ENVIRONMENTAL FACTORS THAT AFFECT ENTREPRENEURIAL

INTENTIONAMONG PRIVATE COLLEGES MANAGEMENT

STUDENTS IN BAHIR DAR CITY

A THESIS SUBMITTED TO YOM POSTGRADUATE COLLEGE IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION

By: Merkebu Tesema

Advisor: Koyachew Enkuahone(PhD)

August, 2023

Bahir Dar, Ethiopia

i
 STUDENT’S DECLARATION

I, Merkebu Tesema, confirmed that this study entitled “Environmental Factors That Affect
Entrepreneurial Intention among Private Colleges Management Students in Bahir Dar City.” is
submitted by me for the grant of the Degree of Masters of management at Yom Postgraduate College.
It is my work and has not offered for a degree in any other university, and that all sources of materials
used for the study have duly acknowledged.

Place: Bahir Dar signature

Date: Aug, 2023

ii
 Approved by the Board of Examiners

Name signature date

1. Advisor
…………………… ………………. ……………
2. Internal examiner
……………………. ……………….. …………...
3. External examiner
……………………. ……………….. …………...

iii
 CERTIFICATION

This is to certify that this study “Environmental Factors That Affect Entrepreneurial Intention
among Private Colleges Management Students in Bahir Dar City.” undertaken by Merkebu Tesema
the partial fulfillment of Masters of Management at Yom postgraduate College, is an original work
and not submitted earlier for any degree either at this College or any other University.

Research Advisor: Koyachew Enkuahone(PhD)

Signature Date

iv
 ACKNOWLEDGEMENT

First and for most, I am highly indebted to express my deepest and sincere gratitude to my
Koyachew Enkuahone(PhD) for allowing me to work on this thesis and for his valuable
advice, comments on time, insight and guidance starting from proposal development to the
completion of the thesis work.

I would also like to express my grateful thanks to my friends who support me for the
study by providing materials and unstoppable advice to accomplish this study.

i
 Table of contents

Contents page
Approved by the Board of Examiners..........................................................................................3

CERTIFICATION.........................................................................................................................4

ACKNOWLEDGEMENT..............................................................................................................i

Table of contents............................................................................................................................ii

CHAPTER ONE............................................................................................................................6

1. Introduction...............................................................................................................................6

1.1 Background of the Study........................................................................................................6

1.2 Statement of the Problem.......................................................................................................9

1.3.1 General Objective..........................................................................................................11

1.3.2 Specific Objective.........................................................................................................11

1.4. Research Question..............................................................................................................11

1.5 Hypothesis of the Study.......................................................................................................12

1.6 Significance of the Study.....................................................................................................12

CHAPTER TWO.........................................................................................................................13

2. Review of related Literature...................................................................................................13

2.1. Entrepreneurial Intention....................................................................................................14

2.2 Empirical Research on Entrepreneurial Intention................................................................17

2.4 Determinants of Entrepreneurial Intention..........................................................................20

2.4.1. Gender..........................................................................................................................20

2.4.2. Family Background......................................................................................................21

2.5. Environmental Factors and Entrepreneurial Intention........................................................22

2.5.1 Entrepreneurship Education..........................................................................................22

2.5.2 Social Norm...................................................................................................................23

ii
 2.5.3. Perceived Government Policy......................................................................................24

2.5.3. Perceived access to finance..........................................................................................25

2.6 Conceptual Framework........................................................................................................26

CHAPTER THREE.....................................................................................................................27

3. The Research Methodology....................................................................................................27

3.1. Research Approach.............................................................................................................27

3.2. Research Design..................................................................................................................27

3.3 Sampling design...................................................................................................................28

3.3.1 Sample technique...........................................................................................................28

3.4 Data collection procedure....................................................................................................29

3.6 Validity and Reliability of the instrument...........................................................................30

3.7 Data Analysis Procedure......................................................................................................30

CHAPTER FOUR.......................................................................................................................32

DATA PRESENTATION AND ANALYSIS.............................................................................32

4.1. Response Rate.................................................................................................................32

4.2. Demographic Profile.......................................................................................................32

Table 4.2 sex of respondents...................................................................................................32

Table 4.3: Descriptive Statistics.............................................................................................33

4.3. Results of Inferential Statistics........................................................................................35

4.3.1 Correlation................................................................................................................36

4.4.1.1. Multiple Regression Assumptions.......................................................................38

4.4.1.2. 4.4.1.1.1. Normality Test.....................................................................................38

Graph -4.1 histogram..............................................................................................................38

4.4.1.2.2. Multi-co linearity Test......................................................................................39

Table 4.5: The Multi co linearity test distribution result........................................................39

iii
 4.4.1.2.4. Linearity Assumptions......................................................................................40

4.4.1.3. Regression test......................................................................................................41

4.4.1.2.1. ANOVA of independent variables and dependent variable.............................42

Table 4.7ANOVA...................................................................................................................42

4.4.1.2.2. Coefficient of independent variables on dependent variable............................43

4.4.2. Hypothesis Testing...................................................................................................44

4.4.3. Discussion of findings..............................................................................................44

CHAPTER FIVE...........................................................................................................................1

SUMMARY, CONCLUSION AND RECOMMENDATIONS..................................................1

5.1. INTRODUCTION...........................................................................................................1

5.2. SUMMERY......................................................................................................................1

5.5 SUGGESTION FOR FURTHER RESEARCH...........................................................4

References.......................................................................................................................................5

Appendix......................................................................................................................................10

iv
 Abstract

This research report sought to establish an assessment of “Environmental Factors That Affect
Entrepreneurial Intention among Private Colleges Management Students in Bahir Dar City.”.
The researcher observed four independent variables such as Entrepreneurship education and
training, social norm, Perceived Government policy, perceived Access to finance. The researcher
looked at the statement of problem for the research which was ideally what drove his to carry
out the research, background of the study, study area description, statement of the problem,
objective of the study, research questions, research hypotheses, significance of the study, scope
of the study, operational definition of key terms, and organization of the study. The researcher
tries to discuss conceptual, theoretical and empirical reviews which are related to the research
objectives, questions, and hypotheses. Methodology of the study was also considered where the
researcher addressed issues on how he carried out the research. 80 respondents were selected by
simple random sampling methods from a total of 100 management students from 3 private
colleges in Bahir Dar City and a return rate of 100% of the questionnaires administered was
also realized. The study adopted quantitative research approach; and descriptive explanatory
research design was used. The researcher used questionnaires which were administered
randomly to the respondents. Data was analyzed using SPSS version 26, and the results
presented in table and narrations. The study found out that social norm factor is the forecaster
variable that donates the highest to variation of the dependent variable (Entrepreneurial
Intention).

Key Words: Entrepreneurship education and training, social norm, Perceived Government policy,
perceived Access to finance and Entrepreneurial Intention

5
 CHAPTER ONE

1. Introduction

1.1 Background of the Study

"Clients have access to a broader variety of information and suppliers in today's linked and
economically dynamic market. Customers are able to be more demanding thanks to this
exposure. That is, requesting better goods and services at a lower cost (Brett & Okumura,
1998; Yukl, 2001). Innovation were regarded as a strategic component of an organization's
competitiveness in the 1990s. Yet, the economic approach has highlighted the importance of
the innovation concept for economic progress (Zawislak & Marins, 2008). Hence, in order
to maintain their competitiveness, firms must deftly address these issues. In light of this,
researchers vowed that Colleges must adopt ongoing innovation if they are to stay relevant
and successful in today's market (Chow, 2001; Xerri & Brunetto, 2011).

The Latin verb "Innovates," which means to bring something new or alter something that
has already been established, is where the word "innovation" originated (Dictionary.com
Unabridged, 2014). Schumpeter (1934) were regarded as one of the first academics to notice
innovation while looking at previous literature. According to Schumpeter (1934), innovation
is the creation, application, and fusion of something new, like as goods, services, operational
procedures, and new markets. Since then, innovation were redefined by numerous
academics. Scholars typically view innovation in the 1950s–1960s as bringing about change
from a technical perspective.

For instance, Schmookler (1957) defined ‘technical change’ as an enterprise producing

goods or services or using a method or input process that is new. While Marquis (1969) seen
innovation as a changes in technology. Back in 1970, Tinnesand (1973) provided a
summary of innovation based by reviewing 188 publications. Tinnesand’s work reported
6
that 36 % of the publications defined innovation as the introduction of a new idea; 16 %
defining innovation as a new idea, meanwhile only 14 % of the work defining innovation as
the introduction of an invention; 14 % defining innovation as an idea different from existing
ideas; 11 % defining innovation as the introduction of an idea disrupting prevailing
behavior; and 9 % viewing innovation as being an invention.

The definition of innovation has grown since the 1980s, moving beyond just bringing about
technical improvements to including conceiving fresh concepts. For instance, Amabile
(1983) argued that the successful application of novel concepts in an organization qualifies
as innovation. Urabe (1988), who came before us, saw innovation as having a number of
stages. Urabe believes that innovation should encompass execution as well as the creation of
"new" ideas. According to Urabe (1988), "Innovation consists of the generation of a new
idea and its implementation into a new product, process, or service, leading to the dynamic
growth of the national economy, increase in employment, as well as the creation of pure
profit for the innovative business enterprise" (p. 03).

Along with the topic of what innovation is, there were also discussion of who is in charge of
it. Innovation, according to King and Anderson (2002), is the introduction of anything new
to an individual, group, company, industry, or larger society. Before innovation may take
place, King and Anderson (2002) emphasized that ideas are necessary. Ideas serve as the
foundation for innovation, which only emerged once the ideas were developed further.
Innovation can happen at different levels, such as individual, team, and organizational,
according to West and Farr (1990). They also emphasized how important it is for Students
to generate and implement new ideas if innovation is to be established within an
organization. This viewpoint is consistent with Simonton's (1984) assertion that innovation
results from a person's personal commitment and efforts. Similarly, Scott and Bruce (1994)
argued that in order for an organization to innovate, innovation at the person level must first
be fostered by the organization. In conclusion, innovation aims to create new goods,
procedures, or services that benefit the person, the group, and larger society. The innovation
at the employee level, which is typically seen as inventive work behavior, is discussed in the
section that follows.

