PROCEEDINGS JOURNAL OF EDUCATION, PSYCHOLOGY AND SOCIAL SCIENCE RESEARCH

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1 PROCEEDINGS JOURNAL OF EDUCATION, PSYCHOLOGY AND SOCIAL SCIENCE RESEARCH Presented in 3 rd International Conference in Education, Psychology, and Social Science (ICEPSS) International Research Enthusiast Society Inc. (IRES Inc.) May 19-21, 2016 Open Access Entrepreneurial Intention among Selected Business Students of State Universities and Colleges (SUCs) in Caraga Region Abstract The study assessed the entrepreneurial intention of business students of the state universities and colleges in Caraga Region. Specifically, it evaluated the socio-demographic profile of the respondents, the level of entrepreneurial intention, the relationship between the respondents socio-demographic background and level of entrepreneurial intention, and the relationship between the respondents entrepreneurial personality characteristics and level of The study revealed that respondents generally agreed to the entrepreneurial personality characteristics. Although starting their own business sounds attractive to the respondents but most were not yet ready to embark into entrepreneurship immediately within a year after graduation. The respondents socio-demographic profiles were related to the level of entrepreneurship intention. There was no significant relationship of entrepreneurial personality characteristics to the level of Keywords: Entrepreneurial Intention, Entrepreneurial Personality Characteristics, State Universities and Colleges (SUCs) Authors Information: Corresponding Author:, DBA address: mimi_matildo@yahoo.com.ph Institution: Surigao Del Sur State University Contact numbers: DOI: /AP26WF167O Citation: Matildo, E.L.L. (2016) Entrepreneurial Intention among Selected Business Students of State Universities and Colleges (SUCs) in Caraga Region. Proceedings Journal of Education, Psychology and Social Science Research. Vol03:Iss02:Pg187. DOI: /AP26WF167O Copyright: 2016 Matildo, E.L.L. This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 International License.

2 Introduction Assessing entrepreneurial intentions of students promotes entrepreneurship development. Universities and colleges in the region have a big role in entrepreneurial education to stimulate intentions. It is the responsibility of educational institutions to foster an environment where entrepreneurial characteristics among students can be developed. More young people could become successful entrepreneurs if they were identified and cultivated. It will be advantageous to the country if a bigger enrolment population pursue studies in entrepreneurship and eventually start their own businesses (CHED CMO No. 17, 2005). The study assessed the entrepreneurial intention of business students of the state universities and colleges (SUCs) in Caraga Region. Intentions play a very important role in the decision to start a new business (Linan, 2005). Predicting entrepreneurial intentions of students could assist in the efforts to promote entrepreneurship development. Identifying individuals with the intention to start a business would assist the government in directing support to those who need it in order to contribute to job creation (Douglas, 2013). The attitude and knowledge of entrepreneurship are likely to shape the inclination of the youth to start their own business in the future (Wang & Wong, 2004). Furthermore, the higher the stated intentions to execute the action, the higher the probability of engaging in the act (Chandrashekaran, McNeilly, Russ, & Marinova, 2000). Business education provides a great potential for the establishment of new, small businesses. There is huge opportunity for developing business graduates as entrepreneurs. However, these potentials are not exploited to its full extent. Most graduates go about looking for employment in government and private institutions after they have completed a business course. The increasing numbers of unemployed youth especially among graduates reveals that the anticipated product of business education in terms of addressing the unemployment problem has not been achieved (Nabi and Holden, 2008). Thus, this paper proved to be significant because it examines students intention towards entrepreneurship as a career option. As an outcome of this study, entrepreneurship proposals are to be offered as state universities and colleges in the region offer business-related courses but not an entrepreneurship-focused program. The findings of the study will be used to formulate policies on curriculum development and programs intended for the institution and business students responsive to the needs of the region. This could be a potent source of substantial data for future decisions regarding development of students entrepreneurial intention in the entire region and identify what is needed in existing business programs. Statement of the Problem The study centered its investigation on determining the entrepreneurial intention among selected fourth year business students of SUCs in Caraga Region. Specifically, it aimed to answer the following questions: 1. What is the socio-demographic profile of the respondents as to the following indicators: 1.1. age; 1.2. gender; 1.3. course enrolled; 1.4. entrepreneurial experience; and 1.5. parent s employment status? 2. What is the level of entrepreneurial personality characteristics of the respondents in terms of the following indicators: 2.1. need for achievement; 2.2. self-sufficiency; 2.3. resistance to stress; 2.4. self-confidence; 2.5. creativity; 2.6. locus of control; and 2.7. ris-taking propensity? 3. What is the level of entrepreneurship intention of the respondents? 4. Is there a significant relationship between the respondents socio-demographic background and their level of entrepreneurship intention? 5. What intervention program maybe proposed as an output of the study? Research Design and Methods The study employed the quantitative research using normative-descriptive survey method in determining the entrepreneurial intention among selected business students of SUCs in Caraga region particularly Surigao del Sur State University (SDSSU) and Agusan del Sur State College of Agriculture and Technology (ASSCAT). A total of 205 business students who were in their final year were used as a unit of analysis. The study used a closed-ended structured questionnaire. In acquiring the sample size, the Stratified Proportional Random Sampling was used. The sampling technique used the Sloven formula in identifying the samples. The respondents were selected through the use of a fishbowl technique. Data obtained were analyzed using descriptive statistics (frequency count, frequency percentage and weighted 188

