Entrepreneurial Career Intentions Among Malay Ethnic University Students in Malaysia

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    Entrepreneurial Career Intentions among Malay Ethnic

    University Students in Malaysia

    Dr.Nor Khasimah Aliman (Corresponding author)1

    & Dr.Hayati Abdul Jalal2

    1. Associate Professor, Faculty of Business & Management

    2. Senior Lecturer, Faculty of Business & Management

    Universiti Teknologi Mara (Perak), 32610 Seri Iskandar, Perak, Malaysia

    Accepted 17 October 2013

    Abstract

    This research explores the associations between demographic characteristics (i.e. gender and family background),

    personality traits of innovativeness, entrepreneurship knowledge, environment, and entrepreneurial career

    intentions among undergraduate university students in Malaysia. Written questionnaire were completed by 230

    students and exploratory factor analysis of the constructs created one new interpretable component for

    entrepreneurial factor (i.e. attitude towards entrepreneurship). The results indicate that more than 70 per cent of

    the respondents have favourable attitude towards entrepreneurship. The results also provide evidence that genderand family background, personality traits of innovativeness, entrepreneurial knowledge, environment and

    attitude towards entrepreneurship are important predictors for entrepreneurial career intentions. Attitude towards

    entrepreneurship was found to be the most important predictor to entrepreneurial career intentions, followed by

    innovativeness, entrepreneurial environment and knowledge. These findings will be a value addition in Malaysia

    scenario and are likely to help Malaysian government in evaluating the success implementation of

    entrepreneurship program among undergraduates.

    Keywords: Entrepreneurship, Innovativeness, Entrepreneurial Intentions, Demographics

    1. Introduction

    Graduate unemployment due to difficulties in securing jobs that correspond to academic background and

    expectation has consequently become a major object of intense both academic and manager evaluations. The

    imbalances ratio between labor market demand and the number of undergraduates applying for jobs further

    contribute to a substantial amount of unemployment rate (Ismail, 2011). Entrepreneurship is considered to be

    an engine for creating job opportunities, economic growth, and social adjustment through the creation of

    nonmonetary rewards of self-independence (Bianchi, 2012). A considerable agreement exists on the importance

    of promoting entrepreneurship to stimulate economic development and employability (Ahmed, Nawaz, Ahmad,

    Shaukat, Usman, Wasim-ul-Rehman & Ahmad, 2010; Turker & Selcuk, 2009; Luiz & Mariotti, 2008).

    Evidence from the literature also suggests that entrepreneurship and self-employment are the best solution in

    transforming the joblessness or unemployed graduates (Ahmed et al., 2010; Turker & Selcuk, 2009; Luiz &

    International Journal of Business & Management (IJBM) October 2013 VOL.1, No.8

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    Mariotti, 2008). Thus, one possible approach in this direction is to embrace entrepreneurship and encourage

    self-employment that may create job independence for satisfaction (Bianchi, 2012). The better understanding of

    the nature of business supported by the policy maker is among forces that may drive the joblessness among

    graduates successfully make the transition into business. Governmental efforts through the critical agenda

    program of entrepreneurship may initiate path for the undergraduates to choose entrepreneurship as a convincing

    career choice. Nevertheless, entrepreneurship requires consistent efforts in relation to individual personality traits,

    demographic characteristics, and entrepreneurship education (Ahmed et al., 2010; Car & Sequeira, 2007;

    Davidsson, 1995; Frank & Luthje, 2004; Linan et al., 2011; Pihie & Afsaneh, 2009; Shapero & Sokol, 1982). The

    literature also acknowledged the importance of innovativeness as the core personality traits of entrepreneurs

    (Davidsson, 1995; Drucker, 1985). The primary focus of this study is to enhance understanding on the underlying

    factors of entrepreneurial career intentions among undergraduates. In particular, this research explores

    determinants (i.e. demographic characteristics, personality traits of innovativeness, entrepreneurship knowledge

    and environment) contributing to the entrepreneurial career intentions among undergraduates in Malaysia. The

    main objective of this study is to investigate the relationship between demographic characteristics,

    innovativeness, entrepreneurial knowledge and environment on the entrepreneurial career intentions among

    university students.

