EXAMINING THE FACTORS AFFECTING ENTREPRENEURIAL INTENSION AMONG

ACCOUNTANCY AND BUSINESS MANAGEMENT STUDENTS OF MATALOM

NATIONAL HIGH SCHOOL.

In Partial Fulfillment of the subject

Practical Research II

Melvin Tasic Gono

Andres Polea Garin

Jessie Mae Gilo

Rose Ann Padon

Zyra Paquibulan

December 2023
 Chapter I

INTRODUCTION

Background of the Study

Every nation has seen entrepreneurship as a vital component and an economic

engine as it fosters innovation and raises labor market competitiveness while also

assisting in the creation of new jobs (Barba-Sánchez et al. 2022). Many Western

nations have placed a Educational experience are academic experiences that relevant

to professional and academic roles. This includes schools that you have attended,

degrees you have earned and other academic achievements, family background refers

to birth, childhood, residences, economic conditions and jobs of parents. The family

communication during childhood and the formation of skills that fall outside of

scholastic ability, motivation, abilities with personality and emotion (Honda, 2005).

Sociocultural factors influence people's feelings, values, beliefs, behaviors, attitudes,

and interactions. Examples include social classes, religious beliefs, wealth

distribution, language, business practices, social values, customer preferences, social

organization, and attitude towards work.

The Accountancy, Business and Management (ABM) strand would focus on the

basic concepts of financial management, business management, corporate operations,

and all things that are accounted for. value on entrepreneurship, and developing

nations are now beginning to pay more attention to it. According to numerous

research (Krueger et al. 2000; Autio et al. 2001; Arasti et al. 2012), one of the most

important indicators of entrepreneurial actions and behaviors is entrepreneurial

intention (EI). Therefore, the emphasis of many recent studies has switched from
entrepreneurship to emotional intelligence (EI) (Yu et al. 2021). In fact, since the early

1990s, there have been more studies utilizing EI as a research framework,

demonstrating the significance of this component of EI.

Entrepreneurs who want to prosper must try to cultivate a positive mentality.

Attitudes, rather than demographic features, are regarded to be a stronger predictor of

career choice. It influences an individual’s confidence, enthusiasm, proclivity, and

desire to be an entrepreneur. Geissler et al. (2011). Emphasize the importance of the

attitude notion as a highly predictive factor for entrepreneurial desire. Likewise,

although both influence conduct, attitude and personality are inextricably linked

(Florin et al., 2007). Additionally planned behavior postulates that an individual’s

mood has an effect on his or her conduct through purpose (Schwarz et al., 2009).

Entrepreneurs are impelled to make decisions and are unable to give up easily

in pursuit of their ambitions. In other words, individuals who want to be great

entrepreneurs will face constant obstacles. This ability is referred to in psychology as

the Need for Achievement (As Mara et al., 2016). According to Asmara et al. (2016),

one of the personality traits that encourage individuals to pursue entrepreneurship is

their desire for success. Someone who is driven by a desire to succeed has three

characteristic: they are accountable for their actions, willing to take risks appropriate

with their abilities and committed to continuous learning. The desire to succeed is a

critical indicator entrepreneurial purpose. Individuals with a high need for

achievement are more qualified to engage in activities or tasks that require a high level

of responsibility, expertise, and effort include some risk, and need performance,

feedback, in comparison to those with a low need for success. As a result, individuals
with a need for High Achievement are more inclined to pursue entrepreneurial

endeavors.

Entrepreneurship has long been recognized as a vital driver of economic growth

and development. It has the potential to create job opportunities, foster innovation,

and contribute to the overall well-being of a society. Understanding the factors that

influence the entrepreneurial intentions of students, particularly those in the

Accountancy, Business, and Management (ABM) strand, is of great importance in

shaping the future landscape of entrepreneurship.

The ABM strand is a specialized track in secondary education that prepares

students for careers in business, finance, and management. Given the dynamic nature

of the business world, it is crucial to examine the factors that shape the

entrepreneurial intentions of ABM students. This study seeks to shed light on these

factors, aiming to provide insights into how educators, policymakers, and businesses

can better support and encourage entrepreneurship among this specific demographic.

