Non-Motivational Influences on Entrepreneurs

Non-motivational influences or the dark side is used with reference to the stress producing tendency of each of the issues discussed below.

Opportunity Cost
According to a study by Amit et al., (2009) entrepreneurs are more likely to undertake entrepreneurial activities when their opportunity costs are lower. That is paid workers who chose to become entrepreneurs do so because they have less to lose (i.e. lower opportunity costs) by leaving their paid work.


Stocks of Financial Capital:
This refers to the amount of money an individual is able to accumulate or stock. Evans and Leighton (1989) found that the hazard into self-employment is constant in age. And older workers tend to have the propensity to become entrepreneurs because they would have had time to build up the capital needed to start a business unlike younger workers.

Social Ties to Investors
The importance of social embeddeding in the creation of a new business has been appreciated by scholars of entrepreneurship. Aldrich and Zimmer (1986) note that entrepreneurs are highly social actors and they actively embed themselves in social contexts. For instance, in the course of their entrepreneurship research, they found that immigrant entrepreneurs in many cases formed ethnic networks to share capital or business in order to overcome hostility in the host countries. Thus, given these conditions, an individual will be propelled to become an entrepreneur.


Career Experience
This is closely related to unsatisfactory work experience. If an individual is not happy with his/her job and has acquired a great deal of experience on the job and possesses entrepreneurial abilities, then there is the tendency for the person to become an entrepreneur.


Life-Path Circumstances
This refers to individual circumstances within the life-path of individuals that propel them to become entrepreneurs. These are factors such as:


Unsatisfactory Work Environment
When an individual is dissatisfied with his work environment or finds the work environment unconducive, then in rebellion, he will quit the job and seek alternative employment. However, if the individual in question is an entrepreneur, then he is likely going to start his own business.


Negative Displacement
This arises when unforeseen circumstances in an individual’s life-path causes the person to make major changes in lifestyle. This could be an accident, the loss of dear ones or sponsors etc. When such occurrences happen, the individual is forced to undergo a drastic change in the lifestyle and as such may become an entrepreneur.


Career Transition
This situation arises when an individual is between one career-related activity and another. For instance, when an individual who was initially a copy typist goes to Secretarial School and obtains a certificate, then there is a career transition which can necessitate the creation of a new business.


Positive Pull Influences
This refers to centers of influence within the society. That is, individuals whom people look up to as mentors encourage a person to become an entrepreneur.


Background Characteristics
This has to do with factors such as: childhood, family environment, education, age and work history. It is believed that position in the family, i.e. whether first born, last born, only child, upbringing, educational level and age influence the propensity of the individual to become an entrepreneur. For instance, an issue of debate among scholars is whether entrepreneurs tend to be only child or first born child of a family. Other scholars argue that individuals are more likely to become entrepreneurs when they are between the ages of 25 and 40 years, while some other scholars contend that individuals are more likely to become entrepreneurs when they are between the ages of 22 and 55 years. Another group of scholars disagree with these positions by stating that individuals could become entrepreneurs even before the age of 22 years or even after the age of 55years (Unilag GST