EXAMINING MOTIVATION OF START UP FOUNDER TO LAUNCH BUSINESS IN NINH THUAN c4

Motivations to become self-employed What motivates you to decide to start Intrinsic Extrinsi c Intrinsic Extrinsi c P1 Ms Đan Thủy + Find more sources of income because the daughter is t

CHAPTER 4: ANALYSIS RESULTS

At the beginning of the report, the researcher arranged a discussion of 11 entrepreneurs.This thesis took purposeful sampling, as the researchers were able to pick participantswho would be better matched to the research goals Entrepreneurs were not willing tohire for interviews, because of time limitations many entrepreneurs did not participate.Data was gathered from semi-structured face-to-face interviews with entrepreneurs Withprevious appointment, all interviews were conducted at company premises

This chapter is divided into four specific sections as follows:

 The first part will highlight topics about the characteristics of start-upsparticipating in interviews, highlighting Gender, Marriage status, Education,Devoting full time to start-up, Year of experience in working as an employeebefore start-up, Types of business, Business Ownership (Alone / Pair / Group),Number of employees

 The second part will highlight topics about the entrepreneurial decision motivation

4.1 Characteristics information of the participants

No Startup-er characteristics Start-up characteristics

Devotin

g full time to start-up

Year of experienc

working

as an employee before start-up

Types of business

Business Ownershi

p (Alone/

Pair/

Group)

Number of employee s

Thủy)

products Ready-to- eat food P2

(Diện)

(not yet have kids)

Universit y

Agriculture producer &

trading

Alone/

with family equity

2 Full time

6 part time/ seasonal P3

(anh

Quý)

(have kids)

Universit y

time

21 part time/ seasonal P4

(anh

Bạch)

(have kids)

Universit y

Taxi – Car

& Bike rental

Alone /with family equity

6 Full time

60 part time/ seasonal P5

Alone 2 Full

time

4 part time/ seasonal P6

contractor

Alone /with family equity

15 Full time

160 part time/ seasonal

P10

P11

Among the respondents to the interview, the majority are married businessmen (withchildren or no children) They all graduated at least with a university degree, but their

years of experience are not the same, some are still very inexperienced, some have a longexperience in their field Most of the interviewees spent their entire time on their start-ups Most of them do business alone (i.e., own themselves) in the main fields ofagriculture, homestay, hotel, restaurant, tourism, spa, tour, these are also advantages inNinh Thuan province currently Because they are young startups, most of thesebusinesses have a relatively modest number of official employees, most of the rest areunofficial employees, part-time (suitable for the profession of they like tourism,homestay ).

4.2 Motivations to become self-employed

What motivates you to decide to start

Intrinsic Extrinsi

c Intrinsic

Extrinsi c

P1 (Ms

Đan

Thủy)

+ Find more sources of income because

the daughter is terminally ill (Pull / In) x

+ Want to develop local agricultural

+ Realizing the intersection between

market demand and their own supply

capacity (Push / Ex)

x

P2

(Diện)

+ Not suitable for office environment

(time / space, restrictive work

environment and framework) (Pull /

Ex-In)

+ Father has a stroke, needs to go home

Take advantage of existing family

facilities (facilities and people) (Push /

In)

x

P3 (Mr

Quý)

+ Married, going back to the hometown

because she can't find a job in the city

(Pull / In)

x

+ Not suitable for the office

environment (previously working as a

construction engineer) (Pull / In)

x

P4 (Mr

Bạch)

+ Find more sources of income because

the government prohibits tutoring

(Pull / In)

x+ Take advantage of existing family x

facilities (donated by parents-in-law)

(Push / In)

P5 (em

Hoàng

)

+ Realizing the local development

+ Only children should go home to take

care of their parents (Pull / In) x

+ Bored of the crowded city life (Pull /

+ Feel meaningless when working at

work, want to pursue a passion for

creating own brand (Push / In)

Realizing your passion for creating a

product that makes your mark (Push /

+ Realize development potential and

+ Started a business in Saigon, failed,

had to return home (Pull / In) x

as an example of a natural orientation towards development and learning Enterprise isthe practice of "ownership and management of a company on its own account and risk."Company day-to-day tasks offer businesses the opportunity to learn and achieveexpertise This allows people to accomplish their basic aims Likewise, entrepreneurs areable to control their company's growth Entrepreneurship helps individuals to contribute

to society through the solution of social challenges and the production of new goods tomeet human needs Sustainable jobs and sustainable growth are a strong driving power

There is also more entrepreneurial intentions for people who wish to contribute to societyand make the planet a safer environment.

