Determinants of Entrepreneurial Tendencies

By:

Anthony Ly B. Dagang, MBA

anthzila@gmail.com

The next author

authoremail@yahoo.com

Abstract

This study is established on the assumption that personal, motivation and school factors
influence students’ entrepreneurial tendencies. One-hundred ten (110) fourth year students currently
enrolled in a Business Course in Lourdes College, Cagayan De Oro City, Southern Philippines
participated in this study. Overall, motivation and school factors have high extent of influence on
entrepreneurial tendency as perceived by the respondents. Using Multiple Linear Regression to
determine which of the motivation and school factors have significant influence on the respondents’
entrepreneurial tendencies, the data revealed that motivation have significant influence. Both
genders of all ages view entrepreneurship as a pathway to financial security, autonomy, satisfaction
and enjoyment; and expressing creativity and ingenuity. The Millennials, where the age category the
respondents belong where found to be associated with positive entrepreneurial tendencies due to
characteristics common to them. School and experience yielded insignificant influence. This
indicates that the respondents, regardless of experience or knowledge, are leaning towards becoming
an entrepreneur when highly motivated and aware of the factors they think are of importance.

Keywords: Entrepreneurship, Education, Tendencies, Millennials

Introduction

How can a person be inclined towards entrepreneurship? And why do some entrepreneurs
succeed and others do not? It is a known fact that behind every successful entrepreneur is a myriad
of failures. Opportunities missed, investments that have gone wrong and many others. But instead
of ceasing, an entrepreneur views them as part of the process to succeed. An entrepreneur is a person
who, rather working as an employee, starts on his own or with partners any economic activity, taking
financial risks in order to achieve his goals. Starting and maintaining a business would be a daring
task. Many scholars agree that one should have the necessary skills and mindset to sustain the drive
to meet the challenge. Volkman (2007) stressed that no one is born an entrepreneur but one can
develop through education and experience. For Segal, Borgia, & Schoenfeld (2005), being an
entrepreneur poses many challenges such as financial and market risks. One would question: What
drives them to take the risk, the uncertainty and the daunting task ahead in choosing this path? A
person’s character play an important role to becoming a successful entrepreneur and no matter how
difficult the challenge would be, it takes character and attitude to face the challenges ahead.(Gibson,
Harris, & Iii, 2008; Varadarajan Sowmya, Majumdar, & Gallant, 2010).

While many authors agree on the positive influence of attitude to entrepreneurial tendencies,
education has also a significant role (Toledano & Urbano, 2008). This is confirmed by Roberts &
Eesley (2011) of the Massachusetts Institute of Technology (MIT) Sloan School of Management.
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According to the study, students and alumni of MIT established nearly 900 new ventures annually
and over half of all these companies are formed within 10 years of the time the founder graduates.
This creates employment for 3.3 million people and generating annual world revenues of nearly $2
trillion. These numbers indicate a very powerful correlation that academic institutions can contribute
to development of entrepreneurial attitude of individuals. In Mindanao, Cagayan De Oro City
houses higher education institutions (HEIs) that offer business and entrepreneurship courses. These
institutions have innovative programs that aims to deliver quality entrepreneurship education and
attract prospects. Moreover, through its program Go Negosyo, DTI also partnered with experts in the
academe to develop budding entrepreneurs.

Entrepreneurship drives many nation’s economies, innovation, and competitiveness

(Kuratko, 2013). Its role in creating jobs and contribution to economic growth is universally
recognized. The city of Cagayan De Oro is a promising business hub. On Philippine
Competitiveness in 2016, the city ranked 7 th in the country on Cities and Municipalities Competitive
Index on economic dynamism, government efficiency and infrastructure. This recognition opens the
door to many entrepreneurs and investors. Moreover, the 27th ASEAN Summit held in Kuala
Lumpur, Malaysia in November 2015 also laid down the foundation by establishing the ASEAN
Economic Community (AEC). The goal is to create a single, roadblock-free market. This will create
more opportunities for employment and economic growth, which the Philippines can freely trade in
the ASEAN market (Retail Asia, 2015). Developing entrepreneurial minds is a challenge that would
respond to this emerging trend and if this trend would become an opportunity rather than a necessity.

