In dependence on the definition of entrepreneurship as the “creation of a new enterprise” as suggested by Low & MacMillan (1988: 141), this paper focuses on factors influencing the individual, or a group of individuals to start a new company. An extensive review of the literature suggests that the decision to create a new venture is influenced by a number of variables that are examined in this paper. First, the role of the individual in the venture creation process will be portrayed. It is found that personal factors are directly related to the venture creation decision. Second, as the individual faces several unforeseen challenges when deciding to start up a new business, environmental support plays a crucial role in compensating for the inherent risks of starting a new business. Thirdly, the role of culture will be appraised by showing that culture can have both a direct and a moderating effect on the individual’s role in the creation decision process.
The final part of the paper will integrate these three described factors into a new theoretical framework. It will be shown that the creation to start a new business depends on the individual, environmental support and the overarching culture. In addition, this new framework will introduce an individual’s self-efficacy, motivation, and networking activities as necessary and critical components of the venture creation process. Based on empirical evidence from prior research it will be illustrated that networking plays a fundamental part in the venture creation decision process and that it follows a similar pattern across different cultures.
Table of Contents
- Challenges of Defining Entrepreneurship
- Different Approaches of Entrepreneurial Research
- An Attempt to Define Entrepreneurship
- The Impact of Personal Factors in the Venture Creation Process
- Personal Traits of Entrepreneurship
- Individual Situational Variables
- The Role of Experience in the Venture Creation Process
- The Role of Gender Differences in the Venture Creation Process
- The Impact of Culture on the Individual in the Venture Creation Process
- The Four Primary Cultural Dimensions of Hofstede
- Application of Hofstede's Cultural Dimensions in Entrepreneurial Research
- The Meaning of Environmental Support
- Six Sources of Environmental Support
- The Venture Creation Process
- Components of the Venture Creation Process
- The Individual in the Venture Creation Process
- The Role of Networking in the Venture Creation Process
- The Impact of Culture on Environmental Support
Objectives and Key Themes
This paper aims to investigate the factors influencing the decision to start a new business, focusing on the interplay between individual characteristics, environmental support, and cultural influences. It seeks to develop a theoretical framework integrating these factors to better understand the venture creation process.
- Defining Entrepreneurship
- The Role of Personal Factors in Venture Creation
- The Impact of Culture on Entrepreneurial Decisions
- The Significance of Environmental Support
- A New Framework for Understanding Venture Creation
Chapter Summaries
Challenges of Defining Entrepreneurship: This chapter explores the difficulties in defining entrepreneurship, reviewing various approaches in entrepreneurial research and ultimately proposing a definition. It lays the groundwork for the subsequent chapters by establishing a common understanding of the central concept.
The Impact of Personal Factors in the Venture Creation Process: This chapter delves into the individual characteristics that contribute to entrepreneurial success. It examines personal traits, situational variables, the role of prior experience, and gender differences, demonstrating how these elements influence the decision to create a new venture. The analysis highlights the complex interplay of these factors and their impact on an individual's entrepreneurial journey. Examples from prior research are used to illustrate these points, such as case studies that detail how different personal factors play out in the start-up process.
The Impact of Culture on the Individual in the Venture Creation Process: This chapter examines how cultural contexts shape entrepreneurial behavior. Using Hofstede's cultural dimensions as a framework, the chapter analyzes the influence of culture on individual entrepreneurial traits and decision-making. It explores how cultural norms and values can directly impact an individual's inclination to start a business, and how these cultural contexts interact with personal characteristics. This shows the moderating effect of culture on individual choices.
The Meaning of Environmental Support: This chapter defines and examines the concept of environmental support in the context of new venture creation. It identifies six key sources of environmental support and elaborates on their importance in mitigating the risks associated with starting a business. The chapter emphasizes the crucial role that various forms of support play, ranging from government policies and funding to informal networks and mentorship. The different types of support and how they work together are explored.
The Venture Creation Process: This chapter integrates the findings from previous chapters to present a comprehensive model of the venture creation process. It outlines the key components of this process, highlighting the role of the individual, environmental support, and culture. It also emphasizes the significant part of networking in this process, examining its influence across different cultures. This chapter aims to provide a holistic view of the factors that collectively contribute to successful entrepreneurial ventures. This chapter uses a model, which visualizes how the components interact and how each aspect influences the next, providing a clear pathway to illustrate the overall venture creation process.
Keywords
Entrepreneurship, Venture Creation, Personal Factors, Cultural Influences, Environmental Support, Networking, Self-Efficacy, Motivation, Hofstede's Cultural Dimensions, Theoretical Framework.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this text?
This text is a comprehensive language preview of a research paper investigating the factors influencing the decision to start a new business. It focuses on the interplay between individual characteristics, environmental support, and cultural influences in the venture creation process.
What are the key themes explored in this paper?
The key themes include defining entrepreneurship, the role of personal factors (including personal traits, situational variables, experience, and gender) in venture creation, the impact of culture (using Hofstede's cultural dimensions) on entrepreneurial decisions, the significance of environmental support (identifying six key sources), and the development of a new framework for understanding the venture creation process.
What are the main chapters and their respective focuses?
The paper is structured into five chapters:
- Challenges of Defining Entrepreneurship: Discusses the difficulties in defining entrepreneurship and proposes a working definition.
- The Impact of Personal Factors in the Venture Creation Process: Explores individual characteristics influencing entrepreneurial success, including personal traits, situational variables, experience, and gender differences.
- The Impact of Culture on the Individual in the Venture Creation Process: Analyzes the influence of cultural contexts (using Hofstede's framework) on entrepreneurial behavior and decision-making.
- The Meaning of Environmental Support: Defines and examines environmental support, identifying six key sources and their importance in mitigating risks.
- The Venture Creation Process: Integrates findings from previous chapters to present a comprehensive model of the venture creation process, emphasizing the roles of the individual, environment, culture, and networking.
What is the objective of this research?
The paper aims to investigate the factors influencing the decision to start a new business, focusing on the interplay between individual characteristics, environmental support, and cultural influences. It seeks to develop a theoretical framework integrating these factors to better understand the venture creation process.
What is the proposed framework for understanding venture creation?
The paper proposes a framework that integrates personal factors, cultural influences, and environmental support to provide a holistic understanding of the venture creation process. This framework is presented in detail in the final chapter and visually represented to show the interaction of these components.
What are the key sources of environmental support identified?
The paper identifies six key sources of environmental support which are detailed in the dedicated chapter.
How does the paper utilize Hofstede's cultural dimensions?
Hofstede's cultural dimensions are used as a framework to analyze the influence of culture on individual entrepreneurial traits and decision-making. The paper explores how cultural norms and values impact the inclination to start a business.
What are the key words associated with this research paper?
Key words include: Entrepreneurship, Venture Creation, Personal Factors, Cultural Influences, Environmental Support, Networking, Self-Efficacy, Motivation, Hofstede's Cultural Dimensions, Theoretical Framework.
What type of audience is this preview intended for?
This preview is intended for an academic audience, providing a structured overview of the research paper for analysis and understanding.
- Quote paper
- Markus Fischer (Author), 2005, The impact of personal and environmental factors on entrepreneurship, Munich, GRIN Verlag, https://www.grin.com/document/43766
