Entrepreneurial Intentions The Influence Of Self Efficacy Commerce Essay Example
Entrepreneurial Intentions The Influence Of Self Efficacy Commerce Essay Example

Entrepreneurial Intentions The Influence Of Self Efficacy Commerce Essay Example

Available Only on StudyHippo
  • Pages: 10 (2583 words)
  • Published: August 1, 2017
  • Type: Research Paper
View Entire Sample
Text preview

The importance of entrepreneurship in promoting economic growth and development is significant, both at the regional and national levels worldwide.

Entrepreneurial activities play a vital role in driving a country's economic growth. However, in India, only a small portion of the population chooses entrepreneurship as a profession due to various social, personal, and psychological factors. Numerous studies conducted globally have analyzed the factors that impact individuals' decision to pursue an entrepreneurial career.

The survey was conducted to examine the factors that influence individuals' inclination towards entrepreneurship. It used a structured questionnaire to investigate the relationship between entrepreneurial purpose, risk-taking behavior, self-efficacy, and overall attitude towards entrepreneurship. A total of 120 participants aged 17 to 18 from Jaipur and Ajmer in Rajasthan were surveyed. Descriptive statistics and correlation analysis were used to uncover significant findings. The results indicate the impact of these variables on

...

purpose and their subsequent effect on actual entrepreneurial endeavors.

Introduction

Entrepreneurs are individuals who not only conceive and arrange business ventures but also take risks in doing so. They possess a longing for more accountability and authority in their lives, along with the courage to experiment with novel ideas. Entrepreneurship can offer a rewarding profession, offering adaptability and considerable autonomy in managing a business. Entrepreneurs possess distinct personalities that comprise both inherent qualities and characteristics acquired through socialization.

Intention is the desired outcome that directs planned actions. It is linked to attitudes, particularly the perceived desirability and feasibility. The intention to construct a house and the desire to relocate enable its creation. Similarly, entrepreneurial objectives significantly influence entrepreneurial behavior.

The initial step in the venture creation process involves cultivating an entrepreneurial calling, which is vital for industrial developmen

View entire sample
Join StudyHippo to see entire essay

and economic growth. Entrepreneurs play a significant role in job creation, enhancing per capita income, and generating tax revenue for the government. Gender, self efficacy, and risk-taking attitude are influential factors that impact entrepreneurial objectives.

Literature Review

Schumpeter (1934) accurately characterizes the entrepreneur's psychology as being driven by the ambition to establish their own realm, compete, demonstrate superiority, and attain success for its intrinsic value. Entrepreneurs possess distinctive traits such as innovation, strategic redevelopment, establishment of new enterprises, and willingness to embrace risks. Numerous studies have demonstrated that both internal and external factors can shape entrepreneurial purpose.

According to Soetanto et al. (2010), the entrepreneurial purpose in individuals is influenced by internal and external factors. Douglas and Shepherd (2002) explain that the decision to start a new business is complex due to uncertainty and perceived risk. They discovered a connection between attitudes towards independence, risk, income, and an individual's intention to be self-employed. Therefore, they propose hypothesis H1: There is a relationship between risk-taking attitude and entrepreneurial purpose.
Multiple studies have highlighted various factors such as age, gender, origin, religion, education level, and work experience as important for entrepreneurial intentions (Reynolds et al., 1994). However, these studies have produced inconclusive results.

According to a study conducted by Soetanto et al. (2010), factors such as age, education, gender, and academic achievement do not have a positive impact on an individual's decision to become an entrepreneur. However, research in career psychology by Lent & Hackett (1987) suggests that gender plays a significant role in differences in self-efficacy for making career choices.

In general, empirical evidence indicates that women tend to have lower expectations for success across different professions compared to men (Eccles, 1994).

The

UK Global Entrepreneurship Report (GEM UK 2001) highlights a significant gender disparity in entrepreneurship, with men being approximately two and a half times more likely to be entrepreneurs than women. Additionally, women are more inclined to believe they will be jobless within the next five years compared to men. Moreover, men are twice as likely as women to have confidence in their skills for starting a business. These variations in attitudes and motivations based on gender directly affect the support and assistance required by women when initiating entrepreneurial endeavors. Consequently, it proposes the following hypothesis:

H2: Gender impacts entrepreneurial purpose.

