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A COMPARATIVE STUDY ON ATTITUDE TOWARDS
ENTREPRENEURSHIP AMONG MBA AND OTHER
STUDENTS
Shaik Karim1, Dr. Ch.Venkataiah
2
1Research Scholar,
2Associate Professor, GITAM School of International Business, GITAM
University, Visakhapatnam, (India)
ABSTRACT
Entrepreneurship contributes immensely to the economic growth and thereby plays a vital role in the
development process. Business organizations and Governments across the world have hailed the importance of
entrepreneurship and its contribution to socio-cultural and economic development. There is general agreement
that attitude towards the entrepreneur, entrepreneurial activity, and its social function is determinant factors for
university students to decide an entrepreneurial career? This paper aimed at assessing student’s beliefs and
attitudes toward new venture creation and the entrepreneur. It also attempted to determine any significant
differences in the respondent’s attitude when grouped by (a) gender (b) entrepreneurs among relatives and (c)
course. The respondents were university students studying UG and PG courses in Chittoor District of Andhra
Pradesh (India). The data were analyzed using MS Excel and SPSS package. Results reveal a positive
entrepreneur’s image and favorable perception of desirability of new venture creation,
Keywords: Attitudes, Beliefs, Entrepreneurship, Perception, Students
I. INTRODUCTION
No country in the world can ignore the development of entrepreneurship as the economic development depends
upon it. Entrepreneurship has been a buzzword especially among young people. Experts view entrepreneurship
in various perspectives. Entrepreneurship is the activity of establishing and managing a business for profit and
growth [1].Entrepreneurship is the professional application of knowledge, skills and competencies and/or of
monetizing a new idea, by an individual or a set of people by launching an enterprise de novo or diversifying
from an existing one (distinct from seeking self employment as in a profession or trade), thus to pursue growth
while generating wealth, employment and social good [2].
Entrepreneurship contributes immensely to the economic growth and thereby plays a vital role in the
development process. It sows the seeds of development and that, in turn, facilitates the growth, it is the policy
goal of many governments to develop a culture of entrepreneurial thinking. In India, entrepreneurship was
initially displayed in only certain communities. Faced with the problem of limited supply of entrepreneurship,
Government of India has taken several positive measures during the plan periods not only to develop
entrepreneurship but also to promote small scale enterprises. Despite the efforts of support organization and
entrepreneurship development centers, it is felt that much is to be done to make entrepreneurship as an attractive
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career. In this regard, entrepreneurship education has gained importance and is drawing the attention of policy
makers, academicians and researchers. Development of entrepreneurship is essentially dependent on the
entrepreneurial attitude, that is to say a special frame of mind marked by an independent energetic spirit to
assume risks and, of course, courage to undertake something new.
The attitudes towards the entrepreneur, entrepreneurial activity, and its social function are determinant factors
for students to decide an entrepreneurial career. This study aims at assessing the attitudes of students towards
entrepreneurship and enterprise formation in Chittoor District of Andhra Pradesh. The study also examines if
there is any difference in the attitudes of Management and Other Students.
II. THEORETICAL FRAMEWORK
The entrepreneurial model developed by Krueger and Brazeal have been used in our research. Their model takes
a social psychology perspective and is a “process-based, theory-driven micro model with macro consequences”
[3]. The model is based on Shapero‟s work on the entrepreneurial event and Ajzen‟s Theory of Planned
Behavior. The Shapero‟s model of entrepreneurial event formation focuses on how the cultural and social
environment affects the choice of an entrepreneurial path. He states that the intent to start a business derives
from perceptions of both, desirability and feasibility and the Ajzen‟s Theory of Planned Behavior [4], designed
to predict and explain human behavior, centers on the individual‟s intention to perform a given behavior.
Source: Krueger and Brazeal1994:95
Figure 1. Model of entrepreneurial potential
Therefore credibility requires that the behavior be seen both desirable and feasible. These antecedents affect the
intentions toward the behavior or action of new venture creation. The model allows for the case that although
the individual perceives the new venture creation desirable and feasible, and therefore credible, he/she has not
the intention to realize the behavior because the precipitating event may be lacking.
