Motivating Business Students to the Entrepreneurial Sector

move Business Students to the Entrepreneurial SectorAn Empirical Study on Factors Motivating Business Students to Move to the Entrepreneurial SectorAbstract. This exploratory study is attempts to examine how employable individuals turn their steering to start-ups. Today, majority of employees still practise a more or slight self-protective strategy. In this paper we would comprehend on the results of an empirical study of factors motivating breaker pointd potential employees to move to self enterprising. The deciding factors to buzz off an enterpriser and of sustainable employment-oriented factors to be analyzed in order to discover how they differ. Participants consisted of 200 students from Malaysia entered final year of stock undergraduate and postgraduate programs. Self-administered questionnaires were uptaked to gather information on factors and types of relationships influencing life history choice and entrepreneurial intention. The results of the abbreviation exit serve as a basis for the disciplinement of employment practices designed to support start-ups in adopting sustainable business practices.1. IntroductionToday, employees still act in accordance with employers legal obligations and try non to attract special attention from local in underage business owners. This papers master(prenominal) aim is to stick a fresh look into graduates expectation on the factors motivating employees when visualizeing switching jobs if employed and to identify the direct of interest as they commence and develop entrepreneurial ventures. The study principally examined why employees decide to develop entrepreneurs, therefore, seven main issues associated with graduates enterprises as they established, operated and grew their businesses, these being chosen following a process of brainstorming with a pilot group of graduate entrepreneurs.2. Review of Literature2.1. OverviewA turning of researchers have attempted to consider factors such as gender, gra de point average, duration and field of study and entrepreneurial family background as important factors affecting students perception and attitudes towards the prospect of new own business formation, and some of these factors clearly invoke or inhabit such tendency (Oakey, Mukhtar and Kipling, 2002). However, Cooper, Woo, and Dunkelberg (1989) suggested that the divers(a) objectives identified by new(prenominal) researchers can be reduced to tether factors challenge, wealth and autonomy. Using cluster analysis Woo, Cooper, and Dunkelberg (1991) identified ii types of entrepreneurs depending upon their purposes at the condemnation of commencing the business firstly self-regulating who placed high priority on non having to work for others, and secondly, company-men. who builds the organization.2.2. inquireGeneration of start up ideas have been explored by a number of researchers. Opportunity recognition is dependent on whether the entrepreneur was extrinsically stimulated. A leading entrepreneurship text has recognised the important implications for entrepreneurs who need to be seminal in their thinking and of the concept that creativity can be learned or enhanced (Timmons Spinelli, 2008). The three types of opportunities identification to the field of entrepreneurship as established by Sarasvathy, Dew, Velamuri, and Venkataraman (2003) be recognized, discovered and created. There are various motives to start a new venture. According to Amit, McCrimmon, Zietsma and Oesch (2001), money is important but not necessarily close important. They argue that some of the key non-monetary motives for starting up a business overwhelm the wish to be independent and the combination of work and household responsibilities. These start-up motives may have important consequences for the degree of (over)optimism that characterizes (promising) entrepreneurs. For example, if an entrepreneur is principally driven by wealth creation, it may be expected that (s)he is mo re likely to be let down if the turnover in the first year is relatively low. If the entrepreneur is driven by the wish to be independent, (s)he may be unpleasantly surprised by the strong reliance upon a limited number of clients or the bank. If the primary start-up motive is exploiting a perceived opportunity, the entrepreneur may be faced with other people who came up with the same idea or possibly an overestimated market demand for the (new) product.Gilad and Levine (1986), agreed in their analysis on intrinsic and extrinsic that there are discrimination between start-up motives. Intrinsic motives take the desire for independence and combining work with care for family members. Entrepreneurs who are driven by such motives bequeath probably be little inclined to set unrealistically high pecuniary goals. Extrinsic motives include two categories pull and push factors. An opportunity of perceived profit is an important pull factor of entrepreneurship, objet dart (the threat of) unemployment is a well-known push factor. Regarding the exploitation of opportunities, Hayward, Shepherd and Griffin(2006) argue