Need for Pseudo-Entrepreneurial Experiences

We have corroborated the importance of pseudo-entrepreneurial experiences. However, for a person to actually decide to become an entrepreneur, he or she must not only have formed an image of an entrepreneur; a trigger of some form is also necessary. Only when the product of these two factors is greater than the entrepreneurs' entry barriers can a person become an entrepreneur.

How an Entrepreneur is Created

Formation of an entrepreneur image x A trigger to become an entrepreneur > Entrepreneurs' entry barriers
  • Upbringing
  • Emergence of business opportunities
  • Rising start-up cost
  • Three childhood experiences
  • Job dissatisfaction
  • Difficulty in securing employees
  • Work experience
  • Dissatisfaction with personal relationships
  • Anxiety toward employment
  • Advancements in technology, knowledge, and expertise
  • Often, the image of an entrepreneur is formed through the accumulation of experiences at three stages, namely, upbringing, childhood experiences, and work experience.

    Drastic restructuring in large corporations is forcing employees into early retirement. In addition, temporary transfers to subsidiaries is lowering job satisfaction levels. This, along with the disappearance of lifetime employment, seniority systems and excessive emphasis on academic backgrounds, is expected to drive many people into entrepreneurship. In fact, many researchers such as Hornaday and Vesper (1980) and Brockhause (1980) agree that job dissatisfaction is the trigger that prompts employees to start their own businesses.

    Entry barriers are gradually being lowered, as MITI and municipal governments actively implement assistance in financing and services. Also, we are seeing an increase in private sector seed capital.

    No matter how much entry barriers may be lowered and triggering factors may increase, entrepreneurs cannot be created unless they have formed an image of an entrepreneur. Our study showed that, of the three stages of experience that form the image of an entrepreneur, the second, "childhood experience,"especially "pseudo-entrepreneurial experiences"clearly plays a crucial role. Moreover, of the three factors, "role models played by their parents," "pseudo-entrepreneurial experiences," and "personal extraordinary experiences," two are beyond human control. People are unable to choose their parents’ occupation and extraordinary experiences. Therefore in order for a person to form an image of an entrepreneur, it is particularly important to encourage him or her to have pseudo-entrepreneurial experiences during childhood.


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    Last Updated 3/10/97 by Cheryl Ann Lopez

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