2.1 Perceived Venture Desirability
The Krueger and Brazeal‟s model state that this construct embraces the two “attractiveness components” of the
Theory of Planned Behavior: attitude toward the act and social norms. From Theory of Planned Behavior,
attitude toward the act refers to the degree to which a person has a favorable or unfavorable evaluation or
appraisal of the behavior in question. Social norms, on the other hand, refer to the perceived social pressure to
perform or not to perform the behavior. These are tied to our perceptions of what important people in our lives
would think about our launching a venture. The theory of planned behavior, in its intent to explain human
Perceived
Desirability
(Social norms,
Attitude)
Perceived
Feasibility (Self-
efficacy)
Credibility Potential Intentions
Propensity
to Act Precipitating
Event
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behavior deals also with the antecedents of attitudes toward the behavior and subjective norms. The theory of
planned behavior postulates that behavior is a function of beliefs relevant to the behavior. It is these salient
beliefs that are considered to be the prevailing determinants of a person‟s attitudes, intentions and behavior.
Behavioral beliefs are assumed to influence attitudes toward the behavior. Each belief links the behavior to a
certain outcome, which is already valued positively or negatively. Therefore, people automatically acquire an
attitude toward the behavior. In this way, people form favorable attitudes toward behaviors believed to have
desirable consequences and negative attitudes toward behaviors associated with undesirable consequences . In
the case of subjective norms, normative beliefs constitute their underlying determinants. Normative beliefs are
concerned with the likelihood that important referent individuals or groups approve or disapprove of performing
a given behavior.
On the other hand, Shapero[5] examines the concept of desirability using data on the family, peer groups, ethnic
groups, educational and professional contexts of potential entrepreneurs. In the case of the family, he states that
particularly the father or mother plays the most powerful role in establishing the desirability and credibility of
the entrepreneurial action for an individual. In the same way, the larger the number and variety of entrepreneurs
in a particular culture, the greater the probability that the individuals in that culture will form companies[6].
2.2 Perceived Venture Feasibility
As indicated above, in Krueger and Brazeal‟s model, perceived feasibility in Shapero‟s terminology,
corresponds to perceived behavioral control in the theory of planned behavior.
Perceived behavioral control plays an important part in the Theory of Planned Behavior. According to this
theory, the resources and opportunities available to a person must to some extent dictate the likelihood of
behavioral achievement. However, of greater psychological interest than the actual control is the perception of
behavioral control and its impact on intentions and actions. Perceived behavioral control is defined in the
Theory of Planned Behavior as the people‟s perception of the ease or difficulty of performing the behavior of
interest. The antecedents of perceived behavioral control are the control beliefs. These beliefs deal with the
presence or absence of requisite resources and opportunities. These control beliefs may be based in part on past
experience with the behavior, but they will usually also be influenced by second hand information about the
behavior, by the experiences of acquaintances and friends, and by other factors that increase or reduce the
perceived difficulty of performing the behavior in question.
Related to this construct, Shapero emphasizes the perception of the availability of financial support, although he
mentions also the perception of the availability of other supports as advice, consultation and education that make
the act of venture creation feasible to the potential entrepreneur .
According to the Theory of Planned Behavior, the relative importance of attitude, subjective norm and perceived
behavioral control in the prediction of intention is expected to vary across behaviors and situations . In the same
way, Shapero states that in the new venture creation process, no single variable or factor can account for the
outcome of the process. A number of outcomes are necessary but no one is sufficient. However, Krueger
presents evidence that perceived credibility, perceived desirability and propensity to act explain well “over half”
of the variance of the intentions toward entrepreneurship, with feasibility perceptions explaining the most[7].
Therefore Krueger and Brazeal state as their most important conclusion the primacy of perceived feasibility and
the need to research what factors contribute the most to perceptions of feasibility.
