Research question: The current study investigates the income elasticities and socio-economic determinants of direct and indirect sports expenditure categories by means of a log normal hurdle regression. Research methods: The data stem from a representative sample of 3005 Flemish families with school-aged children, gathered through a sports-specific survey. A log normal hurdle regression was used to calculate the determining factors and expenditure elasticities of expenditure on sports participation. Results and findings: The results indicate that income, education and the age of the youngest child are positively related to almost all sports expenditure categories, while the number of family members and degree of urbanisation are significant for only a number of the expenditure categories. The elasticity value of the direct sports expenses is smaller than is the case for indirect sports expenditure. Between the expenditure categories large differences exist, as relatively large elasticities are found for sports holidays, transport and sports food and drinks, as opposed to low values of sports events, sports club membership, entrance fees for sports infrastructure, sports camps, clothing, footwear and equipment. Implications: The fact that income significantly influences all expenditure categories demonstrates that further policy intervention is required to make sports consumption more accessible to lower income groups. Sports enterprises and policymakers need to be aware that negative income shifts have a more profound impact on the indirect expenditure categories, and that certain sports activities (e.g. participation events) are relatively more favoured by low-income groups than is the case for sports club membership
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Given the recent economic crisis and the risen poverty rates, sports managers need to get insight in the effect of income and other socio-economic determinants on the household time and money that is spent on sports participation. By means of a Tobit regression, this study analyses the magnitude of the income effect for the thirteen most practiced sports by households in Flanders (the Dutch speaking part of Belgium), which are soccer, swimming, dance, cycling, running, fitness, tennis, horse riding, winter sports, martial arts, volleyball, walking and basketball. The results demonstrate that income has a positive effect on both time and money expenditure on sports participation, although differences are found between the 13 sports activities. For example, the effect of income on time and money expenditure is relatively high for sports activities like running and winter sports, while it is lower for other sports such as fitness, horse riding, walking and swimming. Commercial enterprises can use the results of this study to identify which sports to focus on, and how they will organise their segmentation process. For government, the results demonstrate which barriers prevent people from taking part in specific sports activities, based upon which they should evaluate their policy decisions.
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Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints measure and incorporate a psychometric risk taking scale. Results confirm the importance of access to finance and risk attitudes for business development. Also, we provide preliminary evidence for an interaction between financial constraints and risk taking. Financial constraints “throw sand in the wheels” and protect risk taking entrepreneurs from the negative impact of risk taking on microenterprise performance.
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