Chapter I.docx

Chapter I INTRODUCTION

Background of the Study Nowadays, a lot of people want to put up their own business but does not have the knowledge, courage and dedication to enter the said field. A lot of hesitations and drawbacks were hindering them to start the kind of business they want. This is the main reason why did they enrolled in business courses like B.S. Entrepreneurship just to gain knowledge of how to run a business and be one of those successful entrepreneurs of our society. There

are

many

reasons

that

influence

individuals

to

consider entrepreneurship, one of the main reason is to earn money and avoid unemployment. Entrepreneurship helps boost our economy’s development and its satisfying that you’re able to contribute something in your society through it. Entrepreneurship is one of those who makes a lot of money, but entering a business goes through a lot of decision-making. It’s not the easiest because you’ll have to take the risk and taking risk means losing money if you fail and such, but if

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you’re passionate and driven, you’ll be able to make it and be successful throughout your chosen field in business. You’ll notice, as the process of learning goes on, some realizes that they’re not meant to become entrepreneurs but the truth is they were afraid to take the risk of putting up a business. According to a research study conducted in Pakistan, “Youth unemployment

is

one

of

the

most

severe

socio-economic

problems threatening developing and underdeveloped countries and Pakistan is not exceptional in this situation and this issue has become even much more bothersome in many parts of the

world.”1

It

only

means

that

Philippines

are

also

experiencing youth unemployment. Some of those students who got degrees doesn’t have job it is because, maybe, the courses they took are not yet in demand as of the moment. That’s why some of the students here in our country are taking business courses

like

entrepreneurship.

They

think

that

being

an

entrepreneur or being self-employed is a solution to this kind of problem that we are experiencing. According also to this research, “The people engaged in entrepreneurism

1

stated

great

advantages

including

Khursheed, A. (2017). Entrepreneurial perceptions of university of central Punjab and Lahore and also finding hindrances they perceive. Lahore, Pakistan. J. Bus Fin, Aff.

3

independence in the choice making, high self-worth and more wisdom of manage.”2 It is true because as we all know, if we became an entrepreneur we are the owner of the business, we are the one who has the power over our people. We have the power to decide over the flow of business. This is what our students want, to be the leader and owner of their own business. In lined with this, “Many experimental findings show that the students from underdeveloped countries have sharper and stronger entrepreneurial mind-set than those the students of developed countries.” As what the researchers have observed, this statement is really true. Underdeveloped countries aims to be a part of those countries who are continuously developing that’s why they’re mind set focuses on developing their country’s economy. Being an entrepreneur is a big help to our country, it will help boost our slowly progressing or developing country. In the past, no study has explored the factors which possibly influence students to become entrepreneurs. This study is conducted to fill the current gap in literature by finding the factors that influence B.S. Entrepreneurship students in selecting entrepreneurship as a career option in the future.

2

Ibid.

4

One of the main reasons why did the researchers come up with this study is because a lot of students nowadays were entering business courses and dreams of becoming one of those successful people in the field of business. But in reality, as the process of learning goes on, you will find out that not all of them were really into business. Some shifts to another course because they felt like they didn’t belong, some

stay

but

doesn’t

have

the

passion

to

become

an

entrepreneur.

Objective of the Study This

study

aims

Entrepreneurship

that

to

determine

influence

the

the

Factors

students

of

of B.S.

Entrepreneurship of University of Eastern Philippines to Become Entrepreneurs. Specifically it aims to: 1. find the demographic profile of respondents in terms of: 1.1

Sex

1.2

Age

1.3

Working Experience

2. determine what are the Factors of Entrepreneurship that influence

the

students

of

B.S.

Entrepreneurship

of

5

University

of

Eastern

Philippines

to

Become

Entrepreneurs. 3. see if there’s a significant relationship between the demographic profile and the students of the Bachelor of Science in Entrepreneurship of the University of Eastern Philippines. 4. identify if there is a significant relationship between the

factors

that

influences

the

students

to

become

entrepreneurs and the students of B.S. Entrepreneurship students.

