See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/373649611

The Entrepreneurial Intention of Business Students: Applying the Theory of

Planned Behavior and Theory of Reasoned Action

Article in European Journal of Theoretical and Applied Sciences · September 2023

DOI: 10.59324/ejtas.2023.1(5).03

CITATIONS READS

2 1,166

2 authors, including:

Emmanuel Dotong
Lyceum of the Philippines University
8 PUBLICATIONS 5 CITATIONS

SEE PROFILE

All content following this page was uploaded by Emmanuel Dotong on 04 September 2023.

The user has requested enhancement of the downloaded file.

 The Entrepreneurial Intention of Business Students: Applying
the Theory of Planned Behavior and Theory of Reasoned Action
Emmanuel J. Dotong 
College of Business Administration, Lyceum of the Philippines University, Manila, Philippines
Moses G. Manalang
Ramon V. del Rosario College of Business, De La Salle University, Manila, Philippines

Suggested Citation Abstract:

Dotong, E. & Manalang, M. The Philippines is an entrepreneurial country, with MSMEs
(2023). The Entrepreneurial constituting 99.6% of registered businesses, employing 62.80% of
Intention of Business Students: the working population. The number of registered businesses in the
Applying the Theory of Planned country is increasing, especially among young entrepreneurs. This
Behavior and Theory of Reasoned study highlights the significance of attitudes, norms, and self-efficacy
Action. European Journal of in shaping entrepreneurial aspirations among the youth in the
Theoretical and Applied Sciences, 1(5),
Philippines. It examines the entrepreneurial intention of graduating
21-32.
students pursuing Accountancy, Management Accounting, and
DOI: 10.59324/ejtas.2023.1(5).03
Customs Administration degrees at the Lyceum of the Philippines
University-Manila. The research is anchored on the study of Lars
Kolveried & Espen Isaksen, which incorporates the Theory of Planned Behavior (TPB) and Theory of
Reasoned Action (TRA) to develop hypotheses about attitudes toward entrepreneurship as a career and
entrepreneurial intentions. Through Factor Analysis (Principal Axis Factoring), the researchers identified
seven (7) factors that predict the intention to be self-employed: one (1) for attitude (Business than Career),
two (2) for subjective norm (care about people's opinion and people's opinion), and four (4) for self-
efficacy (Risk, Investor, Opportunity, and Economy). The findings suggest that factors such as attitudes
toward entrepreneurship, subjective norms, and self-efficacy significantly impact students' intention to
pursue self-employment. Notably, students who prioritize business over career, value other people's
opinions, and possess greater self-efficacy in areas of risk, investment, opportunity, and the economy are
more inclined towards self-employment. Conversely, factors such as extended academic tenure, managing
cash flow concerns, and age negatively affect entrepreneurial intentions. Personal circumstances,
including relationship status, location, employment status, and scholarships, can also influence students'
likelihood of intending to be self-employed. Furthermore, market opportunities, investor relationships,
and risk approaches positively influence students' entrepreneurial intentions.

Keywords: Students Entrepreneurial Intention, Theory of Planned Behavior, Theory of Reasoned Action, Factor
Analysis, Multiple Linear Regression.

Introduction business players, the micro, small, and medium

– sized enterprises (MSMEs) make up 99.6
The Philippines in economic perspective, is percent of all registered business in the country
considered to be an entrepreneurial country. and employ around 62.80% of the working
Looking at the Philippine outlook for the population as of 2016. (Bureau of Small and

