student entrepreneurship in nigeria_us
TRANSCRIPT
IdentIfyIng CrItICal Issues In IdentIfyIng CrItICal Issues In student entrepreneurshIpstudent entrepreneurshIp
Evidences from Nigeria Evidences from Nigeria
Willie O. Siyanbola, PhD (Sussex), FMSN ([email protected])
(DG/CEO)
&
Abiodun A. Egbetokun ([email protected])
(Research Officer)
National Centre for Technology Management, Ile-Ife, Nigeria
(www.nacetem.org)
1(c) 2008 NACETEM
Presented at the 6th Annual NACCE Conference, January 4-7, 2009 @ Anaheim Hilton Hotel, USA
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Presentation OutlinePresentation Outline
Project Background Rationale Scope The Executing Agency Key Themes Main Results Policy Implications Conclusion
2(c) 2008 NACETEM
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Sponsored by the Federal Government of Nigeria through the Federal Ministry of Science and Technology in 2005
Planned and executed by NACETEM from 2006
Completed in 2007
The ver y f irst large-scale study on student entrepreneurial attitude in Nigeria
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Project BackgroundProject Background
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Unemployment in Nigeria is still very high (37% in 2004) possibly due to low entrepreneurial propensity among the youth
The need for baseline pragmatic data to assist in the design of appropriate policies on Technological Entrepreneurship
The need to better understand how best to stimulate student/graduate entrepreneurship
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Study RationaleStudy Rationale
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Over 7500 students and over 1200 lecturers sampled
13 out of 92 Universities;
9 Polytechnics out of 50;
3 Colleges of Education (Technical) out of 8
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Project ScopeProject Scope
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About the CountryAbout the Country
Nigeria – Brief fact fileNigeria – Brief fact file
Political Independence: 1960 Political Independence: 1960
Population: 140 millionPopulation: 140 million
Land area 923,000 sq kmLand area 923,000 sq km
Education institutions: Education institutions:
94 Universities; 94 Universities;
53 polytechnics 53 polytechnics
6th largest oil producer (OPEC)6th largest oil producer (OPEC)
GDP per capita: US$1,750GDP per capita: US$1,750
Literacy: 70.7%Literacy: 70.7%
Teledensity: Over 50m GSM linesTeledensity: Over 50m GSM lines
External reserves:US$60 bnExternal reserves:US$60 bn
Inflation rate: 7%Inflation rate: 7%
Nigeria
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Selected Economic IndicatorsSelected Economic IndicatorsCountry* Per Capita GDP
(PPP US$)
% population
below poverty line
% population
below $1/day
% population
below $2/day
Japan 36501 - - -
South Korea 14265 .. <2 <2
Chile 5838 17.0 <2 9.6
Malaysia 4731 15.5 <2 9.3
South Africa 3489 .. 10.7 34.1
China 1283 4.6 16.6 46.7
Nigeria 594 34.1 70.2 90.8
USA† 37562 .. .. ..
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†In the US, only 13.6% of the people lived below $11 per day as at 1995* Data for most recent available yearSource: Human Development Report, 2001; 2005; 2006
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About the Executing About the Executing AgencyAgency
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Who We AreWho We Are
The National Centre for Technology Management (NACETEM)
The Science and Technology (S&T) Policy Research and Training Agency of the Federal Ministry of Science and Technology
Provides knowledge support and constitutes the software component of the nation's STI endeavours
Provides evidence-based STI policy advice to government (local, state and federal)
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What We AimWhat We Aim
NACETEM VISIONNACETEM VISIONTo be an internationally recognised centre of excellence in science,
technology and innovation management for sustainable development
NACETEM MISSIONNACETEM MISSIONTo play a leading role in the build-up of expertise for effective
management of science, technology and innovation and to actively engage in policy research, design, evaluation and
review
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Our BusinessOur Business
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Impacts (1)Impacts (1)
In the last 8 years >65 short-term courses
>500 persons trained >50 legislators/technocrats trained
10 years of PGD programme in Technology Management >150 persons trained
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Impacts (2)Impacts (2)
In the last 8 years Consulted for 5 major institutions inc. the World Bank Completed about 10 policy research projects About 3 policy research projects ongoing
Connected with over 5 related int’l institutions SPRU (Sussex, UK) UNU-MERIT (the Netherlands) NEPAD (Africa) STEPRI (Ghana) CESTI (South Africa)
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Key ThemesKey Themes
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Entrepreneurial and business experience* What proportion of students is interested in
entrepreneurship? What proportion of undergraduates is presently involved
in business? What factors motivated or discouraged students’ past
involvement in business? Is there a link between past involvement in business and
the decision of students to become entrepreneurs?
