Current State of Entrepreneurship
Current State of Entrepreneurship
Based on the believes of the importance in the society, and in the development of a country regarding the contribution in employment creation, and economic development, entrepreneurship has got much attention in decisionmakers and scholars. Diverse standpoint has been taken by researchers, and many theories have been developed. Most of the theories have focused on finding factors that may justify entrepreneurship. Some of the most influential theory have taken economic orientation, others in social orientation, others psychosocial orientation. Thus, as identified by Kwabena (2011) theories like (1) Economic entrepreneurship theory, (2) Psychological entrepreneurship theory (3) Sociological entrepreneurship theory, (4) Anthropological entrepreneurship theory (5) Opportunity-Based entrepreneurship theory, and (6) Resource-Based entrepreneurship theory have been developed by scholars to explain the field of entrepreneurship. As it can be depicted these theories are linked on economics, psychology, sociology, anthropology, and management. These theories inspired many researches in the field of entrepreneurship all over the world. The recent orientation taken by researchers was trying to understand the factors underlying entrepreneurial intentions. This orientation was inspired by the theory of planned behavior. As in the original theory of reasoned action, a central element in the theory of planned behavior is the intention of the individual to perform a given behavior. Intentions are meant to capture the motivational variables affecting a behavior; they are indicators of how hard people are willing to try, how much dedication they expect to practice in order to execute the behavior. The greater the intention to participate in a behavior, the greater the probability of its success (Ajzen, 1991). For example, based on planned behavior theory, Heydari, Xiaohu and Shang (2020) investigated the relationships between the factors that influence entrepreneurial intention in Polish universities.
Other researchers focused on understanding the effect on entrepreneurship of educating students on entrepreneurial/ management courses. Swarupa and Goyal (2020), for example, examined whether and how entrepreneurship education in 25 countries affected the student community's intentions. Fini, Grimaldi, Marzocchi and Sobrero (2009) began to investigate the impact of individual characteristics and contextual variables on the formation intention theory of planned actions. Their findings showed that psychological attributes, individual skills and environmental factors dictated entrepreneurial intent. A comprehensive structural equation model incorporating both psychological and behavioral perspectives was proposed and tested by Ferreira, Raposo, Rodrigues and Maria (2012) to determine what variables affect the entrepreneurial intent of secondary students. These results showed that the need for success, self-confidence and personal attitude had a positive effect on entrepreneurial intent, while perceived behavioral regulation was influenced by subjective expectations and personal attitude. Peter and Akinyede (2018) examined the effect on the perception of environmental factors such as access to finance, socio-cultural, economic factors, government policies, infrastructure services, and access to sufficient growth resources with regard to environmental factors. Correlation and regression showed that in Ago-Iwoye, Nigeria, all environmental variables listed have a significant relationship with the growth of entrepreneurship. A research was conducted by Habib and Ramananda (2014) to find out the significant economic and environmental factors that may contribute to entrepreneurial success. He concluded that access to the latest technologies, power supply, competitive pricing, access to distribution networks and access to industry organizations contribute to entrepreneurial success. Using descriptive and inferential statistics, including route analysis, Mojarrad and Afani (2016) concluded that social networks, basic information and driving forces have a major impact on entrepreneurship.
Pihie and Bagheri (2013) conclude that the entrepreneurial self-efficacy of students had the most important and positive effect on their intention to become an entrepreneur, while the relationship between entrepreneurial self-efficacy and entrepreneurial entrepreneurship of students was partially mediated by self-regulation. These authors considered the self-efficacy of beliefs in the ability of individuals to effectively perform the tasks needed to start and maintain a new company and their perceptions of the effects of developing a new venture. An important link between entrepreneurship education and entrepreneurial intention was discovered by Jacob (2015), and self-efficacy was also found to partially mediate entrepreneurship education and entrepreneurial intention in Uganda. Fou, Saraih, et al. (2018). Their results were consistent with the theory of Bandura Social Learning that states that self-efficacy can affect the entrepreneurial intent of engineering students in public institutions. Waridad, Wahyu and Imam (2018) concluded that the family environment with interest in student entrepreneurship is mutually influential; the social environment and interest of student entrepreneurs, the family environment and self-efficacy of students, the social environment with student self-efficacy and self-efficacy.
