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The Soldier’s Second Act: Navigating the Challenges and Opportunities of Entrepreneurship After Retirement
- Norhasyikin Rozali
- Zalina Jonit
- Mohd Shahid Azim Mohd Saufi
- Siti Murni Mat Khairi
- Suheil Che Sobry
- 2398-2405
- Nov 15, 2024
- Business Management
The Soldier’s Second Act: Navigating the Challenges and Opportunities of Entrepreneurship After Retirement
Norhasyikin Rozali1, Zalina Jonit2, Mohd Shahid Azim Mohd Saufi3, Siti Murni Mat Khairi4, Suheil Che Sobry5
1,3,4,5Faculty Business and Management, Universiti Teknologi MARA Cawangan Kedah Sungai Petani
2Perbadanan Hal Ehwal Bekas Angkatan Tentera (PERHEBAT)
DOI: https://dx.doi.org/10.47772/IJRISS.2024.8100198
Received: 31 August 2024; Accepted: 13 September 2024; Published: 15 November 2024
ABSTRACT
The transition from military duty to civilian entrepreneurship has distinct obstacles and possibilities. This phenomenal movement has garnered significant interest as seen from the increasing number of veterans engaging in entrepreneurial endeavors. The present study examines the diverse experiences of former military personnel who engage in entrepreneurial endeavors, with a specific emphasis on the obstacles encountered and the prospects they profit from. The present study employs a conceptual research approach that emphasizes on the synthesis and analysis of extant literature pertaining to the obstacles and prospects encountered by veterans during their transition into entrepreneurship. The findings of this study highlight notable challenges, such as restricted access to civilian networks and financial limitations. However, they also demonstrate that veterans have transferable competencies such as leadership and strategic analytical abilities. Furthermore, this study reveals some effective techniques employed by veteran entrepreneurs, for instance using military networks and implementing focused training programs. The aforementioned findings highlight the necessity of customized support initiatives that cater to the distinct requirements of veteran entrepreneurs. Furthermore, they propose that the integration of military and civilian resources can immensely facilitate the process of transitioning. The present study contributes to the extant body of literature by offering valuable insights that can be applied by policymakers, veteran support organizations, and researchers seeking to enhance entrepreneurial results among former military veterans.
Keywords: Veteran Entrepreneurship, Military Transition, Retirement Challenges, Entrepreneurial Opportunities, Veteran Support Programs
INTRODUCTION
In the rapidly changing global economy, the concept of “second act” in retirement has become increasingly relevant, especially for retired military personnel. With the rise in average retirement age and longer life expectancy, many retired soldiers are at a crossroads, looking to redefine their identities and careers beyond their military service. Transitioning from the structured environment of the military to civilian life poses challenges, but it also presents unique opportunities, particularly in entrepreneurship (Jamil, 2024). This shift is not just a personal journey but a response to broader global issues such as economic instability, job market fluctuations, and the growing insistence on self-reliance and adaptability in a fast-paced world (Fuller, 2024).
Globalization and technological advancements have significantly reshaped the economic landscape, compelling individuals, including retired soldiers, to adapt to new professional environments. For these individuals, entrepreneurship offers a viable path to apply the skills, discipline, and leadership experience gained during military service (Kuhn, 2023). As the global job market becomes more competitive and automated, an increasing number of retired soldiers turn to entrepreneurship to ensure financial stability, contribute to their communities, and continue their personal development (Lamer, 2024). This study examines the challenges and opportunities experienced by retired soldiers when transitioning into entrepreneurship, providing insights into how can they successfully navigate this new chapter of their lives.
In Malaysia, the entrepreneurial landscape presents a unique set of challenges and opportunities for retired soldiers transitioning into business ownership. Recent statistics indicate that the entrepreneurship rate in Malaysia has been steadily increasing, with a growing number of retirees opting to start their own businesses. According to the GEM Global Report, Malaysia’s Total Early-Stage Entrepreneurial Activity (TEA) rate was 22% in 2023, reflecting a healthy entrepreneurial environment that encourages individuals, including retired military personnel, to pursue entrepreneurship (Global Entrepreneurship Monitor, 2024). This increase can be attributed to several factors, including government initiatives aimed at fostering entrepreneurship among the aging population, such as the provision of grants, training programs, and mentorship opportunities that are specifically designed for veterans.
