The Analysis of Factors Determine Entrepreneurial Forms - A Choice between Starting an Independent Business and Joining a Franchised System as a Franchisee
Date Issued
2011
Date
2011
Author(s)
Li, Chung-Hao
Abstract
Early entrepreneurial form is primarily through starting up an independent business, as result, many corporations are running independently. As many successful entrepreneurs are becoming franchisors, emergence of plenty of franchise chain systems provides many potential entrepreneurs opportunities of joining franchise systems business as franchisees. In recent years, in Taiwan, we could observe the coexistence of starting up business as independent businesses and chained stores. Accordingly, our research wants to analyze what kind of factors can affect the choice between starting up an independent business and joining a franchised system as franchisees.
In the past, many domestic and foreign scholars dedicated to the study of entrepreneurship, which is trying to depict the common behaviors that entrepreneur exhibit. In this research, we combines diversity theories and empirical results from Gedeon (2010), Shane and Hoy (1996), and try to dig up the behaviors which can corresponded with entrepreneurial form choices, then, discover the attitudinal orientations attribute these behaviors. After reviewing and analyzing past literatures and empirical results, we find out that innovative propensity, risk propensity and autonomy the three attitudinal orientations which could affect the choice between starting up an independent business and join the franchise system as a franchisee. In addition to entrepreneurship theories for explaining entrepreneurial process, social network theory can also apply to entrepreneurial success on how to obtain assistance from the social network members. According to Barley’s (1985) and Hayek’s (1945) interpretations on how social network can help entrepreneurs succeed, social network-diversity of social network and the technical function from social network are two import dimensions of social network. Different degrees of diversity of social network and technical function from social network reflect different levels of entrepreneurial assistance. Therefore, our research suggests that entrepreneurs’ innovation propensity, risk propensity, autonomy, the diversity of social network, and the technical function from social network will influence the selection of different entrepreneurial forms.
In the empirical process, the main researched objects are those who have already made the decision to entrepreneur or will entrepreneur sooner or later. In our empirical result, 250 questionnaires are issued, and 162 questionnaires are valid questionnaires. For the valid samples, we analyze it through samples analysis, reliability analysis and logistics equation analysis to see if the hypothesizes are verified. According to the empirical results, corresponded with hypothesizes, we find out an entrepreneur with higher innovative propensity, higher risk propensity, higher autonomy, the higher diversity of social network, and the much technical function from social network will choose starting up an business independently. In the contrary, an entrepreneur with lower innovative propensity, lower risk propensity, lower autonomy, the lower diversity of social network, and the less technical function from social network will choose joining a franchised system as a franchisee.
Subjects
Entrepreneurial Forms
Starting an Independent Business
Joining a franchised systems as a Franchisee
Type
thesis
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