Does Entrepreneurship Education Spur Entrepreneurial Intention?

Oladotun Larry A and Olakunle Damilola O

Published on: 2018-12-31

Abstract

The study revealed that there is exposure of entrepreneurship education to undergraduate students of Osun state in the two study location area (UNIOSUN & OSCE). The Probit regression was employed to determine the undergraduate student’s entrepreneurial intention in Osun State University (UNIOSUN) and Osun State College of Education (OSCE), South West, Nigeria. The result revealed that as age is increasing, there is a probability that an individual will develop an entrepreneurial intention. Also it was find out that as the level of entrepreneurship education increases, there is probability in increase of undergraduate students to develop intention for entrepreneurship. It was discovered from the analysis also that as increase in the level of participation of entrepreneurship of family backgrounds of an undergraduate students, there is increase in probability of an individual to develop entrepreneurial intentions. However, gender influence cannot determine entrepreneurial intention Also, from the analysis of the independent variable test, ir was found out that religion has no influence to determine entrepreneurial intention and insignificant value. It is therefore recommended that entrepreneurship courses offered in the university has a very great influence on the entrepreneurship interest of the undergraduate students in the university.

Keywords

Entrepreneurial education; Entrepreneurial invention; Probit regression

Background

The role of entrepreneurship education as panacea for unemployment and inclusive growth cannot be overemphasized [1]. The entrepreneurship is vital in creating and fulfilling a healthy economy, it is also significant to a country’s economy. In this vein, the role of entrepreneurship education in our educational institutions cannot be over-emphasized because it will create motivation, alertness and intention for undergraduate students to be aware of their potentials for creation of their own enterprise to be self-reliant. The current situation of unemployment in the world can be as well addressed in our various educational institutions because most of the students or graduate school leavers only possess the kind of education which could make them to become job seekers rather than job creators. In Singapore, many Singaporean undergraduates desired to start their ventures but are often hindered by poor business education [2]. Education can be defined as the procedure of acquiring a skill, morals and custom through training. The impact of entrepreneurship education has been recognized as one of the crucial factors that help youths to understand and foster an entrepreneurial intention. Entrepreneurship education has therefore been identified by scholars as crucial factor that assist students (especially youths) to acquire and develop entrepreneurial intentions [2].

Theoretical Review

This section shed highlight some relevant theories relating to entrepreneurial education and entrepreneurial intentions. Knight defined an entrepreneur is a person who bears all the risk and uncertainty associated with the business or enterprise [3]. He is referred to as a FAIL that is FAIL- First Attempt in Learning. Knight was the first to clearly distinguish between risk and true uncertainty. He says risk exists when there is an uncertain outcome, but those outcomes can be predicted with a certain degree of probability and that risk can be insured against. True uncertainty arises when the probability of outcomes cannot be calculated. Schumpeter defined entrepreneur as the coordinator of production and agent of change [4]. He sees entrepreneurship as “creative destruction”. An entrepreneur develop and create a novel ways and processes which improves or condemn previous ways or process of doing a business or rendering a service. As such Schumpeterian” entrepreneur is an innovator. He mentioned the five channels of innovation these include

  • Developing a new product or increase the quality and texture of an existing product
  • Introducing new production technique
  • Inventing a new market e.g. from brick and mortal to online market
  • Developing an alternative source of raw material e.g. crude to solar source of energy
  • Creation of new industrial institution

Kirzner clearly contributed to the Austrian mode of thinking as well as to the theory of entrepreneurship by stating that entrepreneurs are the persons in the economy who are alert to discover and exploit profit opportunities [5]. He propounded the theory of adjustment of price. According to him, an entrepreneur has the following characteristics: adjustment of price which is the main role of entrepreneur and alertness to disequilibrium in the market system. This theory lays emphasis on the behaviour of the entrepreneur and his/her ability of grabbing opportunities in the market. Profit opportunities include making profit out of: (a) Buying (selling) at one place and selling (buying) at the other. (b) Buying in one period and selling in the other and/or. (c) Buying inputs and selling modified outputs.

According to entrepreneurs are individuals that invent new products and services that lead to an industrial revolution in which they derive their livelihood [6]. There are about three types of entrepreneurs: - serial entrepreneur, lifestyle entrepreneur, social entrepreneur. A serial entrepreneur is individual that initiate new ideology in an existing or new line of business, and often succeed.  Secondly, a lifestyle entrepreneur is a person prioritise his passion ahead of the profit when embarking on a business. Most lifestyle entrepreneur envision the prospect of selling the business to shareholders. However, a lifestyle entrepreneur take into cognizance of his/ her  skills, talent, expertise, exposure and experience before starting or launching a business venture [7].

The definition of lifestyle entrepreneurship as it, “simply means you create a business around the kind of lifestyle that you want.” Lifestyle entrepreneur might go into business for the following reasons (1) Personal freedom (2) have time for family (3) embarking on a business objective that inspire them. And lastly, social entrepreneurs seek to develop innovative solutions to global problems that can be copied by others to enact change Elkington & Hartigan [8]. Zahra affirmed that social entrepreneurs tend to find a need within the society and therefore meet the need of the society [9].  That is, a social entrepreneurs are inspired to by the social and economic challenges thereby offer creative solutions to them. For instance, unemployment and poverty and rather than been motivated by profit motive. Social entrepreneurs are interested in adding value via development of new products and services for the betterment of the community. Their ambition is to provide/ render better and high quality products and services [10].