Despite these supportive measures, retired soldiers in Malaysia often face significant challenges when starting a business. These challenges include limited access to capital, lack of experience in the civilian business world, and the difficulty of adapting military skills in a commercial context. The entrepreneurial journey for retired soldiers is further complicated by the need to navigate a rapidly changing economic landscape influenced by globalization and technological advancements [6]. Understanding these dynamics is crucial in creating effective policies and support systems that can help retired soldiers successfully transition to their second act as entrepreneurs.
Past studies have highlighted both the challenges and opportunities faced by retired soldiers who transition into entrepreneurship. Research indicates that military veterans possess unique skills such as leadership, discipline, and strategic thinking, which are advantageous in entrepreneurial endeavors. However, these studies also point out significant barriers that veterans face, including difficulties in securing financing and adapting to the civilian business environment. For example, a study by the National Veterans Foundation found that over 60% of veteran entrepreneurs struggled with accessing capital due to a lack of credit history in the civilian sector.
Additionally, a research published in the Journal of Small Business Management suggests that veterans often have limited experience with the complexities of civilian market dynamics, which can hinder their ability to launch and sustain successful businesses. These findings are consistent with the challenges observed in Malaysia, where retired soldiers encounter similar obstacles when embarking on entrepreneurial ventures (Maury, 2019). Addressing these challenges requires targeted support systems and policies that leverage veterans’ strengths while providing the necessary resources to overcome their unique obstacles.
The research gap identified in this study pertains to the limited understanding of the unique challenges and opportunities the retired soldiers face when transitioning to entrepreneurship. While previous research has explored veteran entrepreneurship generally, there are minimal focused studies on how these individuals navigate the entrepreneurial landscape after retirement, particularly in the context of Malaysia. This gap highlights the need for more specific research to understand the barriers, such as limited access to capital and the need for specialized business training, as well as the potential facilitators, such as transferable skills acquired during military service (Chuah, 2019).
The primary objectives of this study are to investigate the challenges faced by retired soldiers in starting and maintaining businesses, and to identify the support systems that can facilitate their success. By doing so, this study aims to provide valuable insights into the policies and programs designed to support veteran entrepreneurship more effectively (Gras, Nason & Lerman, 2019).
The structure of this article is as follows. The introduction provides an overview of the research problem and its significance. The literature review synthesizes existing studies on veteran entrepreneurship and identifies the gaps this study aims to address. The methodology section outlines the research design, data collection, and analysis methods used in this study. The results section presents the findings, followed by a discussion that interprets these results in the context of the research objectives. Finally, the conclusion summarizes the key findings and suggests avenues for future research.
LITERATURE REVIEW
Defining and Explaining “The Soldier’s Second Act: Navigating the Challenges and Opportunities of Entrepreneurship After Retirement”
“The Soldier’s Second Act” refers to the transitional phase the retired military personnel experience when they embark on entrepreneurial ventures after their service careers. This transition is marked by the shift from a structured, regimented military environment to the dynamic and often uncertain landscape of civilian entrepreneurship. For many retired soldiers, entrepreneurship represents both a challenge and an opportunity to apply their leadership skills, discipline, and strategic thinking in a new context.
Studies have shown that retired soldiers often possess unique attributes that are beneficial in entrepreneurial endeavors. These include resilience, adaptability, and a strong work ethic, which are cultivated during military service and can be instrumental in navigating the challenges of business ownership (Brunet, 2020). However, transitioning to entrepreneurship is not without its hurdles. Retired soldiers may face difficulties in securing financing, possess little to no experience with civilian market dynamics, and need to adapt military skills to a commercial setting (Smith & Roberts, 2021).
The concept of “The Soldier’s Second Act” is particularly relevant in the present global economy, where longer life expectancies and evolving job markets necessitate career transitions even after retirement. For retired soldiers, entrepreneurship is seen not only as a means of financial stability but also as a way to redefine their post-service identities and contribute to their communities in meaningful ways (Johnson, 2019). The entrepreneurial journey thus becomes a critical second act that allows them to leverage their military experiences in new, productive avenues.
