Research on some factors affecting entrepreneurial motivation of female SME owners in the Northwestern subregion

iness is someone who not only recognizes business opportunities but also own individual personality traits. According to this point of view, those who possess some certain personal characteristics and personalities can have the business license such as risk-free personality, need for creative achievement, risk-taking, self-control behavior, outrageous optimism...This view is that people who do not have the qualities of business owners never become entrepreneurs. Individuals with different identities have EM, even different pull and push motivations (Munir and Sandhu, 2016). Studies based on this point of view suggest that only people with entrepreneurial qualities and personalities can become entrepreneurs and there are different types of personality traits of entrepreneurs to distinguish entrepreneurs from other groups. 8 3.1.2. Institutional theory Institutional theory is developed and used by researchers in many different ways, in which the two common approaches are institutional economics and institutional theory from a sociological perspective. Institutions are devided into two types: formal institutions and informal institutions. The formal institutions include the legal system, policy, and regulation ... The informal institutions include customs, traditions, and cultural norms that are recognized and followed by everyone in the community. It greatly affects human behavior (Nguyen Van Thang, 2015). Therefore, environmental factors can be deduced and explained by the institutional theory because they are the perceptions and judgments of individuals and entrepreneurs towards the environment. The theory related to institution is proposed by North (1990). North (1990) says that the human-created institutions make interaction between people. These institutions as the form of social norms define the roles and functions of community members or in the form of legislation that sets out legal rules. The institutional analysis that takes into account a variety of factors and policy - socio-political levels, making it the optimal tool for assessing the performance of female entrepreneurs. Institutions contribute to the formation of social structures in which organizations are operated through policies, thus they fix economic and legal policies. In societies where clear legal policies, material resources, knowledge for the formation of businesses are fully provided, businesses will have great motivation to be formed and developed (Nguyen and partner, 2009). The theory of cultural tendencies (Hofstede, 1980), value theory (Schwartz et al., 2001) can explain the influence of the difference of "national culture" on the relationships mentioned in the model of Factors affecting startup intentions. The core of culture is the values, and the value of each individual in the society is expressed through his or her views, thoughts, beliefs and behaviors (Hofstede et al., 2010) and this influences their thinking. think, EM of businessman. 3.2. Research model and hypothesis 3.2.1. Research model of the thesis Through the study of Theoretical basis together with the overview results from related researches, 10 factors are proposed into the research model. They are divided into 2 groups of factors: groups of individual factors including Demand into Achievement, Self- capacity, Risk-taking and Optimism and environmental factors including Social Network, Entrepreneur's social status, Access to capital, Opinions around people, awareness Barriers, Business model (Table 3.1). 9 Table 3.1: Summary of impacts of individual and environmental factors on EM in previous studies proposed in the research model Factors affecting entrepreneurial motivation S i m o n e t a l L ü t h j e a n d F r a n k e K r i s t i a n s e n a n d I n d a r t i T a o r m i n a a n d L a o N a s u r d i n e t a l F e r e i d o u n i e t a l K e a t e t a l B u i H u y n h T u a n D u y e t a l S e s e n D i n i s e t a l M a l e b a n a Y u s h u a i e t a l C h e n g a n d S o o P h a n A n h T u a n d N g u y e n T h a n h S o n M e k o n n i n P h a n A n h T u a n d G i a n g T h i C a m T i e n H a s s a n a n d M i d i h H a s s a n a n d A n a s H a s s a n a n d Y i n g N g u y e n Q u o c N g h i v e t a l L e T h i T r a n g D a i a n d N g u y e n T h i P h u o n g A n h K a b i r e t a l N g u y e n H a i Q u a n g a n d C a o N g u y e n T r u n g C u o n g N g u y e n P h u o n g M a i e t a l N g u y e n T h a o N g u y e n 1 9 9 9 2 0 0 3 2 0 0 4 2 0 0 7 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 1 2 0 1 3 2 0 1 3 2 0 1 4 2 0 1 4 2 0 1 5 