    2. Literature review

    Entrepreneurship is said to be function of various factors e.g. personality traits, education, experience, social and

    economic conditions, law and order and many other issues. According to the Institutional Economic Theory, the

    contextual factors were determinants of entrepreneurship. Those factors included political and economic rules

    and contract, codes of conduct, attitudes, values, norms of behavior, and conventions (Veciana, Aponte & Urbano,

    2005). Luthje and Franke (2003) incorporated both personality traits and contextual factors as determinants of

    entrepreneurial intentions. The study by Turker, Onvural, Kursunluoglu and Pinar (2005) also considered the

    impacts of both internal factors (motivation and self-confidence) and external factors (perceived level of

    education, opportunities and support) on entrepreneurial propensity of university students. In short, there was a

    general agreement that attitudes towards the entrepreneur, entrepreneurial activity, and its social functions were

    determinant factors for university students to decide an entrepreneurial career (Erich, Malgorzata, Daniel, &

    Robert, 2009; Frank & Luthje, 2005; Segal, Borgia, & Schoenfeld, 2005)

    2.1 Entrepreneurial Intentions

    Entrepreneurial intent has proven to be a primary predictor of future entrepreneurial behavior (Krueger, Reilly, &

    Carsrund, 2000). This variable examines how much a respondent is interested to be an entrepreneur either in

    present scenario or may be some time later in future. Entrepreneurial intentions are an important first step in the

    entrepreneurship process. In social psychology, intention is considered as the most immediate and important

    antecedent of behavior (Abraham & Sheeram, 2003). Ajzen (1991) and Bagozzi and Yi (1989) both indicatedthat intention is a strong predictor of entrepreneurial activity. Linan, Carlos, and Jose (2008) concluded that

    entrepreneurial intentions as one of the strongest predictor for startup decisions.

    2.2 Demographic and Entrepreneurial Intentions

    According to Shapero and Sokol, (1982), exogenous influences including demographics, skills and society, traits,

    financial support, and culture affect the attitudes and also the intentions indirectly and behaviors to become

    entrepreneurs. Socio-demographic factors have an indirect influence on entrepreneurial intention (Kolvereid,

    1996). However, there is a lack of agreement on the variables that determine the individuals decision to start a

    venture. Therefore, there is a need to clarify which elements play the most influential role in shaping the personal

    decision to start a firm (Linan et al., 2011).

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    2.2.1 Gender differences and entrepreneurial intentions

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

    (Delmar & Davidsson, 2000; Matthews & Moser, 1995). Ghazali, Ghosh and Tay (1995) found gender

    differences in the self-employment rate among non-professional degree holders (science, computer science, arts,

    and business) but not for professional degree holders (engineering, medicine, law, accountancy). Kolvereid (1996)

    found that males have significantly higher preference for self-employment than females. Wang and Wong (2004)

    revealed that besides family business experience and educational level, gender was a significant factor in

    explaining entrepreneurial interest in Singapore. Pihie and Afsaneh (2009) found a significant difference between

    male and female students in Malaysia on entrepreneurial intention where the male students obtained higher mean

    score. Ahmed et al. (2010) however discovered that gender does not have significant affect on entrepreneurial

    intentions of students in Pakistan.

    2.2.2 Family background and entrepreneurial intentions

    Parents act as initial role models and the parents active in a family business influence the future entrepreneurial

    intentions through changing attitudes and beliefs (Shapero & Sokol, 1982, Krueger et al.,2000). Exposures to

    entrepreneurship both from the family side and personal have an impact on entrepreneurial intentions (Carr &

    Sequeira, 2007; Basu & Virick, 1993). Raijman (2001) pointed that self-employment experience was directly

    related with entrepreneurial intentions of students. Other researchers discovered that family characteristics have

    implication on emergence of new business, recognition of opportunity, start up decisions and resource

    mobilizations (Wang & Wong, 2004; Aldrich & Cliff, 2003; Ghazali et al., 1995; Scott & Twomey, 1988). The

    involvement of family members in business symbolized for entrepreneurship and can be in assistance for both

    financial and non-financial. These factors have direct influence on individuals entrepreneurial intentions.

    Further, Ahmed et al. (2010) revealed that prior business experience and family business experience are one of

    the important predictor of entrepreneurial intentions. In addition, Wang, Lu and Millington (2011) claimed that

    family business background will contribute to the formation of entrepreneurial intentions. Athanasios,

    Hadjimanolis, Panikkos, and Poutziouris (2011) claimed that there was a statiscally significant correlation

    between a family business background and the intention to start a new business.

