Entrepreneurial Intentions of University Students: Insights for Entrepreneurial Education in Ethiopia (original) (raw)

Abstract

The purpose of this study was to determine the entrepreneurial intention of graduating universities students in Ethiopian and to identify factors which influence students' entrepreneurial behavior. A survey design was employed where 665 final year university students from five universities were randomly selected as participants. Quantitative data were collected through self-evaluation survey questionnaire and analyzed using Pearson Correlation and Logistic Regression. Additionally, data from open-ended questions were used to identify factors which influence students' entrepreneurial behavior. The study found high entrepreneurial intention for final year university students in Ethiopia, but, low propensity to venture into business within two years after graduating. Findings from the Logistic Regression analysis found strong support for perceived feasibility, perceived desirability and course support as predictors of entrepreneurial intention, and to some extent perceived locus of control, but, gender and prior experience in a business had no effect. Barriers that deter entrepreneurial attitude include: poor government support (policies and bureaucracy), institutional issues (lack of start-up capital, business premises, and poor access to adequate and quality inputs and markets), personal issues (lack of self-confidence and motivation, fear of failure, poor entrepreneurial skills and knowledge on opportunity identification), and societal issues (society/family support and perception). From this study, it was concluded that university students recognize entrepreneurship as the way forward for curbing unemployment, but, universities need to equip students with relevant competencies that are appropriate for business start-up. The government on its part should provide positive business environment and proper infrastructure for starting a new business.

Figures (6)

Table 1: Description of the variables 4.0 RESULTS AND DISCUSSIONS

Table 1: Description of the variables 4.0 RESULTS AND DISCUSSIONS

On occupation, less than a third (21.99%) of the parents/guardian own businesses; about 24.06% are salaried or skilled workers while most of the parents (46.05%) were engaged in farming or fishing. However, only 4.14% are casual laborers while 3.75% are retired or engaged in other unspecified jobs. In summary, data show that although a considerable percent of students had experienced working in a business, very few had a chance to learn entrepreneurial skills from home considering that only 21.99% of the parents/guardians were engaged in business. Worth of note is that majority of the parents/guardians were mainly in agriculture (traditional and subsistence farming) and allied activities; meaning, a considerable number of students lack exposure to activities which would initiate creativity or innovativeness.

On occupation, less than a third (21.99%) of the parents/guardian own businesses; about 24.06% are salaried or skilled workers while most of the parents (46.05%) were engaged in farming or fishing. However, only 4.14% are casual laborers while 3.75% are retired or engaged in other unspecified jobs. In summary, data show that although a considerable percent of students had experienced working in a business, very few had a chance to learn entrepreneurial skills from home considering that only 21.99% of the parents/guardians were engaged in business. Worth of note is that majority of the parents/guardians were mainly in agriculture (traditional and subsistence farming) and allied activities; meaning, a considerable number of students lack exposure to activities which would initiate creativity or innovativeness.

Table 3. Probability of creating a business in the next two or five years Societal stand on entrepreneurship is very crucial as a predictor of entrepreneurial behavior. Table 4 oresents results from an item used in the Likert scale measure for perceived desirability. Based on the results. najority of male (61.67%) and female students (52.33%) agree that their intention to become entrepreneurs was ‘0 achieve higher social status while a small proportion (18%) of both male and female students were unsure about he issue. The finding relate with what Herrington and Kelley (2012) found from the GEM study that a high yercentage of Ethiopians believe entrepreneurs have higher status in their community. Tahla Ae Niactwrva ta hho an antroanronour European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online Vol.8, No.22 2016

Table 3. Probability of creating a business in the next two or five years Societal stand on entrepreneurship is very crucial as a predictor of entrepreneurial behavior. Table 4 oresents results from an item used in the Likert scale measure for perceived desirability. Based on the results. najority of male (61.67%) and female students (52.33%) agree that their intention to become entrepreneurs was ‘0 achieve higher social status while a small proportion (18%) of both male and female students were unsure about he issue. The finding relate with what Herrington and Kelley (2012) found from the GEM study that a high yercentage of Ethiopians believe entrepreneurs have higher status in their community. Tahla Ae Niactwrva ta hho an antroanronour European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online Vol.8, No.22 2016