Based on the outgoing hypotheses, the study of the orientations taken from previous research was carried out. Nevertheless, the creation of modern communication and information technology, such as computers, the world wide web, the internet, smartphones, etc., poses a challenge to current theories. In addition, the emergence of new phenomena such as social entrepreneurship, instability of the macro-economic climate, globalization, render current theories obsolete. The theory of neo liberalism promoting the hypothesis that economic growth is directly linked to free trade and that in order to achieve desired economic growth, countries should adopt policies of globalization, privatization, and liberalization (Addison, 2000) is outdated. Emerging countries, such as Ethiopia, Turkmenistan, Rwanda, Mongolia, Uzbekistan, China, Tajikistan, Bangladesh, Laos, have the highest gross domestic growth in 2020 thanks to government intervention to promote eco-friendly growth. The previous study highlights the difficulty of knowing the concept of entrepreneurship. The definition covers a diversified dimension that does not cover all its dimensions in any theory.
These ideas, however, are limited because they remain vacuous with regard to the content and role played by shareholders in ensuring sustainable entrepreneurship. In addition, the theories do not explain to what degree the theory's substance leads to entrepreneurship. For example, no theory has addressed either how entrepreneurs experience failure and success during their entrepreneurial activities or how they learn to improve themselves from their own failures and the failures of other people. In addition, economic theory has regarded the environment as static without taking into account the fact that, in the short run, the dynamic nature of today's world economic systems may influence entrepreneurial activities. Inflation, debt, housing bubbles, exchange rates, unemployment rates, etc. COVID-19, etc. are having negative or positive impact on entrepreneurship in the immediate future. The theories did not examine to what degree entrepreneurship is threatened by technological change. Theories do not explain how the entrepreneurship process will possibly be influenced by future developments. From the current theory, little is also understood how leadership of entrepreneurial ventures is influenced and has an effect on entrepreneurship. There was no mention in the current hypotheses of a new phenomenon emerging in female entrepreneurship. The hypotheses on how individuals from various generations have been affected, and the consequences for the growth of entrepreneurship, say nothing. Theories did not take into account the rise of a modern social entrepreneurship movement and how this movement 's evolution is incompatible with neoliberal paradigms.
The position played by various parties such as universities, governments, chambers of commerce, business incubators, experienced entrepreneurs in promoting and supporting new entrepreneurs is not exactly established by other limitations of the current theories. Training is expected to have ample entrepreneurship-related skills and business management to improve self-efficacy. The content to be created as a module for future entrepreneurs was, however, not specified by any theory. The government should provide incentives and create a positive business climate. The role of government in the hypothesis of the approach to capitalism, however, is very limited to defense, stability, justice, adequate taxation and public infrastructure. Governments also led to dynamizing all economic sectors during financial crises, highlighting the theory 's weaknesses. The Chambers of Commerce bring together entrepreneurs from various sectors of the economy: banks, the arts, manufacturing, services, general trade, hotels, insurance, etc. These institutions' participation will assist graduates to obtain first job experience that would improve their self-efficacy. It can also help graduates get a business network, which can increase the aim of entrepreneurship. The roe of these bodies, however, is not studied by any theory. Future studies may be carried out to formulate fresh hypotheses on the basis of these limitations. For example, they should examine the role of mediation or moderation of certain variables such as the market climate as assessed by business indicators (starting a business, dealing with building permits, obtaining electricity, registering property, obtaining credit, protecting minority investors, paying taxes, cross-border trade, enforcing contracts, and resolving insolvency). The moderation of the macro-economic climate in the relationship between self-efficacy and sustainability of entrepreneurship can also be studied. It is possible to analyze the role of moderation or mediation of known technologies in the relationship between self-efficacy and sustainable entrepreneurship. It can also be analyzed to determine the quality of entrepreneurial courses produced by schools and universities. The effect of uncertain macro-economic environments on sustainable entrepreneurship can also be anal. As variations in wealth, culture, education and level of development can have a major effect on the perceived opportunities, the inference may lack generalization. For example, the more one is practiced, the more a new opportunity or combination can be detected. The disparity in technology creation can also be skewed by the findings of certain entrepreneurial purpose theory. Study carried out in less developed countries can also lead to the enrichment of established literature. Area like Africa that has raw material in abundance, but most of African countries remaining in underdeveloped countries should get much attention. Research should focus for instance on such contrast of having natural resources, and remaining poor. The research should find why entrepreneurship is not able to contribute in the development of the continent. Same research should be conducted in all countries that are lagging in the development process. The findings would contribute in the achievement of sustainable development goals on ending poverty and reducing differences among countries. Inclusive entrepreneurship should get attention. Focusing on female entrepreneurship as women have been confined in home works and low added value activities.