7
There is no universal definition of entrepreneurship despite the efforts of classical and neo-
classical scholars. It depends on the person defining it and the angle from which it is
viewed. Researchers have examined entrepreneurship from a variety of perspectives,
including economics, sociology, psychology, management, and social perspectives. As a
result, entrepreneurship is a multifaceted term. Say (1767–1832) offers a fresh perspective
on the entrepreneurial task (Bula, 2012). According to him, an entrepreneur manages a
business and contributes to the manufacturing process. (Say, 2001). Several tasks may be
performed by an entrepreneur. Some academics distinguish among an entrepreneur's roles in
the provision of functional capital, creativity, resource allocation among alternative
applications, and decision-making. They refer to an entrepreneur by the following
definition, which includes all of the different roles. Entrepreneurs are experts at taking
charge of situations and exercising sound judgement when it comes to decisions that
influence the availability, form, and application of goods, resources, or institutions. 1989,
page 213 of Herbert and Link.

The popularity of entrepreneurs is currently on the rise. A growing number of educated

young people are being attracted to entrepreneurship and launching new businesses.
Realizing this, the various management schools have turned their attention to the idea of
entrepreneurship and the craft of starting new businesses. Munish Vora (2006) p. 1. The
contribution of entrepreneurship to economic progress goes beyond income generation. It
involves kicking off and implementing changes in how society and business are organised.
According to (Hisrch, 2002:21), the study of entrepreneurship is still relevant today not only
because it enables business owners to better meet their own needs, but also because the
economic viability of new ventures contributes to economic growth more so than job
creation or national income growth. This is because entrepreneurship acts as a link between
new ideas and the market, which fosters innovation. For locating business possibilities, there
are both formal and informal methods. The majority of entrepreneurs use informal sources
for their ideas, such as being attentive to the grievances and haphazard remarks of friends
and associations, even if formal methods are typically found within a more established
organization. As soon as an opportunity is found, the appraisal process starts. Understanding

8
the elements that provide an opportunity, such as competition or changes in governmental
regulations, is fundamental to the screening process. On this foundation, it is possible to
determine the size of the market and the corresponding time dimension. The idea must meet
the entrepreneur's personal abilities and objectives, and the entrepreneur must have a strong
desire to see the opportunity realized.

By generating new markets, new industries, new technologies, new jobs, and new advances
in actual productivity, entrepreneurship helps an economy grow. It follows that there aren't
many alternatives to entrepreneurship for promoting and sparking economic progress
(Aldrich and Wiedenmayer, 1993). The crucial conclusion from all of this that immediately
grabs your attention is how to encourage entrepreneurship and what the causes and elements
are that actually start the development process. This is a crucial field of global research on
innovation and entrepreneurship since it concentrates on the underlying factors that drive
people to start their own businesses. The importance of this study stems from its focus on
the factors that influence entrepreneur intention. It has shown the entrepreneurial intentions
of potential entrepreneurs and other business leaders, including Bahir Dar-based students
who intend to start their own businesses.

Therefore, a specific goal of this study is to determine how much gender, education and
training levels, perceived government policies, and perceived financial access influence
entrepreneurial intent.

1.2 Statement of the Problem

When compared to other nations, Ethiopian entrepreneurs are rather unique. Ethiopia wants
to foster a new generation of entrepreneurs, according to BBC news from 2015 According to
the BBC, Ethiopia has a strong history of entrepreneurship that dates back to the Aksumite
kingdom's heyday as an important trading center more than 2000 years ago. However
despite recent initiatives to revive that legacy, modern local business owners confront a
variety of difficulties.

9
Colleges in the twenty-first century place a huge emphasis on creativity and innovation in
all areas of business (Davidson, 1994). This is because in today's fiercely competitive
market, only innovative and distinctive ideas can guarantee distinct competences for
businesses and, as a result, long-term, sustainable success.

Countries are focusing on generating entrepreneurs in order to promote economic growth

and development while Colleges are aiming for organizational entrepreneurism in every
discipline (Naffziger et al,1994). An economy's growth and development depend heavily on
entrepreneurs, and a few things happen naturally as a result of entrepreneurship. They
include reducing poverty, improving the quality of life, social advancement, and
employment (Scott and Twomey, 1988). If we take into account the fact that developing
nations like Ethiopia, which is based on agriculture, always work to change their economic
focus from agriculture to business in order to provide more job possibilities, the enormous
significance of fostering entrepreneurship is even larger.

To strengthen the private education industry, Ethiopia has implemented a number of actions.
Yet, professional colleges, universities, or TVET do not consider entrepreneurship education
to be their main area of interest.

Courses in the fundamentals of entrepreneurship are required for students in a variety of

academic programs who intend to work for themselves. It is unclear, nevertheless, whether
students' desire for self-employment were motivated by contextual foundational conditions
or by demographic, environmental, social, and economical reasons.

Policymakers must be aware of the variables listed above that should be prioritized in order
to build an effective program (Autio et al 1997). Students' enthusiasm in starting their own
businesses currently appears to be waning after three years of participating in business and
entrepreneurship-based programs. A study concentrating on student demographics,
entrepreneurship education, social norms, governmental policy, and access to financing of
the entrepreneurial intention and the factors influencing their actions is therefore necessary.

10
The purpose of this study is to discover the environmental and demographic elements that
may have an impact on students' entrepreneurial intentions while also providing relevant
information about the entrepreneurial intent of college students.

1.3 Objective of the Study

1.3.1 General Objective
The study's main goal were to investigate the effect of Environmental factors
entrepreneurial intention of college management students in Bahir Dar city.

1.3.2 Specific Objective

The study has the following specific objectives

• To investigate the role of gender on entrepreneurial intention.

• To examine the effect of the entrepreneurship education and training on students’
entrepreneur intention.
• To examine the effect social norm of college students on entrepreneurship intention.
• To investigate the effect of perceived Government policy towards students’
entrepreneurial intention
• To investigate the effect of perceived access of finance on students’ entrepreneurial
intention.

1.4. Research Question

1. What specific change entrepreneurial intention when students taught

entrepreneurship education?
2. Do social norms have influence on the entrepreneurial intention of college
students in Bahir Dar?
3. What extent perceived access of finance affect the student of entrepreneur
intention?
4. What extent perceived access of finance affect the student of entrepreneur
intention?

11
1.5 Hypothesis of the Study

The research has the following hypotheses

H1: Entrepreneurship education and training have statistically positive significant effect on
students’ entrepreneurial intention.

H2: There is significant positive relationship exist between Social norm and entrepreneurial
intention of the college students.

H3: There is significant positive relationship exist between Perceived Government policy
and entrepreneurial intention of the college students.

H4: There is significant positive relationship exist between perceived Access to finance and
entrepreneurial intention of the college student.

1.6 Significance of the Study

The study's findings help theorists understand the aspects that influence entrepreneurial
intent, including demographics, entrepreneurship education, perceived government policy,
and perceived access to capital. In actuality, it will demonstrate the entrepreneurial intent of
future business owners. First, the conclusions of this article will highlight key points and
raise awareness among the relevant government agencies so that they can take action to
boost levels of entrepreneurial intention and enhance performance. In order to improve the
elements that led to entrepreneurial intention, it is also beneficial to raise awareness among
college academics regarding entrepreneurship education, training, and their duties in this
regard. In order to improve Students' performance at work and boost their efficiency for
achieving entrepreneurship objectives and goals, the study will offer information to
policymakers on how to respond to entrepreneurship elements by making their policies more
appealing and fit for workers' needs. The report also made some pertinent recommendations
for the entrepreneurial aspirations of both pupils. Last but not least, the researcher believes
that the paper will act as a foundation and offer its fair share of new information for
subsequent studies.

12
1.7. Scope of the Study

This study focuses on students' entrepreneurial intentions and the variables that affect them.
Students from Alkan Health, Technology and Business College, Blue Nile College, and
Blue mark College make up the study's population. By using a stratified random approach, a
sample of Management undergraduate final year students from each college were collected.

CHAPTER TWO
2. Review of related Literature

13
2.1. Entrepreneurial Intention

The best creation of the All-Powerful, humans outperform other creatures in a number of
crucial ways. They can think critically, analyze phenomena, and offer judgements and
opinions based on concisions and prudent thinking, which is undoubtedly one of their
strengths (Linan, 2004). An individual's specific predisposition to carry out an action or
series of activities is known as their intention. Conscious thought produces behavior that is
directed (Park 2004).

According to a large body of prior research on entrepreneurial ambition, three elements

predominate entrepreneurial intention: One is his or her personality traits, which include
self-efficacy, confidence, autonomy, locus of control, propensity for taking risks, and
professional attraction. The second is his or her demographic profile, which includes age,
sex, prior experience, and influence of role models, education, and environment (Warneryd,
1988).

The notion of planned behaviors, which is an expansion of reasoned action, serves as a

representation of the cognitive theory of self-regulation (Ajzen, 1991). (Ajzen 1988;
Fisbeing and Ajzen, 1975). According to this idea, a person's behavioral intention to engage
in a certain activity is the component that determines behavior. Thus, intention as a
motivating factor, determines the level of involvement and effort of performing a giving act.
The intensity of behavioral intention determines the probability of the emergence of certain
volitional behavior (Ajzen, 1991).

Three conceptually distinct determinants of intention are hypothesized by the theory of

planned behavior. They are the mindset and conduct (the degree to which a person has a
favorable or unfavorable evaluation or appraisal of the behavior in question). Subjective
norm (felt social pressure to engage in the action or refrain from engaging in it) and
perceived behavioral control (perceived ease or difficulty of engaging in the conduct)
(Ajzen, 1991). In addition to prior experience with the conduct, the experiences of
acquaintances and friends are also considered as a factor to enhance or lessen the perceived
difficulty of completing the behavior in question, which indirectly impacts intention.

14
Knowing the factors that determine entrepreneurial intention can help entrepreneurial
training find the best way to shape the intention and increase the likelihood of the
consequent behavior leading to the creation of new ventures. Consultants, designers, and
policy makers can gain a clear understanding of how intentions are formed and how home
new venture founders' beliefs, perceptions, and motives impact the intent to high
productivity (Wenjun Wang et al, 2011).

Many Western nations have experienced the same thing since the 1970s: Big, established
businesses can no longer generate net gains in employment. This has led to either
permanently high unemployment rates or an increase in the relative importance of small and
new businesses in creating new jobs (Aiginger & Tichy, 1991; Davidson, 1995a; 1995b;
Davidson, Lind Mark & Olofsson, 1995,). This is the context for the current intense political
interest in the small business sector and for the general belief that startups and small
businesses would help to address issues with unemployment and economic growth.