    2.3 Entrepreneurial innovativeness and entrepreneurial intentions

    Personality via psychological traits shown to have impact on entrepreneurial intentions (Davidsson, 1995; Frank,

    Lueger & Korunka, 2007; Lu, Wang & Millington, 2010; Wang et al., 2011). Yosuf, Sandu and Jain (2007)

    revealed that there is a positive relationship between personality traits and entrepreneurship intentions. Drucker

    (1985) indicated that the innovation is the most basic role of entrepreneur. A few researchers claimed that

    innovativeness as one of the most important trait of entrepreneurs (e.g. Ang & Hong, 2000; Ahmed et al., 2010).

    Carland and Carland (1991) found that successful entrepreneurs are much more innovative than

    non-entrepreneurs. Sexton and Bowman-Upton (1986) claimed that students who opt entrepreneurship as theirmajor (specialization) appeared more innovative than students of business administration. Goldsmith and Kerr

    (1991) discovered that students who have gone through from the entrepreneurship courses proved to be much

    more innovative than the other students of business. The researchers who employed Kirtons (1996) scale also

    found entrepreneurship students were more innovative than general business management students (Goldsmith &

    Kerr, 1991). Ahmed et al. (2010) suggested that there was a strong relationship between students innovativeness

    and their intentions to become entrepreneur in future.

    2.4 Entrepreneurial knowledge and entrepreneurial intentions

    Dyer (1994) has suggested that entrepreneurship courses, or training in relation to establishment of new business,

    contributes towards starting a new business and gives confidence and courage to the students. Lack of

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    entrepreneurial educations leads to low level of entrepreneurial intentions of students (Franke & Luthje, 2004).

    Entrepreneurial education program are source of entrepreneurial attitude and overall intentions to become future

    entrepreneur (Souitaris, Zerbinati, & Al-Laham Andreas, 2007). Entrepreneurship education has been considered

    one of the key instruments to increase the entrepreneurial attitudes of both potential and nascent entrepreneurs

    (Linan et al., 2011).

    According to Ahmed et al. (2010), entrepreneurial subjects were not determinants of entrepreneurial intentions of

    students. However, the researchers found that study year was an important predictor of entrepreneurial intentions,

    suggesting that the higher the level of awareness and knowledge about the field and market, the higher students

    preferences to become entrepreneurship will be.

    2.5 Entrepreneurial environment and entrepreneurial intentions

    In previous research, personal and environment-based had been identified as determinants of entrepreneurial

    intent (Davidsson, 1995; Franke & Luthje, 2004; Segal, Borgia & Schoenfeld, 2005). Entrepreneurial

    environment covers both the university and outside university environment. Luiz and Mariotti (2008) grouped

    the environment into two: campus environment and country environment. Both environments contributed to

    positive entrepreneurial intentions. Turker and Selcuk (2009) on the other hand classified the environment into

    three: Educational support (university), relational support (family and friends) and structural support (private,

    public and non-government organizations). The research findings identified that all the three supports were

    related to entrepreneurial intentions. Erich, Malgorzata, Daniel and Robert (2009) recognized university

    environment as significant predictor of students entrepreneurial intentions in Austria. However, the researchers

    did not found significant impact of financial support for entrepreneurs or bureaucratic procedures related to

    opening a firm on entrepreneurial intentions.

    3. Methodology

    3.1 Theoretical FrameworkThis research is based on the Theory of Planned Behavior (Azjen, 2002; Fishbein & Ajzen, 1975). The theory

    explains that intents towards a specific behavior are subject to influence from different factors. For this study,

    both internal and external factors are considered as predictors of entrepreneurial career intentions.

    Figure 1: Conceptual Research Model

    Demographic

    characteristics

    Gender

    Famil Back round

    Entrepreneurial

    Entrepreneurial

    Entrepreneurial

    Entrepreneurial

    Career

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    3.2 Research Hypotheses

    H1: Demographic characteristics determine entrepreneurial career intentions.

    H1 (a): Gender influences entrepreneurial career intentions.

    H1(b): As compared to female, male students have higher intentions to be entrepreneurs.

    H1(c): Family background influences entrepreneurial career intentions.

    H1(d): Students with family background in business have higher intentions to be entrepreneurs.

    H2: Entrepreneurial innovativeness has an impact on entrepreneurial career intentions.

    H3: Entrepreneurial knowledge has an impact on entrepreneurial career intentions.

