Professional Documents
Culture Documents
Entrepreneurial Intention
Entrepreneurial Intention
Entrepreneurial Intention
antecedents to
entrepreneurial
behaviour in the U.S.A. &
Turkey
BY NUDRAN OZARALLI AND NANCY K RIVENBURGH
PRESENTED BY MUHAMMAD FAROOQ SIDDIQUI
Introduction
Universally defining entrepreneurship as the process of creating something new with value by
devoting the necessary time & effort, assuming the accompanying financial, psychic, and social
risks, and receiving the resulting awards of monetary & personal satisfaction & independence
United States – Policy incentives, relatively open immigration policy, other structural factors plus a
culture of determination & motivation. Global Entrepreneurship Monitor (2013) – US exhibits one
of the highest entrepreneurship rates in the developed world.
US- 51% prefer working alone – Europe 58% prefer working as employee in a firm
Reason for lack of entrepreneurial intent in Europe: Lack of business experience, difficulty to raise
start up capital, red tape, poor economic environment & an innate European fear of failure ---
Eurobarometer Survey on Entrepreneurship
Turkey- Growing economy with declining inflation rates, diverse industrial base, strong domestic
market, relatively stable political/economic environment and progressive economic policies
encourage entrepreneurship. Population is young providing an enhanced talent pool
Turkey is ranked 52nd for entrepreneurship in the world – 9 out of 100 are entrepreneurs (GEM
2010)
Background
Personality traits
Traits included which differentiates btw Turkish & US students due to cultural differences
Optimism, innovativeness, risk taking propensity & competitiveness
Optimism: Looking at brighter side of things & being positive on future. Positive emotions are
imperative for entrepreneurial activity.
Optimism, hope & resilience are critical for successful leaders
Innovativeness: Turning ideas & knowledge into new value via creative thinking. Ability and
tendency to think creatively while recognizing opportunities to produce novel & practical ideas
Primary motive to start a new venture
Risk Taking Propensity: Tendency to take or avoid risk. Greater risk acceptance Stronger
entrepreneurial intention.
Competitiveness: Personality trait related to new venture creation. Schumpeter stressed role for
competitiveness as major motivation. Need for achievement association.
Social Factors
Experiential Activities: Experiences promote creative thinking & idea generation central to
innovation & new venture development – Creative Catalyst
Experience like living in cities, travelling abroad, trying new foods, meeting new people of
diff cultures, exposure to foreign literature, movies & music can contribute to cognitive
diversity. Cognitive diverse can be more creative -- Page (2007)
Exposure to others creativity also enhances creativity. Seelig (2012)ones immediate
surroundings greatly influences innovation & creativity
Not living in an environment that rewards & stimulates the generation of new ideas
unlikely creativity will flourish
Exposure to nature also enhances creativity, Frumkin & Fox (2011) say that being in
contact with natural settings elicit a sense of wonder & fascination disengaging from
normal thoughts while allowing mind to wander. Natural environments catalyse shift in
attitudes creating psychological space for creativity
Entrepreneurship Education: Development & improvement of entrepreneurial inspiration,
awareness, knowledge & skills required to make & run a venture
Social Factors
Entrepreneurial intention measured with 6 items (it is a high probability that ill start
own business in foreseeable future). Measured by nominal scale of 1=Yes or 2=No
Students self-evaluated traits like optimism, innovativeness, risk taking propensity &
competitiveness on Likert scale 1= Strongly Disagree to 6= Strongly agree
Optimism -> Assessed by 4 items from Life Orientation test
Innovativeness was measured by an 8 item innovation scale from Jackson
Personality Inventory Manual
Risk taking Propensity measured by 5 item reduced version of Risk Orientation
Questionnaire like I would rather like to be on safer side
Competitiveness was measured by 5 item scale
Experiential Activities measured by Likert & nominal scales. Students describe their
experiences
Entrepreneurial education – 2 items scale of 1=Yes or 2=No --- 3 items likert scale
Survey Instruments