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Discuss Whether Readiness and Restraint Factors Are Likely to Be More Relevant in Influencing the Start-Up Decision of a Potential Small Business Owner More Than the Other Characteristics Peacock (2004) Is Discussing

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Discuss whether readiness and restraint factors are likely to be more relevant in influencing the start-up decision of a potential small business owner more than the other characteristics Peacock (2004) is discussing.

Becoming an entrepreneur is not for everyone. It takes a special person with a strong commitment and special set of skills to become a successful entrepreneur. McClelland (1961) developed the theory of three types of need - need for achievement (nAch), power and affiliation – that are required to try something new and uncertain. The theory suggested that the higher the nAch, the higher is the entrepreneurial success. According to McClelland one of the important factors for achievement is the extent to which an entrepreneur assumes his responsibility for solving problems.

Furthermore, Gatewood noted that potential entrepreneur with high personal efficacy scores would be persistent in successfully starting a business (Gatewood, Shaver & Gartner 1995, p.380). Therefore, readiness and restraint factors are important in influencing the start-up decision of a potential small business owner but in conjunction with the personal characteristics of the future owner- manager, who has the entrepreneurial vision, who is innovative, searches for new opportunities and is driven to make things happen (Mazzarol, Volery, Doss & Thein 2001, p.15).

The entrepreneur is frequently characterised by a strong internal desire to achieve and seeks to generate new initiatives to avoid boredom. As defined by Mazzarol, Volery, Doss & Thein key enterprising predispositions found among entrepreneurs are a need for achievement, need for autonomy, creativity, calculated risk taking, drive and determination (Mazzarol, Volery, Doss & Thein 2001, p.15).
Similar to prior studies Koe Hwee Nga suggested that entrepreneurs have been found to

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