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What makes people want to become self-employed?: Applying the theory of planned behavior
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.ORCID iD: 0000-0003-3827-0295
2009 (English)In: Advances in Management, ISSN 0974-2611, E-ISSN 2278-4551, Vol. 2, no 11, p. 9-18Article in journal (Refereed) Published
Abstract [en]

The world economy currently seems to be failing, and the effects are being felt around the globe. There are many upcoming news about rising unemployment, major corporations cutting jobs and workers who can't seem to find work. The current economic climate makes many people wary of spending money, which can be bad news for those who make a living through the buying of others. Many things, however, are not simply going to go away because the economy is rough. Some buyers and employers may feel reticent when it comes to hiring, and this could create trouble for those who survive by self employment. But in every economic crisis, some markets remain successful - and those who live through self employment are generally pretty good about applying their skills where needed. Increasing self-employment is an objective frequently seen on government agenda, as small businesses are often seen as a remedy for unemployment and pivotal for economies to grow8. Despite the distinct value of self-employment to the economy as a whole as well as to the individual starting her own, in the Nordic countries, self-employment rates are far lower than one would expect. This has led to extensive research efforts on the impact of economic and other external factors on self-employment rates, in order to crystallize out key drivers to self-employment in an economy, related to which specific government programs and initiatives can be launched. This paper contributes by specifying and testing the impact of internal factors that determine an individual's decision on whether to become self employed. Understanding the internal drivers of individuals' intentions will help to further trace the impact of external initiatives on individual behavior. This paper applies the Theory of Planned Behavior (TPB), on the most well established models explaining social behavior, to test the impact of attitude, social pressures and perceived control among Swedish men and women. Data is collected from over 400 Swedish university students with various backgrounds. As is suggested in TPB, the results provide that the strongest determinant of individuals' intention to become self-employed is their attitude towards being self employed, which stems from behavioral beliefs about having one's own business. The paper further finds that, along with the attitude, men are mainly influenced by their perceptions of control, whereas women are affected by their perceived pressures in their social surrounding. The paper provides several implications for governments and some avenues for future research.

Place, publisher, year, edition, pages
2009. Vol. 2, no 11, p. 9-18
National Category
Other Engineering and Technologies not elsewhere specified Business Administration
Research subject
Industrial Design; Industrial Marketing
Identifiers
URN: urn:nbn:se:ltu:diva-14608Local ID: e0202e90-c3a1-11de-b769-000ea68e967bOAI: oai:DiVA.org:ltu-14608DiVA, id: diva2:987581
Note

Validerad; 2009; 20091028 (pejogh)

Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-03-09Bibliographically approved

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http://www.managein.org/manage/manage/main_management.htm

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Oghazi, PejvakJung, Marie-LouisePeighambari, KavehTretten, Phillip

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