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Transcript of Entrepreneurial Choice: Aptitudes, Motivations and Behaviour. Serena Cubico, Elisa Bortolani,...
Entrepreneurial Choice:Aptitudes, Motivations and
Behaviour.
Serena Cubico, Elisa Bortolani,Alessia Cubico, Giuseppe Favretto
Department of Psychology and Cultural AnthropologyCentre for Youth Entrepreneurial
UNIVERSITY OF VERONA
The International Association for Research in Economic Psychology
The Society for Advancement of Behavioral Economics
WORLD MEETING 2008Roma-Italia, September 3-6
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Abstract
Entrepreneurship represents an interesting way of developing professionally and personally: people have
different levels of aptitudes; they are led to be entrepreneurs for various motivations, and put specific
behaviours to use.The sample consists of 100 users of the Chamber of Commerce’s New-Entrepreneurial-Service in Verona
who were interviewed by telephone.The first results reveal that successful entrepreneurs are
(significantly): less willing to conciliate work and family, more intent upon realizing new ideas, and more
oriented to a working without a boss (effects of age and educational qualifications are reported) and present different entrepreneurial aptitude levels related to behaviour (i.e. difficulty in information
research, management of bureaucracy…).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Entrepreneurship Entrepreneur,
Self Employment.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Introduction…
Entrepreneurship is an important path towards personal and economic
development(Dowling and Schmude, 2007; Fritsch and Mueller, 2004).
Study and support of entrepreneurship is important:
this phenomenon contributes to job creation and growth; it is crucial to
competitiveness; it triggers personal potential and is a motivating force in the
market economy(European Commission 2003).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
… introduction…
The same Commission (2003, p.6) defines entrepreneurship as:
“the mindset and process to create and develop economic activity by blending
risk-taking, creativity and/or innovation with sound management,
within a new or an existing organization”
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
… introduction…
As in other studies(Grilo and Thurik, 2002; GEM, 2005),
we equate self-employment to entrepreneurship:
these workers provide incomefor themselves
in an independent way.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
… introduction…
In the beginning, psychological studies investigated motivations and personal traits that underlie start
up and entrepreneurial success.Over time, the focus turned increasingly towards models that integrate individual and environmental
factors. In fact, recent research highlights ties between personal (motivations, aptitude, risk-taking
tendencies, innovativeness…) and contextual elements (expectations and family characteristics,
social and institutional support …)(Baum et al., 2007; Brockhaus and Nord, 1989; Favretto and Cubico,
2001).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
… introduction…
Sociological studies have been oriented towards understanding social and family backgrounds of entrepreneurs and effects that entrepreneurial choices have on family, roles and social life in
general(Blanchflower, 2000; Steel, 2004).
Economic factors (paucity, opportunity, costs and income), technological developments and their
effects on work, and the demographical factors of entrepreneurs have dominated economic sciences
(Audretsch and Thurik, 2001; Cuervo, 2005).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Research
The present research considers different approaches used in entrepreneurial
studies and focuses on selected personal variables that play a role with aspiring
entrepreneurs before and after the start up process.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Context
Research was carried out in the Chamber of Commerce’s New-
Entrepreneurial-Service in Verona(SNI – Servizio Nuova Impresa),
a free service that offers informational and training services
to aspiring entrepreneurs.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Objectives
• to estimate entrepreneurial aptitudes of people who show entrepreneurial interest and to distinguish specific ways of being, or of not being, an entrepreneur;
• to see whether successful entrepreneurs, when compared to unsuccessful ones, show different motivations in their entrepreneurial choices;
• to describe different choices and behaviour of people who have different motivations and aptitudes
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Instruments
The telephone interviews were supported by these two instruments:
• “Entrepreneurship Questionnaire – EQ” EQ is an ad hoc questionnaire made up of 32 items regarding different aspects of entrepreneurial life;
• “Entrepreneurial Aptitude Test – TAI (Test di Attitudine Imprenditoriale)”.TAI (Favretto and Sartori, 2007) describes the subject in relation to the potential toward entrepreneurship and it is defined by selected factors (Goal Orientation, Leadership, Adaptability, Need for Achievement, Need for Empowerment, Innovation, Flexibility, Autonomy). In this research we used a shortened version (23 items instead of 75), created through the Partial Credit Model – PCM (Master, 1982).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Sample
The sample consists of 100 users (representative of population) of the Chamber of Commerce’s New-Entrepreneurial-Service in Verona (2005-2006), who were contacted by telephone interview in August and September 2007.