Douglas and Fitzsimmons (2005) state that an individual's inclination towards entrepreneurial behavior is closely associated with their attitudes towards ownership, independence, and income.

In a survey conducted by Lynn (1991), it was found that the most important variables influencing the decision to become self-employed were the desire to fight and the rating of money. Additionally, Storey (1994) stated that the desire to be one's own boss or to have independence is the most significant factor that motivates entrepreneurial purpose among individuals. Self Efficacy Theory (SET) helps explain the relationships between beliefs, attitudes, intentions, and behavior. Bandura first proposed the concept of self-efficacy in 1977 as part of his Social Cognitive Theory. According to Bandura, expectations such as motivation, performance, and feelings of defeat resulting from repeated failures determine affect and behavioral reactions.

Bandura (1986) categorized perspectives into two distinct types: self-efficacy and outcome anticipation. He described self-efficacy as the confident belief that one can effectively execute the behavior needed to produce certain outcomes. He asserts that self-efficacy is the crucial factor for behavioral change because it determines the initiation

of coping behavior. Past investigations have indicated that individuals' behavior is heavily influenced by their confidence in their ability to perform said behavior (Bandura et al., 1980).

According to Armitage and Conner (2001), self-efficacy is more clearly defined and more strongly correlated with purposes than sensed behavioural control (PBC). Self-efficacy has replaced PBC in many studies and is strongly positively related to business creation and entrepreneurial success (Rauch & Frese, 2007; Kolvereid & Isaksen, 2006). Boyd and Vozikis (1994) argue that a person's intentions to start a new business will be strongest when they have a high level of self-efficacy resulting from command experience, entrepreneurial role model, social persuasion, and goal setting. Based on this discussion, the following hypothesis is formulated: H3: There exists a positive relationship between high self-efficacy and positive attitude towards entrepreneurial career.

Moriano et al. (2011) state that two people may hold equally strong beliefs about entrepreneurship involving facing new challenges, but one may view these challenges positively while the other may see them as unpleasant. Icek Ajzen's Theory of Planned Behavior (1985) proposes that intentions are influenced by attitudes, subjective norms, and perceived behavioral control (PBC).

Normative belief refers to an individual's perception of behavior, influenced by significant individuals such as parents, partners, friends, and teachers. These beliefs are centered around the perceived likelihood of approval or disapproval from important people or groups regarding a specific behavior. They serve as a standard for guiding personal conduct.

The text discusses how societal norms affect an individual's decision to pursue entrepreneurship. It explains that subjective norm is the perception of societal pressures and beliefs about engaging in entrepreneurship. According to the theory of planned behavior, intention

to become an entrepreneur is influenced by attitude towards this career, subjective norms, and perceived behavioral control. Students with positive attitudes, strong subjective norms, and greater perceived behavioral control are more likely to intend for entrepreneurship. This supports the hypothesis that a positive attitude towards entrepreneurship correlates with positive entrepreneurial intentions.

Furthermore, the study aims to examine the relationship between gender and entrepreneurial intentions as part of its objectives. Additionally, it seeks to investigate the connection between self-efficacy and entrepreneurial intentions. This involves analyzing how a positive attitude towards entrepreneurship influences one's purpose as an entrepreneur and measuring the relationship between risk-taking attitude and entrepreneurial purpose.

To gather information for this research, a survey was conducted using both primary and secondary sources in Ajmer and Jaipur cities.

In order to collect primary data, a structured questionnaire was completed by 120 respondents aged 17 to 18. This age group was specifically chosen because it is the time when individuals are most likely to consider their future career options. The convenience sampling method was used to select the respondents. The details of the sample can be found in Table 1. (Table 1 about here) To measure entrepreneurial intent, a five-item scale was used. Each item assessed how likely an individual is to choose an entrepreneurial career. Respondents rated their agreement on a five-point Likert scale, ranging from 'strongly disagree' to 'strongly agree'. Higher scores indicate stronger entrepreneurial intent.

The study gathered responses from participants regarding their self efficacy, general attitude towards entrepreneurship, and risk-taking behavior. These responses were rated on a 5-point Likert scale. The data was then analyzed using SPSS software, with important findings determined through Chi-Square tests and correlation.