3 mean) and inferential statistics (using Pearson Product Moment Correlation and Chi-square test). Result and Discussions Table 1 shows the socio-economic profile of the respondents. Table 2 shows entrepreneurial personality characteristics. Table 3 shows entrepreneurial intentions of the respondents. Table 4 show the significant relationship between the respondents socio-demographic background and level of And table 5 shows the relationship between the respondents entrepreneurial personality characteristics and level of Table 1. Socio-Demographic Profile Mean Age Frequency Percentage Below % Gender Female % Entrepreneurial Experience With entrepreneurial % experience Father s employment Self-employed: % Agriculture Mother s employment Self-employed: Agriculture % Evidently, respondents age profile indicated that they have continued schooling and not a gap and showed that future entrepreneurs were getting younger and younger. The data underscores the idea that females were attracted to entrepreneurship undertaking (Kirkwood, 2007). Most of the respondents have entrepreneurial experience indicating that they have a strong inclination toward entrepreneurship which may positively influenced the likelihood of establishing a business (Kolvereid, 2005). Parents were selfemployed and were engaged in agriculture which now considered as a business venture. This can be understood because most of the respondents were from Caraga, a geographically agricultural region. This was supported by the study of Lerchundi, et. al (2013) that parents acted as knowledge transferors and being determinant of the children s career choice. Table 2. Entrepreneurial Personality Characteristics Indicators M Description Self-confidence 3.22 Agree Risk-taking Propensity 3.22 Agree Need for Achievement 3.18 Agree Locus of control 3.15 Agree Creativity/ Innovativeness 3.11 Agree Self-sufficiency/ Freedom 3.05 Agree Ambiguity Tolerance/ Resistance 3.05 Agree to Stress Factor Average 3.14 Agree This study showed that respondents generally agreed to the entrepreneurial personality characteristics as evidenced by a factor mean of Out of seven (7) entrepreneurial characteristics, self-confidence and risk-taking propensity ranked as the highest with both 3.22 mean (interpreted as agreed). Studies showed that entrepreneurs and those who are entrepreneurially inclined generally report higher levels of self-confidence that others (Baum and Locke, 2004). Respondents who were at their young age have a high belief on their own abilities, aggressive, will do well were more likely motivated than individuals who believed they were less able and do not expect to succeed. Table 3. Entrepreneurial Intentions Composite Indicators Mean X Interpretation I would rather found a new company than be the manager of an existing 2.97 Agree one. In business, it is preferable to be an entrepreneur, rather than a large firm 3.18 Agree employee. To start my own business sounds attractive to me Strongly Agree I personally consider entrepreneurship to be a highly 3.19 Agree desirable career option. I am confident that I would succeed if I started my own business Agree It would be easy for me to start my own business Agree To start my own company would probably be the best way for me to 3.25 Agree take advantage of my education. I have the skills and capabilities required to succeed as an 3.23 Agree entrepreneur. I know people in my university who have successfully started up their 2.80 Agree own business. In my university, people are actively encouraged to pursue their own 3.11 Agreed ideas. In my university, you get to meet lots of people with good ideas for a new 3.13 Agree business. Business courses at my university prepare people well for an 3.16 Agree entrepreneurial career. In my university, there is a wellfunctioning support infrastructure to 2.82 Agree 189

