THE STUDY OF BARRIERS TO ENTREPRENEURSHIP IN MEN AND WOMEN

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1 THE STUDY OF BARRIERS TO ENTREPRENEURSHIP IN MEN AND WOMEN Mohammad Baghr Gorji: Corrponding Author Aitant Profor, Dpartmnt of Managmnt, Aliabad Katoul Branch, Ilamic Azad Univrity, Aliabad Katoul, Iran Paria Rahimian M.A dgr in Human Rourc Managmnt, Gorgan, Iran ABSTRACT Th prnt tudy aim to invtigat th to individual ntrprnurhip a wll a comparing thm in mn and womn population. Thi tudy wa applid, corrlation-urvy mthod. Uing fild mthod, th data ar collctd from 113 mn ntrprnur and 65 womn ntrprnur. On qutionnair who validity and rliability i vrifid by contnt and Cranach mthod i alo ud to collct th rarch data. To analyz th data, T-tt and ANOVA ar ud. Th rult indicatd that thr i a maningful diffrnc btwn individual and nvironmntal to ntrprnurhip and ordr of ffctivn of in mn and womn. Kyword: individual, ntrprnurhip,, comparativ 1. INTRODUCTION Entrprnurhip i a dciiv factor in ordr to achiv dynamim and comptition for today knowldgbad conomy. According to Thurik & Wnnkr, in today tart-up and it nw variti, ntrprnurhip i conidrd not only a a man of contributing to mploymnt and ocial and political tability, but a a powr for innovation and comptition (Sarri & Trihopoulou,2005). Thr i a growing blif that ntrprnurhip, innovation and nw rik provid ncary ful for modrn dvlopmnt ngin. Economit and ntrprnurhip cholar conidr ntrprnurial bhavior a an ntrprnurial dicovry xiting in all conomic and human activiti (Analoui, Moghimi and Khanifar, 2009). It i alo notworthy that th implr and hortr th adminitrativ rgulation and procdur ar in a country, th gratr th potntial ntrprnur tndncy to launch a buin i. Thrfor, complx and contrating rgulation ar alway conidrd a to ntrprnurhip and it dvlopmnt. Entrprnurhip dvlopmnt ha alway bn facd with riou in all countri. In mot ociti, womn contitut half of th ocity and inc th awarn and acadmic ducation hav incrad, th poition and tatu of th womn hav bn changd in both family and ocity. Howvr, gndr quality and labor markt inquality till rmain (Stam, 2010). Thu, th important qution raid hr i whthr thr i any diffrnc btwn mn and womn with rpct to th individual ntrprnurhip? 2- LITERATURE REVIEW 2-1-Th concpt of ntrprnurhip Th word ntrprnur, drivd from th Frnch vrb ntrprnd, and th Grman word untrnhmn, wa coind by th Frnch Economit, Richard Cantillon in th arly ightnth cntury. Th word litrally man to undrtak. In Cantillon viw, an ntrprnur i a pron who buy at crtain pric and ll at uncrtain pric. Thi dfinition primarily focu on th lmnt of rik-taking and dciion about rourc allocation (Oifuah, 2010). Entrprnur ar known for what thy do: thy crat nw product, proc, and rvic for th markt. In gnral, ntrprnur can b dfind a individual who bring about an improvmnt, both for othr individual and for ocity a a whol. Entrprnur can b idntifid in all ort of profion and ar activ in many diffrnt way. Nvrthl, thy m to hav om charactritic in common that hav bn hown conitntly throughout a wid rang of tudi. In rviwing th finding, mot of which rult from comparion btwn ntrprnur and othr, th following lit can b drivd: ntrprnur m to hav a high nd for achivmnt, how crativity and initiativ, ar rik takr and lf-confidnt, hav an intrnal locu of control, nd indpndnc and autonomy, accomplih thir tak with grat nrgy and commitmnt, 31