The entrepreneurial intentions of students refer to their willingness and

motivation to engage in entrepreneurial activities, such as starting and managing their

own businesses. This intention can be influenced by a multitude of factors, including

personal characteristics, educational experiences, family background, and socio-

cultural influences. By identifying and understanding these factors, we can take

proactive measures to cultivate a culture of entrepreneurship among ABM students

The findings of this research can have significant implications for educational

institutions, policymakers, and businesses. It can help guide the development of

tailored educational programs, support systems, and policies that promote

entrepreneurial intentions and actions among ABM students. Ultimately, this study
aims to contribute to the empowerment of future entrepreneurs, who can potentially

drive economic growth and innovation in their communities and beyond.

Based on the existing research, a potential gap about factors affecting the

entrepreneurial intention of ABM (Accountancy, Business, and Management) students

could be the need for a comprehensive study that specifically focuses on the unique

combination of factors influencing entrepreneurial intention within the context of ABM

education. While there are studies that have explored factors such as, personal

character, educational experience, family background, Socio-cultural influences.

There is a lack of in-depth research that delves into the interplay and relative

importance of these factors specifically for ABM students. Therefore, a research study

that thoroughly investigates the nuanced impact of these factors on the

entrepreneurial intention of ABM students, considering the specificities of their

academic and career aspirations, could contribute significantly to the existing body of

knowledge in this area. Such a study could provide valuable insights for educators,

policymakers, and stakeholders in the field of ABM education, enabling them to tailor

interventions and programs that effectively nurture and support entrepreneurial

aspirations among ABM students.

STATEMENT OF THE PROBLEM

The main objective of this study is to gain a deeper understanding of the key

determinants that influence the ABM student’s inclination towards entrepreneurship.

Specifically, this study would like to seek the following question:

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

1.1. Personal Character

1.2. Educational Experiences

1.3. Family Background

1.4. Socio-cultural Influences

1.5. Entrepreneurial Intention of ABM students

2.. Do the variable like personal character, educational experiences, family

background, Socio-cultural influences affects the entrepreneurial intention of ABM

students?

Significance of the study

This study assessed the ABM students’ entrepreneurial intentions, it’s influencing

factors, motivations, and obstacles

• Rather than working as an employee in a corporation, student- respondents want to

start their own business and be their own boss; and the course they attended had an

effect in making professional selections;

• They looked up to this study to help them someday or an advice on how to become

entrepreneur one day, because of these study;

• Motivation to them someday to gaining the status they will achieve; and

• They need to already know the right thing to do or have the right mindset about

dealing these entrepreneurial someday.

 The researcher recommends that ABM students should be given proper

education and training to deepen their understanding in starting business and to

develop their entrepreneurial skills such as creativity, risk taking, communication,

and invention while they are in the school.

Scope and Delimitation

The study is all about student’s Entrepreneurial intentions in choosing

Accountancy and Business Management strand. The respondents of these research

covers the whole population of Grade 11 and 12 senior high school ABM students

enrolled in Matalom National High School in the School Year 2023 – 2024.
 Chapter II

REVIEW RELATED LITERATURE AND STUDIEs

Review Related Literature

This part presents an extensive review of related literature and studies

about entrepreneurial intention, personal characteristics, family background,

educational experience and socio-cultural influences.

ENTREPRENEURIAL INTENTION

As cited in the study of Y.Y. Cao et, al, a mindset precedes an intention.

Passion is a direct precursor and a complete mediator between attitudes and

behavioral intentions. Its scope is broad and associated with new ventures

planning and execution (Kautonen et al., 2015). Intention is the Primary force

for generating a behavior (van Gelderen et al., 2018). According to Bruyat

(1993), an Entrepreneurial intention is akin to a desire. Fayolle (2000) Defined

it as a will to act to achieve the desired goal. However, according to Bird (1992),

an entrepreneurial intention is equivalent to liberty and, therefore, a will to

fulfill the visioned goal. Adding to it, such an intention is a frame of

consciousness that guides a person’s perspective, attentiveness,

Experimentation, and actions toward a destination (Bird, 1992). Although the

vision is constantly inspiring, it requires focus and determination to bring it to

life. According to Bird (1988), it is all about the intention that aids in achieving

the organizational objectives. In addition, entrepreneurial intentions are proven

Predictors of the behaviors and traits of entrepreneurs (Fayolle and Linan,

2014; Delanoe-Gueguen and Linan, 2019). Also, it Is emphasized that

entrepreneurial intentions are based on the Entrepreneur’s requirements,

attitudes, behaviors, and beliefs (Hajer and Habib, 2013).