The sample breakdown is as follows:• Sex: female 61%; male 39%
• Average age: 32.72 (s.d. 8.29)• Origin: non-city 51%; city 49%
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results
In general,we did not find significant differences
between entrepreneursand non-entrepreneurs regarding:
origin (city/non-city), gender,and previous job.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results: Entrepreneurial Aptitude
In this specific group of aspiring entrepreneurs,
significant differences in the entrepreneurial aptitude did not emerge.
Entrepreneurs and non-entrepreneurs alike show high levels of aptitude;
it is important to remember that the users of New-Entrepreneurial-Service of the
Chamber of Commerce of Verona are aspiring entrepreneurs (not people who
only need information).
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results: Entrepreneurial Aptitude
It is possible however to discern that the different levels in the TAI score
for the subgroup of 21 entrepreneurs present interesting
relationships with:• less difficulty in receiving permits
• less use of private financing(Chi square analysis, pvalue < .05)
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results: Motivations
We have calculated Chi Square (χ2) and significant differences between
entrepreneurs (21) and non-entrepreneurs (79) on motivation.
It is possible to see thatsome motivations
distinguish entrepreneursfrom non-entrepreneurs.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Motivations for entrepreneurial job among entrepreneurs and non-entrepreneurs
(N= 100; Likert Scale: “1-not at all important”, “2-little importance”, “3-more or less important”, “4-important”, “5-very important”; Chi square analysis)
MOTIVATION ENTREPRENEUR NON-ENTREPRENEUR pvalue Course of studies not coherent with previous job
75% “Not at all”
44% “Not at all”
.047
To conciliate work and family 45%
“Little” 27%
“Little” .026
To realize new ideas 30%
“Very” 9%
“Very” .003
To work without a boss 40%
“More or less” 61%
“More or less” .048
Dissatisfaction with previous job 51.0%
“More or less” n.s.
Searching for better economic circumstances
42.9% “More or less”
n.s.
A desire to take risks 56.1%
“Important” n.s.
A desire to escape monotony 53.1%
“Important” n.s.
Previous entrepreneurial family background
82.7% “Not at all”
n.s.
Curiosity because friends have done it 87.8%
“Not at all” n.s.
Personal achievement 55.1%
“Important” n.s.
To have a steady job 65.3%
“More or less” n.s.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results: Behaviour
In the entrepreneurs under study we found that some behaviours enacted during the process of enterprise creation are related to specific personal data variables:
This result reveals that involving banks and seeking information from local trade associations can be related to different motivations and educational
levels.
Taking out a bank loan - Educational level (-.475*) - Motivation: to have a steady job (.755**)
Receiving support from local trade associations
- Difficulty in receiving permits (.449*)
(pvalue: *= .05; **=.001)
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
The Results: Other Variables
In the final part of this work,we have chosen to highlight some other
interesting links that emerge from the research:
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Correlations between personal variables, specific difficulties and motivations in entrepreneurs (N= 21; Rho Spearman; pvalue: *= .05; **=.001)
1/2
Age - Difficulty in receiving permits (-.483*) - Course of studies not coherent with previous job (.462*) - Realization of new ideas (-.458*)
Educational level - Taking out a bank loan ( -.475*) - Dissatisfaction with previous job (-.492*)
Difficulty in receiving permits
- See “Age” - Receiving support by the local trade associations (.499*)
Difficulty of timing with authorizations
- A desire to take risks (.688**) - A desire to escape monotony (.602**) - Working without a boss (.473*)
Satisfaction with New-Entrepreneurial-Service
- A desire to escape monotony (-.585**) - Personal achievement (-.594**)
Dissatisfaction with previous job
- See “Educational level” - Working without a boss (.614**)
Searching for better economic circumstances
- Previous entrepreneurial family background (-.491*)
A desire to take risks - See “Difficulty in receiving permits” - A desire to escape monotony (.712**) - Personal achievement (.585**)
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Correlations between personal variables, specific difficulties and motivations in entrepreneurs (N= 21; Rho Spearman ; pvalue: *= .05; **=.001)
2/2
A desire to escape monotony - See “Difficulty of timing with authorizations” - See “Satisfaction with New-Entrepreneurial-Service” - See “A desire to take risks” - Personal achievement (.638**)
Personal achievement - See “Satisfaction with New-Entrepreneurial-Service” - See “A desire to take risks” - See “A desire to escape monotony
Course of studies not coherent with previous job
- See “Age”
To conciliate work and family
- To have a steady job (.630**)
