THE INFLUENCE OF EXPERIENCE AS A WORKER ON SUCCESS OF … · Keywords Experience as a Worker,...

Book of Proceedings - Academic Conference of Cambridge Publications & Research International on Sub-Sahara African Potentials in the New Millennium Vol. 3 No.4. 30th July, 2015- FUTA, Hilltop Conference Hall, Akure, Ondo State.

THE INFLUENCE OF EXPERIENCE AS A WORKER ON SUCCESS OF SELF EMPLOYMENT BUSINESSES

*SAMUEL OYEBANJI AKINTUNDE **OLUWAKEMI OLUDOTUN OYEFESOBI

**Department of Business Administration and Management Moshood Abiola Polytechnic, Abeokuta, **Department of Marketing, Moshood Abiola Polytechnic, Abeokuta

ABSTRACTThis paper investigated the influence of experiences on the success of self employment endeavours. A survey research design was used to elicit data from a sample size of 150 small scale business owners who operate in Mushin Local Government of Lagos State through a structured questionnaire. Data were analysed with the aid of descriptive statistics of mean and standard deviation. The analysis showed that experience as a worker in previous ownership structure facilitate the success of self-ownership in small scale businesses, as it enhance access to key technical knowledge about the business, business contacts, business finances, among others. Based on this findings we stress the need for those wishing to be self employed to first gain experience and resources through assisting and or working for others as a worker and also for government to initiate policies to facilitate this..

Keywords Experience as a Worker, Business Success, Entrepreneurship, Intrapreneuship, Self Employment.

INTRODUCTION

The significance of entrepreneurship in employment generation and economic development has been widely acknowledged (Adejuwo and Tijani, 2011). Antoncic and Hisrich (2001) describe it as an engine of economic and social development. However the expression of entrepreneurship in self-employment has been bedeviled by high failure rate (Zuzana, 2007, Adejuwo 2011). This has stimulated several attempts at characterizing self-employment entrepreneurship and the factors which hinder or facilitate its success. This is more so with respect to experience as a worker and entrepreneurial success. In particular, most writers on entrepreneurship present it as opposite of labour activities which take place in paid employment. Employees are seen as opposite of entrepreneurs and necessarily un-entrepreneurial (Zedomi 2007, Tunstall 2011). For example Micheal and William (1968), characterize them in McGregors’ theory X terms, expressing managers’ assumption about their subordinates as generally lazy and irresponsible. In our immediate environment, it is common to describe their orientation as that of “Oga ta, Oga kota,owoalaru a pe” (i.e. Whether or not the master gains, the labourers’ wages would be complete). There is also the tendency for workers in the public sector to see their salaries as their share of

1

the national “cake” (Azeez, 2013; Olopa 2013). These and the general bureaucratic culture in most organisations tend to make most workers develop and manifest behavioural traits which negate the requirements of successful entrepreneurship in self-employment (Adebisi 2009). In the light of this, the paper seeks to examine the relationship between experience as a worker and success in self-employment entrepreneurship.

STATEMENT OF THE PROBLEM

It is being contended that the bureaucratic environment in most organisations tend to constrain free expression of entrepreneurial behaviours (Adebisi, 2009). Workers in both public and private sectors in Nigeria are seen manifesting many un-entrepreneurial behaviours despite the organizational resources that are typically available to them (Azeez, 2013). It could therefore be logically inferred that exposure to such un-entrepreneurial environment would tend to hinder successful expression of entrepreneurship in subsequent self-employment endeavours. However, this and the specific impact of organizational experience and resources have not received significant attention in literatures and hence it was the focus of investigation in this study.

Objective of the Study

The objectives of this paper are;

i. To identify the influence of experience as a worker on business success.

ii. To examine how experience as a worker influences business success.

Research Question

The research questions for this study are;

i. Does experience in previous paid employment influence self-employment business success?

ii. How does experience as a worker influence business success.

Research Hypothesis

The following hypothesis will be tested in this study.

i. Ho: Experience as a worker does not have any significant influence on self-employment business success.

ii. Ho: Experience as a worker influence business success through access to positive business resources.

