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Starting Ones Own Business What Motivates Entrepreneurs?

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The purpose of this study was to determine the factors that motivate and challenge people when starting up their own small business. This paper includes the challenges that entrepreneurs encounter, advantages and disadvantages of owning ones own business, as well as highlighting the factors that are important to succeed in owning ones own business. The study was quantitative in nature and made use of an online survey questionnaire to collect data from entrepreneurs and potential entrepreneurs in KwaZulu Natal, South Africa. The results indicated that the most motivational factors include the desire to pursue a business idea and that they want to be their own boss. The results further highlighted that the main challenges for small business owners are financial in nature as well as support from the government.
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International Business & Economics Research Journal March/April 2015 Volume 14, Number 2
Copyright by author(s); CC-BY 237 The Clute Institute
Starting One’s Own Business –
What Motivates Entrepreneurs?
Y. Hefer, University of South Africa (UNISA), South Africa
M. C. Cant, University of South Africa (UNISA), South Africa
J. A. Wiid, University of South Africa (UNISA), South Africa
ABSTRACT
The purpose of this study was to determine the factors that motivate and challenge people when
starting up their own small business. This paper includes the challenges that entrepreneurs
encounter, advantages and disadvantages of owning one’s own business, as well as highlighting
the factors that are important to succeed in owning one’s own business. The study was
quantitative in nature and made use of an online survey questionnaire to collect data from
entrepreneurs and potential entrepreneurs in KwaZulu Natal, South Africa. The results indicated
that the most motivational factors include the desire to pursue a business idea and that they want
to be their own boss. The results further highlighted that the main challenges for small business
owners are financial in nature as well as support from the government.
Keywords: Entrepreneurs; Small And Medium Enterprises; Motivation; Challenges
INTRODUCTION
mall businesses form the cornerstone of many economies. However, it is a known fact that very few
companies start off big and, similarly, very few small companies grow into large multinationals. It is
therefore important to define the difference between a small and medium-sized enterprise. There is no
universal definition for either of these two types of businesses.
In the USA, for instance, the Small Business Administration (SBA, 2012) defines a small business as “…
one that is independently owned and operated, is organized for profit, and is not dominant in its field”. Depending
on the industry, size standard eligibility is based on the average number of employees for the preceding twelve
months or on sales volume averaged over a three-year period (The U.S. Small Business Administration, 2014). A
small business in Europe is one that is independent and has less than 250 employees (European Commission, 2014).
In South Africa, the accepted definition for a small and medium sized enterprise is “...any entity, whether or not
incorporated or registered under any law, consisting mainly of persons carrying on small enterprise concerns in any
economic sector, established for the purpose of promoting the interests of or representing small enterprise concerns,
and includes any federation consisting wholly or partly of such association, and any branch of such organisation ...”
(South Africa, 2003). Small and medium enterprises usually have less than 200 employees.
Against this background, this study has been undertaken and the focus will fall on reasons as to why these
businesses were started.
DISCUSSION
Small And Medium Sized Enterprises: Its Place And Role In The Economy
The place and role of small and medium sized enterprises in the economy of any country, and its impact on
job creation, cannot be disputed. Forbes (2012) states that the role that small businesses play in the U.S. economy is
sometimes understated; however, there is nothing small about the impact that small businesses have on their
economy. According to the U.S. Small Business Administration (2014), small businesses provide 55% of all jobs in
S
International Business & Economics Research Journal March/April 2015 Volume 14, Number 2
Copyright by author(s); CC-BY 238 The Clute Institute
the United States. In Australia, small businesses account for almost half of the employment in the private sector and
over one-third of production (Reserve Bank of Australia, 2012). As is the case in these countries, South Africa also
regards small businesses as important drivers of economic growth, job creation, and black economic empowerment.
The economic growth, the creation of employment, and the alleviation of poverty in South Africa have been linked
to the growth of small businesses.
As a result of the significance and importance of this sector, small and medium enterprises (SMEs) in
South Africa have received significant consideration and investment over the past number of years from
government, ranging from the establishment of state-initiated projects to supportive legislation, a variety of funding
institutions, and government incentives through the Department of Trade and Industry (DTI).
Given the support and assistance provided to numerous small businesses and the significant role it plays in
the economy, many unemployed and employed people have taken the step to start their own business. Being self-
employed is a trend that is increasing in South Africa, and apparently worldwide. The number of small businesses
started in the USA, for example, was 27.9 million in 2010 (SBA, 2012), while in South Africa, there were 5.9
million in 2010 (Finmark Trust, 2010).