    H4: Entrepreneurial environment will determine entrepreneurial career intentions.

    3.3 Sample

    The targeted sample size for this study was 300 students. 350 survey questionnaires were distributed to the

    diploma and degree students from business and non-business background at a public university known as

    Universiti Teknologi MARA (UiTM) Perak. Purposive convenience sampling was employed to select the

    respondents. This sampling method was used to ensure that research respondents consist of male and female

    students who pursue their studies at both Diploma and Degree level in various programs offered by the

    university. This sample size is consistent with other research conducted in other countries such as Linan et al.

    (2011) that used 354 students in Spain, Ahmed et al.s research (2010) used 276 Pakistani business graduate

    students, Turker and Selcuks (2009) and Eileens (2008) research both utilizing 300 university students in

    Turkey, and 273 students in Ireland respectively.

    3.4 Instrument and measurement

    The survey questionnaire consists of three sections. Section 1 consist six (6) questions in relation to

    entrepreneurship. In Section 2, the survey instrument was based on scales constructed from previous studies.

    Likert five-point scales were used to measure the predictors and criterion variables. An entrepreneurial career

    intention (dependent variable) was measured using 11 items adapted from Pihie (2009), Linan and Chen (2009),

    and Linan et al. (2011). Entrepreneurial environment was measured using 9 items adapted from Luiz andMariotti (2008), entrepreneurial knowledge was measured using 10 items adapted from Linan et al. (2011), and

    entrepreneurial innovativeness was operationalized using 10 items adapted from Jackson (1994) Jackson

    Personality Inventory. In Section 3, four (4) questions on demographic variables were asked.

    3.5 Data Analysis and Hypotheses Testing

    Both descriptive and inferential statistics were used to analyze the completed data. Exploratory Factor Analysis

    with orthogonal varimax rotation was used to define the basic structure and to determine each dimension forming

    this structure separately as well as to increase the interpretability of factor rotation (Hair, Anderson, Tatham, &

    Black, 1998). KMO value and Barletts test of sphericity were used to examine the strength of relationship

    among factors. The reliability test using Cronbachs alpha was applied for each of emerged factor to determine

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    which items within the scale most reliably represented each construct. Hypotheses were tested using cross

    tabulation and regression analysis.

    4. Results

    4.1 Respondents Profile

    Based on the 230 sample of UiTM (Perak) students, the percentage of male and female respondents are 32.2

    and 67.8 per cent respectively. While majority of the respondents are below 20 years old (i.e. 52.6 per cent of

    total respondents), another 47.4 per cent are within the age range of 20 to 25 years old. 31.3 per cent of the

    sample is in Year 1, whilst those in Year 2 and Year 3 make up 52.6 per cent and 16.1 per cent of the total sample

    respectively. In term of study program, students are pursuing their studies in business administration,

    accountancy, computer science, statistics, office management, art and design, actuarial science, town planning,

    architecture, quantity survey, building, geometric science both at the Diploma and Degree levels. 42.1 per cent of

    them are science students and 57.9 per cent are social science students (see Appendix-Table 1).

    When Section 1 of the survey questionnaire is examined (see Appendix Table 2), 42.2 per cent of the students

    have attended entrepreneurial course. Majority (72.2 per cent) of the participants have a favorable attitude

    towards entrepreneurship. Unfortunately, 87 per cent of them have no financial support (i.e. money) to start the

    business. While 48.3 per cent of the total sample has business experience, respondents that have family business

    oriented background (i.e. parents involve in business) account for 27.4 per cent.

    4.2 Pilot test

    Results from the pilot testing with 20 respondents show that majority of the items has more than 3.50 mean score

    (see Appendix Table 3). As such, similar questionnaire were distributed to the targeted sample.

    4.3 Cross tabulation

    Cross-tabulation was run to examine whether there is a significant difference between demographic variables and

    entrepreneurial intentions. Table 4 of the cross-tabulation results (refer to Appendix) indicate that all variables

    have significant positive relationship with entrepreneurial intentions but the relationship is quite weak/low

    (contingency coefficient are less than 0.50).

    A comparison between male and female respondents on entrepreneurial intentions was also examined. A

    significant different between gender (=0.00) suggests that female students have higher intentions to be an

    entrepreneur. Thus, H1 (b) is rejected. The present finding however, was inconsistent with Pihie and Afsanehs

    (2009), and Wang and Wongs (2004) research, which were conducted in Malaysia and Singapore respectively.

