THE ROLE OF LOCUS OF CONTROL ON THE START-UP INTENTION OF HIGHER INSTITUTION STUDENTS IN NIGERIA
1.1 THE BACKGROUND OF THE STUDY
The educational system is a key area where it is possible to intervene and present entrepreneurship as a viable alternative to dependent employment. The support for this view comes from a widely literature review of enterprise, entrepreneurship and business creation. The idea is also present in the European Union recommendations. (see Action plan to promote entrepreneurship and competitiveness – Best action plan and green paper on entrepreneurship) which refers to the promotion of entrepreneurship through the education system from primary school to university as a main goal.
Recent literature review evaluates or measure the impact of general education on entrepreneurship and entrepreneurial activity suggests some possible generalizations. Evidence suggesting a positive link between education and entrepreneurship is robust. “it is becoming clear that entrepreneurship or certain facet on it can be taught”. Most of the imperical studies indicate that entrepreneurship can be taught, at least encouraged by entrepreneurship education. In addition, the entrepreneurship role can be culturally and experimentally acquired and therefore influenced by education and training. Thus the present educational system should encourage the concept of an enterprise culture.
Works advance the idea that formal entrepreneurship education affects the attitudes of students, influencing them in the direction of future career and affect their propensity for entrepreneurship when they become adults. In this sense, the pedagogical approach should encourage children to make decisions and accept mistakes as part of their learning process, underline the importance to develop a common framework to evaluate, compare and improve the design of educational programs of entrepreneurship. It is important to create the right entrepreneurship environment at the educational institution. Entrepreneurial activities should be integrated into the programmes of the institution from an early stage and need to be supported by school culture. Thus, in entrepreneurship education literature, primary, secondary and tertiary schools have received growing attention and enterprise education programmes in tertiary schools were confirmed to be important for later entrepreneurial intentions. It is believed that the ideal stage to acquire basic knowledge about entrepreneurship and to foster a positive attitude towards entrepreneurship is during childhood and adolescence years.
The knowledge of student’s entrepreneurial characteristics that have more impact on entrepreneurial intentions can be an important contribution for the development of adequate educational programmes related with entrepreneurship and business creation.
1.2 STATEMENT OF PROBLEM
It is not an over statement stating that no business start up can strive successfully with out its own teething problems, an so this work enumerated some of the problems which are paramount to start up intention among the students of higher institutions
1. What is the entrepreneurial intention of students of higher institution?
2. What is the effect of locus of control on the start up intention?
3. Is risk taking behavior related to business start up intention?
4. How much effect does self confidence have on start up intentions?
1.3 OBJECTIVE OF THE STUDY
1. To determine the entrepreneurial intention of students of higher institution
2. To determine the effects of locus of control on the start up intentions of the students
3. To determine the risk taking behaviour related to business start up intentions
4. To determine how much effect does self confidence have on start up intention
1.4 SIGNIFICANCE OF THE STUDY
The important of this research work is to enable us expose the rudiment and encourage all categories of individuals willing to go into entrepreneurial intention.
It is also important to point out that no company or organization without challenges an so this research work enable us expose some if not all of this challenges facing entrepreneurial intentions and profound possible solutions.
Base on this research work, it will enable us create awareness regarding the various roles of entrepreneurial intention among the start up challenges in the society at large.
Finally, there is a common saying and I quote “knowledge is power” Thus this study can assist in combating un-employment rate in the society interchangeably with employment opportunities for the society at large.
1.5 THE SCOPE OF THE STUDY
This research work will be limited to the role of locus of control on entrepreneurial intentions among the students of higher institutions.
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2.1 UNDERSTANDING OF ENTREPRENEURIAL INTENTION
The previous research has investigated the various economic and psychological motivations of individuals to seek self-employment (Banmol, 1990, Eisenhover, 1995, Douglas and Shepherd, 2000). The motivation to engage in entrepreneurial behaviour has generally been investigated in terms of entrepreneurial intentions, with intention conceptualized as being a function of beliefs that in turn can lead to subsequent behaviour. In general, the greater the intention, the stronger is the motivation to engage in entrepreneurial behaviour (Ajzen 1991). Numbers of models have been proposed to explain the relationship between an individual’s personal characteristics and subsequent intention (for example, Shapero 1982, Ajzen 1987, Bird, 1988). Ajzen’s theory of planned behaviour (1991) suggests three keys attitude that predict intentions, these being attitudes towards the act, social norms and perceived behavioural control. Krueger and Brazeal (1994) suggest that the perceived behavioural control construct overlaps with the self-efficacy construct of Bandura (1986) and outlined a model of potential entrepreneurship that incorporated entrepreneurial intentions, Basing their model on Ajzen’s theory of planned behaviour and Shapero's model’s of the entrepreneurial event (Shapero, 1982). Their model included the potential for both enterprise development and corporate ventures and was compressed of three constructs beings :
Perceived desirability Perceived feasibility Propensity to act.
