Resources, Experience and Perseverance in Entrepreneurs' Perceived Likelihood of Success in an Emerging Economy

Working Papers CEB; WP-CEB N°16/006. Centre Emile Bernheim, Universite Libre de Bruxelles, Jan 18, 2016

24 Pages Posted: 19 Jan 2016 Last revised: 29 Jul 2019

See all articles by Quan Hoang Vuong

Quan Hoang Vuong

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; Phenikaa University

Thu-Hang Do

Vuong & Associates

Thu-Trang Vuong

Vuong & Associates; Sciences Po, Students

Date Written: January 16, 2016

Abstract

This paper introduces new results obtained from a statistical investigation into a 3071-observation data set collected from a Vietnamese nationwide entrepreneurship survey. From established relationships, such factors as preparedness, financial resources and participation in social networks are confirmed to have significant effects on entrepreneurial decisions. Entrepreneurs, both financially constrained and unconstrained, who have a business plan tend to start their entrepreneurial ventures earlier. Also, financial constraints have a profound impact on the entrepreneurial decisions. When perceiving the likelihood of success to be high, an entrepreneur shows the tendency for prompt action on business ideas. But when seeing the risk of prolonging the waiting time to first revenue, a prospective entrepreneur would be more likely to wait for more favorable conditions despite the vagueness of "favorable". Additionally, empirical computations indicate that there is a 41.3% probability that an extant entrepreneur who is generating revenue sees high chance of success. Past work and entrepreneurial experiences also have positive impacts on both the entrepreneurial decisions and perceived chance of success.

Keywords: entrepreneurship, new venture, transitional economies

JEL Classification: L26, M13, P27

Suggested Citation

Vuong, Quan Hoang and Do, Thu-Hang and Vuong, Thu-Trang, Resources, Experience and Perseverance in Entrepreneurs' Perceived Likelihood of Success in an Emerging Economy (January 16, 2016). Working Papers CEB; WP-CEB N°16/006. Centre Emile Bernheim, Universite Libre de Bruxelles, Jan 18, 2016, Available at SSRN: https://ssrn.com/abstract=2717386 or http://dx.doi.org/10.2139/ssrn.2717386

Quan Hoang Vuong (Contact Author)

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

ULB CP 145/01
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Belgium
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HOME PAGE: http://www.ceb-ulb.com/vuong-quan-hoang.html

Phenikaa University ( email )

To Huu road, Yen Nghia
Ha Dong district
Hanoi, Hanoi 100803
Vietnam

HOME PAGE: http://sites.google.com/site/vuongqh2019/

Thu-Hang Do

Vuong & Associates ( email )

3/161 Thinh Quang
Dong Da District
Hanoi, 100000
Vietnam

Thu-Trang Vuong

Vuong & Associates ( email )

3/161 Thinh Quang
Dong Da District
Hanoi, 100000
Vietnam

Sciences Po, Students ( email )

28 Rue des Saint-Peres
Paris, Paris 75006
France

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