INTRODUCTION
RESEARCH BACKGROUND
In Vietnam, the start-up movement is gaining popularity, particularly among individuals under 40 years old The definition of a start-up has evolved beyond just technology enterprises leveraging online applications for rapid growth While the number of start-ups has surged, this increase does not imply that entrepreneurship has become any easier.
A startup is a newly established organization created by individuals with the goal of developing innovative products and services in uncertain conditions The founder often assumes dual roles as both employer and employee, collaborating with co-founders to generate profits within the legal framework of the business A "startupper" is someone who ventures into entrepreneurship, often involving financial risks to establish and run a business This process is not merely an experimental endeavor; it is a practical pursuit focused on generating income through the sale of products in the market Therefore, the essence of a startup lies in its commitment to launching a business and achieving profitability through the synergy of individuals and organizations.
Establishing a successful startup involves creating a unique product while also developing an effective business model that engages both suppliers and consumers (Blank, 2013) Schumpeter & Backhaus (2003) define a startup as the process of introducing new goods, production methods, markets, or raw materials The primary goal is not only to create a product that customers love but also to foster a collaborative environment that encourages co-production and expands the consumer base Successful startups often begin with an exceptional product that generates organic recommendations from early users; without this, founders risk failure The dual focus on technology and people is crucial, as effective management of both elements is essential for success A startup founder must possess a compelling idea, a dedicated team, and a creative business approach Experience in large enterprises may not translate to startup success, as the latter requires a systematic mindset to enhance competitiveness, attract investors, and manage risks Research by Shikhar (2015) highlights that 75% of startups fail due to common pitfalls made by founders.
Taking a look at some amazing figures about start up:
In response to researcher Moya K Mason, Dr Paul D Reynolds, Director of the Research Institute at the Global Start-up Center, provided insights on global business dynamics He estimates that approximately 137,000 new businesses are launched daily, totaling around 5 million annually However, the firm birth and death rates are nearly equal, suggesting that about 120,000 businesses also cease operations each day worldwide.
According to the Startup Genome Report Extra on Premature Scaling, published in March 2012, approximately 90% of entrepreneurial businesses fail This analysis, which examined over 3,200 high-growth startups, highlights the significant challenges faced by new ventures in achieving sustainable growth.
Vietnam ranks third in Southeast Asia for the number of startups, as highlighted in the "Vietnam Innovation Ecosystem 2019" report by Austrade (the Australian Trade and Investment Commission).
Ninh Thuan province, located in the south-central region of Vietnam, has experienced a vibrant startup movement that has positively impacted its local economy While specific statistics on the number of startups in the province are unavailable, the entrepreneurial spirit in Ninh Thuan reflects a broader trend seen across Vietnam, contributing to economic dynamism and innovation.
1 http://www.moyak.com/papers/business-startups-entrepreneurs.html
2 https://ruskline.ru/airee_s3.amazonaws.com/startupcompass-public/
Despite the creativity and innovation exhibited by young startup members, the number of successful startups in Ninh Thuan remains relatively low compared to other regions worldwide.
In recent years, Ninh Thuan has embraced the global "Start-up" movement, leading to the emergence of successful businesses in its arid landscape Many educated and ambitious young people are returning to their hometown to pursue entrepreneurial ventures and contribute to local development However, despite these efforts, Ninh Thuan's startup ecosystem still lags behind other regions and cities in the country.
This article explores the startup landscape in Ninh Thuan province, detailing the transition from innovative ideas to tangible projects By analyzing relevant data, it highlights the current state of entrepreneurship in the region and aims to inspire aspiring entrepreneurs to make informed decisions about launching their businesses.
RESEARCH OBJECTIVE
In Vietnam, the start-up movement is gaining popularity, particularly among the youth under 40 The definition of a start-up has evolved beyond just technology enterprises leveraging online applications for rapid growth Despite a significant rise in the number of start-ups, the journey of entrepreneurship remains challenging and complex.
The research will primarily take place in Ninh Thuan province, where the researcher, a member of the Ninh Thuan Start-up Association and founder of the Eco-Chi Farm & Homestay, has obtained consent to receive support from local authorities, start-up communities, and advisors.
The researcher, navigating the challenges of launching a start-up in a typical region, aims to evaluate the motivations behind local start-ups to uncover potential benefits for the community.
