Entrepreneurial human capital, role models, and fear of failure and start-up perception of feasibility among adults in Vietnam

Tran Van Trang,Quang Hung Do,Minh Huan Luong

doi:10.1177/1847979019873269

Abstract

Although various studies have been conducted to examine the role of human capital, role models, and fear of failure in the entrepreneurial process, the results reveal inconsistencies. Moreover, the relationship between them and their role in explaining the perceived feasibility of starting a new business still has no clear answer. Based on the adult survey data of the Global Entrepreneurship Monitor in Vietnam 2017/2018, the study find that having entrepreneurial knowledge, skills, and experience and knowing an entrepreneur are positively associated with the individual’s perception of feasibility to start a new business; whereas, the fear of failure do not have a direct significant effect on it. However, the influence of fear of failure on perception of starting a firm is strongly negative effect as moderating by educational attainment. Individuals with personal entrepreneurial connection and gaining entrepreneurship knowledge, skill, and experience have reduced the fear of business failure. The contribution of this study is twofold. First, it provides empirical evidence on the relationship between human capital, role models, fear of failure, and entrepreneurial feasibility. Second, it contributes to the understanding of entrepreneurship environment in Vietnam, a communist country still existing today.

Highlights

Studies on entrepreneurship have gained much attention since policies and measures cannot be formulated and implemented effectively without fully understanding the factors affecting entrepreneurship.[1]
H4b: The negative effect of fear of failure on individuals’ perceived feasibility to starting a business is moderated by educational attainment
Results show that knowing an entrepreneur is positively and significantly associated with perception of feasibility to start a business, and entrepreneurial knowledge, skills, and experience on an individual’s perception are the major determining factors of starting a venture in Vietnam

Summary

Introduction

Studies on entrepreneurship have gained much attention since policies and measures cannot be formulated and implemented effectively without fully understanding the factors affecting entrepreneurship.[1] Entrepreneurship research may be conducted on different groups, including real entrepreneurs (individuals who have their own business and still living), nascent entrepreneurs (people engaged in the process of starting new ventures), or the general population of non-entrepreneur. Their perceptions about starting a new business may play an important role on the path to becoming a future entrepreneur, because entrepreneurial perception might contribute to forming the intention[2,3,4] or affect entrepreneurial behavior and decision.[5]. Prior studies have emphasized entrepreneurship as a career choice[6] and demographic and economic factors such as education, age, wealth, and work situation are important drivers of entrepreneurial behavior. A set of variables describing personal perceptions including role models, confidence in one’s skills and ability, risk

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Conclusion