The Motivational Factors of Necessity Entrepreneurship in Algeria

Abstract This paper centres on the phenomenon of entrepreneurship emerging from necessity. Through the adoption of a dual methodological approach, the objective is to identify the motivating factors that determine the establishment of businesses driven by necessity in Algeria. The quantitative approach utilizes principal component analysis on a sample of 194 entrepreneurs, while the qualitative approach involves conducting semi-directive interviews with seven entrepreneurs from disadvantaged backgrounds. By employing these methods, the study aims to uncover the primary variables that influence the occurrence of necessity entrepreneurship in Algeria. The findings of this research shed light on the crucial internal and external factors that contribute to necessity entrepreneurship. Remarkably, these results challenge the prevailing dichotomous framework often utilized to differentiate between necessity entrepreneurship and opportunity entrepreneurship in research studies.