    This may be due to the ethnic homogeneity effect as all respondents are Malay students. Furthermore, more than

    60 per cent of the respondents are female.

    A significant different between students who have parents involve in business and those who are not on the

    entrepreneurial intentions (=0.00) indicates that family-business oriented value do not influence the

    respondents career intentions. Students who brought up in the non-business oriented parents have higherintentions to become entrepreneurs. As such, Hypothesis H1(d) is rejected. However, previous research suggests

    this is not always the case (for example Wang and Wong (2004) Singapore, Drennan et al. (2005) Australia,

    Mariano et al. (2007), and Hadjimanolis, et al. (2011) Cyprus).In Malaysia, those who have parents involve in

    business usually may have more advantages to success in their lives. The findings of the present study however,

    may suggest that female students are very ambitious, venturing themselves into the business and become

    entrepreneurs for living despite no family (i.e. parents) business orientation values are nourished.

    4.4 Factor Analysis and Reliability

    Exploratory factor analysis had identified the Eigenvalue, KMO and Barletts Test score. The varimax rotation

    method was performed and the numbers of factors was determined based on the eigenvalue criterion ( > 1).

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    Barletts Test of Sphercity was statistically significant (5180.86, p = 0.00) and the Kaiser-Meyer-Olkin (KMO)

    value was 0.930. Factor loadings for all predictor items were shown in Appendix Table 5.

    Principal component analysis revealed the presence of seven factors with eigenvalues exceeding more than 1,

    explaining 61.08 per cent of the total variance, which exceeds the 60% threshold used in social sciences (Hair et

    al., 1995). Factor 1, Factor 2, Factor 4 and Factor 5 are predictor variables. Factor 1 clearly represents

    Entrepreneur Knowledge that comprises eight items, explaining 36.73 percent of the variance with eigenvalues

    of 14.70. Factor 2 contributes 6.40 percent of the total variance with eigenvalues of 2.56 is known as

    Entrepreneur Environment consisting of nine items. While Factor 4 is considered as Entrepreneur Innovativeness

    that comprises nine items, a newly emerged factor 5 consisting of four items, was renamed as Attitude towards

    Entreprenership. They both are explaining 3.92 and 2.69 percent of variance with eigenvalues of 1.57 and 1.15

    respectively. According to Autio et al. (1997), there is a positive impact of attitude toward entrepreneurship on

    entrepreneurial conviction. Krueger et al. (2000) and Erich et al. (2009) indicate that attitude toward

    entrepreneurship acts as a primary determinant of students willingness to be self-employed. Franke and Luthje

    (2004) suggest that the more students value the entrepreneurial career path, the stronger the interest to start a

    business will be. Factor 3 (criterion variable) represents Entrepreneurial Career Intentions consists seven items,

    explaining 5.92 percent variance with eigenvalues of 2.37. Factor 6 and 7 were dropped from subsequent

    analysis due to less than three items loaded in both factors and the alpha score is too low.

    The alpha values were calculated (see Table 5) to assess the internal consistency reliabilities of the scales. Alpha

    values for predictors and criterion variables are as follows: Factor 1- entrepreneurial knowledge (=0.803),

    Factor 2 entrepreneurial environment (=0.887), Factor 4entrepreneurial innovativeness (=0.766), Factor 5

    attitude towards entrepreneurship (= 0.774), and Factor 3 entrepreneurial career intentions ( = 0.883). All

    variables had above 0.70 Cronbachs alpha values. According to Sekaran and Bougie (2013), the closer

    Cronbachs alpha is to 1, the higher its internal consistency reliability. A reliability less than 0.60 is considered

    poor, those in the 0.7 range, is acceptable and over 0.80 is good.

    4.5 Regression Analysis and Discussion

    The hypotheses of the study were tested using hierarchical multiple regression analysis. Overall, the model was

    fit (F-change=99.97; F-sig=0.00). There was a strong relationship between demographics characteristics,

    entrepreneurial innovativeness, entrepreneurial knowledge, entrepreneurial environment, attitude towards

    entrepreneurship and entrepreneurial intentions (R=0.82). 66.6 per cent of the changes in entrepreneurial

    intentions were explained by the predictors (R2=0.666) refer Table 6.

