Research Managemnt - Gem – Global Entrepreneurship Monitor

1.0        BACKGROUND OF STUDY

Nowadays, there are more people starting up their own business. According to GEM – Global Entrepreneurship Monitor, the rate of individual that attributes in GEM economies in 2014 is 43.4% in perceived opportunities, 38.4% in perceived capabilities, and 11.6% in entrepreneurial intentions.  

Our cultural have been influenced by the social, political and economic background which will creates a long lasting impact to people. Although after years of service, it is still possible to witnessed people not lasting in the workplace, business scandals and also jobs being downsized. To avoid this, society is leading towards opening up their owned business, as an entrepreneur. Entrepreneur can be defines as one who creates a new venture, whether in a start-up context or in an established organization such as private, public or non-profit organization (Hoy & Sharma, 2010). Entrepreneur are distinguished because they apply an innovative concept either it is success or not.

There are few benefits we could get from entrepreneurs. One of it is, when economic facing a declining trend, starting up a business by citizen in the country could support the economic recovery. Based on the latest statistic reported by Department of Statistic Malaysia (2010), the population of kota Kinabalu is around 160,632 residents. Furthermore, unemployment rate in September 2014 is reported by 2.7% which lower 0.4% compare to September 2013 which are 3.1%. This is because there is more people start to self-employed which in the same time decrease the unemployment rate. In this situation, it can be seen that starting up an own business probably would be a good idea for the people who is jobless. Due to the market condition, our group had designed a questionnaire to know the reason that influence people to starting up a business.

2.0        PROBLEM STATEMENT

According to our title of research, we had state some problem statement, which were:

1. How unemployment affect self-employed

           In Malaysia, the unemployment rate is decreasing year by year. However, there are still people out there that are unemployed. People are unemployed due to few reasons. One of it is that people are more self-centred and independent nowadays. This personality makes them hard to follow the rules that fix in a company. Besides, characteristic such as self-importance, self-esteem, and narcissism also have an effect on employment preference. To not force ourselves to do what we do not like, they are more and more people starting up their own business, as an entrepreneur.

1. How profitability affect self-employed

               Almost all people finding a job to get money. For those who are working in a company, their salary is fixed. Those who want to earn more than what they having now, they might have an idea that starting up their own business. They idea will come to their mind because they want to earn more money. The more successful your firm is, the higher the profit you could get from it.  

1.  How self-satisfaction affect self-employed

Self-satisfaction is incorporate with the workers that do not satisfy with the working environment, the salary of the workers, communication, policies, promotion opportunity and so on. Those factors will leads the workers cannot perform well in their working field and it will cause them considering about to change work or to consider to being the self-employed because if they are unsatisfied with the job thus, they will starting to thinking to being self-employed to ensure the self-satisfaction.

4.         How family background affect self-employed.

    Some of the people have their family business from generation to other generation. Hence, after they finished studying, they will work in their family business and most of them due to family business, they have less opportunity to work with other company and they will prefer to self-employed because there are a job is ready for them.

3.0        OBJECTIVES

    Based on the research objectives, we want to know that the how the factors will bring the affecting or effecting outcome to the people. Moreover, we want to know more specifically or deeply such as the percentages about those affecting towards the people and leads them to being self-employed. Thus, the following research objectives have been identified:

1. To investigate the factors affecting people to become self-employed
2. To examine whether unemployment affect people to become self-employed.
3. To determine whether profitability affect people to become self-employed.
4. To examine whether self-satisfaction affect people to become self-employed.
5. To determine whether family background affect people to become self-employed.

4.0        SIGNIFICANCE

     The important of our research is to decrease the employment rate in the country. The unemployment rate was rapidly rising from years to years thus, if many people to being self-employed, it will decrease the unemployment rate. When the unemployment rate was decreasing, the quality of life will rise and it will decrease the development of the country. Moreover, it will encourage people to become independent. If the people is being self-employed, they need to know what the their company’s operation and they less likely to rely somebody to help them to operate the company, they must do it by themselves, it will encourages them to be more independent rather than rely to someone else.

5.0        LITERATURE REVIEW

     Becoming an employee or entrepreneur? There is a notable difference between these two workers. Employees are commonly known as resource-oriented, unlike entrepreneurs who are opportunity-oriented. Not all people are cut out to be an entrepreneur. In order to be a successful entrepreneur various specific skills are needed, without a well planned preparation before involving themselves with entrepreneurial it will likely result in a high risk failure (Carrasco, 1999; Pfeiffer & Reize, 2000; Adersson & Wadensjo, 2007).  Similarly, successful entrepreneurs are good leaders (Cutting and Kouzmin, 2000), who have clear mission, purpose and values (Thompson, 1999) and willing to be shared and sold to others.

Self-employed or starting up a new business have been increasing recently. This is due to the benefits that could get from becoming entrepreneur. According to Parker and Johnson (1996) and Ashcroft and Love (1996), they have the same thought that new firms could create new employment chance. Audretsch (2007) claims that new firms are associated in innovative activity which able to creates knowledge and the growth of economic. There is a ‘push’ hypothesis explain that when the level of unemployment rise, it lessen the prospects to find paid employment; this results in the return that get from self-employed will become more favourable and pushing people into starting up their own business (Storey,1982; Storey and Johnson,1987). Hughes (2006) also stated that the main key that motivates people to become self-employed is the independence or freedom.