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The relationship among Locus of Control, Independence, Risk taking & Entrepreneu rship in Bangladesh Contents Introduction Study

Objectives Research Methodology Variables Data Analysis and Findings Recommendation Conclusion Reference Appendix Introduction Entrepreneurship is the act of being an entrepreneur or "one who undertakes inno vations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitali zing mature organizations in response to a perceived opportunity. The most obvio us form of entrepreneurship is that of starting new businesses (referred as Star tup Company); however, in recent years, the term has been extended to include so cial and political forms of entrepreneurial activity. When entrepreneurship is d escribing activities within a firm or large organization it is referred to as in tra-preneurship and may include corporate venturing, when large entities spin-of f organizations. The word entrepreneur originates from the French word, entreprendre, which means "to undertake." In a business context, it means to start a business. The Merria m-Webster Dictionary presents the definition of an entrepreneur as one who organ izes, manages, and assumes the risks of a business or enterprise. Entrepreneurship is the capacity and willingness to undertake conception, organi zation, and management of a productive venture with all attendant risks, while s eeking profit as a reward. Study Objectives The people of Bangladesh want to be an entrepreneur for personal ambition, creat ivity, a desire for independence-to be ones own boss, self-realization and an amb ition to improve the quality of working conditions, to raise economic returns, a nd to develop a flexibility that caters for the combination of family responsibi lities with gainful employment & to cope with the modern competitive world The main purpose of the study is to analyze the relationship among Locus of Cont rol, Independence, Risk taking, Entrepreneurship in Bangladesh. The study endeavored to identify the reasons why the entrepreneurs become motiva ted and are compelled to establish business enterprises. Money making for family , self-employment, gaining higher social status, use of personal knowledge and p revious experience, family business tradition, and less complexity but more prof itability nature of business as the pull factors while lack of higher formal edu cation, curse of unemployment, dissatisfaction with previous occupation, and fam ily hardship or pressure as the push factors. The objectives are to lead the development, progress and success of Entrepreneur

s in the era of globalization of commerce, trade and industry. To motivate and guide people involved in entrepreneurial, commercial and industr ial activities in order to upgrade the quality and quantity, standard and level of their involvement in line with the vision of the country. To arrange cooperation with government for the achievement and implementation of its policies; in relation to the development of women in the entrepreneurial, c ommercial, trade and industrial world. Research Methodology Data Collection In this research data were collected from primary and secondary sources. Primary source data were collected from individuals through face to face (direct) inter views at Innovative IT Firm & Shariatpur Electric enterprise, using a structured questionnaire. The respondents for the questionnaire were selected from the directly owned ente rprises. Secondary sources and information (including from published books, jour nals, newspapers, articles, internet and concerned organizations) have been used to develop this study further. Data Analysis System This exploratory research tries to explore the existing condition of the variab les and relationship among them in a real world application of Bangladesh. Both qualitative and quantitative research approaches and procedures have been applie d to explore relevant information for this study Variables Locus of Cont Locus of control is a theory in personality psychology referring t o the extent to which individuals believe that they can control events that affe ct them. Understanding of the concept was developed by Julian B. Rotter in 1954, and has since become an aspect of personality studies. Entrepreneurship researc h has identified a number of personal characteristics believed to be instrumenta l in motivating entrepreneurial behavior. Two frequently cited personal traits a ssociated with entrepreneurial potential are internal locus of control and innov ativeness. Internal locus of control has been one of the most studied psychologi cal traits in entrepreneurship research, while innovative activity is explicit i n Schumpeter s description of the entrepreneur. External Locus of Control Individual believes that his/her behavior is guided by fate, luck, or other exte rnal circumstances Internal Locus of Control Individual believes that his/her behavior is guided by his/her personal decisio ns and efforts. Those with a high internal locus of control have better control of their behavio r, tend to exhibit more political behaviors, and are more likely to attempt to i nfluence other people than those with a high external (or low internal respectiv ely) locus of control. Those with a high internal locus of control are more like ly to assume that their efforts will be successful. They are more active in seek ing information and knowledge concerning their situation. Locus of control has generated much research in a variety of areas in psychology . The construct is applicable to fields such as educational psychology, health p sychology or clinical psychology. There will probably continue to be debate abou t whether specific or more global measures of locus of control will prove to be more useful. Careful distinctions should also be made between locus of control (

a concept linked with expectancies about the future) and attribution style (a co ncept linked with explanations for past outcomes), or between locus of control a nd concepts such as self-efficacy. The importance of locus of control as a topic in psychology is likely to remain quite central for many years Locus of control has also been included as one of four dimensions of core self-e valuations one s fundamental appraisal of oneself along with neuroticism, self-e fficacy, and self-esteem. The concept of core self-evaluations was first examine d by Judge, Locke, and Durham (1997), and since has proven to have the ability t o predict several work outcomes, specifically, job satisfaction and job performa nce.

