But the success rate of new entrepreneur is not high as expected (Harvard study shows only 18-20% chance of success of new entrepreneur). The result of this study aims to provide the recommendations to the group of potential entrepreneurs to 1). Today, many would-be entrepreneurs and new start-ups try to compete with each other for success using many approaches (such as obtaining courses, applying for masters, trial and error, joining a business networking group, and many more).
That's why we want to know what factors are overlooked by potential entrepreneurs and start-ups. The primary objective of this thematic paper is to identify and evaluate factors that prevent potential entrepreneurs and start-ups from becoming entrepreneurs. But the remaining 80% of potential entrepreneurs and start-ups still can't get out of trouble or can't understand why they fail or are unable to start up.
On the contrary, with this research, the author tries to break through all the possible factors that prevent future entrepreneurs and new start-ups from being a true entrepreneur, and also identify, evaluate and prioritize these factors for their benefit to understand the barriers and to overcome and hopefully to have a better chance at success.
Definition Term
Construction of Conceptual Model
- Push and Pull
- Locus of control
- Entrepreneur is born or made?
- Talent, Temperament, Technique
- FACETS
The characteristics typical of a successful entrepreneur are the ability to take risks, innovation, knowledge of how the market functions, manufacturing knowledge, marketing skills, business management skills and the ability to work together (Casson, 1982). Caird (1988) also mentions that a good nose for business, the desire to take risks, the ability to identify business opportunities, the ability to correct mistakes. According to McClelland (1961), individuals who have a strong need to achieve are among those who want to solve problems themselves, set targets and strive for these targets through their own efforts.
The theory suggests that individuals with a strong need to achieve often find their way into entrepreneurship and succeed better than others as entrepreneurs. They just need to fully understand themselves, use the strength of their personality and choose a different way with the right tools and techniques to be successful. Talents are some important characteristics or hidden abilities that an individual is born with that need to be discovered.
It is the case that temperament can be influenced by the environment in which people grow and develop. Although education and other techniques can provide useful tools, if the talent and temperament are not there in the first place, an individual would hardly turn out to be a successful entrepreneur. In conclusion, temperament is not only the key element to create talents and use techniques to improve performance, but also an individual need to learn how to manage them.
FACETS is the framework that explains the 6 character theme of entrepreneurs developed by Bolton and Thompson (2003). It represents the characteristic of an individual who has a clear plan, aim and objective in life and work. Advantage The strategic element including the ability to discern values and opportunities worth pursuing.
Conceptual Model
From the framework, Bolton and Thompson explain that each entrepreneur will have a combination set of these character themes, but the degree and number of elements will vary according to their background. There are 3 sets of themes that will usually work together which are F-A-C (Focus, Benefit and Creativity). Although the mindset and inherent factors are quite similar in many ways, it is also important to define its differences now for the further evaluation.
If intrinsic factors are significantly important to entrepreneur's success, the mindset will have many more influences in the same context. Certainly, disposition is a subset of intrinsic factors (since intrinsic factors create person's characteristics), but in addition, disposition is the key element that will drive individual's personalities to actions. It would therefore be easier to explain the term disposition as beliefs and a combination of intrinsic factors as behavior or the set of actions that produce disposition.
After analyzing a lot of literature, the author has summarized the most important factors into three main categories: individual mindsets, individual characteristics and external factors, as shown in the conceptual model below. According to Thompson, temperament has the most influence on both intrinsic and extrinsic factors and also plays an important role in directing the actions of individuals. In the same context, talent refers to the ability an individual is born with, but it can also be improved and strengthened, which in this study is better referred to as 'individual characteristic'.
However, for a broader scope of the study, the author would like to include connections, funds and capital as a component and these will be called “external factors”. The table shows that there are many variable factors derived from the famous conceptual theories. To prove the validity of these factors, the research method must be used and will be used in the real dynamic environment of Thailand.