Extrinsic objectives such as fame, financial performance and personal attractivenessenable people to participate in some form of behaviour The theory of content states thatpeople who are inspired by external goals are engaging in learning behaviors regardless

of the effects of this behavior, such as incentives and penalty avoidance People with agreater emphasis on external priorities are more likely to choose business as a profession.Established and beautiful in culture is a big aim for many persons who behave themselves

in order to reach their lives Many entrepreneurs' success stories are recorded in themedia and encouraged to engage in lectures, forums and conferences Employers act asmodern enterprise providers and pose in culture as heroes Individuals also plan,consequently, to seek work, regardless of their fame and physical characters asentrepreneurs

For example from the survey, most of the motivation factors of the people interviewedcome from intrinsic reasons They highlighted in the following transcript:

These elements for motivation might be pull intrinsic factors (the personal circumstancesthat motivates the entrepreneur's life) such as:

P1: “ I would like to find more sources of income because the daughter is terminally ill” P2: “ I am not suitable for office environment”

“ My father has a stroke, needs to go home”

P3: “ I am get married, going back to the hometown because I cannot find a job in the city”

“ I am not suitable for the office environment (previously working as a construction engineer)”

P4: “ I find more sources of income because the government prohibits tutoring”

P5: “ I am the only children in my family, so I should go home to take care of their parents”

“ I am bored of the crowded city life”

P8: “ I started a business in Saigon, failed, had to return home”

Or the factors might be push intrinsic factors which stems from the entrepreneur himselfwants to motivate himself with motivational reasons, like:

P1: “ I want to develop local agricultural products”

P2: “ I want to take advantage of existing family facilities (facilities and people)”

P4: “ I want to take advantage of existing family facilities (donated by parents-in-law)” P5: “ I feel meaningless when working at work, want to pursue a passion for creating own brand”

P6: “ My family have full condition”

“ I want to create my own product”

P7: “ I realize my passion for creating a product that makes my mark”

P8: “ I realize development potential and available network”

Very few people are motivated by extrinsic influences (including push or pull) Thesepeople join startups for a number of reasons such as the working environment is nolonger suitable, or they themselves discover a large market potential, consistent with thelocal model

4.3 Difficulties and challenges in start-up and ways to overcome

4.3.1 Difficulties and challenges in start-up

Currently, there are more and more individual-owned economic models with a decentannual income, creating jobs for hundreds of local workers However, most of the startupmodels that are owned are facing many difficulties due to their small scale and lowcapital

These difficulties and challenges can be mentioned as:

It is not easy for experienced entrepreneurs to raise capital when they want to enter a newbusiness, but they have several advantages over startups It is the capital contributed from

a previous business or a steady stream of revenue used as capital for a new business

Team building will be very arduous if you have never worked in a team or teammanagement before, but even if you already have experience in management, setting up areasonable team to start a suitable team is also very stressful and arduous.

When a startup invests in a product, but when it launches, it is not well received, then theproject will quickly go to a dead end and die Most startups that enter the marketspontaneously and without a clear plan will fall into a spiral of lack of product output.Startups start out always with their start-up journey without paying attention to corporateculture, which can lead to internal challenges, conflicts, and frustration amongemployees

When opening a company, the longer the preparation time, but not making a profit, thegreater the capital loss If the business has to compensate for the loss and loss for toolong, it will be difficult for it to withstand It is also for this reason that many startupstoday always set goals or targets to gain profits in at least 2-3 months of operation

Every business owner is forced to make hundreds of thousands of decisions every dayfrom big to small Decision fatigue is one of the real phenomena that most startupsexperience if they are not ready to fight

From the interview survey and in-depth questions about the challenges encountered in thestartup, we draw some analysis Financial problems are a problem most entrepreneursface (P1, P5, P7, P9, P10, P11)

"Don't think about starting a business when you don't have money," said Pham Dinh