According to Chang et al. (2014), entrepreneurial Qualities relevant to

entrepreneurial intention can enhance entrepreneurial behavior. However,

Frese (2009) and Gorgievski Et al. (2018) stated that personality traits could

predict attitudes toward entrepreneurship. According to Rauch and Frese

(2007) and Kerr et al. (2018), psychological attributes related to

entrepreneurship include locus of control, proclivity to take Risks, need for

achievement, tolerance for uncertainty, and Innovativeness. Likewise, Frese

and Gielnik (2014) supported That the need for achievement, internal locus of

control, tolerance for ambiguity, and risk-taking are usually inclined Drivers of

entrepreneurial intention. Also, achievement, Innovative ness, locus of control,

and self-confidence predicted Entrepreneurial attitudes (Sánchez, 2013).

PERSONAL CHARACTERISTICS
 Personality traits/characteristics can generally be described as the

consistent individual reaction caused by external conditions or the

environment. Based on the analysis, it is generally believed that the

entrepreneurial success of an individual depends on personality traits because

traits determine a person’s behavior and decision-making, thereby influencing

success. Entrepreneurs with powerful Traits have higher performance and run

their businesses long term (Ciavarella et al., 2004). On the other hand,

entrepreneurs who face initial setbacks lack the desire to continue the

engagement. However, according to the study of H. Sun¹ et, al,. (2020)

characteristics that predispose an individual to entrepreneurial intentions are

called entrepreneurial characteristics. From an extensive review of nearly 80

publications on psychological entrepreneurship, we identified four most

frequently cited Entrepreneurial characteristics, namely, need for achievement

(NACH, which has been cited 42 Times), risk-taking propensity (RT, 36 times),

Locus of control (LOC, 33 times), and creativity (CA, 30 times). Others were

cited only a few times. The four characteristics are also considered as the

specific personalities which are proximal to entrepreneurship (Johnson, 2003;

Rauch and Frese, 2007a). We extracted 21 most recent empirical studies

covering one or allll of the four characteristics and summarized them in.

EDUCATIONAL EXPERIENCE
 As cited in the study of Yiran Liu et, at,. (2022) Colin Bohr, an OECD

expert, stated that entrepreneurship education develops and improves

students’ basic entrepreneurial qualities and entrepreneurial abilities, ensuring

that they have the necessary knowledge, abilities, and psychological qualities

to engage in entrepreneurial activities. he considered entrepreneurship

education to be “the third educational passport.” Entrepreneurship

Educational is a kind of practical education that cultivates many innovative

talents with basic literacy in Entrepreneurship and continuously injects new

power into the innovation and entrepreneurship of the country (Hahn et al.,

2019; Lv et al., 2021). Existing research indicates that entrepreneurship

education can positively impact entrepreneurial intentions.

According to an American study of MBA students, the number of

students who have taken entrepreneurial management courses is positively

related to entrepreneurial intentions (Sagie and Elazur, 1999). A study on

British and French college students majoring in science and engineering also

showed that attending entrepreneurial classes and training has a positive

impact on students’ Entrepreneurial intentions (Souitaris et al., 2007).

Entrepreneurship education inspires students to their entrepreneurial ideas

into specific, concrete actions (Souitaris et al., 2007). Cultivation of

entrepreneurial ability through entrepreneurship education has a significant

effect on one’s decision to start a business (Burke et al., 2002).

 Moreover, entrepreneurship education also plays an important role in

shaping the inner power of the “entrepreneurship spirit.” In summary,

receiving entrepreneurship education is conducive to stimulating college

students’ entrepreneurial inspiration (Nabi et al., 2018), accumulating

entrepreneurial knowledge, and cultivating entrepreneurial abilities and skills

(Solomon et al., 2019; Muñoz et al., 2020), making it easier for them to

enhance their entrepreneurial intentions and participate in entrepreneurship.

FAMILY BACKGROUND

Research on entrepreneurship has continuously been using a few

selective lenses and often used to ignore the family background dimension

(Chrisman et al, 2003). Athanasios and Panikkos (2011) found a rather low,

but statistically significant, correlation between a family business background.

Aykut and Belgin (2011) studied the link between entrepreneurial propensity

and gender, family profession, and business education is studied and observed

no significant difference on individual.