This study is established on the assumption that personal, motivation and school factors
influence student’s entrepreneurial tendencies. Using motivation and school factors as independent
variables, this study will examine the interplay of these variables on the extent of its influence on
entrepreneurial tendencies, which is the dependent variable. Determining these factors will help the
academe understand how students develop entrepreneurial attitude and therefore identify and create
programs to answer this need. This research is sought to answer the following:

1. What is the profile of the respondents in terms of:

a. Gender
b. Age Group
c. Course
d. Family and Personal Entrepreneurship Experience
2. To what extent do motivation and school factors influence entrepreneurial tendencies?
3. What is the perceived entrepreneurial tendency of the students?
4. Which of the independent variables (motivation, school) influence entrepreneurial
tendencies?
Framework of the Study
This study is anchored on McClelland's Human Motivation Theory (MHMT). The theory
states that “every person has one of three main driving motivators: the needs for achievement,
affiliation, or power. These motivators are not inherent; we develop them through our culture and life
experiences.” While many studies refer to Ajzen’s Theory of Planned Behavior to predict
Entrepreneurial Intentions, this study will look into how McClelland’s Theory influence
entrepreneurial tendencies. McClelland argues that not only education, experience and prior business
experience can influence entrepreneurial tendencies, but also a person’ personality, motivation and
tendency to act on things that one believes of importance.

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Personal Factors

Existing studies have argued that gender and age can affect entrepreneurial tendency. For
Danes et al. (2008), gender can influence a person’s action. A study by Sánchez & Hernández-
sánchez ( 2014) sampled of 535 women and 283 men with multivariate analysis. The results
revealed that gender has significant differences in entrepreneurial tendency. Men are more efficient
and are being prone to doing in starting a new venture than women. The study of Minniti & Nardone
(2007) reveals that differences in perception of entrepreneurship exist in both men and women such
as self-esteem, fear of failure and to a lesser degree, perception of opportunities. Men are more risk
takers than women. Women are risk averse. However it was concluded that the relationship between
probability of starting a business and other variables such as age, income, employment status and
education, does not depend on gender. Both men and women, has a high probability to start a
business regardless of differences in perception. Differences in gender may exist in in the context of
motivation.

Entrepreneurial tendency can also be attributed to age. A study by Filho, Nonato, Leal,
Ricardo, & Rocha (2014) found that the higher the age the greater his/her level of entrepreneurial
behavioral characteristics. Tendencies can also can also be attributed to the generation where the
person is born. Recent studies point to today’s Millennials, who found to have significant
characteristics related to this study. Millennials, also referred as Generation Y is made up of people
born somewhere between 1982 and 1999 (Twenge, Campbell, Hoffman, Lance, & Lance, 2010).
Independence and autonomy seems to be the blueprint of this generation, which is a common
characteristic of people inclined towards entrepreneurship.

Prior exposure to entrepreneurship, especially growing up in an entrepreneurial family,

significantly influences attitudes and motivation toward entrepreneurship (Carr, J. C., Sequeira,
2007; Tarling, Jones, & Murphy, 2016). A greater sense of achievement, innovation, self-confidence,
personal control is developed as a result of interacting and working within the business (Danes et al.,
2008; Harris & Gibson, 2008). In Filipino households, strong family ties in households tend to
provide a more cohesive value structures among entrepreneurially inclined families (Uy, 2011).
Their level of work values and commitment also influence children’s characteristics and work
behavior (Jakopec, Miljkovi Krecar, & Susanj, 2013). Therefore, children who grow up in
entrepreneur families have the advantage in developing entrepreneurial characteristics and tendencies
(Zellweger, Sieger, & Halter, 2011).

Motivation Factors

Human beings are emotional and are driven by motivations that respond to the internal and
external needs. When a person is motivated, the inclination towards achieving a goal increases
(Zellweger et al., 2011). Stefanovic et al. (2010) found four motivational factors from entrepreneurs:
greater business achievement, independence, intrinsic factor and job security. He also found that
motivation from developing countries is different from developed countries. Developing countries
are motivated by necessity rather than opportunity. A study Dawson & Henley (2009) proves this
claim that opportunity and necessity are motivating factors for an entrepreneur. Entrepreneurship by
necessity and opportunity have different entrepreneurship motivation (Grayson, College, Gray, &
Oklahoma, 2015). Entrepreneurs by opportunity is motivated by perceived benefits of independence,
wealth, satisfaction and personal or family motivations. While these individuals are motivated by the
need to achieve, necessity is the opposite. Entrepreneurs by necessity are driven by survival. They
are concerned with avoiding failure and are pushed into self-employment because the society have no
opportunity for better economy such as availability of jobs, better government services and social
3
welfare (Carsrud & Brännback, 2011). A study by Uy (2011) in the Philippines also yielded the same
results. Filipino entrepreneurs are more personal and individualistic in approach and are motivated
by a strong desire to uplift their economic condition.