2 and, finally, ar pritnt in following thir aim (Schmitt, 2004). For xampl, an ntrprnur ha bn dfind a: th ownr or managr of a buin ntrpri who, by rik and initiativ, attmpt to mak profit (Collin Englih dictionary); omon who carri out nw combination and omon who ha th ability to and valuat buin opportuniti; gathr th ncary rourc to tak advantag of thm, and initiat appropriat action to nur ucc (Hnry, Hill and Litch, 2005). Bing an ntrprnur, on who i lfmployd and who tart, organiz, manag, and aum rponibility for a buin, offr a pronal challng that many individual prfr ovr bing an mploy working for omon l (Sgal, Borgia and Schonfld, 2005). Th concpt of th ntrprnur i clarly dfind, Caon (1982) argu that th nc of ntrprnurhip conit in diffrnt prcption about th nvironmnt. W conidr that birth of a buin can b conidrd a pha of th ntrprnurial activity, but not it tarting point or it final rult. Th xitnc, th dicovry of th ntrprnurial opportunity and th dciion to xploit it ar conidrd th tarting point of any ntrprnurial activity. An ntrprnur i a pron who tart a nw buin vntur. H/h i a pron who can find opportuniti and ha th ability to dvlop tho opportuniti into profit-making buin. Gartnr (1988) dcribd ntrprnurhip a a wid rang of activiti including th cration of organization. Morri (2001) viwd ntrprnurhip a bing a major forc in conomic dvlopmnt (Nar, Mohammd and Nuibh, 2009) Barrir to indpndnt ntrprnurhip In gnral, th limiting factor of indpndnt ntrprnurhip can b dividd into thr catgori: I. Individual ntrprnurhip: th includ th following variti: (Jodyann, 2009) 1- Family and Entrprnurhip: in traditional ocity whr mn work outid th hom to arn mony and womn play an important rol in doing houwork and bringing up th childrn, mn ar mor likly than womn to tranmit buin ida. Th modrn tructur of family in today ocity and conquntly th womn rol outid th hom may rult in th mrgnc of nw maniftation of crativity and innovation in both mal and fmal. Following thi chang in attitud, mannr of production, liftyl, parntal rol within th family wr alo affctd by th chang o that parnt can play an important rol in dvloping confidnc, crating nw ida in th family and dtrmining childrn carr path. 2- Education and Entrprnurhip: on topic of intrt to rarchr i whthr individual ar born ntrprnur or will bcom ntrprnur through acadmic ducation. Thi trongly point out to th importanc of ducation in ntrprnurhip. Rgarding th concpt of ducation, Wpr bliv that failur i mor likly to happn in ntrprnur who hav xprinc but no dgr. Th cond group of ntrprnur who failur i mor likly to happn than th firt group includ tho who ar traind but not xprincd. In complt contrat, xprincd and wll-traind ntrprnur ar blivd to lad th mot lucrativ buin. II. Organizational : th includ th following variti: 1- Financing: on of th ky to ucc and progr in launching a buin i to attract and provid ufficint fund to tart up a mall buin. Thr ar many ourc for raiing capital. It iworthy that w hould xamin all poibl rourc prior to making any dciion. 2- Phyical rourc: phyical rourc ar dfind a organization tangibl at uing in producing good and rvic a wll a managing organization. Th rourc conit of quipmnt, machinri, land and faciliti. Som organization po natural rourc uch a minral, nrgy rourc and land. Th natural rourc may affct th quality of raw matrial and phyical output. 3- Markting: today, th problm facd by compani i th hortag of good, but lack of cutomr. Mot compani ar unabl to ll thir good and conquntly go bankrupt. Th finding of a tudy rvald that th cau of bankruptcy in th occupation ar a follow: (Analoui, Moghimi and Khanifar, 2009) a- Lack of nough cutomr (80%) b- Lack of appropriat cutomr (10%) c-lack of uitabl good and product (10%) III. Environmntal : th typ of includ th following variti: 1. Socio-cultural factor: th blif, attitud and valu of a ocity toward th ubjct of ntrprnurhip ar known a th ntrprnurial cultur of that ocity. Typ of attitud, valu and norm dtrmin th cultur of th ocity and conquntly thi cultur cau th dvlopmnt, progr and innovation. In a urvy conductd on 21 womn ntrprnur in th US, thy facd many problm including gtting crdit and ovrcoming thi ocial blif that womn ar not riou in thir work a much a mn. According to om rarchr, lndr, cutomr, mploy and pou do not bliv in womn a much th mn. In a rarch conductd on 129 womn ntrprnur in th US, om of thm uggtd that thy ar not abl to ntr ocial circl du to bing woman. With rpct to tablihing communication and contact ntwork, it m that mn njoy mor privilg and faciliti than womn. 2. Rul and rgulation: om tnor of Labor law and currnt tat rgulation may crat a coupl of contraint on th dvlopmnt of ntrprnurhip (Jodyann, 2009). 32