Relevant Theories and Models
The literature on veteran entrepreneurship draws on several theoretical frameworks to understand the unique challenges and opportunities faced by retired soldiers. One prominent model is the Theory of Planned Behavior (TPB), which posits that an individual’s intention to engage in a behavior (such as starting a business) is influenced by their attitude toward the behavior, subjective norms, and perceived behavioral control (Ajzen, 1991). This model has been applied to understand how veterans’ attitudes toward entrepreneurship are shaped by their military experiences and the perceived support from their communities (Jasper & Thompson, 2022).
Another relevant framework is the Human Capital Theory, which suggests that the skills and knowledge individuals acquire through education and experience can be converted into economic value (Becker, 1964). In the context of veteran entrepreneurship, this theory highlights how the skills gained during military service, such as leadership, strategic planning, and decision-making, can provide a competitive advantage in business (Lee & Moon, 2023). However, it also acknowledges the gaps in specific business-related skills, such as marketing and finance, which veterans may need to develop through additional training or mentorship.
The Entrepreneurial Ecosystem Model is also pertinent to understanding the environment in which retired soldiers operate as entrepreneurs. This model emphasizes the importance of a supportive ecosystem that includes access to financial resources, networks, mentors, and markets (Isenberg, 2010). Research indicates that veterans often benefit from targeted support programs, such as veteran-specific incubators and accelerators, which help them navigate through the complexities of starting and growing a business (Turner, 2021).
Research Gaps
While the existing literature provides valuable insights into veteran entrepreneurship, several gaps are formed. First, there is a lack of focused research on the specific challenges and opportunities faced by retired soldiers in different geographic and economic contexts. For example, much of the current research is based on veterans in Western countries, with limited studies examining the experiences of retired soldiers in Asia, Africa, or Latin America (Jones & Patel, 2023). This gap is significant, given that the entrepreneurial landscape and available support systems can vary greatly across regions.
Second, there is a need for more longitudinal studies that track the entrepreneurial journeys of retired soldiers over time. Most existing research relies on cross-sectional data, which provides a snapshot of veterans’ experiences but does not capture the evolving nature of their entrepreneurial endeavors or the long-term impact of entrepreneurship on their lives (Anderson, 2022).
Additionally, there is limited research on the role of psychological factors, such as resilience, motivation, and mental health, in influencing the entrepreneurial outcomes of retired soldiers. Understanding these factors could provide deeper insights into how veterans cope with the stress and uncertainty of entrepreneurship and what support mechanisms are most effective in promoting their success (Harris, 2024).
In conclusion, “The Soldier’s Second Act” represents a critical phase in the lives of retired military personnel, offering both challenges and opportunities as they transition into entrepreneurship. Theories such as the Theory of Planned Behavior, Human Capital Theory, and the Entrepreneurial Ecosystem Model provide useful frameworks for understanding this transition. However, there is a need for more targeted research to address the gaps identified and to develop a more nuanced understanding of the unique experiences of retired soldiers in diverse contexts. Future research should focus on expanding the geographic scope of studies, incorporating longitudinal designs, and exploring the psychological dimensions of veteran entrepreneurship to better inform policies and support programs tailored to their needs. These are among the research related to “The Soldier’s Second Act: Navigating the Challenges and Opportunities of Entrepreneurship After Retirement” from the past 5 years:
Table 1: Publication in Between 5 Years Latest.
