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    Understanding Motivations of Female Students to Become Entrepreneurs:

    A Qualitative Approach

    Sabrina O. Sihombing

    [email protected]

    Universitas Pelitas Harapan

    Abstract

    Becoming an entrepreneur is one aim of many students after completing the

    study. This is because entrepreneurships offer many benefits such as

    owning business and a possibility of having significant financial rewardsthan working for others. Students can also be considered as the primary

    resource of future entrepreneurs. Several studies have examined students

    motivation to become an entrepreneur. However, little research has

    conducted to examine female students motivation to become entrepreneur.It is important to understand female students motivation to become

    entrepreneur. This is because gender inequality still exists especially indeveloping countries. Therefore, the purpose of this research is to enhance

    the understanding motivations of female students to become entrepreneurs.

    In depth interviews with five female students were conducted to exploretheir motivations to become an entrepreneur. The result shows that financial

    independence (pull motivation) is main motivation for female students to

    become entrepreneur. However, another important motivation is flexibility

    (push motivation). This results shows entrepreneur motivations areintertwined. Limitations as well as future research are discussed.

    Key words: entrepreneur, students, qualitative approach

    If I give a man a fish, then I feed for him a day.If I teach a man to fish, then I feed him for life.

    If I teach a man to fish responsibly, then not only

    do I feed him, but the rest of his village as well,

    for generations to come.

    (Kao, 1993)

    Background to research problem

    Becoming an entrepreneur is one aim of many students after completing the study. This is

    because entrepreneurships offer many benefits such as owning business and a possibility ofhaving significant financial rewards than working for others. Students can also be

    considered as the primary resource of future entrepreneurs.

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    mailto:[email protected]:[email protected]
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    Several studies have examined students motivation to become an entrepreneur (for

    examples: Segal et al., 2005; Linan and Chen, 2006; Engle et al., 2008; Izquierdo and

    Buelens, 2008; Shook and Bratianu, 2008; Van Gelderen et al., 2008; El Harbi et al., 2009).However, little research has conducted to examine female students motivation to become

    entrepreneur. It is important to understand female students motivation to become

    entrepreneur. This is because gender inequality still exists especially in developingcountries. Therefore, the objective of this research is to understand motivations of female

    students to become entrepreneurs. Thus, the main research question for this research is

    what motivates female students to become entrepreneurs? In order to back-up theresearch question, there be six more detailed questions were applied as follows:

    1. What motivates female students to become entrepreneurs?

    2. How interested are you in becoming an entrepreneur?3. What type of support do female students receive from their family to become

    entrepreneurs?

    4. How much have female students already prepared to become entrepreneurs?5. Are there any gender differences toward being an entrepreneur?6. How soon are you going to become an entrepreneur?

    This paper is organized as follows. First, justifications of the research are presented.Then, the literature review on about entrepreneur and entrepreneur motivations and

    intentions are provided. The next section is research method followed by results of this

    research. Finally, this paper provides conclusions of this research.

    Justifications to the research

    This research can be justified on these two grounds as follows: (1) the need of research on

    intention of female students to become entrepreneurs and (2) potential contributions of theresearch for theory and practice.

    The need of research on intention of female students to become entrepreneurs. Many

    researches have been conducted to understand entrepreneurs. For example, some researchshows the characteristics of entrepreneurs (Nair and Pandey. 2006) and motivation to

    become an entrepreneur (Manolova et al., 2008; Buang and Yusof, 2006; Segal et al.,

    2005). According to Baron (1999, cited by Cohoon et al., 2010), entrepreneurs have astereotypically masculine image. However, there is significant increasing of women

    entrepreneurs nowadays. Therefore, examining the gender differences toward being

    entrepreneur is important because a comment which stated An entrepreneur is an

    entrepreneur is entrepreneur should been revised (Dunn and Liang, 2006). This is becausestudies have shown that there are gender differences in many aspects in understanding

    entrepreneurship (for example: Walker and Webster, 2006; Manolova et al., 2008;

    Kirkwood, 2009). There were several research focused in women entrepreneur (forexample: Lee, 1997; Orhan and Scott, 2001; Lim et al., 2003; Sarri and Trihopoulou, 2004;

    Dunn and Liang, 2006; Erogul and McCohan, 2008; Raman et al., 2008). Furthermore,

    there were also research focused in student perception and intention to be entrepreneurs(for examples: Segal et al., 2005; Linan and Chen, 2006; Engle et al., 2008; Izquierdo and

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    Buelens, 2008; Shook and Bratianu, 2008; Van Gelderen et al., 2008; El Harbi et al., 2009).

