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Lecture 5

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shahryar khan
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20 views

Lecture 5

d.mnf,smdfn sdf sdn fsdnf sdmfnsd,jc

Uploaded by

shahryar khan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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NON- MOTIVATIONAL INFLUENCE ON ENTREPRENEURSHIP

Non-motivational influences or the dark side is used with reference to the stress producing
tendency of each of the issues discussed below.
Opportunity Cost: According to a study by Amit et al., (2009) entrepreneurs are more likely to
undertake entrepreneurial activities when their opportunity costs are lower. That is paid workers
who chose to become entrepreneurs do so because they have less to lose (i.e. lower opportunity
costs) by leaving their paid work.
Stocks of Financial Capital: This refers to the amount of money an individual is able to
accumulate or stock. Evans and Leighton (1989) found that the hazard into self-employment is
constant in age. And older workers tend to have the propensity to become entrepreneurs because
they would have had time to build up the capital needed to start a business unlike younger workers.
Social Ties to Investors: The importance of social embedding in the creation of a new business
has been appreciated by scholars of entrepreneurship. Aldrich and Zimmer (1986) note that
entrepreneurs are highly social actors and they actively embed themselves in social contexts. For
instance, in the course of their entrepreneurship research, they found that immigrant entrepreneurs
in many cases formed ethnic networks to share capital or business in order to overcome hostility
in the host countries. Thus, given these conditions, an individual will be propelled to become an
entrepreneur.
Career Experience: This is closely related to unsatisfactory work experience. If an individual is
not happy with his/her job and has acquired a great deal of experience on the job and possesses
entrepreneurial abilities, then there is the tendency for the person to become an entrepreneur.
Life-Path Circumstances: This refers to individual circumstances within the life-path of
individuals that propel them to become entrepreneurs. These are factors such as:
Unsatisfactory Work Environment: When an individual is dissatisfied with his work
environment or finds the work environment unconducive, then in rebellion, he will quit the job
and seek alternative employment. However, if the individual in question is an entrepreneur, then
he is likely going to start his own business.
Negative Displacement: This arises when unforeseen circumstances in an individual’s life-path
causes the person to make major changes in lifestyle. This could be an accident, the loss of dear
ones or sponsors etc. When such occurrences happen, the individual is forced to undergo a drastic
change in the lifestyle and as such may become an entrepreneur.
Career Transition: This situation arises when an individual is between one career-related activity
and another. For instance, when an individual who was initially a copy typist goes to Secretarial
School and obtains a certificate, then there is a career transition which can necessitate the creation
of a new business.

CLASS ACTIVITY
Every student is required to write down his/her own capabilities and match with the capabilities
of an entrepreneur. What would be your motivation to start a new venture?

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