Entreprenuership and small firms. How useful are the concepts of Essay

Entreprenuership and small firms. How useful are the concepts of enterprise 'push' and 'pull' in explaining the factors - Essay Example In developing countries particularly, the economic conditions drive many individuals to become entrepreneurs so as to redefine their economic conditions. The research field of entrepreneurship has been considered to be the major target of the most diverse area of study as presented by the enlarged range of theories and approaches and the trend is developing at a faster rate which is grounded on innovation, risk taking and proactiveness. The field of entrepreneurship has continually experienced attention from scholars leading to various theoretical frameworks being developed; however, new theories that are in line with the contemporary issues in the globe need to be developed (Islam, 2012, p.67). The growth of the business is influenced by the pull and push factors of starting a business. Entrepreneurs who start up a business out of the pull factors, such as desire to expand, will see their businesses growing successfully. On the other hand, entrepreneurs who are compelled into busine ss by, say, unemployment, the situation will not experience much growth. It is important to determine the major factors that influence entrepreneurs and make them start businesses since every business calls for different strategies and drive (Deakins and Freel, 2012, p.32). The growth and success of a business establishment will depend on the commitment made by the entrepreneur which usually differs in accordance to the motivating factors. Individuals with expertise, creative ideas, innovation, and demographic characteristics, including age and education of an entrepreneur, will influence establishment and growth of an enterprise. Young, energetic and highly educated entrepreneurs are served with advanced high-tech and knowledge required in running a business. The study endeavored to identify the concepts of enterprise ‘push’ and ‘pull’ that play a significant role in explaining the factors that influence the decisions of individuals to become self-employed and/or start up a business. This will help in understanding the reasons that motivate to become entrepreneurs and establish business enterprises. The findings from case studies indicates that the need for higher social status, profitability nature of the business, self-employment, need to make money, business tradition of the family and knowledge as well as personal experience are considered to be the pull factors (European Commission, 2012, p.1). Whereas, lack of formal education, dissatisfaction in previous occupation, family pressure and unemployment issues are considered to be the major push factors. Research Questions This paper intends to answer a number of questions including: 1. What motivates individuals to be entrepreneurs or enter into self-employment amongst the gender? 2. Is there a positive correlation between pull and factors and entrepreneurship? 3. Is the decision of starting up a business affected by gender, age, education, risk, finance, information availability and complexities of the entrepreneurship process? 4. Are women and the minority group predisposed to a unique pursuit of self-employment? Main Body The forces that propel individuals to set-up businesses despite the personal, financial and social risks that are associated with new venture are diverse. Individuals will decide to engage in businesses out of several motivations, some of which are positive and others negative. The positive factor â€Å"pull† and the negative factors ‘