Entrepreneurial Intentions Of Uitm Perlis Students Commerce Essay

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An entrepreneur is a person who started a new business where there was none before (W.B. Gartner, 1985). The entrepreneur term is derived in French economics since 17th and 18th, and it has many significant meaning and rich history (Gregory, 2001). An entrepreneur is someone who takes responsibility in making judgmental decision on the use of resources to create a venture (Hebert and Link, 1989). The process of the entrepreneurs created and developed to make the profit can define as entrepreneurship (Dabson, Brian and Marcoux, 2003).

Different researchers have the different point of view toward the definition of "entrepreneurship". Ucbasaran (2001) said that the term of "entrepreneurship" has no generally accepted definition. OECD (1998); Praag (1999); Lumpkin and Dess (1996); Bull and Willard (1993) support the argument of the term of "entrepreneurship" that does not have the general accepted definition; they argued the definition of entrepreneurship is largely depending on the research focus on which area.

In Malaysia, the entrepreneurship development was growing steadily. Many traders from China, India, Portugal, and others are coming to Malacca and trade with other traders. There are many policies in Malaysia that support the entrepreneurs, including funding, physical infrastructure and business advisory services. Comparing with the total student IPT in Malaysia, there are only 1 % which is about 1034 numbers of graduates who want to be an entrepreneur as a career option (Utusan Malaysia). Seeing entrepreneurship as a driving force of regional economy and an effective way to ease employment pressure of university students, the Malaysia government has made great efforts to support entrepreneurial behaviors in order to increase the intention of undergraduate to be an entrepreneur in line with Vision 2020.

There are many institutions are helped to develop entrepreneurship, for example, Majlis Amanah Rakyat (MARA) that focusing on entrepreneurship training. Ministry of Entrepreneur is coordinating all the matters regarding to the entrepreneurship while Small and Medium Industries Development Corporation (SMIDEC) is responsible in coordinating the development of SMIs and other institutions. Previously, the researchers view entrepreneurship as one of the important aspects toward the economic society. The purpose of entrepreneurship is to encourage people to be successful after they had started up their own business (Praag et al., 2000).

In recent times, entrepreneurial education becomes more popular and acceptable by the undergraduates in the tertiary education. Entrepreneurship education has become an essential component to foster potential entrepreneurs in the private and public university. Entrepreneurship education is the most effective way to promote the transition of graduates toward the self-employment (Ismail et al., 2009). Hence, it is important to understand the formation of entrepreneurial intention of Malaysia university students and its linkage with different educational backgrounds. In general, there is a need to better understand the Malaysian students' entrepreneurial intentions and the factors affecting intentions.

Problem Statement

In the past, Malaysian graduates did not consider taking entrepreneurship as their career choice, because entrepreneurship was still not so popular and fewer graduates were interested in it. However, according to (Salleh 2002) research, he observed that in the recent time, the number of graduates who are associated with entrepreneurship has been increased, but the figure is still remaining low, which is lower than 0.4 %.

The Malaysian government is encouraging graduates to involve in entrepreneurship. There are advantages for graduates to take part in self-employment because entrepreneurship may promote creativity, innovation and create new job opportunities. Some undergraduates have their own ideas and want to start up their business after they finished their studies. They want to promote their products or services to the customers, but they can choose to promote it either conventionally or online business.

Significance Of The Study

Entrepreneurship plays an important role in contributed to the nation economic growth and creates job opportunities in the country.

The Malaysian government has taken a great effort in developing entrepreneurship. The Malaysian government has provided tax incentives, business advisory, funding resources, loan, and others to the entrepreneurs in every sector, especially in SMEs and Multimedia sectors. The reason why the government gives incentives is to foster younger entrepreneurship intention.

The importance of this study was to explore the preferences of the undergraduates toward entrepreneurship intention. We are focused to the preferences of the undergraduate towards on entrepreneurship intention.

Next, this research would study about the determinants that affect undergraduates' entrepreneurial intention. It can be the relatively important guidelines or references to the government. It is hoped that the government can develop suitable strategies and approaches.

Scope of the study

This study had been conducted in UiTM Perlis. The respondents in this research was restricted to the undergraduate students in University Teknologi Mara, Perlis campus. Due to the time constraints, it was believed that the sample size of 100 students was enough and the respondents are regardless of age, gender, faculty, and major. We distributed to 4 faculties that was Business Management, Accountancy, Applied Science and Plantation and Agro Technology.

The questionnaires were distributed randomly to the respondents to obtain the primary data. The secondary data were derived from the journals which obtained from the online database such as Emerald. The questionnaires were collected from the respondents and able to obtain the information, alternatives, and opinions, which related to the objectives of this study.

