Entrepreneurial human capital, role models, and fear of failure and start-up perception of feasibility among adults in Vietnam

Abstract

Although various studies have been conducted to examine the role of human capital, role models, and fear of failure in the entrepreneurial process, the results reveal inconsistencies. Moreover, the relationship between them and their role in explaining the perceived feasibility of starting a new business still has no clear answer. Based on the adult survey data of the Global Entrepreneurship Monitor in Vietnam 2017/2018, the study find that having entrepreneurial knowledge, skills, and experience and knowing an entrepreneur are positively associated with the individual’s perception of feasibility to start a new business; whereas, the fear of failure do not have a direct significant effect on it. However, the influence of fear of failure on perception of starting a firm is strongly negative effect as moderating by educational attainment. Individuals with personal entrepreneurial connection and gaining entrepreneurship knowledge, skill, and experience have reduced the fear of business failure. The contribution of this study is twofold. First, it provides empirical evidence on the relationship between human capital, role models, fear of failure, and entrepreneurial feasibility. Second, it contributes to the understanding of entrepreneurship environment in Vietnam, a communist country still existing today.