Family has been recognized as the most important institution that

enhances students’ awareness about entrepreneurship. Moreover, growing in a

family where one of the relatives and particularly parents run their own

business not only provides an inspiring and supportive environment for

entrepreneurship but also serves as an opportunity to learn and experience the

challenges of business. Involvement of family in entrepreneurship creates a

profound opportunity for understanding how entrepreneurial qualities and

perceptions develop among the offspring (Chrisman et al, 2003). An

entrepreneur parent provides strong inspiration at an early age and help to

inculcate the independent nature of self-employment (Matthews & Moser,

1995). Various studies described that that it is not easy to set up a business

for the first-generation entrepreneurs, but majority of the entrepreneurs set up

their business if they already have a family background of business and mostly

capital for startup is provided by family and friends (Lee & Tsang, 2001).

According to Kolvereid (1996), entrepreneurs tend to have parents with

entrepreneurial mind set.

Finally, the study of Dr. PURNA PRABHAKAR NANDAMURI, can

confidently be concluded that the nature of family background exerts high

influence on entrepreneurial orientation of the graduating youth. The findings

of the present study strongly confirm the earlier empirical evidence put forth by

many researchers in the international context.

SOCIO CULTURAL INFLUENCES

Abraham Ebabu Engidaw’s study in 2021 entitled Exploring

entrepreneurial culture and its socio- cultural determinants: in case of Woldia

University graduating students revealed that socio-cultural factors like work

expectation of respondents’ family, status of respondents in taking

entrepreneurship course, and community attitude of respondents have a

positive significant effect on students’ entrepreneurial culture, and the

study clearly shows that community attitude of respondents was the most

contributing factor for the students’ entrepreneurial culture. Decision on life

careers of individuals are highly affected with the perception of the family and

the society at large. In fact, in the collaboration of higher educational

institutions with real practitioners, entrepreneurship should be enhanced to

mitigate the limitations of higher educational instructors (highly specialized in

the theoretical aspects of the academics but less in practical experience with

the real working environment and in adapting/transforming theories into

practice to exploit the resource potentials of the country.

However, Samli (2009: 56) characterized successful entrepreneurs as

being creative thinkers and strongly aware of their environment to know and

choose appropriate opportunities that lead to success. They can identify

opportunities in improving the existing system. They must understand and

evaluate the opportunity options in their surroundings. The European

Commission (2008: 26) also argued the character qualities of an entrepreneur

as more creative, innovative, highly motivated, self-aware, self-confident,

willing to challenge, better communicators, decision-makers, leaders,

negotiators, networkers, problem solvers, team players, systematic thinkers,

less dependent, less risk averse, able to live with uncertainty, and capable of

recognizing opportunities. entrepreneurship needs entrepreneurial culture that

implies a set of values, norms, and traits that is conducive to the growth of

entrepreneurship (Gupta and Srinivasan 1999: 1). Entrepreneurial culture is

an individual’s ability to transform ideas into action and enables young people

to be more creative and self-confident in whatever they undertake (European

Commission 2008: 18).

Theoretical and Conceptual Framework of the Study

The **theory of planned behavior (TPB)**¹²³ ⁴. This theory assumes that

three distinct attitudinal antecedents of intention determine an individual’s

intention and behavior: the subjective norm, perceived behavioral control, and

attitude toward the behavior³. The subjective norm refers to the perceived

social pressure to perform or not perform the behavior. The perceived

behavioral control refers to the perceived ease or difficulty of performing the

behavior. The attitude toward the behavior refers to the degree of favorability or

unfavorability toward the behavior¹.

According to the TPB, the stronger the positive attitude and subjective

norm, and the greater the perceived behavioral control, the stronger the

intention to perform the behavior in question¹. In the context of

entrepreneurship, the behavior is starting a new venture, and the intention is

the entrepreneurial intention. Therefore, the TPB can help to explain how ABM
students form their entrepreneurial intention based on their beliefs, attitudes,

and perceptions about entrepreneurship.

However, the TPB is not the only theory that can support examining the

factors affecting entrepreneurial intention among ABM students. There are

other theories and models that have been used in the literature, such as the

**entrepreneurial event model (EEM)**, the **entrepreneurial potential model

(EPM)**, the **entrepreneurial mindset model (EMM)**, and the

**entrepreneurial orientation model (EOM)**⁵. These theories and models

incorporate different factors that may influence entrepreneurial intention, such

as personality traits, cognitive factors, environmental factors, social factors,

educational factors, contextual factors, and demographic factors ⁵. Therefore,

depending on the research objectives and questions, different theories and

models can be applied to examine the factors affecting entrepreneurial

intention among ABM students.