Independence The state or quality of being independent is freedom from dependence; exemption from reliance on, or control by, others; self-subsistence or maintenance; direct ion of one s own affairs without interference. For all entrepreneurs, starting a business is the route to life, liberty, and the pursuit of happiness, no matter how risky. Its the American dream that has been t he goal of people in this country for over 230 years. If you are here in the U.S ., I hope you are all able to take some time off this holiday weekend, to contem plate what you do, and why you do it. According to an article and poll by Startups.co.uk, having the independence to m ake your own decisions is considered the key benefit of being an entrepreneur. N early 90% of respondents said decision-making independence was very important, c losely followed by more flexibility for a better work/life balance. Job creation and innovation are the results, not the drivers. Personal satisfaction also ranked close behind, with 70% of respondents claiming it was a key advantage to running their own business. Contrary to popular belie f, most business owners did not start a business just to earn more money. Only 3 2% of entrepreneurs cited money a key benefit of running their own firm. This in dicates that lifestyle and satisfaction factors are often more important than fi nancial ones. As with everything in life, there are advantages and disadvantages to every choi ce we make. Choosing entrepreneurship is no exception.

Risk taking Risk taking is indispensable in several fields such as creativity, entrepreneurs hip, etc. In spite of the fact that the consequences of risk taking can sometime s be catastrophic, humankind must continue to take calculated risks if it is to progress. Niklas Luhmann (1996) seeks to explain this transition: Risk-taking refers to the tendency to engage in behaviors that have the potenti al to be harmful or dangerous, yet at the same time provide the opportunity for some kind of outcome that can be perceived as positive. The article begins with an introduction of the construct and then briefly discus ses the role of risk taking in entrepreneurship and in decision making which is the key to corporate success. It further provides a review of research on certain aspects of the construct su ch as the basic debate about whether risk taking is solely situation based or is a stable trait.

Risk taking whether financial, social of psychological is part of the entrepreneu rial process. Finally, it gives some insight into internal factors such as intrinsic motivati on and demographics as well as external factors including culture and group dyna mics. Entrepreneurship The word entrepreneurship has been derived from a French root which means to unde rtake". It is also called by various names, e.g. adventurism, risk taking; thril l seeking, innovating, etc. According to Higgins, " Entrepreneurship is meant the function of seeking invest ment and production opportunity, organizing an enterprise to undertake a new pro duction process, raising capital, hiring labor, arranging the supply of raw mate rials, finding site, introducing a new technique and commodities, discovering ne w sources of raw materials and selecting top managers of day-to-day operations o f the enterprise. Jaffrey A. Timmons has defined entrepreneurship as "the ability to create and bu ild something from practically nothing. Fundamentally, a human creative activity , it is finding personal energy by initiating, building and achieving an enterpr ise or organization rather than by watching, analyzing or describing one. It req uires the ability to take calculated risk and to reduce the chance of failure.." According to A.H.Cole "entrepreneurship is the purposeful activity of an individ ual or a group of associated individuals, undertaken to initiate, maintain or ag grandize profit by production or distribution of economic goods and services."

According to Harbison, Organization Building skill means the ability to multiply oneself" by effectively delegating responsibility to others. Entrepreneurship is the act of being an entrepreneur or "one who undertakes inno vations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitali zing mature organizations in response to a perceived opportunity. The most obvio us form of entrepreneurship is that of starting new businesses (referred as Star tup Company); however, in recent years, the term has been extended to include so cial and political forms of entrepreneurial activity. When entrepreneurship is d escribing activities within a firm or large organization it is referred to as in tra-preneurship and may include corporate venturing, when large entities spin-of f organizations.[1] According to Paul Reynolds, entrepreneurship scholar and creator of the Global E ntrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers." [2] And in recent years has bee n documented by scholars such as David Audretsch to be a major driver of economi c growth in both the United States and Western Europe. "As well, entrepreneurshi p may be defined as the pursuit of opportunity without regard to resources curre ntly controlled (Stevenson, 1983)". Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures see k venture capital or angel funding (seed money) in order to raise capital to bui

ld the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business.[4] Many kinds of organi zations now exist to support would-be entrepreneurs including specialized govern ment agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not rela ted necessarily to business formation activity such as conceptualizations of ent repreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, pol itical entrepreneurship,

