4.1 Factors affecting entrepreneurial intention
There are different antecedent factors which influence the entrepreneurship
intention of business graduate. According to the first objectives here we try
to identify the antecedent factors and described the factor how they are work
as predominant motive of entrepreneurship. There are lots of factors which can
affect entrepreneurial intention. For this report here discussed different
factors which are classified under four main categorized as personality trait
factors, environmental factors, family factors and other factors.
4.1.1 Personality Trait factors
Personality trait indicates person’s
characteristic, patterns of thoughts, feelings, and behaviors. Personality
traits factors are very from person to person. In trait theory of entrepreneurship it was mentioned that entrepreneurial
intentions are influenced by personality traits. The traits
theory argues that entrepreneurship intentions are dictated by some
particular traits such as need for achievement, ambiguity tolerance, locus of
control self confidence, creativity and risk-taking propensity among others.
All these factors are described below-
for achievement: It means an individual’s intent for significant accomplishment,
attain goals or attain high standards. This personality trait is characterized
by internal drive of action with patient and continuous concern which settle
and meet high standards of activities. Need for achievement motivation theory was provided by
McClelland in 1961, revealed that Human beings have a craving for success,
accomplish, excel or achieve. One research conducted on college fresher it was
found that high need for achievement can be developed in childhood and by adult
training and it is an indicator of entrepreneurship intent.
of ambiguity refers to the extent to which one is comfortable and capable to
perform in a situation where the level of uncertainty is very high. Tolerance
of ambiguity is that how well one can take decision in adverse environment and
grip the change and uncertain situation. People with high tolerance for
ambiguity, obtain greater success than the people with low tolerance for
of control: locus of control can be classified in to two types, one is
internal another is external. Individuals with internal locus of control
consider themselves responsible for all the events in their life. On the other
hand individuals with external locus of control judge the life events based on
external factors like chance, luck or fate. Positive association between
internal locus of control and entrepreneurial intention has been proven in one
research conducted by Bonnett & C. Furnham (1991). Entrepreneurs show
slightly higher internal locus of control than others.
confidence: Self-confidence means to an individual’s capacity to handle the
situations effectively without depending on others or without taking help from
others and positive evaluation of own confidence. Self- confidence is an
individual’s perceived ability to behave successfully in a situation to conquer
barriers and to get thing all right.
/ Innovativeness: Creativity means the process by which
innovating something new into being. It is mainly mental characteristic which make a
person to think outside of the box. This results in innovative or distinctive
approaches to accomplishing a particular task. Creativity has a greater
influential power on entrepreneurial intention of a parson. The creative person
can achieve great success in conducting business.
taking propensity: Risk taking is the fondness of an individual to take risks. Risk
taking propensity indicates the eagerness to allow substantial loss and also
craving for higher career development risk and psychological risk. Risk taking
propensity has considerable impact on entrepreneurial intention. The
willingness to take risk is the important differentiator that separate, the
entrepreneur from non entrepreneur.
Environment is every thing that surrounds us. In
this report by entrepreneurial environment we indicate the circumstance,
objects or conditions under which an entrepreneur has to run his business.
These environment factors influence the entrepreneurial intent of business
graduate of a country. The financial, regulatory, government policy, economic
condition and technological condition are considered as environment factor
relating to entrepreneurship. Now we try clarify how these factors relating to
support: Financial support means availability of required
capital to start business from the banks, financial institutions and other
investment organizations. To start a new business an entrepreneur required easy
process, less regulatory, low cost and enough fund. Beginning of entrepreneurship
this factor greatly affects entrepreneurial intension of a persons/business
environment: Every country has its own rules and
regulation regarding business and legal jurisdiction which are directly or indirectly
related with conduct of business operation. These rules and regulations also
influence the legal formalities to start up of the new business. Business
friendly rules and regulations are encouraging for business graduate to take
initiatives to become entrepreneur.
policy: Government policy include business tax ,VAT,
incentives and other rules related to starting and running new business. If the
government tries to attract more entrepreneurship for country economic
development government can provide tax exemption, lower VAT rate, cash
incentives, export-import facilities etc to the new entrepreneur. These
facilities will highly influence the entrepreneurial intention.
economic condition: Countries overall economic condition is
also a motivating factor behind entrepreneurship. Developed and developing country
provides great business growth potential for new business. On the other hand
the less developed and under developed economy demotivated to entrepreneurship.
support: Technology is an important factor for production. To
ensure better quality and huge production advanced technology is required to
compete in this high competitive business world. The availability of technology
and technical personal aslo influences the decision of entrepreneurship.
