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Advances in Social Sciences Research Journal – Vol. 10, No. 2

Publication Date: February 25, 2023

DOI:10.14738/assrj.102.12102. Mangada, E. (2023). Entrepreneurial Attitudes, Intentions and Motivations among University Students in the National Capital

Region. Advances in Social Sciences Research Journal, 10(2). 21-74.

Services for Science and Education – United Kingdom

Entrepreneurial Attitudes, Intentions and Motivations among

University Students in the National Capital Region

Miguel E. Mangada, PhD, RN, DBA

Faculty, Graduate School, Metro Manila College,

Novaliches, Quezon City, Philippines.

Faculty, College of Nursing,

Systems Plus College Foundation, Angeles City, Philippines

ABSTRACT

Utilizing the descriptive-comparative and descriptive-correlational research

designs, the researcher employed a questionnaire as the principal tool in gathering

data from 518 college students enrolled in the business program of the different

universities in the National Capital Region (NCR) during the school year 2014-2015

through a convenience sampling.The findings of the study revealed that majority of

the university college students belonged to the 20 years old group, were females,

born in the middle sibling order, had parents who reached college, and had an

average monthly income ranging from P30,000 and above, and whose families were

self-employed, and had previous entrepreneurial family experience. The study

indicated that the respondents had a positive attitude towards entrepreneurship.

The respondents were found to have high entrepreneurial intentions. For the push

factors that motivate respondents to become entrepreneurs, the respondents were

much affected by the different push factors, while the pull factors were not very

important to them. The study also found that the exogenous factors hindering the

respondents’ intention of becoming entrepreneurs will be serious problem to the

respondents if they enter the world of entrepreneurship and these will bother them

a lot especially upon starting a business, and so do the endogenous factors.

Furthermore, the study found the following: a) that there was a significant

difference between gender and entrepreneurial attitudes as manifested by the

pvalue of 0.000 which is less than 0.05 or 5%; b) that there was a significant

relationship between the entrepreneurial attitudes and intention of the

respondents as manifested by the p-value which is -0.169 and verbally interpreted

as very low correlation and with the p-value = 0.000 which is less than 0.05 or 5%,

thus, led the researcher to reject the null hypothesis (Ho); c) that there was no

significant relationship between entrepreneurial intentions and motivational

factors as manifested by the p-value of 0.505 and 0.611 which were higher than 0.05

or 5 percent; d) that in terms of pull factors, the entrepreneurial intentions do not

affect the motivational factors or the other way around; e) that the push factors or

the motivational factors do not affect the entrepreneurial intentions of the

respondents. This means that even if how good are the entrepreneurial intentions,

there is a possibility that motivational factors will not be good and vice versa; f) in

terms of exogenous factors, the entrepreneurial intention and hindering factors do

not significantly relate with one another as manifested by the r- value of 0.075 and

also p-value of 0.870 which is greater than 0.05 or 5 percent; and g) when

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endogenous factors were considered, a significant relationship exists between the

entrepreneurial intention and hindering factors.

INTRODUCTION

Davidsson, Lindmark & Olofsson (1995) and Fatoki (2010) cited in Ngek Neneh (2014)

revealed that as early as the 1970s and onward, many western countries have shared the same

experience with respect to large established organizations and businesses being unable to

create a net increase in employment which has resulted in permanent high levels of

unemployment Although the issue of youth unemployment has been recognized and

acknowledged as a universal phenomenon, the youth are beset with problems of high rate of

unemployment and underemployment, and the young Filipinos are not an exception to this

phenomenon.

A survey by the Philippine Statistics Office in 2015 indicated that the unemployment rate in the

Philippines was 6.5 percent in July 2015, down from 6.7 percent a year earlier but increased

to 6.4% as reported in April 2015. But these data excluded the Eastern Visayas region so the

nationwide jobless numbers may be even significantly higher. Among the unemployed persons,

62.6 percent were males. The age groups 15 to 24 years comprised 50.4 percent while the age

groups 25-34 (or 29.5 percent). By educational attainment, 22.2 percent of the unemployed

were college graduates, 13.5 percent college undergraduates, and 33.2 percent were high

school graduates.