RESEARCH METHODOLOGY
Research Design
In addition, an in-depth interview shows a more comfortable atmosphere to gather detailed and relevant information (Adam et la, 2006). This research relies on qualitative methodology by conducting interviews with 2 groups of people (16 respondents in total) who are the prospective entrepreneur (8 respondents) and the current entrepreneur (8 respondents) to investigate what factors they see as the major obstacles in entrepreneurship regard. Each interview will take approximately 15-30 minutes and will be conducted individually to avoid group biases.
This sampling involves selecting cases that meet certain criteria, such as the desire to start a business. Criterion sampling can add important qualitative components to research and help provide a more accurate in-depth analysis because the cases that are selected meet predetermined criteria (Patton, 1990).
Population
The core of this study is to understand the different ways of thinking of each respondent and how they plan to use it, so it must have a careful observation using interview on the open questions. We use a period of three years because we want to make sure that those entrepreneurs are mature enough to give the reliable information and still fresh enough not to forget what they have passed. The gender and age group of all respondents will also be varied as much as possible to capture the true realism of this study.
Interview Questions
DATA ANALYSIS
Demographic
Finding
- Individual mindset
- Individual characteristic
- External factors
- Reflections of Interviewee
Both the external factors and the individual mentality are important to almost the same extent, but I would give more weight to the individual. However, they agree that this is one of the checkpoints that every successful entrepreneur must have. Since most potential entrepreneurs pay a lot of attention to this aspect as an obstacle to their success, the following factors are most often mentioned during the interview.
According to most of the respondents, it seems that this is one of the factors that can be used to draw the line between entrepreneur and non-entrepreneur. In conclusion, in the same sense, most interviewees agree that the lack of a clear goal is the most dangerous obstacle to entrepreneurship. Both groups believe that individual characteristics can potentially be changed by the strong mentality and external forces.
Although this is not the major issue, the respondents also mention few of the factors that they think are important as follows. Although the contractor would logically do the rough economic analysis in their head and define the calculated risk, but most of the time not all risks can be identified. This is the factor that has always been mentioned the most by most of the respondents.
One of the younger respondents stated that many startup programs have been introduced recently and this may be a way out of the problem. One of the older respondents states that referral marketing helps him a lot in his business. However, most of the time, a business mentor is a rare commodity that is hard to find.
Half of the respondents believe that the external locus of control (fate, luck or uncontrollable factors) has a greater influence on the success of an entrepreneur. The remaining 6 respondents say that both factors have the same level of motivation.
CONCLUSION AND RECOMMENDATIONS
- Conclusion
- Recommendations
- Double check your mindsets
- Don’t lose your identity (Individual characteristic)
- Limitations
- Future Research
But from the survey, the new insight shows that "external factors" come as the second most worrying factor instead of the "individual characteristic". You have more than 100 percent determination to make it succeed - You have clear goals and know exactly what needs to be done. Compared to a journey, external factors can be like the roads and how you route it.
These recommendations are just a reminder to look around and see what external factors can help you before you start your journey. However, if external factors such as lack of money or lack of connection become your problem, there are tools such as Kick-starter, Tech-startup or Business Networking International that are waiting for you and can solve your problems. If external factors such as roads, the individual mentality like that of a driver, the individual characteristic would be like a car.
It's like a car where each driver may have more than one, but he or she will decide which one to use for which trip. However, it is also important to make sure that the car (or individual feature) you choose is comfortable enough for the long drive and that you are comfortable with it. Due to limited time and resources, this study reduces the sample size and also the methodologies to be used.
For more accurate and more acceptance in the output of this study, the sample sizes should be multiplied for larger scales. Together with the methodology used in "pre-identifying factors stage" should be changed from "theories' extraction" to the quantitative methodology by using questionnaires for more variety and more realistic of pre-identifying factors under Thailand context. Since the combination of qualitative and quantitative methods is complementary and can hardly be used in isolation from each other (Jones, 1988).