An increase in scholarly interest in entrepreneurship, which is defined as the founding of

new independent businesses, has coincided with this turn of events. (1988, Gartner).
Although the research were not closely related to recent advancements in psychology, the
early empirical studies were particularly interested in the psychological traits of business
founders. A trait-based approach were frequently used, and countless lists of entrepreneurial
characteristics were proposed (Davidson, 1992; Gartner, 1989; Low & Macmillan, 1988). It
were successfully argued for me that personal background attributes rather than
psychological traits have a more dependable impact on a person's desire to start their own
business (Reynolds, 1991; Stanworth et al, 1989).

The characteristic approach's patchy success has prompted a move towards understanding
creativity in its social context. One way to achieve this is to conduct the analysis at a more
aggregate level and search for regional or national level variables that can explain variations
in the pace of new business creation (Aldrich & Wieden Mayer, 1993). Successful, all-
encompassing alliances were formed as a result of this method (Davidson, Lind Marke,
Olofsson, 1994; Reynolds, Storey & Westhread, 1994). It is still necessary to have a
disaggregate level understanding of the processes that result in the formation of new

15
enterprises. Thus, researchers have attempted to create integrated explanatory models that
account for domain-specific attitudes, personal backgrounds, and situational variables in
addition to the basic psychological traits of (prospective) entrepreneurs (Bird, 1993; Shapero
& Sokol, 1982; Shaver & Scott, 1991).\

Give the decision to found a firm can be regarded as reasoned action or planned behavior,
which seems reasonable the relationship between intention and actual behavior should be
fairly strong (Ajzen 1991; Sheppard, Hartwick & Warshaw, 1988).

In Ajzen’s theory of planned behavior, intention is a product of interaction among attitudes

towards specific behavior, subjective norms, and perceived control. Attitudes toward
behavior determine how favorably or unfavorably a person wills asses a specific behavioral.
In other words these attitudes may be reduced to a simple product of the power of conviction
concerning a given behavioral and the value of this conviction. Subjective norms in contrast
are the social pressure to become involved or to avoid being involved in a given behavior
perceived control determine the degree to which an individual subjectively perceives a given
situation as a controlled one ( thus, it is not actual control exercised by the person).

The sense of control is shaped by previous experiences and the anticipation of obstacles that
might be encountered in the future. Intestinally, perceived control may produce a dual
impact on behaviors a direct or an indirect one by influencing intentions.

The theory of planned behavior were widely used to account for various intensions, such as
parental intentions (Mynarska,2012), positive interventions (Kaczmarek prazkowski,2014)
entrepreneurial intentions (Van Geldern et al, 2008) and behavioral such as casting taking
contraceptive pills ( Ajzen,1988)

In the present article, we assumed based on Ajzen’s their of planned behavioral. The
business- related behavior ( e.g. establishing one’s own business) is dependent on start up
intention, seen as the degree of involvement and effort put into staring on own company.
Following Ajzen’s theory (1991) even further, we assumed that an array of factors underlies
intention and that this factor may have a direct influence on business intention and an
indirect influence on business related behavior. For instance, the relevant literature notes

16
that of these factors, the following play a significant role : the need for achievement, risk-
taking propensity, self-efficacy, valves, peoples exposure to role models, various
entrepreneurial experiences, perception of social networks (Chang, 2013) self-efficacy
entrepreneurial participation (Chug and Yang,2013), family entrepreneurial role models
(Holienka, Mrva and Marcin 2013), social norms, controlled behaviors, short-term risk
taking preference (Zhang, Wang and Own 2015), conviction (Raslikhan, Malekitar and
Jabeen 2013) goal setting, goal commitment, entrepreneur self-efficacy (Erikson,1999),
attitude toward startups, subjective norms and perceived behavioral control (Ajzen 1991).

The Adam start entrepreneurship challenge is a global competition which supports aspiring
entrepreneur with a startup idea. The initiative, launched during global entrepreneurship
week 2016, aims to foster the spirit of entrepreneurs “paying it forward’’ and supporting
each other to become a success. Adam comments: “I have learned so much from follow
entrepreneur and know the kind of help and direction I would have liked early on in my
business carrier”.

2.2 Empirical Research on Entrepreneurial Intention

Researchers have looked into students' intentions, interests, or propensities for starting their
own businesses in the literature (Ang and Hong, 2000; Autio et al, 1997; Begley et al., 1997;
Handerson and Robertson, 2000; Lee et al., 2005; Luthje and Franke, 2003; Parnell et al.,
1995; Scott and Twomey, 1988; Turker et al 2005; Veciana et al., 2005; Wang and Wong,
2004).

The methodologies used in these studies closely resemble the accepted mainstream of the
literature on entrepreneurship. Some of them concentrate on the respondents' personal
histories or personality traits. Ang and Hong (2000) compared the entrepreneurial spirits of
college students in Singapore and Hong Kong in their study. Instead of focusing on the
variations in the contextual factors, the study paid particular attention to the roles of some
personality traits (risk-taking propensity, tolerance for ambiguity, internal locus of control,
innovativeness, and independence) and motivational factors (love of money, desire for
security, and desire for status). Based on their own backgrounds, Wong and Wang (2004)
provided an explanation of the entrepreneurial ambition of Singaporean students.

17
According to the study, education level, family business experience, and gender all play a
major role in predicting entrepreneurial ambition. A useful insight into how young adults
view entrepreneurship were offered by Henderson and Robertson's research of
entrepreneurial intention from 2000. The study demonstrates that respondents' perceptions
of entrepreneurs were largely based on their inherent traits. Yet, the majority of them
believed that entrepreneurship should be fostered by outside forces.

The literature offers some insightful information regarding the significance of contextual
elements. Scott and Twomey (1988) conducted an early analysis of college students' goals,
and the study's findings revealed family influence and work experience as key factors.
According to the study, only an entrepreneur's social position can be used to predict whether
or not they will establish a business. In their cross-cultural study, Lee et al. (2005) looked
into the variations in college students' perspectives on business venture creation in four
different nations.

According to the study, each nation should offer a tailored entrepreneurship education to
encourage entrepreneurship while taking into account its own conditions (Lee et at., 2005).
In contrast to personal traits, which are extremely difficult to study, I wish to follow and
investigate the second strategy of scholars, which focuses on the impact of contextual
elements, such as family background and sociocultural factors, on entrepreneurial purpose.

2.3 Entrepreneurship Intention in Developing and Developing Countries

Research published in the Journal of Global Entrepreneurship Research on January 26th,

2016 demonstrates that intentions have a significant effect in the choice to launch a new
organization. But what elements affect intention?

There is broad consensus regarding the value of encouraging entrepreneurship in both

developed and developing nations. Entrepreneurship has traditionally been viewed in
sophisticated industrialized nations like the United States as a strategy to promote
technological advancement, encourage competition, and create jobs that will contribute to
economic growth and national success (Holmgren and from 2005). Many governments in
less developed nations view entrepreneurship as a means of promoting economic growth and
18
addressing significant social and economic problems. So how can nations encourage young
people to start their own businesses? Understanding the variety of variables connected to
entrepreneurial intention in various cultural situations is necessary for finding the solution.
In the United States, where there is a long history of entrepreneurship, studies on
entrepreneurial tendencies were conducted for many years. For example in economic and
management literature we find evidence of the connection between an individual’s intention-
personal environmental social and cultural.

Bosmaetal (2008) note that there exist consistent cross- cultural differences in people’s
willingness to become an entrepreneurs .The entrepreneurial culture enables and fosters
entrepreneurial activities with a positive social approach (Guney et al,2006). Hifsterd’s
culture dimensions may help to explain why some cultures are more conductive be
entrepreneurial activity than other. In individualistic cultures (e.g. United States, United
Kingdom, Australia), for example such social values as personal initiative, autonomy,
achievement, diversity and personal financial security are encouraged by the society. In
collectivistic cultures (e.g. Turkey. china) however, the interests of the group overrides the
personal needs. While group loyalty and group decision is rewarded individual decision
making and deviance in opinion or behavior is typically discouraged (Hofstede, 1980).

Individual who intend to pursue a business opportunity within the next three years are
defined by GEM as intentional entrepreneurs. Again, the level of intentional entrepreneurs
is SSA are high at an average of 53% which is consistent with their positive perceptions
about opportunities and capabilities the only exceptions are south Africa ( 12%) and
Ethiopia (24%). This means that societal attitude forwards entrepreneurship are farmable in
most SSA countries which is very positive for both entrepreneurship and SMME
development. (GEM, 2012).

Entrepreneurs in Ethiopia in sectors of agriculture, industry, commerce and service giving

sectors are quite few in number. The entrepreneurial development training that won priority
in the world are not given attention in Ethiopia. Resources for entrepreneurial development
training in the country were very limited.

19
Hindrance in the development of entrepreneurship in Ethiopia are there is some hindrance
for the development of entrepreneurship in our country. The major ones are; People have
wrong perception on job creativity, People are not determined to lives life free from
traditional way, Lack of perception of free and fair completion between people (Economic
focus- vol.8 Sep, 30, 2005.)

2.4 Determinants of Entrepreneurial Intention

According to previous studies, demographic factors such as gender and family

background can influence entrepreneurial intention of an individual’s (Yusop, 2002,
Crant, 1996; Matthew and Moser, 1996; Buttner and Rosen, 1989). Even though, there is no
consensus in their findings, according to most studies, the male have higher
entrepreneurial intention than its female counter parts (Dunn, 2004, Sandhu et.al (2011)
and Vaciana et.al (2005), and the individuals from family with business back ground
have stronger intention than the one whose family does not have business background.
Based on these many scholar literate to investigate the impact of Gender family
background, entrepreneurship education, perceived government policy, perceived access to
finance on the entrepreneurial intention.

2.4.1. Gender

There is much heterogeneity among male and female when it comes to entrepreneurship.
Women Students less hours and access to resources can account for some of these
heterogeneities between these two groups of human beings. Women have also much
more domestic demands competing for their time, thus having little time for venture
creation. Because of these, male have more entrepreneurial intentions and as such tend to
more likely and have more interest to start business leaving their female counter part less
likely to be founder of new businesses (Phan, Wong and Wang;2002, Mazzarol, Voley,
Doss and Thein, 1999)

According to Davidsson(1995), men universally are always on high rank to bear attitudes
and values favoring them for competitiveness and achievement than women efforts to
establish a business involves high degree of self- efficacy, thus women seem to have

20
lower perceptions in this aspect. Moreover, the perceived natural inequalities in gender
roles are other issues to be taken into consideration.

