LUẬN văn THẠC sĩ (KINH tế) master thesis in economics a research into the motivating factors of irish entrepreneurs to start up

ThomasMolloy Page1AresearchintothemotivatingfactorsofIrishentrepreneurstostart-upamicro/ smallenterpriseandtheirperceptionofthesupportprovidedbytheIrishGovernment.. Dissertationsubmitted

ThomasMolloy Page1

AresearchintothemotivatingfactorsofIrishentrepreneurstostart-upamicro/ smallenterpriseandtheirperceptionofthesupportprovidedbytheIrishGovernment.

DissertationsubmittedinpartfulfilmentoftherequirementsforthedegreeofMaster

ofBusinessAdministration atDublinBusinessSchoolunderthesupervisionofEddieMcConnon.

ThomasMolloyStudent Number:1432742

WordCount:22,819

I,ThomasMolloy,declarethatthematerial,whichissubmittedinthisassignment,isentirelymyownworkandh a s n o t beens u b m i t t e d f o r anya c a d e m i c assessmento t h e r t h a n asp a r t fulfilment

o f t h e assessmentproceduresf o r t h e p r o g r a m Inaddition,Ihavereferencedc o r r e c t

l y allliteratureandsourcesusedinthisworkandthisworkisfullycompliantwiththeD u b l i n BusinessSchool’sacademichonestypolicy

Signatureofstudent:ThomasMolloyD

ate:22/08/2016

Firstofall,IwouldliketothankmysupervisorEddieMcConnon,whohasprovidedsupport,guidance,k n o w l e d g e a n d patience,whichh a s g i v e n m e greatc o n f i d e n c e t o completet h e dissertation

Iw o u l d l i k e t o e x t e n d myappreciationt o allo f t h e entrepreneursa n d i n d i v i d u a l s

w h o participatedin this studyfortheirtimeandcontribution

Iwouldalsoliketothankmyparentsfortheirlove,supportandencouragementtonevergiveu p

o n pursuingmydreams andgoals

IdedicatethisdissertationtomyfiancéeRose,whoinspiresmeeveryday

TheResearchsetsouttoexaminethemainmotivationalfactorsthatinfluenceentrepreneurst o start-upmicro/

smallenterprisesandtheirperceptionofsupportfromtheIrishGovernment.T h e researcheremployeda m i x e d m e t h o d aproacht o thestudybyc o n d u c t i n g 8 semi-

structuredinterviewswith5entrepreneursand3participantsfromtheDepartmentofEnterprise,Innovationa n d J o b s (DJEI),t h e E c o n o m i c I n s t i t u t e o f S o c i a l Research( E S R I ) andtheCentralBankofIreland.Asurveywasconductedusingasampleof63micro/

u p a business.Havinge x p o s u r e tomentorswasnegativelycorrelatedtoentreprenerushipandthefindingsinrelationt o theeconomicenvironmnetbeinganinfluenceontheentrepreneursintentiontostart-

upanenterprisew e r e i n c o n c l u s i v e Accesst o finacewasimportanti n t h e decisiont o upa businessforIrishentrepreneurs,however,thefindingsforGovernmentsupportpoliciesandentrepreneurialeducationwereinconclusive

start-ThefindingsofthestudydidnotapplytoallregionsofIreland,asthesamplepopulationwasp r i m a r i l

y i n t h e D u b l i n area.T h i s researchhighlightst h e varyingm o t i v a t i n g factorst h a t influenceentrepreneurstoengageinentrepreneurialactivitywhilesimultaneouslyexploringt h e entrepreneurs’perspectiveofGovernmentsupportpolicies

KeywordsEntrepreneurs,Micro/

SmallBusinesses,Intention,Mentors,PushandPullfactors,NeedforAchievement,Self-Efficacy,Governmentsupportpolicies,EntrepreneurialEducation,AccesstoFinance,Perception

PageNo.

CoverPage 1

Declaration 2

Acknowledgements 3

Abstract 4

TableofContents: 5-9 ListofFigures 10

ListofTables 11

Glossaryof Terms 12

Chapter1:Introduction 13

1.1 Background 13-15 1.2 Aim of theResearch 15

1.3 Researchquestionsandhypothesis 16

1.4 Rationaleforthe Research 17

1.5 Contribution of theStudy 17-18 1.6 Suitabilityofthe Researcher 18

1.7 Organisationofthedissertation 19

Chapter2:LiteratureReview ………….20

2.1 Introduction……

……….202 2 Identifying anentrepreneur……… 21

TableofContents:

2.4 Motivatingfactorsofentrepreneursto start-upanenterprise……… 23

2.4.1Intention…… ………23-242 4 2 E x p o s u r e tomentors………

24-25 2.4.3P u s h

andPullfactors……… 25-272 4 4 Needfor Achievement………

27-282.4.5Self-efficacy……….28-29 2.5 Governmentpoliciestowardsmicro/smallenterpriseowners inIreland……….30

2.5.1 Governmentsupportandaccesstofinanceforentrepreneurs………30-31 2.5.2 Entrepreneurialeducationpolicies…… ……… … 31-32 2.6 Entrepreneursperception

ofGovernmentpolicy………32-342 7

Conclusion……… 34-35 Chapter3:ResearchMethodology ……… 36

3.0Introduction……… 36

3.1 Researchquestions/hypothesis/objectives………36

3.2 ResearchPhilosophy-InterpretivismandSubjectivism……… 37

3.3 ResearchApproach-Inductive

andDeductive……… ………… …37-383 4 ResearchStrategy 38-40 3.5 TimeHorizon 40

3.6 Population and Sample 40-42 3.7 DataCollection,Editing,CodingandAnalysis 42

3.7.1 DataCollection-PrimaryandSecondarydatacollection……….42

2.4 Motivatingfactorsofentrepreneursto start-upanenterprise……… 233.7.2 Qualitative DataCollection……….42-43

3.7.3 QuantitativeDataCollection……… 43-45

3.7.4 SecondaryData Collection……… 45-463.7.5 Editing 463.7.6 CodingandAnalysis 46-483.8 EthicalIssuesandProcedures 48

Chapter4:DataAnalysis/Findings …

494 1 : Introduction …49

4.2: TheRespondents(Qualitative) …50

4.3:Thefindings(Qualitative) …504.3.1:Intentiontheme …50-51

4.3.2: Exposuretomentorstheme …51-524.3.3: PushandPullfactortheme …52

4.3.4:Needfor Achievement theme …52-53

4.3.5:Self-efficacytheme …53-54

4.3.6:Governmentsupportandaccesstofinancetheme …54-564 4 : T h e Respondents(Quantitative) …57

4.5: TheFindings(Quantitative) …574.5.1:Respondentsprofile …58-60

4.5.2:Intentiontheme …61-62

4.5.3: Exposuretomentorstheme …634.5.4: PushandPullfactortheme …64-65

4.5.5:Needfor Achievement theme …66

4.5.7:Governmentsupportandaccessto

financetheme …70-714 6 : Follow-upInterviews(Qualitative) …72

4.6.1: TheFindings(Qualitative) …724.6.2:Intentiontheme …72-73

4.6.3: Exposuretomentorstheme …734.6.4: PushandPullfactortheme …73-74

4.6.5:Needfor Achievement theme …74

5.6: Self-efficacy …83-845.7:Governmentsupportandaccessto finance …84-

865 8 : Limitations …86-87

Chapter6:Conclusion/Recommendations …

886 1 : Conclusion …88-93

6.2: Recommendations …93-95

Chapter7: Reflection …96

7.1:Introduction …967.2:Self-reflectionon learningstyle …96-977.3: Skills Development …977.3.1:Researchskills …97

7.3.2:Problemsolvingskills …97-987.3.3: Timemanagementskills …98

7.3.4:Teamworkingskills …98-997.4:Futureapplicationoflearning andskillsdevelopment……… … 99

8.0Bibliography……….100-117 9.0Appendices………118-

PageNo.

Figure1:Micro/Smallenterprisecriteria 22

Figure2:Micro/SmallenterprisestatisticsIreland2012 22

Figure3: ExploratorySequentialDesignModel 39

Figure4:E l e m e n t s / U n i t s / E x t e n t andTime… 41

Figure5:Researchquestionnaireexperimentparticipants 44

Figure6:QuestionnaireDesign 45

Figure7:GenderDemographic 58

Figure8: AgeDemographic 59

Figure9: CompanySize 60

Figure10:Intentionthemefindings 61

Figure11:Intentionthemefindings 62

Figure12: Exposuretomentorsthemefindings 63

Figure13: Pushfactorthemefindings 64

Figure14: Pullfactorthemefindings 65

Figure15: Need forAchievementthemefindings 66

Figure16: Self-efficacythemefindings 67

Figure17: Self-efficacy(Risk-taking)themefindings 68

Figure18: Self-efficacy(FearofFailure)themefindings 69

Figure19:GovernmentSupportandaccesstofinancethemefindings 70

Figure20:GovernmentSupport andaccessto financethemefindings 71

Figure21: HoneyandMumfordlearningstyle model 96

PageNo.