Nguyen, CEO of Phindeli “it's hard to start a business from zero People need money to

start a business We may not have much money, but capital is required Capital can be mobilized from two sources: calling for capital and self-accumulating by working for themselves”, this is the share of a Vietnamese businessman who bought the smallest town

in America when talking about starting a business It can be seen that securing a regularsource of capital for operation and development is one of the core issues that need to beaddressed by every startup So far, startups in Vietnam have mainly called for capitalfrom state financial funds, channels such as securities investment funds, venture capitalfunds, individual investors or groups Non-governmental organizations Big deals mainly

come from foreign investors, while domestic investors are still quite hesitant wheninvesting in start-ups The successful entrepreneurs of the previous generation are oftencareful and do not risk investing in new enterprises One thing in contrast to othercountries in the world, investors in Vietnam are often less interested in starting a businesswith a mindset of risk aversion Therefore, start-ups in Vietnam face many difficulties inattracting investment capital Although the number of foreign funds, corporations,investors, venture capital contracts in Vietnam has increased rapidly in recent years, due

to the pressure to preserve capital for investors, the international investment also does notdare to invest capital into start-ups, investing in a trickle manner The aforementioneddifficulties and challenges of start-ups stems from both objective and subjective reasons,specifically: the internal capacity of start-ups is currently weak, due to lack of carefulpreparation the implementation of capital mobilization activities, commercial banks havenot boldly changed the "taste" of risks for startups to borrow capital, the operation ofventure capital funds has faced many difficulties Both in terms of legal andimplementation practice

In addition, complicated administrative procedures in Vietnam in general and NinhThuan province in particular, most of the young businesses are still a barrier when theyneed to be concerned about food permits, factories, and certification (food, agriculture),

or temporary registration for foreigners (tourism sectors)

Specifically, with the answers of the following entrepreneurs:

P1: “ I think among difficulties are complicated administrative procedures (because it relates to permits for food, factories, certificates )…”

P4: “ I think the most challenging thing to me is complicated administrative procedures (for example, requiring temporary registration at a certain time of the day and having to collect the original passport of foreign visitors; continuous inspection teams and requirements)”

For every start-up, the most important thing to pay attention to to attract investmentcapital is unique product, business model and scalability, human resources or

management efficiency However, startups are always most concerned about not beingable to answer questions with investors: what the state policy is for their industry in thefuture Due to not seeing the certainty from the policy side, many investors had anegative view and decided not to pour capital In addition, if a startup wants to developeffectively, it must attract talent, but due to its lack of financial strength, it cannotcompete on remuneration for employees compared to large enterprises Therefore, one ofthe ways that they consider is to pay employees' remuneration with bonus shares, butcurrently there is no mechanism for businesses to easily issue bonus shares Anotherproblem is that the business attracts foreign high-end workers to work At that time, theforeign worker was considered a foreign investor, and the procedure for a foreigninvestor in the company's register of shareholders was much more complicated Manybusinesses have to spend a lot of staff and time only to deal with administrativeprocedures with state agencies Foreign investors find it difficult to understand themechanisms, so many Vietnamese startups are forced to set up companies abroad toeasily attract their capital, then return to invest in Vietnam Thus, if the domestic legalcorridor is simple, without incentives, just reducing time will help businesses a lot.

From the interview results, finding a new feature specific to the product to market bystartups is also a big problem that makes them difficult While building a team in thebeginning, the matter of time pressure, financial capital pressure, launching a new,unique, attractive and profitable product are conundrum for most startups

Specifically, with the answers of the following entrepreneurs about this problems:

P1: "I need to find a new point for the product (USP) because most products are already implemented by people."

P7: "I want to find a way to attract guests in a unique way"

P8: "I should perfect the product of the survival tour so I have to ensure the highest safety for the guests but still ensure the unique nature of the product"

Delivering a unique sales message is not easy at all It not only requires the sensitivity tothe needs of the market but also the understanding of customers' psychology in the

industry Therefore, enterprises should not be too hasty, but should carefully observe themarket, determine the industry's needs and find out "market gaps" to attack Once youhave USP, businesses need to widely disseminate to customers by linking with the image

of the Brand on advertising programs, letterheads, envelopes, emails, signs, websites,yellow pages and on business cards The main display anytime, anywhere will makecustomers become familiar with the business idea and Brand name of the business Morethan that, USP is not only a market approach but also a promise, a guarantee thatbusinesses must respect and comply with in all circumstances Domino's made a boldpromise to deliver the cake within 30 minutes, if later, the customer will get the cake forfree Delivering the hot cake to home in about half an hour after a phone call is notalways possible Domino's has spent a lot of effort to properly execute its USP to gainprestige and character which cannot mix with anyone Another example is that in thepast, Honda brand almost completely dominated the Vietnamese market, apart fromPower of Dream, a USP exclusively for the Vietnamese market was not necessary But,since the mid-90s up to now, everywhere, people have come across "Chinese" cars,