For example; for many years, women were mainly regard as responsible for children care
and kitchen duties. Thus, the traditional occupations for women did not attract much
entrepreneurship efforts. Further to that, the institutional approach where there were
patriarchal pressure in most society hindered women into entering into business. Brush
(1992) found that men are more inclined towards entrepreneurial business than women
with similar background. A large quantity of researches proved that women face more
difficulties in venturing process as compared to their male counterparts. Particularly,
Women entrepreneurs face more difficult in arranging a capital to start or to support their
business (Fay and Williams, 1993). The studies conducted in different nations discovered
that the objective success rate for women entrepreneurs is very less and they face slower
rate of growth, low profits, and low sales (Brush et al, 2006, Welter et al.2002). Several
studies reveal that gender stereotype influence the intentions of men and women to
involve and pursue entrepreneurial activities as their career (Gupta et al, 2008). This
study considers gender as being male or female.

2.4.2. Family Background

A person is most likely to be influenced by a particular group of individuals such

as family members, friends, peers, and others close ones in one’s life. For example, people
who growth up around a society or family that runs business or where family business is
practiced are likely to learn and model entrepreneurial tendency, perceiving it to be
feasible, more socially desirable and rewarding than formal employment in an established
organization. The desire to start or not to start a business may also be influenced by the
meaning that one attaches to business; which in turn is socially generated and sustained. As
for college students, this is very important as they may be at the stage to decide on their
career preferences (Hmileski and Corbet, 2006). Family background is important variable
that has been considered to contribute to the entrepreneurship intention. Generally,
individuals who have families with business tend to show higher attitude towards
entrepreneurship than those families that don’t have business undertakings. The study
undertaken by Davidson (1995), state that the choice of career for students is influenced by
21
family anticipation. Hisrich (2000) argues that the family involvement in business tends
to influence the students future career to be involved in business too. According to
Crant, et.al (1996), the entrepreneurs were often raised in families where the mother or
father were self employed. This study considers family background as an occupation of
the family. Family is understood as the mother and father of the students.

2.5. Environmental Factors and Entrepreneurial Intention

According to Arenuis and Minnit (2005), new venture creation and entrepreneurial
decision never take place in a vacuum, but they are affected by environment in which
they were took place (Chell and Baines, 2000). Individual will stimulate their
entrepreneurial potential if he/she perceives that there are environmental possibilities (Kirby,
2006). This means that the entrepreneurial intention of an individual can be affected
by perceived environmental factors. Accordingly, if the perceived environment is favorable
to development of entrepreneurship; entrepreneurial intention of individual will be
enhanced, and conversely, if the perceived environment is not favorable to the
development of entrepreneurship, the individual entrepreneurial intention will be
reduced. According to Thurik and Uhlaner(2002), there are several environmental factors
that can influence potential entrepreneurship.

2.5.1 Entrepreneurship Education

Education can affect students’ attitudes towards entrepreneurship and their entrepreneurial
self-efficacy. Lack of entrepreneurial education leads to low level of entrepreneurial
intention of students (Frankeluthje , 2002). According to the Dyer (1994), the
entrepreneurship courses and training regarding start of new business contributes towards
starting a new business and it gives confidence and courage to them. Education in
entrepreneurship can improve the perceived feasibility for entrepreneurial business through
increased knowledge base of students, confidence building and promoting self-efficacy
(Krueger and Brazeal ,1994). Entrepreneurship education has been lauded as being able
to create and increase awareness a well as promote self-employment as a career choice
among young people (Clayton 1989; Fleming 1996). Therefore, the role of entrepreneurship
education is mainly to build an entrepreneurial culture among young people that in
turn would improve their career choices towards entrepreneurship(Deakins, Glancy
22
et.al,2005).According to Redfort and Trigo (2007), Entrepreneurship education can have
three key roles in promoting an entrepreneurial society. It may act as a general advocate
for mindset and type of creativity employed in entrepreneurial endeavors and presenting
students with entrepreneurship as a possible career choice. Moreover, it has a skill
development role by assisting students in developing the technical and business

Skill set necessary to have a successful entrepreneurial career. Finally, it may have a
scientific development role by contributing for the advance the body of knowledge
associated with the entrepreneurial phenomenon. Wang and Wong (2004) in their study said
that the entrepreneurial dreams of many students are mainly hindered by inadequate
preparation focused on their personality characteristics, they also pointed out the fact
that the entrepreneurial dreams of many students are hindered by inadequate
preparation and their business knowledge is insufficient more importantly, they are not
prepared to take risk to realize their dreams. Therefore, academic institutions might play
critical roles in the encouragement of young people to choose an entrepreneurial career.
Entrepreneurship education influence student’s awareness of entrepreneurship as
alternative career path to paid employment and provide students with skills needed to
start and successfully run their own business. It is based on the assumption that
entrepreneurial intention and skills can be taught and learned (Gorman et.al 1997).
Entrepreneurship education can increase student’s awareness of the importance of
entrepreneurship and the contribution it can make to communities, society and the economy.
By learning about entrepreneurship, students realize the possibilities that entrepreneurship
can offer and gain insight into entrepreneurship as a career path (MJ.Scheepers.et.al.,
2009). This study considers entrepreneurship education as the course or courses given to the
students.

2.5.2 Social Norm

Ajzen(1991), social norm refers to the perceived social pressure from one’s peer and
significant others impacting ones intention to perform or not to perform a specific
behavior. Influences of other people that are close to a person can have influence on his or
her intention to act in a certain way. The theory of planned behavior terms this as
subjective norms the perceived social pressure to perform or not perform the behavior as I
23
said in the above. It can be individual family expectation to become entrepreneurs that
influences the desirability of the same individual in setting up an own business. The more
supportive the social norms are, the higher the intention (Wilson, Kickul and Marlino,
2007). The theory of planned behavior (Ajzen, 1991) suggests that the entrepreneurial
intention will be shaped by how students parent, family and friends react to their
entrepreneurship aspiration. It is expected that those students who face negative reactions
from people close to them may be dissuaded from pursuing entrepreneurship. Conversely,
students who receive positive reactions were more likely to pursue entrepreneurship. This
study consider social norm as the pressure exerted from friends and society at large to
the students to pursue certain employment careers and not others.

2.5.3. Perceived Government Policy

There are many barriers to launch a new business for individuals among which the
policies of the government, existing rules and procedures, social and economic condition
etc. If entrepreneurs are faced with a large number of probative rules, they will be
disappointed to create new businesses(Feugel,2001). According to (Kurlius, 2000), the
government has often been recognized as barriers to begging entrepreneurial activities. A
crucial part of entrepreneurship promotion by the government is to formulate business
policies in order to support entrepreneurship and the creation of new business through
various programs (Chell and Allman, 2003). Entrepreneurship flourishes in countries in
which government regulations support new ventures (Busenitz et.al, 2000). According to
Nguyen T.v.et.al (2008), a person who has a desire to create a new venture may never do
so because she/he is deterred by the environment which is not favorable or the belief that
starting a new venture is not feasible due to rules, regulations, institutions and lack of right
mechanism in place that hinder entrepreneurship intention process. Creating a business
environment conducive to entrepreneurship and enterprise creation requires a board range of
reinforcing and supporting policies. The structural policies that determine the overall
economic framework in which the business sector operates such as those affecting labor
markets, tax design, competition and financial market. State regulation can affects potential
entrepreneurship development (Jodyanne, 2009). According to Klapper (2004), it is
essential to create the right entrepreneurial environment that really promotes the

24
entrepreneurial activity. The government such as loans, rule and regulations would
definitely key conditions for success in nurturing and promoting entrepreneurship. This
study considers government policy as rule and regulation governing existing businesses.

2.5.3. Perceived access to finance

According to Kristiansens and Indart (2004) lack of access to capital and credit scheme, and
the constraints of financial systems are regarded by potential entrepreneur as main
hindrances to business innovation and success in developing economies. According to
Fleming (1996), study in Ireland, Lack of finance is an obstacle that affects preferred future
career choice of university students. Entrepreneurship is the less preferred future career
choice of university students because of finance constraints. According to Grilo and Thurik
(2005), financial constraints have a negative impact on the decision to become an
entrepreneur, and lack of financial support is an obstacle to start a new business which has
direct effect on the fact of being self-employed. According to Greene (2005), access to
finance is necessary to start firm. It is also perceived as one of the impediments for younger
people to start their own business. This study considers access to finance as startup capital
required for starting new business which might influence their career decision.

25
2.6 Conceptual Framework

It is crucial to understand the motivations behind why some people used to pursue
entrepreneurship while others do not. Several research, including (Bird, 1988; Davidsson;
1995; Ajzen; 1991), have suggested that having an entrepreneurial intention is essential for
pursuing entrepreneurship. Given the significant impact that entrepreneurial intention has on
the emergence of entrepreneurship, it is crucial to understand the variables that influence
entrepreneurial intention. Environmental and demographic factors are the primary factors
that might improve or diminish the intention of potential entrepreneurs, according to
Gnyawali and Fogel (1994). Hence, based on a survey of the literature in the field of
entrepreneurial intention and its determinants, I created the following frameworks to serve
as the foundation for this investigation.

Independent Variables Dependent Variables

1. Entrepreneurship
Education Entrepreneurial
Intention
2. Social Norm
3. Perceived
government policy
4. Perceived Accesses
to Finance

Figure: 1-Conceptual Frame work (source-Golo Dida, 2012)

26
 CHAPTER THREE

3. The Research Methodology

3.1. Research Approach
In order to assess the factors that influence college business students' intentions to become
entrepreneurs, the researcher will utilize a quantitative research method to gather data. In
quantitative research, phenomena are explained by gathering numerical data that are then
evaluated using approaches with a mathematical foundation (in particular statistics
techniques). With the use of quantitative research, the researcher can articulate themselves
in relation to the issue or idea under investigation and perhaps even come up with testable
research hypotheses. Charles (1995) claims that in quantitative research, the information is
expressed as numbers that can be quantified and summarized, mathematical analysis is the
standard method for looking at the numerical data, and statistical terminologies are used to
communicate the results.

In addition to being quantitatively evaluated using statistical methods, the data collected for
a research project were qualitatively analyzed using inferential analysis and descriptive
analysis. The data were collected using a simple random sample technique, a questionnaire,
descriptive statistics, and correlation analysis.

3.2. Research Design

The research was a positivist study, which is used to examine theories or hypotheses. The
independent variables for this study were gender, entrepreneurial education, societal norm,
perceived government policy, and perceived access to finance. Data were gathered from
these independent variables. Entrepreneurial intent is the dependent variable. To ascertain
the degree of their association and the coefficients of determination between variables, the
relationship between these variables were examined. The study is of the explanatory variety.
The study is intended to conduct a correlation survey. Testing of the differences between

27
groups and the interactions between variables would have taken place through hypothesis

testing.