2 0 1 5 2 0 1 5 2 0 1 5 2 0 1 6 2 0 1 6 2 0 1 6 2 0 1 6 2 0 1 6 2 0 1 7 2 0 1 7 2 0 1 8 2 0 1 8 Personal factors Demand for success o + + o + + o + + Individual ability + + + + + o + o + Optimism o + + Risks Taking o + o - + + + Environmental factors Social network + + o Social status of entrepreneurs o o + Access to capital - + + + - - Comments of people around + + o + + + o + + + Perceived barrier - - o Businessman model + o + The symbol (+): positive effect; (-): negative impact; (o): no impact (Source: The Author's compilation) 3.2.2. Development of research hypothesis The author uses 10 pairs of hypothesis showing the expected impact of the above 10 factors on EM of female SME owners in the northwest subregion, in which, except for the perceived Barrier factor with a negative impact, all other factors have a positive impact. CHAPTER 4: RESEARCH METHODS 4.1. Qualitative research 4.1.1. Qualitative research objectives The objective of the qualitative research is (1) to determine the most appropriate factors influencing the EM of female SME owners in the context of the northwest 10 subregion, (2) to adjust the scales used in the pre-quantification studies for preliminary investigations, to assess the validity of indicators, (3) discoveries also contribute to the interpretation of quantitative results and used as a basis for supporting recommendations. 4.1.2. Content of qualitative research Group discussions were conducted with 03 lecturers in economics and business administration to form the initial model. Then, the author used the techniques of in-depth interviewing experts including university lecturers, business managers, bank officials, officials of the Department of Planning and Investment, tax officers, the heads of associations and clubs. The theoretial sampling technique was used, 10 female SME owners in Son La and Dien Bien provinces were selected for in-depth interviews to assess the appropriateness of influencing factors and scales, questionnaire. 4.2. Quantitative research 4.2.1. Quantitative research objectives Quantitative research method aims to: test the scale (2nd and official); sample description statistics about yourself, your family, and describe the EM of the female SME owner; determine the order of the influence of factors and compare the group of individual factors and environmental factors to the EM of female SME owners. 4.2.2. Quantitative research content Through experts’ opinions (in discussions and in-depth interviews), the suummary of development variables in form of coded questions, sources and scales is shown in the following tables: Table 4.3. Entrepreneurial motivation Scale Kind of motivation Question Source Pull motivation For an interesting job Malebana (2014); Choo and Wong (2006); Imitate a woman I admire Malebana (2014); Choo and Wong (2006); Inherit and make some adjustment To challenge yourself Malebana (2014); Choo and Wong (2006) To make more money Malebana (2014); Choo and Wong (2006); Hassan and Midih (2016) To be the owner Malebana (2014); Choo and Wong (2006); Taormina and Lao (2007), Fereidouni et al (2010); Buttner and Moore (1997) Inherit and make some adjustment To take advantage of my creative talents Malebana (2014); Choo and Wong (2006) To take advantage of opportunities from the market Inherit Malebana (2014); Choo and Wong (2006); Hassan and Midih (2016) Push motivation To maintain family traditions Malebana (2014); Choo and Wong (2006) To increase my status / reputation Job demand Balance between work and home life Buttner and Moore (1997) 11 Table 4.4. The Demand for Achievement Scale Items Questions Source Set high goals I like setting myself high goals Phan Anh Tu and Giang Thi Cam Tien (2015); Phan Anh Tu và Nguyen Thanh Son (2015) Show effort at work When I do something I don't just get the job done, I have to do it well Phan Anh Tu and Giang Thi Cam Tien (2015); Phan Anh Tu và Nguyen Thanh Son (2015); Dinis et al (2013) I try to do better than my friends and colleagues Kristiansen and Indarti (2004); Ahmad et al (2016), and making som adjustment I try my best to overcome past achievements Kristiansen and Indarti (2004); Ahmad et al (2016) Requires high- performance jobs I am not interested in a regular job which is not challenging if the job does not give me high performance Phan Anh Tu and Nguyen Thanh Son (2015); Dinis et al (2013) Table 4.5. Scale of Entrepreneurship itself Items Questions Source Deal with any situation with confidence I am confident that when I have problems, I can often find some solutions Inherit Hassan and Midih (2016); Kabir (2017); Neill et al (2017) I can deal with any surprises I come across Achieve business goals confidently I can