Realization of new ideas - See “Age”
To have a steady job - Taking out a bank loan (.755**) - See “To conciliate work and family” - To work without a boss (.557*)
To work without a boss - See “Difficulty of timing with authorizations” - See “Dissatisfaction with previous job” - See “To have a steady job”
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Considerations about these last results… • AGE: a higher age helps in the relationship
with bureaucracy and reduces new ideas;• EDUCATIONAL LEVEL: higher levels raise the
use of the financing and seems to trigger minor levels of dissatisfaction accompanied by less desire to change from previous job;
• aspiring entrepreneurs that declare a strong MOTIVATION TO ESCAPE MONOTONY present particularly in receiving permits and less satisfaction with the New-Entrepreneurial-Service, it seems that this type of person is less able to manage bureaucratic relationships;
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
… considerations about these last results • the DESIRE FOR A STEADY JOB and to
CONCILIATE WORK AND FAMILY appear strongly related, as if a tranquil life is part of this way of working;
• to WORK WITHOUT A BOSS appears to be correlated in an interesting way to DIFFICULTY WITH TIMING OF AUTHORIZATIONS and with DISSATISFACTION IN PREVIOUS JOB, indicating that “authority” might be a specific problem with some aspiring entrepreneurs.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Discussion
We have found that successful entrepreneurs (users that create
enterprises after their contact with the New-Entrepreneurial-Service) present
specific characteristics.• People who have high entrepreneurial
aptitudes manage bureaucratic phases and their personal financial resources
better.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Discussion
Different motivations characterized the successful entrepreneur, in fact he/she
is:• not at all motivated by past education;
• less driven by personal time management issues;
• more or less motivated by the desire to work without a boss
• very much motivated by the possibility of realizing new ideas.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Discussion
In our research, even with its limited sample number, it is possible to suggest that educational level
influences financial autonomy and that local trade associations are an
effective type of support for aspiring entrepreneurs that perceive difficulty in some
bureaucratic phases.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
Discussion
These results show that successful entrepreneurs are different from
unsuccessful entrepreneurs (above all in certain motivations), which has practical
consequences on career guidance of aspiring entrepreneurs, on
entrepreneurial training and on decision-making support for
entrepreneurial choices.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
References
• Audretsch, D.B. and Thurik, R. (2001). What’s New about the New Economy? Sources of Growth in the Managed and Entrepreneurial Economies. Industrial and Corporate Change, 10(1), 267-315.
• Baum, J.R., Frese, M. and Baron, R. (Eds.)(2007). The Psychology of Entrepreneurship. Lawrence Erlbaum Associates: Mahawah, NJ.
• Blanchflower, D.G. (2000). Self-employment in OECD Countries. Labour Economics, 7, 471-505.• Brockhaus, R.H. and Nord, W.R (1989). An exploration of factor affecting the entrepreneurial decision: Personal
characteristics vs. environmental conditions. Proceeding of the Academy of Management, 364-368.• Cuervo, A. (2005). Individual and Environmental Determinants of Entrepreneurship. International Entrepreneurship
and Management Journal, 1, 293-311.• Dowling, M. and Schmude, J. (Eds) (2007). Empirical Entrepreneurship in Europe. New Perspective. Edward Elgar
Publishing: Northampton, Massachussets.• European Commission (2003). Green Paper. Entrepreneurship in Europe. COM(2003) 27 final, Brussels 21.1.2003.• Favretto G. and Sartori R. (a cura di) (2007). Le età dell’impresa. Giovani imprenditori e lavoratori esperti.
FrancoAngeli: Milano, Italia.• Favretto, G. e Cubico, S. (2001). L’esperienza del Centro Imprenditoria Giovanile di Verona. Valutazione e sviluppo
del potenziale imprenditoriale, Magellano, 7, 23-32.• Fritsch, M. and Mueller, P. (2004). Effects of New Business Formation on Regional Development over Time. Regional
Studies, 38(8), 961-975.• GEM – Global Enterpreneurship Monitor (2005), Rapporto Nazionale Italia, [on line: www.gemconsortium.org].• Grilo, I. and Thurik, R. (2002). Determinats of entrepreneurship in Europe, in Audretsch, D.B., Thurik, R., Verheul, I
and Wennekers, S. Entrepreneurship: Determinants and Policy in a European-US Comparison. Kluwer Academic Publisher: Dordrecht.
• Masters G. N. (1982). A Rasch Model for Partial Credit Scoring. Psychometrika, 47, 149-174.• Steele, G.R., (2004). Understanding Economic Man. Psychology, Rationality, and Values. The American Journal of
Economics and Sociology, 63(5), 1021-1055.
S. Cubico, E. Bortolani, A. Cubico, G. Favretto
Centro Imprenditoria GiovanileUniversità di Verona
“Thank you
for your
kind attention…”