For Liñán & Chen (2009), entrepreneurial tendency is predicted by personal motivation and
attitude, subjective norms and perceived behavioral control. Some entrepreneurs are motivated by
their feeling of enjoyment, to be the boss rather than the employee, to be recognized for one’s
contribution, easy access to licenses and permits and expression of one’s creativity and ingenuity
(Diaconu & Duţu, 2015; Grayson et al., 2015; Nguyen, 2017).

School Factors

It has been proven that career identity forms under the influence of early school and work
related experiences. People who join programs related to entrepreneurship tend to have higher
entrepreneurial inclination and increases their willingness to consider entrepreneurship as a career
path (Lange, Marram, & Bygrave, 2011; Solesvik, 2013). The right combination of infrastructure,
pedagogies and support is crucial to develop and enhance entrepreneurial inclinations (Diaconu &
Duţu, 2015). Many schools have different strategies to make their entrepreneurship programs
successful. In a certain type of scope, these programs provides opportunities to increase general
entrepreneurial skills and indicates to a certain extent that graduates tend to set up their own business
in the future. (Anne Støren, 2014).

School support had positive influence on entrepreneurial tendencies of students. (Co,

Mitchell, Co, & Mitchell, 2010; Schwarz, Wdowiak, Almer-jarz, & Breitenecker, 2009). Othman,
Hashim, & Ab Wahid (2012) argued students should be able to carry out entrepreneurial activities
freely, without excessive restrictions. Even how supportive teachers are, entrepreneurial activities fail
to influence students positively because of these limitations. Another way is to foster a supportive
environment by offering resources such as a network of individuals who can provide specific
expertise in areas such as marketing or accounting, the inclusion of role models, and the provision of
one-to-one support. This support may give some people the confidence to initiate their own business
venture (Kraaijenbrink, Bos, & Groen, 2010).

The design of curriculum is also critical in the effective delivery of entrepreneurship

education. Learning styles of students, teacher and teacher preparation, evaluation practices,
instructional and illustrative material should be considered. (Diaconu & Duţu, 2015). Also,
awareness of entrepreneurship and formation of entrepreneurial attitude should be integrated in the
curriculum. This can be done by initiating awareness seminars, current trends on entrepreneurship
and, financial and market updates. This can be a very important practice to increase perceived
attraction towards entrepreneurship. (Liñán, Rodríguez-cohard, & Rueda-cantuche, 2011).

Among other things, attention is also given to teachers’ competence in entrepreneurship

education. For Arasti (2012), teaching is effective when it is based from a well-designed curriculum
that focuses on systematic, pedagogy-based course of study. For Blank (2012), students in
entrepreneurship should spend most of their time “doing”. Students should be engaged, active rather
than passive such as conducting feasibility studies, developing business plans, the opportunity for
students to set up their mini-companies inside the campus, business simulations, case studies, guest
speakers, and meaningful apprenticeships.

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 While many authors found an academic institution’s positive role in developing
entrepreneurial tendencies, another point of view is also presented for those who have no formal
education. Manny Aligada, head of Corporate and SME Segments in Globe Business Philippines as
cited by Inquirer in 2012 have found interesting characteristics on Filipino entrepreneurs. It revealed
that “practicality and common sense” makes Filipino entrepreneurs successful, not necessarily good
education or impressive academic record. Some didn’t even finish high school or college (Inquirer,
2012). This finding confirms the study by Dawson & Henley (2009), which reveals how having no
formal education can motivate a person to pursue entrepreneurship. Individuals without formal
education are more likely to be more enterprising compared to people who have formal education.
Because companies prefer people who have degrees, people who lack qualifications are more likely
to enter into self-employment because lesser job opportunities and wages are available for them.

Very successful entrepreneurs, mostly billionaires did not finish high school or college.
Henry Ford, John Rockefeller, Amancio Ortega, Richard Branson, Bill Gates, Steve Jobs, Mark
Zuckerberg, etc. These people did innovations that changed the world. According to Forbes as cited
by Kochar (2016), a remarkable number of 63 out of 400 richest entrepreneurs were college
dropouts. The main point is that experience can contribute to entrepreneurial attitude. While still at
Harvard, Gates and Zuckerberg are already working with their companies from the very beginning.
Amancio Ortega left school and began working in a local shop and Henry Ford left school to become
an apprentice (Daisyme, 2015). What these people have in common? They all have taken the path to
experience entrepreneurship first prior to becoming what they are now.