LITERATURE REVIEW


Entrepreneurship has been defined as the creation of values by pulling together a unique package of resources to exploit an opportunity (Stevenson et al, 1985). This involves the process of opportunity recognition, marshalling of resources for the creation and management of businesses (Kuratko, 2007). This process, according to MAPCED (2013) Student Study Manual on Introduction to Entrepreneurship Vol. 4 Abeokuta, Moshood Abiola Polytechnic. represents the exercise of a set of enterprising qualities required to locate and translate opportunities for profitable creation and exchange of values in a situation of uncertainty. However, Scholars such as Karplargu, (2013) are agreed that the core elements of these qualities are that of innovativeness, proactiveness and risk taking behaviours. This indicates that as distinct human qualities, they could be exercised in paid employment as in self employment. A worker is “any person who has entered into or work under a contract of employment with an employer .....” (Labour Act, 1974). This contract, according to Akintunde (2014a), has economic, legal and psychological aspects. The economic and legal aspects are basically aimed at maximizing the often narrowly defined respective interest of each party. This tends to have potentially inhibitive effect on free expression of entrepreneurial behaviour by workers. The psychological aspect however admits the possibility of entrepreneurial behaviour (such as innovativeness, proactivity and risk taking behaviours) in the course to which they are committed beyond immediate economic and legal gains. However, the focus of Human Resource Management in most organisation is the legal and economic aspects. Which often pitch the parties in oppositional struggles and less entrepreneurially inclined endeavours (Jibran, 2010; Mitchell,2000).

When entrepreneurial qualities are activated, value creating units or businesses is created. Business has been defined as profitable creation and exchange of values (MAPCED, 2010). The success of such endeavour in Nigeria, like in many other countries, has been limited. Failure rate has been consistently high in these countries despite massive efforts at promoting and supporting small businesses by the government (Parker, 2005, Ekpoh & Edet; (2011), Ebiringa, 2012; Zuzuna, 2007). This high failure rate has been attributed, in part, to the problem with managing the unentrepreneurial workers or the bureaucratic setting of most organizations (Adejuwon, 2011).In terms of the relationship between worker and entrepreneurship there are contentions that an employee or worker is basically unentrepreneurial(Izedomi,2007). However, the emergence of the concept of intrapreneurship (which represents workers entrepreneurial activities, and located, inside organizations) negates this thinking (Pinchot, 1985). According to the Encyclopedia of Business, an intrapreneur usually goes beyond the narrow job descriptions and help to implement innovative policies and procedures or introduce innovative products or services. This point in the direction that, contrary to common assertion, entrepreneurship is not opposite entrepreneurship or a limitation to success in self employment. It is in line with this that Kwatko (2007) assests that entrepreneurial prospects is not something that a person either or do not have. It is a variable which is inherent in every worker as a potential, awaiting the intervension of appropriate Human Resources Management (HRM) practices. This suggests that experience as a work do not necessarily negates business success. It may, in fact be a success factor.In relation to experience as a worker and Business Success, Andrea Vogel (2012) reports that most entrepreneurial leader do not launch straight into their ventures, right from their high education system. He stressed that more than half of these entrepreneurs regard themselves as “transitioned”, meaning that they had some experiences as an employee, before launching their own ventures. In addition, they ranked their experience as employee as the most influential determinant of their success in self employment. In the same line of thought, the Junior Achievement Innovation Initiative (2000) reports that both employees

3

and those responsible for hiring them regard being entrepreneurial as a success factor at work. Thamous (2008) corroborated this finding in his assertion that many of the greatest business leaders of the past centuries made their early mark in business first as intrapreneurs. Further Akintunde (2013c) concluded that experience as an intrapreneur can not only help to create business expansion in existing business, they are more likely to create new businesses that would success, last and create more stable jobs when they become as independent entrepreneurs.

METHODOLOGY

Survey research design was adopted for this study. This design was adopted because the population of study is spread over a geographical area. The research instruments used is structured questionnaire. The population of the study consist of 562 registered number of self-employed entrepreneurs operating in Mushin Local Government area of Lagos State and members of the associations of small and medium scale businesses of Nigeria.

This study makes use of cluster sampling technique to pick 150 business owners from the production and service sub-sectors of small scale business in the legal government.

A sample size of One Hundred and Fifty (150) respondents was selected using convenient sampling techniques from production and services types of businesses owners.