*Scott and Twomey (1988)
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Key Themes addressed (1)Key Themes addressed (1)
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Family Backgr ound* Are students influenced by their families’
entrepreneurial history? Do family characteristics (income, educational levels
and size) affect decisions to become entrepreneurs?
*Verheul et al (2002); Scott and Twomey (1988)
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Key Themes addressed (2)Key Themes addressed (2)
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Entrepreneurial Education* How important is entrepreneurial education? How is its impact to be measured?
*Wang and Wong (2005); Stewart et al (1999)
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Key Themes addressed (3)Key Themes addressed (3)
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Key Themes Addressed (4)Key Themes Addressed (4)
Attitude and aspirations* What are the current attitudes of young Nigerians
towards entrepreneurship? What socio-economic, demographic, academic and
cultural factors (ethnic origin, course of study, academic performance as reflected in CGPA, students’ age, gender, marital status) influence the fostering and development of entrepreneurship?
*Verheul et al (2002; 2005); McClelland (1961)(c) 2008 NACETEM 20
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Key Themes Addressed (5)Key Themes Addressed (5)
Orientation* Do young Nigerians envisage themselves becoming
entrepreneurial? How would this entrepreneurship manifest itself? If entrepreneurship is typified by certain
characteristics, do young Nigerians think they possess these traits?
*Bird (1988); Boyd and Vozikis (1994); Cunningham et al (1995)
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Key Themes Addressed (6)Key Themes Addressed (6)
Government policy and environmental factor s* What do young people perceive as practical or
structural barriers to entrepreneurship? What do they perceive as enhancers of
entrepreneurship? How do they perceive the role of government
programs and initiatives? Are these programs and initiatives adequate to
promote entrepreneurship?*Verheul et al (2002; 2005)(c) 2008 NACETEM 22
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Key Themes Addressed (7)Key Themes Addressed (7)
Predicting and pr omoting entrepreneurial behavior What factors best explain the propensity of
students to become entrepreneurs? What policies should be adopted to promote
entrepreneurship among students?
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Main ResultsMain ResultsSample CharacteristicsSample Characteristics
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Academic Characteristics of the selected studentsAcademic Characteristics of the selected students Field of Study Percentage (N=6236)Engineering/Technology
52.3
Pure sciences 17.6
Agriculture 11.8
Social sciences 2.3
Management sciences 15.9CGPA Percentage (N=4417)1.00+
2.402.00+
29.523.00+
51.664.00+
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Socio-demographic characteristics of the RespondentsSocio-demographic characteristics of the Respondents
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Age Group Percentage (N=6144)
16-20 13.421-25 60.726-30 21.531-35 3.136-40 0.8Above 40 0.4
Socio-demographic characteristics of the RespondentsSocio-demographic characteristics of the Respondents
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Main ResultsMain ResultsEntrepreneurial and Business Entrepreneurial and Business
ExperienceExperience
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Students’ Interest in Entrepreneurship (N=5791)Students’ Interest in Entrepreneurship (N=5791)
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Entrepreneurial Involvement of the Students (N=5898)Entrepreneurial Involvement of the Students (N=5898)
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Pattern of Students’ Entrepreneurial Involvement (N=5898)Pattern of Students’ Entrepreneurial Involvement (N=5898)
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Some ComparisonsSome Comparisons
Country Students’ Business Engagement (%)
Students’ Entrepreneurial
Interest (%)
Nigeria 27 85
Australia 10.3* 68.2*
United States 65#
Singapore 50.7†
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* Sergeant and Crawford, 2001# Kourilsky and Walstad, 1999† Wang and Wong, 2004
Influence of Entrepreneurial Experience on InterestInfluence of Entrepreneurial Experience on Interest
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B SE Wald Exp(B)
Entrepreneurial Experience
1.107 0.108 104.442 3.025
Constant 1.406 0.206 1292.486 4.080
Pseudo R2 0.039
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Factors motivating student entrepreneurs in order of strengthFactors motivating student entrepreneurs in order of strength
Factors Percent (n=1861)
Personal interest 30.74Parent 19.29Desire to make money
17.25
Self-actualization 15.91Peers 5.64Relatives 4.67Sibling 3.44Circumstances 3.06
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Factors discouraging student entrepreneurs in order of strengthFactors discouraging student entrepreneurs in order of strength
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Main ResultsMain ResultsFamily BackgroundFamily Background
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Family entrepreneurial history and students’ entrepreneurial attitudeFamily entrepreneurial history and students’ entrepreneurial attitude
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Entrepreneurial Interest
Techno-Business
PreferenceHas any of your parents initiated or run a business in the past?
