Motivational Factors Affecting Entrepreneurial Decision: A Comparison between Malaysian Women Entrepreneurs and Women Non Entrepreneurs Communications of the IBIMA

This paper examines the motivational factors that could possibly lead women to become entrepreneurs. A comparison of these motivational factors is done between women entrepreneurs and women non-entrepreneurs. The study is based on 225 women entrepreneurs, engaging in the manufacturing, trading and services sectors in Small and Medium Industries in Malaysia. Nonentrepreneurs consist of women working in various administrative departments. Motivation factors are classified into economic core, work core, social core, individual and entrepreneurial core. Descriptive analysis revealed some very important motivation factors. A discussion on the demographical profile of women entrepreneurs is also provided. Introduction The number of women involved in entrepreneurial activity is increasing steadily over the years. One study conducted in southeast region of Asia, which includes Indonesia, Malaysia. Philippines, Singapore and Thailand, found that 18-30 percent of self-employed workers are women (Licuanan, 1992). In a more recent survey, the Global Entrepreneurship Monitor (GEM) in 2004 reported that more than one-third of people involved in entrepreneurial activities are women. This reflects the women’s active role in the economic development of a nation. In Malaysian context, the Companies Commission of Malaysia (CCM, 2003) reported that the registered number of women owned businesses increased from 49 554 units in 2001 to 54,626 in 2002. The Malaysian government has been very concerned to create and develop quality, resilient and successful entrepreneurships which are competitive in all the potential growth sectors of the economy, and to cultivate and enterprising culture among Malaysian women (Nelson & Cengiz, 2005). This again reflects the significance of women entrepreneurs in Malaysian economy. However, despite the important role of women entrepreneurs in creating job opportunities for millions of people, very few information is available on the motivation of these Malaysian women becoming entrepreneurs. In other words, research in women entrepreneurship has been inadequate, more so with reference to developing countries like Malaysia. Hence, this research felt that is crucial to focus on women entrepreneurs in different sectors and also compare them with employed women non-entrepreneurs. Since most of the research on women entrepreneurs had focused on the demographic, family, occupational and educational background as well as any differences between male and female entrepreneurs, this research was designed to identify the motivational differences between women entrepreneurs and women non-entrepreneurs. Therefore, this paper aims to provide reasons on why some women choose to become entrepreneurs by examining the motivational factors. This paper also identifies if these motivational factors differ among women entrepreneurs and women non-entrepreneurs. Some demographical factors are also discussed. Literature Review In general, a business will neither start up nor succeed without motivation (Roberston, Collins, Medeira and Slater, 2003). The possible factors that influence entrepreneurial behavior are the individual, social and environmental factors. The Social Factors model examines the personal background, family background, stage of career, early life experiences and growth environment (Gibb, Kavitha Raman, Anantharaman, R.N.and Sharmila Jayasingam Communications of the IBIMA