Meanwhile, the number of underemployed was 8, 129 in July 2015. More than 50% worked for

less than 40 hours a week and 38.3 percent worked in the agriculture sector, while 44.2 percent

were in the service sector. Those in the industry sector accounted for 17.6 percent.

However, critics have pointed out that the statistics are significantly flawed as the actual

unemployment rate surpasses the statistical data given by the government agency. Moreover,

the National Economic and Development

Authority (NEDA) on Reducing Poverty, Vulnerability and Risks by the World Bank (2013)

observed that although Philippine economy grew at 5 percent in 2012, the overall poverty rate,

which is close to 40 percent has not declined but actually increased in some areas in the

country. While there is a high dependency and reliance on the Philippine government to absorb

and retain this growing number of unemployed people, there is not enough hiring to absorb all

youths seeking civil service employment. Consequently, the youths in the Philippines have

remained disproportionally affected and excluded from the mainstream economy.

Ibon (Manila Times, November 30, 2015) noted that the number of underemployed Filipinos

increased by 933,000 which stood at eight million in July 2015 from 7 million in the same period

in 2014. Ibon stressed that the underemployment rate that is equivalent to 20.3 % was higher

than the 18.8 percent in 2010. It said that there is at least 4.3 million unemployed based on the

real definition of unemployment under which the group continues to include individuals who

have stopped looking for jobs.

The high rate of unemployment among graduates in the Philippines has become a national

concern as the number of graduates with either degrees or diplomas from public and private

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Mangada, E. (2023). Entrepreneurial Attitudes, Intentions and Motivations among University Students in the National Capital Region. Advances in

Social Sciences Research Journal, 10(2). 21-74.

URL: http://dx.doi.org/10.14738/assrj.102.12102

higher educational institutions that join the job market increases each year. Also, while the

increase in enrolment at the public and private higher educational institutions has put more

graduates into the labor market, there has been no increase in the employment rate of these

graduates. As observed each year when companies in the Philippines set job fairs, there is a

tremendous increase in people seeking jobs exceeding the current demand for the services of

these companies but also the skills of new graduates do not match the needs of the labor market.

From the statistical data, the youth are the people mostly affected by the high unemployment

rate in the Philippines. The high unemployment rate among university graduates has also

resulted in high underemployment as there are too many graduates with fewer jobs. Morshidi,

Bakar, Lim and Mohammed (2004) in Ngek Neneh (2014), however, notes that academic

qualifications can no longer secure immediate employment upon graduation, thus requiring

graduates to demonstrate a positive attitude towards the changing job market.

The promotion of youth employment has been one of the priority areas of the Philippine

government. For this reason, a law, Republic Act 10679, otherwise known as the Youth

Entrepreneurship Act, has been enacted in Congress that would inculcate financial literacy in

Philippine schools. The law aims to promote the sustained development of young Filipinos

whose aptitude and skill in the field of finance and entrepreneurship shall be encouraged and

honed through education and specialized training programs.

Nonetheless, in spite of all the efforts being made, unemployment and under-employment have

remained persistently high among the young people. Just like in many countries, developed or

developing, entrepreneurship has been recognized as a solution to the high rate of

unemployment by the Philippine government. As Gree & Thurnik, 2003 cited in Fatoki, Olawale

Olufunso, 2010) said, entrepreneurship is a tool that drives the economy of a nation. Ekore and

Okekeocha (2012) alluded thatcareers in entrepreneurship will provide young graduates with

the opportunity to become financially independent while at the same time contributing to job

creation, innovation, and economic growth. Henley (2007) states that entrepreneurship is an

intentional activity, suggesting that there is a link between entrepreneurship and intention

given that entrepreneurial intentions are formed at least a year prior to the new venture

creation.