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III. PROBLEM STATEMENT AND RESEARCH OBJECTIVES
It is said that institutions are the rules of the game in a society or, more formally, are the humanly devised
constraints that shape human interaction [8]. Therefore, the institutional context affects the performance of
economies, particularly through the influence over the entrepreneur‟s behavior, and therefore should be explored
and analyzed closely. The Institutional Economic Theory serves to analyze, in a holistic way, the contextual
factors as determinants of entrepreneurship. It has been stated that this theory currently supplies the most
consistent and appropriate conceptual framework to probe the influence of the environmental factors on
entrepreneurship in a region or country.
3.1 Research Questions
The following questions were formulated for this study
Whether students consider desirable to start a new firm?
Whether students have a positive or negative perception of new venture feasibility?
Whether students have a serious intention to create their own firm?
Which is the student‟s image of the entrepreneur? How do they evaluate the entrepreneur‟s social and
economic role in society?
How do students rank the prestige of the entrepreneur compared to other professions?
Does there exist a relationship between gender and the variables of desirability, feasibility and intention to
create a new firm?
Does there exist a relationship between entrepreneurs among relatives and the variables of desirability,
feasibility and intention to create a new firm?
Does there exist a relationship between Course of Study and the variables of desirability, feasibility and
intention to create a new firm?
3.2 Research hypotheses
The hypotheses tested in this paper respond to the demographic variables extensively studied in the literature
crossed with the principal aspects of Krueger and Brazeal‟s model. The variables of gender and entrepreneurs
among relatives and course of study were crossed with desirability, feasibility and intention to create a new firm
to test hypotheses.
The Main Variables are
• The variable gender
• The variable entrepreneurs among relatives
• The variable Course of Study
3.2.1 The variable gender
Several studies have found that males have a higher preference for entrepreneurship behavior than females
[9][10]. Studies found that males have a significantly higher preference for self-employment than females[11].
The authors came to conclusion that gender influence self employment intentions indirectly through their effect
on attitude, subjective norm, and perceived behavioral control. Taking a cue from previous research following
three hypotheses was developed in this research concerning the variable gender.
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Hypotheses:
H1: There is a relationship between the student‟s gender and the perception of new venture desirability
H2: There is a relationship between the student‟s gender and the perception of new venture feasibility
H3: There is a relationship between the student‟s gender and the serious intention to create a new firm
The variable entrepreneurs among relatives
Previous studies on family background evidences a positive relationship between the presence of role models in
the family and the emergence of entrepreneurs. Collins, Moore and Unwalla[12]were the first authors to verify
through an empirical research that the influences over a new venture idea go back to the childhood and the
family circumstances of the entrepreneur. Among more recent works treating this theme the following can be
mentioned: Brockhaus and Horwitz [13], Scherer et al.[14] Matthews and Moser[15] . Advocates of
demographic models have suggested and found empirical support for the hypothesis that family background is
related to entrepreneurial intentions .
Kolvereid, in its application of the Theory of Planned Behavior to predict employment status choice, also
studied the role of family background. Taking into consideration previous empirical works presented, the
following three hypotheses were developed in this research concerning the variable entrepreneurs among
relatives.
Hypotheses:
H4: There is a relationship between entrepreneurs among relatives and the perception of new venture
desirability
H5: There is a relationship between entrepreneurs among relatives and the perception of new venture feasibility
H6: There is a relationship between entrepreneurs among relatives and the serious intention to create a new
firm.
The variable course of study
One may consider that students in different degree programmes have different perceptions of entrepreneurship.
Some researchers have studied the perception and attitudes towards entrepreneurship based on course of study
Michael L. Harris et al.[16] John Luiz et al. [17]. Therefore the study is also an attempt to find if there is any
difference between MBA and OTHER Students
Hypotheses:
H7: There is a relationship between the Course of Study and the perception of new venture desirability
H8: There is a relationship between the student‟s Course of Study and the perception of new venture feasibility
H9: There is a relationship between the student‟s Course of Study r and the serious intention to create a new
firm
IV. METHODOLOGY
4.1 Participants and Instrumentation
The samples in this study were UG and PG students studying in Chittoor district. The physical questionnaires
were administered to students in their lectures. A total of 193 students completed the survey. After removing the
incomplete responses the final sample of 176 were taken for analysis. The questionnaire used in the study was
based on a survey carried out by Jose M Veciana et. al (2005). There were questions consisting of Demographic
factor perception towards new venture creation intentions and Entrepreneurs image.