"Korean" cars, making the Japanese motorbike giant worried because of the fierce pricecompetition In order to consolidate the market, Honda has launched many promotions,more after-sales services for customers and of course, urgently born a meaningful USP: "Ilove Vietnam" In addition, Honda also sponsors traffic safety programs for people onpopular TV channels In particular, most recently, Honda brought Asimo - a smallintelligent robot back to Vietnam to interact with the audience Those actions are to proveHonda's "I love Vietnam" as well as its commitment to safety when traveling on the road.There is a pretty good statement: "We turn the weaknesses of big companies into ourstrengths." Thereby, it can be seen that if they know the "market gap", businesses willeasily find USP for the product and will approach the door to success

In addition, a number of influencing influences, which are small and rarely appear, alsocause great difficulties for startups That is the handling of relationships ExampleConflict in management for being a family company (direct conflict with relatives about

work-related decisions) (P3) or human management, discipline and working attitude ofthe person tablets (P3, P6) In details:

P3: "I have difficulty in conflict in management because I am a family company (directly conflict with relatives about work-related decisions)"

"I also have difficulty in managing people, the discipline and working attitude of the staff" P6: "I really find it difficult to manage people, the discipline and working attitude of the staff"

"For startups, the problem is not money," said Truong Gia Binh - Chairman of FPT

Corporation He gave an idea that seemed to contradict Mr Pham Dinh Nguyen, but ifyou think about it carefully, it is completely appropriate Money to start a business,certainly, but it is not the most important issue The chairman of a leading technologycompany in Vietnam said that sharing and a new working environment are reallynecessary when starting a business According to the Chairman of FPT, if you have anidea but no one can 'argue', it will be difficult to realize Besides, startups need to have aglobal idea, not that the men who eat water spinach arguing about Sillicon Valley Thelast factor, Mr Binh mentioned the technology foundation because, according to him, agood idea without a good technology foundation is difficult to succeed Startups are oftennot sure to succeed in the future, so it is difficult to attract high-quality and stable humanresources The majority of people who turn to startups are rejected from establishedcompanies They come with the mindset of finding temporary workplaces, accumulatingmore experience, improving their knowledge and skills to qualify for successfulcompanies Therefore, their working morale is poor, their work quality is not high, theylack creativity and often jump jobs when given the opportunity Therefore, theentrepreneur should not implement the idea with a team of hired employees lacking teamspirit, but should build a team of cooperation, sharing benefits and beliefs together tobuild a business At that time, the team will work with the mentality of the owners, thinktogether, explore and create to help the company develop Usually, a start-up projectrequires a team that understands basic aspects, including: legal, market, engineering -technology, management - operations, finance - accounting Founders need to understand

themselves, see what they are knowledgeable and can undertake, what needs to becollaborated with In the process of team gathering, founders often make the mistake ofgathering teams with the same forte, knowledge (based on available relationships), sothey cannot support each other Once the right team has been gathered, it is necessary toestablish a partnership mechanism with clear interests and responsibilities from the outsetand commitment to implementation Commitments are usually related to the teammembers' obligations to contribute in physical form (cash, assets); or in the form ofintangible resources (relationships, knowledge); responsibility for contributing to the planand implementing parts of the plan implementation, such as finding clients, connectingrelationships, reviewing state support programs building facilities, preparing legalprocedures and developing the team…; tangible and intangible benefits In fact, thefounder often makes mistakes because he pays little attention to setting up the operatingmechanism and standards for the team from the beginning, but mainly assigns andassigns the work according to the plan for everyone to do by themselves show The lack

of mechanisms results in the lack of coordination among the staff and often leads toconflicts Besides, there are many cases of hiring acquaintances, friends, family members,and relatives to consolidate the trust in the assignment And this "familiar" team willmake it difficult to form and implement the mechanism because they often think they will

be treated according to standards different from the general mechanism, which leads toconflicts in the organization and limitations organizational performance Even whengathering the right team, having a clear working mechanism and cooperation is notenough for the team to operate effectively A very common feature of start-ups is thatteam conflicts often happen because they do not understand the mechanism consistentlyand the members do not know each other well At that time, the founder must know how

to motivate himself and his teammates, "infuse the fire" for the team in the direction ofconsolidating confidence, opening up the direction as well as a more suitable way toovercome difficulties, continue to develop

A general conclusion can be drawn to this section that startups are seen as a positivefactor affecting socio-economic development Looking at the current state of innovationactivities of start-ups in Vietnam, it can be seen that businesses are facing manydifficulties Reality has proven: just love is not enough to do anything Starting a business

is starting a series of difficulties: from understanding the market, capital, legal procedureswhen wanting to establish a company, human resources

4.3.2 Ways to overcome the difficulties and challenges in start-up

In the responses to the interview question "What helps you most to overcome the

difficulties?", the entrepreneurs' aggregate results were as follows:

To the question "What helped you the most to overcome those difficulties?", Businessman P1 confided: "The family's sad story and the daughter's illness at first made me sad and

depressed However, later on is also a major factor that helps me to be more motivated

to overcome difficulties, and to succeed in starting a business is more meaningful to me”.