Table1:GenderDemographic 58

Table2:AgeDemographic 59

Table3: CompanySize 60

Table4:Intentionthemefinding 61

Table5:Intentionthemefinding 62

Table6: Exposuretomentorsthemefinding 63

Table7:Pushfactorthemefinding 64

Table8: Pullfactorthemefinding 65

Table9:NeedforAchievement themefinding 66

Table10:Self-efficacythemefinding 67

Table11:Self-efficacy(Risk-Taking)themefinding 68

Table12:Self-efficacy(FearofFailure)themefinding 69

Table13:Governmnetsupportandaccesstofinancethemefinding 70

Table14:Governmnetsupportandaccesstofinancethemefinding 71

SME:SmallandMedium-SizedEnterprises

YalcinandKapu(2008,p p 1 8 5

-1 9 3 ) s t a t e t h a t t h e m o t i v a t i o n s andchallengesassociatedw i t h entrepreneurialactivitya re

439)contentionthatexaminingpsychologicaltraitscanassistincognizingtheentrepreneurialactionsofindividuals.Thesecontentionspropelledtheresearchertofocusont h e firstp a r t oft h e researchs t u d y , w h i c h i s a n investigationi n t o t h e m a i n m o t i v a t i o n a l factorsthat

upabusinessasopposedto23%ofnascententrepreneurswhoaremotivatedbynecessity.ThereportalsohighlightshowIrelandhasasupportiveculturetowardsEntrepreneurship.Thesestatisticsandreportsinfluencedtheresearchertofocusthestudytowardsthesecond partoftheresearch,which investigatesto

whatextentofanentrepreneur’sperceptionofGovernmentsupportinIrelandinfluencestheirm o t i

v a t i o n t o start-upanenterprise

ResearchconductedbyEstay(2013,pp.246-247)extrapolatedthattheentrepreneur’sperceptionofthebusinessenvironmentsignificantlydeterminestheirlevelofmotivationforwantingtostartupabusiness.Thiscontentioninfluencedtheresearcher’sdecisiontoamalgamatethefirstandsecondpartoftheresearchinto aninvestigationofthemotivating factorso f IrishEntrepreneur’st o start-

upa Businessandt h e i r p e r c e p t i o n s o f Governments u p p o r t

ThetopicofMotivationaloneencompassesawiderangeofresearchstudy,whichultimatelypersuadedt h e researchert o narrowd o w n t h e researcht o t h e m a i n motivatingfactorsthatinfluenceentrepreneurstostart-

upanenterpriseandtheirperceptionofGovernmentsupport.Throughresearchingn u m e r o u s articles,j o u r n a l s andp a p e r s o n t h e t o p i c , t h e researcherfocusedt h e firstparto f t h e

s t u d y t o t h e f o l l o w i n g m o t i v a t i n g factorso f entrepreneurialintention(Malebana,2014,pp.709-714;FayolleandLinan,2014,pp.663-

665),exposuretomentors(McKevitt,2015,pp.264-266),pushandpullfactors(Block,2015,p.38),needforachievement(Taormina,2007, 209),andself-efficacy(Drnovsek,2010, pp.329-31)

pp.202-Thesecondpartofthestudyfocusedongovernment/

educationpoliciesandaccesstofinance(DJEI,2 0 1 4 ; Heinonen,2 0 1 0 , p 1166),andt h e entrepreneur’sperceptiono f t h a t Governmentsupport(Taormina,2007,pp.204-

216).Governmentsupportpoliciesandentrepreneuriale d u c a t i o n policiesencompassGovernmentbranchesandagenciesl i k e t h e Departmento f Enterprise,J o b s andInnovation(DJEI),t h eLocalE n t e r p r i s e Office( L E O ) , t h e smallfirm’sassociation(SFA),theIrishsmallandmediumsizedenterprises(ISME)andMicrofinanceIrelandt h a t offertraining,support andfundingtoentrepreneurswh owantt o start-

upabusiness.AccesstofinancewasamalgamatedwithGovernmentsupportpoliciesasb o t h topicsof support and resourcesw e r e interconnectedwhen th e researcheranalysedt h e s e c o n d

a r y researchasagencieslikeMicrofinanceIrelandandbanking institutionsaremonitoredbyth

eIrishGovernmenttoprovidefundingtoentrepreneurs(TheNationalPolicyStatementonEntrepreneurshipinIreland,2014).

Thereasoningbehindfocusingontheaforementionedareasofinquirywasduetothef r e q u e n c yofthesemotivatingfactorsmaterialising throughouttheresearch.Thisultimately emboldenedandinfluencedtheresearchertochoosethiscourseofstudy,whichcouldassisti n identifyingthemainmotivational factorsthatpropelindividual towardsentrepreneurshipandtoascertaintheextenttowhichanindividualperceptionofGovernmentsupportinfluencestheirmotivationtowardsentrepreneurship.

