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How useful are the concepts of enterprise 'push' and 'pull' in explaining the factors that influence the decisions of individual - Essay Example

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How useful are the concepts of enterprise 'push' and 'pull' in explaining the factors that influence the decisions of individuals to become self-employed and/or start up a business. Self-employment or entrepreneurship is an option for the individuals, who are young and can channel their enthusiasm, and energy for problem solving and innovative venture…
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How useful are the concepts of enterprise push and pull in explaining the factors that influence the decisions of individual
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"How useful are the concepts of enterprise 'push' and 'pull' in explaining the factors that influence the decisions of individual"

Download file to see previous pages They also involve innovative activities that are why entrepreneurship is also viewed as a major transmission mechanism that not only creates knowledge but also motivates economic growth (The World Bank, 2011). Apart from this, entrepreneurship or self-employment also acts an alternative source of employment for the labour force. Self-employment is a type of labour status which involves an extensive range of diverse activity. Starting an own business offers flexibility to the individuals and assist them in meeting the financial goals as well as the professionals goals. Entrepreneurship or self-employment has been always supported by government of the different countries because it not only creates employment within the country but also supports in overall growth and development of the country. Moreover, progress of the country in terms of trade, commerce and innovation can be estimated from the increasing rate of self-employment or entrepreneurship in the country (US Department of Labour, n. d.). Many studies in entrepreneurship literature have focused on the factors that lead the individuals to decide on for self-employment. The two major factors or variable that is commonly associated with self-employment is dissatisfaction and uncertainty avoidance. According to Brockhaus (1980), the dissatisfaction of the employee with the previous work is strongly associated with the self-employment or entrepreneurial decision of the individual. The second reason is uncertainty avoidance, which signifies the degree to which an individual feels threatened to an unknown or uncertain situation. This involves indicators like stability of employment, tendency of staying longer in a particular job, etc. The present economic condition of the global market, rising level of unemployment in the world, and volatile financial condition has led to the increase of uncertainty among the individuals, which directs them towards self-employment. Various scholars have further contributed in understanding the factors that leads to entrepreneurship (Hamilton and Harper, 1994). Other than the perceived capability that leads to self-employment or entrepreneurship, such as social, or financial, individuals would also have to reveal an enthusiasm for being self-employed. In this case entrepreneurial motivation plays an important role. Gilad and Levine (1986) has explained the distinctions between pull and push entrepreneurial motivational factors. It has been argued in the Model of the Entrepreneurial Event, that the advent of any business depends on the changes that take place in the life of the individual, which is also called a displacement. This displacement may be negative that is job loss, divorce, etc, or may be positive, such as property or business inherited, etc. The characteristics of the individual determine the way the disruptive events are perceived, valued or experienced (Shapero and Sokol, 1982). The decision for the entrepreneurial career is taken by the individual not because of an objective situation, but because of the perceptions that he/ she has. The individuals start a new business as a response to certain disturbing events that occur in their lives, or may go in other directions too. Individuals get motivated through various factors for entrepreneurship. The primary approaches that leads to the development of entrepreneurial m ...Download file to see next pagesRead More
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