▪ Provide an overview of the startup business current situation in Ninh Thuan province;
▪ Find out motivations of the young founders in Ninh Thuan province when they launch their start-up and during the time they operate it;
Young entrepreneurs in Ninh Thuan province are driven by various motivations to launch their businesses, which are crucial for fostering a vibrant start-up ecosystem Understanding these motivations can help stakeholders, including the government, NGOs, incubators, and start-up clubs, to better support and nurture local talent By creating tailored programs and resources, these entities can empower young innovators, ultimately contributing to the economic growth and sustainability of Ninh Thuan.
▪ Contribute recommendation/guidelines for to-be entrepreneurs who are planning to found a start-up in Ninh Thuan province, and the relevant government authority.
RESEARCH SCOPE
The physical survey for this dissertation is conducted in Ninh Thuan, a coastal province located in the South Central Coast region of Vietnam It shares borders with Khanh Hoa to the north, Binh Thuan to the south, Lam Dong to the west, and faces the East Sea to the east The study focuses on startups in Ninh Thuan that were newly established and operational between 2017 and 2019, specifically targeting founders who are under 40 years old.
- Scope: The study shall be conducted in Ninh Thuan province from June 2020 toDecember 2020.
LITERATURE REVIEW
General concepts
2.2.1 The concept of business startup
In the Vietnamese context, a "start-up" refers to the initiation of a new business, encompassing a multi-dimensional concept in academic research Entrepreneurship, as defined by Krueger and colleagues (1944), involves launching a new business, while MacMillan (1991) refers to it as "entrepreneurship." Laviolette and her team (2012) emphasize that starting a business equates to self-employment Overall, start-ups are primarily linked to two key meanings and two main research directions.
When considering a career in the labor economy, individuals face the crucial decision of whether to seek employment or to create their own jobs This choice significantly impacts their professional journey and aligns with the broader concept of entrepreneurship.
Self-employment, as defined by Kolvereid (1996), is a significant area of research related to career choice This field highlights that start-ups represent the career decisions of individuals willing to take risks and pursue ownership of their own businesses, often with the intention of hiring others (Linan and Chen, 2006).
The concept of "entrepreneurial spirit" is central to the emergence of start-ups in economics and business administration According to Bird (1988), entrepreneurship involves individuals capitalizing on market opportunities to establish new businesses Similarly, Gupta and Bhawe (2007) describe entrepreneurship as a systematic process that directs the planning and execution of strategies aimed at creating new enterprises.
2.2.2 The concept of an entrepreneur
An entrepreneur is defined as an individual who organizes and manages businesses, particularly those characterized by high risk and uncertainty, according to the Webster Dictionary Bird (1988) emphasizes that entrepreneurs are responsible for starting new businesses, while MacMillan and Katz (1992) highlight their role in generating profit through these ventures Entrepreneurs are essential for building and expanding enterprises, demonstrating a dynamic personality in economic activities, managing technical and organizational changes, and fostering a culture of innovation and continuous learning within their organizations.
Researchers have explored various definitions of intentions, with Bird (1988) describing it as a mental state that focuses a person's attention on a specific goal or means of achievement Tubbs and Ekeberg (1991) further elaborated that intentions represent both the desired goal and the action plan to attain it Central to these definitions is the significance of goals and their influence on intentions Souitaris et al (2007) define startup intentions as the link between an individual's desire to establish a business and the processes that guide the planning and execution of new business ventures (Gupta and Bhawe).
According to Bird (1988) and Shane and Venkataraman (2000), the primary objectives that define the entrepreneurial spirit of startups are the establishment of independent companies and the creation of new value within existing enterprises This perspective highlights the importance of understanding startup intentions, which reflect the conscious actions individuals take to either launch new businesses or enhance value in current organizations.
Foundational theories of startup
2.2.1 The entrepreneurial event theory (SEE)
Shapero and Sokol (1982) posited that the decision to start a new business is influenced by significant life changes and an individual's attitude toward entrepreneurship Their research highlights that a person's choice to launch a venture is contingent upon pivotal life events and their perceived feasibility and desire to embark on a business journey.
Startup intentions emerge when individuals identify feasible opportunities they wish to pursue However, a catalyst is necessary for these intentions to transform into actionable steps toward establishing a new enterprise Catalysts can manifest as negative push factors, such as job loss, divorce, or dissatisfaction with one's current job, or as positive pull factors, like finding a supportive partner or securing financial backing For instance, being fired may drive someone to seek self-employment, while discovering a promising business opportunity can inspire an individual to start a venture, even if they are content in their current role.
