AKSUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

BY: ABEL MENBERU

ADVISOR: Mr. MULU.M

ASSESSMENT OF GRADUATING STUDENTS MOTIVE TOWARDS

ENGAGING IN THEIR OWN BUSINESS (THE CASE OF COLLEGE OF
BUSINESS AND ECONOMICS, AKSUM UNIVERSTY )

A Senior Essay Research submitted to department of management of Aksum

University in partial fulfillment of the requirement for Bachelor of art (BA) in
management

Aksum,ethiopia

January.2017
 TABLE OF CONTENT

Contents Pages

1. INTRODUCTION

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

1.2. Statement of the Problem

1.3 Objective of the Study.....................................................................................

1.3.1. General objective…………………………………………………………..

1.3.2 Specific objective……………………………………………………………

1.4 Research question / hy

1.5. Significance of the Study.................................................................................

1.6. Limitation of the study………………………………………………………

1.7. Scope of the study............................................................................................

1.8 Research methodology .....................................................................................

1.8.1 Research design.....................................................................................

1.8.2 Target group population.........................................................................

1.8.3 Data source.............................................................................................

 1.8.4 Sample size.............................................................................................

1.8.5 Data Analysis and Interpretation ...................................................................

1.9 organization of the paper..................................................................................

2.1. Concept and definition of entrepreneurship............................

2.2. Motivation for starting business..............................................

2.2.1. Pull influence..........................................................................

2.2.2. Push influence........................................................................

2.3. Role of entrepreneurship in economic development...................

2.4. Economic social and political aspects of small business enterprise....

2.4.1. Social idea the equality argument...................................................

2.4.2. Less capital and more labor the employment.....................

.........................

BACK GROUND OF THE STUDY

It is clear that changed are becoming norm rather than exception what was seen as best strategy yesterday
may turn to east in today business environment. It seems risky and erroneous not only to start new
business, but also to run existing business in this UN predicable and changing environment, but also
existing and leman some risk. The researcher motive to conduct this paper to know the students of aksum
University College of business and economics willingness to create new own business at it wills after
them airing vision of this was on which they may full fill their highest potential. Starting and operation
new business involves considerable risk and effort to overcome against cheating something new in
creating and running new business venture the enterers of assume the responsibility, risk for it
development and survival enjoy corresponding reward. Basically it is only in recent year that
entrepreneurship and the role of entrepreneur in entrepreneurship and the role of entrepreneurs in process
of industrialization and economic development has been recognized in both developed and developing
country .(Hailey 2003)

Entrepreneurship a business Leader and the functions performed him/her in relation to that business
entrepreneur ship also the fact that of being an entrepreneur, which can be defined as on who undertake
in notation finance and business in an effort to transformation to economics goods .in their area of
globalization, the pea of growth entrepreneurship has increased in leaps and it has sky as it limit.
(Neeta Baporikar, 2011).

Entrepreneurship has shown drastic change in almost all economics of world providing mankind with
new domain of globalization

It has turned the world a better place of live in (Dawit Arega 2005) in the recent timer a new brand of
corporate entre pruner’s has come into picture since they emerge with in frontiers of an existing
enterprise they are called entrepreneur’s it refers to within big organizations a big and top executive in
talents are encouraging (peter kill by, 1971).

There are money reasons why the researcher select these case area rather than other easer because the
researcher shall A full of interest in order to recognize how graduate students create their own business.
The graduate students must in notate their own occupation by themselves.

Our country Ethiopia expiate more students to be will educated and required by a good education and use
them as a source for production.

1.2 STATEMENT OF THE PROBLEM

In most developing countries where the people growths this greater than the level of economics
development and to economy is manage traditionally and dependent on agriculture there is always in
balance between the number of potential workers and available jobs (jankw, 2009)

The main reasonable development and stability (lute ran word) in addition to puberty most graduating
students Expectation work form government is a major change for developing courtiers. In theory
students decide that they become entrepreneur and the owner of small business but practically it is not
common in developing country. Because of there is attaints for their business that is need for
achievement self-determination, risk taking ability of family background financial problem to start
business and other.(W.Arthur Lewis 1955)

The graduating students didn't want to think the way to start new business ,they have not motivation to
assess conducive environments for business ,because of the countries economy it is difficult to cover or
satisfy the need of all persons .

the economic structure also shows us that enterprinurship is in its infant stage that requires prior and
immediate actions of all stakeholders to make it dynamic for the realization of ethiopian renaissance in
the millennium had there been a good awareness on enterprenursheep leeads whould have handled
differently .(Weretaw Bezabeh Assefa 2010)

Then, those factors are push factors for researcher to decide that creating awareness about the solution of
those problems.

Un employment is one of the development problem that face every developing country in 21stcentury
then , this is at least minimize by expanding small business to employment growth and business from
everywhere.

