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Direct And Indirect Effects Of Individual And Environmental Factors On Motivation For Self-Employment

Author

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  • LEI WANG

    (The University of Texas–Pan American, College of Business Administration, 1201 West University Drive, Edinburg, Texas 78539, USA)

  • LEONEL PRIETO

    (Texas A&M International University, College of Business, 5201 University Blvd, Laredo, Texas 78041, USA)

  • KIM T. HINRICHS

    (Minnesota State University, Mankato College of Business, 150 Morris Hall, Mankato, Minnesota 56001, USA)

Abstract

The objective of this paper is to study the direct and mediating effects on the motivation to become self-employed of a set of two individual factors (entrepreneurial self-efficacy and risk-taking) and five environmental factors (family self-employment background, social networks, social norms, legal system support and governmental support). Based on 535 cases from the United States, results show that legal system support, social networks, social norms, entrepreneurial self-efficacy and risk-taking had a strong impact on motivation for self-employment. Family self-employment history only had a direct effect and social networks and social norms only had an indirect effect on motivation for self-employment. Our study contributes to the literature by studying motivation for self-employment, at the "middle level" of complexity by providing a summary evaluation of a model involving 17 relationships among eight constructs. In so doing, we have also given substantial attention to context. Our results suggest the need to take into account individual and environmental factors systemically and contextually. Limitations and future research are discussed.

Suggested Citation

  • Lei Wang & Leonel Prieto & Kim T. Hinrichs, 2010. "Direct And Indirect Effects Of Individual And Environmental Factors On Motivation For Self-Employment," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 481-502.
    • Handle: RePEc:wsi:jdexxx:v:15:y:2010:i:04:n:s1084946710001671
    DOI: 10.1142/S1084946710001671
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    References listed on IDEAS

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    Cited by:

    1. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    2. Nabil Al-Qadasi & Gongyi Zhang & Ibrahim Al-Jubari, 2021. "Attitude of youth towards self-employment: Evidence from university students in Yemen," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    3. Jung-Jen HUANG & Jan-Yan LIN, 2019. "The Determinants of Taiwanese’s Employment and Entrepreneurial Intention in Mainland China," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 4(2), pages 1-13, June.
    4. Ivona Huđek & Polona Tominc & Karin Širec, 2021. "The Impact of Social and Cultural Norms, Government Programs and Digitalization as Entrepreneurial Environment Factors on Job and Career Satisfaction of Freelancers," Sustainability, MDPI, vol. 13(2), pages 1-20, January.

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