3 2-3- A Comparion btwn womn and mn ntrprnur Th iu of womn and mn ntrprnurhip ha rcivd growing attntion among policy makr in th dvloping a wll a dvlopd countri. Womn and mn ntrprnurial activiti ar an important factor in crating and incraing mploymnt opportuniti and nuring conomic growth (Cotanza, Hrund and Angla, 2003). OECD (1998) ha rfrrd womn ntrprnur a qually to omon who ha tartd a on-woman buin, to omon who i a principal in a family buin or partnrhip, or to omon who i a harholdr in a publicly hld company which h run. An ILO tudy carrid out by Marcllina t al. (2002) ha dfind womn ntrpri a on that wr tartd, ownd, and managd by womn (Amzad, Nar and Zaman, 2009) Gndr diffrnc in th prvalnc of ntrprnurhip hav bn tudid for dcad. Numrou tudi how that thr i a highr prvalnc of ntrprnurhip for mn than that for womn with imilar background. In th US, womn-ownd buin mad up only 37% of all ol propritorhip in 1998 (Small Buin Adminitration., 2001). Thi lowr prvalnc for womn ntrprnur in variou countri indicat a main ffct of gndr on th propnity of popl to bcom ntrprnur (Cotanza, Hrund and Angla, 2003). Howvr, thr i incraing vidnc that mor and mor womn ar bcoming intrtd in mall buin ownrhip and/or actually tarting up in buin. In addition, rat of lf mploymnt among womn ar incraing in vral EU countri. Although thr ar no official tatitic rlating buin to th gndr of thir ownr/managr, thr i vidnc to uggt hr ha bn ignificant incra in fmal ntrprnurhip. [4] Womn and mn po diffring motivator for bcoming ntrprnur. A highr proportion of womn bcom ntrprnur in ordr to balanc work and family, whil a highr proportion of mn k walth cration and/or conomic advancmnt (Dmartino and Barbato, 2003). 3. RESEARCH METHODOLOGY Thi tudy njoy an applid, Corrlation-urvy mthod. Uing fild mthod, th data ar collctd from 113 mn ntrprnur and 65 womn ntrprnur living in Goltan provinc, Iran. Bad on Likrt pctrum, additionally, on qutionnair including 29 qution i dignd to dtrmin ntrprnurhip with rpct to th individual, organizational and nvironmntal dimnion. Out of 29 qution, 10 qution ar allocatd to individual, 11 qution to organizational and 8 qution to nvironmntal. It iworthy that th validity and rliability of th qutionnair ar vrifid by contnt and Cronbach mthod and th collctd data ar analyzd uing T-tt and ANOVA. 4. THE FINDING OF RESEARCH Th rult of tting firt hypothi propoing a ignificant diffrnc btwn individual to indpndnt ntrprnurhip and it dimnion ar prntd in Figur 1. Individ ual barrir of ntrpr nur hip Family barrir Lvn' Tt for ity of Varianc Indpndnt Sampl Tt t-tt for ity of Man Man Std. Error 95% Confidnc Intrval of th Uppr Lowr F Sig T df Sig aumd aumd aumd

4 Scinti fic barrir aumd aumd aumd Fig. 1: Th rult of tting firt hypothi uing T-tt Rgarding th 0.00 lvl of ignificanc in th firt and third row, on can find that thr i a maningful diffrnc btwn individual and family to ntrprnurhip in mn and womn. According to th lvl of ignificanc in th fifth row, on can com to thi rult that thr i no ignificant diffrnc among cintific to ntrprnurhip in mn and womn. Th rult of tting cond hypothi propoing a ignificant diffrnc btwn organizational to indpndnt ntrprnurhip and it dimnion among mn and womn ar prntd in Figur 2. Givn th ignificanc lvl, no maningful diffrnc ha bn found among organizational, financial, phyical and markting to ntrprnurhip in mn and womn. Organizational Financial Phyical Markting aumd not aumd aumd not aumd aumd not aumd aumd not aumd Indpndnt Sampl Tt Lvn' Tt for ity of Varianc F Sig T df Sig t-tt for ity of Man Man Std. Error 95% Confidnc Intrval of th Uppr Lowr Fig. 2: th rult of tting 2 hypothi uing T-tt Th rult of tting third hypothi propoing a ignificant diffrnc btwn nvironmntal to indpndnt ntrprnurhip and it dimnion among mn and womn ar prntd in Figur 3. Th 34

