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 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 independence

in the choice making, high self-worth and more wisdom of

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.
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.

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

2
Ibid.
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

2. determine what are the Factors of Entrepreneurship that

influence the students of B.S. Entrepreneurship of

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:

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 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 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

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

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

4
Ibid.
5
Ibid.
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 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

6
Lama, N.(2015). Risk bearing theory profits. Retrieved September 28, 2017, from
www.nabrajalama.files.wordpress.com.
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 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 field8.

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.

7
Ranthod, J. op. cit, p. 6
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 Factors of

Entrepreneurship that Compels the students of B.S.

Entrepreneurship of University of Eastern Philippines to Become

Entrepreneurs. The conceptualization of the study is shown in

Figure 1.

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.9 It was observed

in their study that younger students are less likely to engage

in enterprising behaviour than the older students.

According also to Da Costa and Mares’ study, male students

have higher entrepreneurial intention than females.10 They

believed that male are more business minded that of females.

They also believed that male are more into business than the
9
Da Costa, T. & Pedro M. (2016). Factors affecting students’ entrepreneurial intentions of polythecnic
institute of Setubal: A cognitive approach. Setubal, Portugal. Rebeirda Preto, Edica v. 7, Ed. Especial(2016).
10
Ibid.
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.11

11
Ibid.
Paradigm

Independent variable Dependent variable

1. PROFILE:
1.1 Sex The students of
1.2 Age B.S.
Entrepreneurship
2. Influential
Factors of of University of
Entrepreneurship Eastern
2.1 Attitude toward
Entrepreneurship
Philippines
2.2 Perceived
behavioral control
2.3 Entrepreneurial
intentions

Table 1. Paradigm

It shows the relationship between the two variables.

 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 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 behaviour12.

12
http://people.umass.edu/aizen/pbc.html