ENTREPRENEURIAL INTENTIONS MODEL AMONG UNIVERSITY STUDENTS

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1 Doctoral Track and Conference ENTREPRENEURSHIP, CULTURE, FINANCE AND ECONOMIC DEVELOPMENT ENTREPRENEURIAL INTENTIONS MODEL AMONG UNIVERSITY STUDENTS Jill Kickul*, Antonia Madrid-Guijarro** * Professor, Director Stewart Satter Program in Social Entrepreneurship, NYU Stern School of Business ** Ass. Professor Professor in Accounting and Finance at the Polytechnic University of Cartagena, Spain,

2 Entrepreneurial Intentions Is The Pipeline of Future Entrepreneurs Strong or Weak? Using a Longitudinal Approach to Examine the Role of Perceptions and Self-Efficacy in Generating Entrepreneurial Intentions Among Young Women and Men Jill Kickul, Director, Stewart Satter Program in Social Entrepreneurship NYU Stern School of Business Antonia Madrid-Guijarro

3 Introduction Men continue to be more active in entrepreneurship than women across the globe Largest gaps in middle income nations: men 75% more likely than women to be entrepreneurs In US, men are twice as likely as women to be in the process of starting a new business Research among teens and young adults suggest significantly lower interest among teen girls in entrepreneurial career path all pointing to a potential pipeline issue

4 Introduction Before Understanding Intentions.. What are their motivations? Financial rewards Greater flexibility and work/life balance Greater autonomy

5 Who are the Entrepreneurs of the Future? What are attitudes of teens towards business and entrepreneurship? What are motivators and characteristics of teens (especially girls) interested in becoming entrepreneurs?

6 Background of Study Teen Girls on Business: Are They Being Empowered? (Marlino and Wilson, 2003) Simmons School of Management and The Committee of 200 Nationwide study of the career aspirations, values and expectations of today s teens To inform and stimulate dialogue on the education of young women for career opportunities in business and entrepreneurship

7 Model Self-Perceived Business Leadership Skills Gender Race/Ethnicity Entrepreneurial Interest Motivating Factors for Career Interest

8 Sample surveys of middle and high school teens 17 focus groups with teen girls, parents and teachers 15 depth interviews with education specialists

9 Analysis Sample: Teens extremely or somewhat interested in starting own business (n=1897) Gender Race/Ethnicity Self Perceptions on Leadership/Management Skills Self ratings on 12 skills Motivations Importance of 11 factors in future career Control variable/income

10 Interest in Entrepreneurship total, % extremely or somewhat interested Boys Girls

11 Interest in Entrepreneurship Girls, % extremely or somewhat interested African American Hispanic Asian American White/Caucasian 10 0 And actually when you have your own business, you feel stronger, like ooh, I m macho, you know? Latina High School Girl

12 Motivations Results of Factor Analysis Factor 1 (Relational) 2 (Social) 3 (Autonomy) Being respected by my friends and family.678 Having a good relationship with my boss.663 Working with other people.585 Having enough time to spend with my family or friends.378 Helping other people Making the world a better place.812 Being my own boss.617 Being in charge of other people Working by myself Not having to work too hard.549 Variance Explained Eigenvalue

13 Estimated Marginal Means Motivations by Gender and Race/Ethnicity 3.8 Estimated Marginal Means of Autonomy 4.8 Estimated Marginal Means of Money Gender 4.0 Gender 2.8 Male 3.8 Male 2.6 Hispanic White African American Asian Female Native American 3.6 Hispanic White African American Asian Female Native American Ethnic Ethnic I want to be my own boss That s when I ve reached like my highest level of success, when I m taking charge of everything, where I m the boss. African American High School Girl

14 Estimated Marginal Means Motivations by Gender and Race/Ethnicity 4.6 Estimated Marginal Means of Relational Estimated Marginal Means of Social Gender Male Hispanic White African American Asian Native American Female 3.6 Gender Male Ethnic 3.4 Hispanic White African American Asian Native American Female Ethnic

