Antecedents of Entrepreneurial Propensity: Findings from Singapore, Hong Kong and Taiwan

Abstract

The existing literature identifies a number of antecedent factors that positively influence the propensity of individuals to become entrepreneurs. Key among these is self-efficacy, knowledge of other entrepreneurs and the perception of opportunities. At the same time, current research shows that fear of failure is a major deterrent factor for entrepreneurs taking the entrepreneurial plunge. Using Shane's (2003) individual-opportunity nexus framework as an overarching theory, our study examines how these antecedents and deterrent factors influence the individual's propensity to start a new business in the three East Asian economies of Singapore, Hong Kong, and Taiwan. We also test for possible differences in the variables effects on an individual's propensity to start a new business out of necessity versus the perception of opportunity. Importantly, our findings highlight significant location differences among the variables for opportunity-driven start-ups, while no significant differences were found for necessity-driven start-ups. Finally, we discuss the relevant policy implications from our findings.

Keywords: Opportunity Start-Ups, Necessity Start-Ups, Opportunity Identification