Entrepreneurial Tendencies

In Social psychology, tendency is known as a predictor of a behavior. It was Bird (1998),

who first argued that entrepreneurial tendency can predict entrepreneurial behavior. He stressed that
a tendency is a state of mind, which influence an individual’s attention, experience and action to
achieve something. Every person is unique and therefore the state of mind varies. The approach to
measuring entrepreneurial tendency can be achieved by identifying key characteristics of
entrepreneurial people. Many authors have found similar traits: risk taking tolerance, need for
achievement, desire for independence, internal locus of control and self-efficacy. (Ahmetoglu, 2014;
Dinis & Rodrigues, 2013; Franke, 2003; Nishantha, 2009; Toledano & Urbano, 2008; Uddin & Bose,
2012).

Entrepreneurs are risk-takers. They are not afraid to fail and work best when some challenge
is involved such as financial, market, management and human resources risks. (Fuller, Spears, &
Parker, 2010). Psychologist Albert Bandura as cited by Rantanen (2013) has defined self-efficacy as
“one's belief in one's ability to succeed in specific situations or accomplish a task”. People with high
sense of self efficacy value goals more than unpleasantries. When they set goals, they make sure to
attain them. Self-efficacy expectation concerns how well people think they can cope with the duties
and responsibilities of entrepreneurship. Because of this, successful entrepreneurs have strong sense
of self-confidence. The study by Franke (2003) revealed that the impact of tendency towards
entrepreneurship might be linked to internal locus of control. He argued that people who chose
entrepreneurial path are more motivated and can manage risks because they believe they can succeed.

Need for achievement refers to an individual's desire for significant accomplishment,

mastering of skills, control, or high standards (McCelland, 1987). A study by Collins, Hanges, &
Locke (2004) stressed that achievement motivation was significantly correlated with both choice of
an entrepreneurial career and entrepreneurial performance. Filho et al. (2014) argued that people
who are motivated by achievement has a strong inclination to take responsibility and face calculated
5
risks in the search of success and recognition, which is a strong trait of many entrepreneurs. They set
measurable standards of high performance when given a responsibility. They enjoy situations in
which they can use their abilities. They are determined to ensure goals are met even when
difficulties arise.

Desire for independence means that people display strong desire for independence and
freedom. Generally, individuals who possess this trait will seek for careers with more freedom (Lee
& Wong, 2004) and increases tendencies towards entrepreneurship. People with desire for
independence have a sense of initiative that makes them want to use their own abilities to the greatest
extent possible. They are willing to work long, hard hours to make their business succeed.   They see
the opportunities that others don’t see and they have the tendency to do things autonomously. The
desire for independence and self-direction has been long considered as a predictor of successful ‘fit’
of a person with an entrepreneurial tendency.(Yoon, Tong, & Loy, 2011).

Internal locus of control refers to the extent to which people believe they can control events
that affect them. People who have strong belief that their outcome is determined by the choices they
make are more entrepreneurial compared to those who lack faith. They have strong conviction that
their actions can control sales, market and customer satisfaction. People’s thoughts control their
actions and that they can positively affect their beliefs, motivation and by extension their
performance. Thus, it makes these people opportunistic, seeking and taking advantage of
opportunities (Cardon, 2010). Fuller et al.(2010) found that there is significant relation between risk
taking propensity and internal locus of control. The more risk taker a person is, the higher his belief
to succeed.

Schematic Presentation of the Study

Independent Dependent

Personal Factors
Gender
Age
Family/Personal
Entrepreneurship
Experience

Motivation Factors Entrepreneurial

Tendencies

School Factors
Teachers
Facilities
Curriculum

Methods

This descriptive, correlational study involved purposively sampled one-hundred ten (110) 4 th
year students currently enrolled in a business related course at Lourdes College Cagayan De Oro
6
City. The reason for choosing 4 th year students as respondents is that they have enough exposure to
entrepreneurship and have taken subjects related to entrepreneurship. Students with much exposure
have different perceptions compared to students who are not yet exposed (Co et al., 2010; Nguyen,
2017; Segumpan, Soraya, & Zahari, 2012). Measuring student’s perception of the support they
receive is a practice that many successful schools do (Botsaris & Vamvaka, 2016; Saeed, Yousafzai,
& Yani-de-soriano, 2013). Kraaijenbrink, Bos, & Groen(2010) argued that by gauging student’s
perception, schools can improve their programs. This allows schools to understand the extent of such
support and its impact on student development.

