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A COMPARATIVE STUDY ON ATTITUDE TOWARDS

ENTREPRENEURSHIP AMONG MBA AND OTHER

STUDENTS

Shaik Karim1, Dr. Ch.Venkataiah

2

1Research Scholar,

2Associate Professor, GITAM School of International Business, GITAM

University, Visakhapatnam, (India)

ABSTRACT

Entrepreneurship contributes immensely to the economic growth and thereby plays a vital role in the

development process. Business organizations and Governments across the world have hailed the importance of

entrepreneurship and its contribution to socio-cultural and economic development. There is general agreement

that attitude towards the entrepreneur, entrepreneurial activity, and its social function is determinant factors for

university students to decide an entrepreneurial career? This paper aimed at assessing student’s beliefs and

attitudes toward new venture creation and the entrepreneur. It also attempted to determine any significant

differences in the respondent’s attitude when grouped by (a) gender (b) entrepreneurs among relatives and (c)

course. The respondents were university students studying UG and PG courses in Chittoor District of Andhra

Pradesh (India). The data were analyzed using MS Excel and SPSS package. Results reveal a positive

entrepreneur’s image and favorable perception of desirability of new venture creation,

Keywords: Attitudes, Beliefs, Entrepreneurship, Perception, Students

I. INTRODUCTION

No country in the world can ignore the development of entrepreneurship as the economic development depends

upon it. Entrepreneurship has been a buzzword especially among young people. Experts view entrepreneurship

in various perspectives. Entrepreneurship is the activity of establishing and managing a business for profit and

growth [1].Entrepreneurship is the professional application of knowledge, skills and competencies and/or of

monetizing a new idea, by an individual or a set of people by launching an enterprise de novo or diversifying

from an existing one (distinct from seeking self employment as in a profession or trade), thus to pursue growth

while generating wealth, employment and social good [2].

Entrepreneurship contributes immensely to the economic growth and thereby plays a vital role in the

development process. It sows the seeds of development and that, in turn, facilitates the growth, it is the policy

goal of many governments to develop a culture of entrepreneurial thinking. In India, entrepreneurship was

initially displayed in only certain communities. Faced with the problem of limited supply of entrepreneurship,

Government of India has taken several positive measures during the plan periods not only to develop

entrepreneurship but also to promote small scale enterprises. Despite the efforts of support organization and

entrepreneurship development centers, it is felt that much is to be done to make entrepreneurship as an attractive

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career. In this regard, entrepreneurship education has gained importance and is drawing the attention of policy

makers, academicians and researchers. Development of entrepreneurship is essentially dependent on the

entrepreneurial attitude, that is to say a special frame of mind marked by an independent energetic spirit to

assume risks and, of course, courage to undertake something new.

The attitudes towards the entrepreneur, entrepreneurial activity, and its social function are determinant factors

for students to decide an entrepreneurial career. This study aims at assessing the attitudes of students towards

entrepreneurship and enterprise formation in Chittoor District of Andhra Pradesh. The study also examines if

there is any difference in the attitudes of Management and Other Students.

II. THEORETICAL FRAMEWORK

The entrepreneurial model developed by Krueger and Brazeal have been used in our research. Their model takes

a social psychology perspective and is a “process-based, theory-driven micro model with macro consequences”

[3]. The model is based on Shapero‟s work on the entrepreneurial event and Ajzen‟s Theory of Planned

Behavior. The Shapero‟s model of entrepreneurial event formation focuses on how the cultural and social

environment affects the choice of an entrepreneurial path. He states that the intent to start a business derives

from perceptions of both, desirability and feasibility and the Ajzen‟s Theory of Planned Behavior [4], designed

to predict and explain human behavior, centers on the individual‟s intention to perform a given behavior.

Source: Krueger and Brazeal1994:95

Figure 1. Model of entrepreneurial potential

Therefore credibility requires that the behavior be seen both desirable and feasible. These antecedents affect the

intentions toward the behavior or action of new venture creation. The model allows for the case that although

the individual perceives the new venture creation desirable and feasible, and therefore credible, he/she has not

the intention to realize the behavior because the precipitating event may be lacking.