    In Model 1, the demographic variables of gender and family background were regressed towards entrepreneurial

    career intentions. The results showed in Table 6 suggest that both gender and family background are significant

    predictors to entrepreneurial career intentions. Both gender (=0.269; t=2.955; =0.003) and family background

    (=0.262; t=2.748; =0.006) have positive significant relationship with entrepreneurial career intentions. Thisfinding is consistent with previous researches in this area (Ahmed et al., 2010; Carr & Sequeira, 2007; Wang &

    Wong, 2004; Aldrich & Cliff, 2003; Ghazali et al., 1995; Scott & Twomey, 1988). Thus, H1, H1 (a) and H1 (c)

    are all supported.

    In Model 2, other predictors (entrepreneurial innovativeness, entrepreneurial knowledge, entrepreneurial

    environment and attitude toward entrepreneurship) were entered into the model. The results showed that

    innovativeness, entrepreneurial knowledge, entrepreneurial environment and attitude toward entrepreneurship

    have significant influence on entrepreneurial career intentions. Attitude toward entrepreneurship (=0.346;

    t=7.087; =0.000) is identifiedas the most important predictor for entrepreneurial career intentions. This finding

    provides support to the Theory of Planned Behavior (Ajzen, 2002) and other researchers general agreement that

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    attitudes towards entrepreneurship is a determinant for university students to decide an entrepreneurial career

    (Veciana et al.,2005; Linan et al., 2011).

    Innovativeness (=0.462; t=6.584; = 0.00) is identified as the second mos t important predictor for

    entrepreneurial career intentions. This finding supports Ahmed et al.s (2010) research. The third significant

    determinant is entrepreneurial knowledge (=0.109; t=2.429; =0.016). It lends support to the research

    conducted by Linan et al. (2011), Souitaris et al. (2007), and Franke and Luthje (2004), however, it contradicts to

    Ahmed et al.s findings (2010). The fourth significant determinant is entrepreneurial environment (=0.125;

    t=2.404; =0.017).The result supports other researchers findings in this area such as Turker and Selcuk (2009)

    and Luiz and Mariotti (2008). In summary, these findings provide support to H2, H3, and H4, suggesting that

    all predictors have positive and significant relationship with entrepreneurial career intentions.

    5. Conclusion

    This study confirmed the importance of demographic variables (i.e. Gender and family background),

    entrepreneurial knowledge, environment, innovativeness, and individuals attitude towards entrepreneurship for

    entrepreneurial career intentions. The present evidence also suggests that financial support (i.e. money) for

    venturing into business is vital as majority of the respondents have favorable attitude towards entrepreneurship.

    Financial constraints may impede the increase of the business profits, but an increased in the value of being

    independence is highly regarded for job satisfaction (Bianchi, 2012). Thus, the university educators and

    administrators as well as policy makers should further develop students interest towards entrepreneurship,

    promoting successful entrepreneurial role models and conducting entrepreneurship educational programs for job

    creation and growth. The attainment of this objective is undeniable for the long run, provided that initiative to

    nurture positive attitude towards entrepreneurship among individuals, aligning them to the business-fit venture,

    as well as providing the necessary supports are well developed. This is because individuals, firms and supports

    are the three important balancing ingredients in creating remarkable entrepreneurs. Conducive entrepreneurial

    environment is also vital in creating business growth. All involved parties should critically think of removing

    bureaucratic procedures or regulatory constraints for business start-ups, willingly to offer more incentives (such

    as training, mentor-mentee approach, etc.) to the young entrepreneurs, and promoting social acceptance of less

    fortunate entrepreneurs. The government program of implementing incubator entrepreneurs should be supported

    and promoted to the young generations. Students should also be exposed to the real business environment for

    increasing their self-confidence level and further develops their risk taking attitude. Academic trips to the

    industries and well-structured industrial attachment are among the initiatives that should be planned for the

    students. Hence, university and industrial linkages provide important platforms for motivating and nourishing the

    creative and innovative values among students. For example, a contribution in relation to funding from the

    organization for students to present their innovative ideas in both local and internationals is highly regarded.

    Specifically, this research highlights the importance of knowledge, innovativeness, environment, and attitudetowards entrepreneurship for entrepreneurial career intentions. However, as with any research, issues came to

    light through the course of the study which imposed limitation. This related to the sample as only one ethnic of

    multiracial Malaysia in Perak state is selected (i.e. Malays ethnic of UiTM (Perak) undergraduate students).