In the Philippines, there is a dearth of literature focusing on entrepreneurship specifically on

the intentions of graduating students, their attitude towards entrepreneurship, motivations

and perceived barriers to the formation of new businesses in order to remove or lower entry

barriers and improve business formation - a gap in the literature that needs to be addressed as

it will provide recommendations that will enhance university graduate entrepreneurship, thus

helping to reduce the high graduate unemployment in the Philippines.

Statement of the Problem

The aim of this paper was to assess the entrepreneurial intentions of university students in the

identified universities in the national capital region (NCR) of the Philippines. Specifically, this

study sought answers to the following questions:

1. How may the profile of the university students enrolled at the chosen universities be

described in terms of?

1.1 age

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1.2 gender

1.3 marital status

1.4 highest educational attainment of either parent

1.5 average monthly family income

1.6 sibling order

1.7 previous entrepreneurial experience

1.8 entrepreneurial family background?

2. What is the extent of attitude of the respondents toward entrepreneurship?

3. To what extent is the entrepreneurial intention of respondents?

4. How do the respondents characterize the identified motivating factors on their decision

to start-up a business?

4.1 push factors

4.2 4.2 pull factors

5. How do the respondents perceive the seriousness of the identified hindering factors in

their decision to start up a business?

5.1 exogenous factors

5.2 endogenous factors

6. Do attitudes of respondents significantly differ when grouped according to their profile?

7. Do entrepreneurial intentions of respondents differ when grouped according to their

profile?

8. Do attitudes significantly relate to entrepreneurial intention level of the respondent?

9. Do motivating factors significantly relate to entrepreneurial intentions of the

respondents?

10. Do hindering factors significantly relate to entrepreneurial intentions of the

respondents?

Hypotheses

From the aforementioned questions, the following hypotheses have been formulated and will

be tested at 0.05 level of significance.

1. Attitudes of university students toward entrepreneurship do not significantly differ

when grouped according to profile.

2. Level of entrepreneurial intention of university students does not differ significantly

when grouped according to profile.

3. Attitudes of university students toward entrepreneurship do not

a. significantly relate to their level of entrepreneurial intentions. .

4. Motivations of university students toward entrepreneurship do

b. not significantly relate to their entrepreneurial intentions.

5. Obstacles faced by university students in entrepreneurship do not significantly

relate to their entrepreneurial intentions.

Scope and Limitations of The Study

This study mainly focused on the entrepreneurial intentions of university students, their

attitudes, motivating as well as hindering factors to their decision of starting up a business and

it also looked into the relationship of these factors to their intention of putting up a business as

identified in the problem statement.

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Mangada, E. (2023). Entrepreneurial Attitudes, Intentions and Motivations among University Students in the National Capital Region. Advances in

Social Sciences Research Journal, 10(2). 21-74.

URL: http://dx.doi.org/10.14738/assrj.102.12102

The eligibility criteria for this study were that students had to be bonafide enrollees of any

private university located within the national capital region (NCR) of the Philippines and who

were in their final year in the undergraduate business – related degree programs, which

included any of the following degree programs prescribed by the Commission on Higher

Education ( CHED): Bachelor of Science in Business Administration, Bachelor of Science in

Business Administration in any of the following majors: Marketing, Finance or

Entrepreneurship, Bachelor of Science in Entrepreneurship, and Bachelor of Science in

Accountancy provided that entrepreneurship course is incorporated in any of the above

curricula, regardless of their age, gender, marital status, birth order, average monthly family

income, highest educational attainment of either parent, previous entrepreneurial experience

and entrepreneurial family background. Private universities that offer any of the identified

business-related programs but with no entrepreneurship courses integrated in their business

or business –related degree programs are ineligible to participate in the study. Less than four- year collegiate programs in business offered by these universities were also excluded.

This study was conducted for the whole academic year 2014-2015.

