Page 25

STRESS AND COPING STYLES OF ENTREPRENEURS: A MALAYSIAN SURVEY

Syed Zamberi Ahmad, Prince Sultan University, Kingdom of Saudi Arabia Siri Roland Xavier, University Tun Abdul Razak, Malaysia
ABSTRACT The purpose of the study is to provide empirical evidence on the sources of stress among entrepreneurs in Malaysia and to examine the associated coping mechanisms. An anonymous, self-administered, mail survey was distributed to a sample of 118 entrepreneurs in various business industries. The results show that business skills required, work pressure, high expectation of others and responsibilities are among the main elements that generate stress. Various coping strategies were employed to deal with the problem of stress. Results reveal that effective communication, disregarding, diverts thinking (by doing something else) and networking assist Malaysian entrepreneurs in handling their stress level. The conclusion reached is that, to manage stress, the work assigned must be properly organized; emotions must be kept under control by disregarding unnecessary factors that create stress and spending time with friends are all crucial. The study concludes with recommendations for future studies. INTRODUCTION Entrepreneurs stress Commencing in the 19th century, when it was considered a basis for ill health, stress has been a topic for research and academic interest, and numerous studies have examined this phenomenon (Lazarus and Folkman, 1984; Cooper, Dewe and ODriscoll, 2001). It is considered to be an internal state or reaction to anything real or imagined that an individual consciously or unconsciously perceives as a threat (Clarke and Watson, 1991). Stress is an inescapable reality of most working environments and has become a popular concept for explaining a wide range of behaviours that appear to defy explanation. Selye (1976) used the term stress to describe physiological changes induced by environmental demands. It is a process in which environmental events or forces threaten the wellbeing of an individual in society. Stress causes a disruption in the emotional stability of an individual that induces a state of disorganization in the personality and behaviour and has proved costly for individuals, companies, organizations and society (Ortqvist et. al., 2007; Manshor, 2000). For companies and organizations, the cost of stress takes many forms. These include absenteeism, high medical costs, accidents, the consequent cost of recruiting and training new workers, and a decline in productivity. Many
International Journal of Entrepreneurship, Volume 14, 2010

Page 26

challenges in the work environment have resulted in higher job stress. These are characterized by heightened competition, exposure to pressure, lack of time, lack of space, continuous technological development and advancement, conflicting demands from organizational stakeholders (Hall and Savery, 1986), increased use of participatory management and computerization (Murray and Forbes, 1986), greater uncertainty and others. Entrepreneurs are subject to stress because of the nature of their work. The role of the entrepreneur is dependent on the creation of a new venture by combining resources to create profit from a market opportunity (Shane and Venkataraman, 2000). After the venture is created, the entrepreneur bears the responsibility for its performance, which can be viewed through various perspectives i.e. financial or non-financial (Gartner, 1985). The experience of stress is more prevalent among entrepreneurs compared with other job occupations (Robinson, 2004). Empirical evidence shows that approximately 70 per cent of business owners and managers believe that it is far more stressful running their own business venture than working for other people. In the pursuit of such a business venture, entrepreneurs may work under highly stressful circumstances and are exposed to the pressure of commitments and obligations. Several researchers have categorized the role related stress experienced by entrepreneurs into three major dimensions, namely, role conflict, role ambiguity and role overload (Boyd and Gumpert, 1983; Johnson, 1995 and Harris et. al., 1999). These factors, either singularly or collectively increase the tendency for withdrawal from being an entrepreneur (Mellahi and Wilkinson, 2005; Shepherd and Douglas, 2000). Role stress holds the potential to initiate a chain of events that may ultimately lead to failure, as entrepreneurs are likely to start having doubts and become dissatisfied with their current position. In addition, researchers have determined that a lack of experience and the type of educational background may signal entrepreneurial stress. Parker (2006) supported this statement with a study on the conflict faced by a group of entrepreneurs whose inability to make such decisions arose simply because of their inability to gain and acquire experiences and because of their inadequate knowledge in certain segments. These segments include facing a new or unknown market, changes in technology or certain business ideas. As a result, the inability to cope with these challenges may create pressure on the entrepreneurs thereby generating stress. Hence, according to Solomon et. al. (1985) such circumstances have been described as role novelty, which refers to an undeveloped script for a specific role, which can be gained from experience or education. Entrepreneurs coping mechanisms Coping skills largely determine how individuals experience stress. Coping refers to behaviour that protects people from being psychologically harmed by a problematic social experience; a behaviour that mediates the impact that society has on its members (Pearlin and Schooler, 1978; Lazarus, 1998). Much of the research on coping strategies, particularly on job

