Antecedents of Entrepreneurial Propensity: Findings from Singapore, Hong Kong and Taiwan

Abstract

The existing literature identifies a number of antecedent factors that positively influence the propensity of individuals to become entrepreneurs. Key among these is self-efficacy, knowledge of other entrepreneurs and the perception of opportunities. At the same time, current research shows that fear of failure is a major deterrent factor for entrepreneurs taking the entrepreneurial plunge. Using Shane's (2003) individual-opportunity nexus framework as an overarching theory, our study examines how these antecedents and deterrent factors influence the individual's propensity to start a new business in the three East Asian economies of Singapore, Hong Kong, and Taiwan. We also test for possible differences in the variables effects on an individual's propensity to start a new business out of necessity versus the perception of opportunity. Importantly, our findings highlight significant location differences among the variables for opportunity-driven start-ups, while no significant differences were found for necessity-driven start-ups. Finally, we discuss the relevant policy implications from our findings.

Effects of entrepreneurial knowledge on entrepreneurial intentions: a longitudinal study of selected South-east Asian business students

“…They also tend to envision positive or successful scenarios and are less risk-averse relative to those with low levels of self-efficacy (Krueger and Dickson 1994). High levels of PSE have been shown to be strong determinants of choosing a career in entrepreneurship (Lee, Wong, and Foo 2005). The decision to engage in business requires a strong belief that one can effectively deal with the challenges associated with such an endeavour.…”

Entrepreneurial Knowledge and its Effects on Entrepreneurial Intentions: Development of a Conceptual Framework

“…While entrepreneurial intention has become a popular research topic, only a limited number of studies has focused on the entrepreneurial intention of students (Mitchell et al, 2002;Lee, Wong, Chen & Chua, 2005;Luthje & Franke, 2003) The focus on students rests on the argument offered by Luthje and Franke (2003) that given the right opportunity and adequate support, majority of students indicate their intention to start a business of their own.…”

“…It is expected that when the general external environment places high respect to and supports innovativeness and innovation, individuals are likely to engage in such behaviour (Shapero & Sokol, 1982;Lee et al, 2005;Linan et al, 2005). The external environment provides the signal as to what is acceptable behaviour and conformity to these signals is normally sought consistent with social learning theory (Bandura, 1977b).…”

“…It is argued that low level of self-efficacy is a major impediment when considering the creation of a new business (Lee et al, 2005). The decision to engage in self-employment requires that one must have the strong belief that he/she can take on the challenges associated with such endeavours (Bandura, 1977a;Boyd & Vozikis, 1994).…”

The importance of being emotional: How do emotions affect entrepreneurial opportunity evaluation and exploitation?

“…Present entrepreneurship literature and behavioral economics in general (e.g., Koellinger et al, 2007;Lee et al 2005;Shepherd, 2004;Sternberg et al, 2006) provide clear evidence that emotion has a systematic influence on entrepreneurship. Future research should investigate the influence of a greater variety of emotions.…”