Empirical Review of Literature

Adelowo, Egbetokun, James carried out a study to examine the entrepreneurial intentions among students of Obafemi Awolowo University, Nigeria. Population of 57,650 Nigerian undergraduate were randomly selected with a multi-stage sampling method [11]. Survey data were collected to explore how students transfer their entrepreneurial interest into actual practice after exposing them to entrepreneurship education. It was find out that 84% of the young Nigerians expressed interest in becoming self-employed but only 16% of them expressed their intention to seek employment after graduation. David using a descriptive technique investigated the student entrepreneurial intentions after completing their university studies using Zimbabwe as case study [12]. The employed the stratified random technique using a questionnaire as a source of data collection for 300 students. They analysed their results using SPSS. The study revealed that 22 percent of the students indicated their interest in setting up their own business, 26 percent prefer to further education while still engage in part time self-employment, while 16 percent of the students indicated their interest in part time business while engage in full time employment. In conclusion, 64 percent of the student have directly and indirect displayed an entrepreneurial intentions, while 26 percent indicated their interest to seek for employment and 10 percent prefer to continue their education and not thinking of setting up their own business.

Akande examined if the teaching of entrepreneurship courses can provide entrepreneurial intention among students and a platform for future growth of small scale businesses [13]. All final year students of Ladoke Akintola University of Technology, Ogbomosho, South-West Nigeria taking entrepreneurship education as a course were considered as study population. The study also considered only the full time students across all departments in the institution. The choice of the study area was purposive and convenient. Self-administered structured questionnaire served as operational instrument to collect random sampling primary data from 105 respondents. Linear regression was used with the aid of Statistical Package for Social Sciences (SPSS) for data analysis. The result of regression analysis model showed the relationship between entrepreneurship education and entrepreneurial intention. This indicated that entrepreneurship education contribute 13.9% to entrepreneurial intention with (R2=.139, F (1,103) =16.576, P<.01). This implies that entrepreneurship education influences entrepreneurial intention at 1% level. On the basis of the findings of the study, it can be concluded that the teaching of entrepreneurship courses can provide entrepreneurial intention among students and a platform for future growth of small scale businesses. The study found that entrepreneurship education has significant effect on entrepreneurial intention.

Model Specification

Probit regression model will be used to determine the influence on some variables on EI (Entrepreneurial Intention).

Where

EI                 =         Entrepreneurial Intention, (Dependent Variable)

B0                  =       Constant

B1 – B11     =       Coefficient of the independent Variables

X1 – X11    =        Explanatory (Independent) variables

X1                 =        Gender

X2                 =        Education

X3                   =       Age

X4                 =        Fear of unemployment

X5                   =      Family Background

X6                   =      Autonomy or Independence

X7                   =      Personality traits

ei                   =        Error Term

Results And Discussion

Determining the factors that influence entrepreneurial intention among the respondents using Probit Regression Analysis Model 

Variables

Coefficient

Standard Error

Z- Value

Age

0.065051

0.026509

2.45**

Gender

-0.16564

0.147205

-1.13

Religion

-0.31836

0.15388

-2.07

Entrepreneurship Education

0.027361

0.908356

1.90**

Family background

0.332682

0.430083

1.87**

Source: Field Survey, 2017

From the above, age, gender, religion, entrepreneurship education, and family background are the variables used by the researcher to determine which of the factors had influence undergraduate students of Osun entrepreneurial intention. Probit Regression Analysis was used for this test, the significant value (z) was used at any value above 1.8 and value below 1.8 was regarded as insignificant value.  Age variable was tested and it was found out that as the coefficient value at 0.0650508 increase, it was significant at 2.5, this implies that as age is increasing, there is a probability that an individual we develop an entrepreneurial intention. The test on the Gender variable listed with a coefficient value of -0.1656394 was insignificant at -1.13 value and this implies that gender influence cannot determine entrepreneurial intention.  Also it was find out that as the level of entrepreneurship education increases, there is probability in increase of undergraduate students to develop intention for entrepreneurship, with a significant value of 1.90. It was discovered from the analysis also that as increase in the level of participation of entrepreneurship of family backgrounds of an undergraduate students, there is increase in probability of an individual to develop entrepreneurial intentions, which is significant at 1.87. Also, from the analysis of the independent variable test, it was found out that religion has no influence to determine entrepreneurial intention having a coefficient value -0.0273612 and insignificant value of -2.07. From the overall findings after a test to check if any of the independent variable listed above can determine the entrepreneurial intention of the undergraduate students. It was found out that there are just 3 independent variable that can influence entrepreneurial intention, the three variables are: - age, entrepreneurship education and family background.

Recommendations

  • From the findings and conclusion of this study, the following recommendations were made:
  • The students in the university should be engaged in more entrepreneurial activities to increase entrepreneurial interest
  • The university authorities should encourage entrepreneurial activities in the university
  • Proper orientation should be given to students on age not being a restriction to entrepreneurship development to encourage more entrepreneurial interest in students
  • Through trainings, the knowledge entrepreneurship and its economic impact should be upgraded by relevant public and private organizations.
  • Relevant government agencies and private organizations should fund institutes that have of teach entrepreneurship
  • Government at various levels should increase their efforts in the educating of the masses on entrepreneurship.
  • The government should make available amenities that encourage entrepreneurial activities so as not to cause a restriction to student’s entrepreneurial interest.

References

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