    An understanding on students perception or intention to be entrepreneurs is crucial. This is

    because students are future entrepreneurs. However, as far as researcher understanding,there is no or limited research to understand motivation of female students to become

    entrepreneurs.

    Potential contributions for theory and practice. From a theoretical point of view, the

    results of this study give contributions to the understanding of female students intention to

    become entrepreneurs. Since not many studies on female students and entrepeneurship, it ishoped that the result of this research give contribution to understanding about women

    entrepreneurship. From a practical point of view, this research gives insight to university

    about female students intention to become entrepreneurs.

    Literature review

    Entrepreneur definitions

    Entrepreneur has its origin in the French word entreprende which means to undertake(Kao et al., 2002). In their book on entrepreneurism, Kao et al. (2002, p.32) also provides

    several key definitions of entrepreneur such as a self self-employed person with uncertainreturn (Cantillon, 1730), as a person in need of high achievement and autonomy

    (McClelland, 1961), as a person who is able to identify opportunities and develop small

    enterprises (Penrose, 1959), and as a creative innovator (Schumpeter, 1910). Kao et al.(2002, p.42) also provide their definition of entrepreneur as a person who undertakes a

    wealth-creating and value-adding process, through developing ideas, assembling resources

    and making things happen.

    Entrepreneurial motivation

    The success of entrepreneurs is dependent on personal motivation (Urban et al., 2008;

    Shane et al. 2003). There are several theories that can explain entrepreneurial motivation,for instance: push and pull theories. The push theory explains that individuals are becoming

    entrepreneurs because of negative external factors such as difficulty finding jobs, job

    dissatisfaction, inflexible work hour, and insufficient salary. Push factors often havenegative connotation (Kirkwoord, 2009). On the other hand, the pull theory states that

    individuals are becoming entrepreneurs because of several attractiveness such as having

    greater financial rewards, self-fulfillment, independent, and other desirable outcomes

    (Gilad and Levine, 1983 cited by Segal et al., 2005).Several researches show motivation differences between men and women. For instance,

    Walker and Webster (2006) showed that there were significant differences between man

    and women motivations to run their business. Flexible hours, wanting to work from homeand the need to balance work and family are main motivation for women entrepreneurs.

    The result of that study indicated that women still doing the double shift of having to cope

    with family and work (Walker and Webster, 2006, p. 128). Another research conducted astudy conducted Manolova et al. (2008) pointed out that men are motivated by self-

    realization, financial success, and autonomy. On the other hand, women are motivated by

    all of out desired outcomes (self-realization, status, financial success, and autonomy).

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    Studies on motivation of woman entrepreneurs show a mix results as follows. Lee

    (1997) pointed out that women entrepreneurs have a higher need for achievement and

    dominance than women employees. A study conducted by Lim et al. (2003) shows severalmotivations of becoming entrepreneur such as to achieve full potential, to have autonomy

    and flexibility, economy reasons, and to become successful person. Another research

    conducted by Dunn and Liang (2006) shows that making money is the most importantreason to be entrepreneur. In a similar vein with Dunn and Liang, a research conducted by

    Cohoon et al. (2010) also shows that the primary motivation of women entrepreneur is

    desire to build wealth. Other motivations are the wish to capitalize on business ideas, theappeal of startup culture, a desire to won company, and not working for someone else. On

    the other hand, a research conducted by Raman et al. (2008) pointed out that work core is

    the most important motivational factor in women deciding to be entrepreneurs. A study

    conducted by Orhan and Scott (2001) shows several categories of woman motivations tobecome entrepreneur: (1) dynastic compliance, (2) no other choice, (3) entrepreneurship by

    chance, (4) natural succession, (5) forced entrepreneurship, (6) informed entrepreneur, and

    (7) pure entrepreneur. Another study conducted by Das (2000, cited by Tambunan, 2009)

    provided women motivations to become entrepreneurs in Asian countries as shown inTable 1 below.