3.3 Sampling design

3.3.1 Sample technique

The "Universe" or "Population," according to Kothari (2004), is made up of all items
throughout all scientific domains. A census inquiry is a thorough count of everything in the
'population. When all relevant elements are taken into account, it may be claimed that such
an examination leaves no room for chance and produces the most accurate results possible.
Yet in reality, this is not possible. Even the slightest bias in such an examination was come
more obvious as the number of observations increases. Hence, it is impossible to assess the
existence or level of bias absent a new survey or sample checks. Stratified sampling
approach is frequently used to create a representative sample when the population from
which the sample is to be obtained is not a homogeneous group. In stratified sampling, the
population is split up into several smaller groups that are all more homogeneous than the
overall population (the various subpopulations are referred to as "strata"). Thereafter, we
select objects from each stratum to create a sample. Kothari (2004). (2004). (2004). The
analytical unit of the study was the management studies of level 4 college students. Of of the
100 students enrolled at the three colleges, 30 students in management are represented by
Blue Nile, 40 by Alkan, and 30 by Blue Mark. A typical type of probability sampling
approach called a stratified random sample methodology was used by the researcher to
select students from each of the three universities. Sample size, 3.3.2

Students in their final year of undergraduate education at level 4 in management from three
colleges in Bahir Dar will make up the research's population. Especially Blue Nile, Alkan,
and Blue Mark colleges. As these colleges offer regular and year-round instruction to
students, I will choose them. It was easy for students to complete the questionnaire for this
study.
The researcher were employed the condensed formula Taro Yamane gave because the
population size under examination is small.

28
 𝑁

𝑛 =1+(𝑒)2

Where: n=Corrected sample

size N=Population

size

e=Margin of error (MoE), e=0.05 based on the research condition which is 95%
confidence level (Source theoretical aspects, formula Taro Yamane: books)

𝑛= =80

There were 100 pupils in the targeted population overall. Using the Yamane algorithm
mentioned above, 80 samples were chosen from this group. 80 respondents' replies from this
sample population were eligible for investigation. The final year students were chosen
because they are prepared to enter the workforce or are ready to choose a career path, and
level 4 management students were chosen because it will offer a variety of business courses,
including entrepreneurship, which may encourage students to pursue entrepreneurial goals.
An individual student is the study's unit of analysis.

3.4 Data collection procedure

 a survey were used to gather data. From the 2016 Global University Entrepreneurial
Spirit Students' Survey, the standard question was taken (GUESSS) I'd have to
employ stratified random sampling (lottery method from each three college).

3.5. Measurement of the variables

Both dependent and independent variables were examined in this investigation. These
variables have five independent factors, including gender, entrepreneurship education,
perceived government policy, and perceived access to capital, and one dependent variable,

29
which is entrepreneurial intention. These variables were measured using a five-point Likert
scale, with the lowest value being 1 and the highest value being 5. (Strongly agree).

Being male or female defines gender. The course(s) offered to students that are defined as
being taught or not being taught, social norm, societal attitude towards entrepreneurs,
government policy, rule regulation of the administration, and financial sensitivity were
indicated by perceived access to capital while starting a firm.

3.6 Validity and Reliability of the instrument

For both validity and reliability analysis, a pilot test was conducted as well as the adoption
of a standard instrument. Version 26 of the SPSS Alpha statistical tool were used for these
tests. A reliable dependability test has a cutoff value of greater than (0.7) for the Cronbach
Alpha value (Nunnally, 1987). All study variables' reliability test results are above this
threshold, which is (0.7).

Table 3.1, Reliability Test

Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance Corrected Item- Alpha if Item
Item Deleted if Item Deleted Total Correlation Deleted
ET 153.4875 348.582 .894 .953
SN 153.3875 326.823 .939 .945
PGP 153.8750 345.883 .814 .965
PATF 153.2500 318.468 .873 .957
EI 153.5500 315.643 .954 .942

3.7 Data Analysis Procedure

Variables were described using descriptive statistics like mean, standard deviation, and
frequencies. In order to determine whether there are any significant differences in students'
entrepreneurial intentions based on gender, entrepreneurship education, perceived government
policy, and perceived access to finance, the independent -t- test were used. Standard
regression analysis has been used to determine the specific contribution made by each
30
independent variable to the dependent variable while correlation analysis is used to examine
the link between some independent variables and dependent variables. Finally, a proper
conclusion, advice, and suggestion for further study have been made.

31
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS

4.1. Response Rate

The researcher issued by hand delivery 80questionnaires to College management students in Bahir
Dar city. All 80 questionnaires out of the 80 issued were returned representing 100% response rate.
50 percent return rate is adequate, 60% is good while 70% and above is very good for analysis
Mulusa (1990). In this study therefore, the response rate is 100% which is the excellent rating. The
100% was therefore deemed to be more than sufficient for data analysis.

Table 4.1: Response Rate

Description Frequency Percentage

Questionnaires returned 80 100

Questionnaires not 0 0
returned

Total 80 100

4.2. Demographic Profile

The study enquired information from the respondents on their sex catagory.

Table 4.2 sex of respondents

sex

32
 Cumulative
Frequency Percent Valid Percent Percent
Valid Male 48 60.0 60.0 60.0
FeMale 32 40.0 40.0 100.0
Total 80 100.0 100.0

Source: own survey data, 2023

As indicated in the above table, the sex of respondents, from all respondent of Students, 48(60%)
of respondents participated in this study were male Students and 32 (40%) of respondents were
female Students. This finding suggested that whereas there were more males than females Students
at Private colleges, both genders had becoming equal opportunities of Students at the Colleges. It
was therefore appreciated noting that the government policy on gender mainstreaming has been
implemented in the Education Sector.

4.3 Descriptive Statistics Measurement of Independent Variables

In this section, the collected data were entered and reported by using SPSS version 26. The mean

value of each Environmental Factors with respect to respondents’ category is analyzed and
presented.

Table 4.3: Descriptive Statistics

Descriptive Statistics
N Sum Mean Std. Deviation Variance
ET1 80 297 3.71 1.105 1.220
ET2 80 297 3.71 1.105 1.220
ET3 80 317 3.96 1.049 1.100
ET4 80 306 3.83 .978 .956
ET5 80 294 3.67 1.111 1.235
ET6 80 320 4.00 .994 .987
ET7 80 308 3.85 .982 .965
ET8 80 297 3.71 1.105 1.220
ET9 80 321 4.01 1.000 1.000
ET10 80 308 3.85 .982 .965
33
 3.83
SN1 80 297 3.71 1.105 1.220
SN2 80 321 4.01 1.000 1.000
SN3 80 294 3.67 1.111 1.235
SN4 80 320 4.00 .994 .987
SN5 80 308 3.85 .982 .965
SN6 80 297 3.71 1.105 1.220
SN7 80 321 4.01 1.000 1.000
SN8 80 308 3.85 .982 .965
SN9 80 294 3.67 1.111 1.235
SN10 80 320 4.00 .994 .987
3.85
PGP1 80 308 3.85 .982 .965
PGP2 80 297 3.71 1.105 1.220
PGP3 80 297 3.71 1.105 1.220
PGP4 80 297 3.71 1.105 1.220
PGP5 80 317 3.96 1.049 1.100
PGP6 80 306 3.83 .978 .956
PGP7 80 294 3.67 1.111 1.235
PGP8 80 320 4.00 .994 .987
PGP9 80 308 3.85 .982 .965
PGP10 80 297 3.71 1.105 1.220
3.8
PATF1 80 321 4.01 1.000 1.000
PATF2 80 308 3.85 .982 .965
PATF3 80 297 3.71 1.105 1.220
PATF4 80 321 4.01 1.000 1.000
PATF5 80 294 3.67 1.111 1.235
PATF6 80 320 4.00 .994 .987
PATF7 80 308 3.85 .982 .965
PATF8 80 297 3.71 1.105 1.220
PATF9 80 321 4.01 1.000 1.000
PATF10 80 308 3.85 .982 .965
3.87
EI1 80 294 3.67 1.111 1.235
EI2 80 320 4.00 .994 .987
EI3 80 308 3.85 .982 .965

34
EI4 80 297 3.71 1.105 1.220
EI5 80 321 4.01 1.000 1.000
EI6 80 308 3.85 .982 .965
EI7 80 294 3.67 1.111 1.235
EI8 80 320 4.00 .994 .987
EI9 80 308 3.85 .982 .965
EI10 80 297 3.71 1.105 1.220
3.83
Valid N (listwise) 80

Source: own survey data, 2023

Items are measured on a 5-point Likert scale, 1 = strongly disagree and 5 = strongly agree

This section presents the descriptive statistics of variables used in the study for the sampled
respondents. The above table demonstrates the mean, maximum and minimum values and standard
deviation of the variables.

According to Zaidaton&Bagheri (2009) the mean score below 3.39 was considered as low; the
mean score from 3.40 up to 3.79 was considered as moderate and mean score above 3.8 was
considers as high as illustrated by comparison bases of mean of score of five point Likert scale
instrument. As it can be observed from the Table 4.3 the mean score of most variables shows high
mean score which is greater than 3.39. This indicates the respondents were satisfied mostly to
environmental Factors Scheme.

Six items recorded the highest overall mean score of 4.01 and another from six items, WE7 rated
the lowest mean score 0f 3.67.
As a general rule, therefore, the data for all variable constructs does not need any transformation.

4.3. Results of Inferential Statistics

In this section, the results of inferential statistics are presented. For the purpose of assessing the
objectives of the study, Pearson’s Product Moment Correlation Coefficient and regression
35
 analyses were performed. With the help of these statistical techniques, conclusions are drawn with
regard to the sample and decisions have been made with related to the research hypothesis.

