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Micro-entrepreneurs selling water filters in Indonesia: an analysis of motivations, success factors, problems and performance
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Abstract
The development of entrepreneurship is increasingly considered an effective method to increase access to safe drinking water and sanitation. In this study, 80 Micro-entrepreneurs (78 female) selling water filters in East Java, Indonesia were surveyed in 2016 to determine the motives for self-employment, perceived success factors, and challenges encountered. Results reveal that the primary reasons for selling the water filters were income generation, helping others, use past training and experience, and learning. Results show that the water filter entrepreneurs were driven by monetary motives as well as intrinsic and altruistic factors. Business virtues such as honesty and friendliness were ranked highest amongst the business success variables. Serious problems faced by the micro-entrepreneurs were the weak economy, difficulty convincing clients and low margins. Results on success factors and perceived problems and obstacles are consistent with results from previous studies using similar instruments in Turkey, Vietnam and Canada. Previous studies did not include altruistic motives, which were valued as very important by respondents in this survey. Compared to female entrepreneurs in Canada, the Indonesian entrepreneurs are more motivated by money and less by intrinsic reasons, similar to their peers in Turkey and Serbia. Entrepreneurs that score themselves high on presentation skills and those who are motivated by creating income have on average higher sales. On the other hand, entrepreneurs that are motivated by helping the staff of the principal and those who think that adequate education is important sell less. The findings can be used for a better selection of potential water and sanitation entrepreneurs. In addition, programs supporting entrepreneurship should make sure that:1) the money generating potential is high enough; 2) downline creation is encouraged and 3) training is provided to increase presentation skills.
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This paper is focused on the study of motivational and success factors of entrepreneurs in Serbia with respect to the basic methodological approach developed by Chu (using principal component factor analysis with varimax rotation). The objective of the research was to analyse the motives of entrepreneurs starting their own business and to determine factors that affect the success of SMEs. The empirical research was conducted according to 11 motivational items of entrepreneurs to establish their own business and 17 items affecting entrepreneurs’ success. Four motivational factors are obtained in this research (greater business achievement, independence, intrinsic factor and job security), as well as seven factors affecting entrepreneurs’ success (position in society, interpersonal skills, approval and support, competitive product/service, leadership skills, always to be informed and business reputation). Based on these results and their comparison with the empirical findings in other countries, it may be concluded that motivational factors of entrepreneurs are generic in developing countries. The results showed that there was a lack of motives concerned with sustainable development of enterprise in a long run. On the other hand, there is a variety of different success factors affecting entrepreneurs, which primarily depend on the current situation in the local environment.
Fifty‐four female entrepreneurs in Greater Sudbury, Canada, were surveyed in 2009 to
determine the motives for self‐employment, success factors, and problems they perceived.
Results revealed that primary reasons for owning a business were personal satisfaction and
growth, to have fun and to proving they could do it. These results show that Canadian female
small business owners were driven by intrinsic factors as opposed to monetary motives. In
terms of business success variables, the most important to them were the entrepreneurs’
reputation for honesty and good customer service. Serious problems faced by Canadian female
entrepreneurs were the weak economy, high business taxes and the unavailability of skilled
labour. Results on success factors and perceived problems were consistent with those from
previous studies using similar instruments both in Canada and other countries, including Turkey;
however, while intrinsic rewards characterised Canadian respondents’ motives, Turkish
entrepreneurs were primarily driven by economic rewards.
Drawing on the literature involving the venture start-up process, integrated with motivational theory from the field of organizational behavior, a model describing the factors that affect firm start-up, strategic implementation, and the entrepreneur's decision to sustain entrepreneurship is proposed. Several hypotheses for future research are suggested.
Understanding what motivates entrepreneurs to start and sustain their ventures has been a critical factor in understanding the complete entrepreneurial process. Since goal-directed behavior is a vital element in the research on entrepreneurial motivation, this study attempted to investigate the existence of a set of goals which motivate entrepreneurs to sustain their business development efforts. To accomplish this effort, auestionnaire developed from the literature was utilized to identify the existence of 16 possible goals. A four-factor structure of goal statements was identified on the basis of the responses from 234 entrepreneurs. Factors included Extrinsic Rewards, Independence/Autonomy, Intrinsic Rewards, and Family Security. The implications of the existence of these factors as motivators for sustained ownership are discussed.
This paper provides a descriptive analysis of the Vietnamese-American entrepreneurial role. The social environment in which they operate is different than that reported for mainstream populations. It is proposed here that the Vietnamese-American culture, and the cohesiveness, which arises from cultural homogeneity and proximity, impact the entrepreneurial experience of the group. Paper notes that should be directed toward a more controlled and detailed analysis of the impact of culture on the entrepreneurial experience.
One hundred and thirty-nine entrepreneurs in Ankara, Turkey were surveyed to determine their motivations for business ownership, the factors contributing to their success, and their problems. Based on survey responses, the primary reasons for starting a business are to increase income, to obtain job security, and to secure independence. According to the factor analysis, small and medium-sized enterprises owners are driven more by income rewards than intrinsic rewards. The most important business success variables are the entrepreneurs' reputation for honesty and friendliness. Social skills and good customer service were also cited as critical success factors. The most serious problem faced by entrepreneurs in Turkey is the complex and confusing tax structure. Other important problems include unreliable employees, the inability to maintain good records, and a weak economy.
In recent years the number of women-owned firms with employees has expanded at three times the rate of all employer firms. Yet women remain underrepresented in their proportion of high-growth firms. A number of plausible explanations exist. To develop richer insights, a two-stage research project was undertaken. A mail survey was sent to a sample of female entrepreneurs to assess motives, obstacles, goals and aspirations, needs, and business identity. Based on the survey results, follow-up, in-depth interviews were conducted with entrepreneurs, selecting equally from modest-growth and high-growth ventures. In terms of quantitative findings, growth orientation was associated with whether a woman was “pushed” or “pulled” into entrepreneurship, was motivated by wealth or achievement factors, had a strong women's identity in the venture, had equity partners, and believed women faced unique selling obstacles. The qualitative research made clear that modest- and high-growth entrepreneurs differ in how they view themselves, their families, their ventures, and the larger environment. The results of both stages suggest that growth is a deliberate choice and that women have a clear sense of the costs and benefits of growth and make careful trade-off decisions.