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Entrepreneurial Characteristics Amongst
Entrepreneurial Characteristics Amongst
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Entrepreneurial
Entrepreneurial characteristics characteristics in
amongst university students Turkey
Some insights for entrepreneurship education
and training in Turkey 25
Yonca Gürol
Business Department, Yildiz Technical University, Besiktas Kampuso Barboros,
Bulvari/Besiktas, Istanbul, Turkey, and
Nuray Atsan
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during the first decades of the modern Turkish Republic, a state-initiated economic
policy was implemented with state-owned enterprises playing a leading role,
particularly in the industrial sector (Kurtuluş, 1987). Since the 1980 s, a major shift in
the economic development strategy has taken place in Turkey. A conservative
economic mindset has changed and the Turkish economy has now a rapidly growing
free market economy. Import substitution, which entailed state-ownership and control
of key sectors of the economy, was replaced by export orientation led by private capital
that operated in a freer domestic market (Aybar and Lapavitsas, 2002). In this regard,
the importance of entrepreneurship and small business to the economy is now widely
recognized and is provided with national incentives by prevailing governments.
Established in 1990, a government institution, the Small and Medium Enterprise
Development Agency (KOSGEB) undertakes a leading role in promoting and
developing national entrepreneurship movement. KOSGEB (2002) reported that the
small and medium enterprise sector comprises 99.5 percent of all the firms in Turkey
and accounting for about 61.1 percent of the workforce, but only 27.3 percent of the
economy’s total value added.
However, the development and indeed the pervasion of an entrepreneurship culture
have not reached a desired national level in comparison to the entrepreneurship
movement in other developed and developing nations. When the number of people who
found a business amongst 100 individuals is considered, Turkey has a lower number of
entrepreneurs than 29 countries (TUSIAD Report, 2002). While the average number of
business founders in Turkey is 4.6 among 100 individuals, it is 18.7 in Mexico, 12 in
Ireland, 7.7 in UK and 11.7 in USA (TUSIAD Report, 2002). The number of new
business openings is also relatively low in Turkey compared to other countries. While
the ratio of new business openings and closures to all businesses is 11-17 percent and
9-14 percent respectively in OECD countries, the respective figures in Turkey are 3.5
percent and 0.9 percent (TUSIAD Report, 2002). Another problem for Turkey is its
inability to make use of women and young entrepreneurs, an important entrepreneurial
potential within Turkish population. The percentage of women employers among all
employers in Turkey is as low as 3.3 percent (TUSIAD Report, 2002).
Enterprise education
A well functioning venture support system can stimulate and facilitate
entrepreneurship and entrepreneurship education is likely to play an important
element in any venture support system (Hansemark, 1998). There is currently a great
deal of activity in the field of entrepreneurship education in universities and colleges Entrepreneurial
throughout the world (Gibb, 1993; Koh, 1996; Hansemark, 1998; Thompson, 1999; Jones characteristics in
and English, 2004). The USA seems to take the lead in entrepreneurship education. As
Kuratko (2003) noted in his study, the number of colleges and universities that offer Turkey
entrepreneurship courses has grown from a handful in 1970 s to more than 1,600 in
2003. Elsewhere, though, there is evidence of a growing number of Australian
universities, for example, offering entrepreneurship programs and in the UK business 27
and entrepreneurial development has been listed as one of the four strategic goals for
British universities (Kirby, 2004). In sum, the literature comprises studies emphasizing
that entrepreneurship and small business education have been rapidly promoted in
education institutions in European, Asian and African countries (Brockhaus, 1991;
Gibb, 1993; Ronstadt, 1987; Koh, 1996; Hytti and O’Gorman, 2004).
Whilst it would not be unreasonable to suggest that entrepreneurship education
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market conditions (Alstete, 2002), social upheaval, supportive social and economic
culture (Green et al., 1996).
On the other hand, individual factors, widely known as the trait model, focus on
personality characteristics of entrepreneurs (Koh, 1996). This model rests on the
assumption that entrepreneurs have certain unique characteristics, attitudes and
values that provide an impetus for them and distinguish them from others (Thomas
and Mueller, 2000; Koh, 1996). In studies that employ the trait model, questions as to
whom the entrepreneurs are, why they become entrepreneurs, and the characteristics
of successful and unsuccessful enterprises are investigated (Bygrave and Hofer, 1991;
Littunen, 2000). The trait model has been a significant element of research on
entrepreneurship. Various research studies have analyzed certain traits of personality
as the characteristics of entrepreneurs. For instance, in the study by Entrialgo et al.
(2000) locus of control, need for achievement and tolerance for ambiguity are regarded
as the determinants of the tendency for entrepreneurship. In the studies by Stewart
et al. (1998), on the other hand, need for achievement, risk taking propensity, and
innovation have been used as determinants for distinguishing “entrepreneurs” from
“corporate managers” and small business owners.