4.3.1 Correlation

Correlation determines whether and how strong pairs of variables are related. The correlation
analysis can lead to greater understanding of your data. To know whether there is a correlation
between the variables and what the level is of the linear relationship between the variables, the
Pearson R correlation coefficient was examined. This coefficient indicates the direction and the
strength of a linear relationship between two variables. The Pearson’s correlation coefficient (r)
can vary from -1 to +1. The larger the value indicates the stronger the relationship. A coefficient of
+1 indicates a perfect positive relationship and a coefficient of 1indicates a perfect negative
relationship. 0 indicates that there is no linear relationship between the variables (Field, 2009). The
values for interpretation according to statistics are as follows (Pallant, 2007; Cohen, 1988):

A. Rho = .10 to .29 or -.10 to -.29 (small effect)

B. Rho = .30 to .49 or -.30 to -.49 (medium effect)
C. Rho = .50 to 1.0 or -.50 to -1.0 (large effect)
To test the hypotheses the p-value was computed. The p-value measures the support (or lack
thereof) given by the sample for the null hypothesis. Accepting or rejecting the null hypothesis
depends on the p-value, whether it is smaller than or equal to the significance level. In this case the
level of significance is .05. Below here the following table of correlation values is presented.

Table 4.4: Inter- correlation among all variables understudy

Correlations
ET SN PGP PATF EI
ET Pearson Correlation 1 .824** .937** .765** .837**
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80

36
SN Pearson Correlation .824** 1 .743** .938** .967**
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80
** ** **
PGP Pearson Correlation .937 .743 1 .656 .797**
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80
** ** **
PATF Pearson Correlation .765 .938 .656 1 .920**
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80
EI Pearson Correlation .837** .967** .797** .920** 1
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

As seen in Table 4.4, Entrepreneurship education and training and effect on students’
entrepreneurial intention of the college students were significantly correlated in the positive
direction (r = .837, p < 0.05). In other words, when Students Entrepreneurship education and
training (become conducive) entrepreneurial intention will also increases.. Second, Social norm
has a positive statistically significant effect on entrepreneurial intention of the college students (r =
0.967, p < 0.05). This means that while Social norm increases Entrepreneurial intention also
increase. Thirdly, Perceived Government policy has a positive statistically significant effect on
Entrepreneurial intention (r = .797, p < 0.05). Fourthly, perceived Access to finance and
Entrepreneurial intention were also significantly correlated in the positive direction (r = .920, p <
0.05). Expectedly when Motivation increases Entrepreneurial intention will also increases. This
means that while perceived Access to finance increases Entrepreneurial intention also increase.
Among the determinant factors also observed significantly strong correlation.

4.4.1 Regressions Analysis

In the previous section the focus was on measurement of the relationships between the variables.
Here the research is taken a step further. In regression analysis we fit a model to our data and use it
to forecast the value of the dependent variable from the one or more independent variables. This
research uses multiple regression analysis (more than one predictor) to determine the value of the
dependent variable.
37
4.4.1.1. Multiple Regression Assumptions
4.4.1.2. 4.4.1.1.1. Normality Test
A very important assumption in regression analysis is also that the dependent variable should be
tested for normal distribution. Normality is used to describe a symmetrical, bell-shaped curve,
which has the greatest frequency of scores around in the middle combined with smaller
frequencies towards the extremes (Pallant, 2005). The dependent variable in this case is
Entrepreneurial intention. If the dependent variable is not normally distributed, there is little point
in performing regression analysis because a major assumption of the model is violated. Therefore
normality test computed for the dependent variable in this case in graph 1 the histogram shows a
normal distribution

Graph -4.1 histogram

38
Source; SPSS Output 2023

Normality test computed for the dependent variable in this case in graph 1 histogram shows nearly
a normal distribution.

4.4.1.2.2. Multi-co linearity Test

The presence of correlations between the predictors is termed co linearity (for a relationship
between two predictor variables) or multi -co linearity (for relationships between more than two
predictors). In severe cases (such as a perfect correlation between two or more predictors), multi-
co linearity can indicate that no unique least squares solution to a regression analysis can be
computed and the variance inflation factor is one known measure of multi-co linearity, although
numerous other measures are available (Belsley, Kuh, Welsch, 1980).For multiple regressions, the
researcher has checked the co linearity problem with the assumption of tolerance and VIF
statistics. It seems from these values that there is not an issue of multi-co linearity problem
between the predictor variables. Thus, the multi-co linearity result of this study as indicated in
table 4.5 below confirmed that there is no problem of multi-co linearity since the value indicates
between 1 and 10.

Table 4.5: The Multi co linearity test distribution result

Model Co linearity statistics

Tolerance VIF

ET 0.0815 9.267

SN 0.0911 9.968

PGP 0.1107 9.026

PATF 0.1121 8.919

Source: own survey data, 2023

4.4.1.2.3.Homoscedasticity test
39
Homoscedasticity errors are generally assumed to have an unfamiliar but finite variance that is
constant across all levels of the predictor variables. This assumption is also known as the
homogeneity of variance assumption. If the errors have a variance that is limited but not constant
across dissimilar levels of the predictors (i.e. Hetero scedasticity is present), ordinary least squares
estimates were unbiased and stable since the errors are independent, but will not be efficient
(Weisberg, 2005).As we have seen in graph2 below, it can be assured that the point is random
and to some extent evenly throughout the scattered diagram and no evidence of funnel-like the
shape of points on one side than the other is observed, so no heteroscedasticity in the data is
confirmed.

Graph -4.2: Scatter Plot of regression of standardized residual of Entrepreneurship education and
training, social norm, Perceived Government policy, perceived Access to finance and Students’
Entrepreneurial intention.

4.4.1.2.4. Linearity Assumptions

40
The model that shares the response Y to the predictors X 1, X2, X3... XN is assumed to be linear in
the regression parameters (Chatterjee and Hadi, 2012). This means that Standard multiple
regression can only precisely estimate the relationship between dependent and independent
variables if the relationships are linear in nature. As in the equation: Y= β0+ β1X1 + β2X2+ e.
This regression equation is still a linear regression equation because Y is modeled as a linear
function of the parameters. According to the information in graph 3 below indicated Normal P-P
Plots show that this assumption had been met for this study.

Graph-4.3 normal P-P plot

Source; SPSS Output 2023

As can be seen from the graph above, the relationship is normal and positive.

4.4.1.3. Regression test

41
 The regression analysis was used to measure the link between the independent and the dependent
variables. Regression test is used to recognize the ability of each individual independent variable to
predict the dependent variable (Entrepreneurial intention).

Regression between independent variables and dependent variable

Table 4.6 Model Summary

Model Summaryb
Change Statistics
Adjusted R Std. Error of the R Square Sig. F Durbin-
Model R R Square Square Estimate Change F Change df1 df2 Change Watson
a
1 .979 .959 .956 1.05541 .959 433.691 4 75 .000 1.406
a. Predictors: (Constant), PATF, PGP, SN, ET
b. Dependent Variable: EI

In order to analyze the relationship between Environmental factors and Entrepreneurial intention
conducted a multiple regression analysis and computed R squared as .959. This means determinant
factors which explains 95.9% of the variance on Entrepreneurial intention but 4.1% of the
variance (1-R2) cannot be explained by these four variables. In other words, the determinant
factors on entrepreneurial intention or explanation level which means R2 value have been
found .959. So, only 95.9% of the determinant factors (95.9% of the total variance) describes the
entrepreneurial intention.

4.4.1.2.1. ANOVA of independent variables and dependent variable

Table 4.7ANOVA

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 1932.345 4 483.086 433.691 .000b
Residual 83.542 75 1.114

42
 Total 2015.888 79
a. Dependent Variable: EI
b. Predictors: (Constant), PATF, PGP, SN, ET

In line with table 4.6 above, indicated that ANOVA of the results from the data gathered from the
respondents showed a strong positive significant regression for the reason that p=0.000 which
is <0.05. This m e a n t t h a t the independent variables (Entrepreneurship education and
training, social norm, Perceived Government policy and perceived Access to finance) have a
strong significant influence on the dependent variable (Entrepreneurial intention) in the study
area.

4.4.1.2.2. Coefficient of independent variables on dependent variable

Table 4.13 Coefficients

Coefficientsa
Unstandardized Standardized Collinearity
Coefficients Coefficients Correlations Statistics
Toleran
Model B Std. Error Beta t Sig. Zero-order Partial Part ce VIF
1 (Constant) 1.659 1.076 1.542 .127
ET .304 .096 .261 3.170 .002 .837 .344 .075 .082 9.267
SN .726 .082 .688 8.839 .000 .967 .714 .208 .091 9.968
PGP .410 .075 .386 5.461 .000 .797 .533 .128 .111 9.026
PATF .211 .067 .222 3.157 .002 .920 .343 .074 .112 8.919
a. Dependent Variable: EI

There are three significant factors in the coefficient test. As can be seen from the results, the Beta
value for ET is (Beta = .304, <0.05), SN, (Beta= .726, p<0.05) , PGP (Beta = .410, <0.05) and PATF
(Beta = .211, <0.05). However, from the above factors SN shows the highest Coefficient result
compare to other Entrepreneurial intention factors (Beta=.726, <0.05). Thus, SN factors prove to be

43
a dominant factor influencing the Entrepreneurial intention of Students at Private colleges: In the
Bahir Dar city.

4.4.2. Hypothesis Testing

The first hypothesis states that “H1 Entrepreneurship education and training have statistically
positive significant effect on students’ entrepreneurial intention” Beta coefficient. (Beta = .304,
<0.05), in significance level indicates a positive relationship. With this result, the existence of the
relationship between Entrepreneurship education and training and Entrepreneurial intention the
first hypothesis was accepted.

The second hypothesis is “H2 There is significant positive relationship exist between Social norm
and entrepreneurial intention of the college students.” Beta coefficient is (Beta= .726, p<0.05)
which means that there is a positive and significant association. Therefore, H2 was accepted.

The third hypothesis is “H3 There is significant positive relationship exist between Perceived
Government policy and entrepreneurial intention of the college students. ”. Beta coefficient (Beta
= .410, <0.05) in significance level, shows that a positive and significant association. With this
result, considered the existence of the relationship between Perceived Government policy and
Entrepreneurial intention, the hypothesis was accepted.

Lastly the fourth hypothesis is “H4 There is significant positive relationship exist between
perceived Access to finance and entrepreneurial intention of the college student and
entrepreneurial intention of the college students.” Beta coefficient (Beta = .211, <0.05)in
significance level, shows that a positive and significant association. With this result, considered the
existence of the relationship between perceived Access to finance and Entrepreneurial intention,
the hypothesis was Accepted.

4.4.3. Discussion of findings

44
In keeping with the results of research increasing the four determinant factors subsequently will
also increase Entrepreneurial intention.

According to the research results Environment factors has a significant positive relationship with
Entrepreneurial intention which confirms the previous studies conducted by Faloye, (2014)

However this study finding is consistent with the findings of Faloye, (2014) who examined
Entrepreneurship education and training, social norm, Perceived Government policy and perceived
Access to finance has positive relationship with Entrepreneurial intention, and Kashifa & Najib,
(2015) who also found significant positive relationship between Entrepreneurship education and
training, social norm, Perceived Government policy and perceived Access to finance with
Entrepreneurial intention.