This work is licensed under a Creative Commons Attribution 4.0 International License. The license permits unrestricted
use, distribution, and reproduction in any medium, on the condition that users give exact credit to the original author(s)
and the source, provide a link to the Creative Commons license, and indicate if they made any changes.
Medium Enterprise Development, 2016) The in entrepreneurial activities. This suggests that
number of businesses continues to grow and people believe that they have the capabilities to
Filipino entrepreneurs influences other Filipinos establish a business leading to have a low fear of
to be empowered in establishing their own failing in their business start – ups.
enterprise. However, Filipino entrepreneurs The Millennial generation in the Philippines is a
experience bottlenecks in starting a business. strong factor since 45 percent of Filipino
Some of the current problems they encounter entrepreneurs in the start – up phase belongs to
nowadays according to Concepcion III (2016), the age group of 18 to 34 years old. According
are the inadequate access to technology, to Reyes (2015) from BusinessMirror, majority
financing and capital related issues, marketing, of the entrepreneurs in the start – up phase are
and logistics problems among others. MSMEs mostly high-school graduates. Start-up
often lack resources and are often experienced businesses in the Philippines are also initiated by
unexpected circumstances regarding the said Filipinos with college and graduate degrees. In
issues. Asia Pacific Study (APS) as cited by Amoros &
The entrepreneurial challenges and issues create Bosma (2013), regarding entrepreneurial
reluctance to start-up business in the Philippines attitudes show a high percentage of
not to mention that there are several business entrepreneurial intention. In addition to the
requirements needed to establish a business in statistics, there are around 10 percent Filipinos
the country. Due to this, majority of the in established businesses have college and
population preferred to enter employment over postgraduate degrees.
establishing their own business. Despite this, the Theoretical Foundation
researchers believe that establishing a business
can still be an option for fresh graduates as an In the study of Kolveried in 1996 as cited by
alternative to employment since it can also Kolvereid & Isaken (2006), he identified reasons
achieve personal and financial independence. In for choosing self – employment over
2014, the annual employment rate was estimated organizationally employed as a career and one of
roughly around 93.2 percent and the annual the factors is intention. In 1991, Ajzen as cited
unemployment rate is at 6.8 percent. Out of the by Thomas (2013) defined intention as
62.2 million estimated population of 15 years old influencer that contribute to a behavior.
and over in 2014, there are only about 40.0 According to Ajzen, the seven (7) factors that
million labor force, hence, the Annual Labor contribute to intention are subjective norms,
Force Participation (LFPR) is 64.4 percent. normative beliefs, attitude toward behavior,
(Philippine Statistics Authority, 2014) These behavioral beliefs, and actual behavioral control.
implies that people can still opt to enter In the study of Kolvereid & Isaken in 2006, the
entrepreneurial field over employment. intention to become self-employed reflects on
the attitude and subject norm. The Theory of
The potential on choosing entrepreneurial career Reasoned Action (TRA) and Theory of Planned
as an option over employment Filipinos is high. Behavior (TPB) are some concepts relating to
Amoros & Bosma (2013), the authors of the self – employment that determine persons’
Global Entrepreneurship Monitor 2013 Global attitude and believes towards self – employment.
Report stated that Filipinos regard The Theory of Planned Behavior suggest that
entrepreneurship ““as a reliable means to the intentions from individuals to become self-
improve one’s economic and social standing.” employed are determined by attitude and
The report also emphasize that Filipinos have subjective norm. In addition, the TPB is an
high regard on entrepreneurship, with 86 extension of the Theory of Reasoned Action
percent expressing interest in entrepreneurship which includes Perceived Behavioral Control
as a good career choice. The huge population (PBC) as one of the antecedents of behavior and
with high educational attainment and the intentions. The Perceived Behavioral Control is
growing consumption expenditure in the similar to self-efficacy. However, self-efficacy
domestic market motivate the people to engage

