Nowadays, generational change has happened in the business world, as the new generation is the newest generation to enter to be an entrepreneur. The qualitative method is used by interviewing a group of young generation who want to be entrepreneurs that vary according to characteristics, educational background and experiences etc. The research framework consists of six parameters, which are intention, ability, motivation, knowledge, networking, and acceptance to show the characteristics of the new generation related to the factors of successful entrepreneurs that have been studied in many researches.
All these factors are necessary for the development of the young generation to improve their qualities and develop themselves to become the successful entrepreneur. It is likely soon that the old generation will retire and a full entrance for the young generation (Levack, 2007). This study focuses on the group of young generations who want to be entrepreneurs in order to identify the key characteristics of the young generation that relate to the key factors of successful entrepreneurship of older generations.
If we compare the characteristics of a successful entrepreneur with the characteristics of the young generation, there are some characteristics that are held by both parties and have assessed the fact that the young generation has great potential to be successful entrepreneurs. The second part discusses the key factors of the successful entrepreneur in the old generations which can be used to create a framework identifying the key factors to develop the young generation as a successful entrepreneur. According to many research papers, the key characteristics of the young generation are high self-esteem (Amy, 2007; Twenge and Campbell, 2008), high self-confidence, risk-taking, multitasking, team-oriented and adaptability (Jayson, 2006; Gale). , 2007) and some important features are as follows;
Learning
Motivation
Social Attitude
Entrepreneur’s Successful Factors
- Individual’s Intention
- Ability
- Motivation
- Knowledge
- Networking
- Acceptance
Shapero (1982) has added the third factor of action tendency as an additional factor of the individual's intention. Furthermore, indicators of the intention to become an entrepreneur are self-efficacy, risk tolerance and desirability (Gerry et al., 2005). This particular ability has allowed many entrepreneurs to start their innovative development process and prepare the necessary resources to support the development process earlier than others (Stevenson and Sahlman, 1987; Entrialgo et al., 2000).
The great entrepreneur will be able to examine, analyze and identify the right ideas to develop into profitable business from the pool of ideas (Melissa, 2011). For example, many new products and services in the market are developed from the innovative ideas or concepts of entrepreneurs without any technical or specific knowledge. It seems that these great entrepreneurs have been keen to see how to add value during the transformation process in order to increase customer satisfaction and make their products in demand (John, 1999).
Belief in high chances of success is one of the motivations for doing business (Cooper et al., 1988). Related to the theory, pull theory consisting of self-fulfillment, wealth, and independence is more attractive for people to become entrepreneurs than pull theory consisting of negative forces such as job dissatisfaction, insufficient pay, and inflexibility. work (Gilad and Levine, 1986; Keeble et al., 1992; Orhan and Scott, 2001). As a result of comparing the value of the results of work for self-employment and work for others; people believe that working for self-employment is a way to achieve a better outcome (Campbell, 1992; Praag and Cramer, 2001; Levesque et al., 2002).
In addition, the factors of performance, satisfaction and realizing the feeling of satisfaction are the fundamental factors of the motivation to continue the business with high challenges and problems (Burke and Fiksenbaum, 2009; Rosemary, Alex, and Antonio, 2014). The higher level of education and professional background is the key factor to increase the productivity of entrepreneur and also leads to the higher profitability (Bruderl et al., 1992). The advantage of knowledge is to be able to spot the trend of the market earlier than those who do not have the same level of knowledge.
Networking is necessary for the entrepreneur to develop both personal and business relationships with customers and suppliers (Carson et al., 1995; Syed, 2011), resulting in a higher level of business performance, for example through having a suitable business partner and teamwork (De Carolis et al., 2009). However, the benefit lies in the potential success of the company; the entrepreneur must accept that taking a higher risk leads to a higher return (Brockhaus, 1980; Campbell, 1992).
RESEARCH METHODOLOGY
Framework
Sampling
The data collection used is based on the qualitative interview method with open questions. The reason why the qualitative method was applied to know the characteristics, attitude, vision of the business etc. This is considered the best way to collect relevant information from people who have different characteristics, educational backgrounds, experiences, etc.