In South Africa, SME’s make up 55% of all employment (Van Scheers, 2011) which equates to 19.2
million jobs of all employed people (Adcorp, 2012). Currently, 5% of the South African population is carrying the
remaining 45% economically and, therefore, entrepreneurship is seen as the only way to have a sustainable economy
in the future (Germishuizen, 2012).
The economic downturn and resultant worldwide depression that started in 2008 has still not been
overcome and many economies are still struggling in 2014. Spain’s rate of unemployment and upsurge of poverty is
now at its slowest since the global financial crisis in 2008. However, unemployment is still an immense issue, with
26.3% in their second quarter (Harress, 2013). Similar to Spain, several European countries that broke free from the
recession are still trying to recover from unemployment and massive public debts. Even though South Africa’s
economy has performed well and remains stable, unemployment is still a great challenge, particularly among the
youth (SABC News, 2013).
This economic downturn has led to many international crises, including huge financial bailouts for
European Union members such as Greece and Portugal. Millions of people all over the world lost their jobs, with
unemployment figures in the USA, Europe and South Africa reaching record levels. The result was that many people
started their own businesses - not because they all wanted to but because they had to. Not all were equipped to
successfully run their businesses and added to this was the introduction of the National Credit Act. Credit allows
consumers to spend money they don’t really have and to spend more money than they make. Consumers make use
of credit even when they have cash and then they make new debt to pay off old debt. The National Credit Act (35 of
2005) is part of a complete regulation overhaul intended to guard the consumer in the credit market (The Banking
Association, 2013). This placed restrictions on lending criteria and banks have become extremely strict in assessing
self-employed applications.
Reasons For Starting An Own Business
Various studies have been conducted as to the reasons why people start their own businesses and it has
been found that there is a high level of similarity between countries. For instance, studies conducted in the United
States, United Kingdom and Australia indicated the following most popular reasons for starting their own business
(Smith, 2007): 59% because they wanted to be their own boss, 50% had a desire to pursue a business idea, 50%
because of their financial ambition, and 44% took advantage of an opportunity that emerged in the marketplace.
More than one-third (36%) said they were frustrated with how big companies operate, while 15% of business
owners said that their previous employer did not provide them with adequate opportunities. Only 1% of respondents
inherited a family business.
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Copyright by author(s); CC-BY 239 The Clute Institute
Other reasons respondents gave as to why they started their own business include the following (Smith,
2007):
Being laid off and the aspiration “to make things, to improve the world”
A wish to live their own lifestyle
Miss-match between the values, goals, and ambitions of the entrepreneur and their employers they find
themselves motivated to go on their own and start their own business
From the above findings, it can be inferred that the desire to “be my own boss” is the most mentioned
reason selected by these business owners for starting their own business. There is a clear force among these business
owners; that is, to be self-determining and in charge of their own future. Such studies have not yet been done in
South Africa; therefore, this study will investigate and identify the reasons why South African small business
owners started their own businesses.
Advantages And Disadvantages Of Owning One’s Own Business
As indicated above, having one’s own business is not always easy or a guarantee for success. Numerous
people say that they want their own business; however, they have no idea how complex such a task is. Having your
own business is nothing like just having an ordinary job and most people’s experiences come from having a job and
working for somebody else. Any person can decide to start their own business; however, not everyone will be
fortunate enough to succeed. In exchange for the opportunity of owning one’s own business, one gives up benefits
that every day employees take for granted, such as a job term, a regular salary, paid vacations and sick leave, plus
the ability to leave your job behind at the end of the day. There are a number of advantages and disadvantages
associated with owning a business.
The following are advantages and disadvantages of owning one’s own business (Kishel & Fisher, 2005):
Advantages
Control - The authority to make decisions rests with the owner of the business.
Creative freedom - Your ideas and talent can be freely expressed.
Profits - The more successful your business, the more money you can put in your pocket.
Job security - You can’t be fired, laid off or forced to retire.
Pride - Knowing you built your business with your own efforts.
Wealth - Opportunity to create an asset that you can borrow against, sell or pass on to someone else.
Disadvantages
Investment at risk - If the business fails, you could lose your entire investment.
Long hours 12-hour days are needed, especially in the beginning, to get the business going.
Fluctuating income - Instead of reliably receiving a steady pay check, you depend on the ups and downs of
the business.