Figure 2.1: Entrepreneurial event model - SEE
An individual's life-changing behavior is influenced by pull and push factors, but whether this leads to starting a business or other choices depends on their desire to launch a venture and their perception of its feasibility The desire to start a business reflects an individual's view of entrepreneurship's attractiveness, shaped by cultural influences, family, friends, and colleagues For instance, individuals in cultures that value entrepreneurship are more likely to aspire to become entrepreneurs Meanwhile, the perception of business start-up feasibility relates to an individual's confidence in their ability to execute the necessary actions for success.
2.2.2 Theory of Planned Behavior – TBP
The Theory of Planned Behavior (TPB), developed by Ajzen in 1991, builds upon the Theory of Rational Action (TRA) introduced by Ajzen and Fishbein in 1975 This theory posits that an individual's behavior can be predicted based on their intentions and the perceived control over that behavior TPB emphasizes that behavioral intentions are influenced by attitudes, subjective norms, and perceived behavioral control, providing a comprehensive framework for understanding and predicting human behavior.
Lack of satisfaction at work
Situation fac- tors Excess time
Recommended to cooperate by friends and colleagues clude motivational factors that influence the behavior and are defined as the level of effort people try to do the behavior.
Figure 2.2 Theory of Planned Behavior TPB
Attitude Toward Behavior: shows the level of negative or positive feelings of individuals about startups This feeling is influenced by the psychological weaknesses and situations that exist (Ajzen, 1991)
Subjective norms refer to the perceptions and opinions of those around an individual, reflecting societal pressures that influence personal decision-making These norms play a crucial role in shaping an individual's choices by highlighting how social expectations can impact their actions.
Perceived Behavior encompasses an individual's assessment of the ease or difficulty in executing a particular action This behavior control factor includes two main components: internal factors, which relate to the individual's confidence in their ability to engage in the behavior, and external factors, such as financial resources, time, and environmental conditions According to Ajzen (1991), this behavior control factor has a direct influence on behavioral trends; when individuals accurately perceive their sense of control, it can effectively predict their behaviors.
Related research works
Luthje and Franke's research (2004) on the startup intentions of university students in
A study based on Ajen's intended theory of behavior (1991) revealed that students' entrepreneurial intentions are influenced by both internal factors, such as personal characteristics, and external environmental factors, including market conditions, financial resources, and the educational environment Notably, the findings highlight that external factors, particularly the educational environment, play a crucial role in shaping students' intentions to start a business.
Figure 2.3 Model of entrepreneurship intentions of university students in Canada
A study by Mat et al (2015) examined the factors affecting entrepreneurial intentions among engineering technology students, surveying 554 students at the University of Kuala Lumpur, Malaysia The findings revealed four key factors influencing the intention to pursue entrepreneurship: internal dynamics, external dynamics, cognitive control of behavior, and subjective standards.
Figure 2.3 Model of entrepreneurship intentions of university students in Canada
Start- up intenti ons of studen ts
Start-up intentions of students
A study by Wongnaa and Seyram (2014) examined the factors influencing the entrepreneurial intentions of students at Kumasi Polytechnic University The findings revealed that personality traits, support from family and friends, parental career influences, a conducive educational environment for startups, gender, and financial accessibility significantly positively impacted the students' intentions to start their own businesses.
Figure 2.4 Model of factors influencing the intentions of Kumasi Polytechnic students to busi- ness startup in the future
A study by Phan Anh Tu and Tran Quoc Huy (2017) explored the factors influencing the entrepreneurial motivation of students at Can Tho University of Technology, utilizing Ajzen's Theory of Planned Behavior (1991) The research identified seven key factors that impact students' motivation to pursue entrepreneurship, including personality traits, personal attitudes, individual goals, access to financial resources and government support, entrepreneurship education, awareness of behavioral control, and subjective norms.
Start-up in- tentions of Kumasi Polytech- nic stu- dents
Support from family and friends
Figure 2.5 Business startup motivation model for students of Can Tho University of Technol- ogy
A study conducted by Nguyen Quoc Nghi et al (2015) aimed to identify the factors influencing entrepreneurship motivation among Business Administration students in Can Tho city Data was collected from 400 students, revealing four key factors that impact their entrepreneurial motivation: attitude and passion, willingness to engage in business, subjective standards, and the influence of instructors or mentors Notably, the factors of attitude and passion were found to have the strongest effect on students' motivation to pursue entrepreneurship.
Start-up motivatio n of students
Start-up motivation of students in business administration in Can Tho
Figure 2.6 Business start-up motivation model for students in business administration in Can
(Source: Nguyen Quoc Nghi et al., 2015)
Proposed research model and hypotheses
According to Ajzen (1991), attitude is defined as “An individual's assessment of the results obtained from performing an act,” reflecting a positive or negative judgment regarding a person's intended behavior Research by Nguyen Quoc Nghi et al (2015) found that attitude significantly influences the entrepreneurship motivation of business administration students in Can Tho, indicating that individuals' support or disapproval of entrepreneurial intentions plays a crucial role in their business aspirations This leads to the formulation of the proposed research hypothesis.