The respondents were given a researcher-constructed survey questionnaire. A rate in a scale

of 6 (6 – Very High Extent, 5 – High Extent, 4 – Moderate Extent, 3 – Low Extent, 2 – Very Low
Extent, and 1 – No Extent) to measure the identified motivation and school factors in terms of the
extent to which they influenced entrepreneurial tendencies. A rate in a scale of 4 (4 – Strongly agree,
Agree – 3, 2 – Disagree, 1 – Strongly Disagree) is given to measure the respondents’ perceived
entrepreneurial tendencies. Prior to data gathering, a reliability test was conducted to 30 respondents
using Cronbach Alpha. George & Mallery (2010) as cited by Cinches, Russell, Chavez, & Ortiz
(2015) stated that reliable scales must have values between 0.70 to 0.90. Motivation factors resulted
to a reliability of 0.757, School Factors to 0.930 and Entrepreneurial Tendencies to 0.720. This
means the survey instrument is reliable. A reliability test was done again after the final data
gathering with 110 respondents, which resulted to a more reliable results: Motivation Factors –
0.882, School Factors – 0.935 and Entrepreneurial Tendencies – 0.868.

Descriptive statistics such as frequency and percentage were used to profile the respondents.
Mean was used to determine the extent of influence the factors had on the respondents’
entrepreneurial tendencies. T-Test and ANOVA was used to test the significant differences on
motivation, school factors and entrepreneurial tendencies when grouped according to gender, age,
family and personal entrepreneurship experience. Multiple Regression was applied to determine the
independent variables (motivation and school factors) have significant influence on the dependent
variable (entrepreneurial tendencies).

Results and Discussion

Findings of the study are presented according to the order of the specific objectives of the
study. The textual element of this section is preceded by a tabular presentation of data.

Respondent’s Profile

Table 1. Frequency and percentage distribution of the respondents’ profile

Gender F %
Male 34 31%
Female 76 69%
Total 110 100%
Age
16 to 18 15.0 15%
19 to 21 59.0 59%

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 22 and above 26.0 24%

Total 110 100%

Course
HRM 57 52%
BSBA 44 40%
Accountancy 9 8%
Total 110 100%
Family Entrepreneurship Experience
Yes 48 44%
No 62 56%
Total 110 100%
Personal Entrepreneurship Experience
Yes 74 67%
No 36 33%
Total 110 100%

Table 1 shows the distribution of the respondents according to their demographic

characteristics. As to gender, majority of the respondents were female (69%). In terms of students’
course, of highest percentage are HRM (57%) followed by BSBA (40%) and Accountancy (8%).

In terms of age, majority of the respondents are in the category of 19 to 21 (59%), followed
by 22 and above (24%) and 16 to 18 (15%). Majority (67%) of the respondents said they have
experience in enterprising activity even most (62%) of their family are not entrepreneurs.

The Extent of Influence of Motivation on Respondents’ Entrepreneurial Tendencies

Table 2. Frequency, percentage and mean distribution of the

Respondents in terms of Motivation Factors

Range Pt. Value Description F %

5.5 to 6 6 Very high extent 16 14.5
4.5 to 5.49 5 High extent 75 68.2
3.5 to 4.49 4 Moderate extent 16 14.5
2.5 to 3.49 3 Low extent 3 2.7
1.50 to 2.49 2 Very low extent 0 0.0

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 1 to 1.49 1 No extent 0 0.0
Total   110 100.0
Mean 4.95
Description High Extent
Std. Deviation 0.633

No Indicators Mean SD Description

11 Desire to give financial security to my family 5.48 .700 High extent
6 I want to create something that is meaningful and valuable 5.23 .853 High extent
1 It gives me more income 5.20 .810 High extent
12 It gives me personal satisfaction and enjoyment 5.18 .837 High extent
19 It increases chances to achieve my personal needs and 5.11 .881 High extent
desires
5 Many opportunities are open for entrepreneurship 5.11 .839 High extent
8 Desire to do something new 5.10 .823 High extent
10 Contribute to the good of the society 5.07 .821 High extent
2 I want to be the boss rather than the employee 5.07 1.011 High extent
7 Express one’s creativity and ingenuity 4.99 .893 High extent
4 Work in my own hours and set my own goals 4.92 1.102 High extent
9 Be recognized for one’s contribution 4.89 1.017 High extent
13 A promising demand of a certain product 4.85 .869 High extent
3 I like to work with others, being in a team 4.76 1.013 High extent
15 Availability of products, supplies and raw materials 4.69 .775 High extent
14 Easy access and process to business permits and licenses 4.51 .955 High extent
18 I want to get away with the demands of a traditional work 4.41 1.111 Moderate extent
16 Parents and family members are in business and serve as 4.36 1.318 Moderate extent
role model
17 Parents wants me to be the successor of the family owned 4.02 1.585 Moderate extent
business