    Future research can extend the present study in several directions. One possible direction would be to replicate

    the same questionnaire with other UiTM state campuses at the undergraduate level. One could also conduct the

    same study on undergraduate students in other public and private universities in Malaysia. In addition to that,

    future research may consider self-confidence as a moderating variable between predictors and intentions.

    Attitude towards entrepreneurship may also be considered as mediating variable between predictors and

    intentions.

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    APPENDIX

    Table 1: Respondents characteristics (n=230)

    Frequency % Frequency %

    GENDER

    Female

    Male

    156

    74

    67.8

    32.2

    PROGRAM

    Science and

    Technology

    Social Science

    97

    133

    42.1

    57.9

    AGE

    Below 20

    20-25

    121

    109

    52.6

    47.4

    YEAR OF STUDY

    Year 1

    Year 2

    Year 3

    72

    121

    37

    31.3

    52.6

    16.1

    230 100.0 230 100.0

    Table 2: Related Information on Entrepreneurship (n=230)

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    Frequency % Frequency %

    Entrepreneurial

    courses attended

    YesNo

    97133

    42.257.8

    Money to start business

    YesNo

    30200

    13.087.0

    Business

    experiences

    Yes

    No

    111

    119

    48.3

    51.7

    Favorable attitude

    towards entrepreneurship

    Yes

    No

    166

    64

    72.2

    27.8

    Entrepreneurial

    parents

    Yes

    No

    63

    167

    27.4

    72.6

    Table 3: Descriptive Statistics for Pilot Test (n =20)

    Min. Max. Mean Std. Deviation

    Entrepreneurial Intentions

    CI1 3.00 5.00 4.10 .718CI2 3.00 5.00 4.40 .598

    CI3 3.00 5.00 4.60 .598

    CI4 1.00 5.00 4.05 1.050

    CI5 1.00 5.00 3.70 1.128

    CI6 4.00 5.00 4.15 .366

    CI7 2.00 5.00 3.90 .718

    CI8 3.00 5.00 4.35 .670

    CI9 2.00 5.00 4.00 .858

    CI10 3.00 5.00 4.30 .656

    CI11 2.00 5.00 3.70 .864

    Innovativeness

    IN1 3.00 5.00 4.00 .458

    IN2 3.00 5.00 4.15 .489

    IN3 3.00 5.00 4.10 .640

    IN4 3.00 5.00 3.60 .680

    IN5 1.00 4.00 2.50 .945

    IN6 2.00 5.00 3.65 .670

    IN7 3.00 5.00 4.05 .394

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    IN8 2.00 5.00 3.80 .695

    IN9 3.00 5.00 4.00 .561

    IN10 3.00 5.00 3.80 .695

    Entrepreneurial Knowledge

    EK1 3.00 5.00 3.95

    .

    .686

    EK2 1.00 5.00 3.80 .833

    EK3 2.00 5.00 3.80 .833

    EK4 2.00 5.00 3.65 .745

    EK5 2.00 5.00 3.75 .910

    EK6 2.00 5.00 3.70 .732

    EK7 3.00 5.00 3.90 .640

    EK8 3.00 4.00 3.55 .510

    EK9 3.00 5.00 3.75 .550

    Entrepreneurial Environment

    EE1 3.00 5.00 4.05 .686

    EE2 3.00 5.00 4.15 .587

    EE3 2.00 5.00 3.75 .716

    EE4 2.00 5.00 4.25 .786

    EE5 4.00 5.00 4.40 .502

    EE6 2.00 5.00 4.20 .767

    EE7 3.00 5.00 4.10 .718

    EE8 3.00 5.00 4.00 .458

    EE9 3.00 5.00 4.30 .732

    EE10 2.00 5.00 3.85 .875

    Note : Likert scales 1-5 points was employed

    Table 4: Cross-tabulation (Demographic variables and intentions)

    Gender

    Total

    Female

    Male

    Intentions:

    Low 88

    24 112

    High 68

    50 118

    Pearson Chi-Square 11.55

    Sig. 0.00**

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    Contingency coefficient 0.219

    Family as entrepreneur

    Total

    YesNo

    Intentions:

    Low 21

    91 112

    High 42

    76 118

    Pearson Chi-Square 8.20

    Sig. 0.00**

    Contingency coefficient 0.185

    Table 5: Factor Analysis and Reliability Analysis of the variables (n=231)

    Factor Eigenvalues Factor

    Loading

    %

    Variance

    Explained

    Factor 1: Entrepreneur Knowledge ( = 0.803) 14.70 36.73EK2 I know how to develop an entrepreneurial project. 0.649

    EK3 I know the necessary practical details to start a business. 0.665

    EK4 I have some knowledge related to young entrepreneur

    training.