Responsibility - The freedom to make your own decisions carries the risks of standing by them.
Pressure - There’s always pressure to please consumers, payroll, and suppliers/creditors.
Regulations - You must abide by the local laws and safety stipulations.
Characteristics Of An Entrepreneur
According to Robinson (2014), entrepreneurs have different qualities than commercial managers, including
tenacity, passion, tolerance, vision, self-belief, flexibility, and rule-breaking (Robinson, 2014). Entrepreneurs have
to be able to deal with uncertainty and push through various complications. They also need a powered passion for
their product and service. The skill to spot an opportunity that no one else sees is also a defining characteristic of an
entrepreneur, together with self-confidence to be positive that your product or service is something that the world
needs.
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Copyright by author(s); CC-BY 240 The Clute Institute
Previous research has shown that individuals who possess certain characteristics, such as motivation,
confidence, willingness, and vision, are more likely to succeed in their own business than those who fall short of
these characteristics (Kishel & Fisher, 2005).
RESEARCH METHODOLOGY
Purpose Of Study
A questionnaire was developed for this study in determining the motivations and challenges for starting
your own business. The questionnaire mostly incorporated questions that are of quantitative nature. An online
survey questionnaire (Survey Monkey) was used to collect the data from entrepreneurs and potential entrepreneurs
in the South African province of KwaZulu Natal. A sufficient number of questionnaires were sent out for a
confidence level of 95% and a confidence interval of 10. A total of 39 usable responses were received, giving a
95% confidence level and a 14.8 confidence interval at 50%.
The demographic profile of the respondent group is presented in Table 1. It is clear that the respondents are
predominantly female (64.1%), African (85%), and 82.5% (45% + 37.5%) are younger than 40 years of age or
younger. Most respondents (82% = 12.8% + 43.6% +17.9% + 7.7%) have post-school qualifications and 54.1%
already do have small businesses. A proportion of 45.9% respondents are planning to start their own businesses.
The sample thus has an approximate equal proportion of existing and potential entrepreneurs.
Table 1: Demographic Profile
Gender
N
%
Male
14
35.9%
Female
25
64.1%
Business status
Own business
20
54.1%
Planning to start-up own business
17
45.9%
Age category
21-30
18
45.0%
31-40
15
37.5%
41-50
5
12.5%
Older than 50
2
5.0%
Race category
African
34
85.0%
Indian
3
7.5%
White
3
7.5%
Level of education
Did not matriculate
1
2.6%
Grade 12
6
15.4%
Certificate only
5
12.8%
Diploma only
17
43.6%
Undergraduate degree
7
17.9%
Post graduate degree
3
7.7%
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RESULTS
Motivation For Starting An Own Business
Respondents provided their view on motivation on a scale of low, medium and high.
Table 2: Motivating Reasons
Motivating Reasons
Motivation Rating
Low
Medium
High
Desire to pursue a business idea
7.50%
7.50%
85.00%
I have the skills for the business
7.89%
10.53%
81.58%
Want to be my own boss
5.13%
15.38%
79.49%
Financial ambition
10.00%
22.50%
67.50%
Took advantage of an opportunity that emerged in the marketplace
20.51%
20.51%
58.98%
Lack of opportunity with previous employer
35.90%
25.64%
38.46%
Have no alternative income source
62.16%
13.51%
24.33%
Frustrated with how big companies operate
30.77%
46.15%
23.08%
Do not have a job
65.79%
18.42%
15.79%
Invited to run someone else’s business
81.08%
8.11%
10.81%
Inherited a family business
86.49%
8.11%
5.41%
Retrenched
94.44%
2.78%
2.78%
The top motivating factors are:
Desire to pursue a business idea (85%)
I have the skills for the business (81.58%)
Want to be my own boss (79.49%)
The least motivating factors are:
Retrenched (94.44%)
Inherited a family business (86.49%)
Invited to run someone else’s business (81.08%)
It may be observed that the top motivating factors are predominantly positive and include financial
ambition, independence, and application of skills.
“Inheritance of family’s business” and “Invitation to run someone else’s business” may not be applicable to
the respondents, hence a low motivation score allocated to these items. “Retrenchment”, “Do not have a job”, and
“No alternative source of income” are decidedly not motivating factors to start one’s own business. The latter may
be considered demotivating and possibly these respondents may be unaware of the opportunities that do exist for
entrepreneurs.