5 ignificanc lvl in th firt and third row, on th othr hand, impli that thr i a maningful diffrnc btwn nvironmntal and ocio-cultural to ntrprnurhip in mn and womn. Thi diffrnc favor mn group, i.. th nvironmntal and ocio-cultural to ntrprnurhip among mn ar l than womn. Givn lvl of ignificanc in th fifth row, no maningful diffrnc ha bn found among lgal to ntrprnurhip in mn and womn. Environmnt al Sociocultural Rgulatory aumd Indpndnt Sampl Tt Lvn' Tt for ity of Varianc t-tt for ity of Man F Sig T df Sig Man Std. Error 95% Confidnc Intrval of th Low Uppr r aumd aumd aumd aumd aumd Fig. 3: th rult of tting third hypothi uing T-tt 5. CONCLUSION Th rult indicatd that thr i a ignificant diffrnc btwn individual and nvironmntal in mn and womn and thr i alo a ignificant diffrnc among th ordr of ffctivn of to ntrprnurhip in mn and womn. Comparing th ordr of ffctivn of to indpndnt ntrprnurhip in mn and womn, it wa found that financial contraint ar th main barrir to ntrprnurhip. Additionally, family contraint ar th lat factor in mn whil th fifth of vn factor in womn. It alo bcam clar that financial, markting, cintific and lgal contraint hav had gratr impact than ocio-cultural, family and phyical factor in both group. Evntually, it i alo rvald that organizational, followd by nvironmntal and individual, how gratt impact in mn. Howvr, it i intrting to ay that all thr hav th am impact on indpndnt ntrprnurhip in womn. So, According to th rarch rult th following uggtion ar offrd to rduc th : 1- A far a poibl, nw ntrprnur hav to k ida fully invtigatd for invtmnt and dvlop an appropriat buin plan for thir ida to prnt th ida of buin plan to th potntial invtor and attract thir attntion to invt on thir projct. 35

6 2- Providing appropriat faciliti to financ ntrprnur through limination of collatral, and nonrational and non-normativ guarant. 6. ACKNOWLEDGMENTS W would lik to thank th coopration of all managr and Employ who aitanc and commnt wr intrumntal in th dvlopmnt of thi tudy. REFERENCES 1. Sarri K. and Trihopoulou, A. (2005), Fmal ntrprnur pronal charactritic and motivation: a rviw of th Grk ituation, Womn in managmnt rviw, Vol.20, No.1, pp Analoui, F., Moghimi S.M. and Khanifar, H. (2009), Public ctor managr and ntrprnurhip in Ilamic rpublic of Iran, Journal of managmnt dvlopmnt, Vol.28, No.6, pp q Emrald Group Publihing Limitd 3. Stam, E. (2010), Entrprnurhip, Utrcht univrity, Utrcht, Th Nthrland 4. Oifuah, E.K. (2010), Financial litracy and youth ntrprnurhip in outh Africa, African journal of Economic and managmnt tudi, Vol.1 No.2.Pp Schmitt, E. (2004), Pathway to uccful ntrprnurhip: parnting, pronality, arly ntrprnurial comptnc, and intrt, journal of vocational bhavior, Vol 65, pp Hnry, C., Hill F. and Litch, C. (2005), Entrprnurhip ducation and training: can ntrprnurhip b taught?, part 1, Education + Training,Vol.47, No.2, Pp Sgal, G., Borgia, D. and Schonfld, J. (2005), Th motivation to bcom an ntrprnur, Intrnational journal of Entrprnurial Bhavior & rarch, Vol.11, No.1, pp Nar, K., Mohammd, W.R. and Nuibh, R. ( 2009), factor that affct womn ntrprnur: vidnc from an mrging conomy, intrnational journal of organizational analyi, Vol.17,No.3, Pp Jodyann, K. (2009), Motivational factor in a puh-pull thory of ntrprnurhip, Gndr in Managmnt: An Intrnational Journal,2009, Vol. 24 No. 5, pp q Emrald Group Publihing Limitd Cotanza, G., Hrund G. and M. Angla, (2003), Th tatu of tatitic on Womn and Mn i Entrprnurhip in th UNECE rgion, tatitical Diviion,UNECE,Gnva, 11. Amzad, H., Nar K. and A. Zaman, (2009), Factor influncing womn buin dvlopmnt in th dvloping countri, intrnational journal of organizational analyi, Vol.17 No.3, pp Dmartino R. and Barbato, R. (2003) btwn womn and mn MBA ntrprnur: xploring family flxibility and walth cration a carr motivator, Journal of Buin Vnturing, 18, Pp