THE ATTITUDE OF MANAGEMENT STUDENTS TOWARDS ENTREPRENEUR & ENTREPRENEURSHIP
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1 THE ATTITUDE OF MANAGEMENT STUDENTS TOWARDS ENTREPRENEUR & ENTREPRENEURSHIP Bijay Prasad Kushwaha Research Scholar Dept. of Management Studies, Andhra University Visakhapatnam, India Fekadu Yehuwalashet Maru Research Scholar Dept. of Management Studies, Andhra University Visakhapatnam, India Abstract Entrepreneurship is gradually recognized as an imperative driver of economic development, productivity, innovation and employment, and it is widely accepted as a key facet of economic energy. Today countries are facing with massive challenges of high altitudes of unemployment among the youth, especially university fresh graduates, due to lack of work experience, low skills based education. It was confirmed through research that the entrepreneurial intentions and attitudes lead potential entrepreneurs towards entrepreneurial activity. Attitudes towards the entrepreneur, entrepreneurial activity, and its social functions are determinant factors for management students to decide an entrepreneurial career. The growth of mass management education institutions, the unemployment problem of university graduates is becoming more and more serious. In this paper we investigate the attitude and effects of entrepreneurship education on students entrepreneurial intentions to maintain the gap. Research about the attitude of entrepreneurship education is still in infancy. Therefore, the main objective of this study is to evaluate the attitude of management students towards their career as Entrepreneur & Entrepreneurship, and the contribution of university entrepreneurship development program. Keywords- Entrepreneur, Entrepreneurship, Attitude, Management Students INTRODUCTION Entrepreneur is a term applied to a person who is willing to launch a new venture or enterprise and accept full responsibility for the outcome. Jean Baptiste, a French economist, is believed to have coined the word "entrepreneur" in the 19th century - he defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediately between capital and labor". In 1930, Austrian economist Joseph Schumpeter defines it, as a person who is willing and able to convert a new idea or invention into a successful innovation, or creating new products including new business models. Entrepreneur: is someone who starts a company, arrange business deals, and takes risks in order to make profit (Hailay, 2007). Entrepreneurship resulted in new industries but also in new combinations of currently existing inputs. Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. Entrepreneurs are the seed of industrial development and its fruits are greater employment opportunities, increase in per capita income, higher standard of living and balanced regional development. Recently there has been a growing interest in undertaking and intensifying actions promoting and supporting the idea of entrepreneurship as an attractive alternative to wage employment among students (Zenith, 2012). Entrepreneurship is increasingly recognized as an important generator of growth, innovation and especially new job creations (Bakotic, 2010). They also highlight the growing attention paid in many countries to fostering entrepreneurship through university education and training. Guerrero, Rialp and Urbano (2008) found that attitudes towards entrepreneurship are determinant factors to decide to be an entrepreneur. This indicates that entrepreneurship is an intentional process that emphasizes opportunities over threats. In the psychological literature, intentions have proven the best predictor of planned behaviour, particularly when that behaviour is rare, hard to observe, or involves unpredictable time lags. Ajzan and Shapero intention models proved useful in understanding business venture formation intentions as they offer a coherent, cost conscious, highly-generalizable and robust theoretical framework for understanding and prediction. LITERATURE REVIEW Entrepreneurship has emerged as the most potent economic force the world has ever experienced (Kuratko, 2005). The entrepreneurial interest has acquired its intensive level almost everywhere in the world. The developed economies consider it as a revitalizing socioeconomic agent, a way of coping with unemployment problems, a potential catalyst and incubator for technological progress, product and market innovation. At most of the developing countries, it is seen as an engine of economic progress, job creation and social adjustment (Mohar, Singh & Kamal, 2007). Most recent socioeconomic crises like rapid increase in fuel and food prices, serious threats to social peace and security etc. added to the need of entrepreneurial expansion everywhere in the world particularly at developing countries (Levenburg, 2008). This is due to the fact that entrepreneurs are the persons who usually organize and develop their own businesses and benefit from a range of fields, including various knowledge areas, hands on experience, creative visions and insights, network support, and risk taking Pihie (2008). They have a heightened ability and awareness for recognizing and audaciously exploiting business opportunities. They persistently and continually seek opportunity-laden information in order to satisfy internal motivators such as need for achievement and the fulfillment of competitive urges (Pech and Cameron, 2006). They act as catalysts of economic activity for the entire economy (Bygrave and Minniti, 2000). 325