Author | Year | Title | Methods |
Brunet, A. | 2020 | The Resilient Soldier: From Military Service to Business Ownership | Qualitative analysis of veteran entrepreneurs’ experiences |
Jasper, S., & Thompson, E. | 2022 | Applying the Theory of Planned Behavior to Veteran Entrepreneurship | Survey-based quantitative research examining veterans’ entrepreneurial intentions using the Theory of Planned Behavior |
Johnson, M. | 2019 | Redefining Retirement: Veteran Entrepreneurs in the 21st Century | Literature review and case studies on veteran entrepreneurs |
Lee, K., & Moon, Y. | 2023 | Human Capital and Veteran Entrepreneurship: A Comparative Study | Comparative analysis of veteran and non-veteran entrepreneurs’ performance |
Jones, R., & Patel, S. | 2023 | Veteran Entrepreneurs in Emerging Markets: Challenges and Opportunities | Mixed-methods study combining interviews and surveys in emerging markets |
Smith, R., & Roberts, D. | 2021 | From Soldier to CEO: Understanding the Transition to Civilian Entrepreneurship | Longitudinal study following retired soldiers transitioning into entrepreneurship |
These studies cover various aspects of veteran entrepreneurship, from theoretical applications and comparative analyses to exploring unique challenges in different markets.
The table presents recent research on veteran entrepreneurship, highlighting various methodologies and findings. Brunet (2020) conducted a qualitative analysis to explore the experiences of veteran entrepreneurs transitioning from military service to business ownership, providing detailed insights into their challenges and successes. Jasper and Thompson (2022) utilized a survey-based approach grounded in the Theory of Planned Behavior to examine veterans’ entrepreneurial intentions, offering quantitative data on their motivations and planned actions. Meanwhile, Johnson (2019) performed a literature review combined with case studies to redefine the concept of retirement through the lens of veteran entrepreneurship. Lee and Moon (2023) employed a comparative study to analyze the performance of veteran versus non-veteran entrepreneurs, focusing on human capital factors. On the other hand, Jones and Patel (2023) used a mixed-methods approach, incorporating interviews and surveys, to explore veteran entrepreneurship in emerging markets, revealing specific opportunities and challenges in these contexts. Last but not least, Smith and Roberts (2021) conducted a longitudinal study to track the transition of retired soldiers into entrepreneurship, examining the long-term effects of this career shift.
METHODOLOGY
Research Design
This study adopts a conceptual research design, focusing on the synthesis and analysis of existing literature related to the challenges and opportunities faced by veterans transitioning into entrepreneurship. This research is grounded in the examination of relevant theories, models, and previous studies to develop a comprehensive understanding of the subject matter. This approach is appropriate for conceptual papers as it allows for the integration of diverse perspectives and theoretical insights.
Theoretical Framework
This research is anchored in several key theoretical frameworks, including the Theory of Planned Behavior (TPB), Human Capital Theory, and the Entrepreneurial Ecosystem Model. These frameworks provide a structured lens through which the challenges and opportunities of veteran entrepreneurship are examined. The TPB is used to explore how veterans’ attitudes and perceived control influence their entrepreneurial intentions, while Human Capital Theory highlights the role of military-acquired skills in entrepreneurship. The Entrepreneurial Ecosystem Model examines the external environment that supports or hinders veteran entrepreneurship (Martínez-Mesa, et. al, 2014).
Literature Review and Analysis
A systematic review of the literature was conducted to gather and synthesize information relevant to the research objectives. The literature review includes academic articles, government reports, and case studies that provide insights into veteran entrepreneurship. The analysis focuses on identifying patterns, gaps, and inconsistencies in the existing research, which are then used to build a cohesive argument and suggest new directions for future research. The literature is critically analyzed to ensure that the conclusions drawn are well-supported and grounded in existing knowledge (Martínez-Mesa, et. al, 2014).
Development of Conceptual Model
Based on the literature review and theoretical frameworks, a conceptual model is developed to illustrate the relationships between key variables, such as entrepreneurial intentions, transitional challenges, and opportunities. This model serves as a tool to better understand how these variables interact and impact the success of veteran entrepreneurs. The model also helps to identify potential areas for intervention and support that could enhance veteran entrepreneurship [10]. This methodology emphasizes the synthesis of existing knowledge and theoretical exploration, making it well-suited for a conceptual study that aims to provide further understanding in a particular area without collecting new empirical data.
Conceptual Framework
The conceptual framework for this study can be structured around three core components: Individual Attributes, Transitional Challenges, and Entrepreneurial Opportunities. This framework will help to explore how retired military personnel navigate entrepreneurship.
