, and a lack of formal employment opportunities, women have no choice but to turn to the informal sector. Therefore, their greatest risk lies not in investment or inactivity, but rather in the absence of entrepreneurship, which could lead to their dis-appearance or death. Thus, entrepreneurship of necessity is characterized as "mandatory innovation" contrasting with Schumpeter's classical definition, as women enter an unfamiliar universe. While there is