Factors Influencing Tendency to Engage in Entrepreneurship
Session 9: Factors Influencing Tendency to Engage in
Entrepreneurship
Total Session Time: 60 minutes
Prerequisites
Learning Tasks
By the end of this session, learners will be able to:
Resources Needed:
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
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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 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).
(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
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
individual, i.e., a displacement.
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.
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o In reaction to a certain‘ disruptive' event some may start a business, whereas others go
in a different direction.
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:
ALLOW few students to respond
WRITE their responses on the flip chart/ board
CLARIFY and SUMMARISE by using the content below
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;
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Individuals who are "unlikeable", e.g., due to a lack of educational or language skills
(immigrant entrepreneurs) or criminal backgrounds.
STEP 5: Motivation and Stages of Entrepreneurship (10 minutes)
Individual characteristics and 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.
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.
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 Previous professional experience (in the private or public sector) has a positive impact
on start-up because of a market opportunity
o Higher education matters for opportunity, but not for necessity-based nascent
engagement
o Higher percentages of ―push entrepreneurs‖ have a neutral attitude towards
entrepreneurship from their parents,
o The odds of being a pull entrepreneur are higher when there is a spouse who is also an
entrepreneur.
o Family role models matter to engage in nascent activity for opportunity-driven
individuals, but not for their necessity-driven counterparts.
Performance and motivation
the cause must be motivational
into self-employment and have higher chances of survival.
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o Opportunity entrepreneurs tend to be more motivated by non-monetary rewards than
necessity entrepreneurs
o Opportunity entrepreneurs tend to have higher opportunity costs than necessity
entrepreneurs.
then a better post-entry performance may be expected
o Than if a new firm is started on the basis of a purely 'defensive' motivation, such as
the fear of becoming unemployed
Step 6: Key Points (5 minutes)
(combinations) of motivations.
financial success and self-realization
driving individuals to start their own business, is often referred to as the push effect of
unemployment
STEP 7: Evaluation (5 minutes)
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References
Buskirk, R. H (1994). The Entrepreneurs Handbook: Premier Entrepreneur Programs, Inc.
Denver, Co.
Charantimath, P. M (2006) Entrepreneurship Development Small Business Enterprises:
Delhi, India: Pearson Education,
Hisrich, R.D., Peters, M.P., & Shepherd, D.A. (2005). Entrepreneurship. (6th Ed.) Boston:
McGraw-Hill.
Kuratko, D.F., & Hodgetts, R.M. (2007). Entrepreneurship: Theory, Process & Practice. (7th
Ed.) USA: Thomson
Roy, R. (2011, 2008). Entrepreneurship. 2nd Ed. Oxford: Oxford University Press.
Stokes, D. & Wilson, N. (2002). Small Business Management and Entrepreneurship. (5th
Ed.) London: High Holborn House.
Zimmerer, T. W. & Scarborough N. M. (2008) Essentials of Entrepreneurship and Small
Business Management. (5th Ed) New Jersey: Pearson Education International
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