achieve all of the business goals that I have set for myself Confidently build, manage and develop businesses I can define and build the management team to develop the business Inherit Hassan and Midih (2016) Table 4.6. Scale of Optimism Items Questions Source To life I often expect economic improvements in my life Inherit Simon et al (1999); Wally and Baum (1994) To economy I feel the economy will grow next year To work I feel my performance will improve over the next year 12 Table 4.7. The Risk Acceptance Scale Items Questions Source I am willing to take risks I am willing to take high risks for high profits Phan Anh Tu and Nguyen Thanh Son (2015); Dinis et al (2013); Neill ey al (2017) I like to take risks Phan Anh Tu và Nguyen Thanh Son (2015); Nguyen Thao Nguyen (2018); Neill et al (2017) I take risks when necessary to achieve important goals Nguyen Thao Nguyen (2018); Dinis et al (2013); Neill et al (2017) For a great chance I can take a high risk Nguyen Thao Nguyen (2018); Neill et al (2017) Perception of risk acceptance for businesses To achieve high profits, businesses must accept high risks Table 4.8. Social Network Scale Items Questions Source Role in starting a business Owning a social network is important to starting a business Inherit Taormina and Lao (2007); Hassan and Anas (2016) Role in enterprise development Social networking plays an important role in business development When I need help, I often rely on my existing social networks A strong social network is certainly very important to a business Table 4.9. Scale of Access to Capital Items questions Source From the self (owner) I have the ability to accumulate capital (through spending savings, overtime ...) Nguyen Quoc Nghi et al (2016); Phan Anh Tu và Giang Thi Cam Tien (2015); Yushuai et al (2014) From other individuals and organizations I can borrow money from friends and relatives to do business I can raise capital from other sources (banks, credit funds, ...) I can easily raise funds from usury The author proposed through qualitative research Table 4.10. Scale Model of business woman Questions Source Know other people who are female entrepreneurs I know other female entrepreneurs Inherit Malebana (2014), and making some adjustment Know other successful female entrepreneurs I know successful female entrepreneurs in my community 13 Table 4.11. Scale of Social Position of businesswoman Items Questions Source Admiration The social regime should place much value on female business owners Inherit Begley and Tan (2001); Fereidouni et al (2010); Nasurdin (2009); and making some adjustment High status Running a private company gives a high position to female entrepreneurs in society Inherit Begley and Tan (2001); Fereidouni and et al (2010); and making some adjustment Reputation Starting a private business brings reputation to female entrepreneurs Respect Starting a new business creates respect for female entrepreneurs Table 4.12. Scale of surrounding people's opinion Items Questions Source Relatives My family support the decision to start a business Malebana (2014); Nguyễn Quoc Nghi et al (2016); Phan Anh Tu và Giang Thi Cam Tien (2015); Begley and Tan (2001); Kabir (2017); Liñán and Chen (2009); Nguyen Thao Nguyen (2018) Friends My friends support the decision to start a business Colleagues My colleague support the decision to start a business Inherit Malebana (2014); Liñán and Chen (2009) Table 4.13. The Barrier Scale is perceived Items Questions Source Infrastructure Poor roads and means of transportation Nguyen Thao Nguyen (2018) and expert interview Government regulations Too many unfavorable regulations of the Government for SMEs Nguyen Thao Nguyen (2018); Malebana (2014); and some adjustments The tax structure is complicated and confusing for SMEs Local policies to support women Lack of policies to encourage and support women in starting local businesses Proposed through qualitative research Lack of financial support packages for women SME owners to expand production and business Lack of management skills Lack of human resource management skills Inherit Malebana (2014) Lack of business planning skills Lack of marketing skills Lack of financial management skills The quantitative method is implemented in 2 phases: preliminary quantitative and formal quantitative. The author uses SPSS 22 software to support the data processing. At the preliminary quantitative step, there are two contents performed, that is: Using Cronbach's Alpha coefficient to evaluate the reliability of the scale and test the discovery 14 factor EFA to preliminary assess unidirection, value convergence of the scale, remove unguaranteed Indicator. The minimum sample size is defined as 215. In official quantification, 713 is actually collected and 669 samples are used. The steps include: testing the reliability of the scale, Analysis of discovery factors EFA, correlation and regression and testing the regression model assumptions. 