The Expectancy Theory

Expectancy Theory (known as Theory of Motivation or the Rational

Intention Theory) developed by (Vroom (1964) states that conscious choice of

an individual to maximize satisfaction and minimize adversity will lead to a

person’s behavior. In the theory, motivation is defined as a result of an

expectancy that greater effort will foster greater performance, instrumentality

refers to the expectation of an individual to receive a certain outcome when

they make the effort, and valence implies the degree to which the person values

the outcome. The Expectancy Theory has been used as a framework in many

studies to explore people’s motivation for becoming entrepreneurs (Locke and

Baum 2007). The three variables: expectancy, instrumentality, and valence,

were confirmed to increase entrepreneurship motivation, further concluding

that apart from ability and aptitude, motivation could enhance the

entrepreneurial intentions of an individual (Barba-Sánchez and Atienza-

Sahuquillo 2017, 2018).

Definition of Terms

The terminologies below are operationally defined for the readers better

Understanding of this study.

Entrepreneurial intension. is a psychological state that guides our attention

toward specific business goals in order to achieve entrepreneurial results. It is

also a recognition that individuals take actions to develop new businesses or

create new values in existing enterprises.

Personal Character. refers especially to moral qualities, ethical standards,

principles, and the like: a man of sterling character.

Educational experience. are academic experiences that relevant to

professional and academic roles. This includes schools that you have attended,

degrees you have earned and other academic achievements.

Family background. refers to birth, childhood, residences, economic

conditions and jobs of parents. The family communication during childhood

and the formation of skills that fall outside of scholastic ability, motivation,

abilities with personality and emotion (Honda, 2005).

Sociocultural factors influence. people’s feelings, values, beliefs, behaviors,

attitudes, and interactions. Examples include social classes, religious beliefs,

wealth distribution, language, business practices, social values, customer

preferences, social organization, and attitude towards work.

The Accountancy, Business and Management. (ABM) strand would focus on

the basic concepts of financial management, business management, corporate

operations, and all things that are accounted for

Statement of the Hypothesis

Ho: There is no significant relationship among personal character,

educational experience, family background and Socio-cultural influences

towards student’s entrepreneurial intension.

 Chapter III

Research Methodology

Research Design

The design used in this study is descriptive-correlational. This style is

applied to understand what an impact on students’ intentions may have to

become entrepreneurs both directly and indirectly to the students of Matalom

National High School. Given that there has been no involvement, or no

interventions are utilized to change the participants’ replies. There’s also

correlational in that it seeks to determine the meaningful connection between

the factors, whether they have an impact or not.

Research Population and Sample

The respondents of this study are the grade 11 and grade 12

Accountancy Business and Management students enrolled at Matalom

National High School in School Year 2022-2023.

Sampling Procedure

Since the entire population took part in this study, then, there is no

sampling procedure that happened. All the Accountancy Business and

Management students enrolled in grades 11 and 12 are considered.

Research Instrument

The research instrument used in examining the factors affecting

entrepreneurial intention of ABM students is a questionnaire. It is utilized a

quantitative descriptive research design and explanation research to describe

and explain the entrepreneurial knowledge and intentions of Grade 11 and 12

ABM students. In order to gather the data, sets of questionnaires are made and

distributed to the respondents, the total number of 17 students of Grade

11ABM students and 34 students of Grade 12 ABM of Matalom national High

School. The questionnaires were designed to measure the entrepreneurial

knowledge and intention of the students. The studies aimed to determine the

level of entrepreneurial attitude and intentions of the Grade11 and 12 ABM

SHS learners and to investigate the factors affecting entrepreneurship intention

of grade 11 and grade 12 ABM students of Matalom National High School.

Data Gathering Procedure

The researcher asked approval from the authorities involved in the

study. A letter of permission to conduct the study is sent to the school

head/principal of Matalom National High School. The data collection procedure

used in examining the factors affecting entrepreneurial intention of ABM

students involved the distribution of questionnaires to the respondents. The

researchers personally handed-in the questionnaires to the respondents.

During the administration of questionnaires, the researchers waited for the

respondents to finish answering the questionnaire. For those respondents who

asked for more time on answering the questionnaire, the researchers will asked

a favor from the identified class presidents and opted to leave the

administered questionnaire with them. The respective class president collected

and then contacted the researchers for the questionnaires to be picked up.
Data Analysis Procedure

Data gathered on the profile of the students in terms of personal

characteristics, educational experiences, family background, and socio-cultural

influences, peers, will be analyzed using frequencies and percentages.

Regression analysis among variables is used to determine as to which of the

predetermined variables have greatly influenced students’ entrepreneurial

intention.