Research Objectives

The general objective of this research was to identify the impact of higher education on entrepreneur intentions of UiTM Perlis students. Next, the research would determined the correlation of the independent variables and dependent variables which were the determinants to the involvement of the undergraduates to entrepreneurial intentions.

to identify the preferences of the undergraduates toward entrepreneurship intentions

to determine the determinants of undergraduates to the involvement in entrepreneurship.

Chapter 2

Literature Reviews

ENTREPRENEURSHIP

EDUCATION

EDUCATIONAL

LEVELTheoretical Framework

PERCEIVED BEHAVIORAL CONTROL

ENTREPRENEURIAL

INTENTIONS

ACADEMIC

ACHIEVEMENT

Entrepreneurial Intentions

Entrepreneurial intention is a state of mind that people wish to create a new firm or a new value driver inside existing organizations (Alimohammad Aghazamani and Elham Roozikhah, 2010). From the viewpoint of entrepreneur, reseachers tried to explain the phenomenon from the personalities, ability of innovation and opportunity exploitation on the range of economics, or the conditions and resources facing entrepreneurs, the entrepreneurial intention perspective provided a new research focus and offers a means to better explain and predict entrepreneurship, thereby breaking down the boundaries between disciplines.

The reason for studying entrepreneurial intention can be categorized into two

aspects:

(1) In the individual aspects, in order to become novice, serial and even portfolio entrepreneurs, individuals must first become nascent entrepreneurs (Westheadand Wright, 1998). Therefore, the process that underlies the emergence of entrepreneurial intentions and behavior is of the uttermost importance (Drnovsek and Eriksona, 2005).

(2) In the social aspects, Global Entrepreneurship Monitor Research (2007) reports there are correlations between a country's per capita GDP, national economic growth rate and the level and type of entrepreneurial activity in the country. In this sense, the level of entrepreneurial intention reflects economic potential and economic environment of the country.

Hypotheses

Education Level

Education in its general sense is a form of learning in which knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training and research (Setiano, 2012).Generally, it occurs through any experience that has an effect on acts.

When the students have low level in education, it will be difficult for them to find a job in the public or private sector. Thus, they decided to open their own business. Besides, students who have higher levels of education are not difficult to find a job. Mostly, the employer will hire new workers based on their educational level. Hence, students who have higher levels of education are less interested in entrepreneurship.

H1. Education level will be negatively related to entrepreneurial intentions.

Perceived Behavioral Control

The Perceived behavioral control refers to the people's perceptions of their ability to perform a given behavior (Stephen Sutton, 2004). Perceived behavioral control also refers to the perception of easiness or difficulty in the fulfillment of creating a new venture (Francisco Linan, Yi-Wen Chen, 2006).

Perceived behavioral control is determined by the belief and confidence of people according to their attitude. The strength of each belief is measure by perceived power of the control factor, and the products are collected. To the extent that it is an accurate reflection of actual behavioral control can, together with intention (Azjen, 2002), be used to predict behavior.

It means that if the students have more interest to be entrepreneur, they will have positive intentions to be an entrepreneur in the future and if the students have don't have interest to be entrepreneur, they will have negative intentions to be an entrepreneur in the future.

H2. Perceived behavioral control will be positively related entrepreneurial intentions.

Academic Achievement

Academic achievement or (academic) performance is the outcome of education - the extent to which a student, teacher or institution has achieved their educational goals (Misty Lacour and Laura D. Tissington, 2011). Academic achievement is commonly measured by examinations or continuous assessment but there is no general agreement on how it is best tested or which aspects are most important - procedural knowledge such as skills or declarative knowledge such as facts (Barbarin, 1984). Individual differences in academic performance have been linked to differences in intelligence and personality. A recent meta-analysis suggested that mental curiosity (as measured by typical intellectual engagement) has an important influence on academic achievement in addition to intelligence and conscientiousness (Mildred Murray, 1996).

University students tend to think broadly and have more intend to be an entrepreneur. University students who are bad in their academic achievement, they will have less perceived behavioral control which in turn will lead to less beliefs and low entrepreneurial intention.

H3. It is expected that university students who have good academic achievement have more perceived behavioral control than those who have bad academic achievement.

Entrepreneurships education

Entrepreneurships education seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety of setting (Peter D ,1985). Many education about entrepreneurship are offered at all levels of schooling from primary or secondary schools through graduate university programs. Entrepreneurship can provide the new economic divisions and make a good student of the world.

While Kolveird and Moen's (1997) research results indicate that graduates with an entrepreneurship major have stronger entrepreneurial intentions than other graduates of Norweigian business school, Levenburg et al's(2006) study failed to reveal a difference between business and non-business of interest in an entrepreneurship among US students.

H4. It is expected that university students who have received in entrepreneurship education are most interested entrepreneurship.