To contribution of entrepreneur ship and small business to employment growth and sustainable
development is new widely acknowledged. Their development can stress the manufacturing sector and
encourage competition’s (Engle.Wood, 1977).

1.3OBJECTIVE OF THE STUDY

1.3.1 GENERAL OBJECTIVE OF THE STUDY
The general objective of this study is to assess the motive of graduating class students in Aksum
University College of business and economics on creating new business.
1.3.2 SPECIFIC OBJECTIVE OF THE STUDY

The study will be the following specific objective

 To identify the way that graduating students create new business

 To assess conducive environment about creating new business for graduating class students.
 To identify what kind of support is required form government and society.
 To assess the demand of graduating students, who want to employee in organization or
create new business?

1.4 The Research Qestion

In this study the researcher will be try to answer the following questions

* What is the way that graduating students to create new business ?

* What type of environment is comfortable (conducive) to create new business ?

* What kind of support requires from goverent and society ?

* Who want or demand to create new business ?

1.5 significance of the study

The researcher believe that the study will be potential contribution by giving information and
initiating students and professionals at sectionals to dig out more about that problems and to develop
some integration in markets supporting the existing entrepreneurial and small business.

It may serve the society as it motivates students to own the society as it motivates students to own their
business which leads to reeducation of the social burden that is unemployment and its consequences.

Most of the time of graduation class students expects job form government, if this is so, the country
will face unemployment than the student will minimization of unemployment. It will serve as bench
mark for those who are interest to conduct for the study on related

topics.

1.6 scope of the study

It is not simple task to conduct such study in all university of graduation class students. even all collage
of graduating class student all over the countries so this study will be restricte to aksum University
College of business and economics graduating class student motive towards engaging in their own
business .

the time of the study will ristrict 2009 graduating class students of aksum university in college of
business & economics department of
managment,economics,accounting,banking,marketing,tourism,hotel,logistics,co-operative,but it is
necessarily for future graduate students.

1.7METHODOLOGY OF THE STUDY

1.7.1 RESEARCH DESIGN

The researcher will use a descriptive approach and focused on a describing in order to analyze
graduating students motive towards engaging in their own business the case of collage of business
and economics Aksum University.

There for this descriptive statistics will be an important tool to this study result clearness and
consistency.

within the study the researcher will use qualitative and quantitative approaches.that means qualitatiely
the researcher use to know about their ideas of the respondents to create new business.and the
researcher use quantitative data to know the number of students & how many students want to create
new budiness & who are not.

1.7.2 TARGET GROUP / STUDY POPULATION

The target population of the study is 459 graduating students & departments of accounting and finance,
management, marketing ,economics ,banking ,co-operative management logistics ,hotel & tourism
management in the aksum university college of business and economics.

1.7.3 Sample size and technique

The researcher selects Aksum University College of business and economics graduating class
students GC 2009. The analysis bases on stratiified samples taken from total population to give equal
chance to respondents. The researcher uses this method for to collect necessary information for its
simplicity and applicability to the sample element.

The researcher classifie departments based on stratified sampling method that is nine departments of
Economics, management, accounting and fiancé and marketing ,banking,coopetative,logistics,hotel &
tourism management, therefore the total population is 459 graduating student will be incorporate .
 The sample size will be randomly select among heterogeneous population strata. 82 members of the
sample size respondent are presente below.

n = N/1+N(e)➋

n = 459/1+459(0.1)➋

n = 82

Where:-

n= sample size

N= total population

E= level of precession

Source (yemane 1990)

No Department Total student from each Sample size

department

1 Management 24

136=(136÷459)82

2 Acconting 19

104=(104÷459)82

3 Economics 7

38=(38÷459)82
4 Marketing 9

50=(50÷459)82

5 banking 29=(29÷459)82 5

6 hotel managment 22=(22÷459)82 4

7 tourism managment 22=(22÷459)82 4

8 co-opertative managment 22=(22÷459)82 4

9 logistics 36=(36÷459)82 6

total 9 459 82

1..7.4 DATA SOURCE AND COLLECTION METHODS

The researcher will use primary data source of information since it have the following merit.

Primary data will collecte through distributing questioner to the respondent and source from distributing
both open ended and close ended questions to them. Open ended question will invite them to express
their feeling and open-ended questions will provide alternatives to choose.
1.7.5 DATA PRESENTATION AND ANALYSIS

The data collection process and analysis using different statistical method will be employ by researcher
since will be inolves describing, summarizing and presenting data using tables, frequency and percentag.