15 Self Perceptions Business Leadership Skills (aggregate) 4.0 Estimated Marginal Means of Leadership Gender 3.6 Male 3.5 Hispanic White African American Asian Native American Female Ethnic

16 Estimated Marginal Means Self Perceptions Business Leadership Skills (specific) 4.0 Estimated Marginal Means of Mng. Money Estimated Marginal Means of Decisions Gender Male Hispanic White African American Female 3.9 Ethnic 3.8 Gender 3.7 Male 3.6 Hispanic White African American Female Ethnic

17 Need to Support Self/Family and Interest in Entrepreneurship 100% 80% 60% 40% 20% 0% Male, Hispanic 86.90% 85.60% 86.30% Female, Hispanic 86.40% 85.60% 86.00% Male, African American Female, African American Entrepreneurial Interest No Entrepreneurial Interest Overall 83.30% 69.70% 77.80% 89.10% 83.70% 86.70% Male, White 90.20% 86.20% 88.40% Female, White 77.20% 77.90% 77.60%

18 Study Limitations Data is cross sectional Sample limited to middle and high school teens Nonprobability sample Males underrepresented in analysis Household income not directly measured (based on zip codes) Leadership skills measure based on management, not entrepreneurship

19 Conclusions - Gender Gender Effects Interest in entrepreneurship: Lower among girls Among girls interested in entrepreneurship: Motivations: Social/relational factors more important for girls Self perception on leadership skills: Higher among girls

20 Conclusions Race/Ethnicity Interactions between gender and race/ethnicity Interest in entrepreneurship: Higher among girls of color Among girls interested in entrepreneurship: Motivations: Both social/relational and money factors higher for girls of color Self perception on leadership skills: In general, girls of color rated themselves higher

21 Implications for Educators How do we build curriculum for future entrepreneurs around differing motivations and skills? How do we accurately measure the effectiveness of entrepreneurship education (quantitative/qualitative)? How do we identify, develop, and implement outreach programs that target groups with strong interest but low resources?

22 Count Count Entrepreneurship Interest and Leadership: Overall Entrepreneurship Int 500 Business Interest No Interest 400 No Interest 500 Low Medium High Interested 300 Low Medium High Interested NTILES of LEADER NTILES of LEADER Entrepreneurship Interest Business Interest

23 Count Count Entrepreneurship Interest and Leadership: Hispanic Girls Entrepreneurship Int Business Interest 60 No Interest 40 No Interest 50 Low Medium High Interested 20 Low Medium High Interested NTILES of LEADER NTILES of LEADER Entrepreneurship Interest Business Interest

24 Count Count Entrepreneurship Interest and Leadership: African American Girls Entrepreneurship Int No Interest 10 Business Interest No Interest 10 Low Medium High Interested 0 Low Medium High Interested NTILES of LEADER NTILES of LEADER Entrepreneurship Interest Business Interest

25 New Study.. Intentions Across MBA and Early Career

26 Proposed Model Research Question 1 Gender Gender Entrepreneurial Self-Efficacy Entrepreneurial Entrepreneurial Intentions Intentions Entrepreneurship Entrepreneurship Education Education Entrepreneurial Entrepreneurial Behavior Behavior Research Question 2 Research Question 3

27 Methodology Integrate and analyze data gathered in three parallel studies conducted between 2002 and 2004 with three discrete age groups representing various points in the educational and career pipeline A multiple-models approach (Baron & Kenny, 1986) across all three data sets in order to analyze the direct and indirect relationships between gender, entrepreneurial education, entrepreneurial self-efficacy, and entrepreneurial intentions and, when possible, entrepreneurial behaviors Sample sizes: middle and high school n=4,292 MBA level n=933 Approximately 5-10 years post MBA education n=807

28 Research Question 1 Research Question 2 Dependent Variable = Entrepreneurial Intentions Dependent Variable = Actual Entrepreneurial Behavior Relationships Equation Middle/HS MBA Early Career 1 Gender Self Efficacy Gender DV Gender DV Self-Efficacy DV R F What role does gender play in entrepreneurial self-efficacy and entrepreneurial career interest (entrepreneurial intentions) among: a) Middle and high school students? b) MBA students? 2. What role does gender play in entrepreneurial self-efficacy and actual entrepreneurial behaviors at the early-career stage (6-10 years post MBA)?