2.1 Perceived Venture Desirability

The Krueger and Brazeal‟s model state that this construct embraces the two “attractiveness components” of the

Theory of Planned Behavior: attitude toward the act and social norms. From Theory of Planned Behavior,

attitude toward the act refers to the degree to which a person has a favorable or unfavorable evaluation or

appraisal of the behavior in question. Social norms, on the other hand, refer to the perceived social pressure to

perform or not to perform the behavior. These are tied to our perceptions of what important people in our lives

would think about our launching a venture. The theory of planned behavior, in its intent to explain human

Perceived

Desirability

(Social norms,

Attitude)

Perceived

Feasibility (Self-

efficacy)

Credibility Potential Intentions

Propensity

to Act Precipitating

Event

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behavior deals also with the antecedents of attitudes toward the behavior and subjective norms. The theory of

planned behavior postulates that behavior is a function of beliefs relevant to the behavior. It is these salient

beliefs that are considered to be the prevailing determinants of a person‟s attitudes, intentions and behavior.

Behavioral beliefs are assumed to influence attitudes toward the behavior. Each belief links the behavior to a

certain outcome, which is already valued positively or negatively. Therefore, people automatically acquire an

attitude toward the behavior. In this way, people form favorable attitudes toward behaviors believed to have

desirable consequences and negative attitudes toward behaviors associated with undesirable consequences . In

the case of subjective norms, normative beliefs constitute their underlying determinants. Normative beliefs are

concerned with the likelihood that important referent individuals or groups approve or disapprove of performing

a given behavior.

On the other hand, Shapero[5] examines the concept of desirability using data on the family, peer groups, ethnic

groups, educational and professional contexts of potential entrepreneurs. In the case of the family, he states that

particularly the father or mother plays the most powerful role in establishing the desirability and credibility of

the entrepreneurial action for an individual. In the same way, the larger the number and variety of entrepreneurs

in a particular culture, the greater the probability that the individuals in that culture will form companies[6].

2.2 Perceived Venture Feasibility

As indicated above, in Krueger and Brazeal‟s model, perceived feasibility in Shapero‟s terminology,

corresponds to perceived behavioral control in the theory of planned behavior.

Perceived behavioral control plays an important part in the Theory of Planned Behavior. According to this

theory, the resources and opportunities available to a person must to some extent dictate the likelihood of

behavioral achievement. However, of greater psychological interest than the actual control is the perception of

behavioral control and its impact on intentions and actions. Perceived behavioral control is defined in the

Theory of Planned Behavior as the people‟s perception of the ease or difficulty of performing the behavior of

interest. The antecedents of perceived behavioral control are the control beliefs. These beliefs deal with the

presence or absence of requisite resources and opportunities. These control beliefs may be based in part on past

experience with the behavior, but they will usually also be influenced by second hand information about the

behavior, by the experiences of acquaintances and friends, and by other factors that increase or reduce the

perceived difficulty of performing the behavior in question.

Related to this construct, Shapero emphasizes the perception of the availability of financial support, although he

mentions also the perception of the availability of other supports as advice, consultation and education that make

the act of venture creation feasible to the potential entrepreneur .

According to the Theory of Planned Behavior, the relative importance of attitude, subjective norm and perceived

behavioral control in the prediction of intention is expected to vary across behaviors and situations . In the same

way, Shapero states that in the new venture creation process, no single variable or factor can account for the

outcome of the process. A number of outcomes are necessary but no one is sufficient. However, Krueger

presents evidence that perceived credibility, perceived desirability and propensity to act explain well “over half”

of the variance of the intentions toward entrepreneurship, with feasibility perceptions explaining the most[7].

Therefore Krueger and Brazeal state as their most important conclusion the primacy of perceived feasibility and

the need to research what factors contribute the most to perceptions of feasibility.

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III. PROBLEM STATEMENT AND RESEARCH OBJECTIVES

It is said that institutions are the rules of the game in a society or, more formally, are the humanly devised

constraints that shape human interaction [8]. Therefore, the institutional context affects the performance of

economies, particularly through the influence over the entrepreneur‟s behavior, and therefore should be explored

and analyzed closely. The Institutional Economic Theory serves to analyze, in a holistic way, the contextual

factors as determinants of entrepreneurship. It has been stated that this theory currently supplies the most

consistent and appropriate conceptual framework to probe the influence of the environmental factors on

entrepreneurship in a region or country.