Facts

And Findings

Hypothesis 1: There is a connection between risk-taking attitude and entrepreneurial purpose.

To assess the participants' risk-taking attitude, variables such as "Would you be interested in investing your money in a project with high risks but high returns" were rated on a five-point Likert scale. Similarly, statements like "You have intentions to pursue a career as an independent entrepreneur" were used to evaluate entrepreneurial purpose.

The latest survey results show that there is a strong positive correlation of.703 between the willingness to take risks and the desire to become an entrepreneur. This can be attributed to the fact that starting one's own business involves the risk of failure, closures, and significant financial investments leading to potential losses. Therefore, individuals who are not comfortable with taking risks may find it difficult to pursue entrepreneurship as a career.

Hypothesis 2: The impact of gender on entrepreneurial purposes.

Interpretation: To evaluate how gender affects entrepreneurial purposes, both male and female respondents were included in the study. The chi-square test was used to assess the influence of gender on entrepreneurial intentions.

According to Table 2, the results show that gender greatly influences entrepreneurial purposes. The hypothesis remains valid as the calculated value (19.068) exceeds the critical value (3.841). This indicates a higher inclination among males compared to females in selecting entrepreneurship as their career.


Hypothesis 3: A positive relationship exists between high ego efficaciousness and a positive attitude towards entrepreneurial calling.

Interpretation: Variables such as "You do experience that you have the endowment of going a successful enterpriser" were responded to on a 5 point Likert scale to determine ego efficaciousness. The study revealed a high correlation of .756 between

ego efficaciousness and a positive entrepreneurial purpose.

Hypothesis 4: A relationship exists between a positive attitude towards entrepreneurship and positive entrepreneurial purposes.

Interpretation: Statements such as "entrepreneurship leads to the development of the economic system", "being an entrepreneur/self employed is better than holding a job", etc. were used to assess the respondent's general attitude towards entrepreneurship and their thoughts about it. It was found that there exists a positive correlation of .492 between a positive attitude towards entrepreneurship and positive entrepreneurial purposes.

The survey investigated the relationship between gender, self-efficacy, positive attitude towards entrepreneurship, and risk-taking behavior in relation to entrepreneurial intentions. Having a positive attitude towards entrepreneurship increases one's determination to pursue it as a career choice. The findings of the survey are consistent with previous research in the field of entrepreneurship, indicating that individuals who are willing to take risks are more likely to view entrepreneurship as a viable career option and display positive entrepreneurial intentions.

The analysis indicates that males exhibit a greater inclination towards entrepreneurship compared to females, particularly in India's patriarchal society. Although females generally display less enthusiasm for entrepreneurship, recent progress suggests a gradual move towards self-employment. However, there is ongoing discussion regarding whether this inclination arises from personal preference or the need to address individual or household circumstances. Furthermore, individuals with a positive outlook on entrepreneurship are more likely to possess favorable intentions towards it. Thus, the promotion of entrepreneurial education plays a vital role in fostering entrepreneurial skills and cultivating a positive mindset.

Boyd and Vozikis (1994) and other studies have confirmed that individuals who have strong beliefs in their abilities, particularly those with higher entrepreneurial self-efficacy,

are more determined and motivated to pursue entrepreneurship as a career. Believing in one's capabilities acts as a driving force in facing challenging situations.

Research Limitations

This study only examined a limited number of variables. However, factors such as education, family background, previous entrepreneurial experience, etc. also contribute to influencing entrepreneurial intentions. Therefore, there is a need for comprehensive research that considers all these factors.

The survey aims to assess how certain factors affect entrepreneurial intentions, although these intentions may not necessarily lead to the actual pursuit of entrepreneurship as a career. However, it is suggested that a larger sample could be taken to improve the generalization of the results, specifically in covering more cities in Rajasthan. This presents an opportunity for further research in the complex field of entrepreneurial studies.

References

  1. Ajzen, I. (1985). From purposes to actions: A theory of planned behaviour. Heidelberg: Springer.
  2. Armitage, C. J., & Conner, M. (2001).

Efficacy of the theory of planned behavior: meta-analytic reappraisal. British Journal of Social Psychology, 40, 471-499.

