FEATURE
PAPER
Prediction of Entrepreneurial Intention: A Study Using
the Theory of Planned Behavior
The
following paper was presented at the 2007 Association of
Small Business and Entrepreneurship (ASBE)
. It was written
by Anita Leffel, University of Texas at San Antonio.
Abstract
The purpose
of this study is to apply the Theory of Planned Behavior
on employment
status choice intentions of former
undergraduate students in entrepreneurship classes from
2002 to 2007. In using the Theory of Planned Behavior as
a framework,
we analyzed the perceptions of the students on constructs
identified in this theory and replicated in the Kolvereid
(1996) study: attitude, subjective norm and perceived
behavioral control. We coded all former students as experienced
in
self-employment since the class was required to start a business
prior to
the conclusion of the course. Kolvereid found the more
favorable the attitude and subjective norm with respect to
self-employment,
and the greater the perceived behavioral control, the
stronger the individual’s intention to become self
employed. Replicating his study, however, we found that former
experience
was a better predictor for intention to become self-employed.
Additionally, gender predicted employment status choice
intention.
Introduction
As small business owners get closer to retirement, they face
a haunting question. What can they do to enhance the profitability
of their business while still keeping the business within the
size and scope of their personal comfort zone or what can they
do to enhance the value of the business from the standpoint
of a buyer? This article addresses those issues along with
advancing a new approach to valuation of a small business.
Read
the Entire Paper...
TIP
OF THE WEEK
Identifying Startup Ideas
It is critical
to determine whether an idea for a new business actually
represents
a good opportunity. Many people have ideas
about new products or services that seem like winners—but
just because something is a good idea does not mean it is a
good opportunity, as you will see. In fact, those who become
infatuated with an idea sometimes underestimate the difficulty
of tapping into market interest in that idea or building the
company required to capture it.
To qualify
as a good investment opportunity, a product or service must
meet
a real market need, such as a problem for
which
the entrepreneur offers a sensible
solution. If consumers are convinced that the benefits of a product or service
are worth the price they will have to pay to get it, they will likely want to
buy it—assuming they know about it and can afford it. All of these factors
are critical. Amar Bhide, an entrepreneurship expert and professor at Columbia
University, put it this way: “Startups with products that do not serve
clear and important needs cannot expect to be ‘discovered’ by enough
customers to make a difference.”
Many popular frameworks highlight important factors to consider
when deciding whether a new business idea can lead to a promising
business opportunity. Some
of the more important features of these approaches follow.
Market factors. The product or service must meet a clearly
defined market need; furthermore, the timing must be right.
Even when the concept is good, success
requires a window of opportunity that remains open long enough for an entrepreneurship
to take advantage of it. If the window closes before the enterprise can get established,
it is unlikely to survive for long.
Competitive advantage. I practical terms, a competitive
advantage exists when a firm offers a product or service that
customers
perceive to be superior to
those offered by competitors. It follows that the business must be able to achieve
an edge that can withstand challenges from rival businesses. Many startups fail
because entrepreneurs do not understand the nature and importance of a competitive
advantage.
Economics.
The venture needs to be financially rewarding, allowing for
significant profit and growth potential. Its
profit potential must be sufficient to allow
for errors and mistakes and still offer acceptable economic benefits. At a minimum,
the enterprise must offer a reasonable path to profitability—no business
can operate for long when it is losing money. And without adequate growth, the
business will not be able to provide sufficient returns to attract investors,
if they are ever needed.
Management capability.
The fit between entrepreneur and opportunity must be good.
In other words, a business idea
is an opportunity
only for the entrepreneur
who has the appropriate experience, skills, and access to the resources necessary
for the venture’s launch and growth. For example, offering suborbital space
tourism services is out of reach for most entrepreneurs, but not for Sir Richard
Branson, an extraordinary and very well-funded British entrepreneur who has set
up Virgin Galactic, with plans to offer space flights to the general public before
the end of the decade. Launching the world’s first “spaceline” is
a challenging but promising business opportunity for Branson, but it is at best
a dream for nearly every other entrepreneur.