    0.681

    EK5 I have the ability to make networking and professional

    contacts.

    0.416

    EK6 I have some knowledge related to the financing aid to

    start a business.

    0.728

    EK7 I have some knowledge on associations related to

    entrepreneurship.

    0.710

    EK8 I have some knowledge related to the technical aid to

    start a business.

    0.757

    EK9 I have some knowledge on support organizations related

    to entrepreneurship.

    0.665

    Factor 2: Entrepreneur Environment ( = 0.887) 2.559 6.398

    EE1 My country government support entrepreneurs. 0.715

    EE2 Entrepreneurial examples are included in classes. 0.520

    EE3 A small amount of grant would encourage 0.457

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    entrepreneurship.

    EE4 There is many entrepreneurial opportunities in Malaysia. 0.708

    EE5 My university encouraged to pursue entrepreneurship

    ventures.

    0.763

    EE6 More business sector interaction would encourage

    entrepreneurship.

    0.610

    EE7 Having a mentor would help students to pursue

    entrepreneurship ventures.

    0.620

    EE8 Private sectors support for student entrepreneurs would

    result in more university based business start-up.

    0.488

    EE9 Ministry of Higher Education promotes entrepreneurship

    programs to university students.

    0.715

    Factor 3: Entrepreneur Career Intentions ( = 0.883) 2.368 5.920

    CI3 I want to be a boss to my own business. 0.636

    CI4 I will start my business in the next 5 years. 0.607

    CI6 Im determined to create a business in the future. 0.689

    CI7 I am prepared to do anything to be an entrepreneur. 0.612

    CI8 I have a strong intention to start a business someday. 0.621

    CI9 Ill make every effort to start and run my own business. 0.630

    IN10 I am willingly to take risk and start a new business

    venture.

    0.505

    Factor 4: Innovativeness ( = 0.766) 1.569 3.922

    IN1 I value new ideas. 0.661

    IN2 I like to improvise. 0.719

    IN3 I prefer challenging activities. 0.674

    IN4 I am a creative individual. 0.667

    IN5 I am a conservative thinker.(R) -0.495

    IN6 I am an inventive individual. 0.515

    IN7 I like to try new technology. 0.603

    IN8 I am able to produce original thought. 0.411

    IN9 I am motivated to develop new solutions to problems. 0.469

    Factor 5: Attitude towards entrepreneurship ( = 0.774) 1.147 2.868

    CI1 I will choose a career as an entrepreneur. 0.530

    CI2 I put effort to make more money. 0.497

    CI11 I have thought seriously to start my own business after

    completing my study.

    0.543

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    EE10 A programmed to defer student loan payments would

    encourage more students to pursue a business after graduation.

    0.650

    Factor 6 ( = 0.211) - deleted 1.086 2.715

    EK1 I have some knowledge about business opportunities. 0.648

    CI5 I will start my business in the next 10 years. 0.562

    Factor 7 - deleted 1.002 2.506

    CI10 I prefer to be an entrepreneur rather than be an employee

    in a company.

    0.431

    KMO 0.930

    Barletts Test 5180.86

    Sig. 0.00

    Total variance 61.08%

    Table 6: Result of hierarchical regression on entrepreneurial intentions

    Model 1 B t Sig.

    Gender

    Family background

    0.269

    0.262

    0.189

    0.176

    2.955

    2.748

    0.003**

    0.006**

    R

    R2

    F-change

    F-sig

    0.258

    0.067

    8.097

    0.00**

    Model 2 B t Sig.

    Gender

    Family background

    Innovativeness

    Entrepreneurial knowledge

    Entrepreneurial environment

    Attitude toward

    entrepreneurship

    0.008

    0.098

    0.462

    0.109

    0.125

    0.346

    0.005

    0.066

    0.339

    0.119

    0.125

    0.382

    0.136

    1.685

    6.584

    2.429

    2.404

    7.087

    0.892

    0.093

    0.000**

    0.016*

    0.017*

    0.000**

    R

    R2

    F-change

    0.816

    0.666

    99.97

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    F-sig0.00**

    Notes: Significant at 0.05 level (*p