3.1 Research Questions

The following questions were formulated for this study

Whether students consider desirable to start a new firm?

Whether students have a positive or negative perception of new venture feasibility?

Whether students have a serious intention to create their own firm?

Which is the student‟s image of the entrepreneur? How do they evaluate the entrepreneur‟s social and

economic role in society?

How do students rank the prestige of the entrepreneur compared to other professions?

Does there exist a relationship between gender and the variables of desirability, feasibility and intention to

create a new firm?

Does there exist a relationship between entrepreneurs among relatives and the variables of desirability,

feasibility and intention to create a new firm?

Does there exist a relationship between Course of Study and the variables of desirability, feasibility and

intention to create a new firm?

3.2 Research hypotheses

The hypotheses tested in this paper respond to the demographic variables extensively studied in the literature

crossed with the principal aspects of Krueger and Brazeal‟s model. The variables of gender and entrepreneurs

among relatives and course of study were crossed with desirability, feasibility and intention to create a new firm

to test hypotheses.

The Main Variables are

• The variable gender

• The variable entrepreneurs among relatives

• The variable Course of Study

3.2.1 The variable gender

Several studies have found that males have a higher preference for entrepreneurship behavior than females

[9][10]. Studies found that males have a significantly higher preference for self-employment than females[11].

The authors came to conclusion that gender influence self employment intentions indirectly through their effect

on attitude, subjective norm, and perceived behavioral control. Taking a cue from previous research following

three hypotheses was developed in this research concerning the variable gender.

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Hypotheses:

H1: There is a relationship between the student‟s gender and the perception of new venture desirability

H2: There is a relationship between the student‟s gender and the perception of new venture feasibility

H3: There is a relationship between the student‟s gender and the serious intention to create a new firm

The variable entrepreneurs among relatives

Previous studies on family background evidences a positive relationship between the presence of role models in

the family and the emergence of entrepreneurs. Collins, Moore and Unwalla[12]were the first authors to verify

through an empirical research that the influences over a new venture idea go back to the childhood and the

family circumstances of the entrepreneur. Among more recent works treating this theme the following can be

mentioned: Brockhaus and Horwitz [13], Scherer et al.[14] Matthews and Moser[15] . Advocates of

demographic models have suggested and found empirical support for the hypothesis that family background is

related to entrepreneurial intentions .

Kolvereid, in its application of the Theory of Planned Behavior to predict employment status choice, also

studied the role of family background. Taking into consideration previous empirical works presented, the

following three hypotheses were developed in this research concerning the variable entrepreneurs among

relatives.

Hypotheses:

H4: There is a relationship between entrepreneurs among relatives and the perception of new venture

desirability

H5: There is a relationship between entrepreneurs among relatives and the perception of new venture feasibility

H6: There is a relationship between entrepreneurs among relatives and the serious intention to create a new

firm.

The variable course of study

One may consider that students in different degree programmes have different perceptions of entrepreneurship.

Some researchers have studied the perception and attitudes towards entrepreneurship based on course of study

Michael L. Harris et al.[16] John Luiz et al. [17]. Therefore the study is also an attempt to find if there is any

difference between MBA and OTHER Students

Hypotheses:

H7: There is a relationship between the Course of Study and the perception of new venture desirability

H8: There is a relationship between the student‟s Course of Study and the perception of new venture feasibility

H9: There is a relationship between the student‟s Course of Study r and the serious intention to create a new

firm

IV. METHODOLOGY

4.1 Participants and Instrumentation

The samples in this study were UG and PG students studying in Chittoor district. The physical questionnaires

were administered to students in their lectures. A total of 193 students completed the survey. After removing the

incomplete responses the final sample of 176 were taken for analysis. The questionnaire used in the study was

based on a survey carried out by Jose M Veciana et. al (2005). There were questions consisting of Demographic

factor perception towards new venture creation intentions and Entrepreneurs image.

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4.2 Data Analysis Procedures

The data analysis for this study conducted through MS Excel and „SPSS‟ software. Statistical tools like

independent sample t test and Chi Square test were used for analysis purpose.

V. RESULTS AND DISCUSSION

5.1 Profiles of Respondents

The demographic profile of participant‟s according to gender, age, and course of study is presented in Table 1.

