The motivations for starting a business differ across countries and may depend on such factors income levels, skills and aspirations and employment opportunities. In environments where work is scarce, business owners are more likely to be motivated by the need to create income and employment for themselves as opposed to independence motives (Benzing, Chu and Kara, 2009). Kuratko, Hornsby and Naffziger (1997) found that business owners were motivated by the need for autonomy and independence but also for family security. With business owners, the need to increase their income and to provide employment opportunities for themselves, and their family members (Benzing, Chu and Callanan, 2005) is a strong motivator where social welfare supports programs are lacking.
Entrepreneurial motives and to some extent the facilitating factors that influence the creation of small businesses, are often evaluated in the context of the labour market. The attractiveness of starting a small business increases when it is difficult to find employment (Mayes and Moir 1990). There are also “pull” factors such as the desire to be self employed and independent and “push” factors such as redundancy or early retirement which lead people to start their own business (Gray, 1990; Krueger et al, 2000, Segal et al, 2005). An Individual’s access to resources and opportunities as well as relevant skills and knowledge, which can be obtained through education and experience contribute to new venture creation (Wiklund and Shepherd, 2003, p 1922). The business venture allows operators to gain personal independence and develop their own ideas (Douglas and Shepherd, 2000).
An individual’s decision to start a business is affected by the economic context, the characteristics of the individual’s life and career, and the individual’s personal disposition (Reynolds, 1991). Individual characteristics, personality and visions interact with significant environmental factor and events resulting in decisions about new venture creation (Greenberger and Sexton, 1988). Gartner (1985) argues that new venture creation is the process of the interaction of the environment, the individual, the business and the entrepreneurial behaviour (entrepreneurial process).