REVIEW OF RELATED LITERATURE

Entrepreneurship

Literature sources have failed to come up with one specific definition which totally describes

entrepreneurship. In an attempt to elaborate on the concept of entrepreneurship, Sathiabama

(2010) nevertheless posited that entrepreneurship is an active, ongoing process of creating

wealth by individuals or groups of individuals. Further, Herrington, Kew, & Kew (2009) pointed

out that an entrepreneur is one who shifts economic resources out of an area of low

productivity into an area of higher productivity and greater yield, and who organizes, manages

and assumes the risk of a business enterprise.

Hisrich & Peters’ (2008) definition of entrepreneurship, however, emphasizes four domains of

being an entrepreneur. Foremost, entrepreneurship involves the creation of something new

with value to the entrepreneur and to the interested parties. The interested parties can be any

individual who is concerned with the new product or service. Secondly, entrepreneurship

requires the devotion of the necessary time and effort. Making a novice idea functional and

operational and bringing it to market is a process with which most entrepreneurs find it

difficult and challenging. Thirdly, entrepreneurship is the taking the necessary risks. The risks

involved in an entrepreneurial process may be of financial, psychological or social nature.

Lastly, the entrepreneur reaps monetary rewards which are frequently recognized as the

determining factor for his success. Nonetheless, most entrepreneurs regard autonomy and

personal gain/satisfaction as the most vital personal rewards.

The European Commission (2008), as cited from World Economic Forum (2009) broadly

defined entrepreneurship to mean an individual’s ability to turn ideas into action. This

encompasses creativity, innovation, and taking calculated risks, as well as the ability to plan

and manage projects in order to achieve goals. This supports everyone in day-to-day life at

home and in society; makes employees become more aware of their work and better able to

seize opportunities and challenges and provides a foundation for entrepreneurs establishing a

social or commercial activity.

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The above definition suggests a wider range of focus, individual involvement and forms of

entrepreneurial organizations. Entrepreneurship in this context does not only refer to profit

making institutions but also includes institutions of a social nature that support people’s lives

and that of the society as a whole. As a result, entrepreneurship does not only cover an

individual who aims to start a business but also employees who have the capacity to seek and

exploit opportunities to improve their work and their working conditions. The role of society

and different entities is an important driver in entrepreneurship.

Stevenson & Jarrilo (2009) as cited in Barringer & Ireland (2010) argued that entrepreneurship

is the process by which individuals pursue opportunities regardless of the resources they

presently control; hence, they are said to be selfemployed individuals. Regrettably, there is no

fix definition for entrepreneurs since people from different fields of study perceived and

defined it differently.

From the perspective of an economist, an entrepreneur is one who makes the combination of

resources to make them valuable. A psychologist, on the other hand, describes an entrepreneur

as one typically driven by certain forces such as the need to acquire or attain something, to

experiment and to accomplish targeted goals. To a businessman, an entrepreneur may be a

threat, an aggressive competitor but may also be an ally, a source of supply, a customer, or

someone who creates wealth for others as well as finds better ways to utilize resources, reduce

waste, and provide jobs to others. For becoming entrepreneurs, they are their own bosses and

they make decision by themselves which offers the prestige of being the person in-charge and

provides a greater possibility of achieving significant financial rewards and achieving personal

and professional goals.

Knight, Drucker, Hart, Stevenson and Dial (2008) as cited in Uddin and Bose (2012) defined

entrepreneurship as a risk-taking behavior which has been carried out for future benefit and

gaining independence and self-control.

Likewise, Uddin & Bose (2012) asserted that being a successful entrepreneur may not be that

easy as it requires long-term planning and business expertise such as developing business

model, combining together a new venture team, generating and managing finance, establishing

partnerships, managing finances, leading and motivating employees. Individuals should be very

cautious at looking at themselves as this helps them to make the right decision in choosing the

right path for getting involved to be self-employed. Therefore, determining the entrepreneurial

intention of a person, his attitudes and motivations before becoming entrepreneur is important

as this may give a person a clear goal about what he wants to be and what to do in

accomplishing his goals, which lead to his success.

Meanwhile, Pihie (2009) stated that entrepreneurship can be measured in two ways: Actual

entrepreneurship, meaning, people have actually started a business; and entrepreneurial

intention, suggesting that people are intending to start a business). He further established in

his study that there is a strong correlation between entrepreneurial intention and actual

behavior.