Table 1: Profiles of Respondents

Variables Frequency(n) Percentage (%)

Gender

Female 70 39.8

Male 106 60.2

Age

19 18 10.2

20 20 11.4

21 36 20.5

22 44 25.0

23 36 20.5

24 8 4.5

25 6 3.4

26 2 1.1

27 2 1.1

32 4 2.3

Mean age = 21.99

Course

MBA 98 55.7

OTHER 78 44.3

From the above 176 respondents in this study 106(60.2 %) are male and 70(39.8%) are females. The mean age

of the respondents is 21.99 years. 98(55.7 %) are management students and remaining 78(44.3%) are from other

discipline.

5.2 New Venture desirability

Table 2 shows the results of the answer to the question: Do you consider desirable to create a new firm?

Table 2: New Venture Desirability

Frequency(n) Percentage (%)

Affirmative 110 62.5

Negative 66 37.5

110(62.5%) students answered affirmatively to this question and the remaining 66(37.5%) answered negatively.

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5.3 New Venture Feasibility

Table 3 shows the results of the answer to the question: Do you consider that it is easier or more difficult to

create a new firm at present than in the past decades?

Table 3: Perception of New Venture feasibility


Easier 52 29.5

More Difficult 110 62.5

NA 14 8.0

The majority of the students answered that it is more difficult to create a new firm at present than in the past

decades

5.4 Students Intention to Create A New Firm

Table shows the results of the answer to the question: Have you seriously thought about creating your own

business?

Table 4: Students intention to create a new firm


No never 32 18.2

No, but I plan to join a family business 14 8.0

Yes may be 92 52.3

Yes seriously 14 8.0

Yes I have the firm intentions to create my own business 24 13.6

The majority of the students 92(52.3%) have a vague intention to create a new firm. The percentage of students

who have never seriously thought of creating a new firm is 18.2

5.5 Entrepreneur's Image

Desirability to become an entrepreneur depends on the image of the entrepreneur. Therefore it is important to

know the image of the entrepreneurs in society. Table 5 and Table 6 represent the ranking of the entrepreneurs

prestige compared to other professionals and the valuation of the attributes related to the image of the

entrepreneurship.

Table 5: Ranking of the prestige of 14 professions

MBA Other

Profession N Mean N Mean t- value

Doctor 98 5.634532 78 6.307692 -2.68

Entrepreneur 98 5.632653 78 5.820513 -0.94561

Teacher 98 5.530612 78 6.076923 -2.31201

Executive of Large firm 98 5.408163 78 5.512821 -0.46972

Economist 98 5.122449 78 4.846154 1.293722

Journalist 98 4.877551 78 5.487179 -2.0175

Psychologist 98 4.857143 78 4.615385 1.008287

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Engineer 98 4.673469 78 5.205128 -2.52792

Sociologist 98 4.632653 78 3.846154 3.301293

Lawyer 98 4.510204 78 4.384615 0.535958

Physicist 98 4.469388 78 4.794872 -1.3788

Translator 98 4.469388 78 4.153846 1.280962

Chemist 98 4.326531 78 4.717949 -1.92224

Publicist 98 4.204082 78 4.230769 -0.11691

* Statistically significant difference at the 0.05 level of significance among MBA and Other students

The MBA student have ranked second to entreneur profession after the Doctor. On the other hand the

Students from other have ranked Doctor first and then Teacher the entrepreneur profession was given third

position.

Table 6:Image of the Entrepreneur

MBA OTHER

Image of Entrepreneur N Mean N Mean t- value

Entrepreneurs are dynamic persons 98 4.020408 78 3.897436 0.719

Entrepreneurs have good organizational skills 98 4 78 4.358974 -2.39377

Entrepreneurs have good financial and management skills 98 3.755102 78 4.153846 -2.47422

Entrepreneurs are very innovative 98 3.816327 78 4.282051 -3.03042

Entrepreneurs are professionally well prepared 98 3.632653 78 3.435897 1.282185

Entrepreneurs are able and willing to take risks 98 4.285714 78 4.230769 0.375453

Entrepreneurs have a good entrepreneurial vision 98 3.795918 78 3.820513 -0.15962

Entrepreneurs invest 98 3.489796 78 3.897436 -2.34857

Entrepreneurs create jobs 98 3.714286 78 4.051282 -1.86105

Entrepreneurs help the economic development of the country 98 3.938776 78 3.897436 0.241843

Entrepreneurs earn a lot of money 98 3.408163 78 3.74359 -2.00957

Entrepreneurs engage in a dialogue with the employees 98 3.020408 78 3.589744 -3.85503

Entrepreneurs are honest and moral 98 3.081633 78 3.128205 -0.29842

Entrepreneurs have a sense of social justice 98 3.367347 78 3.102564 1.765637

Statistically significant difference at 0.05 level of significance among MBA and OTHER Students.