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Challenges In Starting Up A Business
Respondents provided their view on challenges on a scale of low, medium and high.
Table 3: Challenges Of Starting Own Business
Challenges Starting Own Business
Low
Medium
High
Getting funding
10.3%
15.4%
74.4%
Providing security to banks
26.3%
21.1%
52.6%
Lack of government support
29.0%
21.1%
50.0%
Finding the right premises
26.3%
26.3%
47.4%
Time available to do proper planning of the business
20.5%
33.3%
46.2%
Lack of available qualified staff
32.4%
24.3%
43.2%
Being able to compete with larger companies with prices
34.2%
23.7%
42.1%
Lack of experienced staff
35.1%
24.3%
40.5%
Securing suppliers
34.2%
31.6%
34.2%
Lack of marketing knowledge
29.0%
39.5%
31.6%
Lack of knowledge of the business
48.7%
24.3%
27.0%
The three top challenges facing entrepreneurs/potential entrepreneurs are as follows:
Getting funding (74.4%)
Providing security to banks (52.6%)
Lack of government support (50.0%)
The least challenging factors, with the highest scores of low, are as follows:
Lack of knowledge of the business (48.7%)
Lack of staff experience (35.1%)
Securing suppliers (34.2%)
Being able to compete with larger companies with prices (34.2%)
Investigation Into The Relationships Between Motivating And Challenges In Starting Up A Small Business
A series of one-way Analysis of Variance (ANOVA) statistical tests were employed to determine whether
there were significant statistical differences between the mean critical scores of high and low motivating factors. No
statistical evidence could be found.
A series of one-way Analysis of Variance (ANOVA) statistical tests were employed to determine whether
there were significant statistical differences between the mean critical scores of high and low challenging factors. No
statistical evidence could be found.
A Chi-Square test of association was also conducted between the Motivation factors (low and high) and the
Challenging factors (low and high).
No association could be found at the 0.05 level of significance:
(Chi-Square value=0.094, DF=1, p-value =0.7593)
Figure 1 displays the Motivating and Challenging groups.
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Figure 1: Motivation And Challenges
Investigation into the influence of the biographic profile of respondents upon the Motivating and
Challenges, revealed:
Whether respondent is an existing small business owner or a potential owner
Gender
Age
Level of education
A series of Chi-Square tests of association were conducted between motivating factors and challenges
facing the business owner in starting up a small business and the biographic information of the respondent at the
0.05 level of significance. No statistical evidence of any association could be found.
CONCLUSION
A small, medium and micro enterprise (SMME) in South Africa is any business with fewer than 200
employees and an annual turnover of less than R5 million, capital assets of less than R2 million, and the owner is
directly involved in the management of business (Mago & Toro, 2013).
The study revealed that most small business owners in KwaZulu Natal established their businesses due to
desire to pursue a business idea (85%), as well as possessing the skills to conduct business (81.58%) and wanting to
be their own boss (79.49%). The least motivating aspects are retrenchment (2.78%), inheritance of a family business
(5.41%), and an invitation to run someone else’s business (10.81%). The main challenges for the small business
owner are of financial nature; i.e., getting funds (74.4%) and providing security to banks (52.6%), as well as support
from government (50%). The results, in terms of financial challenges, support research findings undertaken by other
researchers. The least challenging factors include lack of knowledge of the business (34.2%), lack of marketing
knowledge (31.6%), and securing suppliers (27.0%). It is reflected in the study that there is no significant
relationship between motivation and challenges in starting up a business. Furthermore, no statistical evidence of any
association between motivation and challenges in starting up a business and the biographical profile of the small
business owners could be found in the study.
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Why it is a challenge for small business owners to obtain and secure finances wasn’t researched and
analysed. While operations of finance providers are beyond the control of the small business owner, it is
recommended that the focus should be on aspects that fall inside his/her ambit of control, such as self-improvement,
improvement of business, and managerial skills. This would be to the advantage of the small business owner as it
could lead to better planning, business plans, viability studies, and preparation to obtain the necessary funds and
taking the business forward. It is further recommended that the study is expanded to other provinces and to increase
the number of respondents
AUTHOR INFORMATION
Mrs. Yolandé Hefer is a lecturer in the Department of Marketing and Retail at the University of South Africa
(UNISA). She holds a Consumer Science degree in Fashion Retailing, as well as a Master’s degree in Marketing.
