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Antecedents for Entrepreneurial Propensity: Findings from Singapore, Hong Kong and Taiwan

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  • Lee, Lena
  • Wong, Poh Kam
  • Chua, Bee Leng
  • Chen, Jennifer

Abstract

The existing literature identifies a number of antecedent factors that positively influence the propensity of individuals to become entrepreneurs. Key among these are self-efficacy, prior knowledge of other entrepreneurs and perception of opportunities. At the same time, policy makers commonly identify fear of failure as a major deterrent factor for entrepreneurs taking the entrepreneurial plunge. This paper examines the relative impacts of these antecedents and deterrent factor on entrepreneurial propensity, defined as the likelihood of starting one’s own business in the three East Asian newly-industrialised economies (NIEs) of Singapore, Hong Kong, and Taiwan. We also test for possible differences in the variables effects on opportunity vs. necessity entrepreneurial propensities. Our findings highlight significant location differences among the variables in the case of overall, opportunity and necessity entrepreneurship. Finally, we discuss the relevant policy implications from our findings.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 594.

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Date of creation: 2005
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Handle: RePEc:pra:mprapa:594

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Keywords: Entrepreneurial Propensity; Self-Efficacy; Perception of Opportunities; Prior Knowledge of other Entrepreneurs; Fear of Failure; East Asia;

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  1. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
  2. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
  3. Chen, Chao C. & Greene, Patricia Gene & Crick, Ann, 1998. "Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?," Journal of Business Venturing, Elsevier, vol. 13(4), pages 295-316, July.
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  9. S. Smirnov, 2001. "Industrial Policy," Problems of Economic Transition, M.E. Sharpe, Inc., vol. 44(7), pages 78-95, November.
  10. Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007. ""I think I can, I think I can": Overconfidence and entrepreneurial behavior," Journal of Economic Psychology, Elsevier, vol. 28(4), pages 502-527, August.
  11. Cromie, Stan & Birley, Sue, 1992. "Networking by female business owners in Northern Ireland," Journal of Business Venturing, Elsevier, vol. 7(3), pages 237-251, May.
  12. Bengt Johannissson, 1998. "Personal networks in emerging knowledge-based firms: spatial and functional patterns," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(4), pages 297-312, January.
  13. Richard H. Thaler, 2000. "From Homo Economicus to Homo Sapiens," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 133-141, Winter.
  14. Gifford, Sharon, 1992. "Allocation of entrepreneurial attention," Journal of Economic Behavior & Organization, Elsevier, vol. 19(3), pages 265-284, December.
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Cited by:
  1. Martínez Mateo, Jesús & Mira Solves, Ignacio & Gómez Gras, José M.ª, 2013. "Influence of the economic cycle on the determinants of nascent entrepreneurial activity. An empirical analysis of the Spanish case," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 26, pages 19-45.

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