4.3. Overview of the research process Cronbach’s Alpha, EFA Cronbach’s Alpha, EFA Multiple regression (multivariate) Figure 4.1. The research process of the thesis CHAPTER 5: RESEARCH RESULTS 5.1. Indicators after qualitative research The overview of the theory and the qualitative research has build up the 10-factor model. The qualitative research continued being used in group discussions. In-depth interviews with experts have identifed 10 factors affecting EM in accordance with the characteristics of women, female owners of SMEs in the context of the northwest subregion. The thesis simultaneously has inheriedt and developed a scale for 10 factors along with a scale for the dependent variable. Summarizing the results discussions and of in-depth interviews with experts has obtained preliminary questionnaires of 10 factors with 43 indicators and 11 indicators for the dependent variable. activites Tools Result Overview and qualitative research Model and preliminary scales Qualitative research Adjust the model and scale for the 1st time Preliminary investigation (141 female owners of SMEs) Adjust the scale for the second time Official survey (669 female owners of SMEs) Official scale Hypothesis testing Discussion, recommendations 15 5.2. Quantitative research results 5.2.1. Some indicators excluded after preliminary quantitative research The preliminary quantitative results have 03 indicators removed, which are Demand to achieve 2 (due to being considered a "trash" variable), Risk-taking trend 2 and Trend of taking risks 3 (due to load in many factors and difference factor loading <0.3). 5.2.2. Official quantitative research results 5.2.2.1. Descriptive statistics of research samples - The age of the sample from under 35 in starting and operating a business like those over 35. The proportion is relatively equal, but the number of people over 35 is larger. - Kinh ethnic group compared with the total number of ethnic minorities (Thai, Muong, other) accounts for a smaller proportion, consistent with the actual demographics in the subregion. - The number of the female SME owner with more than 2 children accounts for a larger proportion than the rest, consistent with regional customs, especially for ethnic minorities. - The number of female with education level through training (from Intermediate, Vocational and above) accounts for nearly equal proportion to the general education levels and those who do not have education. - Regarding the age at which women start their current business in the northwest subregion, the age group accounts for the most from 36-45 and previous work and business experience accounts for a larger proportion than those who have not worked yet. These results are consistent with the fact that women here start their current businesses later and have more experience as most of them have managed in Business Household, Cooperative, and Cooperative models before starting their own bussiness. - The number of years in which enterprises are operated is the most 1-5 years due to the fact that women-owned SMEs have been established rapidly recently since the Law on SMEs came into effect in 2017. 5.2.2.2. Descriptive results of the EM of female owners of SMEs In general, women and female entrepreneurs in the northwest subregion show a "pull" (DLKD1> DLKD7) motivation higher than "push" (DLKD8> DLKD11) in starting and running a business. 5.2.2.3. The results assess the reliability of the scale and survey data Through Cronbach's Alpha coefficient, the observed variable Social Network 4 is removed (MangLuoi4) and Risk-Acceptance Trend 1 (RuiRo1), Optimism 3 (LacQuan3), Access to Capital 3 (Von3) and People's Opinion around 3 (YKien3) are retained. In the remaining 39 variables, the above scales are reliable for the use in EFA analysis step (table 5.6). 5.2.2.4. Results of factor analysis to explore EFA In the first run, the gunuaranteed variables are eliminated in subsequent EFA runs including Opinion of people surrouding 3, Optimism 3, Risk taking trend 1. 