International Journal of Entrepreneurship, Volume 14, 2010

Page 27

stress, has viewed coping as a mechanism to avoid or at least reduce the level and experience of stress (Folknian and Lazarus, 1980; Latack, 1986; Havlovic and Keenam, 1991). In the context of entrepreneurs stress, researchers have found several mechanisms to cope with such experiences (Boyd and Gumpert, 1983; Johnson, 1995; Robertson, 2004). Various studies show that the antecedents of coping mechanisms among academics include networking, ignorance, delegation (Boyd and Gumpert, 1983; Robertson, 2004), effective communication, finding satisfaction (Boyd and Gumpert, 1983), exercise (Johnson, 1995; Robertson, 2004), prioritize workload, comfort food, smoking and external advice such as counseling (Robertson, 2004). Although there have been several studies on job stress within the Malaysian perspective (see, Manshor, 2000; Kuan, 1994; Bat, 1995; Aun, 1998; Yahya, 1998, Nasurdin and Ramayah, 2005), studies on the level of stress among entrepreneurs in Malaysia and coping mechanisms for dealing with are lacking. A clear research gap is also evident in the entrepreneurship literature, where only a small number of studies focused on how entrepreneurs deal with stress and the type of coping mechanisms (Boyd and Gumpert, 1983; Akande, 1994; Miller, 2000). Understanding the factors that contribute to entrepreneurs stress is necessary for improving stress management programmes among entrepreneurs in Malaysia. In addition, understanding the efficiency of coping strategies is important for existing ventures as well as those in the gestation process. Thus, it is important to help entrepreneurs to better understand the stressors and strains, to formulate appropriate coping strategies that minimize the negative consequences of job stress. It is hoped that by exploring the sources of stress and coping mechanisms utilised by entrepreneurs, that tension can be reduced, enabling them to perform effectively and efficiently in their business undertaking. This study is expected to contribute to a better understanding of the sources of stress and coping strategies from the viewpoint of entrepreneurs based in developing countries. Given that entrepreneurship in Malaysia is important, as it provides support for the process of economic development in achieving developed nation status (Choy et. al, 2005), such knowledge is critical for both research and policy-making purposes. As previously stated, the development of entrepreneurship activity has been growing in importance. Both academics and governments appear to be concentrating on encouraging entrepreneurship, as it symbolizes innovation and a dynamic economy. Hence, the expectation from society is much higher as their contribution generates profits for their own business as well as the whole nation. This anticipation exposes entrepreneurs to great pressure as they struggle hard to meet the goals. Consequently, due to the aggravation in making such decisions, the exposure to pressure from work is highly determined (Wincent and Ortiqvist, 2006). Therefore, this study investigates this issue in greater detail. This study is organized as follows: the next section presents our research methodology, including the data sample, data collection process, and procedure to undertake in the study. We continue by reporting empirical results in the following section and conclude with a discussion

International Journal of Entrepreneurship, Volume 14, 2010

Page 28

and proposed implications of the theory and practice concerning entrepreneurial stress and coping mechanisms.

RESEARCH METHODOLOGY A questionnaire survey was used to collect the primary data from a convenience sample of 300 individuals who own either a small or medium size business in Malaysia. Respondents were given four weeks to answer the questionnaires. However, despite several reminders, only 118 were returned representing a 39.3 percent response rate. The questionnaire was selfadministered in order to distribute it to a variety of locations. The owners of 300 small businesses were identified from a local business directory and personally visited or contacted via email or telephone. The entrepreneurs who agreed to take part formed the research sample. Table 1 shows the demographic characteristics of respondents.

Table 1: Summary of Respondents Demographic Characteristics Profile Gender Male Female Total Age Below 40 years old Above 40 years old Total Ethnic Group Malay Chinese Indian Others Total 78 20 13 7 118 66.1 16.9 11 5.9 100 66.1 16.9 11 5.9 100 66.1 83.1 94.1 100 72 46 118 61 39 100 61 39 100 610 100 70 48 118 59.3 40.7 100 59.3 40.7 100 59.3 100 Frequency Percent Valid Percent Cumulative Percent