4.3. Correlational Analysis Results presented in Table 5 depict the relationship between entrepreneurial intention and six predictor variables including gender, experience, course support, perceived locus of control (propensity to act), perceived feasibility (self-efficacy) and perceived desirability. Results indicate a positive relationship with entrepreneurial intention for all the predictor variables, but, no significant statistical relationship for the gender variable. However, the coefficients for perceived locus of control, perceived feasibility/self-efficacy and desirability, and course support were significant at 1% probability level while experience was statistically significant at the 5% probability level. Results also indicate that perceived locus of control had a moderate and positive relationship with entrepreneurial intention (r=.445, p< .001). The coefficient of determination (R square) between perceived locus of control and entrepreneurial intention was .198, meaning, 19.8% of the variance of entrepreneurial intention can be explained by a student’s perceived locus of control or propensity to act.

4.3. Correlational Analysis Results presented in Table 5 depict the relationship between entrepreneurial intention and six predictor variables including gender, experience, course support, perceived locus of control (propensity to act), perceived feasibility (self-efficacy) and perceived desirability. Results indicate a positive relationship with entrepreneurial intention for all the predictor variables, but, no significant statistical relationship for the gender variable. However, the coefficients for perceived locus of control, perceived feasibility/self-efficacy and desirability, and course support were significant at 1% probability level while experience was statistically significant at the 5% probability level. Results also indicate that perceived locus of control had a moderate and positive relationship with entrepreneurial intention (r=.445, p< .001). The coefficient of determination (R square) between perceived locus of control and entrepreneurial intention was .198, meaning, 19.8% of the variance of entrepreneurial intention can be explained by a student’s perceived locus of control or propensity to act.

**Significant at the 1% level and *significant at the 5% level (2-tailed) From Table 5, results show a moderate and positive relationship between perceived feasibility/ self- efficacy and entrepreneurial intention (r=.492, p< .001). The coefficient of determination (R square) between perceived feasibility and entrepreneurial intention was .242; meaning, 24.2% of the variance of entrepreneurial intention can be explained by perceived individual’s self-efficacy. Results from Table 5 indicate a moderate and positive relationship between perceived desirability and entrepreneurial intention (r=.425, p< .001). The coefficient of determination (R square) between perceived desirability and entrepreneurial intention was .181 indicating that 18.1% of the variance of entrepreneurial intention can be explained by perceived desirability. From Table 5. course support and entrepreneurial intention had a degree of positive relationship (r=.363.

**Significant at the 1% level and *significant at the 5% level (2-tailed) From Table 5, results show a moderate and positive relationship between perceived feasibility/ self- efficacy and entrepreneurial intention (r=.492, p< .001). The coefficient of determination (R square) between perceived feasibility and entrepreneurial intention was .242; meaning, 24.2% of the variance of entrepreneurial intention can be explained by perceived individual’s self-efficacy. Results from Table 5 indicate a moderate and positive relationship between perceived desirability and entrepreneurial intention (r=.425, p< .001). The coefficient of determination (R square) between perceived desirability and entrepreneurial intention was .181 indicating that 18.1% of the variance of entrepreneurial intention can be explained by perceived desirability. From Table 5. course support and entrepreneurial intention had a degree of positive relationship (r=.363.

Similarly, entrepreneurial intention can be predicted by a student perceived feasibility or self-efficacy. Result indicates that a one unit change in perceived feasibility in the predicted odds ratio (OR=1.734, p< .001) would increase the probability of becoming an entrepreneur by 1.734 points (or 73.4%) other variables held Sonstant. Results from Table 6 reveal that a student’s entrepreneurial intention can be predicted by perceived sirability to be an entrepreneur. It was found that a one unit change in perceived desirability in the predicted ds ratio (OR=1.804, p< .003) would increase the odds of becoming an entrepreneur by 1.804 points (or 80.4%) er variables held constant.

Similarly, entrepreneurial intention can be predicted by a student perceived feasibility or self-efficacy. Result indicates that a one unit change in perceived feasibility in the predicted odds ratio (OR=1.734, p< .001) would increase the probability of becoming an entrepreneur by 1.734 points (or 73.4%) other variables held Sonstant. Results from Table 6 reveal that a student’s entrepreneurial intention can be predicted by perceived sirability to be an entrepreneur. It was found that a one unit change in perceived desirability in the predicted ds ratio (OR=1.804, p< .003) would increase the odds of becoming an entrepreneur by 1.804 points (or 80.4%) er variables held constant.

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