    Table 1. Motivations of women entrepreneurs in Asian countries

    Category Motivations

    Chance entrepreneurs

    Forced entrepreneurs

    Created or pulled entrepreneurs

    to keep busy

    hobby / special interestfamily/spouse had business

    financial/needed the money

    control over time/flexibilitychallenge, try something on ones own

    show others I could do it.

    to be independent

    self satisfaction

    example to childrenemployment to others/ do something worthwhile

    Source: Das (2000, cited by Tambunan, 2009).

    Entrepreneurial intention

    Entrepreneurial intention is considered as the first step in becoming as entrepreneur (Lee

    and Wong, cited by Linan and Chen, 2006). Intention is defined as instructions people

    give to themselves to behave in certain ways (Triandis, 1983 cited by Bagozzi and Yi,1989). Therefore, it can be stated that intentions represent people plans to perform their

    behavior. Intention is also as the immediate determinant of behavior (Bagozzi and Yi,

    1988).Intention can be explained by using the theory of planned behavior (Ajzen, 1988).

    According to the theory that individuals action is influenced by behavioral intention.

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    Behavioral intention, in return, is a function of three factors: attitude toward the behavior,

    subjective norm, and perceived behavioral control (Figure 1). Attitude is defined as

    peoples overall definition of their performing behavior. Subjective norms refer to peoples perception of social pressure to perform the behavior. Perceived behavioral control

    measures how well a person can execute the behavior (Ajzen, 1991).

    Figure 1. Theory of planned behavior

    Source: Ajzen (1988,p.133)

    Research method

    Qualitative approach. Qualitative approach was applied in this research. This is because

    qualitative studies are tools used in understanding and describing the world of humanexperience (Myers, 2000). Qualitative research aimed at finding out what things exist

    [rather] than determine[ing] how many such things there are (Walker, 1983, cited by

    McKenzie and Crouch, 2006, p.487). Interviewing is one of the most frequently applied in

    qualitative approach (McKenzie and Crouch, 2006).

    Case study. Case study was chosen as a qualitative research method in this research. Case

    is a term that refers to an event, an individual or even a unit of analysis. Furthermore, it isan empirical inquiry that investigates a contemporary phenomenon within its real life

    context using multiple sources of evidence (Yin, 1989, cited by Noor, 2008). In-depthinterviews were applied in this research. Interviews were carried out on five participants.The purpose of the interview is to obtain the participants opinions regarding the intention

    to become entrepreneurs. This research applied the semi-structured interviews. This is

    because the semi-structured interview offers sufficient flexibility to approach differentparticipants differently while still covering the same areas of data collection (Noor, 2008).

    The questions were prepared in advanced based on the theme being investigated, that is,

    intention to become entrepreneur.

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    Attitudes toward

    performing the

    behavior

    Subjective norms

    Perceived

    behavioral control

    Behavioral

    IntentionBehavior

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    This research applied six questions to understand female students motivation to become

    entrepreneurs. Three questions were developed by Chen et al. (1998). Those questions are:

    (1) how interested are you in becoming an entrepreneur, (2) how much have you already prepared to become an entrepreneur, and (3) how soon are you going to become an

    entrepreneur. Other questions were developed by the researcher (Table 2).

    Table 2. Research questions

    Research questions Source Research focus

    1. What motivates female

    students to becomeentrepreneurs?

    2. How interested are you in

    becoming anentrepreneur?

    3. What type of support do

    female students receivefrom their family to

    become entrepreneurs?

    4. How much have femalestudents already prepared

    to become entrepreneurs?

    4.1. Are there any barriers

    that you will have when becoming an

    entrepreneur?

    5. Are there any gender

    differences toward beingan entrepreneur?

    5.1. Do you perceive being a woman is

    advantageous?

    6. How soon are yougoing to become an

    entrepreneur?

    Researcher

    Chen et al. (1988)

    Researcher

    Chen et al. (1988)

    Researcher

    Researcher

    Researcher

    Chen et al. (1988)

    Motivation

    Attitude

    Subjective norm

    Perceived behavioral control

    Perceived behavioral control

    Intention

    All interviews were conducted in Bahasa Indonesia as the national language. Each

    respondent also was given a questionnaire which contains similar questions wheninterviewed. The main reason is to provide more media that can be used by participants to

    express their opinions. Each interview was then audio-taped and transcribed by the

    interviewer as soon as possible as suggested by Osborne and Freyberg (1985, cited byTalib et al. 2009). Furthermore, as suggested by Talib et al. (2009), immediate transcription

    can improve the technique of asking questions for the next interview.

