The Influence of Perceived Factors on the Entrepreneurial Intentions of Prospective University Graduates in Ethiopia

Abstract

The study was designed to assess the influence of perceived factors on the entrepreneurial intention of prospective University graduates in five public Universities of Ethiopia. A total of 586(380 male and 206 female) graduates were participated and selected via proportional stratified random sampling technique. Questionnaire and focused group discussion guide lines were used for collecting the data. Data obtained from questionnaire were analyzed quantitatively using percentage, independent sample t-test, multiple regression, and Pearson correlation coefficient. Whereas data procured through focus group guidelines were analyzed qualitatively. The study revealed that most 84.3% of the prospective University graduates had serious thought about setting up their own business in the future. The t-test result revealed that there was a statistically significant difference between male and female prospective University graduates with regard to entrepreneurial intention (t = 2.079, df = 584, p< 0.05). The finding also revealed that students’ entrepreneurial education and entrepreneurial intention have positive weak relationship (r=0.225) at the p-value 0.05. The multiple regression coefficient (R) showed that attitude, self-efficacy, knowledge, and resource from most to least in order were found to be the perceived contributing factors to predict entrepreneurial intention. Result in the focus group discussion depicts, prospective University graduates believed that skill, education, and experience are vital in starting business as well as to carry out the job successfully, especially if prospective University graduates are to be engaged in a career that requires profession. In conclusion, most prospective University graduates had serious intention about setting up their own business sometime in the future although their attitude, self-efficacy, knowledge and resource were taken as determinant factors in predicting their entrepreneurial intention.