22

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

may be the preferable construct, since it is more favorable or unfavorable evaluation of the
precise and clearly defined. In addition, it has behavior in question while the subjective norms
also been found to accurately predict behavioral denotes to the perceived social pressure to act or
intentions (Armitage and Conner, 2001). not to act the behavior. The Theory of Planned
Behavior is typically an extension of the Theory
In the concept of self- employment, there were
of Reasoned Action that includes Perceived
four (4) different entrepreneurial self-efficacy
Behavioral Control (PBC) which is considered as
factors identified and expected to be significantly
an additional antecedent of behavior and
and positively related with self – employment
intentions. The PBC perceived ease or difficulty
intentions and these are the risk – taking
of performing the behavior, hence, it would
approach, opportunity recognition, investor
allow prediction of behaviors that were not
relationships, and economic management.
under the complete volitional control which
According to the TPB, behavior is not only
results to the addition of PBC as variable in the
determined by intentions, but also by self-
TPB. In general, the relative importance of
efficacy which can be seen in the Perceived
attitude, subjective norm and perceived
Behavioral Control (PBC). Self-employment or
behavioral control in the prediction of
starting a business, are intentional and thus best
behavioral intentions is expected to vary across
predicted by intentions toward the behavior. In
behaviors and situations. The antecedents of
the uncertain, changing, and competitive
attitude, subjective norm and perceived
environment of new venture creation, many
behavioral control are corresponding beliefs
researchers assume and hypothesize that self –
reflecting the underlying cognitive structure.
employed individuals or entrepreneurs prosper
on a strong sense of personal self-efficacy to In determining the entrepreneurial intention of
implement their visions and a keen eye for an individual, the capability in terms of
innovation to identify new products or services knowledge, abilities, skills, and competencies
and new market. should be considered as well. As for individual
skills, some researchers agree that skills and
According to Cassar and Friedman (2009), self –
competencies play significant role in the
efficacy describes an individual’s “belief that
determination of attitudes. In 1996, Kolveried
he/she can perform tasks and fulfill roles, and is
argues that “attitudes mediate the relationship
directly related to expectations, goals, and
between skills and entrepreneurial intention
motivation.” Stajkovic and Luthans (1998) also
which are coherent with the assumption of
emphasized that high self-efficacy correlates
Ajzen and Fishbein in 1980 who stated that
with work-related performance together with
“developed competencies have only an indirect
small business growth (Baum and Locke, 2004),
impact on specific intentions, by influencing
academic performance (Hacket and Betz, 1989;
some of the factors that are more closely linked
Luszczynska et al., 2005), and career choice
to them. Given the said theoretical framework,
(Lent and Hackett, 1987). Self-efficacy is
the researchers used seven (7) factors to predict
measured on two levels of specificity, either as
the entrepreneurial intention of the graduating
generalized self-efficacy or domain-specific
students studying business related degree at the
Entrepreneurial Self-Efficacy (ESE). In this
Lyceum of the Philippines University – Manila.
study, the researchers focused ESE measure
since it is situation-relevant. In terms of
Intention theories, one of the most used theories
that involves several theoretical constructs to Materials and Methods
explain and predict behavior is the Theory of Quantitative research was used as the research
Reasoned Action (TRA) by Ajzen and Fishbein design for the study. The researchers sent out a
(1980). Based on the TRA, behavioral intentions survey questionnaire to seventy - two (72)
can be determined by the attitude towards the graduating students from Lyceum of the
behavior, and subjective norm. The attitude Philippines University who currently pursue
refers to the degree to which an individual has Bachelor’s degree in Accountancy, Business

23

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

Administration and Customs administration. subjective norm (care about people’s opinion
The sample population was determined through and people’s opinion), and four (4) for self-
G Power software and was gathered through efficacy (Risk, Investor, Opportunity and
purposive sampling. The responses to the Economy). Logistic regression was used to
questionnaire were collected and distributed to predict the likelihood of the graduating students
72 graduating students with a business – related to be self-employed after graduation. The
degree from the Lyceum of the Philippines proposed model is: y= α+β_1 x_1+ β_2
University – Manila. The MS Excel software was x_2+β_3 x_3+⋯+ where y = intention, α =
used as a tool for tabulation of raw data while intercept, and β_n x_n = coefficients for (age,
the IBM SPSS Software was used for gender, GPA, no. of semester to graduate,
intermediate statistics and to test the researchers’ attitude, subjective norm and self-efficacy).
hypotheses.
The researchers also used Multiple Linear
Building from the model of Kolvereid and Regression Model to determine the significant
Isaksen, the questionnaire originally consists of relationship among the all variables to the
five questions for attitude, six for subjective behavioral intention of the respondents to be
norm and 18 for self-efficacy or perceived self – employed:
behavioral control. One question “How likely
are you to be working full-time for a new
business in one year from now?” was included to Intention = 14.603 -.357(Age) -.182(GNDR) -
provide a scale for the student’s intention to be .101(CVST) +.034(BUSBCK) -.620(NCR) -
self-employed after graduation. In addition, the .481(WSTD) +.286(SCHL) -.563(SEMS) -
researchers utilized the Likert scale to identify .071(GPA) +.168(BUSCAR) +.037(PPLOPS) -
the range and interpretation of each result. All .299(CREOPS) +.019(MKTOPS)
questions were measured using seven – point +.598(INVREL) +.159(RSKAPP) -
Likert Scale. The descriptive equivalent used for .010(CSFMGT)
the study was computed based on the
recommended 7-point scale range which is 1.00
– 1.85 as Almost Never True; 1.86 – 2.71 as The interpretation of the codes where: GNDR
Usually Not True; 2.72 – 3.57 as Rarely True; (Gender) where (1) = Male and (0) = Female;
3.58 – 4.43 as Occasionally True; 4.44 – 5.29 as CVST (Civil Status) where (1) = Single and (0)
Often True; 5.30 – 6.15 as Usually True; and 6.16 = Non - Single; BUSBCK (Business
– 7.00 as Almost Always True. Background) where (1) = Father and (2) =
Statistical Treatment of Data Mother; NCR (Location) where (1) = Originally
from Metro Manila and (0) = Originally from
To achieve parsimony, the proponents used Outside of Metro Manila; WSTD (Student
Factor Analysis (Principal Axis Factoring) in Status) (1) = Working Student and (0) = Non –
SPSS and arrived with only seven (7) factors to Working Student ; SCHL (Academic Standing)
predict intention to be self-employed: one (1) for where (1) = Scholar and (0) = Non – Scholar.
attitude (Business than Career), two (2) for