Table I: Gender of Respondents Table II: Type of Business

S/N Option Number %

1. Production Business 63 42

2. Service Business 87 58

3 Total 150 100

Option

Male

Female

Total

Research Instrument

The major research instrument in this study is

questionnaire which takes the form of a list of questions sent to the respondents. It was designed elicit the opinions of

respondents on some

Questions VGE

4

GE

3

SE

2

L/NE 1 Mean Std Decision Comment/Conclusion

5

facilitators of success in

employment such proxies include key technical knowledge about the business product/services, business contacts, business finances,

capital for the business, obtaining trade credits, managing workers, managing

managing customers, dealing with suppliers, dealing with the business

minimizing the cost of

business, dealing with competitors, trade secret. They were rated on a range of likerk - like rating of


levels of agreement

– Very great extent (VGE) = 4

- Great extent (GE) = 3

- Some extent (S

7

E) = 2

- Little or no extent (LNE) = 1

Method of

Analysis

Descriptive statistical mean and


standard deviation was used to analyze the data and test

hypotheses based on appropriate decision

Mean (n)=∑i –

Standard deviation = ∑(x – x) 2

interpreting the result of analysis and hypothesis testing, SE and below

interpreted as not accepted, while any figure above SE are interpreted as acceptance. Acceptance is calculated

9

multiplying the figure for SE (2) x total number of responses, that is 150 divided by number of response options, (i.e.) 4. Therefore, mean is calculated as 2 x 150 ÷ 4 = 75. The standard deviation is calculated is to give credence to the mean and the decision rules to accepted or rejected as the case may be In testing

hypothesis reject Ho and accept Hi if the mean is greater than

Presentation of Results the Results of the

The mean scores of the extent to


which factors in the experience as a worker facilitated business success are as stated in brackets below:

That is, enhanced access to key technical knowledge about the business product/service (149), Enhanced access to business

(148.95), Assisted you in managing business finance. (149.25), Assisted you in raising capital for business. (145.25), Assisted you in obtaining trade credits.

Assisted you in managing the worker

Assisted you

11

in managing yourself.

Assisted you in managing

customer. (149.25), Assisted you in dealing

supplier.

Assisted you in dealing with business

(140.25), Assisted you


business. (1), Assisted you in meeting

challenges of the business.

Dealing with competitor. (103.75), Assess to trade secret for coping

competition.

Limit your exposure to business opportunities. (86.5),


Made you to get used to negative attitude to

As shown above and elaborated in appendix I, the test of hypotheses showed that the mean scores in respect of each of the business

highlighted above are above 75. The only exception is that saying

“experience as a worker has made the respondents got used to negative attitude to

DISCUSSION OF FINDINGS

Thus, the study found

13

out that experience as a worker has

influence

factors of business except for that of limitation of exposure to business opportunity. The study also found out that there is a significant

relationship between past experience as a worker and business success. A significant finding is

experience as a worker limits these entrepreneurs exposure to business opportunities which was accepted.

findings corroborates the findings of Antoncic and Hinrich,


Lumpkin and Dess (1996),

et al.,

(2004) that experience as an employee is a good source of

competences for career development and business success .

Kuratko,

Graonhaus, 2000),

Hornaday,

Gartner, (1990) and Antoncic and Hisrich,

supported the findings that intrapreneurship (where experience are gained

starting own business) help firms to implement innovative

15

product or service, and

advantages obtainable in organizations as at individual

On the other hand, this study found out that, experience as a worker cannot make someone to get used to negative attitude to work. This is contrary to inferences from many writers (such as Izedomi, 2007), that experience as a worker can

someone gets used to negative attitude and habit of work. More so, JAII

agreed that entrepreneurial attitudes are also required by workers


which can be transferred to

business. However, unlike our expectation, experience as a worker limits their exposures to business opportunities. This might be due to the rigid rules of

determined by another which is common in

employment. This would tend to limit opportunities to explore and discover opportunities. After all, entrepreneurship is the exercise of entrepreneurial qualities

regard to the resources

currently controlled (Stevenson,

17

CONCLUSION AND RECOMMENDATION

From the findings and discussions to focus it may be concluded

experience as a worker facilitate the success of small scale business. Specifically, experience as a worker enhance access to key technical knowledge about the business product/services, business contacts, business finances,

capital for the business, obtaining trade credits, managing workers, managing

managing


customers, dealing with suppliers, dealing with the business


business, dealing with competitors, trade secret for coping competition.

experience as a worker has not made them to get used to negative attitude to work though it limits their exposure to business opportunities

Based on this

concluded

experience as worker has played a vital role in achieving business

rather than

hindrance or

19

a source of negative attitude to

Therefore, the study recommends that: these intending to start their own business should start by working for others. Through this experience are gained

resources are accumated. This would decrease available mistakes in running and increase business by entrepreneur competences and the success rate of small

businesses in Nigeria.