Chapter 3

Research Design

The method of sampling that has been used in this research was Simple Random Sampling techniques. Simple Random Sampling is the most widely-used probability sampling method. Furthermore, it is easy to implement and to analyze. It is often called as SRS. That's mean it gives each member of the population an equal chance of being chosen. A simple random sample is meant to be an unbiased representation of a group. To understand simple random sampling here is few key definitions. The total set of observations that can be made is called the population. A sample is a set of observations drawn from a population and a random number is a number determined totally by chance, with no predictable relationship to any other number. For better understanding of simple random sampling here is an example, there is 25 employees chosen out from a company with 250 employees. In this case, the population is all 250 employees, and the sample is random because each employee has an equal chance of being chosen.

Measurement

Data Analysis

The data for this research have been obtained by using Statistical Package for the Social Sciences (SPSS). SPSS is a computer program used for statistical analysis. SPSS is among the most widely used programs for statistical analysis in social science. It is important for data preparation to be used in further studies such as descriptive and regression analysis. We implemented reliability tests to ensure the relationship between the variables and to erase variables that are not reliable enough that could fix into needed scale. In the data screening process, we used the frequency distribution in identifying whether there were missing values by divided the categories based on age, gender, education level and major. After that, we conducted a test in the shape of distribution identification. Descriptive statistics had been implemented to analyze the meaning of variables for the recommendation. Mean is important to focus inclination analysis as it has also been 16 important methods to transform them to mean specific variables and then will be used for analysis to answer their hypothesis constructed.

Data Collection

Data for this research study have been collected in the form of primary and secondary data. For the primary data, 100 questionnaires had been distributed to the target respondents which were randomly choose within UiTM Perlis campus. We received 80 completed questionnaires but one outlier detected. The questionnaires were used to obtain the needed data for analysis, which would be presented in the later chapter. Survey method was adopted because it allows the collection of a huge amount of data in an economical manner. As for the mode of data collection, self-administered surveys that allow the respondents to complete the survey on his or her oneself was adopted.

Other than the survey method, this study also discussed the past research as the foundation of the study. The secondary data have been gathered from the Internet, books, newspapers and also journals.

Results

There were four independent variables and one dependent variable involved in this research. The Independent variables were perceived behavioral control, entrepreneurship education, educational level, and academic achievement. The dependent variable was entrepreneurial intentions. Thus, dependent variables were affected by the independent variable. The table below showed the Reliability statistics:

Variables

Cronbach's Alpha

Cronbach's Alpha Based on Standardized Items

N of items

Perceived behavioral control

.832

.832

4

Entrepreneurship education

.905

.905

5

Educational level

.914

913

4

Academic achievement

.874

.875

6

Total entrepreneurial intentions

.914

.913

4

The first independent variable was perceived behavioral control. On reliability statistics, the Cronbach's Alpha showed0. 832, means that the result exceeded 0.7 which cut off value for reliability consistency. 0.832 showed that our result was preferable. This suggested that this scale was reliable and good internal consistency. Next Independent variable were entrepreneurship education and educational level, Cronbach's Alpha showed values of 0.905 and 0.91, in which the result exceeded 0.7 cutoff value for reliability consistency. 0.905and 0.914 means that our result suggesting very good internal consistency reliability for the scale. The last independent variable was academic achievement, the Cronbach's Alpha showed 0.874 which also considered as preferable and good internal consistency. Last but not least, the dependent variable was entrepreneurial intentions, recorded 0.914 on Cronbach's Alpha, means that our dependent result suggesting very good internal consistency reliability.

Correlations

Total entrepreneurial intention

Total perceived behavioral control

Total entrepreneurial education

Total educational level

Total academic achievement

Pearson Correlation

Total entrepreneurial intention

1.000

.748

.682

.489

.708

Total perceived behavioral control

.748

1.000

.665

.454

.636

Total entrepreneurial education

.682

.665

1.000

.616

.743

Total educational level

.489

.454

.616

1.000

.660

Total academic achievement

.708

.636

.743

.660

1.000

Sig. (1-tailed)

Total entrepreneurial intention

.

.000

.000

.000

.000

Total perceived behavioral control

.000

.

.000

.000

.000

Total entrepreneurial education

.000

.000

.

.000

.000

Total educational level

.000

.000

.000

.

.000

Total academic achievement

.000

.000

.000

.000

.

N

Total entrepreneurial intention

79

79

79

79

79

Total perceived behavioral control

79

79

79

79

79

Total entrepreneurial education

79

79

79

79

79

Total educational level

79

79

79

79

79

Total academic achievement

79

79

79

79

79

In terms of correlation, total perceived behavioral control, total entrepreneurial education, total educational level and total academic achievement had 74.8%, 68.2%, 48.9% and 70.8% positive correlation with total entrepreneurship intentions, which mean that as one variable goes up so will the other one. This also showed that, there was a large correlation between these two variables which was above 0.5 and suggesting quite a strong relationship except total educational level which below than 0.5 or 50% which suggesting a weak relationship with entrepreneur intentions.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t

Sig.