H1: Attitude towards entrepreneurship has a positive effect on startup motivation
Access to finance and government support
Instructors and mentors significantly influence individuals' entrepreneurial intentions, as highlighted by Nguyen Quoc Nghi et al (2015) Thandi and Sharma (2004) emphasize that startups can greatly benefit from the knowledge and experience shared by mentors A survey conducted at startup support agencies revealed that startups value mentorship for various reasons: 30% appreciate access to business networks, 28% benefit from learning, 20% feel motivated and inspired, 16% improve their decision-making skills, and 6% receive financial assistance These insights support the proposed research hypothesis on the impact of mentorship in entrepreneurship.
H2: Mentor/Coach has a positive effect on startup motivation
A study by Mat et al (2015) titled "Identifying Factors that Affect Entrepreneurial Intention Among Engineering Technology Students" focused on the entrepreneurial event management platform, SEE The findings revealed that both external and internal motivations significantly influence the entrepreneurial intentions of engineering students Based on these results, the research hypothesis was established.
H3: External Motivation has a positive effect on startup motivation
H4: Internal Motivation has a positive effect on startup motivation
A study by Phan Anh Tu and Tran Quoc Huy (2017) examined the factors influencing the entrepreneurial motivation of students at Can Tho University of Technology, utilizing Ajzen's planned behavior theory (1991) The research identified personal goal setting as a significant factor impacting students' motivation to pursue entrepreneurship.
H5: Personal Goal has a positive effect on startup motivation
Access to finance and government support
Capital is a crucial element in the business process, significantly impacting entrepreneurs as they seek to launch their ventures Access to financial resources is essential for turning ideas into reality; easier access enhances startup opportunities Research by Wongnaa and Seyram (2014) and Phan Anh Tu and Tran Quoc Huy (2017) indicates that financial accessibility positively influences entrepreneurial motivation, leading to the proposed research hypothesis.
H6: Access to finance and government support has a positive effect on startup motivation
RESEARCH METHODOLOGY
METHODS
The thesis uses a combination of methods to solve managerial problem to achieve the re- search purpose Specifically:
Desk research involves gathering information from previous studies to establish a theoretical foundation for understanding the motivation behind starting a business This process includes analyzing and evaluating various research models and factors, which ultimately leads to the development of a theoretical framework, an initial research model, and corresponding research hypotheses.
The researcher employed qualitative methods, including focus group discussions and in-depth interviews, alongside quantitative research involving a sample of 30 enterprises to statistically analyze motivation factors This approach facilitated the development and initial validation of a model before further research on valid samples Additionally, descriptive statistical methods were utilized, incorporating absolute, relative, and average numbers to assess the current opinions of enterprises in Ninh Thuan province regarding influencing factors.
PARTICIPANT AND DATA COLLECTION INSTRUMENT
Approximately 167 start-up founders shall be taken part in the survey Based on offi- cial quantitative research data conducted through the questionnaire survey method to busi- nesses.
DATA ANALYSIS
The author systematically analyzes the survey results by first organizing the responses into an Excel table for each question, allowing for the calculation of percentages for each answer Subsequently, this data is utilized to create a chart that visually presents the participants' responses to each question.
RESULTS AND DISCUSSION
Background of the study
4.1.1 Socio-economic context of Ninh Thuan province a Natural conditions
Ninh Thuan, a coastal province in the South Central Coast of Vietnam, is strategically situated within the triangle formed by the renowned tourist cities of Phan Thiet, Da Lat, and Nha Trang Covering an area of 3,360 km², Ninh Thuan comprises 7 administrative units, including 1 city and 6 districts, making it a key destination for travelers exploring this vibrant region.
Ninh Thuan's topography slopes downward from the Northwest to the Southeast, representing the final stretch of the Truong Son mountain range as it meets the sea The region is predominantly hilly and mountainous, comprising 63.2% of the total area, while meadows make up 14.4%, and coastal plains account for 22.4%.
Ninh Thuan, situated in Vietnam's driest region, features a typical monsoon tropical climate marked by high dryness, strong winds, and significant evaporation The average annual temperature hovers around 27°C, with two distinct seasons: the rainy season from September to November and the dry season from December to August With average annual rainfall ranging from 700 to 800 mm, Ninh Thuan experiences the lowest precipitation levels in the country, coupled with humidity levels of 75-77% and high solar radiation.