Results
Table 1. Demographic Profile of the Respondents
Demographics Variables Frequency Percent
Male 20 27.8
Gender
Female 52 72.2
BS Business Administration 8 11.1
Business Degree BS Accountancy 57 79.2
BS Customs Administration 7 9.7
Academic Standing Scholar 32 44.4

24

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 Non - Scholar 40 55.6
Single 68 94.4
Civil Status
Non - Single 4 5.6
19 years old 11 15.3
20 years old 29 40.3
21 years old 24 33.3
22 years old 5 6.9
Age
23 years old 0 0.0
24 years old 2 2.8
25 years old 1 1.4
NCR 42 58.3
Location
Non - NCR 30 41.7

Table 1 shows the demographic profile of the standing, more than half of the respondents are
respondents which shows that majority of the non – scholars with a total of 55.5%. In addition,
respondents are female comprising of 72.2% of most of the respondents have age ranging from
the total population of the respondents. Majority 19 – 21 years old and their home location is
of them are taking up BS Accountancy which is divided to 58.3% in the National Capital Region
79.2% and most of them are single having 94.4% and 41.7% of is located outside of Metro Manila.
of the population. In terms of academic

Table 2. Level of Likelihood in the Intention to be Self – Employed

Factors that Predict Intention to be Self - Employed Mean Interpretation
Attitude Business than Career 5.25 Often True
Subjective Norms People’s Opinion 4.70 Often True
Care about People’s Opinion 4.40 Occasionally True
Self - Efficacy Risk Approach 4.9 Often True
Investor Relation 4.6 Often True
Market Opportunity 5.1 Often True
Economy (Cashflow Management) 4.9 Often True
Total 4.83 Often True

As for the attitude towards career, results suggest risk, investor relation, market opportunity, and
that it is often true that respondents will enter economy affect the respondents’ intention to be
entrepreneurship over employment as career. In an entrepreneur or self – employed. To sum it
terms of the subjective norms, respondents up, it is often true that the intention of the
believe that it is often true that they people’s respondents to be self – employed is affected by
opinion affect their entrepreneurial intention, attitude, subjective norms, and self – efficacy.
but it is occasionally true that they care or The following tables shows the results of Factor
consider about people’s opinion. In addition, it Analysis and Logistic Regression.
is often true that self – efficacy factors such as

Table 3. Factor Analysis with Varimax Rotation of Attitudes toward Self-employment Intention
Business than Career Communality
(BUSCRR)
Eigenvalue 2.67
Cumulative % 53.32
I would rather own my own business than earn a higher .627 .394
salary employed by someone else (AT01)
I would rather own my own business than pursue another .761 .579
promising career (AT02)

25

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 I am willing to make significant personal sacrifices in order .656 .430
to stay in business (AT03)
I would work somewhere else only long enough to make .568 .323
another attempt to establish my own business (AT04)
I am willing to work more with the same salary in my own .611 .374
business, than as employed in an organization (AT05)
Eigenvalues and the percent variance explained are after varimax rotation. Kaiser–Meyer–Olkin measure of sampling
adequacy = 0.797. Barlett test of sphericity approx. chi-square = 86.07, df = 10, p ≤ .000.

As shown in Table 3, the factor analysis communality is satisfactory and there are no side
produced one component extracting items with loadings to warrant any concern. Factor’s scores
.70 or higher factor loading. The factor’s were calculated using the regression method.