In this study six personality characteristics are used to define the entrepreneurial
profile of students. These are need for achievement, locus of control, risk taking
propensity, tolerance for ambiguity, innovativeness and self-confidence. These
characteristics were chosen since they are frequently cited in different studies in the
entrepreneurship literature. Furthermore, the authors do consider these characteristics
as capable of representing the entrepreneurial behavior of individuals. However, it
should be noted that the overall results of research on these characteristics are still
inconclusive. Within the literature on this subject there is research that both supports
and refutes the relationship among the characteristics mentioned below.
Methodological, definitional and conceptual complexities are regarded as the major
reasons of these differences (Stewart et al., 1998; Robinson et al., 1991).
Innovativeness
Innovation has a comprehensive definition including to create new products or new
quality, to create new methods of production, to get into a new market, to create a new
source of supply or to create new organization or structure in business. Successful
innovation demands an act of will, that is, it demands a leader and it has to be carried
through (Hansemark, 1998). Innovativeness is suggested as a behavior that Entrepreneurial
characterizes entrepreneurship and entrepreneurial orientation (Entrialgo et al. characteristics in
(2000). That is, by definition entrepreneurs are always looking for new opportunities
(Zacharakis, 1997). Drucker, for example, claims that innovation is the major tool of Turkey
entrepreneurship. He refers to innovation as a systematic search for the changes as
opportunities for new markets, products, or ideas (Cromie, 2000; Utsch and Rauch,
2000). Like did many authors in the literature, Stewart et al. (2003) argue that 29
innovation is inherent in the role of entrepreneurship and it can separate
“entrepreneurs” from “managers”. In the study by Utsch and Rauch (2000), it has
also been found that there is a close relationship between innovativeness and venture
performance. In the study by Thomas and Mueller (2000), innovativeness, also, has
been taken as a major characteristic in defining the entrepreneurship profile.
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Locus of control
Another extensively researched trait is locus of control (LoC). It is a personality
variable that is related to the generalized expectations of a person on whether he/she
will be able to control the events in life (Leone and Burns, 2000). According to Rotter
(1996) individuals vary in terms of how much personal responsibility they perceive and
accept for their behavior and its consequences. Individuals with an external LoC
believe circumstances beyond their immediate control such as luck, fate and other
people affect their performance across a range of activities. Individuals with an internal
LoC believe they personally control events and consequences in their lives (Koh, 1996;
Riipinen, 1994; Hansemark, 1998). It is believed that entrepreneurs have an internal
locus of control. Entrepreneurs searching for new opportunities and taking an
innovative attitude are also expected to have the capability to control the events in
their lives, or, in other words, have locus of inner control. Many studies on the subject
have verified this expectation (Mueller and Thomas, 2000; Hansemark, 1998; Koh,
1996; Utsch and Rauch, 2000). For example, Gilad (1982) was able to use LoC to
distinguish successful and unsuccessful small business owners (Engle et al., 1997).
ET Similarly in Shapero’s study, the conclusion reached was that entrepreneurs have
48,1 relatively higher locus of inner control than those who are not entrepreneurs (Thomas
and Mueller, 2000).
Self confidence
Entrepreneurs are typically described as having self-confidence. Because they seek out
and complete demanding tasks it is unlikely that they could do this successfully if they
had low confidence. As noted by Cromie (2000), perhaps self-confidence is an outcome
rather than a determinant of entrepreneurship. In the literature on entrepreneurship, it
is stated that entrepreneurs demonstrate a higher degree of self-esteem with respect to
others (Koh, 1996; Robinson et al., 1991).
Research design and methodology Entrepreneurial
This study aims to analyze the entrepreneurial characteristics of university students characteristics in
on the basis of the data collected in 2003 spring semester. The underlying assumption
is that certain entrepreneurial characteristics encourage persons to become Turkey
entrepreneurs (or create a tendency for entrepreneurship) and thus distinguish them
from the rest of the society. On the basis of a framework of variables (see above) the
following hypotheses are tested in the study: 31
H1. Entrepreneurially inclined students will rate innovativeness higher than those
who are not entrepreneurially inclined.
H2. Entrepreneurially inclined students will rate achievement higher than those
who are not entrepreneurially inclined.
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H3. Entrepreneurially inclined students will rate locus of control higher than
those who are not entrepreneurially inclined.
H4. Entrepreneurially inclined students will rate risk taking higher than those
who are not entrepreneurially inclined.
H5. Entrepreneurially inclined students will rate tolerance for ambiguity higher
than those who are not entrepreneurially inclined.