2 Attitude towards entrepreneurship is an important aspect which helps to predict potential entrepreneurial behaviour in future where students who have the right attitude toward entrepreneurship will be more inclined to depend on themselves to run their own business after graduation rather being employed (Fitzsimmons, 2005). Throughout the globe, student curiosity in entrepreneurship as a career choice is rising, while curiosity in outmoded professional employment in giant business is slowly declining (Kolvereid, 1996). The global presence of entrepreneurship education must be discussed in order to fully understand the importance of entrepreneurship educations in institutions of higher education. Technical students show considerable interest in learning more about entrepreneurship, however most do not expect to pursue entrepreneurial careers. Not surprisingly, students who had taken an entrepreneurship course were more interested in starting their own business or working for a start-up than those who had not. They were also more likely to have an idea for a business, product, or technology (Couetil, 2012). The positive attitude and perceived behavioral control acquired from exposure to entrepreneurship education program may enable them to consider pursuing business venture as an alternative career after completing their studies or in their later years (Otuya, 2013). Adopting change management strategies are required to manage the entrepreneurial attitudes of the students. The faculty should act as a change agent in understanding, assessing and directing the entrepreneurial aspirations among the management students (Gangaiah, 2014). It has been established that the students of economics have more favorable attitude towards the benefits of education with respect to business startup in comparison with the students of mechanical engineering. The students of economics are of the opinion that education mostly contributes to their need for achievement, the knowledge of the basics of business management, development of internal locus of control and behavioral control (Remeikiene, 2013). Promotion of entrepreneurship within Higher Education Institutions is more likely to increase the interest of the students to choose entrepreneurship as a career where it can raise their attitudes, perceived behavioral control, self-efficacy, risk taking and intentions toward entrepreneurship (Kickul, 2008). There is a general agreement that attitudes towards the entrepreneur, entrepreneurial activity, and its social functions are determinant factors for university students to decide an entrepreneurial career (Veciana, 2005). The exposure to entrepreneurship environment has implication to the development of the attitude and intention. The favorable environments facilitate acceptance and support of intention to become an entrepreneur (Ibrahim, 2009). NEED OF THE STUDY Research about the attitude of entrepreneurship education is still its infancy. Most study has aimed at simply describing entrepreneurship courses at discussing the content of good entrepreneurship education or at evaluating the economic impacts of courses by comparing taker and non-takers. Some empirical studies do confirm that there is a positive impact of entrepreneurship education courses or programs at universities on perceived attractiveness and perceived feasibility of new venture initiation. The entrepreneurial activities play quite important roles in promoting economic and social development. For these reasons, in recent decades, the problems of entrepreneurship are focused by lots of scholars and policy makers. Because of the development of mass management education universities in India, the employment problem of university graduates is more and more serious. SCOPE OF THE STUDY The Study facilitated to evaluate only about Andhra University first year and second year management students outlook and opinion regarding their entrepreneurship concepts, intention and attitude. The study has also tried to find out the view of students concerning management education contribution on their entrepreneurship skill development. LIMITATIONS OF THE STUDY The study is micro level and limited to only one department of Andhra University, Visakhapatnam. This study is conducted bearing in mind the sample size of two hundred thirty students. The management degree pursuing students of Andhra University are the respondents which may not rationalize the survey as the view of students of other educational institute may differ. Because of bias and opinions of respondents, some responses of the questionnaire may differ from the reality. RESEARCH METHODOLOGY The study is case study in the form of cross sectional design in which data were collected using structured questionnaires. The methodology used by the researchers was descriptive approach for both qualitative and quantitative data. The researchers used samples of Andhra University management students. The questionnaire was in both open-ended and closeended format to obtain feedback from students regarding their attitude and intentions towards Entrepreneurship. The researchers used simple random sampling techniques to collect the required data from students of Department of Commerce and Management Studies of Andhra University. The researchers used both quantitative and qualitative data analysis methods. For the non-numerical data, the researchers used descriptive method of data analysis. The researchers used SPSS and MS-EXCEL to organize, summarize and analyze the data. HYPOTHESIS TESTING DATA ANALYSIS AND INTERPRETATION 1. There is insignificant relation between gender of management students and their attitude towards entrepreneur and entrepreneurship. One Way ANOVA 326