16 In the second run, 2 observed variables: Risk acceptability trend 4, 5 are uploaded in 3 factors and the load difference of each of these factors are <0.3, type Risk acceptability trend 4, Risk acceptability trend 5 is removed from the research model. In the third time, the author has extracted 08 factors. However, 04 items of the scale of Social status of businesswomen have been downloaded along with the remaining 02 observed variables of the scale. The surrounding people's opinion becomes a factor. Combine this scale of 2 factors into one factor named "Social Standards - Standards" including 6 observed variables from Standards1> Standards6. Adjust the research model Figure 5.7. Modified research model 5.2.2.5. Test the distribution format of the data As a result, the distributions of the scales used in this study have the normal form of distribution, meeting the requirements for further analysis. 5.2.2.6. Test the correlation between the variables The author conducted analysis the correlation to examine the relationship between quantitative variables through Pearson's correlation coefficient (r). The correlation coefficients in the table 4.16 show that the relationship between the variables is quite reasonable. Firstly, the correlation between the independent variable and the dependent variable. Except for the variable perceived barrier (RaoCan) with a correlation coefficient (r) bearing the sign (-), which means there is a negative correlation between the barrier and the Optimism Business dynamics of female SME owners Demand for success Capability for entrepreneurs Social Standards Female business model Social network Perceived barrier E n v i r o n m e n t a l f a c t o r s P e r s o n a l f a c t o r s Capital access H1+ H3+ H5+ H6+ H7+ H8+ H10- H2+ Control variables: Ethnicity; age; Education; marriage; Number of children 17 registered EM of the female SME owner, this relationship is opposite. All the remaining coefficients have a (+) sign that indicates the variables Social Standards (ChaunMuc), Entrepreneurial Self-Capability (NangLuc), Access to Capital (Von), Demand for Success (ThanhDat), Social network (MangLuoi), Optimism (LacQuan), and Model female entrepreneur (HinhMau), that is, they are positively correlated, in the same direction with the EM of female SME owners. At the same time, all 08 coefficients of the independent variable with this dependent variable have Sig. <0.05 (high level of statistical significance). This result is completely consistent with the expected relationship in the research hypothesisof the thesis. Secondly, the correlation between the independent variables. Most of the Sig. 0.05 between independent variables. It is necesssary to consider the Pearson coefficient to consider the problem of multicollinearity. | r | are all quite far from 1, so multicollinearity probably won't happen. However, to be more cautious in regression, it is still necessary to check the multi-collinearity problem (consider adding VIF coefficient when regression). 5.2.2.7. The results of multivariate regression of factors affecting EM of female owners of SMEs Model 1, when tesing the control variables including Age (DoTuoi), Ethnicity (DanToc), Marital status (HonNhan), Education level (HocVan), and Number of children (SoCon), the results is that all these control variables have p> 0.05, they are all not statistically significant. The model has no statistical significance, adjusted R2 coefficient equal to 0.003, F of model 1.386, p> 0.05, factors in the model show that there is 0.3% variable of EM of female owners of SMEs. R2 is changed to 0.010 (1% variable). Model 2, when putting environmental factors including Awareness Barriers (RaoCan), Social Standards (ChuanMuc), Access to Capital (Von), Social Networking (MangLuoi), Model of Female Entrepreneurs (HinhMau) into testing, the result is that all control variables and factors Social Network (MangLuoi) have p> 0.05, they are not statistically significant. The other variables of the group of environmental factors are statistically significant (p <0.001). The model is statistically significant, the adjusted R2 coefficient is 0.561, F of the model 86,338 p <0.001, the factors in the model explain 56.1% of the variables of EM of female owners of SMEs. When the factors of the environment are included, the change of R2 is 0.557 (up 55.7%). Model 3, when the remaining 3 groups of individual factors are tested, the result is that all control variables are not statistically significant. The model is statistically significant (adjusted R2 coefficient is 0.627, F of model 87,482, p <0.001), the factors in the model explain 62.7% of variation in EM of female owners of SMEs. Except for only one variable 18 with opposite relation (RaoCan - Awareness barrier), five of the remaining 8 independent variables are positively related and 06 variables are statistically significant with the EM of female SME owners including ThanhDat - Demand for success (β = .0,271, p <0.001), LacQuan - Optimism (β = 0.060, p <0.05), Von - Access to capital (β = 0.373, p <0.001), HinhMau - female entrepreneurs mod