The perceived desirability was seen to be related to intrinsic rewards associated with entrepreneurship and includes the attitude towards the act and social norms. (Kreuger and Brazeal (1994). Perceived desirability is related to the motivational factors to engage in entrepreneurial behaviour and can therefore be considered a function of entrepreneurial attitude held by the individuals. Perceived feasibility on the other hands, is related to individual perceptions of their ability to implement the required behaviour Krueger (1993), cites persuasive evidence, that perceived credibility, perceived desirability and prosperity to act explain over half the variance in intentions towards entrepreneurship, with feasibility perceptions being the most influential’s. An alternative model of entrepreneurial intentions was proposed by Bird (1988). Based on established theory in cognitive psychology, the model suggest that an individuals entrepreneurial intentions is based on a combination of personal contextual factors, personal factors includes prior experience as an entrepreneur, personal characteristics and abilities while contextual factors consists of social, political and economic variables. An individual’s intention is further structured by both rational and analytic thinking (goal-directed behaviour and intuitive or holistic thinking (vision). Boyd and Vozikis (1994) expand on this model to incorporate the perceived behavioural control aspect of Ajzen’s theory of planned behaviour through the inclusion of the concept of self-efficacy. Perceived behavioural control describes the perceived ease or difficulty of performing behaviour and as pointed out by Ajzen’s (1991) is closely related to the concept of self-efficacy. They also proposed self-efficacy as an important explanatory variable in determining the strength entrepreneurial intentions and the likelihood that those intentions will result in entrepreneurial actions. The reversed model of Boyd and Vozikis (1994) based on Bird’s (1998) model suggest that intentions are a function of self efficacy in addition to attitudes and perceptions regarding the creation of a new venture through rational and intuitive thought processes. 2.2 LOCUS OF CONTROL AND ENTREPRENEURIAL INTENTION Locus of control is the degree in which the individual believes that the reinforcements are dependent on his behaviour. This individual believes that the accomplishment of goal or purpose depends on his own ability and actions rather than luck or other people’s efforts (Kuip and overhaul, 2003). The empirical evidence shows that small business entrepreneurs are more oriented at the internal level than population in general (Ket Vries, 1977, Begley and Boyd, 1987, Beverland and Lockshin 2001). Brockhaus (1980) longitudinal study suggests the existence of a positive correlation between orientation to locus of control and entrepreneurial success. In another study Brockhaus and Horwitz (1986) reinforce that locus of control could distinguish entrepreneurs who are successful from those who are unsuccessful. Robinson et al (1991) state that internal control leads to a positive entrepreneurial attitude and most students who receive entrepreneurial formation may develop a higher level of control and self-efficiency.
2.3 RISK TAKING AND ENTREPRENEURIAL INTENTIONS This variable refers to risk acceptance when entering an activity, that is, it is related to the probability of an activity having less than 100% success (Kuip and Verheul, 2003). Even if risk-taking is often mentioned as a determinant of entrepreneurial intention, several empirical studies suggest that small business entrepreneurs do not have a positive attitude towards risk and they do not consider themselves as risk-takers, (Baron, 1998) nor do they seen to differ from other groups, in more objectives test on risk-taking (Brockhaus), (1980). according to Mc Clelland (1961) and Bellu (1988) Entrepreneurs seem slightly less attracted to take risks in situations known as pure shift games. Entrepreneur risk-taking may be specific or monetary. Davidsson (1989) asserts that if the aspirations are sufficient accomplished. Entrepreneurs may simply stop taking risks. However, risk-taking and acceptance of uncertainty is something that can be slowly modified if desired. Thus, it is still not clear in literature if there is a relationship between risk-taking propensity and Entrepreneurial intention neither the nature of such relationship.
2.4 SELF-CONFIDENCE AND ENTREPRENEURIAL INTENTION The high level of self confidence has been suggested by many studies as an entrepreneur’s standard characteristic. In reality, this characteristic emerges constantly in a compilation of empirical studies states by Davidsson (1989). Ho and Kol (1992) refers that self confidence is an entrepreneurial characteristic and that it is relate to other psychological characteristics, such as Locus of control, propensity to take risk and Tolerance of ambiguity. Robinson et al, (1991) have found entrepreneur to have a higher degree to self-confidence relative to non-entrepreneurs.