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    Sample selection. The selection of participants was done through a purposive sampling.

    There are several criteria: (1) female students, (2) active students in their last semester, and

    (3) not yet have working experience whether they have business or work with others. Therewere five female students as participants in this research as samples sizes depend on the

    resources and time available (Mack et al., 2005).

    Analysis data for case study. All data were analyzed through several stages. First, making a

    code of the data. Then, explorations of data within each code. The next step was

    summarizing data. Finally, a reflection on data within each category.

    Findings

    Motivation to become entrepreneurs. All female students in this research have samemain motivation in becoming as entrepreneurs. All participants pointed out that financial

    independence as their main motivation as stated by one female (named Jenny here to

    protect her identity):

    My main motivation to become an entrepreneur is to be financial independencewithout depending with other people. Furthermore, I dont like to be tied-up with

    company policy. I want to be free with my own policy.

    Another female student (named Audrey here to protect her identity) also stated:

    I want to become an entrepreneur because I want to be financial independence. Idont like working with others. I want to produce money while still sleeping like

    my father.

    Table 3 below shows other motivations to become entrepreneur. Flexibility is the

    second main motivation for almost participants. Flexibility means that they do notwant to work in daily routine hours, they do not want to be tied-up with company

    policy, and they do not want to have superiors (bosses). Other motivations are: self-

    development and self-achievement.

    Table 3. Participants motivations to become entrepreneurs

    Motivations n = 5 %

    Financial

    independenceFlexibility

    AchievementSelf-development

    5 100%

    4 80%

    2 40%2 40%

    Attitude toward becoming entrepreneurs. Almost all participants stated that to be an

    entrepreneur is very interested. Table 4 below shows participants interest toward specific

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    area that they will involved when they become entrepreneurs. Jenny stated that to be an

    entrepreneur is very interested as she shares her opinion:

    To be an entrepreneur is very interesting because I can develop myself and gain

    more experience, independent, higher financial reward higher. If I work with other

    people, I have to obey the company policy and limited career development. Ibelieve that to become an entrepreneur will take high risks, but I believe it will

    worth with something I will get in return.

    However, only one participant stated that she is just interested to become an

    entrepreneur as one female (named Ellen here to protect her identity) stated:

    I do interest to become an entrepreneur. But I do also think about how to make it cometrue of my dream. I do not know whether it is difficult or easy to develop my business.

    Table 4. Business interestParticipants Business interest

    JennyMaia

    Audrey

    Nancy

    Ellen

    Boutique (fashion)Product packaging

    Plastics

    Swim wear store

    Bar Restaurant

    Subjective norms (supports from family) to become entrepreneurs. All participantsstated that their family (that is, mother and father) support them to become entrepreneurs.

    Interestingly, all supports from their mother and father are mix as shown in Table 5 below.Table 5 shows that three out of five participants fathers do not give full support to themto become entrepreneur. Jenny and Audrey have similar answer for that fact as Jenny

    shared the following:

    My mother supports me to become an entrepreneur. However, my father wants me towork with other before becoming an entrepreneur in order to understand how

    organization system is work, to become more discipline, and to develop my character.

    Table 5. Supports from family

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    Jenny

    F M

    Maia

    F M

    Audrey

    F M

    Nancy

    F M

    Ellen

    F M

    SW FS FS na SW FS SW FS FS SW

    Legend:

    F : father

    M : mother

    na : not available (her mother was passed away)

    SW : should work with other people before becoming an entrepreneur

    FS : full support

    Perceived behavioral control to become entrepreneurs. There were two questions

    regarding how well participants can become entrepreneurs: (1) how much have female

    students already prepared to become entrepreneurs? and (2) are there any genderdifferences toward being an entrepreneur?.