Locus of Control Independence Risk Taking Internal External Strong need Weak need ss Weak willingness 40% 6o% 60% 40% 50% 50% Data Analysis and Findings

Strong willingne

Internal Locus of Control Answering yes to questions 1, 4, 8 and 1, 5, 6, 7, 10 indicates internal locus o f control at the Innovative It Firm and the Shariatpur Electric Enterprise. Aver age internal locus of control = 3+5 2 =4o% W e find that 40% of internal locus of control motivates to become an entreprene ur in the challenging business world. External Locus of Control Answering yes to questions 2, 3, 5, 6, 7, 9, 10 and 2, 3, 4, 8, 9 indicates exte rnal locus of control at the Innovative It Firm and the Shariatpur Electric Ente rprise. Average external locus of control = 7+ 5 2 = 60% W e find that 60% of external locus of control motivates to become an entreprene ur in the challenging business world.

Answering yes to questions 2, 3, 4, 5, 6, 8, 9, and 2, 5, 6, 7, 8 indicates havi ng strong need for independence at the Innovative It Firm and the Shariatpur Ele ctric Enterprise. Average strong need for independence = 7+5 2 =60%

W e have found that 60% of strong need for independence motivates to become an e ntrepreneur in the challenging business world. Answering yes to questions 1, 7, 10 and 1, 3, 4, 9, 10 indicates having weak nee d for independence at the Innovative It Firm and the Shariatpur Electric Enterpr ise. Average weak need for independence = 3+5 2 =40% We have found that 40% of weak need for independence motivates to become an entr epreneur in the challenging business world.

Answering yes to questions 1, 3, 6, 8, 9 and 1, 2, 6, 9, 10 indicates having str ong willingness to take risks at the Innovative It Firm and the Shariatpur Elect ric Enterprise. Average strong willingness to take risk = 5+5 2 =50% We have found that 50% of strong willingness to take risks motivates to become a n entrepreneur in the challenging business world. Answering yes to questions 2, 4, 5, 7, 10 and 3, 4, 5, 7, 8 indicates having wea k willingness to take risks at the Innovative It Firm and the Shariatpur Electri c Enterprise. Average weak willingness to take risk = 5+5 2 =50% We have found that 50% of weak willingness to take risks motivates to become an entrepreneur in the challenging business world.

Findings The findings indicated that to the extent that the political stability and rule of laws should be enforced, infrastructure facilities should be improved, and co rruptions should be rooted out, education and training are imparted, and financi al help are provided, new and energetic entrepreneurs Recommendation Establish an information center at the district level to facilitate has business ideas and information on markets, design, buyers, sources of finance and traini ng. The central bank should determine a target for each bank to provide loans for ne w entrepreneur and form a monitoring team to monitor the implementation. A number of institutions, including NGOs, should increase the amount of credit s o that new entrepreneurs can develop themselves as entrepreneurs especially to b usiness starters. Banks can organize training on entrepreneurship development, which will enable t hem to find more believable clients.

The entrepreneurs of Innovative IT Firm & Shariatpur Electric enterprise should f ollow the strong need for independence and should increase strong willingness to take risk. Conclusion This study implies that a positive environment through encouragement and positiv e reinforcement of a stable socio-political climate for a sound market economy a nd specialized schools of entrepreneurs will foster a positive climate for the d evelopment of entrepreneurship in Bangladesh. The Government should take various steps for creating new entrepreneur for economic development of Bangladesh. Reference http://westaction.org/definitions/def_entrepreneurship http://www.sciencedirect.com/science/article/pii/B9780123750389001898 http: http://www.rieti.go.jp/en/papers/research-html//www.sciencedirect.com/scie nce/article/pii/S0883902699000397 http://www.jstor.org/action/showPublisher?publisherCode=apsa. hthttp://en.wikipedia.org/wiki/Entrepreneurship http://www.businessdictionary.com/definition/entrepreneurship.html http:/ http://www.alleydog.com/glossary/definition.php?term=Internal%20Locus%20o f%20Control /www.quickmba.com/entre/definition/ Appendix: All appendixes has been shown the appendix file.