Ninh Thuan province boasts a 105 km coastline and three sea ports, making it one of the four largest and most resource-rich fishing grounds in Vietnam This region holds significant potential for tourism development, as well as for the marine and fishing industries, including salt production Notable beaches such as Ninh Chu, Ca Na, and Vinh Hy enhance the province's appeal as a prime destination for both visitors and industry growth.
Ninh Thuan's forests play a crucial role in enhancing socio-economic development and improving the ecological environment, making them a valuable asset for future exploitation The province is home to two national parks that boast a variety of unique and rare animal and plant species.
Ninh Thuan is endowed with a diverse range of natural resources, including various minerals, stones, and sand These minerals hold significant potential as raw materials for the construction industry, particularly in the production of cement, bricks, tiles, and construction stones.
Ninh Thuan boasts significant tourism potential, featuring a wealth of natural attractions such as stunning beaches, rivers, and historic Cham towers This region is rich in ancient Cham cultural heritage, offering visitors a glimpse into its architectural marvels and vibrant cultural festivals.
4.1.2.1 Context of start-up development in Vietnam
The term "startup" has gained significant traction in Vietnam's business community since the early 2000s During the Youth Startup Forum 2020 in Hanoi, Prime Minister Nguyen Xuan Phuc highlighted the growing entrepreneurial spirit in the country, noting a dramatic increase in Google search results for the term "startup" from 13.4 million to over 20.7 million in just two years This surge reflects a widespread enthusiasm for entrepreneurship that transcends age, ethnicity, and religion, emphasizing that the pursuit of business opportunities knows no boundaries.
A study titled “Defining the Entrepreneurial Spirit” by Amway Group and Technische Universitat Munchen revealed that Vietnam excels globally in start-up enthusiasm, with 91% of Vietnamese viewing entrepreneurship as a desirable career path and 95% expressing a positive attitude toward entrepreneurial spirit and ownership This surpasses the global average of 77% Furthermore, 96% of participants felt confident in attracting potential customers, while 76% aspired to start a business for independence and autonomy These statistics underscore the robust growth of Vietnam's entrepreneurial ecosystem.
Startup activity in Vietnam has roots that trace back many years, evolving through three distinct development phases that mirror the fluctuations of the country's economy.
The first wave started since the economic transition to market relations, from 1986 to the
The 2000s marked a significant Renovation period, during which startups emerged across various sectors of production and business, including retail, food services, real estate, and telecommunications This era saw the establishment of numerous private and foreign-invested enterprises, primarily leveraging cheap labor and foreign investment, with innovative ideas and business methods still in their infancy The legal framework for science and technology evolved, promoting autonomy and self-responsibility in research, while facilitating access to international standards Despite the primitive nature of startup activities due to limited capital and restrictive policies from earlier periods, first-generation entrepreneurs capitalized on emerging opportunities, particularly in expansive markets like real estate and banking This dynamic laid the groundwork for a second wave of private sector startups from 2000 to 2014.
The second wave of entrepreneurship, spanning from 2000 to 2014, marked a significant shift as private sector entrepreneurs prioritized legal and policy adjustments to foster a conducive business environment across various economic sectors During this period, there was a strong emphasis on science, technology, and innovation, with entrepreneurs venturing into information technology services, including online dictionaries, video games, and biotech products The rise of the Internet and the invention of smartphones catalyzed growth in diverse fields such as e-commerce, electronic payment gateways, and online booking services Entrepreneurs began to intertwine creativity with daily life and Vietnamese cultural values, evident in cultural tourism, traditional cuisine, and fashion Moreover, there was an increasing focus on the knowledge necessary for entrepreneurial success, particularly in areas like modern business management, supply chain management, and consumer behavior Concurrently, state policies evolved to align with the changing business landscape, supporting the development of innovative ventures.
As social resources diminished compared to the initial stage of innovation, entrepreneurs in Vietnam's second stage sought to create added value by exploring new sectors, particularly in services and information technology The emergence of this new generation of entrepreneurs coincided with the rise of Vietnamese information technology students in 2006, driven by their enthusiasm and eagerness to embrace new technologies amidst the global rapid expansion of the Internet This period marks a significant wave of entrepreneurship in Vietnam.
Since 2014, the third wave of Vietnamese entrepreneurs has surged, focusing on mobility and internationalization in advanced fields like mobile gaming, software development, and web application design A pivotal moment occurred on May 18, 2016, when the Government launched Project No 844/QĐ-TTg, aimed at fostering the national innovative start-up ecosystem through 2025 This initiative seeks to create a supportive environment for the growth of fast-paced enterprises that leverage intellectual property, new technologies, and innovative business models.