    All participants stated that they have prepared several things to become entrepreneurs.For example, Maia stated that she has prepared the business location. Furthermore, she has

    also prepared several machines for her business. Not only that, she is now trying to findpotential customers for her business in packaging. Another respondent (named Nancy

    here to protect her identity) also has developed a product sample for her business. She has

    looking product materials and potential employees for the business. Not only that, shementioned that she has been looking for store location. Three other participants stated that

    they are preparing themselves by finding information regarding their future business.

    Participants were also asked whether they will face barriers to become entrepreneurs.All participants agreed that experience is their main fear to become entrepreneurs. Two

    other participants pointed out that their age can be perceived as a barrier to involve in

    entrepreneurship as Maia share her opinion:

    I know that I have no experience now to become an entrepreneur. Moreover, my

    age that still young that others may underestimate me.

    There were mix answers for a question regarding gender differences toward being

    entrepreneurs. Three participants stated that there still gender differences to become

    entrepreneurs as pointed out by Ellen as she shares her opinion:

    In my opinion there are still gender differences to become entrepreneurs.

    Sometimes people only see women entrepreneurs with their half-eyes (an

    Indonesian idiom means being underestimate).

    On the other hand, Audrey stated her opinion as follows:

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    I believe there are no gender differences influencing my intention to become

    entrepreneur. The most important things to become an entrepreneur are ability

    and intention.

    Participants were asked whether being women is advantageous for them. All

    participants agreed that it is advantageous for them being a woman. However, they havedifferent reasons for that question (Table 6).

    Table 6. Advantageous reasons for being a woman

    Reasons n = 5 %

    Understand the market well

    Attractive appeal

    DetailEasy to get sympathy

    Multi-talented (can do

    several things in one time)

    2 40%

    3 60%

    1 20%1 20%

    1 20%

    Intention to become entrepreneurs. A question about how soon participants will becomeentrepreneur? Three participants stated that will become entrepreneurs as soon as they

    graduate from university. Only two other participants stated that though they will need

    more time after graduation to become entrepreneurs as stated by Ellen:

    I will become an entrepreneur next two years. I have to finish my study now. Even

    though I can graduate soon, I still have to prepare many things to achieve my

    dream to become an entrepreneur. I have to make sure that my idea to have a barrestaurant is supported with things such as a good concept, location, and capital.

    Discussion

    This research aims to understand motivations of female students to become entrepreneurs.

    This research shows participants as future entrepreneurs have multiple motivation to

    become entrepreneur. The findings show that financial independent as the main motivation

    for all participants. This kind motivation is classified as pull motivation (Gilad andLevine, 1983 cited by Segal et al., 2005). However, almost all participants also stated that

    flexibility as their motivation to become entrepreneurs. According to Kirkwood (2009),

    flexibility is classified as push motivation. This result may indicate that participantsaware their next step in life that they will have a family. Consequences as a woman and

    have a family are to be multitask person and can balance family life and career. Therefore,

    they desire for greater work-life flexibility. In short, findings of this research support previous research that point outs women entrepreneurs motivations appear to be

    intertwined (Kirkwood, 2009).

    The present paper also shows that almost all participants stated that to be anentrepreneur is very interested. Each had different interest in specific areas they will

    involve later. They interest in entrepreneurship are also supported by their families. This

    paper also shows that more father than mother encourage their daughter to work with other

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    people first before entering entrepreneurship. This result may indicate that experience is

    crucial as their father may have experiences in business.

    All participants stated that they have prepared several things to achieve their aim tobecome entrepreneurs. They also aware barriers that they will face in the future such as

    experience and their young ages. They also stated that it is advantageous for being a

    woman as women have more attractiveness appeal than men.

    Conclusions

    The main finding of this research is that financial independence as the main motivation forfemale students to become entrepreneurs. This type motivation can be classified as pull

    motivation. However, the findings also show that most participants pointed out another

    main motivation, that is, flexibility. This kind of motivation, on the other hand, is classified

    as push motivation which often has negative connotations (Kirkwood, 2009).This research has limitations. First, this research only focused on the motivations of

    female student to become entrepreneur. Though understanding gender differences are

    important but comparative studies are needed to gain more and holistic understanding on

    entrepreneur phenomena. Second, this research applied a qualitative approach inunderstanding the phenomena. A triangulation method with mixed-methods research can

    contribute to the rich understanding of entrepreneur as a social phenomenon.

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