Table 2 shows the frequency, percentage and mean distribution of motivation factor’s extent
of influence on respondents’ entrepreneurial tendency. Majority (68.2%) said that motivation
9
influence to a high extent their tendencies towards entrepreneurship while very few (2.7%) are
influenced to a very low extent.
Among the motivation factors, the desire to give financial security to their family (5.48),
influence the most the participant’s entrepreneurial tendencies, followed closely by the need to create
something that is meaningful and valuable (5.23), the belief that entrepreneurship gives more income
(5.20), personal satisfaction and enjoyment (5.18), increases chances to achieve personal needs and
desires (5.11), the belief that many opportunities are open (5.11), the desire to do something new
(5.10), to contribute to the good of the society (5.07) and the desire to be the boss rather than the
employee (5.07).
For Filipinos, the desire to give financial security is one of the main reasons why they enter
entrepreneurship. Uy (2011) stressed that Filipinos are motivated by a strong desire to improve their
financial well-being, which the country’s economic condition bear weight on a person’s decision to
choose self-employment. Stefanovic et al. (2010) proved that motivation from developing countries
is different from developed countries. The Philippines is a developing country. When employment
opportunities are not available, entrepreneurship is the only option to survive. A person, when
motivated by financial security and increase in income, is driven for survival. Necessity
entrepreneurship comes in (Grayson et al., 2015). Because Filipinos value relationships and have
strong family ties, they work even sacrificing personal conveniences in favor of their love ones.
Findings by Dawson & Henley (2009) also yielded the same results. It shows that opportunity and
necessity are motivating factors for a person to enter into entrepreneurship.
While many authors agree on the positive extent of the parent’s role in molding and
influencing their sibling’s entrepreneurial tendencies, this study revealed otherwise. Studies
discussed in the framework mentioned the significance of family’s early exposure to
entrepreneurship and is found to have an influence on their children’s entrepreneurial tendencies
(Carr, J. C., Sequeira, 2007; Harris & Gibson, 2008; Jakopec et al., 2013; Tarling et al., 2016).
Since most of the respondents’ family have no prior experience in business; parent’s influence,
whether they are in business and serve as a role model (4.36) or want their children to be the
successor of the family business (4.02) results to a moderate extent.
Overall, motivation factors have a high extent of influence (4.89) on the respondents’
inclination towards entrepreneurship. This implies that students when highly motivated are likely to
be enterprising.

The Extent of School Factors that Influence Participant’s Entrepreneurial Tendencies

Table 3. Frequency, percentage and mean distribution of School Factors

Range Pt. Value Description F %

5.5 to 6 6 Very high extent 11 10.0
4.5 to 5.49 5 High extent 68 61.8
3.5 to 4.49 4 Moderate extent 29 26.4

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 2.5 to 3.49 3 Low extent 2 1.8
1.50 to 2.49 2 Very low extent 0 0.0
1 to 1.49 1 No extent 0 0.0
 Total   110 100.0
Mean 4.80
Description High Extent
Std Deviation 0.632

  Indicators
No Teachers Mean   SD Description 
o
4 Motivates and guides students in their chosen career 5.06 0.849 High extent
1 Gives encouragement to students to pursue entrep… 4.95 0.882 High extent
5 Allows students to work collaboratively 4.94 0.707 High extent
3 Are knowledgeable in their field of expertise 4.86 0.893 High extent
6 Gives consultation to students who need help 4.85 0.876 High extent
7 Requires students for entrepreneurship activities 4.77 0.925 High extent
2 Gives concrete examples related to the topic at hand 4.75 0.872 High extent
  Mean 4.88   High extent
  Facilities and support      
14 Promotes culture of openness, collaboration and teamwork 4.81 0.943 High extent
8 Provides sufficient books and resources to support learning 4.75 0.999 High extent

12 Gives opportunity for exposure to different business 4.58 1.044 High extent
establishments
11 Offers programs that provide a link between school and 4.57 0.962 High extent
industry
13 Allows easy access and use of laboratories 4.57 1.104 High extent
9 Provides venues for entrepreneurship activities 4.53 1.02 High extent
10 Allows students to set-up their mini-companies inside the 4.34 1.273 High extent
campus
  Mean 4.59   High extent
11
  Curriculum     High extent
17 Provides internship activities related to the chosen field 4.99 0.84 High extent
20 Promotes awareness on real-world trends and events 4.98 0.878 High extent
19 Provides ideas on how to start a business 4.95 0.962 High extent
21 Develops creativity and innovation 4.93 0.885 High extent
18 Raises student’s awareness of business management and 4.85 0.937 High extent
planning principles and practices
15 Requires student projects related to entrepreneurship 4.83 0.897 High extent
16 Gives opportunity for experts from the business world to 4.76 0.898 High extent
visit and share experience
  Mean 4.9   High extent
  Overall Mean 4.8   High extent

