Why People Say No to Entrepreneurship? a comparative study (Gaspar, 2008)

• If you want people to create startups, you need them to be willing to do so, otherwise, they won’t see business opportunities even if they step on them.

• Non-entrepreneurs give greater importance to responsibility, dealing with staff, lack of experience and to the long hours they think are required to create a company

• Non-entrepreneurs believed were less confident in their capacities than potential entrepreneurs, in every item, building a network of contacts, developing new products, leadership and communication, problem solving, creativity, and identifying business opportunities.

The Social Dimensions of Entrepreneurship

• Past research addressing issues such as management, organization development and innovation has for a long time focused on mature, predominantly large enterprises. Small and medium-sized firms (SMEs) have typically been ignored

The Role of Risk-Taking in Singapore

• Entrepreneurs are able to give up job security and take specific kinds of risks related to launching a new venture because they have confidence that they will either succeed or be capable of carrying on a successful career.

• Risk is more productively seen as a decision-making variable.

• The third school sees risk behavior of Chinese entrepreneurs as contextual and driven by environmental factors.

• The Report argued that contemporary Singapore has a low tolerance for failure.

• Failure at the job or in business will mean “castigation and ruin”

• Talented professionals select safe jobs with large multinational corporations

• With full-employment, high salaries, and job security in both the public and private sectors, there have been no “push” factors for graduates and professionals to start their own business ventures.

Resistance to change

• Resistance is equivalent to inertia, as the persistence to avoid change

• inertia and thus resistance are not negative concepts in general, since change is not inherently beneficial for organizations. Even more, resistance

could show change managers certain aspects that are not properly considered in the change process.

• Leadership inaction, sometimes because leaders are afraid of uncertainty, sometimes for fear of changing the status quo

• By resistance to change we understand any phenomenon that hinders the process at its beginning or its development, aiming to keep the current situation.

• We would suggest that managers should pay special attention to certain topics. First, to reduce resistance caused by deep-rooted values, managers should consider how much organizational culture fits with change objectives and what could be done to improve such fit before the change process starts. This cultural consideration would also help to bring employees and management interests closer and to avoid organizational silence.

• Another key aspect in change seems to point towards training. Training would be a good tool to surpass communication difficulties and thus avoid resistance caused by communication barriers, as well as to help reduce the gap between the present situation and the capabilities required for the change process.

Policy and laws affect entrepreneurship

• Wealth is an important factor responsible for self-employment.

• Need for wealth taxes to be reduced so that entrepreneurs can feel more financially secure and have more incentives to invest. Income tax cuts should help wealth accumulation.

• It shows that entrepreneurs with limited liability protection tend to use more financial leverage because they have more wealth outside of their firms.

Entry regulation as a barrier to entrepreneurship

• We find that costly regulations hamper the creation of new firms, especially in industries that should naturally have high entry.

• There is a growing view that costly regulations impede the setting up of businesses and stand in the way of economic growth.

• the rate of new corporation creation in ‘‘naturally high-entry’’ industries is relatively lower in countries with higher entry costs, suggesting that these costs matter. they matter most in richer countries, or countries that are not corrupt, where the regulations on the books are more likely to be enforced.

Culture and entrepreneurship

• low levels of education, low asset levels, smaller probabilities of having self-employed parents, demographic trends, and discrimination all have been

cited as reasons for the limited level of entrepreneurship

Bankruptcy laws affect entrepreneurship development around the world

• We posit that if bankrupt entrepreneurs are excessively punished for failure, they may give up potentially high-return but inherently high-risk opportunities to start new businesses.

• we find that lenient, entrepreneur-friendly bankruptcy laws are significantly correlated with the level of entrepreneurship development as measured by the rate of new firm entry.

• Some countries provide only limited protection for entrepreneurs and managers of bankrupt firms, while others have more entrepreneur-friendly bankruptcy laws.

• Corporate bankruptcies are common. While all entrepreneurs are interested in success, unfortunately a majority of their ventures fail and many end up in bankruptcy. A challenge confronting policymakers around the world is: How to facilitate more entrepreneurship development in the face of such odds against entrepreneurial success?

3 effective strategies for eliminating fear

• comfortable in my job so taking the leap was a scary thought.

• Then, the responsibility to deal with un- certainty beyond the boundary of the job will be transferred to the superior, and the worker does not have to take the responsibility. This is why he receives a fixed wage. The top is the true entrepreneur in a large organization.

• On the other hand, when compared with hierarchic organizations, peer groups have two disadvantages. The first is :hat both the cost of decision-making and that of communication are large

Why do people start new businesses?

• When lucrative non-entrepreneurial job opportunities are available, the NE becomes more likely to exit the business planning process when easily attracted to a high-paying job with a salary from day one

Are we committed to teach entrepreneurship in business?

• Since educators’ teaching behaviour contributes to their effectiveness as teachers, their commitment to teaching entrepreneurship and institutional support received by them for discharging their duty as “entrepreneurial teachers and mentors” becomes an important

• the commitment of the faculty teaching entrepreneurship and the level of the institutional support provided to them

• Other scholars have opined that entrepreneurship education includes a set of programmes oriented to inform, train and educate anyone interested in entrepreneurship and to create awareness for the need of starting new businesses

• Kolvereid and Moen’s (1997) finding that an entrepreneurship graduate has higher intention of starting a business than a business management graduate is on the same lines.

• Clark et al. (1984) conducted a study to determine the contribution of teaching of entrepreneurship in the new venture creation process and found that a positive relationship exists between the two. In the same vein, Ronstadt (1987, p. 39) suggested that “strong indications exist that an entrepreneurial education will produce more and better entrepreneurs than were produced in the past”.

• to effectively deal with a multi-disciplinary area like entrepreneurship, the teacher needs to possess knowledge and understanding of various subjects in management and other disciplines (Bennett, 2006; Binks et al., 2006; Tan and Ng, 2006); it has been suggested that the absence of wide-ranging knowledge acts as one the major hurdles to effectively teaching entrepreneurship (Sexton and Bowman, 1984, cited in Bennett, 2006, p. 172).

Entrepreneurship Education and training

• Jamieson (1984) has suggested a three-category framework by which to organise entrepreneurship education

Interest in entrepreneurship

• This spells the need for universities to introduce entrepreneurship subjects to non-business disciplines

•