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espoused by these organizations. Entrepreneurship education becomes an important aspect in

its bid for economic growth and development of nations.

In the Philippines, entrepreneurship education was pioneered by De La Salle University when

it offered a Bachelor’s degree in entrepreneurship in 1983 and the Master of Science in

Entrepreneurship in 2003. In 1999, Asian Institute of Management (AIM) offered the Master’s

degree program in entrepreneurship (Master in Entrepreneurship) which ran for nine years (

1999-2008). The program was eventually spun-off from the Asian Management Institute in

2007 and is now under ACE Center for Entrepreneurship and Management Education, Inc., in

partnership with the Ateneo Graduate School of Business. In 2005, the Commission on Higher

Education ( CHED) issued CHED Memo Order ( CMO) No. 17 series of 2005, formally creating

the Bachelor of Science in Entrepreneurship . This memorandum from (CHED) mandated all

undergraduate programs offering entrepreneurship training and/or specialization to be called

Bachelor of Science in Entrepreneurship.

As cited by Garavan & O'Cinneide (1994) in the work of Ooi, Selvarajah & Meyer (2012), the

most commonly cited objectives of entrepreneurship education and training programs are:

• to acquire knowledge germane to entrepreneurship,

• to acquire skills in the use of techniques, in the analysis of business situations, and in the

synthesis of action plans,

• to identify and stimulate entrepreneurial drive, talent and skills,

• to undo the risk-adverse bias of many analytical techniques,

• to develop empathy and support for all unique aspects of entrepreneurship,

• to devise attitudes towards change; and

• to encourage new start-ups and other entrepreneurial ventures.

Moreover, according to Nabi and Holdeni (2011), entrepreneurship education aims to produce

graduate entrepreneurship that explains the interaction between the graduate as a product of

a higher education institution and their preparedness to pursue their career as an

entrepreneur. They said that a lot of graduates look for employment in government and private

institutions after they have gone through a course in entrepreneurship. However, to some, self- employment is not an issue in spite of the fact that the government considered the private

sector as the engine of growth.

Ediagbonya (2013) pointed out that entrepreneurship education is the kind of education given

to people with a view to developing entrepreneurship qualities properly followed up with

support services for smooth take off and successful running of business. Entrepreneurship

education seeks to provide student (especially those in tertiary schools) with the knowledge,

skills and motivation to encourage entrepreneurial studies in a variety of setting. Schools for

entrepreneurship are an important link between theoretical knowledge and practical

involvement in the market.

As cited by Ismail, Khalid, Othman, Abdul Rahman, Mohammed & Shekh (2009) in the works of

Zahariah Mohd Zain, Amalina Mohd Akram & Erlane Ghani (2011), entrepreneurial education

at tertiary level has also become as a vital component of many curricula in higher learning

institutions (HEIs). As potential businessmen can be seen among those who are presently

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desire to do something because of external rewards such as money and awards. Ashley Cotleur,

Kings and Solomon (2009) observed that the intrinsic motivators for entrepreneurs entail

being their own boss, being more in control of their own destiny and having ultimate

responsibility for the success of the business, while the extrinsic motivators are expected

monetary rewards reflected in salary and benefits.

With regard to pull and push factors, Eijdenberg & Masurel (2013) view pull factors as factors

that attract people to become self-employed (positive motivations), while push factors are

factors that force people to engage in various forms of entrepreneurship (negative

motivations).

As posited by Shamim (2011), pull factors are internally driven motives (such as need for being

their own boss; a need for autonomy; a need for achievement; a need for power; independence

and flexibility; wealth creation, opportunities in the market, to take advantage of, to provide job

security; my creative talent; be my own boss; to realize my dream; I enjoy taking risk; earn a

reasonable living enjoying a quality life). On the other hand, Kirkwood, 2010 and Still & Soutar,

2010) stated that push factors are externally driven motives (e.g. unemployment, poverty,

certainty of a client war, niche market, interest in a subject).