that overoptimistic founders will commit likewise many resources to the opportunities that are the bases of their ventures. If entrepreneurs are blinded by their own ideas and fail to adequately measure out the competition and the (potential) problems to transform the opportunity into a profitable venture, over optimism is around the corner.The creation of a new organization, however, is dependent on(p) upon the belief that self-employment promises more expected utility than either employment within an existing organization or unemployment (Douglas Shepherd, 2000 Van Praag Cramer, 2001).3. MethodologyGartner (1989) proposed that a common limitation of studies into the predictors of entrepreneurial intentions is the failure of investigators to choose sample distributions that are (1) comprised entirely of people who are serious about entrepreneursh ip and (2) who are in the process of making the decision to become involved in creating a new business.Krueger, Reilly and Carsrud (2000) find that studies comprising samples of upper-division college students can uncover job-related favourences at a date when respondents are struggling with important career decisions. Therefore, it is acceptable and distract to investigate entrepreneurial intent utilizing a sample of upper-class college students. (Brice and Nelson, 2008), it is important to note that the population of interest in their study consists of individuals who perceive that they will become entrepreneurs and not necessarily only those who will actually become entrepreneurs. This difference is significant because enchantment actions has been demonstrated to be predicted by intentions. Therefore, the focus of this research remains at the entrepreneurial intentions level of analysis.The sample chosen consists of postgraduate and undergraduate business degree program stude nts who were nearing graduation. When students contemplate graduation, they may also develop immediate career plans and long-range goals. The respondents are those from the business disciplines because, based on their discipline interest, they have already decided to pursue business-related careers. For that reason, a homogeneous sampling of university college students was included in this study.In this study, we follow the rule tested by Brice and Nelson. This study sample consisted of 200 students from University Colleges in Malaysia who participated utilizing a structured questionnaire data accrual methodology. Subjects consisted of final (3rd) year business undergraduates and final year Master of Business Administration (MBA) students in the concentrations of management.They were appropriate primarily because their academic concentration implied that they had serious interest in pursuing a business career. The main themes covered by the refresh questions include firm and owne r characteristics interest to start-up motivation to switch jobs career preferred timing and industry medium for seeking employment desire and likelihood of rewards and opportunity criteria of choosing employers. The two researchers contacted students directly via targeted groups of respondents list originating from the Faculty of their academic major program.Five questions adapted from Chen, Greene, and Crick (1998) was used to assess start up intentions. Responses were gathered on a 5-point Likert scale and intact scale score was obtained by averaging the five questions. Brice and Nelson have reported a Cronbachs alpha of 0.92 for this scale, which implies strong reliability. Information pertaining to each respondents age, gender, and class was obtained to use as control variables in the analysis. Each of these control variables was recorded as non-continuous, categorical predictors.4. Analysis and Results at a time all the related information from the respondents was entirely ob tained, the students motives leading to start-up were analyzed. From the stand for of all motivation fabricates, it could be argued that the main motive for start-up is the need for achievement (average care for = 14.3), followed by economic reasons (mean value = 12.89) and the need for independence (average value = 12.89). In order to establish instrument reliability, Cronbachs coefficient alpha was computed. The reliability coefficient was 0.71 which indicates that the instrument was reliable in its step of determinants for start ups. Data reduction technique is used to unfold the information embedded in our data. possibleness 1 emotional stateion for independent business start-ups is higher than matinging established firmsAfter elimination of subjects with survey questionnaires were only partially completed, the final sample totalled 196 students. As shown in Table 2, this sample was equally delineated between the genders, consisting of 107 (54.6%) males and 89 (45.4%) fem ales. Subjects were primarily graduating undergraduate business students (65.8%) and graduating postgraduate students (34.2%). In fact, there were 129 bachelor degree students who aged below 25 years than MBA students who aged 26 and above. The majority of subjects were expecting