What Prevent Them Shifting? Perceived Barriers of Employee Transition to Entrepreneurship: A Concept Paper

Abstract

Individual motivation to become an entrepreneur is found to be preceded by two sources namely; the parental entrepreneurial background and organizational employment. There is ample literature to support the parental influence on entrepreneurial initiatives (Dunn & Holtz-Eakin, 2000; Rachmawan, Lizar, & Mangundjaya, 2015; Antawati, 2017) and particularly for the paternal influence towards self-employment (Carroll & Mosakowski, 1987; Uusitalo, 2001; Tennakoon & Lasanthika, 2019; Wijerathna, & Thisera, 2018). In the first case, entrepreneurs are considered “family products”. The role model of entrepreneurial parents guides children to become entrepreneurs (Bandura, 1986; Krumboltz, Michael, & Jones, 1976). The parental role modeling positively influences the children’s intentions to choose entrepreneurship over other career options (Scherer, Adams, Carley, & Wiebe, 1989). Alternatively, entrepreneurs do originate from existing organizations. The majority of entrepreneurs are former employees of recognized organizations or else the “organization products” (Freeman, 1986). Recognition of entrepreneurial opportunities is often facilitated by the organizations as the employees are exposed to the market. Employment offers the mean of gaining technical know-how and developing the business network (Stuart & Sorenson, 2003). The goodwill and brand image of the former organization aid them to easily establish their own brands those found to be enjoying greater survival and growth (Burton, Sorenson, & Beckman, 2002; Christensen & Bower, 1996).