Model for determining the entrepreneurial profile.

Izvercianu, Monica ; Pugna, Adrian ; Negru-Strauti, Gabriela 等

1. INTRODUCTION

The study presented below is part of a larger analysis of the entrepreneurial phenomenon in Romania, a study that is to be carried on by contract no. 91-069/14.10.2007, Excellence Research Partnership for Development of Entrepreneurial Aptitudes and of Competitive Human Capital inside the Economy and the Society Based on Knowledge and Innovation. Currently, the entrepreneurship has a bigger impact then ever in the past 100 years. Recent studies shows that entrepreneurship became a significant "way of life", a career for many, more than 4% of adults trying to start a business. Thus, Entrepreneur's role, considering the Entrepreneur as a person characterized by a high degree involvement in introducing novelty or innovating the present, is increasingly becoming important in countries which currently are in transition period to free economy and free market (Chell, 2001),(Vaduva, 2004).

2. RESEARCH METHODOLOGY

The study has in view determining some specific characteristics to Romanian Entrepreneurs from 5 West Region. Thus, in order to draw up the Entrepreneur's profile, first were identified the factors which influences the decision to be, or to became, his own employee. The differences in earning regarding being your own employee or being some other's employee, have a central position (Izvercian, 2002). Also, it was utilized a large set of variables in order to describe the factors which influences the efficiency of these two situations, their relative risk, against the individual's preferences and abilities (Douglas, 2002).

The survey has been done based on a questionnaire submitted to enterprisers-managers. The survey--from designing point of view--represented a hybrid between a stratified random sampling with unequal probabilities and a controlled semi-random sampling--aspect which was imposed by organizational motives taking in account restrictions and objective limitations of this kind of research. The sample can be considered representative, not necessarily by size, but rather by afterwards procedures of stratifying amelioration and by successive characteristics recalibrations (by main activity CANE code--and by number of employee).

The research used a regional database and had as dependent variables, transition to self-employment and sometimes longevity in business. The typical descriptive variables category includes: age, gender, education, earning, owned capital, previous professional experience, marital status and cultural system from which Entrepreneurs emerged. The study sample has been chosen out of 1321 subjects that have been mailed, out of which only 122 (9.235%) from all of them answered, the sample being as a randomly chosen sample.

3. SAMPLE CHARACTERISTICS

Taking in account the firm's dimensions, one can see that micro-enterprises prevail, representing 52.28% from the total investigated firms, followed by small-enterprises representing 32.74% and medium-enterprises representing 14.98%. From juridical form point o view, the most often set up firms are the ones with Limited status, representing 94.5% from total SMEs established, following the tendency recorded on national level, where 92.15% are of Limited type. Due to the array of characteristics analyzed through the survey, the sample size was established on first instance based on linear characteristic, in unrepeatable variant (Isaic-Maniu, 2004):

n [congruent to] N x [z.sup.2.sub.1-p] x [[sigma].sup.2.sub.b]/N x [[delta].sup.2.] + [z.sup.2.sub.1-p] x [[sigma].sup.2.sub.b] (1)

where [z.sub.1-p] are Laplace's variable values, for a probability [alpha] = 1 - p, where [alpha] is the significance level, in our case [alpha] = 0.001 (p = 99.9%), and therefore [z.sub.0.001] = 3.09; [[sigma],sup.2.sub.b]--is the binary characteristic's variance, that is [[alpha].sup.2.sub.b] = [alpha] x (1 - [alpha]). In order to reduce statistical uncertainty, maximum variance has been utilized, therefore the sample was designed at the worst case scenario, that is in our case [[alpha].sup.2.sub.b] = 0.5 x (1 - 0.5) = 0.25; [[delta].sup.2] is the probable error, established in our case at a level of 4%. After calculation, a sample size of n = 120 units (questionnaires) was obtained. To reduce further the uncertainty of the research, there has been a supplementary increase of sample size by 8%, that is approximately with 9 units (questionnaires).Finally 7 questionnaires were scrapped due to some uncorrectable errors, the survey being performed on 122 questionnaires. The questionnaires distribution per Counties from 5 West Region in Romania is presented in table 1. Regarding activity branch, the firms structure from sample is presented in table 2. Thus, the most SMEs activate in Wholesale and retail CANE section (42.62%), Real estate transactions CANE section (18.05%) and Manufacturing CANE section (14.75%).

4. STUDY RESULTS

The determinant factor in entrepreneurial activity is the Entrepreneur. Hence the necessity and importance of studying the Entrepreneurs from different point of views. Hereinafter are presented the elements which define the profile of Romanian Entrepreneurs from 5 West Region, presented in table 3 From the total of questioned individuals (122 Entrepreneurs), 40.25% have age between 31-40 years, these ones having already knowledge and necessary experience in business. 24.74% of younger individuals, between 26-30 years, are involved in entrepreneurial activities due to their enthusiasm and willing to take risks. Entrepreneurs with age between 41-50 years are in proportion of 23.13%. The Entrepreneur's categories with ages over 50 years and under 25 years, are rather small (only 5.47% and only 6.41% respectively). The average age of the questioned Entrepreneurs is 41 years and the average age on when they've start up the business is 33 years.