REFEREN

Akintunde, Banj


i, (2013a) Legal Aspects of Industrial and Labour Relations Function 3rd

Edition. Abeokuta Lordspath, UBL

Akintunde, S.O. (2013b) Intrepreneurship Development as a Human Relation

21

Management Functions. Singoporean Journal of Business Economics, and Management Studies. Vol. 1(12).

Akintunde, S.O. (2013c) Assessment of the Comparative Potentials of Intrapreneurship


and Self-employment as Tools of Employment Generation and Wealth Creation. Singoporean Journal of Business Economics, and Management Studies. Vol. 2(3)

Antoncic, B. & Hisrich, R.D.

23

(2001). Intrapreneurship: Construct Refinement and Cross Culture Validation. Journal of Business Venturing, 16, 495 – 527.

Appelbaum, E., Bailey. T. and Berg, P. (2000). Manufacturing adva


ntage: Why High Performance Work. Systems Pay Off. Ythaca, NY: Cornell University Press.

Brown, T.E. (2004). Skunk works: a sign of failure, a sign of hope? In T.E. Brown & J.M.

25

Ulijn, (Eds) (2004). Innovation, entrepreneurship and culture: the interaction between technology, progress and economic growth. Cheltenhan: Edward Elgar.

Creswell, J.W. (2003). Rese


arch design. Qualitative, quantitative, and methods approaches. (2nd

Ed). Thousand Oaks: Sage Publications.

Denzin, N.K. and Lincoln, Y.S. (1989). Collecting and Interpreting Qualitative Mate

27

rials, Thousand Oaks: Saga Publications.

Gartner, W.B. (1990). What are we talking about when we talk about entrepreneurship?Journal of Business Venturing, 5(1), 15-28.

Greenhaus, J.P., Calla


nan, G.A. and Godschalk, V.M. (2000). Career Management (3rd

Ed.). Orlando, FI: Dryden Press.

Hart, M., Ayandike-Danes, M. and Blackburn, R. (2007). Entrepreneurship and Age in the UK:

29

Comparing Third Age and Prime Age new venture creation across the regions. ISBE conference paper, Glasgow.

Haymaker, H.G. (1998). De knust van het zinvol weken. (The art of mea


ningful labour). Schiedam: Scriptum.

Hornaday, J.A. and Bunker, C.S. (1970). The Nature of the Entrepreneur. Personnel Psychology, 23, 47-54.

Kanter, R.M. (1989). When Giants Learn to Danc

31

e, Simon & Schuster, New York, NY.

Kanter, R.M. and Richardson, L. (1991). “Engines of progress: designing and running entrepreneurial vehicles in established companies the enter-prize prog


rame at Ohio Bell, 1985-1990”. Journal of Business Venturing, Vol. 6, No. 3, pp. 209-29

Khandwalla, P.N. (1987). “Generators of pioneering-innovative management: some Indian

33

evidence”. Organization Studies, Vol. 8, No. 1, pp. 39-59.

Knight, G.A. (1997). “Cross-Cultural Reliability and Validity of a scale to measure Firm Entrepreneurial Orientation”. Journal of Busi


ness Venturing. Vol. 12, No. 3, pp. 213-25.

Kuijpers, M.A.T.C., Schijns, B. and Scheeren, J. (2006). Career Competences for Career Success. Career Developmetn Quarterly, 55, 2 168

35

– 178

Kuratko, D.F., Hornsby, J.S., Naffziger, D.W. and Montagno, R.V. (1993). “Implement entrepreneurial thinking in establishing organizations”. SAM Advanced Management Journal. Vol.


58, No. 1, pp. 28-33, 39.

Kuratko, D.F., Montagno, R.V. (1989). The intrepreneurial spirit. Training and Development Journal, 43(10), 83-85.

