Abstract
The chapter deals with factors that may affect the willingness to do business. Factors such as business economics knowledge, the desire for freedom and success, the appetite for risk taking and organizational skills are examined as the pillars of potential businesses. Analysis of the factors shows the influence on business establishment. The chapter is based on primary data collection from a recent survey from the Czech Republic and on comparison with international resources focused on aspects which influence the business establishment. The results indicated relationships between above mentioned factors and their effects on business establishment. Implications of these results, as well as directions for future research, are discussed.
TopBackground
Several theories and models have been developed over time to understand the personal and contextual factors that influence the decision to create an enterprise. The scientific literature on intention has dealt with two major lines of research, as follows: cognitive, regarding personal factors, and contextual or environmental factors (Kallas, 2019). Cognitive, regarding personal factors, have been rather extensively investigated (traits and psychological characteristics, demographic factors such as age, gender, marital status, religion, ethnic group, education, family background, socioeconomic status, and professional experience.
Environmental factors and conceptual limitations play a very important role in the business establishment, too. The study of Daouk-Öyry et al. (2018) ensured the leadership commitment and support needed for the business establishment initiative facilitated the creation of linkages between the business plan, external environment and the overall vision of the business.
Key Terms in this Chapter
Appetite for risk taking: A characteristics feature where individuals are confident and have entrepreneurship capabilities, individuals who are more likely to choose an entrepreneurship career, the willingness to undergo some unknowns, which may complicate decision making process.
Personality assumptions: A set of organizational skills, appetite for risk taking, business economics knowledge, desire for freedom and success, to have managerial skills.
Business Plan: A plan describing an outline of where the businessman currently is and proposals of future intentions and directions.
Business economics knowledge: This is knowledge of enterprise in the market economy, knowledge of - enterprise forms, enterprise assets, financial basis of the enterprise, enterprise revenues, enterprise costs, calculations, contribution margin, profit of the enterprise, cash flows in the enterprise
Organizational skills: A mixture of 3 types of skills such as physical issues in organization (logistics issues, productivity, administrative tasks and organization), planning (analysis of issues, making decisions, management of projects, external and internal environment reading, strategic thinking), leadership (teamwork, goal setting, cooperation, creative thinking).
Managerial skills: A set of organizational skills, including business economics knowledge, to be able to solve organizational problems, and to manage time effectively, to have a self-efficacy.
Successful Entrepreneur: An entrepreneur who has a confidence, is able to use creativity, is able to promote his or her business, is a risk-taker, is able to build relationships for growth, decisions are made based on business economics knowledge.