Table 4. Factor Analysis with Varimax Rotation of Subjective Norm toward Self-employment
Intention
Care about People’s People’s opinion Communality
Opinion
(CREPPL) (PPLOPS)
Eigenvalue 3.14 1.61
Cumulative % 53.32 79.15
My closest family think that I should pursue a .011 .653 .426
career as self-employed (SN01)
My closest friends think that I should pursue a .228 .784 .666
career as self-employed (SN02)
People important to me think that I should .215 .845 .761
pursue a career as self-employed (SN03)
I care about the opinion of my closest family in .771 .155 .619
my choice of my employment status (SN02)
I care about the opinion of my closest friends in .876 .283 .847
my choice of my employment status (SN05)
I care about the opinion of the people who are .912 .035 .833
important to me in my choice of my
employment status (SN06)
Eigenvalues and the percent variance explained are after varimax rotation. Kaiser–Meyer–Olkin measure of sampling
adequacy = 0.717. Barlett test of sphericity approx. chi-square = 235.22, df = 15, p ≤ .000.

Factor analysis in the table resulted in two deemed satisfactory, and there are no side
components, with items having factor loadings loadings that raise concerns. The factor scores
of .70 or higher. The factors' communalities are were computed using the regression method.

Table 5. Factor Analysis with Varimax Rotation of Self-efficacy toward Self-employment

Intention
Risk Investor Market Cash Flow Commun
Approach Relation Opportunity Management ality
(RSKAPP) (INVREL) (MKTOPP) (CSFMGT)
Eigenvalue 10.645 1.728 1.218 1.038
Cumulative % 59.14 68.74 75.50 81.23
I can see new market opportunities for new .109 .301 .538 .127 .408
products/services (SE01)
I can discover new ways to improve existing .292 .123 .799 .072 .744
products/services (SE02)

26

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 I can identify new areas for potential growth .192 .170 .788 .080 .694
(SE03)
I can design products/services that solve .185 .282 .768 .241 .762
current problems (SE04)
I can now create products/services that .384 .542 .431 .344 .746
fulfill unmet customer needs (SE05)
I can now bring a product/service concept .297 .653 .388 .329 .773
to a market in a timely manner (SE06)
I can now be able to obtain sufficient funds .178 .682 .315 .298 .684
for future growth (SE07)
I can now develop and maintain favorable .316 .832 .225 .292 .929
relationships with potential investors (SE08)
I can now develop relationships with key .482 .719 .222 .040 .800
people who are connected to capital sources
(SE09)
I can now identify potential sources of .637 .573 .257 .138 .819
funding for investments (SE10)
I can now work productively under .652 .345 .306 .270 .711
continuous stress, pressure and conflict
(SE11)
I can now tolerate unexpected changes in .677 .463 .264 .209 .786
business conditions (SE12)
I can now persist in the face of adversity .764 .344 .275 .270 .851
(SE13)
I can now take calculated risks (SE14) .773 .148 .193 .441 .852
I can now make decisions under uncertainty .768 .238 .238 .360 .834
and risk (SE15)
I can now manage expenses (SE16) .311 .196 .168 .693 .644
I can now control business costs (SE17) .388 .329 .178 .666 .734
I can now manage cash flows (SE18) .220 .181 .120 .939 .978
Eigenvalues and the percent variance explained are after varimax rotation. Kaiser–Meyer–Olkin measure of sampling
adequacy = 0.888. Barlett test of sphericity approx. chi-square = 1,339.86, df = 153, p ≤ .000.

As shown in 5, the factor analysis produced four satisfactory and there are no side loadings to
components extracting items with .70 or higher warrant any concern. Factor’s scores were
factor loading. The factors communalities are calculated using the regression method.

Table 6. Linear Regression Model Summary

Model Summary
Model R R Square Adjusted Std. Error Change Statistics
R Square of the R Square F Change df1 df2 Sig. F
Estimate Change Change
1 .743a ,552 ,422 1,1899 ,552 4,243 16 55 ,000
a. Predictors: (Constant), CSFMGT, GNDR, PPLOPS, AGE, CVST, NCR, GPA, BUSBCK, WSTD, SCHL,
INVREL, BUSCAR, SEMS, CREOPS, MKTOPP, RSKAPP

Table 7. Analysis of Variance

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 96,125 16 6,008 4,243 .000b
Residual 77,875 55 1,416
Total 174,000 71
a. Dependent Variable: INTN
b. Predictors: (Constant), CSFMGT, GNDR, PPLOPS, AGE, CVST, NCR, GPA, BUSBCK,
WSTD, SCHL, INVREL, BUSCAR, SEMS, CREOPS, MKTOPP, RSKAPP

27

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 Table 8. Linear Regression Coefficients
Coefficientsa

