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|
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.
Bird, B.J. "Demographic Approaches to Entrepreneurship: The Role of Experience and Background," Advances in Entrepreneurship, Firm Emergence, and Growth Vol.1, pp.11-48
Brockhaus, R.H. & Nord, W.R., "An Exploration of Factors Affecting the Entrepreneurial Decision: Personal Characteristics vs. Environment Conditions," Proceedings of the National Academy of Management, edited by R. Huseman pp.364-368
Brockhaus, R.H., "The Effect of Job Dissatisfaction on the Decision to Start a Business," Journal of Small Business Management, Vol. 18 No. 1, B.Rothman & Co. pp.37-43
Brockhaus, R.H.,Sr. & Horwitz, P.S., "The Psychology of the Entrepreneur," The Art and Science of Entrepreneurship, edited by D.L.Sexton D.L. & R.W.Smilor, Ballinger Publishing Company, pp.25-48
DeCarlo, J.F. & Lyons, P.R., "A Comparison of Selected Personal Characteristics of Minority and Non Minority Female Entrepreneurs," Journal of Small Business Management, Vol. 17, No. 4, B.Rothman & Co. pp.22-29
Doutriaux, J., & Sumyar, F., "Duration of the Comparative Advantage Accruing from Some Start-up Factors in High-tech Entrepreneurial Firms," edited by K. Vesper et al., Frontiers of Entrepreneurship Research , Babson University Press, pp.578-593
Dunkelberg, W.C. & Cooper, A.C., "Entrepreneurial Typologies," Frontiers of Entrepreneurship Research , edited by K.Vesper et al., Babson University Press, pp.1-15
Gasse, Yvon, "A Strategy for the Promotion and Identification of Potential Entrepreneurs at the Secondary School Level," Frontiers of Entrepreneurship Research, edited by K. Vesper et al., Babson University Press, pp.538-558
Hills, G.E. , Variations I "University Entrepreneurship Education: An Empirical Study of an Evolving Field," edited by I. MacMillan, Journal of Business Venturing, Vol.3, No.2, Spring, pp.109-122
Hornaday,J.A. & Vesper, K.H. , "Entrepreneurial Education and Job Satisfaction," edited by K. Vesper et al., Frontiers of Entrepreneurship Research, Babson University Press., pp.526-567
Jacobowitz, A. & Vilder, D., "Characteristics of Entrepreneurs: Implication for Vocational Guidance," Vocational Guidance Quarterly, Vol. 30, No.3 pp.252-257
Kourilsky, M., "Predictors of Entrepreneurship in a Simulated Economy," Journal of Creative Behavior, Vol.14, No.3, pp.175-198
Petrof, J.V. , "Entrepreneurial Profile: A Discriminant Analysis," Journal of Small Business Management, Vol.18, No.4, B.Rothman & Co.,pp.13-17
Ray, D.M. & Turpin,D.V., "Factors Influencing Entrepreneurial Events in Japanese High-Technology Venture Business," edited K. Vesper et al., Frontiers of Entrepreneurship Research, Babson University Press, pp.557-572
Research Institute of the Peoples Finance Corporation, White Paper on New Development for Fiscal 1995, Small Business Research Center, p2
Ronstadt, R. "Ex-entrepreneurs and the Decision to Start an Entrepreneurial Career," edited by K. Vesper et al., Frontiers of Entrepreneurship Research, Babson University Press
Russell S., "Life after Memorex," Venture, pp.44-46
Population Research Institute Kyokai, Ministry of Health and Welfare, Population Trends in Japan and the World, Kosei Tokei Kyokai, pp26-27
Schumpeter, J.A., "Economic Theory and Entrepreneurship History," Change and the Entrepreneur, Postulates and Patters of Entrepreneurial Theory, Harvard University Press, 1949
Sexton, D.L. & Bowman, N.B., "Comparative Entrepreneurship Characteristics of Students: Preliminary Results," Frontiers of Entrepreneurship Research, edited by K. Vesper et al., Babson University Press, pp.213-232
Watkins, J.M. & Watkins, D.S., "The Female Entrepreneur: Her Background and Determinants of Business Choice," Frontiers of Entrepreneurship Research, edited by K. Vesper et al., K. Babson University Press, pp.271-288
Top of Page
Previous Page | Main Page
© 1997 Babson College All Rights Reserved
Last Updated 3/10/97 by Cheryl Ann Lopez
To sign-up for the Center for Entrepreneurial
Studies' publication lists,
please register with the Entrepreneurship WebTeam.