Lawal A.K. and Iseaje I.T. (2014). Effect of Wor

37

k Experience on Business Development. Unpublished paper, department of marketing, Moshood Abiola Polytechnic, Abeokuta.

Lee, T.S. and Tsai, H.J. (2005). “The effects of business operation mode on


market orientation, learning orientation and innovativeness”. Industrial Management and Data Systems. Vol. 105, No. 3, pp. 325-48.

Lesjak, D. and Vehovar, V. (2005). “Factors affecting

39

evaluation of e-business projects”. Industrial Management & Data System, Vol. 105, No. 4, pp. 404-28.

Luchsinger, V. and Bagby, D.R. (1987). “Entrepreneurship and Intrapreneurship”. SAM Adva


nced Management Journal, Vol. 52, No. 3, pp. 10-13.

Lumpkin, G.T. and Dess, G.G. (1996). “Clarifying the entrepreneurial orientation construct and linking it to performance”. Academy

41

of Management Review, Vol. 12, No. 1, pp. 135-72.

MacMillan, I.C. (1986). “Progress in research on corporate venturing”. In Sexton, D.L. and Smilor, R.W. (Eds), The Art and Science of Entr


epreneurship, Ballinger Publishing Company, Cambridge, MA, pp. 241-63.

MAPCED (2013). Student study manual on entrepreneurship. Abeokuta, Moshood Abiola Polytechnic.

McAdam, R. and

43

Galloway, A. (2005). “Enterprise resource planning and organizational innovation: a management perspective”. Industrial Management and Data System, Vol. 105, No. 3, pp. 280-90.


APPENDIX

TABLE III

Experience as a worker influences

business in the following

Enhanced access to key technical knowledge about the business product/service

592 3 0 1 149 295.336 Accept The experience as worker has enhance access to key technical knowledge about the business product/service

Enhanced access to business contact

580 9 6 0 148.95 287.524 Accept The experience as a worker has enhanced access to business contacts

Assisted you in managing business finance

588 9 0 0 149.25 292.531 Accept The experience as a worker has assisted them in raising capital for

45

business success

Assisted you in raising capital for business

548 27 4 2 145.25 268.739 Accept Experience as a worker has assisted them in raising capital for business

Assisted you in obtaining trade credits

336 81 40 9 119 146.940 Accept The experience as a worker has assisted them in obtaining trade credits

Assisted you in managing the worker

568 21 0 1 147.5 280.500 Accept The experience as a worker has assisted them in managing their customer

Assisted you in managing yourself

548 12 0 0 149 290.055 Accept The experience as a worker has assisted them in managing their workers themselves

Assisted you in managing your customer

588 9 0 0 149.25 292.881 Accept The experience as worker has assisted them in dealing with their supplier

Assisted you in dealing with suppliers

560 24 0 2 146.5 275.881 Accept The experience as a worker has assisted them in dealing


with their suppliers.

Assisted you in dealing with business risk

452 108 0 1 140.25 213.923 Accept The experience as worker has assisted small scale business owners in dealing with business risks

Assisted you in minimizing the cost of doing business

364 174 0 1 1 134.342 Accept The experience as a worker has assisted them in minimizing the cost of doing business

Assisted you in meeting the challenges of the business

332 195 2 1 132.5 161.275 Accept The experience as a worker has assisted them in meeting the challenges of the business

Dealing with competitor

176 129 94 16 103.75 67.4 Accept The experience as a worker has assisted their businesses in dealing with competitors

Assess to trade secret for coping with competition

472 78 4 44 149.5 217.117 Accept The experience as a worker has assisted them to have

47

assess to trade secret for coping with competition

Limit your exposure to business opportunities

220 33 18 75 86.5 92.212 Accept The experience as a worker limit their exposure to business opportunities

Made you to get used to negative attitude to work

28 6 8 137 44.75 62.297 Reject The experience as a worker has made them to get used to negative attitude to work

Totals

THE INFLUENCE OF EXPERIENCE AS A WORKER ON SUCCESS OF … · Keywords Experience as a Worker,...

Documents

Transcript of THE INFLUENCE OF EXPERIENCE AS A WORKER ON SUCCESS OF … · Keywords Experience as a Worker,...