4.5. Conclusion

Generally, in this chapter, the response rate is justified and all the collected data analyzed using
descriptive statistics including means and standard deviation and presented in summary form using
tables. Inferential data analysis was done by the using coefficient to determine the strength and the
direction of the relationship between’ Entrepreneurial intention and determinant factors
(Entrepreneurship education and training, social norm, Perceived Government policy and
perceived Access to finance). Multiple regressions assumption tests namely normality, multi-co
linearity, and linearity test were done so as to see the viability of the model to use in this research
and then multiple regressions were done to establish the relations between the three determinant
factors dimensions and Students’ Entrepreneurial intention. Finally, hypothesis testing was done
using p-value. The next chapter presents the summary, conclusion of the study and
recommendations.

45
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. INTRODUCTION

The major objective of this study was to investigate the effect of Environmental factors
entrepreneurial intention of college management students in Bahir Dar city. This chapter
summarized and discussed the main findings obtained from each research questions. It also dealt
with the conclusions that were derived from the analysis, as well as recommendations that can be
implemented or used for future research, for each of the main research objectives.

5.2. SUMMERY

The main objective of this study was to investigate the effect of Environmental factors
entrepreneurial intention of college management students in Bahir Dar city. The study had the
following specific objectives:

 To investigate the role of gender on entrepreneurial intention.

 To examine the effect of the entrepreneurship education and training on students’
entrepreneur intention.
 To examine the effect social norm of college students on entrepreneurship intention.
 To investigate the effect of perceived Government policy towards students’
entrepreneurial intention
 To investigate the effect of perceived access of finance on students’ entrepreneurial
intention. .

This research study used a quantitative research approach. The study adopted explanatory research
design to examine and identify the Environmental factors on Entrepreneurial intention of students
of Private colleges in Bahir Dar City.

The variables for the research study included Entrepreneurship education and training, social
norm, Perceived Government policy and perceived Access to finance as independent variables
while Entrepreneurial intention was the dependent variable. The target population comprised of 80

1
Students from Blue Nile, Alkan, and Blue Mark colleges in Bahir dar city administration. Research
findings were analyzed to enable the researcher to understand what the findings from the data
collected meant and this was done with the help of the statistical packages for social sciences
(SPSS version 26). The demographic profiles of the respondents were analyzed using percentages
and frequencies. As for inferential statistics, tools such as correlation, regression, coefficient, and
ANOVA were used to analyze and study the nature of effects between independent and dependent
variables.

After analyzing the gathered information, the following major findings were identified: The results
of the demographic characteristics of the Students indicated the sex of respondents, from all
respondent of Students, 48(60%) of respondents participated in this study were male Students and
32 (40%) of respondents were female Students. This finding suggested that whereas there were
more males than females Students at Private colleges, both genders had becoming equal
opportunities of Students at the Colleges.

In order to analyze the relationship between Environmental factors and Entrepreneurial intention
conducted a multiple regression analysis and computed R squared as .959. This means determinant
factors which explains 95.9 % of the variance on Entrepreneurial intention but 4.1% of the
variance (1-R2) cannot be explained by these three variables. In other words, the determinant
factors on entrepreneurial intention to leave or explanation level which means R2 value have been
found .959. So, only 95.9% of the determinant factors (95.9% of the total variance) describes the
entrepreneurial intention.

5.3 CONCLUSION

The objective of this study was to examine effect of Environmental factors entrepreneurial
intention of college management students in Bahir Dar city. It also determined the influence of
Entrepreneurship education and training, social norm, Perceived Government policy and perceived
Access to finance on Entrepreneurial intention in the study area. Consequently it investigated
which aspect of Environmental factors that emerge as the most significant impact on Students’
Entrepreneurial intention. The study found that the all four factors (Entrepreneurship education and
training, social norm, Perceived Government policy and perceived Access to finance) were

2
positively and significantly related to dependent variable (Entrepreneurial intention). This finding
implies that leaders should recognize the role of Entrepreneurship education and training, social
norm, Perceived Government policy and perceived Access to finance factors that may
subsequently harm the Entrepreneurial intention. Hence, measures must be taken to favorable
Entrepreneurship education and training, social norm, Perceived Government policy and perceived
Access to finance factors amongst the Students such as empowering subordinates where possible,
promoting workplace openness and fostering appropriate freedom of ideas.

In order to analyze the relationship between determinant factors and Entrepreneurial intention
conducted a multiple regression analysis and computed R squared as .959. This means determinant
factors which explains 95.9% of the variance on Entrepreneurial intention but 4.1% of the
variance (1-R2) cannot be explained by these three variables. In other words, the Environmental
factors on entrepreneurial intention to leave or explanation level which means R2 value have been
found .959. So, only 95.9% of the environmental factors (95.9% of the total variance) describe the
entrepreneurial intention.

5.4 RECOMMENDATIONS

From the above study, the researcher recommends the following:

 This study was found that there is positive and significant relationship exists between social
norm and entrepreneurial intention. Therefore, the entrepreneurship club should be
established as center of experience sharing between students and society at large.
 This study was found that, there is significant positive relationship exists between
perceived access to finance and entrepreneurial intention. Even though, significant positive
relationship was found between perceived access to finance and entrepreneurial intention,
the student’s perception towards access to finance for starting new business was found
positive. Therefore, work should be done to study this positive perception.
 Educators should work on career advisor service to promote entrepreneurship as career
choice of students

3
 5.5 SUGGESTION FOR FURTHER RESEARCH

The final model was able to explain 95.9% of the total variation of entrepreneurial intention. Of
course this model is well explained the dependent variable. Whereas, since 4.1% dependent
variables are not well explaining the dependent variable, the model might have missed out some
important factors influencing entrepreneurial intention. To get a more explanation of
entrepreneurial intention, other variables should be identified and included in future researches.

4
 References
Ajzen, I. 1991.The theory of planned behavior. Organizational Behavior and Human Decision
Processes, 50: 179-211.
Anol Bhattacherjee, (2012). Social Science Research: Principles, Methods, and Practices, Global
text book.

Autio, E.Keeley, R. H, Klofsten, M. & Ultstendt, T.(1997). Entrepreneurial intent Among

Students :

Africa enterprenership –sub Saharan regional report 2012 GEM.

Aiginger, K & G. Tichy (1991: 83-102). Small Firms and the Merger Mania, Small Business
Economics.

Aldrich, H & G. Wiedenmayers (1993). From Traits to Artesian Ecological Perspective on

Organizational Foundations Advances In Entrepreneurship, Firm Emergence And
Growth, 1,145-196.

Ang, S.H. and Hong, D.G.P. (2000), Entrepreneurial sprit among East Asian Chinese.
Thunderbird International Business Review, vol. 42 No. 3 pp. 285.

Arenius, P. and Minnitti, M. (2005). Perceptual variables and nascent entrepreneurship, Small
business economics, 24, 233-247.

Autio, E., keeley, R.H., Klofsten, M. and Ulfstend, T. (1997) Entrepreneurial intent among
students: testing an intent model in Asia, Scandinavia and USA.

BBC news 2, January 2014. Ethiopian entrepreneurship growth By Jemes Jeffrey. WWW.BBC
news.com

Bird, B.(1993). Demographic ApproacSSShes To Entrepreneurship The role of Experience And

Background Advance In Entrepreneurship Firm Emergence And Growth 1, 11-47. Brush, C. G.

(1992). Research on women business owners: past trends, a new perspective and future

directions. Entrepreneurship: Theory & Practice, verano, 5–30.

5
Bula (2012) Performance of Women Entrepreneurship In Small Scale Enterprises. Marital and
Family Characteristics. Listed Publication Vol. 4 N.7 of 2012.

Chen, C.C., Green, P. G., & Crick, A. 1998. Does entrepreneurial self- efficacy distinguish
entrepreneurs from managers? Journal of business venturing113(4)

Crant, J. M. 1996. The proactive personality scale as a predictor of entrepreneurial intentions

Journal of Small Business Management , 34(3): 42-49

Economic focus- entrepreneurship and development in Ethiopian vol.8 Sep,30, 2005.

Daidsson P.,L., Lkindmark & C. Olofssoon (1995). “The Trend Towards Small Scale During
The 1980’s. Empirical Evidence From Sweden” Paper Presented at the 40 th ICSB
World Conserve, Sydney June 18-21.

Davidsson, P., L. Landmark & C.Olofsson (1994). New Firm Formation And Regional
Development In Sweden, Regional Studies, 28,395-410.

Davidsson, P. (1992). Entrepreneurship And Small Business Research: How Do We Get Further?
BA Publications No 126. Ummera: Umea Business School.

Davidsson, P.(1995a). “Small Firms: Has Their Role As Job Creators Been Exaggerated?” Paper
Presented at the 40th ICSB World Conservancies Sydney, June 18-21.

Davidsson, P.,(1995b). SMES and Job Creation in Sweden. Report Submitted To the OECD.

Gartner W.B (1989). Some Suggestions To Research On Entrepreneurial Traits And

Characteristics Entrepreneurship Theory & Practice, Fall, 27-37.

Gartner, W.B.(1988). “ Who Is An Entrepreneurial” Is The wrong Question, American Small

Business Journal, Spring,11-31.

Global university entrepreneurial sprit students survey 2016

Golo Dida,(2012). Entrepreneurial Intention and its determinant Addis Ababa University, Ethiopia.
Gnyawali, D. R, & Fogel, D. S. (1994). Environments for entrepreneurship development

6
 Key dimensions and research implications. Entrepreneurship:
Theory & Practice,18(4),43–62.

Grilo, I. and Thurik, A.R. (2005). “Latent and Actual Entrepreneurship in Europe”.International
Entrepreneurship and Management Journal, 1(4), pp. 441-459.

Hmieleski, K. M., & Corbett, A. C. (2006). Proclivity for improvization as a predictor of

entrepreneurial intentions. Journal of Small Business Management, 44, 45-63.

Herbert, R. F. & Link, A. N. 1989. In Search of the Meaning of Entrepreneurship.

Small Business Economics, 1: 39-49.

International Journal of Business and Commerce Vol, 1. No ll July 2012. Published By Asian

Society of Gusineu And Commerce Research.

International Journal of Business and Management, Vol.7 N-24, 2012 Canadian Center Of
Science and Business Adm.