International Journal of Entrepreneurship, Volume 14, 2010

Page 29 Table 1: Summary of Respondents Demographic Characteristics Profile Marital Status Single Married Total Education Primary School Secondary School Undergraduate Postgraduate Professional Total Business Sector Trading Services Construction Manufacturing Agriculture Others Total Years in Business Below 9 years 40474 25 years and above Total 60 30 28 118 50.8 25.4 23.7 100 50.8 25.4 23.7 100 50.8 76.3 100 19 48 7 6 6 32 118 16.1 40.7 5.9 5.1 5.1 27.1 100 16.1 40.7 5.9 5.1 5.1 27.1 100 16.1 56.8 62.7 67.8 72.9 100 5 24 58 20 11 118 4.2 20.3 49.2 16.9 9.3 100 4.2 20.3 49.2 16.9 9.3 100 4.2 24.6 73.7 90.7 100 38 80 118 32.2 67.8 100 32.2 67.8 100 32.2 100 Frequency Percent Valid Percent Cumulative Percent

Based on Table 1 above, about 59.3 percent of the respondents are male and 40.7 percent are female. A total of 61 percent of the respondents are aged below 40 years old while 39 percent
International Journal of Entrepreneurship, Volume 14, 2010

Page 30

are above 40 years old. The questionnaires were distributed to different ethnic groups; 66.1 percent were Malay, 16.9 percent were Chinese, 11 percent were Indian and 5.9 percent were distributed to other ethnic groups. In relation to marital status background, 32.2 percent of the respondents are single while 67.8 percent are married. The respondents are well educated, with only 4.2 and 20.3 percent completing only primary school and secondary school, respectively, while 66.1 percent have at least a bachelors degree. No less than 9.3 percent have professional certificates. In respect to the business sector, the questionnaires were distributed to a variety of different fields. However, the service sector shows the highest, 40.7 percent, compared with the other fields. In relation to years in business, 50.8 percent of the respondents have operated their business for less than 9 years, compared with 25.4 percent between 10 and 24 years and 23.7 percent who have operated their business for more than 25 years. RESULTS Evaluation of Stress Variables A wide range of responses to the stress variables was found. A total of 33 items with stress related factors were considered and asked with a range of frequency scores from 1 to 5. The means, the standard deviations and the medians for the stress factors variables based on Online Analytical Processing (OLAP) Cubes are reported in Table 2. Results show that the top five variables that generate stress for Malaysian entrepreneurs are they have no experience in related business field or sector, no commercial experience in conducting business; they are weak and unable to make decisions; hesitate to delegate work; and are emotionally stable (not easily upset) with mean scores of 4.09, 4.08, 3.83, 3.82 and 3.77 respectively.

Table 2: The Stress Variables Based on Mean, Median and Standard Deviation Stress Variables PART B: ENTREPRENEUR CHARACTERISTICS I see myself as someone who is reserved and tends to be quiet prefers the conventional, traditional weak and unable to make decisions is emotionally stable, not easily upset poor imagination 2.91 3.07 3.83 3.77 2.14 3 3 4 4 2 1.049 0.899 0.919 0.91 0.852 Mean Median Std. Dev

International Journal of Entrepreneurship, Volume 14, 2010

Page 31 Table 2: The Stress Variables Based on Mean, Median and Standard Deviation Stress Variables introvert person worries a lot gets nervous easily and agitated dislikes teamwork hesitates to delegate work hesitates to adapt to change PART C: ENTREPRENEURIAL SKILLS As the owner of a business, the entrepreneur unable to visualize life as entrepreneur not confident in meeting customers no experience in related sector no commercial experience in conducting business does not have basic regulatory/formal requirements to comply is not familiar with the rules concerning the acquisition of new customers is not acquainted with marketing and distribution PART D: ENTREPRENEURIAL WORK AND FAMILY Unable to manage time with family Distracted from work due to family worries or problems Limited leisure time due to family activities Too much time spent on work D30. Too much work load 3 2.83 2.76 3.21 2.78 3 3 3 3 3 1.01 0.981 0.913 0.936 1.093 1.87 1.74 4.09 4.08 1.91 1.86 1.89 2 2 4 4 2 2 2 0.75 0.713 0.841 0.837 0.841 0.864 0.827 Mean 2.85 2.87 2.75 2.22 3.82 2.79 Median Std. Dev 3 3 3 2 4 3 0.944 1.091 1.017 1.038 0.849 1.099

PART E: ENTREPRENEURIAL RESPONSIBILITY AND ADDED VALUE High expectation from others Set too high goals E33. Unable to accept failure 1.69 2.73 3.1 2 3 3 0.642 1.05 1.024