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4.2 Data Analysis Procedures
The data analysis for this study conducted through MS Excel and „SPSS‟ software. Statistical tools like
independent sample t test and Chi Square test were used for analysis purpose.
V. RESULTS AND DISCUSSION
5.1 Profiles of Respondents
The demographic profile of participant‟s according to gender, age, and course of study is presented in Table 1.
Table 1: Profiles of Respondents
Variables Frequency(n) Percentage (%)
Gender
Female 70 39.8
Male 106 60.2
Age
19 18 10.2
20 20 11.4
21 36 20.5
22 44 25.0
23 36 20.5
24 8 4.5
25 6 3.4
26 2 1.1
27 2 1.1
32 4 2.3
Mean age = 21.99
Course
MBA 98 55.7
OTHER 78 44.3
From the above 176 respondents in this study 106(60.2 %) are male and 70(39.8%) are females. The mean age
of the respondents is 21.99 years. 98(55.7 %) are management students and remaining 78(44.3%) are from other
discipline.
5.2 New Venture desirability
Table 2 shows the results of the answer to the question: Do you consider desirable to create a new firm?
Table 2: New Venture Desirability
Frequency(n) Percentage (%)
Affirmative 110 62.5
Negative 66 37.5
110(62.5%) students answered affirmatively to this question and the remaining 66(37.5%) answered negatively.
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5.3 New Venture Feasibility
Table 3 shows the results of the answer to the question: Do you consider that it is easier or more difficult to
create a new firm at present than in the past decades?
Table 3: Perception of New Venture feasibility
Frequency(n) Percentage (%)
Easier 52 29.5
More Difficult 110 62.5
NA 14 8.0
The majority of the students answered that it is more difficult to create a new firm at present than in the past
decades
5.4 Students Intention to Create A New Firm
Table shows the results of the answer to the question: Have you seriously thought about creating your own
business?
Table 4: Students intention to create a new firm
Frequency(n) Percentage (%)
No never 32 18.2
No, but I plan to join a family business 14 8.0
Yes may be 92 52.3
Yes seriously 14 8.0
Yes I have the firm intentions to create my own business 24 13.6
The majority of the students 92(52.3%) have a vague intention to create a new firm. The percentage of students
who have never seriously thought of creating a new firm is 18.2
5.5 Entrepreneur's Image
Desirability to become an entrepreneur depends on the image of the entrepreneur. Therefore it is important to
know the image of the entrepreneurs in society. Table 5 and Table 6 represent the ranking of the entrepreneurs
prestige compared to other professionals and the valuation of the attributes related to the image of the
entrepreneurship.
Table 5: Ranking of the prestige of 14 professions
MBA Other
Profession N Mean N Mean t- value
Doctor 98 5.634532 78 6.307692 -2.68
Entrepreneur 98 5.632653 78 5.820513 -0.94561
Teacher 98 5.530612 78 6.076923 -2.31201
Executive of Large firm 98 5.408163 78 5.512821 -0.46972
Economist 98 5.122449 78 4.846154 1.293722
Journalist 98 4.877551 78 5.487179 -2.0175
Psychologist 98 4.857143 78 4.615385 1.008287
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Engineer 98 4.673469 78 5.205128 -2.52792
Sociologist 98 4.632653 78 3.846154 3.301293
Lawyer 98 4.510204 78 4.384615 0.535958
Physicist 98 4.469388 78 4.794872 -1.3788
Translator 98 4.469388 78 4.153846 1.280962
Chemist 98 4.326531 78 4.717949 -1.92224
Publicist 98 4.204082 78 4.230769 -0.11691
* Statistically significant difference at the 0.05 level of significance among MBA and Other students
The MBA student have ranked second to entreneur profession after the Doctor. On the other hand the
Students from other have ranked Doctor first and then Teacher the entrepreneur profession was given third
position.