3 1. Entrepreneurs hip requires more intellectual than financial capital 2. Entrepreneurs hip is for people who have courage ANOVA Sum of Squares Mean Square and ideas Entrepreneurs hip can open up Opportunities to meet interesting people 4. Entrepreneurs hip is the best opportunity to become rich 5. People who cannot adapt to conventional jobs end up as entrepreneurs 6. Entrepreneurs can exploit their professional skills and competences more effectively 7. Entrepreneurs get rich on other people s efforts 8. Entrepreneurs take excessive risks 9. Entrepreneurs do not care about environmental issues to a sufficient extent 10. Entrepreneur s are unscrupulous and pursue their own self-interest A one-way ANOVA test was conducted to compare the relation between gender of management students and their attitude towards entrepreneur and entrepreneurship. Ten parameters were set for evaluating the attitude of students df F Sig. towards entrepreneurship. As per the result of ANOVA test there is not much significant relation between gender of management students and their attitude towards entrepreneur.894 and entrepreneurship. The significant level of 3rd and 9th parameters are and 0.000, which are less than 0.05, therefore ANOVA is statistically significant for these two parameters. Thus we reject null hypothesis and accept the alternative hypothesis, that there is significant relation between.461 gender of management students and their attitude towards entrepreneur and entrepreneurship on the basis of 3rd and 9th parameters. However, the significant level of 1st, 2nd, 4th, 5th, 6th, 7th, 8th, and 10th parameters are 0.894, 0.461, 0.614, 0.296, 0.531, 0.098, 0.446, and 0.185, which are more than 0.05, thus ANOVA is statistically not significant for these eight parameters. So that we reject alternative hypothesis, and accept the null hypothesis that there is insignificant relation between gender of management students and their attitude towards entrepreneur and entrepreneurship on the evidence of 1st, 2nd, 4th, 5th, 6th, 7th, 8th, and 10th parameters. 2. There is insignificant relation between management students future career preference as self-employed in own company, intension to setup own business and contribution of university entrepreneurial skill development program. One-Way ANOVA ANOVA Sum of Squares df Mean Square F Sig. 1. My university education has provided me with good tools for entrepreneurship My university education highlights entrepreneurship to an adequate as a career alternative 3. My university has an atmosphere that encourages entrepreneurship 4. At my department students appreciate entrepreneurship as a career alternative 5. At my department Faculty appreciate entrepreneurship as a career alternative
4 6. There are opportunities to business and contribution of university entrepreneurial skill develop new business ideas development program on the evidence of 1st, 2nd, 3rd, 5th, 6th, in the university th, 8th, 9th, 10th, 11th, and 12th parameters. environment My education in FINDINGS AND CONCLUSIONS Entrepreneurship provides me with enough knowledge Almost one-fifth of the student replied that they are willing of how I can develop my to start their career as self-employed in own company i.e. as an idea entrepreneur. The thing is worthy that even female students 8. My education in are almost in equal proportions who want to start their career as Entrepreneurship provides entrepreneur. However, nearly half of students studying me with enough knowledge management program are much interested in building career in of how can I influence my future place of work public sector organization. Whereas female students are more interested to work with public sector organization; the reason 9. My education provides me may be some reservation for them allocated by Government of with knowledge what I India. might expect of my future professional life More than one-third of students are willing to setup their business in service sector. The cause may be huge future for I know all about the service industry in India. The Government of India is practical details needed to implementing Make in India plan to provide enough subsidies start a business for Small Medium Scale Enterprises (SMSE). Still students have not shown much interested to start career in 11. My university gave me manufacturing industry. Taking about the interest in retail has enough knowledge/skills got fair response may be due to Government willingness to on Business Plan bring 100% FDI in retailing. Development From the skill I got from my University I believe that I would completely able to start a business A one-way ANOVA statistical test has conducted to examine the relationship between students future career entrepreneurial skill development program. 12 parameters were set to analyze the university entrepreneurial skill development programme contribution on their entrepreneurship skill development. As per the result of ANOVA test indicates that there is less relationship between students future career entrepreneurial skill development program. The significant level of 4th parameter is 0.046, which are less than 0.05, thus ANOVA is statistically significant for this parameters. So that we reject null hypothesis, and accept the alternative hypothesis that there is direct relation between students future career entrepreneurial skill development program on the basis of 4th parameters. Nevertheless, the significant level of 1st, 2nd, 3rd, 5th, 6th, 7th, 8th, 9th, 10th, 11th, and 12th parameters are 0.586, 0.294, 0.075, 0.223, 0.264, 0.212, 0.550, 0.468, 0.230, 0.568, and which are more than 0.05, therefore ANOVA is statistically insignificant. So that we reject alternative hypothesis, and accept the null hypothesis that there is insignificant relation between students future career preference as self-employed in own company, intension to setup own Nearly half of the students have serious intension of becoming self-employed followed by more than one-fourth of students are already under groundwork of starting their own enterprise. However more of technical (BE/B.Sc) students have a serious intention of becoming self-employed with 56 percent of total technical students followed by more than one-third of non-technical student. More