She has ten years of experience in the retail sector and has worked in one of South Africa’s major retail stores as a
visual merchandiser. Her research interests include marketing, retail, and merchandising.
E-mail: hefery@unisa.ac.za.
Professor Michael C. Cant is the head of the Department of Marketing and Retail Management at the University of
South Africa (UNISA). He has published over 50 accredited articles in refereed journals and is the editor and author
of numerous marketing textbooks which are widely prescribed at universities in South Africa. He has presented
papers at more than 45 international conferences all over the world and is a well-respected marketing and retail
scholar. He holds a DCom in Marketing from the University of South Africa.
E-mail: cantmc@unisa.ac.za.
Professor Johannes A Wiid is a Professor in the Department of Marketing and Retail Management at the
University of South Africa (UNISA). He has published numerous articles in refereed journals and is the editor and
author of various marketing-related textbooks which are widely prescribed at universities in South Africa. He holds
a DCom in Marketing from the University of Johannesburg.
E-mail: jwiid@unisa.ac.za.
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NOTES
... According to the findings, both friends and family members were sources of encouragement for these entrepreneurs to start a business. Studies have shown that people start businesses due to family influence (Hefer et al., 2015). ...
... Thus, being an entrepreneur is an option. This is supported by research (Hefer et al., 2015) that found that 50% of entrepreneurs started their businesses for financial reasons. ...
... The interview also revealed that small business owners have trouble researching high-value contracts due to a lack of sufficient money to pre-finance if the circumstance requires it. Due to financial constraints, small businesses are sometimes unable to compete for contracts and are deprived of getting loans even from financial institutions (Hefer et al., 2015). ...
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... Analyses at the national level show a difference between developed and developing countries. Generally, in developing countries, the most important startup business motivation factors are connected to income and independence, while in developed countries, independence and satisfaction factors are rated the highest [27][28][29][30][31]. Motives related to family and the maintenance of family traditions are less popular. ...
... The questionnaire included questions about exhibitors' motives to start a business and the goals of participating in festivals in terms of business, family and traditions, culture and passion. These categories most often appeared in the studies of Chen and Elston [24], Getz and Carlsen [26], Stefanovic et al. [27], Sloka et al. [28], Hefer [30], Barba-Sanchez and Atienza-Sahuquillo [31], Pret and Cogan [41] and Omaka [45], who conducted research in this field. ...
... The most popular motive chosen by the surveyed exhibitors was starting their own business, which is an expression of broadly understood independence. This confirms the results of Stefanovic et al. [27], Sloka et al. [28], Medaković et al. [29], Hefer et al. [30] and Barba-Sanchez and Atienza-Sahuquillo [31]. ...
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This paper aims to present the motivation of exhibitors participating in food festivals to establish and run a business. The conducted research is an attempt to fill the gap in research on exhibitors who participate in food festivals. During three different Polish culinary festivals, 58 in-depth interviews with exhibitors were conducted. Based on the research, the main startup business motives were identified. The current goals of exhibitors’ participation in culinary festivals were also analyzed. Based on the list of motives and goals, three groups of exhibitors were distinguished with similar characteristics (starting own business, continuation of family traditions, and culinary interest). The study also takes into account the changes that have occurred between the startup’s business motives and the goals of participation in the festival (“business-business”, “business-business-business-family”, and “business-passion-passion-business”). The comparison of the initial motives for setting up a business with the current goals of participating in food festivals shows that, regardless of the initial motives, the exhibitors currently focus on business goals.
... In principle, what they do is the same as the learning patterns of entrepreneurs in general. Many studies show that to be an entrepreneur needs motivation and ideas so that the business can run well (Hefer et al., 2015;Medakovi c et al., 2015;Oyeku et al., 2014;Watson et al., 1998); also, a skill (Arasti et al., 2014;De Clercq and Arenius, 2006;Hefer et al., 2015;Watson et al., 1998). All of that can be obtained through training or training (Hefer et al., 2015;Watson et al., 1998); they do so informally and without incurring costs. ...
... In principle, what they do is the same as the learning patterns of entrepreneurs in general. Many studies show that to be an entrepreneur needs motivation and ideas so that the business can run well (Hefer et al., 2015;Medakovi c et al., 2015;Oyeku et al., 2014;Watson et al., 1998); also, a skill (Arasti et al., 2014;De Clercq and Arenius, 2006;Hefer et al., 2015;Watson et al., 1998). All of that can be obtained through training or training (Hefer et al., 2015;Watson et al., 1998); they do so informally and without incurring costs. ...