  • Bandura, A., Adams, N.E., Hardy, A.
  • B.,; A.; Howells, G. N. (1980). Trials of the generalization of ego efficacy theory.

    Cognitive Therapy and Research, 4, 39-66.

  • Bandura A ( 1986 ) , The Social Foundations of Thought and Action, Prentice Hall, Englewood Cliffs, New Jersey.
  • Boyd, N. G. , ; A ; Vozikis, G. S. ( 1994 ) . The Influence of Self-Efficacy on the Development of Entrepreneurial Intentions and Actions.
  • Entrepreneurship Theory & Practice (summer).

  • Douglas, E. J. & Fitzsimmons, J. R.
  • (2005). Entrepreneurial Intentions towards Individual versus Corporate Entrepreneurship. Paper presented at the SEAANZ 2005, Armidale, NSW.

  • Douglas, E.J., ; A; Shepherd, D.A.
  • (2002). Self-employment as a calling pick: attitudes, entrepreneurial purposes and public-service corporation maximization. Entrepreneurial Theory and Practice (Spring), 81-90.

  • Eccles, J. (1994).
  • The article "Understanding adult females' educational and occupational choices" in the Psychology of Women Quarterly (18, 585-609) explores the factors that influence women's decisions in these areas. In another study by Gatewood, Shaver, and Gartner (1995) titled "A longitudinal Study of Cognitive Factors Influencing Startup Behaviors and Success at Venture Creation" in the Journal of Business Venturing (10: 371-391), the authors examine cognitive factors that affect entrepreneurial activities. Additionally, Gartner's work is also relevant to this topic.

    B., Shaver, K.G., Gatewood, E.J.

    , & A ; Katz, J. ( 1994 ) . Finding the entrepreneur in entrepreneurship. Entrepreneurship Theory and Practice, 18 ( 3 ) , 5-10.

  • Kolvereid, L.
  • , & A ; Isaksen, E. (2006). New concern start-up and subsequent entry into self employment. Journal of Business Venturing, 21 (6), 866-885.

  • Krueger, N.
  • 1993. The article titled "Impact of anterior entrepreneurial exposure on perceptual experiences of new venture feasibleness and desirableness" was published in the journal Entrepreneurship Theory and Practice, Volume 18, Issue 1, pages 5-21. It was authored by Lent, R. & Hackett, G. in 1987.

    Career self-efficacy: Empirical position and future waies. Journal of Vocational Behavior, 30, 347a??383.

  • Lynn R (1991), The Secret of The Miracle Economy: Different National Attitudes to Competitiveness and Money, the Social Affairs Unit, London.
  • Moriano, J.A., Gorgievski, M., Laguna, M.
  • , Stephan, U. & A ; Zarafshani, K. (2011, published online first). A cross-cultural approach to understanding entrepreneurial purpose. Journal of Career Development. Department of the Interior: 10.1177/0894845310384481

  • Popli, G.
  • S. "A Study of

    Entrepreneurial Orientation ; Inclination for Entrepreneurial Carrier of Management Students in India: An Empirical Analysis" (March 29, 2010).

  • Rauch, A., & Frese, M. (2007). Let's set the individual back into entrepreneurship research. European Journal of Work and Organizational Psychology, 16, 353-385.
  • Reynolds, P.
  • , Storey, D.J.; A; Westhead, P., "Cross-national comparing of the fluctuation in new house rates", Regional Studies, vol. 28, p. 443-456, 1994.

  • Schumpeter J A (1934)
  • Theory of Economic Development: An Enquiry into Profits, Capital, Credit, Interest and the Business Cycle, Harvard University Press, New York.

  • Soetanto D P, Pribadi H and Widyadana G A ( 2010 ) , " Deciding Factors of Entrepreneurial Intention among University Students " , The IUP Journal of Entrepreneurship Development, Vol. VII, Nos. 1 ; A ; 2, pp. 23-37.
  • Storey D J ( 1994 ) , Understanding the Small Business Sector, Routledge, London.
  • Teng B S ( 2007 ) , " Corporate Entrepreneurship Activities through Strategic Alliances: A Resource based Approach toward Competitive Advantage " , Journal of Management Studies, Vol. 44, No.1, pp.
  • 119-42.

    Get an explanation on any task
    Get unstuck with the help of our AI assistant in seconds
    New