Model Unstandardized Standardized t Sig. 95.0% Confidence

Coefficients Coefficients Interval for B
B Std. Beta Lower Upper
Error Bound Bound
1 (Constant) 14,603 3,580 4,079 ,000 7,428 21,778
AGE -,357 ,140 -,263 -2,551 ,014 -,638 -,077
GNDR -,182 ,373 -,052 -,486 ,629 -,929 ,566
CVST -,101 ,683 -,015 -,148 ,883 -1,470 1,269
BUSBCK ,034 ,313 ,011 ,109 ,914 -,593 ,661
NCR -,620 ,297 -,197 -2,087 ,041 -1,215 -,025
WSTD -,481 ,517 -,097 -,930 ,356 -1,516 ,555
SCHL ,286 ,350 ,091 ,815 ,418 -,417 ,988
SEMS -,563 ,181 -,349 -3,119 ,003 -,925 -,201
GPA -,071 ,434 -,018 -,165 ,870 -,942 ,799
BUSCAR ,168 ,145 ,131 1,164 ,249 -,121 ,458
PPLOPS ,037 ,135 ,033 ,275 ,784 -,234 ,309
CREOPS -,299 ,129 -,276 -2,316 ,024 -,557 -,040
MKTOPP ,019 ,170 ,014 ,112 ,912 -,322 ,360
INVREL ,598 ,171 ,497 3,503 ,001 ,256 ,941
RSKAPP ,159 ,221 ,116 ,720 ,474 -,283 ,601
CSFMGT -,010 ,190 -,008 -,055 ,956 -,391 ,370
a. Dependent Variable: INTN

Table 8 shows that only the predictors age, be self-employed, all things held constant.
location, semester to finish, care about the Respondents who are not from Metro Manila
opinion of others and investor relations are the more likely intends to be self-employed, ceteris
only significant predictors of intention to self- paribus. Respondents who spent more semesters
employment. The multiple regression model to finish their degree less likely intends to be self-
with all 16 predictors produced R² = .552, F(16, employed, ceteris paribus. As respondents care
55) = 4.243, p ≤ .001. As can be seen in the R for other people’s opinion the less likely they
results above, age of respondents, whether they intend to be self-employed, ceteris paribus and
are originally from NCR, number of semesters Investor relations positively affect respondent’s
they finish their degree, how they care about the intention to be self-employed, while respondents
opinion of others and their relationship with who believe that they can manage their cash
investors have very significant positive flows have less intention to be self-employed,
regression weights (p ≤ .05). This means that as everything else held constant.
the students gets older, he has less intention to

28

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 Equation 1: Bonferonni Outlier Test and Variance Inflation Factor

The Bonferonni outlier test above shows that predictor variables, hence there is no strong
observation #8 is an outlier, but as of yet we multicollinearity which is problematic.
have not assessed whether it influences the The below diagnostics shows Cook’s distance of
regression line - the test is statistically significant, less than 1 which means the outlier identifies
p ≤ .05 The variance inflation factor above does not influence the model.
shows acceptable correlation among the

Figure 1. Basic Diagnostic for Residuals

29

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 Equation 2: Bonferonni Outlier Test and Variance Inflation Factor