Significance of the study This study will help them to know the Influential Factors of Entrepreneurship which influences the students of B.S. Entrepreneurship of University of Eastern Philippines to Become Entrepreneurs. Result of this study would help benefit the people who are concerned about this issue. Specially, people:

it

will

benefit

the

following

group

of

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Teacher. Through this research they will be able to know whether the factors enumerated are really influential to the B.S entrepreneurship students. Students. The result of this study will help them to know what are that influential factors that compels them to become entrepreneur and if this factors really forces them to become entrepreneurs. Parents. Through this research they will be able to support and guide their children to pursue on the field they want to go with. Researcher. For the sake also of future researcher/s this will set as guide to them for their related study.

Scope and Limitations of the Study This study is an analysis to determine the Factors of Entrepreneurship

that

Entrepreneurship

of

Influence

University

of

the

students

Eastern

of

B.S.

Philippine

to

become Entrepreneurs, conducted during the 1st semester of school year 2017-2018. It was only limited to selected respondents for the reason that there are respondents who didn’t take seriously

7

in answering the researchers’ questionnaire. It is also to be conducted only here in UEP because it’s the only college institution

here

in

Northern

Samar

which

offers

B.S.

Entrepreneurship, in which the respondents of this research came from. If it will be conducted outside Northern Samar it will surely be costly and a lot of time shall be needed for that. Another, almost all of the Review of Literatures (ROLs) of this study was taken from the studies abroad or in simple terms all of its ROLs are from foreign studies. It is for the reason that there are no studies found, here in the local area, related to this topic. Theoretical Framework In this research, there are two major core theories that the researchers had identified. These are; the Psychological Theories and the Sociological Theories of Entrepreneurship. First

theory

are

psychological

entrepreneurship

which

attitudinal

psychological

entrepreneurs

and

from

trait

theories

contends/states

that

attributes

non-entrepreneurs,

of

certain

differentiate

and

successful

entrepreneurs from unsuccessful ones. Second theory suggest that

entrepreneurial

individual’s

behavior

interaction

with

is the

a

function

society.

of

the

Sociological

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models that have received significant empirical support are the

inter-generation

inheritance

of

enterprise

culture,

social marginality and ethnicity.3 The first theory means that the way people think, speak and act will give others an overview about one’s personality, whether he/she have the qualities of being a successful entrepreneur. In lined with this are sub-theories about the psychological achievement

factors,

(n-ach)or

the

following

McClelland’s

Theory

are; of

Need

for

Achievement

Motivation, Risk taking propensity and Risk Bearing Theory.4 According to the theory of Achievement Motivation by David McClelland, people have three motives for accomplishing things; the need for achievement, need for affiliation and need for power. As we have observed, people nowadays do things to gain achievement/accomplishment and power. They want to show others that they are able to achieve and accomplish something that is worth the time, effort and money. This is one of the reasons why people tend to enter the world of business and become entrepreneurs.

3

Ranthod, J.(2017). Entrepreneurship theories and models. Retrived August 12, from www.linkedin.com. 4 Ibid.

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Also, they take the risk of entering the field of business without knowing what will be the possible outcome of their actions. They are not afraid to accept the challenge it might give to them. This is what the theory of risk taking propensity means5. People who are more likely to accept risk and taking chances are more likely of being self-employed than those who do not take risk. This is also another factor that influences a student to become an entrepreneur and one character of a good entrepreneur is being a risk taker. In lined

with

testing

of

this,

Palmer

entrepreneurs,

has “be

suggested directed

the

psychological

most

toward

the

measurement of an individual’s perception and handling of a risk” (1971, p.38). This means that it will still depend on the person’s individual perception of how he/she will handle the consequences of the situation he/she choose in taking risk. Another sub-theory under psychological theory is the Risk Bearing Theory by F.B. Hawley. According to him profit is a reward of risk bearing6. Production involves various kinds of risks and other emergency expenses. Nobody will bear risk unless there is exception of profit. People take risk

5

Ibid. Lama, N.(2015). Risk bearing theory profits. Retrieved September 28, 2017, from www.nabrajalama.files.wordpress.com. 6

