Pull Push Factor Management

Pull Push Factor Management

  • Submitted By: lucieingram
  • Date Submitted: 01/15/2010 6:59 AM
  • Category: Business
  • Words: 1326
  • Page: 6
  • Views: 1

What are the main influences on the decisions to start one’s own business? Is it useful to distinguish between ‘pull’ and ‘push’ factors?

The entrepreneurship and new business start up have positive impacts on the overall economy, leading to new job creation, increasing productivity and overall prosperity. From the economists’ perspective, the new business start up is likely to occur when super-normal profits are present. They are also aware that in the market where, for example, barriers to entry and economies of scale occur, this is likely to prevent new firms to enter (Burns 2001:70). However,, this concept does not completely explain why an individual decides to start his own business. This concept somehow misses the fact that behind each business start-up is an individual, who is likely to be affected not just with supernormal profits, but also by non-economic factors. (Burns 2001:70).

In this essay I am first going to consider the factor affecting the entrepreneurship then, to consider the pull and push factors affecting the entrepreneurship. I will conclude with summarising the most important points.

The cognitive approach has been developed to try to explain one’s need to become an entrepreneur. Carter 139 suggests that individual characteristics are important precursor. However,, the previous experience will determine as to how one perceives and interprets the situation. Although human nature is complex, there are some traits that could be considered as entrepreneurial. These include the need for achievement, risk taking propensity, locus of control, over-positivism and desire for autonomy (Carter and Jones-Evans 2000:140).

Kets de Vries (1977) suggests that there are also negative characteristics associated with entrepreneurs. He suggests that entrepreneurs are usually anxious people with a disturbed childhood, who are not able to tolerate authority and to work in a team (Storey 1994:63). However,, it has been argued that many...

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