salary between RM5001- RM15000 (56.2%) which is not in accordance or earnable with employment even in established firms.Since the mean, median and mode value are very close to each other, it shows the data is symmetrical. The mean for the 196 students is 2.08 with a standard deviation of 1.088. The weakened mean value of 2.01 is similar to the mean above. Hence, shows there are no outliers in the data set. In this survey, since the sample size is 196, the Kolmogorov-Smirnov test is used. The p-value of the test is less(prenominal)(prenominal) than 0.001. Hence, the data is not distributed normal.Of the 196 students, 77 (39.3%) very keen towards start-ups, 52 (26.5%) eager to start-up, 46 (23.5%) open to a ny opportunity, and 16 (8.2%) to consider start-up option. Out of total, 5 (2.6%) prefer employment.Since the correlational statistics value is within 0.5 to 0.8, start-up intention among degree students is said to correlate adequately with at to the lowest degree(prenominal) one other variables in the construct. In this survey, the KMO value is 0.819, which is considered good.Bartletts test of sphericity is used to analyse whether the correlation matrix is an identity matrix. Identity matrix can be ruled out if the p-value of the test is less than 0.05 (Karuthan and Krishna, 2009). In this model, since the p-value is less than 0.001, the researcher proceeds with factor analysis.Since the researcher wanted to study the underlying construct among the six variables Curiosity, Interest, Consideration, Preparation, Setting Up and Start-up quantify. This is a single underlying concept therefore, it is called the Start-up Intent Structure. Since the Start-up Intent Structure varies fr om person to person, it is a variable too. However, it cannot be measured by physical means. Hence, it is called a potential variable or just factor. The model for Start-up Intent Structure is effrontery in Figure 4.In Figure 4, one can visualize six simultaneous regression functions Curiosity, Interest, Consideration, Preparation, Setting Up and Start-up Timing as the dependents and Start-up Intent Structure as the independent.In the table above, since there are 6 variables in this analysis, 6 components (or factors) are listed in the first column. The respective eigen values and percent of variance explained are provided in the next two columns. For Factor 1, the eigen value is 3.109 and the variance is 51.811% of the total variance. For factor 3, 4,5 and 6 the eigen value is less than the default value of 1. In the same table, under Extraction Sums of Squared Loadings, only two factors are listed, corresponding to the factors for which the eigen values is more than 1. base on the cumulative % column, these factors explain 68.792% of the total variance in the 6 original variables. According to Karuthan and Krishna, (2009) established that, in social sciences, at least 50% of the total variance in the variables in analysis must be explained by the factor of factors. In this survey, a single factor extracted explains more than 50% of the total variance in the original variables.Hypothesis 2 Motivations to switch job if employed in established firms associated with independent business start-upsWe use multivariate data analysis to recognize the association between different motivation variables. The analysis has shown the variables in a break plot and quantifying the strength of association using correlation analysis. An association is established, both empirically and theoretically, therefore we move to obtain a regression model. This model, used to predict the value on entrepreneurial intention (outcome), given the values on the motivations to switch job if employed variables (predictors).Table 6, the p-value for the Levenes test for equality of variance is 0.000, which is less than 0.05. Thus, equality of variances is not assumed.Table 7 depicts that the F-value is 3.933 and the degrees of freedoms are 7 and 188. The p-value of the test is 0.000, which is less than 0.05 and the eta-squared value of 0.128, which is less than 0.15,hence, at least one pair of means differ significantly. Therefore there is a need to identify the pair that differs significantly. In this case, the researcher has performed posthoc tests.Based on Kruskal Wallis Test, the p-value of this test is 0.000, which is less than 0.05. Thus, at least one reason differs in terms of motivation towards self-employment rather employment. Based on Kruskal Wallis Test (Table 5) for the mean ranks, obviously, the degreed students are looking for a more challenging career in terms of expanded electron orbit of work, more responsibilities and change in career path rank muc h higher compared to the students who looking to join a more established and stable organisations.On the other hand, 82.20% students feel that they need to escape from admonishing office environment such as not happy with peers, bosses, office politics and etc. Based on Table 3.1, this supports students interest, whereby 97.4 cumulative percent and mean rank shown in table below of luck of considering the new business start-up.