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ASSIGNMENT
On
Summary of research article
ENTREPRENEURSHIP
Assignment No. 3

Submitted To:
Prof. Khawaja Hashim
Submitted By:
Ali Hamza
Registration No.
M1F17BBAM0025

Program: BBA (HONS)

Semester: 6th

University Of Central Punjab

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Entrepreneurship and Small Business

Summary
Entrepreneurship is a source of innovation, job creation and economic growth, as it is important to
attract the young and the educated to become entrepreneurs. Undergraduates are an important
source of nascent entrepreneurs in the future and consequently it is interesting to explore their
intention for opportunity entrepreneurship. The entrepreneurial intention of university students
consistently attracts scholarly interest. For an overview of historical and recent entrepreneurship
development in Malaysia. There are regular competitions on business plans conducted within
tertiary institutions in Malaysia with support from multi-national corporations.
Knowledge about entrepreneurship will be very useful when fresh graduates are unable to find
their ideal jobs or retrenched when the economy slows down, rather than they start their new
business with new ideas and innovation. Past studies examined students’ entrepreneurial intention
in different countries, this study aims to add to the existing body of knowledge by empirically
testing whether students’ entrepreneurial intention is born or made. Entrepreneurship can play an
important role in the economic development of a country. Opportunity entrepreneurship refers to
starting a business. Necessity entrepreneurship refers to starting a business as the best option
available for employment but not necessarily the preferred option.
Entrepreneurial intention refers to the intention of an individual to start a new business and it is a
strong indicator of potential entrepreneurship. Entrepreneurship differs across different stages of
economic Development In the first stage of economic development with agricultural and small-
scale manufacturing, the level of self-employment is high. In the second stage of manufacturing
economy, rates of self-employment are decreasing because return from employment is greater than
return from self-employment. In the third stage of services economy, entrepreneurial activities are
rising due to better return from self-employment.
There are factors that influence entrepreneurship across all countries. The first determent of
entrepreneurial intension is the role models and family are conjectured to relate to the emergence
of entrepreneurship. Role model and family are not synonymous because role model is a wider
concept that includes other people besides family. Negative motivation is a result of poverty,
insecurity and neglect childhood. On the other hand, the pull factor or positive motivation comes
from family business with parental role models. Family responsibilities at a young age or
opportunities to engage in entrepreneurial activities. You can learned from your family’s
experience and skills. Previous research suggests that higher level of prior family business
exposure is positively associated with entrepreneurial intention. Entrepreneurship rates generally
are the highest in the 25 to 34 years-old. Even though undergraduates have not yet reached the
point of planning to start a business. But researchers are interested to assess undergraduates’ level
of interest in new venture creation because they are an important source of nascent entrepreneurs
in the future. It is likely that undergraduates may decide to become an entrepreneur prior to actual
identification of an entrepreneurial opportunity. Work experience gained from employment,
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potential entrepreneurs develop and enhance their knowledge, skills and commercial awareness.
A potential entrepreneur’s past and present experience act as an incubator that exerts a central and
often important influence on their capability to effectively engage in opportunity recognition and
exploitation. Work experience, family background and education should also increase self-efficacy
of potential entrepreneurs. There is intellectual disagreement on the impact of education on
entrepreneurship. The effect of education on entrepreneurship also differs in different country, for
example, in Europe the relationship is negative, while the opposite is true in the USA is positive.
Education will open up more employment opportunities, provide higher return and security from
employment, thus reducing the intention for entrepreneurship. Some researchers found that
specialization in business studies positively and strongly influence entrepreneurial intentions. One
study notes that although the education attainment of women entrepreneurs is comparable to men
but most often they studied liberal arts rather than business, engineering or technical subjects. A
total of 768 questionnaires were collected. A quick check was performed in class when collecting
the questionnaires from undergraduate students and questionnaires were returned to them on-the-
spot to fill in any missing response. After collecting the data,
Sample size is 755 respondents which include 300 students who are studying Bachelor of Business
programme, 258 students who are studying Bachelor of Hospitality Management programme, 52
students pursuing Diploma in Business programme and 142 students pursuing Diploma in
