Factors associated with the intention of starting a new business

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Factors associated with the intention of starting a new business


Author: Liu, Kam-ying
Title: Factors associated with the intention of starting a new business
Degree: M.Sc.
Year: 1999
Subject: New business enterprises
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Dept. of Management
Pages: ix, 131 leaves : ill. ; 30 cm
Language: English
OneSearch: https://www.lib.polyu.edu.hk/bib/b1479902
URI: http://theses.lib.polyu.edu.hk/handle/200/1907
Abstract: Hong Kong would be by definition in a recession that real GDP is projected to fall while unemployment rate is expected to rise. Unemployed individuals are suggested to start own businesses. Besides unemployment, other factors, such as job dissatisfaction, personal characteristics, and personal environments, also influence an individual' s decision to behave entrepreneurially. The purpose of this study is to investigate the factors associated with the intention of starting a new business in order to answer the research question of "Are the factors of individual variables and precipitating events associated with the intention of starting a new business?" The dependent variable in this study is (1) the extent of their entrepreneurial intentions, and the independent variables considered are (2) the reasons for and obstacles of starting own businesses, (3) the extent of their motivations, (4) their personal characteristics, and (5) their personal particulars. Altogether 13 hypotheses are tested through the T-Tests and ANOVAs. The first 11 hypotheses postulate that differences in entrepreneurial intention are related to the factors of personal environment. The last two hypotheses speculate that entrepreneurial intention is correlated to personal characteristics and motivation. The sample is comprised of 47 participants of the Self-employment Business Starter Program held by the S. K. H. Lady MacLehose Centre (SKH) and sponsored by the Employee Retraining Broad (ERB). Two different classes were approached during two consequent days in early February. Data collection was performed during the break of each class and the completed questionnaires were collected immediately after the break. The 74-item questionnaire takes about 15 minutes to complete. After the examinations of various statistical tools, only two factors of the personal environment of the respondents are significantly correlated to entrepreneurial intention. Male respondents have higher entrepreneurial intention than female respondents do. Furthermore, the respondents who are the only child in a family have the highest entrepreneurial intention, the respondents in the eldest sibling have the next highest, the respondents in the youngest sibling have the next lowest, and the respondents in middle sibling have the lowest. The personal characteristics and achievement motivation of the respondents are not correlated to entrepreneurial intention. Several recommendations are suggested in this study. Participants of business starter programs and potential entrepreneurs are recommended that starting a new business should not be regarded as a temporary solution to unemployment although individuals can be potential entrepreneurs disregard of personal factors and precipitating events. They are also recommended to pay more attention to some other factors such as entrepreneurial competence and to attend some kinds of business starter programs. Training bodies and policy-makers are recommended not to use personal factors or precipitating events to be selection criteria for training or assistance programs. They should target their programs for general public rather than restricting their programs to certain groups of individual with specific personal factors or precipitating events. Researchers are recommended to include environmental variables in future studies and to pay extra attention to the issues of research population and sample size. Finally, the relationship between the independent variables of this study and the performance of entrepreneurial activities are recommended for investigations.

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