Entrepreneurial Self Efficacy and Institutional Forces on New Business Creation in Kuwait

Abstract

Previous studies indicate that entrepreneurs create businesses primarily for economic reasons. Socioeconomic, cultural and other environmental factors considerably influence the entrepreneurial process and outcomes. Kuwait appears to have highest prevalence of entrepreneurship in any economy as there is one private business for every two Kuwaiti. The objective of this study is to examine how the institutional and cultural makeup of the local/indigenous Kuwaiti society shapes the entrepreneurial outcomes in Kuwait. A survey was conducted among 115 new entrepreneurs in Kuwait who have started a business within last 3 years to collect the data to assess the entrepreneur’s personal background, personal aspiration to start a business, and ownership structures. Financial motives are the strongest motive for the entrepreneurs start a new business followed by to be independent or to be own boss.