0.193** 0.031*Is the business ongoing?
0.065** 0.007Has any of your close relatives initiated or run
a business in the past? 0.195** 0.035*
Is the business ongoing? 0.102** 0.037*
** Correlation is significant at the 0.01 level 2-tailed.* Correlation is significant at the 0.05 level 2-tailed.
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Parents’ Socio-demographics and Students’ Entrepreneurial Attitude: Parents’ Socio-demographics and Students’ Entrepreneurial Attitude: CorrleationsCorrleations
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Entrepreneurial Interest
Techno-Business Preference
Range of Monthly Income
Father -0.059** -0.089**Mother -0.014 -0.095**
Highest Level of Education
Father -0.088** -0.079**Mother -0.083** -0.095**
Number of Children Father 0.043** 0.032*Mother 0.024 0.022
Position in Family Father -0.022 0.020Mother -0.041** 0.006
** Correlation is significant at the 0.01 level 2-tailed.* Correlation is significant at the 0.05 level 2-tailed.
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Main ResultsMain ResultsEntrepreneurial EducationEntrepreneurial Education
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Students’ Exposure to Entrepreneurial EducationStudents’ Exposure to Entrepreneurial Education
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Students’ Entrepreneurial Education and InterestStudents’ Entrepreneurial Education and Interest
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B SE Wald Exp(B)
Entrepreneurial Education
1.048 0.089 137.469 2.852
Constant 1.335 0.163 1018.945 3.801
Pseudo R2 0.048
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Students’ Entrepreneurial Education and InterestStudents’ Entrepreneurial Education and Interest
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Sources of entrepreneurial education by ownership of institutionsSources of entrepreneurial education by ownership of institutions
Ownership
Sources of entrepreneurial education
Public Universitie
s (N=1129)
Private Universities
(N=309)
Polytechnics
(N=602)
COE(N=213)
An elective 20.99 8.09 21.76 11.74
A core course 27.55 79.29 31.89 45.07
Part of another course 9.21 4.85 11.63 21.60
A private arrangement 28.96 6.80 21.26 17.84
An informal exposure 22.76 5.83 16.11 20.66
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Main ResultsMain ResultsStudents’ CharacteristicsStudents’ Characteristics
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Students’ Characteristics and Entrepreneurial InterestStudents’ Characteristics and Entrepreneurial Interest
Entrepreneurial Interest
Techno-Business Preference
Age 0.031* 0.007Gender -0.135** 0.056**Marital status -0.074** 0.036*Ethnic origin 0.095** -0.001Faculty/school -0.040** 0.033*Present level of study -0.046** -0.009Present CGPA -0.011 -0.027
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** Correlation is significant at the 0.01 level 2-tailed.* Correlation is significant at the 0.05 level 2-tailed.