As of 2017, Vietnam boasted over 1,500 entrepreneurs, a figure expected to grow rapidly in the coming years, significantly surpassing the entrepreneur density found in countries like China and India The country is home to approximately 40 investment funds, totaling around USD 50 million, with notable names such as IDG Ventures and CyberAgent Ventures Additionally, Vietnam features 21 incubators and 7 organizations dedicated to fostering entrepreneurship, providing essential support in refining ideas and technologies, as well as offering business skills training, mentoring, and investment matching for startups Furthermore, networks of entrepreneurial advisors and coaches have begun to emerge in major cities like Ho Chi Minh City and Hanoi, enhancing the support ecosystem for aspiring entrepreneurs.
QUANTITIATIVE DATA ANALYSIS
Bentler and Chou (1987) established that the minimum number of observations required for a parameter estimate is five Therefore, for a dataset containing 24 items, at least 125 observations are necessary (25 multiplied by 5) With my latest data sample consisting of 167 observations, this criterion is successfully fulfilled.
Figure 4 1 Gender distribution of respondents
The pie chart in Figure 4.1 indicates a significant gender imbalance among survey participants, with men comprising 75% and women only 25% Despite this disparity, the study's results remain unaffected, highlighting that men are generally more motivated and inclined to start a business compared to women.
Figure 4 2Age distribution of respondents
The survey on start-up motivation in Ninh Thuan reveals that a significant majority of respondents, 61.08%, are aged between 23 and 30 years old The second largest group consists of individuals aged 31 to 45, making up 20.96% of the respondents, followed by those aged 18 to 22 at 11.98% The smallest demographic is individuals over 45 years old, representing just 5.99% These findings indicate a growing trend of early entrepreneurship among young people, including those who are still in school.
High school Intermediate College Postgraduate
Figure 4 3 Education level of respondents
The bar chart in Figure 4.3 illustrates the education levels of survey participants, revealing that over 50% hold a college degree Following this, 22% have intermediate education, while only 16% possess postgraduate qualifications, predominantly among individuals aged 31-45 Lastly, 11% of respondents, primarily aged 18-22, reported having only a high school diploma.
This questionnaire is designed to collect information about the amount of time a par- ticipant has surveyed their names for their startup activity Here are the survey results col- lected:
Full time At the same time other jobs
Figure 4 4 Time for startup activities
According to the pie chart in Figure 4.4, 73% of respondents dedicate themselves full-time to their startup activities, indicating a serious commitment to their businesses In contrast, 27% of respondents manage their companies while simultaneously holding another job This data highlights a shift towards a more focused and dedicated approach to startup endeavors, moving away from spontaneous and temporary ideas, as participants increasingly invest their time in developing their ventures.
The questionnaire is designed to investigate the marital status of the survey participants Be- low are the survey results collected:
The data presented in Figure 4.5 reveals that 60% of survey respondents are married, while 40% are single and unmarried This indicates a relatively balanced representation between married individuals and those who are not, suggesting that the difference in participation between these two groups in the research is minimal.
4.2.1.6 Born and/or raised in Ninh Thuan
The survey aimed to assess respondents' inclination and motivation to start a business in familiar environments The results indicate a notable trend towards entrepreneurial endeavors in well-known locations, highlighting the importance of familiarity in business start-up decisions.
Figure 4 6 Born and/or raised in Ninh Thuan
The data presented in pie chart 4.6 indicates that 77% of survey participants were born and raised in Ninh Thuan, while 23% were not native to the area despite starting their businesses there This suggests that a strong familiarity and understanding of the region may enhance the motivation for local startups, encouraging entrepreneurs to initiate their ventures in Ninh Thuan rather than in other locations.
The inquiry regarding the current number of employees in the business aims to gather data for assessing the company's size The survey results have been compiled and analyzed.
Over 10 people Less than 10 people 0%
According to Figure 4.6, 65% of survey respondents indicated that their businesses employ fewer than 10 people, while the remaining 35% reported having more than 10 employees, which includes full-time, part-time, and seasonal workers.
The survey aims to gather essential information to evaluate the sustainability of respondents' startup models, ultimately enhancing the reliability of research findings The results obtained from this survey provide valuable insights into the effectiveness and viability of various startup approaches.
