The IUP Journal of Entrepreneurship Development
Factors Influencing the Choice of Entrepreneurship: Evidence from Dhaka City

Article Details
Pub. Date : September, 2021
Product Name : The IUP Journal of Entrepreneurship Development
Product Type : Article
Product Code : IJED30921
Author Name : Ashrafun Israt Ria and Nasrin Islam
Availability : YES
Subject/Domain : Management Journals
Download Format : PDF Format
No. of Pages : 19

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Abstract

In Bangladesh, entrepreneurship development is especially significant for its intrinsic role of creating new employment opportunities, income generation and ultimately poverty reduction. This study aims to identify the factors that influence an individual to be an entrepreneur. The underlying factors are categorized as push associated with some negative forces and pull linked with some positive forces. Primary data was collected from 57 respondents from among the individuals engaged in various entrepreneurial activities. The ownership style, nature of enterprise, experience, educational qualification, and push and pull factors of the sample enterprises were considered as the main sources of primary data. The data analysis has been performed in two ways: Average response of the respondent on a statement and Principal Component Analysis (PCA) using STATA tool. Based on a comparison between the outcome of "Average response of the respondent on a statement" and "PCA of the responses", "Curse of unemployment" has been identified as the push factor that compelled the respondents to become an entrepreneur. On the other hand, "Strong willpower to do something on own","Self-employment and economic freedom","Use of personal knowledge and previous experience" and "Career advancement" have been found to be the leading pull factors that encourage respondents to become entrepreneurs.


Introduction

Entrepreneur by definition is an individual who starts a business by taking the liability of all the risks and uncertainties and keeping the expectation of earning profit in the future. The definitions of entrepreneurs and entrepreneurship are many and can be traced back to the last century. Cantillon (1755) defined entrepreneurs as those who gain non-fixed and uncertain amount of income under known costs of production (Tarascio, 1985). Later, Say (1803) described an entrepreneur as someone who transfers the commercial resources from areas that have low productivity and profit to higher ones. The official definition of entrepreneurship


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