The Entrepreneurial Decision: Theories, Determinants and Constraints (original) (raw)

Factors Affecting The Entrepreneurial Decision

An entrepreneur is an individual who is motivated in creating a new business by bearing most of the risk involved and at the same time enjoying the rewards of the business. Entrepreneur also can be considered an innovator, a creator of new ideas, goods, services as well as business procedures. They play a major role in the economy by using their skills and initiatives that are necessary in bringing new ideas to the market. An entrepreneur who is ready to take on the risks is rewarded with profits, fame as well as growth opportunities. Entrepreneurs that fail in their business suffer losses and become less established in the markets. An entrepreneur is a coordinator in a capitalist economy. Entrepreneurs are involved in moving various resources and promoting capital formation. There are many ways of describing who the entrepreneur is, and one such is an individual who is motivated in creating a new business by bearing most of the risk involved and at the same time enjoying the rewards of the business. Further there are many reasons that impact the decision to entrepreneurship of an individual. These factors are classified as internal and external factors. Internal factors are generated from within an individual while external factors are externally supporting factors of an individual that supports the decision to entrepreneurship. In this research number of published journal articles were analyzed to identify the different motivating factors of individuals for their entrepreneurship decisions and to identify what are the factors that motivate them for their decision to entrepreneurship.

Determinants of entrepreneurial intentions

1995

In this paper an economic-psychological model of factors that influence individuals' intentions to go into business for themselves is developed and tested. According to this model the primary determinant of entrepreneurial intention is a person's conviction that starting and running one's own firm is a suitable alternative for him/her. This conviction is in its turn based on certain general attitudes and domain attitudes. The former refer to more general psychological dispositions whereas the latter specifically concern entrepreneurship and owner-managed firms. Attitudes are believed to act as mediators for influences of personal background factors. Apart from this "main chain" of causal influences, the individual's current situation (i.e., employment status) is expected to have an impact on both conviction and intentions. The importance of this type of situational influence has been highlighted by previous research. The model is tested on a large sample of 35-40 years old Swedish subjects. A mail questionnaire with multiple indicators of the concepts in the model was distributed to 300 subjects each in 6 different regions. A response rate of over 70 percent was obtained. The use of six separate samples allows for checking the stability of the results.

Entrepreneurship: multiple meanings and consequences

International Journal of Entrepreneurship and Innovation Management, 2004

Aim of the paper is to question for the meaning of entrepreneurship. A view through relevant pieces of the literature indicates that no consensual understanding exists about the understanding of the term. The most conventual practise is to translate entrepreneurship with self-employment. In this sense, the political postulated need to strengthen entrepreneurship will mean consequently to strengthen the ratio of self-employment. What is taken tooless into account, however, is the fact that even self-employment is fragmented into different classes of actors having different socioeconomic attributes, rationalities, and related biographies. Among this category of people, one may find the potential keys for future positive developments as well as one can meet with just the opposite, eg. people who are settled here since they have no other chances in the labour market for getting a job and related income. One of the conclusions is that entrepreneurship has multiple meanings and consequences.

Revisiting the Factors Influencing Entry and Success of Entrepreneurship

This paper provides a review of literature on entrepreneurship and related schools of thought. It examines the research findings relating to the effect of various macroeconomic and microeconomic factors on entry, exit and success of entrepreneurs. It also critically examines classification of Necessity Entrepreneurs based on low post-entry performance. The main contribution of the article is in identifying several research gaps in entrepreneurship literature which can be taken up as research problems by scholars of this field. This article proposes Exit Barrier as one of the factors influencing the entry to entrepreneurship.

Individual and Contextual Determinants of Entrepreneurship: An International Comparative Analysis

Models of entrepreneurial behavior focus usually on individual level factors yet a great deal of beginning and running a business depends on the economic, social and institutional environment. Our analysis uses data from the 2008 European Social Survey to assess the weight of countrylevel characteristics in explaining individual entrepreneurship measured as self-employment of business ownership. The article starts with a literature review which puts the bases of our hypotheses. The results describe cross country comparisons of entrepreneurship rates, individual and country-level regressions of entrepreneurship. As expected, there are large differences between countries with respect to rates of entrepreneurship. A great part of this variance can be accounted for by the division between the former socialist countries and the rest and by levels of urbanization.

Entrepreneurial choice: aptitudes, motivations and behavior

… for Advancement of Behavioral …, 2008

Entrepreneurship represents an interesting way of developing professionally and personally: people have different levels of aptitudes; they are led to be entrepreneurs for various motivations, and put specific behaviours to use. The sample consists of 100 users of the Chamber of Commerce's New-Entrepreneurial-Service in Verona who were interviewed by telephone. The first results reveal that successful entrepreneurs are (significantly): less willing to conciliate work and family, more intent upon realizing new ideas, and more oriented to a working without a boss (effects of age and educational qualifications are reported) and present different entrepreneurial aptitude levels related to behaviour (i.e. difficulty in information research, management of bureaucracy…).

To be or not to be an entrepreneur

Procedia - Social and Behavioral Sciences, 2012

The research presented in this paper aims to explore the differences, at the level of entrepreneurial traits, between 215 participants in entrepreneurship education modules and a paired sample of 215 non-participants, the enrolment in this modules being considered as an explicit entrepreneurial behaviour. The results indicate that several personality and demographic aspects, such as social networking, business skills, independence, achievement motivation internal locus of control, and the academic specialization (economic and managerial studies) efficiently predict the involvement in entrepreneurial training.

Potential Entrepeneurs and the Self-Employment Choice Decision

2004

In this paper we estimate, on a dataset for the UK, a standard model of self-employment choice. The model is then extended to allow for differences in the potential for self-employment amongst employees. Specifically, we recognise four relevant groups: actual entrepreneurs, potential entrepreneurs, latent entrepreneurs, and non-entrepreneurs. This hypothesised division allows the incorporation of insights from the sociological and psychological literature on entrepreneurship, as well as the more usual economic and socio-demographic variables. The two models appear reasonably robust on statistical grounds. The predictive performance of the standard and sequential models is similar, although both models tend to under predict the number of self-employed. Nevertheless, we believe that the sequential model offers some distinct advantages over the standard model. In separating out the determinants of interest from the idea and firm formation decisions, the model identifies a set of charac...

Becoming an Entrepreneur: a Diversity of Factors, Types and Pathways

Periodica Polytechnica Social and Management Sciences, 2016

This paper is the result of a research focused on the study of entrepreneurial patterns, contexts and experiences. Its particular objectives are the analysis of the different pathways to become an entrepreneur. On the basis of in-depth interviews to women and men entrepreneurs about their individual trajectories, a typology of access to entrepreneurship is proposed. This categorisation expresses different combinations of social factors and places particular emphasis on the effects that gender and qualifications have on the decision to become selfemployed, without neglecting the importance of socioeconomic circumstances, interpersonal networks and family relationships.