With their will and energy, many people from difficult backgrounds have overcomedifficulties, barriers to economic development, created jobs for themselves, people in thesame situation, difficult circumstances contribute to helping them to integrate into thecommunity The contest "Women Starting a Business in 2020" launched by theProvincial Women's Union named 5 best startup projects In particular, the idea toestablish a group of women with disabilities to tailor fashion ao dai has received muchattention and support She is also the Permanent Vice Chairman of the Disabled PeopleAssociation, Chairman of the Disabled Women Club in Nghe An province and is anenergetic woman who has overcome her circumstances to make a lot of contributions to

What helps to overcome difficulties

Personal

circumstances

P1

Determined personalityP1, P3, P7

The encouragement and help of family, friends P2

Personal achievement, problem solving skills, responsibility to employees P2, P4, P5, P8

society She confided: "My father was a doctor and I was born healthy, healthy like

normal children But when I was two and a half years old, after a polio fever, I became a disabled, half-paralyzed child My life has also changed since then I was even more self- confident It was my friends and family that motivated me to get through the difficult days

A lot of friends protected me, carried me to school Because of the situation, I had to treat the hospital for many years and taking care of myself has helped me grow Thinking about my past days, I understand and sympathize more and more with women with disabilities because most people with disabilities are shy and dare not export show up in front of the crowd because of his difference " Therefore, personal circumstances are part

of the empowerment of start-ups

Answering the question "What helps you the most to overcome those difficulties?",

Entrepreneurs P1, P3, P7 have affirmed their determination, hardiness and pursuit to theend ways for them to overcome the difficulties of starting a business

There is a saying "Never, never, never surrender" by Winston Churchill affirms this

determined firmness A typical example in the world, the Brooklyn Bridge across theriver between Manhattan and Brooklyn must be said is the miracle of the constructionindustry In 1883, a creative engineer named John Roebling, was excited to come up withthe idea of building a spectacular bridge across the two cities However, when he heardhim presenting that bold idea, no bridge and road expert would cooperate with him Theythought he was crazy and told him to forget it because it was impossible to make such abridge Undeterred, he went home to convince his son Washington, also a potentialengineer, that such a bridge could be built Both father and son cherished the desire tocomplete the bridge and discussed how to overcome all obstacles Anyway, the banksalso trusted them and agreed to spend money on the bridge project With great excitementand enthusiasm, they recruited workers and began to build the bridge of their dreams Theproject had been going on for a few months when disaster struck An accident at theconstruction site took the life of John Roebling and his son seriously injured his head.Washington, after the accident, was unable to walk and speak Everyone thought that the

project would end up in smoke because only father and son Roebling were the only oneswho understood how to build this bridge Although unable to walk and talk, WashingtonRoebling's mind was still very refined One day, lying in the hospital, he suddenlythought of how to "talk" with other people The only movement of his body currently is

to move a finger and he devises a transmission code With this code, he typed histhoughts with his still-moving finger into his wife's hand to tell his wife what to tell theengineers who were still building the bridge Over the course of 13 years, Washingtonordered with only one finger remaining in motion until the completion of the magnificentBrooklyn bridge we see today

The answer of the entrepreneur P2 showed that not only from the entrepreneur's ownefforts to achieve, but also from the help of family, friends and relatives to help theirstart-up get through difficult passage A typical story about these supports is the story ofHang - a graduate student from the College of Commerce who is about to pursue a job inthe real estate industry With 6 months of internship at CBRE - a major real estatecompany in Vietnam and then working for nearly a year at Savills Real EstateConsulting, Hang has accumulated a lot of experience in the field this Therefore, at theend of 2015, she stepped up her step in service business, with the support of family andfriends, Hang opened Le festin cafe in Cau Giay with space youthful adapts the trend ofyoung people Up to now, the restaurant has been in operation for 15 months, Le festinhas attracted many customers and mostly young people and families After one year ofopening Le festin Cafe, the young lady continued to switch to the service business, butthis time it was the service sector for the community Feeling that health is an invaluableasset of people in the current era, in early November 2016, Hang and her team launched a5-star gym, but the service cost is completely equal people In the future, she also plans

to open more gym chains if possible and continue to develop her business direction in thefields of beauty care services and preschool education