Chapter I

INTRODUCTION

Background of the Study

Nowadays, a lot of people want to put up their own business

but does not have the knowledge, courage and dedication to

enter the said field. A lot of hesitations and drawbacks were

hindering them to start the kind of business they want. This

is the main reason why did they enrolled in business courses

like B.S. Entrepreneurship just to gain knowledge of how to

run a business and be one of those successful entrepreneurs

of our society.

There are many reasons that influence individuals to

consider entrepreneurship, one of the main reason is to earn

money and avoid unemployment. Entrepreneurship helps boost

our economy’s development and its satisfying that you’re able

to contribute something in your society through it.

Entrepreneurship is one of those who makes a lot of money,

but entering a business goes through a lot of decision-making.

It’s not the easiest because you’ll have to take the risk and

taking risk means losing money if you fail and such, but if
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you’re passionate and driven, you’ll be able to make it and

be successful throughout your chosen field in business.

You’ll notice, as the process of learning goes on, some

realizes that they’re not meant to become entrepreneurs but

the truth is they were afraid to take the risk of putting up

a business.

According to a research study conducted in Pakistan, “Youth

unemployment is one of the most severe socio-economic

problems threatening developing and underdeveloped countries

and Pakistan is not exceptional in this situation and this

issue has become even much more bothersome in many parts of

the world.”1 It only means that Philippines are also

experiencing youth unemployment. Some of those students who

got degrees doesn’t have job it is because, maybe, the courses

they took are not yet in demand as of the moment. That’s why

some of the students here in our country are taking business

courses like entrepreneurship. They think that being an

entrepreneur or being self-employed is a solution to this

kind of problem that we are experiencing.

According also to this research, “The people engaged in

entrepreneurism stated great advantages including

1
Khursheed, A. (2017). Entrepreneurial perceptions of university of central Punjab and Lahore and
also finding hindrances they perceive. Lahore, Pakistan. J. Bus Fin, Aff.
 3

independence in the choice making, high self-worth and more

wisdom of manage.”2 It is true because as we all know, if we

became an entrepreneur we are the owner of the business, we

are the one who has the power over our people. We have the

power to decide over the flow of business. This is what our

students want, to be the leader and owner of their own

business. In lined with this, “Many experimental findings

show that the students from underdeveloped countries have

sharper and stronger entrepreneurial mind-set than those the

students of developed countries.” As what the researchers

have observed, this statement is really true. Underdeveloped

countries aims to be a part of those countries who are

continuously developing that’s why they’re mind set focuses

on developing their country’s economy. Being an entrepreneur

is a big help to our country, it will help boost our slowly

progressing or developing country.

In the past, no study has explored the factors which

possibly influence students to become entrepreneurs. This

study is conducted to fill the current gap in literature by

finding the factors that influence B.S. Entrepreneurship

students in selecting entrepreneurship as a career option in

the future.

2
Ibid.
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One of the main reasons why did the researchers come up

with this study is because a lot of students nowadays were

entering business courses and dreams of becoming one of those

successful people in the field of business. But in reality,

as the process of learning goes on, you will find out that

not all of them were really into business. Some shifts to

another course because they felt like they didn’t belong,

some stay but doesn’t have the passion to become an

entrepreneur.

Objective of the Study

This study aims to determine the Factors of

Entrepreneurship that influence the students of B.S.

Entrepreneurship of University of Eastern Philippines to

Become Entrepreneurs.

Specifically it aims to:

1. find the demographic profile of respondents in terms of:

1.1 Sex

1.2 Age

1.3 Working Experience

2. determine what are the Factors of Entrepreneurship that

influence the students of B.S. Entrepreneurship of

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University of Eastern Philippines to Become

Entrepreneurs.

3. see if there’s a significant relationship between the

demographic profile and the students of the Bachelor of

Science in Entrepreneurship of the University of Eastern

Philippines.

4. identify if there is a significant relationship between

the factors that influences the students to become

entrepreneurs and the students of B.S. Entrepreneurship

students.