These mentioned factors are the main influencing factors that have made each of them different from each other in terms of strengths and weaknesses which lead to different requirements in order to develop properly to be an entrepreneur. successful.
Research Questions
- Demographic
- Individual’s Intention
- Ability
- Motivation
- Knowledge
- Networking
- Acceptance
DATA COLLECTION AND ANALYSIS
- Demographic Profiles of Respondents
- Individual’s Intention
- Ability
- Motivation
- Knowledge
- Networking
- Acceptance
I need to gain more knowledge before starting a business because I am not familiar with the business industry I want to do.” (Respondent M). Regarding the time to start a business, most of them set the time to start a business differently within one to ten years, for example, one respondent said;. Some respondents would like to start business as soon as possible according to their potential as mentioned by the respondent;.
I create the business ideas from my personal interest related to the trend of the product in the market, which is the opportunity to create more sales.” (Respondent M). Some respondents create the business ideas from their family business to support and expand the family business through their new business ideas, which will be managed and owned by themselves. Besides, I also prefer to have the business that can create the passive income, like apartment service business.” (Respondent J).
My motivation for doing the business is to be happy with my work by doing what I love. My business goal is to create long-term business with well-known products that continuously grow and sustain in the business industry. All respondents have specific knowledge that has developed from their personal experiences and is also related to the business they want to do in the future.
I also try to read business news every day to understand the market situation.” (Respondent O). Regarding business partners, most of the respondents would like to do the business themselves because they can create a business with their own work style and can make their own decisions, for example one respondent said;. I don't want to have problems with my friends and family, so I prefer to create a business myself." (Respondent G).
Some of them create the business connection with their suppliers and people who are in the same industry as one respondent said;. I prefer to request the information from suppliers and join the industry group to gain insight into information about my industry.”. I think the risk is the normal thing that comes with the business and it can be managed." (Respondent K).
At the moment, I am not ready to start a business because I do not know how to prepare and manage the risks that always arise in business.” (Respondent F).
CONCLUSION AND RECOMMENDATION
- Conclusion
- Recommendations
- Ability: create in-detailed business plan
- Motivation: focus on the positive motivation
- Knowledge: develop self-efficacy
- Limitations
- Suggestions for Further Research
From the study we found out that the young generation needs to improve some characteristics to develop themselves to become the successful entrepreneur. Regarding the research framework, the researcher concludes that there are four factors for the development of the young generation as follows;. Regarding the perception of the young generation, they know the importance of business plan, but have misunderstood the functions of the business plan, which is impractical to use and time-consuming to create.
According to the ability of a successful entrepreneur, the creation of a detailed business plan is one of the important factors for the proper management and control of business direction in the midst of rapid economic and environmental changes. Therefore, the young generation needs to strengthen their ability to make a detailed business plan in order to fulfill the key success factors of a successful entrepreneur. The young generation should focus on positive factors to motivate themselves to face problems and be more demanding to achieve a higher level of business success.
From the research, young generation has the specific knowledge related to their personal skills. Compared to the knowledge necessary for the successful entrepreneur, they have a variety of skills that can lead to the higher productivity and profitability of the business. Therefore, young generation needs to improve their knowledge with a variety of skills, which benefit from managing all business functions.
The young generation generally collects business information from their business network, which is usually created by the people they are surrounded by, and expands the business connection through recommendations. Therefore, to create a company's competitive advantages, it is necessary to increase the business network with other groups of people who could create more useful sources of information and strengthen business partnerships to achieve a higher level of business performance. The limitation of this research is the number of respondents that can be surveyed, which directly affects the result of the research to identify the key factors of the development of the young generation.
The output of a small group of people may not represent the real characteristics of the young generation who want to be an entrepreneur. Gathering information from multicultural and demographic respondents could identify specific factors more precisely to create the practical development process suitable for all young generations, which in turn would increase the number of successful entrepreneurs to the business world.
Why networks improve the progress of new venture creation: the influence of social capital and cognition.