Kirby, D.A. (2006). “The contextual stepwise approach to enterprise research and the use of
undisguised stories and focus groups”. In Elgar, E. (2006) Innovative
Methodologies in Enterprise Research. UK,Cheltenham.

Kolvereid, L., & Moen, O. (1997). Entrepreneurship Among business graduations: Does a major
in entrepreneurship make a difference. Journal of European Industrial Training. 21(4)

Kristiansen, S. & N. Indart (2004): Entrepreneurial Intentions among Indonesian and

Norwegian Students", Enterprising Culture, 11, 87 -98

Lee, S.M., Chang, D. and Lim, S.(2005). Impact of entrepreneurship education: A comparative
study of the US and Koryea. The international Entrepreneurship and Management
Journal , Vol.1,pp. 27.

Linan, F.(2004). Does Social Capital affect Entrepreneurial Intention.

Low, M.& I.C. Macmillan (1988). Entrepreneurship past Research And Further Challenges,
Journal of Management, 14,139-151.

7
Luthje, C., & Frank, n. (2003). The making of an entrepreneur: Testing a model of
entrepreneurial intent among engineering students. R&D Management.

Miller, L., & BUDD, J. (1999) The development of occupational sex role stereotypes,
occupational preferences and academic subject preferences in children.

Munish vohra, Entrepreneral Development, 2006, New Delhi.

Naffziger, (1994). A Proposed Research Model of Entrepreneurial

Motivation, theory & Practice, Spring, 29-42.

Nguyen T.V et al. (2009), Cultural Values, Market Institutions, and Entrepreneurship
Potential A comparative study of the United States, Taiwan, and Vietnam, Journal
Developmental Entrepreneurship, Vol. 14, No. 1 (2009) 21–37

Phan, P. H., P. K. Wong & C. K. Wang (2002): Antecedents to Entrepreneurship Among U

niversity Students in Singapore: Beliefs, Attitudes and Background", Entrepreneurship: Theory
and Practice, 10(2), 151-174.

Reyonolds, P.D.(1991). Sociology And Entrepreneurship Concepts And Contributions,

Entrepreneurship Theory & Practice, Winter, 47-70.

Say, J.B. 1855. A treaties on political Economy trans.

Scott, M.G. & D.F. Twomey (1988). The long-term Supply of Entrepreneurs: Students’ Career
Aspirations in Relation to Entrepreneurship, Journal of Small Business Management,
26, 35-13.

Shaper O,A. & L Sokol (1982). The Social Dimension of Entrepreneurship. In: C.A Kent, D.L.
Sextol & K. H Vesper (eds.). The Encyclopedia of Entrepreneurship, Englewood
Cliffs, N1: Prentice-Hall

Sharer, K.G.& L.R. Scoff (1991). Person, Process, Choice: The Psychology of New Venture
Creations, Entrepreneurship Theory & Practice, Winter, 23-45.

Standworth, J.S. Blithe, B. Granger & C. Stand worth (1989). Who Becomes And Entrepreneur?
International Small Business Journal, 8,11-22.

8
Robert D. Histrsh, 2002. Entrepreneurship African edition.

Wilson, F., Kickul, j., & Marlino, D. (2007). Entrepreneurship theory and practice, 30(1)

Wang, C.K and Wong, P.K (2004). Entrepreneurial intent of University Students in Singapore.
Technovation, Vol. 24 No 2, pp. 163.

9
 Appendix
Questionnaire

Yom Postgraduate College

Master of business administration
Written questionnaire
This survey is intended to collect information for study on the factors that influence
entrepreneurial inclination in order to partially meet the requirements for a master's in business
administration degree. Your thoughtful comments will thereby enhance the validity of the study's
findings. I value your important addition to the research, thank you.

Instruction i. Please, Put a Tick ( ) Mark in the space provided

A. Gender
1. Gender Male Female

Instruction ii - Please indicate your level of agreement with the following statements by make
tick ()

1= strongly disagree 2= disagree 3= Neutral 4= agree 5= strongly agree

No Statements 1 2 3 4 5
A - Education and Training
1 I have attend a course on entrepreneurship so far
2 I have attended at least one entrepreneurship course as in my choice.
3 I have attended at least one entrepreneurship causes as compulsory
part of my studies
4 I am studying in a specific program on entrepreneurship
5 I have taken the training about the practical details needed to start a
business

6 you do know about rules, conditions, opportunities, and challenges in

order to establish an enterprise and get it running
7 The skill or the theory you acquired on field of study can be able to create
your own job
8 The entrepreneurial skill training that you got from your collage can make
you to create your own job
9 during college education make students to be exposed to the world of
work and learn the occupational practice in a real life situation

10
10 In order to become successful running your own business you would have
to be very knowledgeable in entrepreneurship field.
B – Social Norm
11 I believe that my closest family members think that I should pursue a
career as a entrepreneur
12 I believe that my closest friends that I should pursue a career as a
entrepreneur
13 I believe that people, who are important to me, think that I should
pursue a career as a entrepreneurs
14 Entrepreneurs have a positive image with my society
15 Starting a firm and keeping it viable were easy for me
16 It would be very difficult to be an entrepreneur in my society attitude
17 Entrepreneurs create employment and are therefore very important for the
nation's economy
18 Most entrepreneurs are only interested in making as much money as
possible for themselves
19 Individuals who founded firms created our national wealth
20 On balance, small firms are rather a loss to society, since quite a few
entrepreneurs engage in tax fraud or cause costly bankruptcies
C - Perceived Government Policy
21 There are sufficient subsidies available for new business in Bahir Dar
22 The procedures for establishing a new company are clear
23 Governments policy, rule and regenerations are favorable to start a
company
24 It is easy to start one’s own business due to the simplicity of the
administrative procedure
25 you do have an access of credit from the government to start
selfemployed business
26 you do have the opportunity to get Students/ selling area by the
governments
27 There is administrative complexities that discourage students to be self
employed
28 Do you believe that your living government is suitable for
entrepreneurship
29 Your government is encourage people to be an entrepreneur
30 The government encourage entrepreneur
D - Perceived Access To Finance
31 It is easy to obtain startup capital in Bahir Dar
32 Banks in Bahir Dar are ready to give credit for new business
33 It is easy to start one’s own business due to the availability of
financial resources

11
 34 Financial institutions are ready to give required finance to start
business
35 If I had the opportunity and resource I would like to starts a business
36 You do have a habit of saving to start or expand self-employed business
37 For your personal financial position running your own firm is no great
advantage
38 Founding a firm is very risk to losing one’s own has
39 I firmly believe money can solve all my problems
40 I am proud of my financial victories, pay, riches, investments, etc.
E-Entrepreneurial Intention
41 I will choose a career as an entrepreneur / self employed
42 I prefer to be self employed rather than to be an employee in organization

43 I have a strong intention to start a firm one day

44 I will make every effort to start my own business after my graduation
45 A career as an entrepreneur is totally attractive to me.
46 My professional goal is to be an entrepreneur after my graduation
47 I have a very low intention of ever starting a business
48 Being an entrepreneur implies more advantages than disadvantage to
me
49 Among various option would rather be anything but not an
entrepreneur
50 Being an entrepreneur is would give me great satisfaction

 Questionnaire source –Global university entrepreneurial spirit student’s survey 2016

(GUESSS)

12
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA COLLIN TOL CHANGE ZPP
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT EI
/METHOD=ENTER ET SN PGP PATF
/SCATTERPLOT=(*ZPRED ,*ZRESID)
/RESIDUALS DURBIN HISTOGRAM(ZRESID) NORMPROB(ZRESID).

Regression

Notes
Output Created 03-AUG-2023 23:08:50
Comments
Input Data C:\Users\abubi\Desktop\2015
research\merkeb\merkeb.sav
Active Dataset DataSet1
Filter <none>
Weight <none>
Split File <none>
N of Rows in Working Data File 80
Missing Value Handling Definition of Missing User-defined missing values are
treated as missing.
Cases Used Statistics are based on cases
with no missing values for any
variable used.

13
Syntax REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS
R ANOVA COLLIN TOL
CHANGE ZPP
/CRITERIA=PIN(.05)
POUT(.10)
/NOORIGIN
/DEPENDENT EI
/METHOD=ENTER ET SN
PGP PATF

/SCATTERPLOT=(*ZPRED ,*Z
RESID)
/RESIDUALS DURBIN
HISTOGRAM(ZRESID)
NORMPROB(ZRESID).
Resources Processor Time 00:00:00.27
Elapsed Time 00:00:00.32
Memory Required 6144 bytes
Additional Memory Required for 632 bytes
Residual Plots

Variables Entered/Removeda
Variables
Model Variables Entered Removed Method
1 PATF, PGP, SN, . Enter
b
ET
a. Dependent Variable: EI
b. All requested variables entered.

Model Summaryb
Adjusted R Std. Error of the Change Statistics
Model R R Square Square Estimate R Square Change F Change df1 df
a
1 .979 .959 .956 1.05541 .959 433.691 4
a. Predictors: (Constant), PATF, PGP, SN, ET

14
b. Dependent Variable: EI

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 1932.345 4 483.086 433.691 .000b
Residual 83.542 75 1.114
Total 2015.888 79
a. Dependent Variable: EI
b. Predictors: (Constant), PATF, PGP, SN, ET

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients Correlatio
Model B Std. Error Beta t Sig. Zero-order Partia
1 (Constant) 1.659 1.076 1.542 .127
ET .304 .096 .261 3.170 .002 .837 .
SN .726 .082 .688 8.839 .000 .967 .
PGP .410 .075 .386 5.461 .000 .797 .
PATF .211 .067 .222 3.157 .002 .920 .
a. Dependent Variable: EI

Collinearity Diagnosticsa
Variance Proportions
Model Dimension Eigenvalue Condition Index (Constant) ET SN PGP PATF
1 1 4.980 1.000 .00 .00 .00 .00 .00
2 .011 21.341 .78 .00 .01 .00 .04
3 .007 26.655 .15 .02 .01 .11 .07
4 .001 74.261 .00 .09 .93 .01 .69
5 .001 87.392 .06 .89 .04 .88 .21
a. Dependent Variable: EI

Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N

15
Predicted Value 26.5756 49.0022 38.3375 4.94571 80
Residual 3.19970 1.74889 .00000 1.02835 80
Std. Predicted Value 2.378 2.156 .000 1.000 80
Std. Residual 3.032 1.657 .000 .974 80
a. Dependent Variable: EI

Charts

16
17