29 Research Question 3 Research Question 4 Dependent Variable = Self-Efficacy Relationships Step MBA Early Career Dependent Variable = Actual Entrepreneurial Behavior Early Career 1 Gender Entrepreneurship Education Interaction of Gender by Education (no longer significant in Step 3) 3 Mediation: Self- Efficacy R F Given the issues related to gender and self-efficacy discussed above, what, if any, are the relationships between entrepreneurial education, gender, and entrepreneurial self-efficacy among: a) MBA students? b) Early Career adults? 4. What are the relationships between entrepreneurial education, gender, entrepreneurial selfefficacy and: a) Entrepreneurial intentions among MBA students? b) Entrepreneurial behaviors among Early Career adults?

30 Conclusion For middle/high school students gender had a strong effect on entrepreneurial self-efficacy and intentions Effects of gender on entrepreneurial intentions were partially mediated by entrepreneurial self-efficacy For early career sample, same gender differences on entrepreneurial self-efficacy, but not on entrepreneurial behavior But a significant relationship between entrepreneurial self-efficacy and entrepreneurial behavior

31 Conclusion Interaction of gender and education had a significant influence on self-efficacy Females who had received entrepreneurship education were more likely to have higher entrepreneurial self-efficacy Looking at relationships between entrepreneurial education, gender, and entrepreneurial self-efficacy on the entrepreneurial behaviors for Early Career adults: interaction of gender and education significant for entrepreneurial behavior significant effects of self-efficacy on behavior swamped the effects of gender and education while entrepreneurship education significantly impacts entrepreneurial behaviors, the effects work through the intervening influence of self-efficacy

32 Entrepreneurial So What Factor Entrepreneurial Education Matters! Early in Pipeline, building self-efficacy Opportunity recognition, managing risks and ambiguity/complexity, planning process, marshalling resources (financial, social), growth management Later, self-efficacy and actual entrepreneurial behavior and action But where and how

33 Interdisciplinary Emphasis Interdisciplinary Emphasis Entrepreneurial Community Partnering Partnering Schools Schools School of School of Management Management College College of of Arts and Sciences Arts and Sciences Library Library and and Information Sciences Information Sciences Cutting-Edge Research Case Integration and Development Visiting Visiting Entrepreneurial Entrepreneurial Scholars Scholars Pedagogical Innovations Curriculum Design and Structure Aspiring Aspiring Entrepreneurs Entrepreneurs RAVE RAVE Entrepreneurial Entrepreneurial Advisors Advisors Mentoring, Advising Supportive Entrepreneurial Network Resident Resident Entrepreneurs Entrepreneurs Convening Assembly Community Development External External Partners Partners The The Commonwealth Commonwealth Institute Institute John Hancock John Hancock Financial Financial Women Entrepreneurs Women Entrepreneurs In In Science Science and and Technology Technology WAVE (VC, angels) WAVE (VC, angels) Entrepreneurs in Entrepreneurs in the Arts the Arts Setting the the Context for for Entrepreneurial Skill Skill Development

34 MBA Entrepreneurship Certificate: Course Sequence 1. Pathways to New Ventures 2. Entrepreneurship and New Venture Management 3. Growth Strategies for the Emerging Enterprise 4. Entrepreneurship Practicum Immersion Experience in an Entrepreneurial Venture (a 15-week externship/fellowship with an entrepreneurial firm)

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