H6. Entrepreneurially inclined students will rate self confidence higher than those
who are not entrepreneurially inclined.
The independent variables of innovativeness, need for achievement, locus of control,
risk taking propensity, tolerance for ambiguity and self confidence examined in the
previous section were tested in relation to entrepreneurship tendency; the dependent
variable.
A sample of university students was composed. It should be emphasized that our
starting point is the assumption that university students constitute a significant
portion of the pool of potential entrepreneurs in both developed and developing
countries, as stated by Thomas and Mueller (1998). The study was conducted on a
sample of undergraduate seniors in business administration from two universities,
namely Yıldız Technical University and Akdeniz University.
The research was conducted in two phases. In the first phase, the questionnaires
were administered to 400 students in classroom settings by the authors. Thirty eight of
the responses were discarded due to deficiencies. Therefore, the total number of usable
responses was 362. In order to select the entrepreneurially inclined students, the
question “what are you planning to do after graduation?” was asked to the
respondents. The 66 respondents who responded that “I’m planning to form my own
business venture” were accepted as potential entrepreneurs – or those who are
entrepreneurially inclined. Those who responded to this question either as “I’m
planning to work in private sector with a salary” or “I’m planning to work in public
sector with a salary” were classified as non-entrepreneurially inclined. In the next
phase, the entrepreneurial traits of those students inclined to entrepreneurship were
subjected to a comparative analysis with the other students who did not plan to start
their own businesses, and thus were not included in the group of potential
entrepreneurs.
ET Research instrument
48,1 The research instrument was structured into two parts. The first part included
demographic variables and entrepreneurial inclination measures. The second part
included variables to measure tolerance for ambiguity, risk taking propensity, locus of
control, achievement motivation, innovation and self confidence; characteristics which
are believed to discriminate between entrepreneurial and non-entrepreneurial
32 inclination. This part was composed of 40 items with six items for need for
achievement, six items for innovativeness, six items for risk taking propensity, six
items for self-confidence, eight items for locus of control and eight items for tolerance
for ambiguity. Respondents were asked to indicate their degree of agreement or
disagreement with each given statement on a five-point Likert scale. Some statements
were reverse-coded and intermingled with other statements to minimize response set
bias. Each of the six scales was subjected to reliability testing shown in Table I.
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Need for achievement was measured by six items from an adapted version of the
work and family orientation scale that used by Chang et al. (1997). Locus of control
measure used by this study was a subset of Rotter’s (1996) original 29 item I-E scale
that used by Thomas and Mueller (2000). Although alternative locus of control scales
were developed in the literature, Rotter’s I-E scale has been widely used and seems to
continue to dominate as a measure of locus of control in entrepreneurship research. The
items to measure tolerance for ambiguity were from Budner’s (1962) test of intolerance
for ambiguity and MacDonald’s (1970) revision of Rydell’s and Rosen’s (1966) tolerance
for ambiguity scale (Kirton, 1981). Innovativeness was measured by six items adapted
from Jackson Personality Inventory (Jackson 1994) which has been used previously by
Thomas and Mueller (2000). Risk taking propensity and self confidence were measured
using eight items each used by Koh (1996).
For all the scales, responses were coded in a way that higher scores mean higher
innovativeness, greater need for achievement, more internal locus of control, higher
risk taking propensity, greater tolerance for ambiguity and more self-confidence.
Results
Descriptive statistics of samples and variables
The 66 entrepreneurially inclined students include 12 female and 54 male students. The
numbers of female and male students among the 296 students who are not inclined to
entrepreneurship, on the other hand, are 139 and 157, respectively.
One of the questions directed at the students was about the occupations of their
parents, in order to find out if there were any entrepreneurs in their families. Among
the entrepreneurially inclined students, 53 percent had fathers occupied with
independent business. Among those students who did not have such an inclination,
however, this figure is only 19 percent. This finding is notable since it supports the
view that the inclination for entrepreneurship is affected by family culture, for in
Turkish family structure the father is usually seen as a role model. In both groups of
students, the great majority of mothers are not occupied. The rest are either retired or
working as office clerks. This finding can be explained by Turkey’s unique
characteristics such as the significantly low rate of women entrepreneurs, and the fact
that women participate in working life mostly as salaried workers.
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Students Entrepreneurially
Non-inclined Inclined
Variables Mean SD Mean SD 1 2 3 4 5 6
reliabilities of sub-scales
Descriptive statistics,
correlations and
Turkey
33
Table I.
characteristics in
ET Correlation analysis
48,1 In this analysis the dimensions of entrepreneurship (risk taking propensity, innovation,
tolerance for ambiguity, need for achievement, self-confidence and locus of control) are
converted into subscales and the mean, standard deviation, correlation values and
reliability levels are calculated (Table I). All these values demonstrate a meaningful
correlation among the subscales representing the characteristics of entrepreneurship.