... Many studies show that to be an entrepreneur needs motivation and ideas so that the business can run well (Hefer et al., 2015;Medakovi c et al., 2015;Oyeku et al., 2014;Watson et al., 1998); also, a skill (Arasti et al., 2014;De Clercq and Arenius, 2006;Hefer et al., 2015;Watson et al., 1998). All of that can be obtained through training or training (Hefer et al., 2015;Watson et al., 1998); they do so informally and without incurring costs. ...
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One of the micro and small enterprises' (MSEs) main problem is business capital. Cash flow shortage often interrupts business development. This difficulty is due to the limited ability in meeting the requirements to access sources of capital. The development of micro and small enterprises using the culture of the local community is a way to overcome this issue. Asians generally have the perception of Gotong Royong (which means 'mutual aid' in English) as a form of collectivism. This study comes from the gap whether Gotong Royong serves as social capital to overcome the difficulties of micro and small enterprises' capital. Therefore, the purpose of this study is to find out the perception of owners of MSEs toward the application of Gotong Royong culture, which suggests how to overcome the business capital difficulties in reality. The qualitative method was applied to investigate the informants with triangulation process to validate the result accuracy. The results of this study show that MSEs owners build their businesses with the family culture, which upholds a Gotong Royong character. Small: based on the field data processing, the second result reveals that the social capital of the community in the form of Gotong Royong culture could overcome capital constraints in micro and small enterprises. Similarly, the Gotong Royong culture applied in business could reduce the capital requirement that should be prepared by micro and small entrepreneurs. The contribution of this research is for business owners so that they do not lose the character of mutual cooperation and to provide input for the government to support family businesses that still rely on these characters by giving light funding assistance. However, this research must be developed further in a broader business scale with different informant profiles so that the results will be more comprehensive.
... A study by Hefer et al. (2015), looked into why people in South Africa's KwaZulu Natal province start their own businesses. They found that most entrepreneurs are mainly driven by wanting to turn their business ideas into reality, with 85% feeling passionate about their projects. ...
... While making money is important, this study suggests that passion, skill, and the freedom to make their own decisions are key drivers for people starting their own businesses. 8 ...
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Entrepreneurship is when people start their own businesses because they want to make money or because they love what they are doing. This study looked at how both money and passion play a role in entrepreneurship. Researchers read a lot of articles from big websites like JSTOR, ResearchGate, and Google Scholar to understand why people start businesses, how much money matters to them, and how passion helps them keep going. They found that entrepreneurs start businesses for different reasons. Some want to make money, while others care more about enjoying their work and making a difference in the world. This shows that there are many factors that drive people to become entrepreneurs, not just money. Money is important for entrepreneurs, but it is not everything. People also want to feel happy with their work, have control over what they do, and make a positive impact. Sometimes, entrepreneurs are willing to give up some money if it means doing something they love. Passion is another big factor in entrepreneurship. When people really love what they are doing, they are more likely to keep going, even when things get tough. Passionate entrepreneurs are determined and resilient, which helps them overcome challenges. Overall, this study shows that entrepreneurship is about finding a balance between making money and following your passion. While money is necessary, passion is what keeps entrepreneurs going in the long run. Understanding what motivates entrepreneurs is important for helping them succeed. By providing support and resources tailored to their needs, we can create an environment where entrepreneurship thrives.
... However, other factors were independence in decision making, social status, affirmation of value, and pursuit of self-trial. The inspirational factors identified in our study are supported by the classes of entrepreneurial motives, as expressed by Hefer et al. (2015). It is pertinent to understand that the inspirational factors enunciated in this study are both 'pull factors' (internal) and 'push factors' (external). ...
