ENTREPRENEURIAL MOTIVATION IN A LEAST DEVELOPED COUNTRY: PUSH FACTORS AND PULL FACTORS AMONG MSEs IN UGANDA

Abstract

The objective of this study is to explore entrepreneurial motivation in a least developed country (LDC), which can be divided into push factors and pull factors, without a priori separation between those which are necessity-driven and those which are opportunity-driven. This study shows that the premise "For people who start their own business in an LDC, push factors are more important than pull factors" can be rejected. In contrast to the findings from prior studies on entrepreneurship in LDCs, this study shows that push factors and pull factors are not mutually exclusive. In addition, this study shows that pull factors are even more important than push factors, and that therefore push factors only play a minor role for entrepreneurs. The overall implications are that motivation is a more combined, and nuanced construct, and that the Western concept of entrepreneurial motivation and method of measuring entrepreneurial motivation, are globally applicable.

Motivations of sustainable entrepreneurship and their impact of enterprise performance in Gauteng Province, South Africa

“…The study, based on a survey of 106 entrepreneurs in Kampala, performed t ‐test analysis of the mean difference between the different categories of motivation factors (push and pull). The results showed that, contrary to most findings in entrepreneurial motivation studies that entrepreneurial behaviour is mainly driven by push factors, in Uganda the entrepreneurs exhibited both pull and push factors, with the former found to be more important (Eijdenberg & Masurel, ). However, this study was descriptive and did not conduct multivariate analysis of the effects of the entrepreneurial motivations and performance of enterprises.…”

“…Another empirical study of entrepreneurial motivation in a developing country was conducted in Uganda, exploring the push and pull factors that drives entrepreneurial behaviour of medium and small enterprises (Eijdenberg & Masurel, ). The study, based on a survey of 106 entrepreneurs in Kampala, performed t ‐test analysis of the mean difference between the different categories of motivation factors (push and pull).…”

Gender, entrepreneurial characteristics, and success: Evidence from Ethiopia

“…As noted earlier, there are also those who are endowed with better skills and resources who start new ventures in search of greater opportunity (Dechant & Al Lamky, ). This demonstrates that both pull and push factors are important drivers of entrepreneurship in Africa and other emerging regions (Eljdenberg & Masurel, ). Thus,Hypothesis Women and men entrepreneurs in Ethiopia are motivated by different factors to start their own business .…”

Entrepreneurial Leadership, Performance, and Sustainability of Micro-Enterprises in Malaysia

“…As for Malaysia, which reflects an emerging economy, micro-enterprises that account for 75% of the total number of SMEs employ approximately 1.3 million individuals throughout the nation, hence signifying its essential function in national development [6,7]. Micro or small enterprises differ vastly from the larger conglomerates, as MEs are characterized by one-person-operated, poorly managed, prone to be impermanent, frequently less productive, often informal, and undercapitalized [8] business ventures that have economic activities outside formal institutional limitations, but within informal institutional borders. In addition, micro-enterprises fulfil the demand of the large communal groups by engaging low-paid employees as waged workers, which seems to be extensively popular among low-income and underprivileged communities, thus emerging as a powerful instrument to combat poverty as well as to empower the poor economically [6,9].…”