The factors contributory to the development of entrepreneurship, small entrepreneurship in

particular, can be broadly divided into ‘pull’ and ‘push’ elements (Turner, 2007; Epstein 2008

as cited in Ngek Neneh (2014). Pull factors include all those reasons that emphasize

entrepreneurship as positive and desirable alternative that pull the entrepreneurs to their

choice. The pull or ambitious factors motivate the entrepreneurs to initiate the ventures.

Needless to say that ambitions differ among individuals on the basis of their personal

characteristics. Therefore, ambitions which nourish the achievement motivation bring about

economic growth and development. The ambition factors do not always influence an individual

to undertake an activity. Sometimes other factors compel or push one to take initiative to start

a business. The factors which force people to start business enterprises are termed as push or

compelling factors. It is very difficult to draw a dividing line between entrepreneurs’ ambitions

and compulsions.

Islam (2012) conducted a study which endeavored to identify the reasons why the

entrepreneurs become motivated and are compelled to establish business enterprises. Among

400 small entrepreneurs from six districts of Dhaka and Rajshahi divisions who were

interviewed personally and over telephone using an interview schedule, their reasons for

becoming motivated were as follows: making money for family, self-employment, gaining

higher social status, use of personal knowledge and previous experience, family business

tradition, and less complexity but more profitability nature of business as the pull factors while

lack of higher formal education, curse of unemployment, dissatisfaction with previous

occupation, and family hardship or pressure as the push factors.

Asuamah, Eernest and Amuah (2013) assessed the entrepreneurial intentions among Sunyani

Polytechnic students, the factors that motivate and hinder their intention to become

entrepreneurs. One-hundred thirty-six students comprising of 94 males and 42 females

constituted the sample size of the study. Results indicated that there is high entrepreneurial

intention among the respondents. It was also revealed that there are important motivators for

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Mangada, E. (2023). Entrepreneurial Attitudes, Intentions and Motivations among University Students in the National Capital Region. Advances in

Social Sciences Research Journal, 10(2). 21-74.

URL: http://dx.doi.org/10.14738/assrj.102.12102

intention as well as obstacles to setting up one’s firm. The finding again indicated that gender,

age & religion affect responses given by respondents.

Fatoki (2010) studied South African graduates, and found five motivators of entrepreneurial

intentions: employment, autonomy, creativity, economic and capital. While these motives are

important, spirituality select appears in the literature.

Research suggests that many entrepreneurs may not be motivated primarily by wealth, and

they are eager to become entrepreneurs in order to make a difference or create change for

social progress (Rindova, Barry & Ketchen, 2009, cited by Kauanui, 2010). Yalcin & Kapu (2008)

classified four entrepreneurial motives: financial gain, recognition, freedom, and family

tradition. Financial gain refers to increases in personal wealth afforded by entrepreneurial

activities. Recognition is an internal motive characterized by the need for achievement and self- actualization. The freedom motive refers to the independence and flexibility that

entrepreneurship allows. Finally, family tradition is the motivation to continue a family

business. They also reviewed problems faced by entrepreneurs in transitional economies, such

as high supplier prices, difficulty in securing business loans, and red tape.

Drost (2010) stated entrepreneurial self-efficacy mediates the relationship between

entrepreneurship education and entrepreneurial intention because entrepreneurship course

may enhance student self-confidence level about their ability to become entrepreneurs, highly

believe themselves are capable of managing their own firms properly and to succeed, thereby

increase they entrepreneurial intention. Conversely, some findings highlighted

entrepreneurship education as a deterrent factor in demonstrating entrepreneurial intentions

of university students and their self-assessed entrepreneurial skills (Graevenitz, Harhoff &

Weber, 2010; Hill, 2011). These surprising results are due to the fact that students have

obtained more realistic perspectives of being entrepreneurs or somehow after taking

entrepreneurship course, the perception of students towards entrepreneurship might change,

hence, reducing their interest on entrepreneurship (Oosterbeek et al., 2008).