International Journal of Entrepreneurship, Volume 14, 2010

Page 32

Evaluation of Coping Mechanism A stepwise OLAP Cubes procedure was calculated with coping mechanisms as the dependent variable against work prioritization, effective communication, disregarding, divert feeling (by doing something fun), networking and regular exercise as the independent variables. Table 3 shows the mean score, standard deviation and median results for each dimension and the overall level of coping mechanisms. The highest mean score is to divert thinking by doing something else (3.98), whereas the highest score for standard deviation is to keep fit by trying to exercise regularly (1.212). Based on the median results the most commonly cited factors for helping cope with stress are keep cool and refuse to be rushed into anything (4.00), express and discuss feelings with others (4.00) and divert thinking by doing something else (4.00).
Table 3: The Coping Variables Based on Mean, Median and Standard Deviation Coping Variables PART F: Coping Mechanism keep cool and refuse to be rushed into anything express and discuss my feelings with others try to keep my emotions under control divert thinking (by doing something fun) spend time with friends try to keep fit through exercise regularly 3.48 3.85 1.89 3.98 2.04 3.25 4 4 2 4 2 3 1.092 1.067 0.749 0.952 0.831 1.212 Mean Median Std. Deviation

CONCLUSION AND RECOMMENDATIONS The current analysis adds to the literature concerning entrepreneurial stress, especially in the Malaysian context. The study fulfilled its purposes, one of which was to provide information about the sources of stress among Malaysian entrepreneurs. Another purpose was to study the factors associated with the coping mechanisms. The conclusions are: Responsibility and added values appear to be sources of contributing stress for Malaysian entrepreneurs. As these factors are crucial, it requires a lot of effort and skill on the part of entrepreneurs. As such, this leads to the experience of stress. Other predictors on the sources of stress for Malaysian entrepreneurs are skills needed and work pressure. Entrepreneurs need to tackle these factors to

International Journal of Entrepreneurship, Volume 14, 2010

Page 33

succeed. Nevertheless, focusing too much on work and the need to acquire numerous skills can cause stress. People problems and family are not considered as stress contributors for Malaysian entrepreneurs, although it is highly rated as one of the stress factors in other countries. Among the effective coping mechanisms to overcome stress among Malaysian entrepreneurs are disregarding, divert thinking (by doing something fun), networking and effective communication. These factors are proven and supported by earlier literature as well.

While every attempt was made to control for extraneous variables, some insignificant limitations of this design might have had an effect on the results of the study. First, the group of entrepreneurs being studied in this research comes from various business operations and sectors. This current research covered entrepreneurs in a variety of business sectors including trading, services, construction, manufacturing, agriculture and other sectors. Each sector may have different implications and definitions of generating stress for entrepreneurs. Second, the population of the research comes from various demographic backgrounds (i.e. age, years in business and marital status). The present study reviewed entrepreneurs from various backgrounds including age, years in business and marital status. The findings may not be applicable to a different demographic range. For instance, entrepreneurs that have run their business for more than ten years may be affected by stress differently and develop alternative coping mechanisms. As noted, entrepreneurs are important as they contribute income to the country. Nevertheless, their personal and social activity appears to be important as it affects their career development. Therefore, it is important for the whole society to support the progress. As a result, by studying their stress areas, it is hoped that they can technically and tactically avoid it. The findings of this study are relevant for practicing and nascent entrepreneurs, support institutions and policy makers as empirical evidence can be used in designing entrepreneurs training and competency-building programmes.

International Journal of Entrepreneurship, Volume 14, 2010

Page 34

REFERENCES
Akande A., (1994). Coping with Entrepreneurial Stress: Evidence from Nigeria. Journal of Small Business Management, Vol.32 (1), pp.83-87. Aun O. E., (1998). Perceived organizational climate, teachers' locus of control and burnout. Unpublished MBA Thesis, Universiti Sains Malaysia, Penang, Malaysia. Bat S. T., (1995). Effect of organizational environment and personal factors on work stress and organizational commitment. Unpublished MBA Thesis, Universiti Sains Malaysia, Penang, Malaysia. Boyd D. P., and Gumpert D.E., (1983). Coping with Entrepreneurial Stress. Harvard Business Review, March/April, pp. 44-46. Choy S.C., Kuppusamy J., and Mazuki J., (2005). Entrepreneurial careers among business graduates: match-making using theory of planned behaviour. International Journal of Entrepreneurship, Vol. 9, pp. 67-90. Clark L. A., and Watson D., (1991). Tripartite model of anxiety and depression: psychometric evidence and taxonomic implications. Journal of Abnormal Psychology, Vol. 100 (12), pp. 316-36. Cooper C. L., Dewe P. J., and Driscoll M. P., (2001). Organizational stress: a review and critique of theory, research and applications. Sage Publications Series. Folkman S., and Lazarus R. S., (1980). An analysis of coping in a middle-aged community sample. Journal of Health and Social Behavior, Vol. 21, pp. 219-239. Gartner W. B., (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, Vol. 10 (4), pp. 696-706. Hall K., and Savery L. K., (1986). Tight rein, more stress. Harvard Business Review, Vol. 23 (10), pp. 1162-1164. Harris J. A., Saltstone R., and Fraboni M., (1999). An evaluation of the job stress questionnaire with a sample of entrepreneurs. Journal of Business and Psychology, Vol. 13 (3), pp.447-455. Havlovic S. J., Keenan J. P., (1991). Coping with work stress: the influence of individual differences. Journal of Social Behavior and Personality, Vol. 6 (7), pp.199212. Johnson D., (1995). Stress and stress management among owner-managers of small and medium-sized enterprises. Employee Counseling Today, Vol. 7 (5), pp. 14-19. Kuan O. W., (1994). The effect of marital status of working women on organizational commitment and work stress, Unpublished MBA Thesis, Universiti Sains Malaysia, Penang, Malaysia. Latack J. C., (1986). Coping with job stress: measures and future directions for scale development. Journal of Applied Psychology, Vol. 71 (3): 377-385. Lazarus R. S., (1998). Fifty Years of the Research and Theory of R. S. Lazarus. Erlbaum, Mahwah, NJ. International Journal of Entrepreneurship, Volume 14, 2010

