Entrepreneurial Inclination Among Business Students: A Malaysian Study

Abstract

The importance of entrepreneurship has been well recognized by the government, the academic community, and the researchers. Business creation and the cultivation of an entrepreneurial culture within the country have been the fundamental topics of discussion among the politicians, economists, and academics. This interest is based on the argument that new businesses contribute to job creation, economic development, and political and social stability (Kuratko and Hodgetts, 2004; Postigo, Iacobucci, and Tamborini, 2003; Wennekers and Thurik, 1999).Governments have a major interest in encouraging enterprises. They are well aware of the importance, both economic and political, of small new firms in an economy. The government understands the crucial roles played by entrepreneurial firms in contributing to the economic performance of the country. Entrepreneurial firms play a key role in innovations that lead to technological change and productivity growth. They are also the main mechanism by which many enter the economic mainstream of the society by setting up new companies in every sector of the economy. New businesses bring innovation to the market and create millions of new jobs (Kuratko and Hodgetts, 2004; Wickham, 2004). As reported by Koh (1996), "the Government of Singapore has identified entrepreneurship as one of the most significant factors (if not the most significant) in the process of growth and development of its national economy" (p. 12).As a result, governments are willing to provide ample support to new startups either financially or non-financially. In addition to capital grants and tax breaks, new firms are often given a head-start through consulting services and training. Examples are the Small Business Administration in the USA, and the Training and Enterprise Councils in the UK (Kuratko and Hodgetts, 2004; Wickham, 2004). In sum, "governments aim to support entrepreneurial businesses because they have an interest in their success. Entrepreneurs bring economic prosperity, provide social stability and generate tax revenue" (Wickham, 2004, p. 193).In academic, there has been a marked increase in entrepreneurship education. Many universities have recognized the significance of entrepreneurship and have designed curricula specifically for entrepreneurial learning. Education in entrepreneurship is a fast growing area in the United States and throughout the world (Hisrich, Peters, and Shepherd, 2005; Koh, 1996). During the 1970s, very few schools offered entrepreneurial courses in the US. But today, more than 600 schools offer such courses and they are reporting an increase in student enrollment in this area (Kuratko and Hodgetts, 2004). Other scholars such as Gorman and Hanlon (1997) and Vesper and Gartner (1997) have also reported an increase in the number and importance of entrepreneurship programs over the past 25 years.Many universities have established centers for entrepreneurship and they organize annual conferences in this theme. Most of these centers provide education programs in entrepreneurship, engage in entrepreneurial research, and conduct outreach activities with entrepreneurs. They also develop programs, in conjunction with the government, to promote entrepreneurship and to serve as incubators of dynamic new entrepreneurs (Kuratko and Hodgetts, 2004; Postigo, Iacobucci, and Tamborini, 2003).LITERATURE REVIEWWith regard to research in entrepreneurship, numerous studies have been done on entrepreneurial personality traits, entrepreneurial skills, demographic characteristics of entrepreneurs, entrepreneurial intentions, and motivating factors and obstacles for setting up new business. The personality or trait approach attempts to identify a set of psychological characteristics that would distinguish entrepreneurs from non-entrepreneurs. Within the area of research in entrepreneurship, studies involving characteristics of entrepreneurs have been conducted most frequently (Herron and Robinson, 1993; Koh, 1996). …