Fatal flaws. There
must be no fatal flaw in the venture---that is, no circumstance
or development that could, in and of
itself, make the business unsuccessful.
John Osher, serial innovator and entrepreneur, estimates that nine out of ten
entrepreneurs fail because their business concept is deficient. In his words, “They
want to be in business so much that they often don’t do the work they need
to do ahead of time, so everything else right, and fail because they have ideas
that are flawed.” It is important to look (honestly) for potential weakness
in your own setup ideas. No matter how awesome the startup concept may seem to
be, moving forward is pointless if it uses a manufacturing process that is patent
protected, requires startup capital that cannot be raised, ignores environmental
regulations, or is unsound in some other way.
SAMLL BUSINESS MANAGEMENT
Launching & Growing Entrepreneurial Ventures
14th Edition Copyright 2008. By Justin G. Longnecker, Carlos W. Moore, J. William
Petty, Leslie E. Palich . Pages
64-65
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ANNOUNCEMENTS
2008
SBI Registration Form
The Small Business
Institute will be hosting their Annual International Conference
at the Handerly Hotel in San Diego, California. Click
here for more information and hotel arrangements.
National
Urban Inititiatives Competition
Clark University
is hosting the National Urban Inititiatives Competition.
They are seeking proposals that have practicality, creativity,
and are well rooted in theory. Proposals should trnslate
from theor to model or vice versa. Furthermore, it should
be feasible to enact into legislation.
An award of $20,000 will be given to each winner of the three categories:
1. Affordable and
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SBI
Journal - Request for Papers
The Small Business
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Institute Journal. If you are interested in submitting a
paper, please let us know. The first issue is to be printed
April 2008. For more information please click
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SBANC is Updating
Their Entrepreneurship and Small Business Network
The Small Business Advancement
National Center is currently updating their Entrepreneurship
and Small Business Network. If you currently teach or know
a professor in your
school or state that teaches an Entrepreneurship or Small
Business course, please provide us with any available information
at sbanc@uca.edu.
We appreciate any help. Thank you.
.
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CONFERENCES
NCIIA
|
| Who: |
NCIIA Advanced E-Team |
| What: |
12th Annual March Madness for
the Mind E-Team exhibition
|
| Where: |
Dallas, TX |
| When: |
March 20-22 |
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SWAM
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| Who: |
Southwest
Academy of Management |
| What: |
2008
Annual Meeting and 50th Reunion Southwest Acadmeny
of Management
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| Where: |
Hyatt
Regency - Houston, TX |
| When: |
March
4-8, 2008 |
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USASBE
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| Who: |
United States Assiciation for Small
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| What: |
USASBE 2008 Doctral Consortium |
| Where: |
San Antonio, Texas |
| When: |
January 10, 2008 |
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EDRP
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The
University of Arizona Economic Development Research
Program
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| What: |
40th
Annual Arzonia Economic Development Course |
| Where: |
The
University of Arizona, Tucson |
| When: |
January
20-24 |
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HTSF
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University
of Twente
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High Technology Small Firms Conference |
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Enschede, The Netherlands |
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May 22 - 23, 2008 |
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CALLS FOR PAPERS
Learning
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| Who: |
International
Conference on Learning
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| What: |
The Fifteenth International Conference
on Learning
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| Where: |
The University of Illinois, Chicago |
| When: |
June 3-6, 2008 |
Submission
Deadline:
November 22, 2007
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SOBIE
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| Who: |
Society
of Business, Indutry, and Economics
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| What: |
Annual
Academic Conference of the Society of Business,
Industry, and Economics
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| Where: |
Destin,
Florida |
| When: |
April
15-18, 2008 |
Submission
Deadline:
March 1, 2008
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HICB
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| Who: |
College
of Business Administration at the University of
Hawaii
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| What: |
8th Annual Hawaii International
Conference
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| Where: |
Honolulu Hawaii, USA |
| When: |
May 22 - 25, 2008 |
Submission
Deadline:
February 18, 2008
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