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for some reasons and one of the reasons they possibly have is they will be able to get reward after all. Just like in the world of business, entrepreneurs take risk because they aim to get an exchange or reward from all the efforts, money and time they have contributed and exerted in business. This reward in business is what we know as profit. The next theory is about the individual’s interaction towards the society which is the sociological theory. In the field of business, we must be able to interact and socialize with others so that we will be able to get or have a lot of colleagues which in the mere future will help us in our own business. In lined with this theory, an entrepreneur must be able to socialize with others for the assurance of getting help when he/she begins his/her business. One of the subtheories that is related to this study is the so called Social Marginality Model (Stanworth and Curran, 1976)7. This theory suggests that individuals who perceive a strong level of incongruence between their personal attributes and the role they

hold

in

society

will

be

motivated

to

change

or

reconstruct their social reality. This means that a person is motivated to change his/her personality or self when they find their self-different from others so that he/she will be

7

Ranthod, J. op. cit, p. 6

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able to be consistent in the social reality. In relation with the researchers’ study, a student must be able to interact with others. This is what influences others to become an entrepreneur. Through entrepreneurship they will be able to interact with other people and get a lot of colleagues which will, surely, in the future can give them help in their chosen field. All of these theories show that there are the positive and negative effects of being an entrepreneur. In lined with this research study, it gives us an idea that psychological and sociological factors have a big influence to students to become successful entrepreneurs in the long run.

Conceptual Framework This study will determine the factors that influence the B.S.

Entrepreneurship

students

of

UEP

to

become

Entrepreneurs. As the diagram shows, there are two variables. The independent variables, on the first box, which consists of the

demographic

profile

of

the

respondents

and

the

influential factors of entrepreneurship and the dependent variables, on the second box, which are the Influential

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Factors of Entrepreneurship that Compels the students of B.S. Entrepreneurship of University of Eastern Philippines Become Entrepreneurs.

to

According to the study conducted by

Teresa Gomes da Costa and Pedro Mares with regards to age, older students have higher entrepreneurial intention than younger students. It was observed in their study that younger students are less likely to engage in enterprising behaviour than the older students. According

to

the

study,

male

students

have

higher

entrepreneurial intention than females. They believed that male are more business minded that of females. They also believed that male are more into business than the female. Another, in this study also, work experience does not affect the students’ intention to become entrepreneurs. According entrepreneurship

also and

to

this

perceived

study,

attitudes

behavioural

toward

control

was

significantly influenced the entrepreneurial intention of the respondents. The conceptualization of the study is shown in Figure 1.

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Paradigm Independent variable

Dependent

variable

1. DEMOGRAPHIC PROFILE: 

Sex



Age



Working Experience

The students of B.S. Entrepreneurship of University of

2. Influential

Eastern

Factors of

Philippines

Entrepreneurship  



Attitude toward Entrepreneurship Perceived behavioral control Entrepreneurial intentions

Table 1. Paradigm It shows the relationship between the two variables.

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Null Hypothesis There is no significant relationship between the profile of the respondents and the factors that influence the students of B.S. Entrepreneurship of University of Eastern Philippines to Become Entrepreneurs.

Definition of Terms To facilitate better understanding of this study, the following terms were defined conceptually and operationally. However, some operational definitions are also the conceptual definitions because they are used in the same content Attitude towards entrepreneurship. Society’s perception towards entrepreneurship. Entrepreneur. Operationally, a person who organized and operates a business, taking a greater than normal financial risks in order to do so. Conceptually, a person who is commonly seen as a business leader and innovator of new ideas and business processes. Entrepreneurship.

It

is

defined

as

“the

process

of

creating new venture and new organization”. Through that process, some valuable things will be created from nothing by

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contributing

time,

work

effort,

money

and

risk

to

get

intrinsic rewards and extrinsic rewards. Perceive Behavioural Control. It refers to people’s perceptions of their ability to perform a given behaviour8.

8

http://people.umass.edu/aizen/pbc.html