We all are belongs to a family.
Family includes father, mother, brother, sister and other close relatives.
Family has intense influence on entrepreneurial decision of a business
graduates in every country. In Bangladesh family has great influence on every
aspect of life especially in the matter of selection of profession. Family
business background, family support, financial condition and Influence of
relative are consider as influential factors on entrepreneurial intention of
business graduates. They are described below in details to reveals the relation
with entrepreneurship intent.
a family that owns a business: It is found that
business family background encourage becoming entrepreneur. They participate in
the family business and work for the development of their family business. In
some cases they become entrepreneur by starting their own new business. Family
business knowledge and support create favorable business condition for them. The
family background has great influence to becoming entrepreneur in the near
support and encouragement: Family support and encouragement has
positive influence on entrepreneurial intention. Entrepreneurship is a
potential but risky profession for the new business graduates. Family has to
give support and keep trust on them to run their own business. An entrepreneur
expects enough support from the family to start his new business.
a family with enough financial resource: To start a
business an entrepreneur need money as capital. A new business graduate do not
has enough funds to start a new business. In this case financial capability of
family has a profound effect on entrepreneurial intention. Different research
found family financial condition is also a influential factor for
of relatives: It is also find that influence of
relatives has positive affect on entrepreneurial intention. A successful
business man among family members sometimes woks as an idol or mentor for
another person. So a business graduate can be motivated by a relatives and get knowledge
about starting a new business which help him to become future entrepreneur.
There are many other factors which
affect entrepreneurial intention of business graduates which are suggested by
the entrepreneurship researcher. Education, gender, career growth potentiality
and social condition are major influential factors. Hare it is discussed how
these factors related with entrepreneurship and try to explore influential
entrepreneurship education: Entrepreneurship can be encouraged and developed through
entrepreneurial knowledge is identified by most empirical studies (Gatewood et
al., 2002; Mitra & Matlay, 2004; Kuratko, 2005; Harris and Gibson, 2008;
Kirby, 2011). Now many universities and colleges have introduced different
entrepreneurial programs. One study
found that students who have been enrolled entrepreneurship courses reported
higher entrepreneurial intention than other students (Webb &
Wathers,1982).One research proposed that education is one of the vital factors
distinguishing entrepreneurs from nonentrepreneurs and Person’s who receives
entrepreneurship related education exhibits higher entrepreneurial intention.
So, education is the driving factor of being an entrepreneur. Now-a-days
Bangladesh also showed its concentration to develop entrepreneurship like other
countries in various sectors such as higher education, business, policy making
Many researchers have said that, gender
has impact on the entrepreneurial intention. Some researchers find that males
are strongly aimed towards entrepreneurship than females (Matthewes &
Moser,1995). Females are less interested to be founders of business than male. Due
to typical reasoning caused by their responsibilities of supporting the family,
raising the children, gender related barriers and they do not adequate support
from family have negative influence on females’ entrepreneurial intention.
Although now women are more participate in the working field as like as men. Women
participation in entrepreneurship is increasing day by day.
potential/ Career growth potential: Now day’s
students/personals are more conscious about career growth potentiality. They
choose the career which show more probability of future growth in their career
path. In this case entrepreneurship can be a potential employment sector for
the business graduate. To reduce unemployment rate Bangladesh government is
also trying to encourage pupils to involve in entrepreneurship.
cognition: Social perception is also an influential
factor behind entrepreneurial intention of a person. When society recognized
and treated entrepreneur reverentially, more and more people will be interested
to involve in entrepreneurship. Perceived social norms and a person’s
perception of what is said or thought by society is important in his or her life
about starting a new business. Social perception has a bearing on whether he or
she will start such a business. Researchers suggested positive social
perception should be created towards entrepreneurship. It will encourage
unemployed students to choose entrepreneurship as their profession.