Less than 8 months 8 months - 2 years Over 2 years
According to the survey results presented in Figure 4.7, a significant majority of the participating enterprises, accounting for 76%, have been in operation for 8 months or longer Specifically, 40% of respondents reported that their businesses have been operating for over 2 years, while 36% have been active for a duration ranging from 8 months to 2 years Only 24% of the respondents indicated an operational period of less than 8 months These findings suggest that the start-up activities among the survey participants are stable, enhancing the reliability of the research results.
The researcher developed a six-question scale to assess how "Attitude towards startup decisions" impacts startup motivation The survey results from this scale reveal significant insights into the relationship between attitudes and entrepreneurial drive.
I am confident in my ability at work
Totally disagree Disagree Normal Agree Totally agree
Figure 4 9 Confident in self own abilities
The survey results, illustrated in Figure 4.8, indicate that a significant majority of respondents, 80%, express confidence in their abilities to start a business, with 32% fully agreeing with this sentiment Conversely, only 3 out of 167 respondents (approximately 1.8%) reported being completely lacking in confidence, while 6% indicated they are not very confident Additionally, 20 respondents chose not to provide an opinion on the matter.
The survey results indicate that an individual's confidence in their ability to succeed in startup activities plays a crucial role in decision-making during meetings regarding startup implementation.
Totally disagree Disagree Normal Agree Totally agree
QUALITATIVE DATA ANALYSIS
The report begins with a discussion involving eight carefully selected entrepreneurs, utilizing purposeful sampling to align participants with the research objectives Data was collected through semi-structured online interviews, providing valuable insights into the experiences of these entrepreneurs.
This chapter is divided into four specific sections as follows:
The article will explore the key characteristics of start-up founders interviewed, focusing on aspects such as gender, marital status, and educational background It will also examine whether they are dedicating full-time or part-time efforts to their businesses, along with their years of prior employment experience before launching their start-ups Additionally, the types of businesses they operate, their ownership structure—whether solo, in pairs, or as part of a group—and the number of employees they have will be analyzed to provide a comprehensive overview of the start-up landscape.
The second part will highlight topics about the entrepreneurial decision motivation of respondents.
The third part will highlight the topics of the third research question, about the diffi- culties, challenges and how to overcome the challenges of these entrepreneurs.
This section will provide valuable tips for young entrepreneurs looking to launch a business in Ninh Thuan, along with insights on potential changes needed in the current startup environment to foster growth and innovation.
4.3.1 Characteristics information of the participants
No Startup-er characteristics Start-up characteristics
Education Devoting full time to start-up
Year of ex- perience in working as an employee before start- up
Types of business Business Own- ership (Alone/
F Divorce University No 15 Dried agriculture products Ready-to-eat food
University Yes 7 Restaurant Alone 4 Full time
21 part time/ sea- sonal P4 (anh Bạch) M Married
60 part time/ sea- sonal P5 (em Hoàng) M Single University Yes 2 Homestay
P6 (bạn Hoàng) M Single MBA Yes 0 Home and interior
Design Homestay Construction con- tractor
F Single University Yes 10 Spa Alone 5 Full time
P8 (Thế Vinh) F Single College Yes 2 Tour Alone 6 Full time
The majority of interview respondents are married entrepreneurs, some with children and others without, all holding at least a university degree Their years of experience vary widely, with some being relatively new to their fields while others boast extensive backgrounds Most dedicate their efforts solely to their startups, primarily operating in agriculture and services—sectors that offer significant advantages in Ninh Thuan province These business areas typically require minimal capital for establishment As young startups, they generally maintain a modest workforce, often relying on part-time and seasonal employees, which aligns well with the demands of industries like tourism and homestays.
4.3.2 Motivations to become self-employed
What motivates you to decide to start a business? Pull Push
Intrinsic Extrin- sic Intrinsic Extrin- sic
+ Find more sources of income be- cause the daughter is terminally ill
+ Want to develop local agricultural products (Push / In) x
+ Realizing the intersection between market demand and their own supply capacity (Push / Ex) x
+ Not suitable for office environment
(time / space, restrictive work envi- ronment and framework) (Pull / Ex-
+ Father has a stroke, needs to go home (Pull / In) x
Take advantage of existing family facilities (facilities and people) (Push
Struggling to find a job in the city, a married woman decides to return to her hometown Her background as a construction engineer has made her realize that the traditional office environment is not a good fit for her.