Table 6:Image of the Entrepreneur
MBA OTHER
Image of Entrepreneur N Mean N Mean t- value
Entrepreneurs are dynamic persons 98 4.020408 78 3.897436 0.719
Entrepreneurs have good organizational skills 98 4 78 4.358974 -2.39377
Entrepreneurs have good financial and management skills 98 3.755102 78 4.153846 -2.47422
Entrepreneurs are very innovative 98 3.816327 78 4.282051 -3.03042
Entrepreneurs are professionally well prepared 98 3.632653 78 3.435897 1.282185
Entrepreneurs are able and willing to take risks 98 4.285714 78 4.230769 0.375453
Entrepreneurs have a good entrepreneurial vision 98 3.795918 78 3.820513 -0.15962
Entrepreneurs invest 98 3.489796 78 3.897436 -2.34857
Entrepreneurs create jobs 98 3.714286 78 4.051282 -1.86105
Entrepreneurs help the economic development of the country 98 3.938776 78 3.897436 0.241843
Entrepreneurs earn a lot of money 98 3.408163 78 3.74359 -2.00957
Entrepreneurs engage in a dialogue with the employees 98 3.020408 78 3.589744 -3.85503
Entrepreneurs are honest and moral 98 3.081633 78 3.128205 -0.29842
Entrepreneurs have a sense of social justice 98 3.367347 78 3.102564 1.765637
Statistically significant difference at 0.05 level of significance among MBA and OTHER Students.
The MBA students have ranked the attributes Entrepreneur are able and willing to take risks and Entrepreneurs
are dynamic persons in the first two positions. On the other hand the students from other discipline have ranked
the following attributes in the first two positions Entrepreneurs have good organizational skills and
Entrepreneurs are very innovative.
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5.6 Hypotheses Testing
H1: There is a relationship between the student‟s gender and the perception of new venture desirability
Table 7: Gender distribution and desirability Perception
MBA OTHER
Negative Affirmative Negative Affirmative
Female 18 14 24 14
Male 20 46 4 36
Total 38 60 28 50
Chi-Square Value=6.112* Chi-Square Value=23.930*
*Statistically significant at 0.05 level of significance.
Hypothesis 1 is confirmed for both MBA and Other discipline students. In the sample there seems to exist a
positive relationship between gender and the perception. The male percentage of student who answered
affirmatively is higher than the percentage of female.
H2: There is a relationship between the student‟s gender and the perception of new venture feasibility
Table 8: Gender distribution and feasibility Perception to create a new firm
MBA OTHER
Easier at present Difficult at present Easier at present Difficult at present
Female 4 28 14 24
Male 16 40 18 18
Total 20 68 32 42
Chi-Square Value=2.995 Chi-Square Value=1.304
Statistically not significant at 0.05 level of significance
The result revealed that there is no statistical evidence at the 0.05 level of significance to confirm the hypothesis
2.
H3: There is a relationship between the student‟s gender and the serious intention to create a new firm
Table 9: Gender distribution and intention to create a new firm
MBA No never No but I plan to
join a family
business
Yes may be Yes seriously Yes I have the
firm intention
Female 8 4 14 2 4
Male 10 4 32 6 14
Total 18 8 46 8 18
Chi-Square Value=3.439 Not Significant
OTHER
Female 6 6 26 0 0
Male 8 0 20 6 6
Total 14 6 46 6 6
Chi-Square Value=19.030 Significant
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For hypothesis 3 the result was mix f or MBA Students the result was found to be statistically not significant but
in case of the students from other discipline the result was found to be statistically significant.
H4: There is a relationship between entrepreneurs among relatives and the perception of new venture
desirability
Table 10 : “Entrepreneurs among relatives” and desirability Perception
MBA OTHER
Negative Affirmative Negative Affirmative
Entrepreneurs among
relatives 12 24 6 24
Non Entrepreneurs among
relatives 26 36 22 26
Total 38 60 28 50
Chi-Square Value=.710 Not
significant
Chi-Square Value=5.354* Significant at
0.05 level
Hypothesis 4 is confirmed only for students from other discipline. In case of MBA students the results shows
that there is no statistical evidence at the 0.05 level of significance to confirm hypothesis 4.