Another criterion, gender, shows that the most Entrepreneurs are males (67.29%), while women are in a proportion of 32.71%.

From type of studies point of view, the vast majority of the respondents have graduated from an University (69.32%), which can be hypothesized as being the premise for their success in entrepreneurship activity. From these, 69.32% have graduated from a technical university type and 34.53% have graduated from an economical university type. The ones specialized in IT domain represents 6.50% and 13.19% have other specializations. From the questioned Entrepreneurs, only 35.24% have graduated lately a managerial course, which is not surprising at all having in view that they are not only owners but also managers, buyers, sellers, car drivers etc, invoking this way the lack of time.

Regarding the motives for which the Enterprisers decided to develop their own business, these are in order of importance: necessity to develop a self-safety feeling for 58.23% of them, willingness to obtain higher earnings for 52.76% of them and opportunity arising for 48.18% of them.

By correlating managerial readiness with how the firm's results are evaluated, it was concluded that 14.35% of the individuals which were able to take courses after graduating from university evaluate the firm's results as being "very good" and only 9.23% from the category which wasn't able to follow this type of courses evaluate that the firm's results are "very good". On the one hand we can conclude that as the firm's dimension grows, the problems which the enterprisers-managers are confronting with, also grow and therefore they must use a more "scientific" management and they to find time to prepare themselves in managerial area. On the other hand this correlation can draw the conclusion that after taking courses in managerial area, the enterprisers became more performing, thing reflected in the dimension of the firm they own/manage (Nicolescu, 2006).

5. CONCLUSIONS

Thus, it can be drawn up a Romanian Entrepreneur from 5 West Region "portrait" as being a mature male, 41 years old on average, which starts up the business at an age of approximately 33 years, with good professional readiness (mainly technical or economical) and with a desire of a better earning or in order to develop self-safety. Determination in starting up and developing a new business--recognizing the opportunities offered in the environment, combining the resources in order to fructify the opportunities, developing a strategy to utilize the resources in order to exploit the opportunity and structuring an organization capable of applying that strategy--all of them having roots in enterpriser's behaviors and decisions. Future research will include mastering an action plan to lower entrepreneur's age and expanding this survey on national level.

6. REFERENCES

Chell, E. (2001). Entrepreneurship: globalization, innovation and development, Thomas Learning, London

Douglas, E.J. & Shepherd, D.A. (2002). Self-employment as a career choice: Attitudes, entrepreneurial intentions, and utility maximization, Entrepreneurship Theory and Practice, 26(3) p. 81-90

Isaic-Maniu Al. (2004). Statistics (in Romanian), Editura Universitara, Bucuresti

Izvercian, M. (2002). The Human Resources Marketing (in Romanian), Solness, Timisoara

Nicolescu, O. et al. (2006). The White Charter of SMEs from Romania (in Romanian), Olimp, Bucuresti

Vaduva, S. (2004). The Entrepreneurship (in Romanian), Editura Economica, Bucuresti

Romanian Statistical Yearbook (2006), Available from: http://portal.feaa.uaic.ro/C7/Biblioteca/Document%20Libra ry/Anuarul%20Statistic%202006/ASR_2006_integral.pdf Enterprise Activity, pp.600-605 Accessed: 2008-06-12

Tab. 1 Questionnaires distribution per Counties from 5 West
Region in Romania (Romanian Statistical Yearbook, 2006)

No. County Number of Percentage
 answers from total
 [%]

1 Arad (AR) 34 27.86
2 Caras-Severin (CS) 16 13.11
3 Hunedoara (HD) 21 17.21
4 Timis (TM) 51 41.82
 Total 122 100

Tab. 2 SMEs structure from sample as per CANE sections from
5 West Region in Romania

No. CANE section No. of Percentage
 answers from total
 [%]

1 Manufacturing 18 14.75
2 Construction 9 7.37
3 Wholesale and retail 52 42.62
4 Hotels and restaurants 7 5.73
5 Transport, storage and 8 6.55
 communications
6 Real estate transactions 22 18.05
7 Other activities 6 4.93
 Total 122 100

Tab. 3 Romanian 5 West Region Entrepreneur's characteristics

No. Parameter taken Elements of characterization
 in account

1. Entrepreneur's Male enterprisers are the majority
 gender (67,29%).

2. Entrepreneur's Category 31-40 years (40.25%)
 age is dominant, that is mature
 individuals. Average age at the
 business start up is 33 years.

3. Educational level Over two-thirds (69.32 %) had
 graduated from an University,
 which shows a high level of
 education among Entrepreneurs

4. Professional Entrepreneurs with technical
 readiness readiness are dominant (45.78%).

5. Managerial Only 35.24 % of individuals from
 readiness the sample had graduated a
 managerial course after
 completing their studies, which
 shows their relatively low
 managerial knowledge and
 abilities.

6. Business start up 58,23% of the questioned
 motives individuals placed the necessity
 of self-safety and family-safety
 feelings on first place. Hence
 there is a multidimensional
 motivation