Page 35

Lazarus R. S., and Folkman S., (1984). Stress, appraisal, and coping. New York: Springer Publishing. Manshor A. T., (2000). Sources of stress at the work place. Academy of Strategic & Organizational Leadership Journal, Vol. 4 (2), pp. 91-97. Mellahi K., and Wilkinson A., (2004). Organizational failure: a critique of recent research and a proposed integrative framework. International Journal of Management Reviews, Vol. 5/6 (1), pp. 21-41. Miller J. F., (2000). Coping with Chronic Illness: Overcoming Powerlessness, 3rd ed. Philadelphia: F. A. Davis Company. Murray T. J., and Forbes D., (1986). Where have all the middle managers gone? Dun's Business Month, pp. 31-34. Nasurdin A. M., and Ramayah T., (2003). The effects of organizational variables on stress among Malaysian managers: does extraversion matter? The Global Business & Economics Research Conference Proceedings, Economic Forum, Vol. 1 (2), pp. 407-411. Ortqvist D., Drnovsek M., and Wincent J., (2007). Entrepreneurs coping with challenging role expectations. Baltic Journal of Management, Vol. 2 (3), pp. 288-304. Parker S. C., (2006). Learning about the unknown: How fast do entrepreneurs adjust their beliefs? Journal of Business Venturing, Vol. 21 (1), pp. 1-26. Pearlin L. I., and Schooler C., (1978). The Structure of Coping. Journal of Health Social Behavior, Vol. 19 (2), pp21. Robertson D., (2004). Stress and the entrepreneur. Bibby Financial Services. Selye H., (1976). The stress of life. New York: McGraw-Hill. Shane S., and Venkataraman S., (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, Vol. 25, pp. 217-226. Shepherd D. A., and Douglas E. J., (2000). New venture survival: ignorance, external shocks and risk reduction strategies. Journal of Business Venturing, Vol. 15 (5/6), pp. 394-411. Solomon M. R., Surprenant C., Czepiel J. A., and Gutman E. G., (1985). A role theory perspective on dyadic interactions: The service encounter. Journal of Marketing, Vol. 49, pp. 99-111. Wincent J., and Ortqvist D., (2006). Role stress and entrepreneurship research: The International Entrepreneurship and Management Journal, Vol. 5 (1), pp. 1-22. Yahya R., (1998). Organizational factors that contribute to teachers' stress. Unpublished MBA Thesis, Universiti Sains Malaysia, Penang, Malaysia.

International Journal of Entrepreneurship, Volume 14, 2010

Page 36

ABOUT THE AUTHORS Syed Zamberi Ahmad, (Ph.D) is an Assistant Professor of International Business and Entrepreneurship Management at Prince Sultan University (PSU). He can be contacted at: College of Business Administration, Prince Sultan University (PSU), Riyadh, Kingdom of Saudi Arabia. E-mail address: [email protected]; [email protected] Siri Roland Xavier is the Deputy Dean of the Bank Rakyat School of Entrepreneurship, University Tun Abdul Razak (UNITAR). He is also the Malaysian National Team leader for the Global Entrepreneurship Monitor (GEM) research project 2009 and the Chief Editor of the Successful Tran-Generational Entrepreneurship Practices (STEP) program. E-mail address: [email protected]

International Journal of Entrepreneurship, Volume 14, 2010

Copyright of International Journal of Entrepreneurship is the property of Dreamcatchers Group, LLC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.