Factors Affecting Entrepreneurial Intention Among The Malaysian University Students

Abstract

Entrepreneurship is regarded as one of the key economic development strategies to advance a country’s economic growth and to sustain its competitiveness in facing the increasing trends of globalization. This study aims to explore the factors that affect students’ intentions to be an entrepreneur. Furthermore, it also aims to examine the moderating effects of entrepreneurship education in enhancing entrepreneurial intentions among Malaysian university students. Findings of this study note a positive significant effect on the relationship between innovativeness, risk-taking propensity, family background, and a supportive environment. Findings also note a negative and significant effect in the relationship between entrepreneurship barrier and students’ intentions to be an entrepreneur. Furthermore, in terms of the moderating effects of entrepreneurship education, this study finds no significant support on the moderation of entrepreneurship program on the relationship between Innovativeness, Risk-Taking Propensity, Family Background, and Entrepreneurship Barrier with Entrepreneurial Intention. However, findings of this study note that the entrepreneurship program in entrepreneurship education moderates the relationship between supportive environment and entrepreneurial intention. This could be explained by suggesting that students who undergo entrepreneurship programs in their universities may improve their knowledge on the entrepreneurship programs and policies instituted by the government to produce graduates who want to be entrepreneurs. Moreover, this study also finds no significant support on the moderation of service quality of entrepreneurship education on the relationship between innovativeness, risk-taking propensity, family background, and supportive environment with entrepreneurial intention. However, findings of this study note that the service quality of entrepreneurship education moderates the relationship between entrepreneurship barrier and entrepreneurial intention. This could be explained by suggesting that students who perceive lack of experience and lack of social capital as barriers for them to start a business would be more motivated to pursue their career in entrepreneurship if their lecturers manage to instil knowledge and suggest solutions to overcome the barriers. This study provides empirical evidence of the factors that influence entrepreneurial intention and the moderating role of entrepreneurship education. Findings of this study also provide a clear indication to academicians and academic policy makers about the effectiveness of the current entrepreneurial education designed and practiced by public universities in Malaysia.