Table 3 shows the frequency, percentage and mean distribution of the school factors.
Majority (68%) of the respondents said that school factors influence to a high extent their
entrepreneurial tendencies, followed by a moderate extent of 29%. Very few (1.8%) said
entrepreneurial tendencies are influenced by these factors.
Furthermore, results reveal that teachers, facilities and support, and curriculum influence to a
high extent (4.80) the participant’s entrepreneurial tendencies. Among the School Factors,
Curriculum (4.9) influences the most the respondents’ inclination towards entrepreneurship, followed
by Teachers (4.88) and Facilities and Support (4.59).

Many authors confirm the influence of school factors on students’ entrepreneurial tendencies
(Varadarajan Sowmya et al., 2010). Schools must use the right combination of infrastructure,
pedagogies and support to enhance entrepreneurial tendencies. The design of curriculum is critical
in the effective delivery of entrepreneurship education such as learning styles of students, teacher and
teacher preparation, evaluation practices, instructional and illustrative material should be considered.
(Diaconu & Duţu, 2015). A teacher’s competence is necessary to achieve student’s attitude
formation and should be the person to foster the interest, mindset and attitude of students (Othman,
Hashim, & Ab Wahid, 2012; Ylinen (2011). Therefore, teacher must be the first to demonstrate
entrepreneurial thinking, innovativeness and creativity. On the other hand, facilities and support can
also foster the entrepreneurial culture to students (Co et al., 2010; Schwarz et al., 2009).

Overall, school factors have a high extent (4.80) of influence on the respondents’ inclination
towards entrepreneurship. This indicates that students who took entrepreneurship programs are to a
high extent their entrepreneurial tendencies are positive.

Respondent’s Entrepreneurial Tendencies

Table 4. Frequency, percentage and mean distribution of Entrepreneurial Tendencies

12
 Range Pt. Value Description F %

3.5 to 4 4 Strongly agree 40 36.4

2.5 to 3.49 3 Agree 69 62.7
1.5 to 2.49 2 Disagree 1 0.9
1 to 1.49 1 Strong disagree 0 0
 Total   110 100.0
Mean 3.35
Description Agree
Std. Deviation 0.499

No Indicators Mean SD Description

Risk Taking
1 I like to test boundaries and get into areas where few have 3.25 .593 Agree
worked before
2 I accept that financial and market risk is part of the game 3.48 .586 Agree
3 I accept that things don’t always go according to what is 3.42 .655 Agree
planned
Self-Efficacy
4 I can cope well with different duties and responsibilities 3.25 .578 Agree
5 I value goals more than unpleasantries 3.40 .578 Agree
6 I believe in my ability to succeed in any task 3.48 .537 Agree
Need for achievement
7 I set measurable standards of high performance when given a 3.35 .566 Agree
responsibility
8 I enjoy situations which I can use my abilities 3.45 .599 Agree
9 I am determined to meet the goals even difficulties arise 3.40 .562 Agree
Need for Independence/Autonomy
10 I have strong desire for independence and freedom 3.35 .615 Agree
11 I can work long hours to finish a task 3.24 .605 Agree
12 I want to be the leader, preferring to be in charge and dislike 2.93 .809 Agree
taking orders

13
 Internal Locus of Control
13 I have strong belief that my choices can control sales, market 3.18 .609 Agree
and customer satisfaction
14 Success is based upon how much effort and intensity I put in 3.46 .585 Agree
15 I am opportunistic, seeking and taking advantage of 3.39 .679 Agree
opportunities

Table 4 shows frequency, percentage and mean distribution of the respondents’ assessment
on their entrepreneurial tendencies. Majority (62.7%) of the respondents agree to have
entrepreneurial tendencies, followed by strongly agree (40%) and Disagree (0.9%). Overall,
respondents agree (3.35) that the factors risk taking, self-efficacy, need for achievement, the need for
independence and autonomy, and internal locus of control are tendencies inherent of people inclined
towards entrepreneurship. This implies that the respondents are potential entrepreneurs.