Sociodemographic Characteristics and Entrepreneurial Intentions

Ismail et al. (2011) noted that in addition to personality traits, several additional individual

difference variables have been found to predict entrepreneurship. Demographic factors

affecting entrepreneurship are age, sex, education, work experience and role models. In

addition, individual difference variables such as age, gender, and education can impact on

entrepreneurial behaviors.

Basu & Virick (2010) explored and evaluated entrepreneurial intentions and their antecedents

among 123 students at San Jose State University in US by building on Fishbein and Ajzen’s

(1975) model and revealed that prior exposure to entrepreneurship education has a positive

effect on students’ attitudes toward a career in entrepreneurship and on perceived behavioral

control or entrepreneurial self-efficacy. At the same time, individuals’ prior exposure to

entrepreneurship in practice, both direct and indirect through their family background in

business, is significantly linked to their attitudes, norms, and perceived behavioral control

regarding entrepreneurship. Having a selfemployed father is significantly related to the

student’s positive attitudes, stronger norms, and greater self-efficacy with respect to

entrepreneurship.

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lack of business skill, lack of planning and long-sighted and excessive risk, high operating

expenses, lack of working capital/ investment, fund and lack of good suppliers).

Likewise, Rae & Woodier (2010) elucidated that the factors hindering graduate career choices

and entrepreneurship at the University of Derby were the lack of awareness, financial

uncertainty, lack of relevant working experience, limited entrepreneurship guidance and

know-how in setting up of a business, and the lack of confidence, creativity and innovative

ideas.

In a similar vein, Venesaar, Kolbre and Piliste (2011) established that factors such as the lack

of business ideas, insufficient knowledge and skills and fear of business failure are inhibitors to

starting a business at the Tallinn University of Technology in Estonia. Wang and Wong’s (2010)

study on the entrepreneurial intention among undergraduate students in Singapore identified

the obstacles of entrepreneurial intentions to be inadequate business knowledge and perceived

risk.

On the other hand, Fatoki, (2010) found that the obstacles to entrepreneurial intention among

graduate students in South Africa were inadequate capital, inadequate support from the

government, economy, and crime. Furthermore, Fatoki and Chindoga (2011) added that

exogenous factors such as the fear of failure, lack of business skills and lack of willingness to

take risk were obstacles to youth entrepreneurship in South Africa. Moreover, Akpomi (2010)

examined the entrepreneurship among graduates-to-be ofbusiness/management faculties and

economic development in Nigeria and found that factors, such the inadequate preparation to

face the demands of running a business, lack of take-off funds/sponsorship and the poor

attitude of Nigerians towards purchasing made-in Nigeria goods to hinder entrepreneurial

intentions. In addition, Yeboah, Kumi and Awuah (2013) pointed out that the biggest obstacle

to entrepreneurial intention among Sunyani Polytechnic marketing student in Ghana is lack of

collateral security.

THEORETICAL FRAMEWORK

This study is anchored on the theory of planned behavior (TPB) developed by Ajzen (1991)

and the theory explicitly espoused by Hannan, Hazlett, and Leitch (2004 as cited in Segumpan

and Abu Zahari (2012). Azjen’s theory helps one to understand how he/she can change the

behavior of people. The central factor in Ajzen’s (1991) TPB is the individuals’ intentions to

perform a specific behavior. Intentions are assumed to be the motivation to certain behavior.

Thus, the stronger the intention to perform certain behavior, the more likely it will be

performed.

Ajzen (1991) elaborated three factors in his theory, which are crucial in changing the intention

and the actual behavior. First of all, the belief and attitude somebody has toward the behavior.

He explains that attitude towards a behavior is a reflection of the individual’s appraisal of the

behavior, and the appraisal may be placed along a continuum running from favorable to

unfavorable. He indicates that the more favorable the appraisal the greater the intention. A

student could, for instance, have a positive attitude toward entrepreneurship because one of

the parents is an entrepreneur.