+ Find more sources of income be- cause the government prohibits tu- toring (Pull / IN) x
+ Take advantage of existing family facilities (donated by parents-in-law)
+ Realizing the local development potential (Push / Ex) x
+ Only children should go home to take care of their parents (Pull / In) x
+ Bored of the crowded city life
+ Feel meaningless when working at work, want to pursue a passion for creating own brand (Push / In) x
+ Want to create your own product
Realizing your passion for creating a product that makes your mark
+ Realize development potential and available network (Push / In) x
+ Started a business in Saigon, failed, had to return home (Pull / In) x
Studies have shown that intrinsic and international motives will play various roles to establish entrepreneurial intentions of individuals (Doyle, 2001)
Aspiring entrepreneurs often cultivate their business goals driven by future interests, including societal commitment, personal growth, well-being, and community involvement Achieving these intrinsic objectives reflects a natural inclination towards development and continuous learning, highlighting the essence of entrepreneurship as a proactive practice.
Ownership and management of a company involve taking on risks and responsibilities, providing entrepreneurs the chance to gain expertise through daily operations This empowers individuals to achieve their goals while controlling their company's growth Start-ups play a crucial role in addressing social challenges and creating innovative products that fulfill human needs Additionally, they foster sustainable jobs and growth, motivating more individuals to pursue entrepreneurship with the intention of making a positive impact on society and contributing to a safer planet.
Extrinsic motivations like fame, financial success, and personal attractiveness drive individuals to engage in various behaviors, often leading to learning experiences regardless of potential rewards or penalties Those who prioritize external goals are more inclined to pursue careers in business, as achieving cultural recognition is a significant aspiration for many Media coverage of successful entrepreneurs promotes their stories and encourages participation in lectures and forums, positioning employers as modern-day heroes within society Consequently, individuals often seek employment opportunities, focusing on their aspirations rather than solely on fame or physical appearance.
For example from the survey, most of the motivation factors of the people interviewed come from intrinsic reasons They highlighted in the following transcript:
These elements for motivation might be pull intrinsic factors (the personal circumstances that motivates the entrepreneur's life) such as:
“ I would like to find more sources of income because the daughter is terminally ill”
“ I am not suitable for office environment”
“ My father has a stroke, needs to go home”
“ I am get married, going back to the hometown because I cannot find a job in the city”
“ I am not suitable for the office environment (previously working as a construction engi- neer)”
“ I find more sources of income because the government prohibits tutoring”
“ I am the only children in my family, so I should go home to take care of their parents”
“ I am bored of the crowded city life”
“ I started a business in Saigon, failed, had to return home”
Or the factors might be push intrinsic factors which stems from the entrepreneur himself wants to motivate himself with motivational reasons, like:
“ I want to develop local agricultural products”
“ I want to take advantage of existing family facilities (facilities and people)”
“ I want to take advantage of existing family facilities (donated by parents-in-law)”
“ I feel meaningless when working at work, want to pursue a passion for creating own brand”
“ My family have full condition”
“ I want to create your own product”
“ I realize my passion for creating a product that makes my mark”
“ I realize development potential and available network”
Most individuals are not primarily driven by external factors when joining startups Instead, they often seek new opportunities due to unsuitable working environments or their recognition of significant market potential that aligns with local models, highlighting a gap in the market.
4.3.3 Difficulties and challenges in start-up and ways to overcome
4.3.3.1 Difficulties and challenges in start-up
The rise of individually-owned economic models is generating significant annual income and creating jobs for hundreds of local workers However, many of these startups encounter challenges due to their limited scale and insufficient capital.
These difficulties and challenges can be mentioned as:
Experienced entrepreneurs may face challenges in raising capital for new ventures, yet they possess significant advantages over startups Their previous business experience often provides them with capital resources or a consistent revenue stream, which can be leveraged to fund their new business endeavors.
Building an effective team can be challenging, especially for those without prior experience in teamwork or management Even seasoned managers may find it stressful to establish a well-structured team that meets the project's needs.
After launching a product, startups that lack a clear strategy may face rapid failure if their offering is poorly received Many startups that enter the market without careful planning often find themselves trapped in a cycle of insufficient product development.
Startups start out always with their start-up journey without paying attention to corporate cul- ture, which can lead to internal challenges, conflicts, and frustration among employees.
When launching a business, extended preparation without profit can lead to significant capital losses Prolonged periods of unprofitability can jeopardize the company's sustainability Consequently, many startups aim to achieve profitability within the first 2-3 months of operation to mitigate these risks.
Business owners face the challenge of making countless decisions daily, ranging from significant to minor choices If not adequately prepared, many startups encounter decision fatigue, a genuine phenomenon that can hinder their success.
From the interview survey and in-depth questions about the challenges encountered in the startup, we draw some analysis Financial problems are a problem most entrepreneurs face (P1, P5, P7, P9, P10, P11)