The MBA students have ranked the attributes Entrepreneur are able and willing to take risks and Entrepreneurs

are dynamic persons in the first two positions. On the other hand the students from other discipline have ranked

the following attributes in the first two positions Entrepreneurs have good organizational skills and

Entrepreneurs are very innovative.

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5.6 Hypotheses Testing

H1: There is a relationship between the student‟s gender and the perception of new venture desirability

Table 7: Gender distribution and desirability Perception

MBA OTHER

Negative Affirmative Negative Affirmative

Female 18 14 24 14

Male 20 46 4 36

Total 38 60 28 50

Chi-Square Value=6.112* Chi-Square Value=23.930*

*Statistically significant at 0.05 level of significance.

Hypothesis 1 is confirmed for both MBA and Other discipline students. In the sample there seems to exist a

positive relationship between gender and the perception. The male percentage of student who answered

affirmatively is higher than the percentage of female.

H2: There is a relationship between the student‟s gender and the perception of new venture feasibility

Table 8: Gender distribution and feasibility Perception to create a new firm

MBA OTHER

Easier at present Difficult at present Easier at present Difficult at present

Female 4 28 14 24

Male 16 40 18 18

Total 20 68 32 42

Chi-Square Value=2.995 Chi-Square Value=1.304

Statistically not significant at 0.05 level of significance

The result revealed that there is no statistical evidence at the 0.05 level of significance to confirm the hypothesis

2.

H3: There is a relationship between the student‟s gender and the serious intention to create a new firm

Table 9: Gender distribution and intention to create a new firm

MBA No never No but I plan to

join a family

business

Yes may be Yes seriously Yes I have the

firm intention

Female 8 4 14 2 4

Male 10 4 32 6 14

Total 18 8 46 8 18

Chi-Square Value=3.439 Not Significant

OTHER

Female 6 6 26 0 0

Male 8 0 20 6 6

Total 14 6 46 6 6

Chi-Square Value=19.030 Significant

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For hypothesis 3 the result was mix f or MBA Students the result was found to be statistically not significant but

in case of the students from other discipline the result was found to be statistically significant.


desirability

Table 10 : “Entrepreneurs among relatives” and desirability Perception

MBA OTHER

Negative Affirmative Negative Affirmative

Entrepreneurs among

relatives 12 24 6 24

Non Entrepreneurs among

relatives 26 36 22 26

Total 38 60 28 50

Chi-Square Value=.710 Not

significant

Chi-Square Value=5.354* Significant at

0.05 level

Hypothesis 4 is confirmed only for students from other discipline. In case of MBA students the results shows

that there is no statistical evidence at the 0.05 level of significance to confirm hypothesis 4.


feasibility

Table 11 : “Entrepreneurs among relatives” and new venture feasibility

MBA OTHER

Easier at present Difficult at present Easier at present Difficult at present

Entrepreneurs

among relatives 12 18 12 18

Non Entrepreneurs

among relatives 8 50 20 24

Total 20 68 32 42

Chi-Square Value=7.733 Significant Chi-Square Value=.216 Not significant

Hypothesis 5 is confirmed for the sample of MBA students only. In the sample there seems to exist a positive

relationship between the Entrepreneurs among relative and the perception of new venture feasibility. In case of

students from other discipline there is no statistical evidence to confirm the hypothesis.

H6: There is a relationship between entrepreneurs among relatives and the serious intention to create a new

firm

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Table 12 : “Entrepreneurs among relatives” and intention to create new firm

MBA No

never

No but I plan to join a

family business

Yes

may be

Yes

seriously

Yes I have the firm

intention

Entrepreneurs among

relatives 8 8 10 0 10

Non Entrepreneurs

among relatives 10 0 36 8 8

Total 18 8 46 8 18


OTHER

Entrepreneurs among

relatives 6 0 18 0 6

Non Entrepreneurs

among relatives 8 6 28 6 0

Total 14 6 46 6 6


Hypothesis 6 is confirmed for both MBA and Students from other discipline. There seems to exist a positive

relationship between the variable entrepreneurs among relatives and the firm intention to create a new firm.