The above Breusch-Pagan test of employed, ceteris paribus. In addition,

heteroscedasticity shows a p value of .9966 respondents who are not from Metro Manila
which means that the error terms are more likely intends to be self-employed, ceteris
homogeneous which makes our model a good paribus. Respondents who spent more semesters
fit. to finish their degree less likely intends to be self-
employed, ceteris paribus.
Respondents who are not working students
Discussion more likely intends to be self-employed, ceteris
With the help of the several statistical paribus. Scholar students more likely intends to
treatments, the model and findings have be self-employed, ceteris paribus. This is because
identified and came up with the following scholars are equipped with reasonable
conclusions that as the students gets older, he knowledge and skills from business school
has less intention to be self-employed, all things which creates readiness to be an entrepreneur
held constant. One of the possible reasons for after graduation. Another implication is the need
this finding is because as you grow old, you tend for achievement that scholars have in terms of
to secure your financial stability through their personality. However, this contradicts with
employment rather risking a life through the findings that for every point increase in GPA
entrepreneurship. While employees do not often of the respondents, the less likely they intend to
have the ability to take job-protected leaves for be self-employed, ceteris paribus. Pozin (n.d.)
the purpose of starting a business, governments stated in his article at Inc. that some of the most
often require that such leaves be permitted successful people have gone amazing careers in
surrounding the birth of a child. Such leaves, if business and public life despite not having high
sufficiently long, could in principle be used to grades or GPA. He stated that many
work on a business idea while retaining the entrepreneurs were lousy students. Some of the
option to return to one’s previous job. example of the most famous entrepreneurs
Essentially, job-protected leaves reduce the performed marginally in college and dropped
frictions to entrepreneurial experimentation out without even graduating are Bill Gates,
(Manso, 2011; Kerr, Nanda, and Rhodes-Kropf, which is a philanthropist and the richest person
2014). on earth, dropped out of Harvard during his
Junior year; Mark Zuckerberg did that same after
Findings suggest that female respondents are
just two years; Steve Jobs dropped out of school
more likely to be self-employed, ceteris paribus. before graduating. Thomas Jefferson dropped
As supported by Dawson, Henley, & Latreille in out after only a few months of formal education.
2009 in their study about self – employment, it
Walt Disney, Richard Branson, Elton John,
stated that “women are significantly more likely
James Cameron, Frank Lloyd Wright all dropped
than men to choose self-employment in order to out of school to pursue their passions. These are
balance work and home commitments.” In just a few names on a very long list of brilliant or
addition, respondents who are no longer single
ambitious individuals who gave dreary
more likely intends to be self-employed, ceteris
performances in the classroom but
paribus. Respondents whose father has business outperformed everyone in real life.
background more likely intends to be self-

30

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

Conclusion Baum, R.J. & Locke, E.A. (2004) The
Relationship of Entrepreneurial Traits, Skill, and
In conclusion, this research highlights several Motivation to Subsequent Venture Growth.
key factors influencing the entrepreneurial Journal of Applied Psychology, 89(4), 587–598.
intentions of graduating students. Those who https://doi.org/10.1037/0021-9010.89.4.587
prioritize owning a business over a promising
career are more likely to intend to be self- Bureau of Small and Medium Enterprise
employed. The positive influence of other Development. (2016). MSME Development in
people's opinions on respondents' intentions to the Philippines. Makati: Department of Trade
be self-employed is evident. However, as and Industry. Retrieved from
respondents become more concerned about http://www.dict.gov.ph/wp-
what others think, their likelihood of intending content/uploads/2016/07/8.-SMEs-in-the-
to be self-employed diminishes. Moreover, Philippines-_Empowering-LGUs-through-ICT-
market opportunities, investor relationships, and Partnership-with-SUCs.pdf
a positive risk approach positively impact Cassar, G., & Friedman, H. (2009). Does Self -
respondents' intentions to be self-employed. Efficacy affect Entrepreneurial Investment?
Conversely, those who believe they can manage Strategic Entrepreneurship Journal, 3(3), 241-260.
their cash flows exhibit lower intentions to be https://doi.org/10.1002/sej.73
self-employed. These findings shed light on the
complex interplay of attitudes, perceptions, and Concepcion III, J.M. (2016). Youth
external factors that shape entrepreneurial Entrepreneurship in the Philippines: Issues and
intentions among young graduates in our Challenges. Retrieved from
entrepreneurial nation. https://docplayer.net/21074139-Youth-
entrepreneurship-in-the-philippines-issues-and-
challenges.html
References Dawson, C., Henley, A., & Latreille, P. (2009).
Ahn, T. (2010). Attitudes Toward Risk and Self- Why Do Individuals Choose Self-Employment?
employment of Young Workers. Labour IZA. Forschungsinstitut zur Zukunft der Arbeit
Economics, 17(2), 434-442. Institute for the Study of Labor. Retrieved from
https://doi.org/10.1016/j.labeco.2009.06.005 http://ftp.iza.org/dp3974.pdf

