Understanding the Interactions among the Barriers to Entrepreneurship Using Interpretive Structural Modeling

Abstract

Entrepreneurship brings about economic innovation and job formation, and its improvement can well account for the unemployment crisis. However, many barriers either stop entrepreneurs from entering the market, or lead their business to failure after entering. These barriers have been sparsely and case dependently reported in the literature, but, to the best of our knowledge, no studies have been yet designated to investigate the general barriers to entrepreneurship. This paper tries to bridge this gap by reviewing the most relevant and available literature to elicit the major general barriers to entrepreneurship. Eleven general barriers to entrepreneurship are identified and supported by the related literature. Since these barriers are not independent and unconnected, but interrelated and interactive, understanding the interactions among them can help decision makers in determining appropriate overcoming measures. In order to model these interactions this paper utilizes interpretive structural modeling (ISM) which has shown to be an efficient approach for analyzing systematic interactions among barriers. We distinct barriers into two groups of inside and outside barriers and with the support of the ISM-based model, we show that inside barriers are dependent on outside barriers. Corrupted and unsupportive business environment then, shows to be the major driving barrier to entrepreneurship.

Analyzing the structure of barriers to municipal solid waste management policy planning in Maputo city, Mozambique

“…These features have resulted into wide use of this approach (Attri et al, 2013). Some examples include: a study of Mahajan et al (2013) to identify and rank the challenging issues in Just-In-Time supply chain; Raeesi et al (2013) that used ISM to understand the interactions among the barriers to entrepreneurship; a study by Chandramowli et al (2011) that looked at the barriers to development in landfill communities; Liao and Chiu (2011) evaluation of municipal solid waste management problems using hierarchical framework. ISM was also applied by Singh and Kant (2008), to develop the relationships among knowledge management barriers, Wang et al (2008) performed an analysis of interactions among the barriers to energy saving in China, Ravi and Sankar (2005) applied ISM in an analysis of interactions among the barriers of reverse logistics, and Sharma et al (1995), studied the objectives for the future of India's waste management.…”

“…Understanding these interactions is crucial to arrive at reasonable measures to overcome them. However it is not always possible or logical to overcome all barriers in a system, due to constraints in resources, time, and capability, thus finding the main artery of the system is a real cost-saving aid (Raeesi, 2013). Besides, these interactions among barriers add complexity to the analysis and make it difficult to complete the task if the barriers are not clearly structured.…”

Development of Institution Structure of Agriculture Resources Management at Pesantren

“…[22] and [23] formulate the structure of a system consisting of 9 elements, namely (1) and (9) Institutions involved in the implementation of the program. There is a criteria element linkage in knowledge management [31], the interaction constraints in total quality management [32]; understand the elements of entrepreneurial constraints [33], the priority strategy [34], determine the critical success factors [30], also uses one element [35]. Several previous studies used the ISM with one element for the development of the institution's management business [36]; [37]; [38]; [39]; [40]; [41].…”

Prioritizing Critical Success Factors for Six Sigma Implementation Using Interpretive Structural Modeling

“…Specifically, the method of ISM is commonly applied to solve the issue of supplier selection [24] [28], prioritizing set of enablers or success factors [29]- [31], and ranking set of barriers [27] [32]. The most recent applications of ISM covered a broad and various areas of Engineering and management such as energy management [33], Supply Chain Management (SCM) [34], green SCM [35]- [37], entrepreneurship [32], Human Resource Management (HRM) [38], and performance evaluation [31] [39]. Within the field of quality management, Mehta, Verma, and Seth used the Delphi method to identify the principles of TQM in engineering education [40].…”