Table of Contents
Introduction
Entrepreneurship is a term we hear a lot in our lives, it is used to refer to the act of risking and gather financial capital so as to promote one’s own enterprise. In the last decade there is a steep rise in the number of entrepreneurs. These ventures play a key role in creating employment in the region they are deployed.
Entrepreneurship is a rising vertical and adds great value to the economy of the country. Apart from adding value to the economy they also promote innovation which helps in the progress of the society and makes life easier. Governments across the globe are taking measures to promote this fire of innovation amongst young minds and aid them in all possible manners. Given the value addition entrepreneurs and their enterprise brings it is important to study and be aware of the root cause and factors that leads individuals to traverse along the path of entrepreneurship. A number of researches have been carries out to identify the factors and the aim is to capitalize on those factors so as to motivate more and more individuals to start off their own ventures. The report combines the research work of few researches so as to identify the right factors and their impact.
Methodology
There are various methods that can be used to determine the factors by examining the determinants of Entrepreneurship Development, Entrepreneurship Education and Theory of Planned Behaviour (TPB) from the flow of existing literature [1]. Thorough studies of various research papers were done which predicted the factors and the amount of impact of each individual factor across different cultures, regions and demography so as to obtain a conclusion with high precision.
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Theory of Planned Behaviour (TPB) is a method of choice because we know that Intentions play a key role in development of any entrepreneur, a person with certain traits is not always attracted towards starting a venture but intentions proves to be a better driving force. Theory of Planned Behaviour (TPB) which is derived from TRA by Fishbein and Ajzen which is used to forecast and illuminate human behavior in a specific context; it would allow prediction of behaviors that were not under complete voluntary control[2]. The mere knowledge about intentions was inadequate to predict the factors thus such a method that involves systematic study of human behavior that’s planned and proceeded by intention was applied.
Personal Attraction to entrepreneurship (PA), Perceived behavioral control (PBC), Social Norms and Valuations (SNV) were the factors included in the Theory of Planned Behaviour (TPB) and apart from that certain hypothesis based on variables like gender, education and father’s occupation were used to carry out the study.
Result
The entrepreneurial intention model to be tested is presented in Figure 1[3]. The study shows that all the factors considered having an impact on entrepreneurial intention show positive correlation and thus can be attributed as factors influencing entrepreneurship.
External variables exert their direct influence not only on the antecedents of intention but on intention, too. For this reason, control variables were included as explaining Personal Attraction (PA), Perceived Behavioral Control (PBC), Social Norms and Valuations (SNV) and Entrepreneurial Intention (EI) [4].
Furthermore factors like Parent’s occupation and education is are categorical with education having a positive impact and Parent’s occupation having a negative impact on entrepreneurial intention. Thus use of correlation analysis helps to identify the validity and impact of each individual factor.
Critical Analysis of Result
The results obtained might show great correlation but are incomplete. The factors researches consider are limited to the internal environment under the control of the person but the researches lack to demonstrate the factors controlled by external environment like raw materials, avaibility of capital, legal factors, labor market and political factors which have an equivalent effect on the entrepreneur intentions.
Alternative Methodology
Theory of Planned Behaviour (TPB) is an apt method to perform the test but we can add more external factor to the entrepreneurial intention model mentioned in the critical analysis and thus form a conclusion which is based on both internal as well as external factors.
Apart from that we must use any other existing technique and compare the results of both the methods to draw a more accurate and reliable conclusion.
Bibliography
- https://www.researchgate.net/publication/318646038
- https://www.researchgate.net/publication/268813349
- https://doi.org/10.1111/apps.12073