Amoros, J., & Bosma, N. (2013). Global Densberger, K. (2014). The Self - Efficacy and
Entrepreneurship Monitor: 2013 Global Report. Global Risk - Propensity of Entrepreneurs. Journal of
Entrepreneurship Monitor. Global Enterprising Culture, 22(4), 437-462.
Entrepreneurship Research Association. https://doi.org/10.1142/S0218495814500186
Retrieved from Feng, Y., & Rauch, J. (2015). The Impact of
https://www.gemconsortium.org/report/gem- Entrepreneurial Risk Aversion on Wages in
2013-global-report General Equilibrium. NBER Working Paper.
Astebro, T., Herz, H., Nanda, R., & Weber, R. https://doi.org/10.3386/w20992
(2014). Seeking the Roots of Entrepreneurship: Hansemark, O. (2003). Need for Achievement,
Insights from Behavioral Economics. Journal of Locus of Control and the Prediction of Business
Economic Perspectives, 28(3), 49-70. Startups: A Longitudinal Study. Journal of
https://doi.org/10.1257/jep.28.3.49 Economic Psychology, 24(3), 301-319.
Aulakh, P.S., & Kotabe. M (2008). Institutional https://doi.org/10.1016/S0167-
changes and organizational transformation in 4870(02)00188-5
developing economies. Journal of International Hayton, JC & Cacciotti, G. (2013). Is there an
Management, 14(3), 209–216. entrepreneurial culture? A review of empirical
https://doi.org/10.1016/j.intman.2008.04.001 research. Entrepreneurship and Regional Development,
25(9–10), 708–731.

31

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

 https://doi.org/10.1080/08985626.2013.86296 Philippine Statistics Authority. (2014). 2014
2 Annual Labor and Employment Status
(Comparative Annual Estimates for 2014 and
Kerr, S., Kerr, R., & Xu, T. (2017). Personality
2013). Philippine Statistics Authority. Retrieved
Traits of Entrepreneurs: A Review of Recent
from https://psa.gov.ph/content/2014-annual-
Literature. Retrieved from
labor-and-employment-status-comparative-
https://www.hbs.edu/faculty/Publication%20
annual-estimates-2014-and-2013
Files/18-047_b0074a64-5428-479b-8c83-
16f2a0e97eb6.pdf Pozin, I. (n.d.). Why Many 'C' Students End Up
Most Successful. Retrieved from
Kerr, W., Nanda, R., & Rhodes-Kropf, M.
https://www.inc.com/ilya-pozin/why-many-
(2014). Entrepreneurship as Experimentation†.
students-with-bad-grades-end-up-
Journal of Economic Perspective, 28(3), 25-48.
successful.html
Kolvereid, L., & Isaksen, E. (2006). New
Rappler. (2014). Infographic: Filipino SMEs at a
Business Start - up and Subsequent Entry into
Glance. Rappler. Retrieved from
Self - Employment. Journal of Business Venturing,
https://www.rappler.com/brandrap/create-
21(6), 866 -885.
success/146187-globe-mybusiness-filipino-sme
https://doi.org/10.1016/j.jbusvent.2005.06.008
Reyes, R. (2015). Filipinos view
Lakovleva, T., Kolvereid L., & Stephan, P.
entrepreneurship positively. BusinessMirror.
(2011) Entrepreneurial intentions in developing
Retrieved from
and developed countries. Education + Training,
https://businessmirror.com.ph/filipinos-view-
53(5), 353–370.
entrepreneurship-positively/
https://doi.org/10.1108/00400911111147686
Hackett, G. & Betz, N. (1989). An Exploration
Luszczynska, A., Gutiérrez-Doña, B. &
of the Mathematics Self-Efficacy/Mathematics
Schwarzer, R. (2005). General self-efficacy in
Performance Correspondence. Journal for Research
various domains of human functioning:
in Mathematics Education, 20.
Evidence from five countries. International Journal
https://doi.org/10.2307/749515
of Psychology, 40, 80-89.
https://doi.org/10.1080/00207590444000041 Stajkovic, A. & Luthans, F. (1998). Self-Efficacy
And Work-Related Performance: A Meta-
Lent, R. W., & Hackett, G. (1987). Career self-
Analysis. Psychological Bulletin, 124(2), 240-261.
efficacy: Empirical status and future directions.
https://doi.org/10.1037/0033-2909.124.2.240
Journal of Vocational Behavior, 30(3), 347-382.
https://doi.org/10.1016/0001-8791(87)90010-8 Thomas, D. (2013). Factors that Influence
College Completion Intention of Undergraduate
Manso, G. (2011). Motivating Innovation.
Students. The Asia - Pacific Education Researcher,
Journal of Finance, 66(5). Retrieved from
23(2), 225-235.
https://onlinelibrary.wiley.com/doi/abs/10.11
https://doi.org/10.1007/s40299-013-0099-4
11/j.1540-6261.2011.01688.x
Manso, G. (2011) Motivating Innovation. Journal
of Finance, 66, 1823-1869.
http://dx.doi.org/10.2139/ssrn.891514

32

www.ejtas.com EJTAS 2023 | Volume 1 | Number 5

View publication stats