DREAMERS, PLANNERS AND DOERS : FROM POTENTIAL TO ACTUAL ENTREPRENEURSHIP IN SINGAPORE

Abstract

Global entrepreneurship statistics show that high level of entrepreneurial intention does not always correspond to high rate of venture formation. The phenomenon is not only common in other countries, but also in Singapore. Using a large sample obtained from the population surveys conducted in Singapore by the Global Entrepreneurship Monitor, this paper investigates why some individuals dream of becoming entrepreneurs but do not plan, plan but do not act and finally act but do not succeed. Following recent literature in economics and entrepreneurship, this paper considers starting a company as a multi-stage process beginning from the first stage of intention formation and ending with the final stage of long term venture success. The paper links the decision at each stage of the entrepreneurial process to socio-economic and perceptual factors. The results show that socio-economic and perceptual factors are significantly associated with the propensity for entrepreneurship, but the relationship differs according to the stages of the entrepreneurial process. In addition, the results indicate that individuals must go through the stages of dreaming, planning and doing before succeeding. The key finding is that individuals must dream of becoming entrepreneurs when they are young. Only then will they plan and start a company when they grow older. They must also dream along with other entrepreneurs, as perceptual factors like knowing other entrepreneurs are important. Overall, the results highlight that entrepreneurship is a process that is influenced by different factors at different stages.