Many studies confirmed that risk taking propensity, self-efficacy, need for achievement, need
for autonomy or independence and internal locus of control as determinants of a person’s tendency
towards entrepreneurship. A person’s entrepreneurial traits can be a measurement to predict
inclination towards entrepreneurship. Success does not solely depend on these factors. Other factors
such as socio-economic, government support, financial and market factors can influence
entrepreneurial success (Franke, 2003; Dinis & Rodrigues, 2013; Nishantha, 2009; Toledano &
Urbano, 2008; Uddin & Bose, 2012; and Ahmetoglu, 2014).

The relationship between Motivation, School Factors and Entrepreneurial Tendencies

Table 5. Correlation between Motivation, School and Entrepreneurial Tendencies

  Motivation School Tendencies
Motivation Factors Pearson Correlation 1 .362** .410**
Sig. (2-tailed)   .000 .000
Covariance .401 .145 .130
School Factors Pearson Correlation .362** 1 .256**
Sig. (2-tailed) .000   .007
Covariance .145 .400 .081
Entrepreneurial Pearson Correlation .410** .256** 1
Tendencies
Sig. (2-tailed) .000 .007  
Covariance .130 .081 .249
**. Correlation is significant at the 0.01 level (2-tailed).

14
 As shown in Table 5, the correlation of the variable’s motivation, school and tendencies is
significant. With significant level of 0.01, correlation of motivation to School (P=0.000) and
Tendencies (P=0.00), school factors to motivation (P=.000) and tendencies (.007); and
entrepreneurial tendencies to motivation (P=.000) and School Factors (P=.007). With a positive
correlation coefficient, the variables vary together and indicates a movement in one direction. When
motivation increases, school and entrepreneurial tendency increase. The higher the motivation or
school involvement, the higher the entrepreneurial tendency of the students. The lower the
motivation or school involvement, the lower the entrepreneurial tendency.

The results align with that of Liñán & Chen (2009) that entrepreneurial tendency is predicted
by personal motivation and attitude. The results point heavily to the positive influence of motivation
on the tendency of a person to become an entrepreneur. If a person is highly motivated, he will do
what it takes to achieve his goal. There is strong impact of individual motivation on a persons’
decision to start a business (Saeed et al., 2013). The rejection of school as influencing factor on a
person’s entrepreneurial tendency was proven by a study from Globe Business. Its research head,
Manny Aligada as cited by Inquirer in 2012 reported that most Filipino entrepreneurs do not have
formal education nor having very good grades. Practicality and common sense make Filipino
entrepreneurs successful. Some didn’t even finish high school or college . This finding also confirms
the study of Dawson & Henley (2009) who found that a person, when highly motivated to satisfy
financial security are likely to be enterprising, even without formal education. People who have
degrees tends to find jobs and are offered with more salary, while those who did not finish school
will find financial satisfaction in entrepreneurship.

Conclusion

Results point to the strong influence of motivation to the respondents’ entrepreneurial

tendencies. Motivation, both intrinsic and extrinsic, is crucial in the success of students. While this
study has resulted insignificant influence of school to students’ entrepreneurial tendency, there is a
perceived extent of influence on the importance of educational institution in forming a person’s
attitude towards entrepreneurship. Particularly, teachers, when applying the right combination of
pedagogy and infrastructure plays a pivotal role in providing and developing motivation to students.
School support is also perceived as significant such as allowing student to carry out entrepreneurial
activities freely, without excessive restrictions. Entrepreneurial activities fail to ignite student’s
interest if there is no full support from the school.

Recommendation

Since the study revealed the significance of Motivation in developing students’

entrepreneurial tendencies, this section will focus on how schools can develop motivation among
students. Existing studies suggest that to develop motivation, students should be engaged rather than
passive and teachers have a crucial role in promoting student engagement. The more effective the
teachers are, the more engaged the students will become. The challenge for schools is how to
inculcate a culture of teacher effectiveness to raise student’s engagement. In business education, the
use of case studies and real-world problems, the provision of spaces for entrepreneurial activities,
linking curricula to real-world business challenges, partnering with businesses, helping and guiding
15
students launch their business are found to be effective ways to engage students and increase interest
in business related courses. The design of curriculum is also critical in the effective delivery of
entrepreneurship education such as the recognition of student’s learning styles, teacher and teacher
preparation, evaluation practices, instructional and illustrative materials should be considered. To
encourage entrepreneurship, schools must give more practical coursework, blending the theory in the
traditional economic literature with the tangible needs of everyday business management. The
learning experience should be experiential, hands-on, and action-driven to give students a real-world
experience.

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