Factors Influencing Tendency to Engage in Entrepreneurship – PST06209 Entrepreneurship
NTA Level 6 • Semester 2 • PST06209 Factors Influencing Tendency to Engage in Entrepreneurship Entrepreneurship • Source Session/Topic 9 Full source-text version: all educational wording from the extracted learning source is retained; only presenter/tutor metadata and web-layout noise are removed, while formatting is improved for readability. Session 9: Factors Influencing Tendency to Engage in Entrepreneurship Total Session Time: 60 minutes Prerequisites • None Learning Tasks By the end of this session, learners will be able to: • Define entrepreneurial intention • Explain the positive factors that 'pull' people into entrepreneurship • Explain the negative situational factors that 'push' people into entrepreneurship • Explain the motivation and stages of entrepreneurship Resources Needed: • Flip charts, marker pens, and masking tape • Black/white board and chalk/whiteboard markers • LCD Projector and computer SESSION OVERVIEW Activity/ Step Time Content Method 1 05 minutes Presentation Introduction, Learning Tasks 05 minutes Definition of Entrepreneurial Intention 2 Presentation 15 minutes Presentation Positive Factors that 'Pull' People into Buzzing Entrepreneurship 3 15 minutes Presentation Negative Situational Factors that 'Push' People 4 brainstorming into Entrepreneurship 10 minutes Presentation Motivation and Stages of Entrepreneurship 5 8 05 minutes Presentation Key Points 9 05 minutes Presentation Evaluation __________________________________________________________________________________________ PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide 67 SESSION CONTENTS STEP 1: Presentation of Session Title and Learning Tasks (5 minutes) READ or ASK students to read the learning tasks and clarify ASK students if they have any questions before continuing. STEP 2: Definition of Entrepreneurial Intention (5 minutes) • Entrepreneurial intention is defined as willingness of individuals to perform entrepreneurial behavior, to engage in entrepreneurial action, to be self-employed, or to establish new business o It usually involves inner guts, ambition and the feeling to stand on one‘s feet o An individual may have potential to be entrepreneur but not make any transition into entrepreneurship unless they have such intentions (Mohammad Ismail et al., 2009). • Individuals decide to engage in entrepreneurial activity because of different (combinations of) motivations. o Generally, a distinction is made between positive factors that 'pull' and negative situational factors that 'push' people into entrepreneurship STEP 3: Positive Factors that 'Pull' People into Entrepreneurship (15 minutes) Activity: Buzzing (5 minutes) ASK students to pair up and buzz on the following question for 2 minutes • What are the positive factors that ‗pull‘ people into Entrepreneurs? ALLOW few pairs to respond and let other pairs to add on points not mentioned WRITE their response on the flip chart/board CLARIFY and SUMMARIZE by using the content below According to Model of the Entrepreneurial Event • The act of starting up a business is dependent upon a change that occurs in the life of an individual, i.e., a displacement. • Individual characteristics including: socio-cultural factors and economic, social and human capital Determine how individuals experience, value and perceive‘ disruptive' events or encountered opportunities, as well as how they react to them o It is not the objective situation but rather the perception of an individual that makes him/her decide upon an entrepreneurial career. __________________________________________________________________________________________ PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide 68 o In reaction to a certain‘ disruptive' event some may start a business, whereas others go in a different direction. • Pull motivation may come in different forms distinguish between three pull motivations: market opportunity, social status and profit o There are six categories of motivation: innovation, independence, recognition, roles, financial success and self-realization. o Examples of 'pull' motivations are; The need for achievement The desire to be independent Social development possibilities. o 'Push' motivations may arise from the exit from or risk of unemployment, family pressure and/or dissatisfaction with the present situation in general STEP 4: Negative Situational Factors that 'Push' People in Entrepreneurship (15 Minutes) Activity: Brainstorming (5 minutes) Ask students to brainstorm on the following question: • What are the negative factors that 'push' people in entrepreneurship? ALLOW few students to respond WRITE their responses on the flip chart/ board CLARIFY and SUMMARISE by using the content below • Individuals with low prospects for wage-employment may become self-employed to earn a living. o Individuals make decision between three activities: unemployment, self-employment and employment. o The effect of unemployment, lowering the opportunity costs of self-employment, thereby driving individuals to start their own business, is often referred to as the push effect of unemployment o Push motivation is usually understood as the unemployment-push o Family pressure, for example in case of a business transfer to the new generation. o Different types of necessity entrepreneurs, including; Individuals who are fired from their jobs Individuals who decide themselves to leave wage-employment because their boss does not want to commercialize their ideas or inventions; __________________________________________________________________________________________ PST 06209 Enterpreneurship NTA Level 6 Semester 2 Facilitator Guide 69 Individuals who are "unlikeable", e.g., due to a lack of educational or language skills (immigrant entrepreneurs) or criminal backgrounds. • Job dissatisfaction is a reason for new venture creation STEP 5: Motivation and Stages of Entrepreneurship (10 minutes) Individual characteristics and motivation • Gender and entrepreneurial motivation o Being a man has a positive effect on the decision to start a business because of 'exit of unemployment'. There is significant impact of being a man on the probability of being an opportunity nascent entrepreneur versus being unemployed or in paid employment. • Age patterns are different for opportunity and necessity entrepreneurs o Age positively affects the start-up of a business because of "exit from unemployment", Related to the fact that older people have a lower employability o Age is negatively related to the "search of the profit" and "social development" opportunity motivations o Opportunity entrepreneurs are older than necessity entrepreneurs. • Higher educated individuals have more alternatives, lowering the chances to be a necessity entrepreneur; o Lower educated people might have difficulties in finding a job. o Necessity entrepreneurs are less likely to be educated in the field that they start and run a business in. o