Psycho-Economic Phenomenon, Opportunistic Behaviour and their Impact on Entrepreneurial Failure Hafiz Rahman-1, Eri Besra-1 and Nurhayati-2
1. Department of Management
Faculty of Economics
Universitas Andalas
2. Padang State Polytechnic
Abstract
This paper aims to investigate and to discuss psycho-economic phenomenon that caused entrepreneurial failure. Several research and studies have indicated that the deterministic, emotive and voluntaristic factors are the most prominent psycho-economic phenomenon which affects entrepreneurial failure. However, this paper views that it is not only limited into that categories as it believes that opportunistic behaviour of individuals can also contribute to entrepreneurial failure.
The study is a quantitative study and it operates causal analysis that relates the existing arguments regarding psycho-economic phenomenon to entrepreneurial failure. The study further adds and analyse the construct of opportunistic behaviour as another possible factor in entrepreneurial failure. Sample of the study is 1541 nascent entrepreneurs in West Sumatra Province, Indonesia, who have experienced failures in their business. Analysis was undertaken by using multiple and partial regression analysis in which the statistical protocol was operated.
The study found that psycho-economic factors together with opportunistic behaviour of individuals in a lesser to a bigger degree would cause entreprenuerial failure. The study also implies and argues that opportunistic behaviour may not only be viewed as a source of entrepreneurial success, but it should also be considered as a cause of entrepreneurial failure.
This finding clearly demonstrates the originality and value of this study. It argues that opportunistic behaviour can also be viewed as a factor - apart from the other existing psycho-economic factors (deterministic, voluntaristic and emotive) - that can cause entrepreneurial failure.
