ENTREPRENEURIAL BEHAVIOUR

Differences of Entrepreneurial Behaviour in Rural and Urban Areas

Table of Content

CHAPTER 1: INTRODUCTION3

Gap in literature3

Research Question4

Hypothesis4

Objective4

CHAPTER 2: LITERATURE REVIEW5

Defining Entrepreneurship5

Entrepreneurial Traits5

Need for Achievement5

Need for Autonomy5

Tolerance for Ambiguity6

Generalized Self-Efficacy6

CHAPTER 3: METHODOLOGY7

Research design7

Sample and data collection7

Data Analysis7

CHAPTER 1: INTRODUCTION

As discussed in previous works there are certain characteristics that form personal behavior that are associated with entrepreneurs. Although theoretically these behaviors are classified in many different ways, there agreement regarding the importance of many of them. Consequently, a lot of research in this field has focused on finding the characteristics that set entrepreneurs behaviour. Forbes (2005, Pp. 599-626), a social psychologist, has examined numerous psychological trait-based approaches and concluded that, whilst psychological aspects such as 'entrepreneurial intention' and the 'ability to recognise opportunities' are strongly linked to entrepreneurial behaviour, the context in which the entrepreneur operates is also very important. Entrepreneurship reflects complex interactions between the individual and the situation, which has to be dynamic because business situations are always changing.

Perceptions and judgement are, therefore, key elements in this process. Indeed, more than 20 years ago, Mark Casson (1982) identified 'judgement' as one of the qualities that distinguishes the successful entrepreneur from the much larger group of non-entrepreneurial SME owners. As mentioned before, business judgement can reflect an innate ability but most frequently it directly derives from experience (or, more accurately, learning from experience). However, past experience can also filter out our ability to spot new opportunities or threats. Cultural effects related to family, locality and friends can help us interpret the world but they can also colour what we see. In this research, the researcher is interested to find the Differences of entrepreneurial behaviour in rural and urban areas.

Gap in literature

Gartner, Bird & Starr (1992, Pp. 13-31) noted that problem in the literature is that many entrepreneurial traits, including such concepts as need for achievement and tolerance for ambiguity, are applicable to not only entrepreneurship, but also to successful nonentrepreneurs. While his point is valid, the problem is that few, if any, careers or professions draw on characteristics unique to that profession, nor are they as diverse in their roles and skills as entrepreneurship. Dubini's point fails to account for the fact that entrepreneurship encompasses people who start manufacturing firms, along with those running non-profits, retail boutiques, salons, and computer consulting, among many others. Limiting research to one particular field or type of business would likely lead to more accurate characteristic data, but at the cost of being unable to find commonalities across all entrepreneurs.

This is why Douglas & Shepherd (2000, Pp. 231-251) use the following definition of what constitutes a personality trait: “Traits... are regarded as distinguishing characteristics or qualities that predispose a person to initiate a venture” (p. 34, emphasis added). Their definition, used for this study, only points to the intent of starting a business, not the actual act itself, which is dependent upon a multitude of other factors, including availability of resources, recognition of opportunity, and others. This interpretation is supported by Lachman (1980) who said ...