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Contemporary economies worldwide appreciate the underlying importance of service sectors, culminating in sectorial growth and satisfactory performance of agri-preneurship. This study is premised on two simple explanations that cascaded into two hypothetical questions: (i) Are there inspiring factors for individuals to start up their own agri-preneurship business? (ii) Are there factors hindering individuals from starting up their own agri-preneurship business? These two hypothetical constructs triggered four primary arguments established in the study. This study was conducted in Mbombela local Municipality in category ‘B’, which is made up of the Ehlanzeni District, Mpumalanga South Africa. From a population of 1021 farmers, 458 samples of respondents were obtained and considered to be realistic for the study. The study embraced the mixed research approach, and the field survey was done between the months of February 2022 and June 2022. Descriptive statistics, involving the frequency count and percentages, were used to determine the motives and obstacles of starting up one’s own business. The hypothesis was assessed by employing multinominal logistic regression to determine the relationship between demographic variables and predictor variables. The findings revealed that potential agri-preneurs are affected by an array of inspiring factors in the decision-making process. Further, the results revealed that agri-preneurial spirit is inhibited by numerous challenges. In the shared view of respondents, there was a portmanteau of obstacles impeding the commencement of one’s own business. The results also showed that, in the self-realization variant, age (p < 0.035) and marital status (p < 0.033) were found to be correlated and statistically significant as an inspiration for setting up an agri-preneurship business, while the self-satisfaction variant specified marital status (p < 0.001) to be significant and to negatively (β −1.564) influence inspiration for agri-preneurship. In the independence variant category, two crucial variables, level of formal education (p < 0.005) and farm experience (p < 0.007), were found to be correlated and statistically significant in determining agri-preneurial decisions. This study has several policy propositions: the government and allied stakeholders must consider the motives that inspire potential investors in agriculture. The government must also oversee the reasons for young and old agri-preneurs leaving agri-businesses because of failure. This study underscores the need to subjectively analyze agri-preneurial inspiring factors and obstacles to performance. The contributions of agri-preneurial businesses to economic growth and poverty alleviation justify the need for a concerted effort to motivate potential investors. Another pertinent contribution of the study is highlighting the obstacles of agri-preneurs to enable the government to support and prepare responsive, innovative, and resilient agri-preneurs in South Africa. This paper recommends that starting up one’s own agri-preneurial business is a good idea for abating hunger and unemployment.
... Their engagement in the business originates from their personal interest and they possess aptitudes that are directly applicable to its operations. The aforementioned motive aligns with the findings of Hefer et al. (2015), which indicated that a majority of small business owners in KwaZulu Natal initiated their enterprises as a result of their aspiration to develop a business idea (85%) and their possession of the necessary business skills (81.58%). Numerous studies have examined the drivers of entrepreneurship and found significant cross-national convergence. ...
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Photographers and videographers in Occidental Mindoro relied heavily on social media marketing to spread the word about their work. Due to the province's remote location, social media was used as the primary means of promotion. This research, which used a qualitative case study approach, looked into the challenges faced by new photography and videography businesses in the province. The research was conducted with the express objective of learning more about social media marketing and its potential as a promotional tool. Based on the findings of this research, SMM appears to be an indispensable tool for the continued success of these businesses. Small business owners use SMM because it helps them save money, reaches more people, is easier to enter the market, and makes it simpler to offer new products and features. In addition, the study found that there are three main drawbacks connected with SMM: the ease with which businesses can be duplicated; trust, privacy, and security difficulties; and unfavorable feedback. These involve consistency, content marketing, image-centric content, e-WOM, social media storytelling and personal selling, automated response, boosting, optimizing the timing in posting, becoming familiar with community jargon, and not using a personal account in transactions; these are the most effective SMM strategies and practices that participants are using for the business in building brand identity, engaging with customers, and increasing sales productivity. If small businesses in the province can learn to employ logical and effective social media marketing methods, the results of this study could help increase their success rates and contribute to societal change. Keywords: social media marketing, advertising, small business, marketing, promotion
... Women's economic participation in the Various research on entrepreneurship has found some common aspects among entrepreneurs in terms of motivation, such as the desire to achieve, the willingness to take risks, and the perception of locus of control (Christian et al, 2016;Farrukh et al., 2018: Sari et al., 2018Asante et al, 2019). Likewise, these studies revealed that motivational variables influence people's decisions to start their own businesses (Hefer et al, 2015). Many people have mistakenly perceived that motivation is a personal attribute that some people possess and others do not. ...
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Successful women entrepreneurs are recognized through their strong motivation, desire, and capabilities to enhance economic development and increase entrepreneurial diversity in a range of various economic contexts. Motivation comprises biological, emotional, social, and cognitive components that drive behavior and agribusiness entrepreneurship. Given the important role played by women in contributing to the development of entrepreneurial activities in agribusiness, this study therefore aims to examine the motivating factors for women involved in agricultural entrepreneurship and entrepreneurial development in agribusiness. An online survey was conducted among women entrepreneurs in Malaysia, and descriptive analysis and multiple regression analyses were employed to analyze the data quantitatively. The findings revealed that women in the study area mostly received support from implicit and explicit motivation, such as psychological characteristics and competencies to achieve their business goals and boost their efforts in uplifting economic wellbeing and developing the agribusiness sector. Women who engaged in community development were highly influenced by connections and attitude motivational patterns that predict entrepreneur behavior. Hence, activities that led to increased motivation for women to improve their competency, power, and involvement in agribusiness should be fully supported. These factors enhanced job creation and built their credibility in agricultural entrepreneurship development.