AccordingtoEriksson&Kovalainen(2008,p.37-39)thepurposeoftheresearchquestionist o acquireanddevelopnewinformationandknowledgefrome x i s t i n g informationo n t h e t o p i c ofstudywiththeobjectiveofformulatingyourfindingstoenableyoutocompleteyours t u d y oft h e topic.T h e purposeo f t h i s researchi s t o i d e n t i f

y them o t i v a t i o n a l factorst h a t u l t i m a t e l y persuadeentrepreneurst o start-upmicro/smallenterprises(VanGelderenandJ a n s e n , 2006,pp.23-

32).Theaimoftheresearchistoprovideabetterunderstandingofthepsychologicalcharacteristicsthatinfluencethedecision forstartingupasmallfirmandthemotivationaldriversthatfacilitatethatdecision(Atherton,2007, pp 404-417)

TheresearchobjectivesalsoinvestigatedtheperceptionsofindividualstoGovernments u p p o r

t instartingupamicro/smallenterpriseinIreland.TaorminaandKin-MeiLoa(2007,

p.200-202)highlightthatmeasuringthetwodifferentvariablesofpersonalitytraitsandtheeconomicenvironmenti s difficultd u e t o t h e varianceso f microandmacrolevels.T h e researcheradaptedTaorminaandKin-MeiLoa’s(2007,pp.200-

221)proposalbyevaluatingt h e economicenvironmentbycognizingtheentrepreneur’sperceptionoftheeconomicenvironmentinsteadoft he ma cr o-

e co no mi cf a c to rs T h i s allowedt h e researchert o n a r r o w d o w n t h e researcht o entrepreneur’sperceptiono f Governments u p p o r t m a d e availablet o t h e m T h i s paperaimst o i d e

n t i f y ande x p l o r e t h e m o t i v a t i o n s o f Irishentrepreneursf o r startingupanenterpriseandtheirperceptionsof supportfromtheIrishGovernment

no f entrepreneurshipw h i c h offersani n d i v i d u a l a v i a b l e careero p t i o n afterresigningfromone’sp l a c e ofemployment

As t u d y conductedbySharmaandMadan( 2 0 1 3 , p p 2 5

-27)i n t o s t u d e n t ’ s perceptionso f barrierst o entrepreneurshipf o u n d t h a t t h e typeo f p e r s o

n a l i t y traits t r o n g l y influencedt h e individual’sperceptionsofbarrierstoentrepreneurship.Frompreliminaryinvestigationsintot h e topic,t h e reasoningf o r t h e researchd i g r e s s e d i n t o agenuineinteresti n t o t h e psychologicaltraitsthatinfluencethedecision ofentrepreneurstotaketheinitialstepfromprestart-uptotheactualstart-

upphaseofstartingabusinessandtheirperceptionsofGovernmentsupport

Thejustificationf o r c o n d u c t i n g t h e researchwast o u n d e r s t a n d t h e m o t i v a t i o n s o

f

entrepreneurstostart-upabusinessandtodeterminethechallengesthatentrepreneursfaceinaccessingsupportandfundingtostartingupanenterprise.Byattemptingtoascertainthesem o t i v a t i n g factorsandperceptionsofgovernmentsupportfromawiderpopulationsampleofentrepreneurscouldassistt h e researchert o understandh i s o w n motivationsf o r wantingt o start-

upabusinessandfurtherilluminatethetopicofstudyforthebenefitofotherpotentialentrepreneursandpractitioners,studentsand academics

Globaleconomicambiguityandemploymentinsecurityunderlinesthe need forindividualsto

TheresearcherobtainedaBAHonoursdegreeinBusinessManagementfromDublinBusinessSchooli n 2 0 1 3 , whichw a s intendedt o b e t h e catalystf o r e s t a b l i s h i n g a n e w micro/

smallenterprisebutit,wasdecidedtostudyforanMBAwiththeobjectiveoffurtherenhancingmyabilitytoachievemyinitialobjectives.TheResearcherhasworkedfor

over12yearsw i t h differentm i c r o / s m a l l enterprisesi n D u b l i n p o r t handh o w thesesmallfirmshadfailedtocontinuetomaintainviabilityduetofinancialconstraintsandalackofsupportthatcouldhaveenabledinnovation andexpansionoftheir businessesi n

andhaswitnessedatfirst-t o susandhaswitnessedatfirst-tainable

entities.TheresearchertookapersonallearningstyletestfromPearsonTutorServices( 2 0 1 2 ) which

i n d i c a t e d a tactilel e a r n i n g s t y l e , whiche q u a t e s toa preferencef o r interactiveandactivitybasedlearning(SeeAppendix1,p.118forTestresults).The