H7: There is a relationship between the Course of Study and the perception of new venture desirability

Table 13 : Course of study and desirability Perception

Course Negative Affirmative

MBA 38 60

OTHER 28 50

TOTAL 66 110

Chi-Square Value=.153 Not Significant


7.

H8: There is a relationship between the student‟s Course of Study and the perception of new venture feasibility

Table 14 : Course of study and Perception of new venture feasibility

Course Easier More Difficult

MBA 20 68

OTHER 32 42

TOTAL 52 110


Hypothesis 8 is confirmed. There seems to exist a relationship between the variable course of study and

perception of new venture feasibility.

H9: There is a relationship between the student‟s Course of Study r and the serious intention to create a new

firm

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Table 15 : Course of study and intention to create new firm

No

never

No but I plan to join a family

business

Yes may

be

Yes

seriously

Yes I have the firm

intention

MBA 18 8 46 8 18

OTHER 14 6 46 6 6

Total 32 14 92 14 24

Chi-Square Value=4.861 Not Significant


9.

VI. CONCLUSIONS

The main conclusion of the research are the following:

1. The survey reveals that the university students have a positive perception of new venture desirability. The

majority of the students 110(62.5%) answered that they consider desirable to create a new firm.

2. The questions regarding the perceptions of feasibility show that 62.5% of students consider that it is more

difficult to create a firm at present than in the past decades.

3. A high percentage of the students in sample has vaguely (52.39%) considered to create a new firm as a career

path, but only a small percentage has the firm intention (13.6%) do so.

4. There seems to exist a relationship between the student‟s gender and the perception of new venture

desirability.

5. There seems to exist a relationship between the variable entrepreneurs among relatives and feasibility

perception to create a new firm in the case of MBA students.

6. There seems to exist a relationship between the variable entrepreneurs among relatives and intention to create

a firm. Students with entrepreneurs in their families have thought more seriously to create a new venture.

7. There seems to exist a relationship between the variable course of study and perception of new venture

feasibility.

8. There exists a positive image of the entrepreneur among the students.

9. The prestige of the entrepreneurial activity as a profession compares relatively well with other professions. It

is interesting to note that the profession of entrepreneur was ranked third by students from other discipline and

second by MBA students.

REFERENCES

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and Sustainability,.Vol.3,No.1.

[2] National Knowledge commission of India(NKC 2008)

[3] Krueger, N. & Brazeal, D. (1994), Entrepreneurial potential and potential entrepreneurs.

Entrepreneurship Theory and Practice, 18(3): 91–104.

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[4] Ajzen, I. (1991), The theory of planned behavior. Organizational Behavior and Human Decision

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[5] Shapero, A. (1982), Social dimensions of entrepreneurship. In C. Kent et al. (Eds.), The encyclopedia of

entrepreneurship: 72–90. Englewood Cliffs, NJ: Prentice Hall.

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[8] North, D. (1990), Institutions, institutional change and economic performance. Cambridge University

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[9] Delmar, F. & Davidsson, P. (2000), Where do they come from? Prevalence and characteristics of nascent

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[11] Ajay Singh et.al(2014) Engineering Education and Entrepreneurial Attitudes Among Students:

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(Eds.),The art and science of entrepreneurship: 25–48. Cambridge, MA: Ballinger.

[14] Scherer, P. D., Adams, J., Carley, S. &Wiebe, F. (1989), Role model performance effects on development

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[15] Matthews, C. H. & Moser, S. B. (1995), Family background and gender: Implications for interest in small

firm ownership. Entrepreneurship and Regional Development, 7: 365–377.

[16] Michael L. Harris et. al.(2008), “Examining the entrepreneurial attitudes of US business students“

Education + Training Vol.50 No.7

[17] John Luiz et.al(2011) “ ENTREPRENEURSHIP IN AN EMERGING AND CULTURALLY DIVERSE

ECONOMY : A SOUTH AFRICAN SURVEY OF PERCEPTIONS “ SAJEMS NS14(2011) No 1

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