than one-third of non-technical students are already under process of starting their own business. There are 9 per cent technical and non-technical student are already self-employed. There is not even single student who do not have intention or never thought about setting up their own business. This also indicates that the students who join the management degree have intention of becoming entrepreneurs in just after completion of study or in future. Majority of the students indicate that the university entrepreneurship development program contribution is at average level. So this indicates that the university should include customized Entrepreneurship skill development tools in its education system. The motivation of students at university as well as department level should be increased. Majority of students have suggested conducting workshop, training programs on entrepreneurship and seminars will help to develop and promote entrepreneurship skills. Many of them also recommended to arrange some motivational and awareness classes on various emerging industries their SWOT analysis and discussion. There is not much significant relation between gender of management students and their attitude towards entrepreneur and entrepreneurship as future career. Out of ten parameters, only two parameters are statistically significant and supported relation between gender of management students and their 328
5 attitude towards entrepreneur and entrepreneurship as future career. Majority of them indicated that the government should give more emphasis for new business creation by providing deferent facilities for the entrepreneurs. They stated loan access, training and development, advisory support, infrastructural facility and easy accessibility of facilities are among their recommendations. RECOMMENDATIONS In general, we can say that management students have good attitude towards Entrepreneur and Entrepreneurship as future career. And we recommend the following points to the university and government to proceed on it. As per the respondents, contribution of the University for the Development of Entrepreneurship skill is at average level and more critical activities should be done to increase the fruitfulness regarding job creation for its students in the future. Short-term or long term trainings on entrepreneurship skill development and motivation should be given by the university in collaboration with different organizations, city administrators, state as well as central governmental level offices. The training for the students will be conducted after completion of their management program or in the end semester. The university teaching and learning way should incorporate examples from real world entrepreneurs, guest lecture; experience sharing should be incorporated in the curriculum to increase the student s intention to become entrepreneurs. At the end we, the researchers, recommend to the universities to open MBA in Entrepreneurship specialization program and provide quality education to its students in the area of Entrepreneurship and selfemployment intention. This required revision of the curriculum, fulfill required materials, hiring qualified manpower including faculties, inaugurate its own showrooms and incubation center that students learn from it and well-organized entrepreneurship library. These motivate students to become successful entrepreneurs and job creators other than job seekers. REFERENCES [1] Bakotizc, D.A. (2010), Students' Perceptions and intentions towards enterpreneurship: The empirical findings from Croatia, The Business Review, Cambridge, 14 (2), [2] Couetil, N.E. (2012), Engineering Students and Entrepreneurship Education:Involvement, Attitudes and Outcomes, International Journal of Engineering Education, 28(2), [3] Fitzsimmons, J. R. (2005), Entrepreneurial Attitudes and Entrepreneurial Intentions: A Cross-Cultural Study of Potential Entrepreneurs in India, China, Thailand, and Australia, Babson-Kauffman Entrepreneurial Research Conference, (P. June 2005), Wellesley, MA. [4] Gangaiah, B.A. (2014), Impact of Indian Management Education in Developing Entrepreneurial Aspirations and Attitudes Among Management Students, Asia Pacific Journal of Research, I(I), (January ), [5] Ibrahim, O.E. (2009), College of Business, Retrieved 02 11, 2015, from University Utara Malaysia: %200oi%20Yee%20keat%20 Full%25paper.pdf (Accessed 22 February, 2015). [6] Kickul, J.E. (2008), Are Misalignments of Perceptions and Self-efficacy Causing Gender Gaps in Entrepreneurial Intentions among our Nation's Teens, Journal of Small Business and Enterprise Development, 15(2), [7] Kolvereid, L. (1996), Peception of Employment Status Choice Intentions. Entrepreneurship Theory and Practice, 20(3), [8] Kuratko, D.F. (2004), Entrepreneurship education in the 21st Century: From Legitimization to Leadership, PP. 16, Muncie. Retrieved from USASBE National Conference: Retrieved from M11_Entre_ Education. pdf (Accessed 22 February, 2015). [9] Remeikiene, R.E. (2013), Explaining Entrepreneurial Intention Of University, Students: The Role Of Entrepreneurial Education, Active Citizenship by Management, Knowledge Management & Innovation, Knowledge and Learning (pp ). Zadar, Croatia: Kaunas University of Technology, Lithuania. [10] Otuya, R.E. (2013), Entrepreneurship Educatoin: Influencing Students' Entrepreneurial Intentions, Internationa Journa of Innovative Research & Studies, 2(4), [11] Veciana, J.E. (2005), University Students' attitudes towards entrepreneurship: a two countries comparison, International Entrepreneurship and Management Journal, 1, [12] Zenith, M.S. (2012), Students Intention towards Entrepreneurship: A Review of Empirical Studies. International Journal of Business Economics & Management Research, 2(3), March. 329
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