What makes people want to become self-employed ? Applying the Theory of Planned Behavior

Oghazi Pejvak (), Jung Marie-Louise, Peighambari Kaveh and Tretten Phillip
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Oghazi Pejvak: Luleå University of Technology, University campus, Porsön, SE-971 87 Luleå, SWEDEN

Advances In Management, 2009, vol. 2, issue 11

Abstract: The world economy currently seems to be failing and the effects are being felt around the globe. There are many upcoming news about rising unemploy- ment, 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. 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. Theory of Planned Behavior (TPB) has been applied 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 are collected from over 400 Swedish university students with various backgrounds. The results provide that the strongest determinant of individuals’ intention to become self-employed is their attitude towards being self employed. 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.

Date: 2009

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