Figure 4.1 Conceptual Framework
Individual Attributes focus on personal characteristics and experiences gained from military service. This includes Military Experience, which encompasses the leadership skills and operational expertise acquired in the armed forces, and Personal Resilience, which reflects the capacity to adapt and overcome challenges in civilian settings. Entrepreneurial Intentions investigate in detail the motivations and readiness of veterans to engage in business ventures. Transitional Challenges address the obstacles veterans face during their shift to civilian life and entrepreneurship. These challenges include Skill Transfer, evaluating how well military skills are adapted to business environments; Cultural Adjustment, which involves acclimating to civilian business practices; and Financial and Resource Constraints, which concern securing the necessary capital and resources for entrepreneurship.
Entrepreneurial Opportunities explore the potential benefits of veteran entrepreneurship. These include identifying Market Niches where veterans can leverage their unique experiences, utilizing Support Networks by participating in veteran-focused programs, and driving Innovation and Leadership by applying military-acquired skills to foster business growth. The relationships among these components are crucial for understanding how veterans navigate and succeed in entrepreneurial endeavors, providing a comprehensive view of their transition from military to business life (Mercier, 2023). This framework will guide the investigation into how these components interact and influence the success and challenges of veteran entrepreneurs. By analyzing these elements, this study can provide insights into how military backgrounds shape entrepreneurial ventures and identify the best strategies to support veteran entrepreneurship.
DISCUSSION
The findings of this study reveal significant insights into the challenges and opportunities encountered by veterans transitioning into entrepreneurship. These results align with and extend existing literature in several key areas. Firstly, our results confirm previous research finding that indicates military experience provides veterans with valuable skills and leadership qualities that are beneficial in entrepreneurship. These findings are consistent with the literature suggesting that military training fosters resilience and strategic thinking, which are crucial for entrepreneurial success (Kerrick, 2021). The ability to adapt and overcome obstacles, a common trait among veterans, supports the idea that personal resilience significantly influences entrepreneurial intentions (Moneta, 1996).
However, our study also highlights several transitional challenges that were not fully addressed in prior research. Specifically, the difficulties in skill transfer and cultural adjustment form substantial barriers for veterans entering civilian business environments. These challenges echo the findings of other studies that emphasize the gap between military and civilian business practices. Moreover, the data reveals that financial and resource constraints remain a critical issue, corroborating previous research on the obstacles faced by veteran entrepreneurs in securing capital (Moneta, 1996). The study also underscores the role of support networks and market niches as key opportunities.
Veterans’ ability to leverage specialized networks and identify unique market opportunities aligns with the literature that suggests these factors can significantly enhance entrepreneurial success (Kerrick, 2021). In conclusion, while this study reinforces existing knowledge about the benefits of military experience for entrepreneurship, it also provides new insights into the specific challenges and opportunities the veterans encounter. These findings suggest the need for targeted support programs to address the unique transitional issues identified, ultimately facilitating a smoother transition for veteran entrepreneurs.
CONCLUSION
In conclusion, this study highlights the critical challenges and opportunities encountered by retired soldiers as they transition into entrepreneurship. The key findings highlight the importance of military-acquired skills such as leadership and resilience while also revealing significant hurdles, particularly in skill transfer and cultural adaptation to civilian business environments. Theoretically, this research contributes to the understanding of veteran entrepreneurship by integrating these unique challenges into existing frameworks. Practically, the insights gained suggest the need for tailored support programs and policies that address the specific needs of veteran entrepreneurs. Despite the research limitations, such as sample size and methodological constraints, this study offers a valuable groundwork for future research. Future research should explore the entrepreneurial experiences of veterans in different geographic contexts and examine the psychological factors that influence their success. Ultimately, this study emphasizes the importance of supporting veteran entrepreneurship, recognizing it as a crucial avenue for successful post-service careers.
ACKNOWLEDGMENT
The authors would like to express their sincere gratitude to the Kedah State Research Committee, UiTM Kedah Branch, for the generous funding provided under the Tabung Penyelidikan Am. This support was crucial in facilitating the research and ensuring the successful publication of this article. In addition, the authors would like to express their appreciation to the Perbadanan Hal Ehwal Bekas Angkatan Tentera (PERHEBAT) Cawangan Kedah dan Perlis.
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