Significance of the study

This study will help them to know the Influential Factors

of Entrepreneurship which influences the students of B.S.

Entrepreneurship of University of Eastern Philippines to

Become Entrepreneurs.

Result of this study would help benefit the people who

are concerned about this issue.

Specially, it will benefit the following group of

people:
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Teacher. Through this research they will be able to know

whether the factors enumerated are really influential to the

B.S entrepreneurship students.

Students. The result of this study will help them to know

what are that influential factors that compels them to become

entrepreneur and if this factors really forces them to become

entrepreneurs.

Parents. Through this research they will be able to support

and guide their children to pursue on the field they want to

go with.

Researcher. For the sake also of future researcher/s this

will set as guide to them for their related study.

Scope and Limitations of the Study

This study is an analysis to determine the Factors of

Entrepreneurship that Influence the students of B.S.

Entrepreneurship of University of Eastern Philippine to

become Entrepreneurs, conducted during the 1st semester of

school year 2017-2018.

It was only limited to selected respondents for the

reason that there are respondents who didn’t take seriously

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in answering the researchers’ questionnaire. It is also to be

conducted only here in UEP because it’s the only college

institution here in Northern Samar which offers B.S.

Entrepreneurship, in which the respondents of this research

came from. If it will be conducted outside Northern Samar it

will surely be costly and a lot of time shall be needed for

that.

Another, almost all of the Review of Literatures (ROLs)

of this study was taken from the studies abroad or in simple

terms all of its ROLs are from foreign studies. It is for the

reason that there are no studies found, here in the local

area, related to this topic.

Theoretical Framework

In this research, there are two major core theories that

the researchers had identified. These are; the Psychological

Theories and the Sociological Theories of Entrepreneurship.

First theory are psychological trait theories of

entrepreneurship which contends/states that certain

attitudinal and psychological attributes differentiate

entrepreneurs from non-entrepreneurs, and successful

entrepreneurs from unsuccessful ones. Second theory suggest

that entrepreneurial behavior is a function of the

individual’s interaction with the society. Sociological

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models that have received significant empirical support are

the inter-generation inheritance of enterprise culture,

social marginality and ethnicity.3

The first theory means that the way people think, speak

and act will give others an overview about one’s personality,

whether he/she have the qualities of being a successful

entrepreneur. In lined with this are sub-theories about the

psychological factors, the following are; Need for

achievement (n-ach)or McClelland’s Theory of Achievement

Motivation, Risk taking propensity and Risk Bearing Theory.4

According to the theory of Achievement Motivation by

David McClelland, people have three motives for accomplishing

things; the need for achievement, need for affiliation and

need for power. As we have observed, people nowadays do things

to gain achievement/accomplishment and power. They want to

show others that they are able to achieve and accomplish

something that is worth the time, effort and money. This is

one of the reasons why people tend to enter the world of

business and become entrepreneurs.

3
Ranthod, J.(2017). Entrepreneurship theories and models. Retrived August 12, from
www.linkedin.com.
4
Ibid.
 9

Also, they take the risk of entering the field of

business without knowing what will be the possible outcome of

their actions. They are not afraid to accept the challenge it

might give to them. This is what the theory of risk taking

propensity means5. People who are more likely to accept risk

and taking chances are more likely of being self-employed

than those who do not take risk. This is also another factor

that influences a student to become an entrepreneur and one

character of a good entrepreneur is being a risk taker. In

lined with this, Palmer has suggested the psychological

testing of entrepreneurs, “be directed most toward the

measurement of an individual’s perception and handling of a

risk” (1971, p.38). This means that it will still depend on

the person’s individual perception of how he/she will handle

the consequences of the situation he/she choose in taking

risk.

Another sub-theory under psychological theory is the

Risk Bearing Theory by F.B. Hawley. According to him profit

is a reward of risk bearing6. Production involves various

kinds of risks and other emergency expenses. Nobody will bear

risk unless there is exception of profit. People take risk

5
Ibid.
6
Lama, N.(2015). Risk bearing theory profits. Retrieved September 28, 2017, from
www.nabrajalama.files.wordpress.com.
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for some reasons and one of the reasons they possibly have is

they will be able to get reward after all. Just like in the

world of business, entrepreneurs take risk because they aim

to get an exchange or reward from all the efforts, money and

time they have contributed and exerted in business. This

reward in business is what we know as profit.