... 3) More than 90% of the business population represents small and medium sized enterprises. 4) 55% of small business owners said that the biggest motivation for starting their own business is to become their own boss [2]. ...
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The causes of failure of very small enterprises is a new field of research, especially in Morocco. Indeed, few studies have set out to study it, few studies have set themselves the objective of studying it. This article aims to explain the failure of newly created enterprises, focusing on small businesses. These constitute the absolute majority of the businesses that make up the Moroccan economic fabric. Similarly, studies have shown that the first five years, which corresponds to the start- up period, represent the duration beyond which the majority of the businesses created do not manage to survive. Our analysis has raised several conclusions that can help to better understand of this type of failure. The very small businesses disappear suddenly for several reasons, in particular the scarcity of its resources, which handicaps its survival and its durability, hence the need to describe each explanatory factor of failure which are divided into two groups: endogenous factors and exogenous factors.
Article
Способность мотивировать работников - один из наиболее важных факторов достижения успехов в малом бизнесе. Понимание того, какая теория мотивации оптимально подходит сотрудникам, может руководству предприятия помочь улучшить малый бизнес за счет увеличения показателей удержания сотрудников и повышения производительности труда работников. В статье последовательно рассматриваются вопросы осмысления роли содержательных теорий мотивации в практике предприятий малого бизнеса. Материалы статьи могут быть полезны для руководителей предприятий малого бизнеса для обеспечения устойчивого развития и повышения эффективности хозяйственной деятельности в условиях изменяющегося внешнего окружения. The ability to motivate employees is one of the most important factors for achieving success in a small business. Understanding which motivation theory is best suited to employees can help the company's management to improve small businesses by increasing employee retention rates and increasing employee productivity. The article consistently examines the issues of understanding the role of meaningful theories of motivation in the practice of small businesses. The materials of the article can be useful for managers of small businesses to ensure sustainable development and increase the efficiency of economic activity in a changing external environment.
Article
The aim of this paper is to evaluate the support that the South African government is giving to Small, Medium, Micro-enterprise (SMMEs). A case study was undertaken in the King William’s Town area to establish the status of support to SMMEs. The paper, firstly, examines measures taken by the government to address the constraints of small business development. It further evaluates and analyses the effectiveness of the support given by the South African government to SMMEs. The focus will be on the provision of both financial and non-financial services to the SMMEs by Khula and Ntsika. Although the government remains committed to supporting entrepreneurship through Ntsika and Khula not much has changed in improving the performance of SMMEs. The external desk research methodology was followed. This comprised online desk research (use of the internet) data from funding agencies and published government data. The findings show that the awareness of programmes administered by Ntsika and Khula is low. This proves that the South African government’s support of SMMEs through Khula and Ntsika has not been effective because SMMEs are not aware of the programmes.
Article
SMEs comprise over 90% of African business operations and contribute to over 50% of African employment and GDP. SMEs sector has shown positive signs in South Africa, Mauritius and North Africa. In South Africa, SMEs constitute 55% of all jobs. Research such as Bowler, Dawood and Page (2006) and Phakisa (2009) reveal that 40% of new business ventures fail in their first year, 60% in their second year, and 90% in their first 10 years of existence. It seems that a number of challenges have been identified as contributing to the failure of SMEs in South Africa and worldwide. The research problem of this study emanates from the current high business failure rate as well as marketing skills of South African SME managers. The research investigates whether managerial marketing skills of small and medium enterprises (SMEs) contribute to high business failure rate in South Africa. The research established that lack of marketing skills of SMEs definitely contribute to high business failure rate in South Africa. The study concluded that the lack of marketing skills has a negative impact on the success of small businesses. The conclusion is that a positive correlation between lack of marketing skills and business failure exists in South Africa. The challenge is to improve the marketing skills of small business owners as small business is considered to be the panacea for South Africa's unemployment problems.
Adcorp Employment Index Retrieved from: http://www.adcorp.co.za/Documents
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Small business = big impact
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