B

Std. Error

Beta

Total perceived behavioral

.593

.125

.449

4.739

.000

Total entrepreneurship education

.152

.106

.162

1.441

.154

Total educational level

-.048

.177

-.025

-.272

.786

Total academic achievement

.252

.090

.319

2.789

.007

The diagram above showed the coefficient table. So the result indicated that there were only two significant variables only as the Sig. Amount below 0.05 which was total perceived behavioral control and total academic achievement which was .000 and .007.This proved that result supported the hypothesis. So the other two independent variables did not significant because the sig. An amount exceeded cut off 0.05. From the table total entrepreneurship education and total educational level was not significant which was 0.154 and 0.786.This indicated that the other two variables did not support the hypothesis. Next on Beta column, total perceived behavioral control showed .449 indicated that total perceived behavioral control had a positive effect on entrepreneurial intentions, increase of total perceived behavioral control will lead to increase in entrepreneurial intentions and it also proved that 44.9% of total independent variable lead to entrepreneurial intentions. For example if a student has high belief and confidence to be an entrepreneur, so automatically he or she will have high entrepreneur intention. Total academic achievement also had a positive effect on entrepreneur intentions as the beta was .319. Increase of total academic achievement will lead to increase of entrepreneurial intentions and also proved that 31.9% of total independent variable lead to entrepreneurial intentions. For example like if a student achieved good grades in the exam or an increase in CGPA it will lead to increase of entrepreneurial intentions.

5.0 Conclusions

Validity of the Total Perceived Behavioral and Total Academic Achievement.

In this study, the path analysis shows that UiTM Perlis student's entrepreneurial intention can be explained by the combination of total perceived behavioral and total academic achievement. It was shown by the coefficients table which was total perceived behavioral and total academic achievement were significantly amounted .000 and .007. Meanwhile total entrepreneurship education and total academic level did not contributed significantly to the entrepreneurial intentions among UiTM Perlis students.

Based on the significant value, students with good behavior have a tendency to become entrepreneurs than other students. Personal behavioral was the main predictor of behavioral intentions, irrespective of student's educational background. Hence, a positive attitude towards start-up is a good starting point to stimulate entrepreneurial behavior.

Educational level would influence through its effect on personal attitude. Entrepreneurship seems less attractive to students with postgraduate degrees than those with diploma and undergraduate degree. There are two possible reasons for this phenomenon. Firstly, diploma students are young and full of enthusiasm to begin their new business. The other reason is postgraduate students are facing a high opportunity in terms of time and stability of cash flow demand.

From the data we gathered, total education level of UiTM Perlis students did not have a significant impact on student's entrepreneurial intention. This is not similar to the result of Souitaris et al. (2007).

Based on the output, we can see that 66% of the variance can be explained by the variables that we have in the regression equation. In other words, there are 66% of the result can be trusted in order to study the impact of higher education on entrepreneurial intentions of UiTM Perlis Students.

References

Sizong Wu, L. W. (2008). The Impact of higher education on entrepreneurial intentions of university student in china. Emeraldinsight , 753-744.

Ferrante, F. and Sabatini, F. (2007), "Education, social capital and entrepreneurial selection in

Italy", Munich Personal RePEc Archive, Paper No. 2451, available at: http://

mpra.ub.uni-muenchen.de/ 2451

Guerrero, M., Rialp, J. and Urbano, D. (2006), "The impact of desirability and feasibility on

Entrepreneurial intentions: a structural equation model", the International

Entrepreneurship and Management Journal.

Kangasharju, A. and Pekkala, S. (2002), "The role of education in self-employment success in

Finland", Growth and Change, Vol. 33, pp. 216-37.

Kolvereid, L. (1996), "Prediction of employment status choice intentions", Entrepreneurship

Theory & Practice, Vol. 21 No. 1, pp. 47-57.

Azjen. (2002). Perceived Behavioral Control, Self-Efficacy, Locus of Control, and the Theory of Planned Behavior. Journal of Applied Social Psychology , 665-683.

Conner, C. a. (2001). A meta-analytic review . Efficacy of the Theory of Planned Behaviour , 471 - 499.

Docmo. (n.d.). Hub Pages. Retrieved November 12, 2012, from Attitudes, Beliefs and Values: http://docmo.hubpages.com/hub/Teaching-and-Assessing-Attitudes#

Hannes Leroy, J. M. (2009). A TPB Multi - Group Analysis at Factor and Indicator Level. Gender Effects on Entrepreneurial Intentions , 1 - 29.

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Roozikhah, A. A. (2010). Entrepreneurial Characteristics among University Students. A Comparative Study between Iranian and Swedish University Students , 304 -309.

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