IDEAS home Printed from https://ideas.repec.org/a/ags/pjemad/309278.html
   My bibliography  Save this article

Factors Affecting Entrepreneurship Decision in Los Banos, Laguna, Philippines

Author

Listed:
  • Huang, Mark Anthony C.
  • Camacho, Jose DV
  • Despositario, Dinah Pura T.
  • Bello, Amelia L.

Abstract

Entrepreneurship is becoming the popular means to promote economic growth and development in different economies. One fundamental issue though is what factors affect an individual’s decision to engage in entrepreneurship. This study aims to determine the factors that affect an individual’s decision to become an entrepreneur. One-hundred entrepreneurs and 100 non-entrepreneurs in Los Baños, Laguna were the respondents of the study. Probit regression was used to estimate the probability that an individual would become an entrepreneur with respect to some factors. The analysis reveals that six variables are significant: gender, family size, wealth, having entrepreneur- parents, years of schooling and risk tolerance. Women are found to be more inclined to engage in entrepreneurial activity. On the other hand, as the years of schooling of an individual increase, the probability of his or her engaging in entrepreneurship decreases. Meanwhile, family size has a direct relationship with the decision to become an entrepreneur. Further, the wealthier an individual is, the more likely that he or she would start a business. Lastly, if any or both of an individual’s parents is an entrepreneur as well as if an individual is more risk-tolerant, the more likely it is that he/ she would become an entrepreneur. The study recommends that personal entrepreneurial development (PED) trainings, low-interest loans and small business insurance mechanisms should be provided to would - be entrepreneurs.

Suggested Citation

  • Huang, Mark Anthony C. & Camacho, Jose DV & Despositario, Dinah Pura T. & Bello, Amelia L., 2016. "Factors Affecting Entrepreneurship Decision in Los Banos, Laguna, Philippines," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 2(1), June.
    • Handle: RePEc:ags:pjemad:309278
    DOI: 10.22004/ag.econ.309278
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/309278/files/Factors%20Affecting%20Entrepreneurship%20Decision%20in%20Los%20Banos%2C%20Laguna%2C%20Philippines.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.309278?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter Zwan & Roy Thurik & Ingrid Verheul & Jolanda Hessels, 2016. "Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 273-295, December.
    2. Francisco Buera, 2009. "A dynamic model of entrepreneurship with borrowing constraints: theory and evidence," Annals of Finance, Springer, vol. 5(3), pages 443-464, June.
    3. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    4. Maria Minniti & Wim Naudé, 2010. "Introduction: What Do We Know About The Patterns and Determinants of Female Entrepreneurship Across Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(3), pages 277-293, July.
    5. Roy Thurik & Ingrid Verheul & Isabel Grilo & Reena Bhola, 2006. "Explaining engagement levels of opportunity and necessity entrepreneurs," Scales Research Reports H200610, EIM Business and Policy Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Preeya Mohan & Patrick Watson & Eric Strobl, 2018. "Nascent Entrepreneurs In Caribbean Small Island Developing States: Opportunity Versus Necessity," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-18, December.
    2. Mahnoor Asif & Anum Ellahi, 2016. "Correlates of Entrepreneurship in Pakistan: The Regional Dimension," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 193-210, September.
    3. Rui Baptista & Murat Karaöz & João Correia Leitão, 2020. "Diversification by young, small firms: the role of pre-entry resources and entry mistakes," Small Business Economics, Springer, vol. 55(1), pages 103-122, June.
    4. Ratan J. S. Dheer & Len J. Treviño, 2022. "Explaining the rate of opportunity compared to necessity entrepreneurship in a cross-cultural context: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 29-55, March.
    5. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    6. Olivier Giacomin & Frank Janssen & Jean-Luc Guyot & Olivier Lohest, 2023. "Opportunity and/or Necessity Entrepreneurship? The Impact of the Socio-Economic Characteristics of Entrepreneurs," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    7. Monika Mühlböck & Julia-Rita Warmuth & Marian Holienka & Bernhard Kittel, 2018. "Desperate entrepreneurs: no opportunities, no skills," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 975-997, December.
    8. Giacomin, Olivier & Janssen, Frank & Guyot, Jean-luc & Lohest, Olivier, 2011. "Opportunity and/or necessity entrepreneurship? The impact of the socio-economic characteristics of entrepreneurs," MPRA Paper 29506, University Library of Munich, Germany.
    9. Raquel Puente & María Antonia Cervilla & Carlos Giovanni González & Nunzia Auletta, 2017. "Determinants of the growth aspiration: a quantitative study of Venezuelan entrepreneurs," Small Business Economics, Springer, vol. 48(3), pages 699-726, March.
    10. Kaiser, Ulrich & Kuhn, Johan Moritz, 2019. "Who Founds? An Analysis of University and Corporate Startup Entrepreneurs Based on Danish Register Data," IZA Discussion Papers 12191, Institute of Labor Economics (IZA).
    11. Awaworyi Churchill, Sefa & Munyanyi, Musharavati Ephraim & Smyth, Russell & Trinh, Trong-Anh, 2021. "Early life shocks and entrepreneurship: Evidence from the Vietnam War," Journal of Business Research, Elsevier, vol. 124(C), pages 506-518.
    12. Jürgen Brünjes & Javier Revilla Diez, 2013. "‘Recession push’ and ‘prosperity pull’ entrepreneurship in a rural developing context," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(3-4), pages 251-271, April.
    13. repec:beo:journl:v:62:y:2018:i:216:p:111-130 is not listed on IDEAS
    14. Jiangbin Yin & Xiaoyan Huang & Yunyun Dong & Min Zhao & Weibao Tan, 2021. "Dual‐level impact of regional context and individual attributes on entrepreneurship among return migrants in China," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1099-1116, June.
    15. Paul Couteret, 2010. "Peut-on aider les entrepreneurs contraints ? Une étude exploratoire," Post-Print hal-03540524, HAL.
    16. Backman, Mikaela & Karlsson, Charlie, 2013. "Exploration of Wisdom Ages: Firm survival," Working Paper Series in Economics and Institutions of Innovation 339, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    17. Cornelius A. Rietveld & Pankaj C. Patel, 2022. "Gender inequality and the entrepreneurial gender gap: Evidence from 97 countries (2006–2017)," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1205-1229, September.
    18. Nathaly Pinzón & Javier Montero & José L. González-Pernía, 2022. "The influence of individual characteristics on getting involved in an entrepreneurial team: The contingent role of individualism," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1103-1140, September.
    19. Yaron Zelekha & Erez Yaakobi & Gil Avnimelech, 2018. "Attachment orientations and entrepreneurship," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 495-522, August.
    20. Coad, Alex & Kaiser, Ulrich & Kuhn, Johan, 2021. "Spin doctors vs the spawn of capitalism: Who founds university and corporate startups?," Research Policy, Elsevier, vol. 50(10).
    21. Colombo, Massimo G. & Piva, Evila, 2020. "Start-ups launched by recent STEM university graduates: The impact of university education on entrepreneurial entry," Research Policy, Elsevier, vol. 49(6).

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pjemad:309278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ceuplph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.