4 support the start-up of new firms. My family and friends support me to start my own business Agree If I became an entrepreneur, my family would consider it to be good Agree If I became an entrepreneur, my close friends would consider it to be good Agree I have participated in entrepreneurship education (ex Agree Advanced Business Innovation, Small Business Management and Accounting). I want to be self-employed in the future after I graduated from this 2.99 Agree University. I will start my own business in the next year Agree I will start my own business in the next 5 years Agree Factor Average 3.08 Agree Table 3 revealed that respondents agreed with the benchmarks identified as entrepreneurial intentions evidenced by a mean of Out of the benchmark statements, the response on to start my own business sounds attractive to me got the highest weight of 3.41 interpreted as strongly agreed while the statement of I will start my own business in the next year has the lowest weight of 2.70 interpreted as agreed. This implies that although starting their own business sounds attractive to the respondents but most were not yet ready to embark into business immediately within a year after graduation. Brenner, et al (1991) reported that although 55% of the study respondents preferred business as a career, only 5% of the students indicated the willingness to operate their own business. Table 4. Significant relationship between the respondent s socio-demographic background and level of entrepreneurial intention Source of variation Decision Correlation Relationship of sociodemographic profile vs. Entrepreneurial Intention Reject Ho There significant relationship It showed that the computed x-value of all sociodemographic variables was more than the set value of 6.64 at 1% level of significance. The null hypothesis was rejected. Therefore, the respondents sociodemographic profiles were related to the level of entrepreneurship intention. This was supported by Rotesfoss and Kolvereid (2005) that while entrepreneurial competencies increased with age, entrepreneurial intentions tended is to decrease. Entrepreneurial individuals do not necessarily seek higher education degrees if the skills were not considered relevant and/or the degree is perceived more as a recruitment tool for large firms (Parker, 2004). Table 5. Relationship between the respondents entrepreneurial personality characteristics and level of entrepreneurial intention Source of variation Relationsh ip of entreprene urial personality characteris tics versus level of entreprene urship intention Computed (r) P - value Decision Accept H o Correlation There is no significant relationship Using the Spearman Product Moment Correlation (the result obtained that the value of r = ), which was less than the value of r or.735, hence, there was no significant relationship of entrepreneurial personality characteristics to the level of The result implies that respondents may have strong personality characteristics but does not necessarily follow that they have entrepreneurship intention or the other way around. Thus, it was not a guarantee that if a person having strong personality characteristic, he may also engage in business. It therefore followed that personality characteristics may not actually propel people into entrepreneurship unless their intents were actually developed towards self-employment. In contrast to the study, Su (2012) found out that personality characteristics significantly influenced Conclusion The respondents possessed entrepreneurial intention but not that adequate. They also agreed that they exemplified entrepreneurial personality characteristics but business intention was not fully developed. If entrepreneurship is the backbone of the economy and business students may not have strong business intentions, it was suffice to conclude then that business education offered in the region was not enough to develop potential or not appropriate to the needs of the potential entrepreneurs. 190

5 Recommendation In order to encourage the development of entrepreneurial intention, there is a need therefore to design and offer another business program focused on entrepreneurship specifically BS Entrepreneurship in order to match the needs and fully equipped those who really want to become entrepreneurs in the future if not others to consider entrepreneurship as a career option. As one of the student development support programs, it is necessary to provide training facility like the establishment of business training center for effective and practical learning exposure to students thereby enhancing their innate capabilities and encouraging them towards Reference Cited Baum, J.R., & Locke, E.A. (2004), The Relationship of Entrepreneurial Traits, Skill and Motivation to subsequent Venture Growth, Journal of AppliedPsychology, Vol. 89, No. 4, pp Chandrashekaran, M., McNeilly, K., Russ, F. A., & Marinova, D. (2000). From Uncertain Intentions to Actual Behavior: A Threshold Model of Whether and When Salespeople Quit. Journal of Marketing Research, 37(4), CHED CMO No. 17 (2005). Minimum Curricular Requirements for Bachelor of Science in Entrepreneurship (BS Entrep). Retrieved January 12, 2015 from from: playidentifier/3550. Nabi, G., Holden, R. (2008). Graduate entrepreneurship: Intentions, educations, education and training. Education and Training, 50(7), Parker, S.C. (2004). The economics of self-employment and entrepreneurship, Cambridge University press, Cambridge. Retrieved October 9, 2014, from: management.org/library/2008/3_ Kautonen.pdf Rotefoss, B. and Kolvereid, L. (2005). Aspiring, nascent and fledgling entrepreneurs: An investigation of the business start-up process. Entrepreneurship &Regional Development, 17, Retrieved December 15, 2014, from: 3 13Kautonen.pdf. Su, Chang (2012). University students personality traits and entrepreneurial intention: Using entrepreneurship and entrepreneurial attitude as mediating variable. Retrieved October 11, 2014 from: Wang, C.K., Wong, P. (2004). Entrepreneurial interest of university students in Singapore. Technovation, 24, Douglas, E. J., & Shepherd, D. A. (2013). Self-Employment as a Career Choice: Attitudes, Entrepreneurial Intentions, and Utility Maximization. Entrepreneurship: Theory and Practice, 26(3), Kirkwood, J. (2007). Igniting the entrepreneurial spirit: is the role parents play gendered? International Journal of Entrepreneurial Behaviour & Research,13 (1), Lerchundi, Iciar Pablo, Alonso, Gustavo Morales, and Vargas, Ana M. P. (2013). Does family matter? A study of parents influence on the entrepreneurial intention of technical degrees students in Spain. Retrieved December 2, 2014 from: documentos/5_pablo.pdf Linan, F., Rodriguez-Cohard, J., Rueda-Cantuche, J. (2005). Factors affecting entrepreneurial intention levels. 45 th congress of the European Regional Science Association, Amsterdam, Muller, S. (2009). Encouraging future entrepreneurs: The effect of entrepreneurship course characteristics on S.l.: De Auteur. Retrieved November 9, 2014, 191

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