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Personal Entrepreneurial Characteristics (PEC)Personal Entrepreneurial Characteristics (PEC)
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Main ResultsMain ResultsGender DifferentialsGender Differentials
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Gender Differentials in Students’ Entrepreneurial Interest and ExperienceGender Differentials in Students’ Entrepreneurial Interest and Experience
Male (%) Female (%)
Interested in starting own business* (N = 3691; 2017)
87.4 77.0
Presently involved in business** (N = 3743; 2071)
29.2 23.2
Motivating factors for involvement in businesses (N = 1023; 443)Parents 21.9 29.1Sibling 3.8 5.6Relatives 5.4 6.8Personal interest 38.6 38.4Desire to make money 22.7 19.9Self-actualization 22.6 14.2Events 4.0 3.6Peers 6.8 7.9
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*χ2 = 104.26; p < 0.001 **χ2 = 24.51; p < 0.001
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Gender Differentials in Students’ Entrepreneurial Interest and ExperienceGender Differentials in Students’ Entrepreneurial Interest and Experience
Independent Variables Male EI Female EI
Age 0.026 0.007Marital Status -0.069** -0.048*Ethnic Origin 0.075** 0.082**Number of father’s children 0.056** 0.028Number of mother’s children 0.048** 0.006Position among mother's children -0.005 -0.073**Father’s highest level of education -0.079** -0.074**Mother’s highest level of education -0.058** -0.084**Father’s range of monthly income -0.044* -0.045Parents’ entrepreneurial history 0.144** 0.240**Is the business on-going? 0.053** 0.095**Close relatives’ entrepreneurial history 0.170** 0.214**Is the business on-going? 0.102** 0.112**Exposure to entrepreneurial training/course
0.141** 0.178**
Access to enough capital 0.624** 0.694**(c) 2008 NACETEM 49
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Main ResultsMain ResultsGovernment Support and Government Support and Environmental FactorsEnvironmental Factors
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Sources of funds for student entrepreneurs in order of strengthSources of funds for student entrepreneurs in order of strength
Sources of funds Percent (n=1699)
Personal savings 57.33
Family savings 15.60
Loans from family and friends
11.60
Bank loans 5.18
Family inheritance 3.65Co-operative loans 3.53
Government sources 3.12
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Government Support in order of adequacyGovernment Support in order of adequacy
Government Assistance Adequacy rating (%)
Improved Telecommunication Facilities 79.7Easy access to Market 63.5Training 57.6Improved Transport Facilities 57.3Technical Support 54.4Business Advisory Services 51.9Improved Access to Machinery 47.2Improved Public Water Supply 46.4Finance 44.7Improved Security 44.0Stable Power Supply 37.6
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Days Required to Register a New BusinessDays Required to Register a New Business
Country Business Startup Delay (days)
USA 5Turkey 9Egypt 19South Korea 22Bangladesh 37Nigeria 43Iran 47Philippines 48Vietnam 50Indonesia 97Mexico .. Pakistan ..
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Source: World Development Indicators Database, July 2008
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Main ResultsMain ResultsModels of Student EntrepreneurshipModels of Student Entrepreneurship
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Regression Model of PEC variables and EIRegression Model of PEC variables and EI
B S.E. Wald Sig. Exp(B)
Persistence 0.245 0.042 34.547 0.001** 1.278
Opportunity & Initiative 0.214 0.047 20.992 0.001** 1.239
Information Seeking 0.143 0.041 11.955 0.001** 1.153
Independence and Self-Confidence
0.125 0.043 8.638 0.003** 1.133
Goal Seeking -0.119 0.051 5.389 0.020* 0.888
Risk Taking 0.050 0.040 1.527 0.217 1.051
Constant -0.676 0.322 4.407 0.036 0.509
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Regression Model of Significant Variables and EIRegression Model of Significant Variables and EI
B S.E. Wald Sig. Exp(B)Access to enough funds 4.165 0.221 356.4 0.001** 64.363Course of Study 0.283 0.117 5.9 0.015* 1.327Parents’ Business Experience
0.248 0.112 4.9 0.027* 0.780
Age 0.229 0.105 4.8 0.029* 1.257Entrepreneurial Disposition
-0.162 0.079 4.2 0.041* 0.850
Constant 1.022 3.015 0.1 0.169
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R2=0.351