1.8 ORGANIZATION OF THE PAPER

Their researcher will organize nto five chapters. The first chapter deals with the introduction part which
consist of back ground of the study statement of the problem, research question ,objective of the study
and scope of the study . The secondary chapter deals with literature review. The third chapter deals with
methodology of the study ,The fourth chapter deals with data presentation and analysis this is the biggest
and an important chapter of the study. The fiveth chapter deals about conclusion and recommendation
and summary of finding.

1.9 LIMITATION OF THE STUDY

It is known that any researcher may face constraints. While conducting this study the researcher may face
material constraints, unwillingness of the respondants to answer questions, sample size limitation and
shortage of experience limit the generalization of the current study to all graduating students of Adigrat
University college business and economics.

2.1CONCEPT AND DEFINITION OF ENTREPRENEURSHIP

Entrepreneurship is the process of identifying devoting and bringing a vision to life. The vision may be
and innovative idea, an opportunity, or simple a better way to-do something.

The result of this process is the creation of a new venture, formed under condition of risk and
considerable uncertainty. (Dr.R.K SINGAL, 2007).

An entrepreneur is someone who always searches for change respond to it and exploits it as an
opportunity. Entrepreneur are successful to the extent they define risk and confine risk. The
entrepreneur sees are an opportunity for a new product or service .a new approach, a new. However, the
entrepreneur al.(MARY COULTER ,2006)
So does something about what is seen. The entrepreneur seeks to have an impact to the system with his
/her idea, product or service more over Joseph is an innovator who brings economic development through
new combination of factor of production. In other word a person who introduce innovative change is an
entrepreneur and he is an integral part entrepreneur of economic growth (hailay G/tensae 2003).

2.2 MOTIVATION FOR STARTING A BUSINESS

Some of the reasons for the difficulties in classifying those involving in small business management are
the wide verity of motives for their involvement is small business firms. The reasons for small firm
formation can be divided between pull and push influence.(Hailay G/tensae 2003)

2.2.1 PULL IN FLUNCE

Some individual are attached rewards small business owner ship by positive motive such as specific idea
which they are convinced, will work pull motive include

A study of female entrepreneur in Britten found that women were motivated particularly by the need for
autonomy which had been frustrated by the individuals prior training and back ground.

2.2.2 PUSH INFLUENCE

Many people are pushed into founding a new enterprise by a verity of factor including:

A/ REDUNDANCY

This has provide a considerable push in to entrepreneur ship particularly when accompanied by a general
hand shake in locality where other employment possibilities are law.

B/ UN EMPLOYEMENT

Job in security and unemployment varies in significance by region and prevailing economic climate.

C/ BUSINESS IDEOLOGY

A business ideology is defined as a system of belief about how are conduct an enterprise.

2.3 ROLE OF ENTREPRENEUR SHIP IN ECONOMIC DEVELOPMENT

The roles of entrepreneur ship in economic development has a given major thrust t o t he development of
entrepreneur ship thus are

1. Employment generation

An entrepreneur provides employment to himself as well as is an agent for direct and indirect
employment to others.

Hi is therefore in submental in solving employment problem of the country.

2 Entrepreneurial culture:
Proper industrial development and growth is possible only by improving the industrial culture in
the society.
3 .Foreign exchange

High quality good and service exported to other country there by earning foreign exchange for the nation

4 .Alternative profession
An entrepreneur plays the role model for other people to start b their business and shows the way for
alternative profession and means of earning .And others like compitative price,development of rural &
backwired areas ,diversification of management & distribution of ownership of business are some of
the role of enterprinurship in economic developments (Sangram Keshari 2005)

TIME AND BUDGET SCHEDULE

TIME PLAN/WORK PLAN

Activity that Month of tbe List
performed

OCT Nov Dec JanU Feb March April May Jun

Topic selection

Proposal
development

Review Literature

Data collection

Data Analysis &

data presentation

report writing

Report submission
Presentation of the
research

The Budget Schedule

No Necessarily material Quantity Unit cost Total cost

that consuming in the
research

1 Paper for : 400 0,50cent 200

Proposal , research,

questionnaire .

2 Ruler 1 5 5

3 pen 5 5 25

4 for typing & printing 50 5 250

5 transportation -- -- --

6 others expense 10 5 50

total 466 20;50 530

REFERENCE

- DR .R.K SINGAL - Enterprenursheep development management 2nd edition

- ENGLE WOOD (1997) - Enterpreniursheep asmall business 6th edition USA.

- HAILAY GEBRE TENSAIE (2003) - Small business management 10th edition

mekele ethiopia

- MARY COULTER - Enterprenursheep in action ,New delhi 2005.

- NEETA BAPIORIKAR (2011) - Enterprenursheep development

- SANGRAM KESHARI - Fundamental of enterprenursheep practices hall of indea
private limited ,,New delhi 2005.

- WERTAW BEZABEH - The dynamics of enterprenursheep development & the

ethiopiaian prospectives A.A ,,August 2003.