34 In Table I, the values in parentheses are reliabilities (Cronbach alphas) of subscales.
All the subscales except the need for achievement have values that are above or close
to the Cronbach alpha level of 0.70.
Hypothesis testing
All of the hypotheses were tested using independent samples t-test in order to
investigate the differences statistically. Based on the results shown in Table I and
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Table II, H1 was accepted, which means there was a significant difference between
entrepreneurially inclined students and those who are not entrepreneurially inclined
with regard to innovativeness. H2 was accepted, which means there was a significant
difference between entrepreneurially inclined students and those who are not
entrepreneurially inclined with regard to need for achievement. H3 was accepted,
which means there was a significant difference between entrepreneurially inclined
students and those who are not entrepreneurially inclined with regard to locus of
control. H4 was accepted, which means there was a significant difference between
entrepreneurially inclined students and those who are not entrepreneurially inclined
with regard to risk taking propensity.
H5 was not accepted, which means there was not a significant difference between
entrepreneurially inclined students and those who are not entrepreneurially inclined
with regard to tolerance for ambiguity. H6 was not accepted, which means there was
not a significant difference between entrepreneurially inclined students and those who
are not entrepreneurially inclined with regard to self-confidence (see Table II).
Discussion
This study used the trait model of entrepreneurship to examine six traits associated
with entrepreneurship, namely need for achievement, locus of control, risk taking
propensity, tolerance for ambiguity, innovativeness and self-confidence. Given that the
six subscales all measure some aspects of entrepreneurship, it was expected that there
would be a degree of interrelatedness among the subscales. The correlation between
subscales was statistically significant as expected.
The tests performed to verify the hypotheses produced results demonstrate that the
students with an inclination for entrepreneurship are more innovative, have more
students in terms of their future employment status. Both these two entrepreneurial
characteristics could also be enhanced in higher education to boost the country’s future
economic viability.
Although a large group of students participated in the study, the number of
students who intended to be entrepreneurs was fairly limited. There can be a number
of reasons for this: First of all, the economic, social and political instability in the
country may lead people to prefer salaried jobs in public or private sectors instead of
running their own business. This tendency is observed amongst the university
students. Besides, lack of sufficient incentives toward entrepreneurship and lack of
sound entrepreneurship education hamper the development of any entrepreneurial
vision of individuals. There can be little doubt that Turkey’s young and dynamic
population represents an important entrepreneurial potential. However, it is not
possible to argue that this potential is well oriented and utilized. With this regard, it is
important that an entrepreneurship policy be developed both for the short and long
term. As this policy is put into practice, entrepreneurship education should be included
as an important component.
In terms of further research, the cross sectional nature of the study may be
considered as a limitation. Particularly, a regular observation throughout the whole
education period of students in universities which offer entrepreneurship courses could
help us gauge the effects of entrepreneurship education on the characteristics of
entrepreneurship. Empirical and conceptual academic studies on entrepreneurship
education would help not only clarify the content and the design of entrepreneurship
education, but also deepen and enrich entrepreneurship discussions in Turkish
academe. For instance, it is possible to suggest that the present study be replicated in a
more comprehensive fashion, covering more students and universities. Furthermore,
the question of whether students in public and private universities differ in terms of
entrepreneurial inclination could be an interesting topic for further research.
The core concern guiding this study was to assess which of the characteristics that
affect an “entrepreneurial” profile are prevalent among the Turkish students. The idea
that the findings of such a study could provide valuable data in the preparation of
educational programs that would be in line with the entrepreneurial characteristics of
the students has been our major incentive. Entrepreneurs are not born, they are made.
Working on this premise, it is critical that developing countries must explore further
the development of entrepreneurial talent and must provide the opportunities for an
ET entrepreneurial class to emerge (Samli, 2002). We suggest that in Turkey a national
48,1 perspective on entrepreneurship education should be developed to encourage more
universities to provide courses on entrepreneurship and offer a major on
entrepreneurship, and, furthermore, to consider founding new institutions to teach
only entrepreneurship.
As we noted above, course content on entrepreneurship generally entails
36 information on the founding and managing of new businesses. However, we
question if enterprise education should be tied to the specifics of starting a business.
There is a strong case to be made that higher education should be seeking to nurture
and develop the entrepreneurial characteristics discussed in this study in all students.
As a country seeking EU membership, Turkey is in need of being more innovative,
more “entrepreneurial” so to speak, if she wishes to raise income per capita and to
decrease the rate of unemployment in line with required economic performance criteria.
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Corresponding author
Yonca Gurol can be contacted at: gurol@yildiz.edu.tr
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