H5: There is a relationship between entrepreneurs among relatives and the perception of new venture
feasibility
Table 11 : “Entrepreneurs among relatives” and new venture feasibility
MBA OTHER
Easier at present Difficult at present Easier at present Difficult at present
Entrepreneurs
among relatives 12 18 12 18
Non Entrepreneurs
among relatives 8 50 20 24
Total 20 68 32 42
Chi-Square Value=7.733 Significant Chi-Square Value=.216 Not significant
Hypothesis 5 is confirmed for the sample of MBA students only. In the sample there seems to exist a positive
relationship between the Entrepreneurs among relative and the perception of new venture feasibility. In case of
students from other discipline there is no statistical evidence to confirm the hypothesis.
H6: There is a relationship between entrepreneurs among relatives and the serious intention to create a new
firm
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Table 12 : “Entrepreneurs among relatives” and intention to create new firm
MBA No
never
No but I plan to join a
family business
Yes
may be
Yes
seriously
Yes I have the firm
intention
Entrepreneurs among
relatives 8 8 10 0 10
Non Entrepreneurs
among relatives 10 0 36 8 8
Total 18 8 46 8 18
Chi-Square Value=26.078 Significant
OTHER
Entrepreneurs among
relatives 6 0 18 0 6
Non Entrepreneurs
among relatives 8 6 28 6 0
Total 14 6 46 6 6
Chi-Square Value=17.223 Significant
Hypothesis 6 is confirmed for both MBA and Students from other discipline. There seems to exist a positive
relationship between the variable entrepreneurs among relatives and the firm intention to create a new firm.
H7: There is a relationship between the Course of Study and the perception of new venture desirability
Table 13 : Course of study and desirability Perception
Course Negative Affirmative
MBA 38 60
OTHER 28 50
TOTAL 66 110
Chi-Square Value=.153 Not Significant
The result revealed that there is no statistical evidence at the 0.05 level of significance to confirm the hypothesis
7.
H8: There is a relationship between the student‟s Course of Study and the perception of new venture feasibility
Table 14 : Course of study and Perception of new venture feasibility
Course Easier More Difficult
MBA 20 68
OTHER 32 42
TOTAL 52 110
Chi-Square Value=7.763 Significant
Hypothesis 8 is confirmed. There seems to exist a relationship between the variable course of study and
perception of new venture feasibility.
H9: There is a relationship between the student‟s Course of Study r and the serious intention to create a new
firm
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Table 15 : Course of study and intention to create new firm
No
never
No but I plan to join a family
business
Yes may
be
Yes
seriously
Yes I have the firm
intention
MBA 18 8 46 8 18
OTHER 14 6 46 6 6
Total 32 14 92 14 24
Chi-Square Value=4.861 Not Significant
The result revealed that there is no statistical evidence at the 0.05 level of significance to confirm the hypothesis
9.
VI. CONCLUSIONS
The main conclusion of the research are the following:
1. The survey reveals that the university students have a positive perception of new venture desirability. The
majority of the students 110(62.5%) answered that they consider desirable to create a new firm.
2. The questions regarding the perceptions of feasibility show that 62.5% of students consider that it is more
difficult to create a firm at present than in the past decades.
3. A high percentage of the students in sample has vaguely (52.39%) considered to create a new firm as a career
path, but only a small percentage has the firm intention (13.6%) do so.
4. There seems to exist a relationship between the student‟s gender and the perception of new venture
desirability.
5. There seems to exist a relationship between the variable entrepreneurs among relatives and feasibility
perception to create a new firm in the case of MBA students.
6. There seems to exist a relationship between the variable entrepreneurs among relatives and intention to create
a firm. Students with entrepreneurs in their families have thought more seriously to create a new venture.
7. There seems to exist a relationship between the variable course of study and perception of new venture
feasibility.
8. There exists a positive image of the entrepreneur among the students.
9. The prestige of the entrepreneurial activity as a profession compares relatively well with other professions. It
is interesting to note that the profession of entrepreneur was ranked third by students from other discipline and
second by MBA students.
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