Factors that drive entrepreneurship

• The key factors of entrepreneurship are financial-numerical training and self-confidence
• Training in both factors is essential to ensure that the entrepreneurial ecosystem grows and is more competent

Entrepreneurship is not an easy task and requires a long-term approach. There are elements that can be limiting, but it is also true that others are a real impulse and act as decision factors to undertake. Today we are going to talk about the latter.

The study

A study of the UOC, published in the prestigious scientific journal The Journal of Entrepreneurship, has concluded that the main motivational factors for entrepreneurial people are the financial and numerical knowledge, as well as the trust in the personal abilities.

With these data, the need for increase and improve training in financial and numerical knowledge, along with working on self-confidence.

Most of the people surveyed were aware that they lacked solid financial-numerical training or the ability to correctly assess risks, a conclusion that coincides with studies published by the Organization for Economic Cooperation and Development (OECD).

other factors

Others important factors to make the decision to start a business are:

• The perception of opportunities.
• A positive social context and close role models.
• The correct risk assessment.

In this sense, gender or the fact of being unemployed have not been relevant factors for entrepreneurship, according to the study.

Subjective and objective aspects

The study on the factors that favor entrepreneurship includes:

• subjective aspects
• objective aspects

Subjectively, there is the personal perception of entrepreneurial capacity. On the other hand, the objective aspects are financial knowledge, numerical skills and the ability to assess risks.

Consequently, the combination of these factors in the analysis exposes the existence of three types of entrepreneurs, with differentiated characteristics:

• People with higher financial skills and good self-confidence tended to be more socially motivated.
• Those who had a good perception of their abilities, but with low financial and numerical knowledge, found more motivation in identifying opportunities.
• Those with low levels of subjective skills and knowledge created businesses by having close role models, such as family or friends.

Conclusion, Entrepreneurs do not only move for economic reasons, but their motivations are very varied and include aspects such as the lack of job opportunities, dissatisfaction with the current job, the search for independence or the desire to cover some social need.