The next theory is about the individual’s interaction

towards the society which is the sociological theory. In the

field of business, we must be able to interact and socialize

with others so that we will be able to get or have a lot of

colleagues which in the mere future will help us in our own

business. In lined with this theory, an entrepreneur must be

able to socialize with others for the assurance of getting

help when he/she begins his/her business. One of the sub-

theories that is related to this study is the so called Social

Marginality Model (Stanworth and Curran, 1976)7. This theory

suggests that individuals who perceive a strong level of

incongruence between their personal attributes and the role

they hold in society will be motivated to change or

reconstruct their social reality. This means that a person is

motivated to change his/her personality or self when they

find their self-different from others so that he/she will be

7
Ranthod, J. op. cit, p. 6
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able to be consistent in the social reality. In relation with

the researchers’ study, a student must be able to interact

with others. This is what influences others to become an

entrepreneur. Through entrepreneurship they will be able to

interact with other people and get a lot of colleagues which

will, surely, in the future can give them help in their chosen

field.

All of these theories show that there are the positive

and negative effects of being an entrepreneur. In lined with

this research study, it gives us an idea that psychological

and sociological factors have a big influence to students to

become successful entrepreneurs in the long run.

Conceptual Framework

This study will determine the factors that influence the

B.S. Entrepreneurship students of UEP to become

Entrepreneurs.

As the diagram shows, there are two variables. The

independent variables, on the first box, which consists of

the demographic profile of the respondents and the

influential factors of entrepreneurship and the dependent

variables, on the second box, which are the Influential

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Factors of Entrepreneurship that Compels the students of B.S.

Entrepreneurship of University of Eastern Philippines to

Become Entrepreneurs. According to the study conducted by

Teresa Gomes da Costa and Pedro Mares with regards to age,

older students have higher entrepreneurial intention than

younger students. It was observed in their study that younger

students are less likely to engage in enterprising behaviour

than the older students.

According to the study, male students have higher

entrepreneurial intention than females. They believed that

male are more business minded that of females. They also

believed that male are more into business than the female.

Another, in this study also, work experience does not affect

the students’ intention to become entrepreneurs.

According also to this study, attitudes toward

entrepreneurship and perceived behavioural control was

significantly influenced the entrepreneurial intention of the

respondents. The conceptualization of the study is shown in

Figure 1.
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Paradigm

Independent variable Dependent

variable

1. DEMOGRAPHIC
PROFILE:
 Sex
 Age
 Working
Experience
The students of
B.S.
Entrepreneurship
of University of
2. Influential
Eastern
Factors of
Entrepreneurship Philippines

 Attitude toward
Entrepreneurship
 Perceived
behavioral
control
 Entrepreneurial
intentions

Table 1. Paradigm

It shows the relationship between the two variables.

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Null Hypothesis

There is no significant relationship between the profile

of the respondents and the factors that influence the students

of B.S. Entrepreneurship of University of Eastern Philippines

to Become Entrepreneurs.

Definition of Terms

To facilitate better understanding of this study, the

following terms were defined conceptually and operationally.

However, some operational definitions are also the conceptual

definitions because they are used in the same content

Attitude towards entrepreneurship. Society’s perception

towards entrepreneurship.

Entrepreneur. Operationally, a person who organized and

operates a business, taking a greater than normal financial

risks in order to do so. Conceptually, a person who is

commonly seen as a business leader and innovator of new ideas

and business processes.

Entrepreneurship. It is defined as “the process of

creating new venture and new organization”. Through that

process, some valuable things will be created from nothing by

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contributing time, work effort, money and risk to get

intrinsic rewards and extrinsic rewards.

Perceive Behavioural Control. It refers to people’s

perceptions of their ability to perform a given behaviour8.

8
http://people.umass.edu/aizen/pbc.html