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Regression Model of Significant Variables, PEC and EIRegression Model of Significant Variables, PEC and EI
B S.E. Wald Sig. Exp(B)Access to enough funds 4.358 0.259 282.564 0.001** 78.065Age 0.389 0.126 9.612 0.002* 1.476Persistence (PE) 0.284 0.098 8.404 0.004* 1.328Parents’ Business Experience
0.298 0.124 5.734 0.017* 0.743
Course of Study 0.269 0.130 4.303 0.038* 1.309Constant -5.080 1.440 12.441 0.000 0.006
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R2=0.391
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Regression Model of Business PreferenceRegression Model of Business PreferenceB S.E. Wald Sig. Exp(B
)Risk Perception 0.21 0.05 18.56 0.01** 1.23Persistence -0.22 0.05 19.52 0.01** 0.80Goal setting 0.15 0.06 6.56 0.01** 1.17Entrepreneurial Education as Private Course
-0.41 0.18 5.10 0.02* 0.67
Parents business experience 0.11 0.06 3.25 0.07* 1.11Entrepreneurial disposition -0.11 0.05 5.60 0.02* 0.90Constant 0.04 0.61 0.00 0.95 1.04
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Implications Implications & &
ConclusionsConclusions
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ImplicationsImplications
Many students want to be entrepreneurs but few actually do
Mentorship is important to stimulate and sustain students’ entrepreneurial interest
Funding and infrastructure need to be in place Introducing entrepreneurial curricula is beneficial There is need to pay attention to female students
in the long run Risk aversion is not a problem among students
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ImplicationsImplications
There is a 3.9% likelihood that student entrepreneurs would like to remain as entrepreneurs
Exposure to entrepreneurial education explains 4.8% of students’ interest in entrepreneurship
Students’ PEC explains 4.2% of their interest in entrepreneurship
Fund availability, Discipline, Family’s entrepreneurial history, age and entrepreneurial disposition explain 35.1% of students’ interest in entrepreneurship
Fund, Age, Persistence, Family’s entrepreneurial history and discipline explain 39.1% of students’ entrepreneurial interest
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ConclusionsConclusions
All students are not equally likely to become entrepreneurs
Students are most likely to be entrepreneurs when they are mature in terms of age, their parents had been entrepreneurs, they study in the sciences/engineering, they learn to be persistent and are given sustainable access to funds
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Your Comments, pls…Your Comments, pls…Thank you for Thank you for
listeninglistening(c) 2008 NACETEM 63
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ReferencesReferences W.H. Stewart, Jr, W. Watson, J.C. Carland and J.W. Carland (1999). A proclivity for entrepreneurship: a
comparison of entrepreneurs, small business owners, and corporate managers. Journal of Business Venturing 14 (2), pp. 189–214.
M.G. Scott and D.F. Twomey (1988). The long-term supply of entrepreneurs: students’ career aspirations in relation to entrepreneurship. Journal of Small Business Management 26 (4), pp. 5–13.
B. Cunningham, P. Gerrard, F.P. Chiang, K.Y. Lim and C.L. Siew (1995). Do undergraduates have what it takes to be entrepreneurs and managers of small businesses in Singapore?. Journal of Asian Business 11 (4), pp. 35–49.
A. Ghazali, B.C. Ghosh and R.S.T. Tay (1995). The determinants of self-employment choice among university graduates in Singapore. International Journal of Management 12 (1), pp. 26–35.
Verheul, Ingrid, van Stel, Andre, Thurik, Roy (2005). Explaining Female and Male Entrepreneurship at the Country Level. Erasmus Research Institute of Management Report Series Research in Management
Wang, C. K. and Wong, Poh-Kam (2004). Entrepreneurial interest of university students in Singapore. Technovation 24 (2004) 163-172.
Timmons, J. A. (1994). New Venture Creation – Entrepreneurship for the 21 st Century. Irwin, Boston Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management
Review, 13(3), 442-453. Boyd, N. G., & Vozikis, G. S. (1994). The influence of self-efficacy on the development of entrepreneurial
intentions and actions. Entrepreneurship: Theory and Practice 18(4), pp. 63-77. McClelland, D. C. (1961). The Achieving Society. New York: Van Nostrand.
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