Hospitality Management programme and three students did not indicate their programme of study.
Overall, students from the School of Business made up 47% of the sample and students from the
School of Hospitality Management made up 53%. The sample consists of 45% male and 53.5%
female whereas 1.5% of students did not answer this question on gender. The intentions to start
business in the future are statistically different across gender, where male students are more likely
to start new business compare with female students. Next, the intentions to start business in the
future are statistically different for different family backgrounds with higher intention for those
from family involved in business.
The intention to start business in the future for students who have previous entrepreneurship
education is statistically different from students without previous entrepreneurship education. A
moderate level of intention to start business in the future among undergraduate students, The
Entrepreneurial Intentions in Malaysia is only 8.7. A plausible explanation for the moderate level
of undergraduates’ intention to start new business in the future despite the high level of
legitimation is the U-shaped relationship between entrepreneurial activity and stage of economic
development. Intention for new venture creation in the future is lower for female undergraduates
and this finding is consistent with lower entrepreneurship rate of women than men. This study
reasons that Malaysia, being a developing and less innovation-driven economy. From this study,
these gender-specific obstacles seem to exist in both Western and Oriental cultures and therefore
merits further scholarly investigation. As signaled by the result, the intentions to start business in
the future differ significantly across programmers of study. It appears that potential entrepreneurs
are more likely to come from some programmers of study relative to other programmed of study.
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This study argues that the overall intention to start business is moderate for both schools and more
needs to be done to develop a larger pool of potential entrepreneurs.
The results also suggest that knowledge about entrepreneurship gained from previous
entrepreneurship education can increase the likelihood of new venture creation in the future. There
is a positive linear relationship between percentage of students with previous entrepreneurship
education within various programme of study and intentions to start business in the future. There
is a high possibility that by exposing students to entrepreneurship, their intentions to start new
business in the future will increase. The four variables of family business background, gender,
programme of study and previous entrepreneurship education individually affect undergraduate
students’ Entrepreneurial intention.
Family business background appears to be the most important predictor of students’
Entrepreneurial intention. This study reveals that previous entrepreneurship education is the least
significant determinant of students’ entrepreneurial intention. It is reasonable to argue that
although entrepreneurship education might raise the students’ entrepreneurial intention. This
finding that undergraduate students’ entrepreneurial intentions are born rather than made is
suggestive rather than conclusive. The discussion put forth in this paper does not intend to negate
the important influence of entrepreneurship education. Future research should be designed to
control for students’ family business background and gender in order to evaluate pure effect of
entrepreneurship education. Future research can investigate the moderating effect of family
business background and gender for the relationship between entrepreneurship education and
entrepreneurship intention.
Entrepreneurship is found in all professions. As such, it will be interesting for future research to
investigate students from other schools at this particular university, especially in the pure science
disciplines such as medicine, biosciences, engineering, et. A comparison on intentions to start
business in the future between students from social sciences and pure sciences can be conducted.
Entrepreneurship is a viable, satisfying, rewarding and valued career option for graduates. In
recognition of the immense contributions of entrepreneurs, they are sometimes colloquially
referred to as the ‘movers’ and ‘shakers’ in society. If entrepreneurship is considered a source of
innovation, job creation and economic growth for a country, then it is pivotal to attract the young
and the educated to become entrepreneurs. The purpose of this paper is twofold. The first purpose
is to describe undergraduate students’ intention to start a business in the future.
Based on the sample surveyed, this Study found that undergraduates’ propensity for new venture
creation in the future is only slightly likely, suggesting that undergraduate students have a not so
favorable perception of entrepreneurship as a career option. The four demographic factors included
in this study are related to students’ entrepreneurial intention. The notion of born entrepreneur is
supported by both proxies (family business background and gender) whereas the notion of made
entrepreneur is only supported by one proxy (previous entrepreneurship education) and the least
significant factor. In the light of these findings, therefore, this study argues that entrepreneurs are
more likely to be born than made.