A Study On Motivation To Start Up A Business Among Chinese Entrepreneurs

The purpose of this research is to study the viewpoints of Chinese entrepreneurs in the northern region of Peninsular Malaysia, especially from the perspective of motivation factors, which influence their decision to start up a new
business. This study is undertaken to identify the basic demographic variables, business characteristics and major problems that occur during the start up stage and its present business operation among the Chinese entrepreneurs. This study also examines motivation factors that motivate Chinese entrepreneurs to start up a new
business. Model developed by Scheinberg and MacMillan was used. The primary data collected through questionnaires were distributed to 106 Chinese entrepreneurs.
“Statistical Package for the Social Sciences” (SPSS) was used for data analysis: description analysis, factor analysis and MANOVA test were used to explain the
background, motivation and to test the hypothesis.
This study shows that the majority of the Chinese entrepreneurs were male (65.1%), involved in retail service business (52.2%) and are sole sole-founders of the
business (71%). Major problems in their business lies in marketing (82.6%), management (73.9%), finance (63.8), government agencies (52.2%), technological (37.7%) and personal (76.8%). To understand the motivator, factor analysis shows that the status prestige is most important to start up a business, others are personal development, contribution, accommodation, social recognition, communitarianism, tradition, frustration and escapism. Different analysis was used to analyze the male and female entrepreneurs. The results from male entrepreneurs show that status prestige factor is most important. On the other hand, the females show finance and opportunity as important. These results show that there are differences in the male and female entrepreneurs. Hypothesis test found that education level, father’s employment and involvement in founding business are significant with reference to the motivation factors. On the other hand, marital status and working experience show no significance. This shows that education level, father’s employment and involvement in founding business are needed to influence Chinese entrepreneurs to start up a business.
From the above mentioned, it is clear that Chinese entrepreneurs need motivation factors such as: status prestige, personal development and contribution factors to start up a business. In genaral, results of this study would help to gain more understanding on the culture and background of Chinese entrepreneurs. Finally, this study also gives a useful tool to entrepreneurs, business associations, researchers and policy makers to improve entrepreneurial activities in Malaysia.