Factors affecting entrepreneurial intention of high quality program students of Banking University HCMC, 2018

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

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TRUONG LY QUYNH NHI

FACTORS AFFECTING ENTREPRENEURIAL

INTENTION OF HIGH QUALITY PROGRAM

STUDENTS OF BANKING UNIVERSITY HCMC

BACHELOR’S THESIS

SPECIALIZED IN BUSINESS MANAGEMENT

CODE: 7340101

HO CHI MINH CITY, 2018

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

--------------------

TRUONG LY QUYNH NHI

FACTORS AFFECTING ENTREPRENEURIAL

INTENTION OF HIGH QUALITY PROGRAM

STUDENTS OF BANKING UNIVERSITY HCMC

BACHELOR’S THESIS

SPECIALIZED IN BUSINESS MANAGEMENT

CODE: 7340101

SUPERVISOR

M.A. DINH THU QUYNH

HO CHI MINH CITY, 2018

i

ABSTRACT

Most countries in the world have plans to support the formation of small businesses,

especially the policy of encouraging students to start their own business. This can be

explained by the fact that researchers hope that well-educated entrepreneurs will create

businesses which has a faster and stronger growth than the others. To encourage

graduates to pursue entrepreneurship, researchers believe that there should be more

stimuluses while they were still undergraduates. Entrepreneurial intention has an effect

on students’ future attitude towards entrepreneurship. This study’s purpose is to

understand how attitude toward the behavior, subjective norm and perceived behavioral

control and entrepreneurship education affect entrepreneurial intention of high quality

(HQ) program students of Banking University Ho Chi Minh City (BUH).

This study conducted in Banking University Ho Chi Minh City through two steps,

qualitative research and quantitative research. Qualitative research conducted through

group discussions with high quality program students in Banking University.

Quantitative research conducts on the application of techniques such as Cronbach's

Alpha coefficient assay, exploratory factor analysis (EFA), correlation of 5 variables

test, ANOVA and multivariate regression. This study used statistical data processing

software SPSS 20 to run the tests. Based on the research result, the determinant factors

that affect entrepreneurial intention of HQ program students are attitude toward the

behavior, subjective norm and perceived behavioral control and entrepreneurship

education, in which the most influential factor is attitude toward the behavior and the

least impact factor is perceived behavioral control.

From the result of this study, we have come to some new suggestions for the school

and policy makers. These suggestions are training and supporting activities,

propaganda campaigns. They can inspire and create motivation for students’

entrepreneurial intention, especially among high quality program students.

ii

DECLARATION OF AUTHENTICITY

I the undersigned declare that all material presented in this paper is my own work

or fully and specifically acknowledged wherever adapted from other sources.

I understand that if at any time it is shown that I have significantly misrepresented

material presented here, any degree or credits awarded to me on the basic of that

material may be revoked.

I declared that all statements and information contained herein are true, correct and

accurate to the best of my knowledge and belief.

Ho Chi Minh City, December 2018

Truong Ly Quynh Nhi

iii

ACKNOWLEDGEMENT

I would like to express my sincere appreciation to Mrs. Dinh Thu Quynh for her

valuable guidance and patience during this period of writing the dissertation.

Sometimes, I get discouraged and confused about what to do next or where to go, her

specific comments, useful advices, and motivations make me more confident and

overcome the initial difficulties to complete this research. Once again, I really

appreciate her enthusiasm and whole-hearted guidance. I am highly happy and

fortunate to carry out this study under her supervisor.

Special thanks to my family, who are the best supporters for me during my study

and during my life. Next, my deeply thanks come to all of my friends who alway

support me during time I study in university I am thankful for the times that they

have listened to me, advised me and even comforted me. Their kindly help, care

and motivation gave me strength and lift me up all the trouble for the rest of my

life.

I also thank for assistance of lecturers in Management Department and also in Office of

Academic Affairs during a period of studying for a bachelor degree at Banking

University of Ho Chi Minh city.

iv

TABLE OF CONTENTS

ABSTRACT.........................................................................................................i

DECLARATION OF AUTHENTICITY.............................................................ii

ACKNOWLEDGEMENT................................................................................. iii

TABLE OF CONTENTS ...................................................................................iv

LIST OF ABBREVIATION..............................................................................vii

THE LIST OF TABLES.................................................................................. viii

THE LIST OF FIGURES ...................................................................................ix

CHAPTER 1: INTRODUCTION........................................................................1

1.1. The necessity of the researching.................................................................1

1.2. Objectives and exploration questions............................................................3

1.2.1. Objectives of the thesis ...........................................................................3

1.2.2. Exploration questions..............................................................................4

1.3. Scope of the study ........................................................................................4

1.4. Research methodology .................................................................................5

1.5. A significant of the exploration ....................................................................5

1.6. A structure of the thesis................................................................................6

SUMMARY........................................................................................................7

CHAPTER 2: LITERATURE REVIEW .............................................................8

2.1. Entrepreneur, Entrepreneurship, Entrepreneurial Intention ...........................8

2.1.1. Entrepreneur..............................................................................................8

2.1.2. Entrepreneurship .....................................................................................10

2.1.3. Entrepreneurial Intention .........................................................................11

2.2. Theory of Planned Behavior and Shapero’s Entrepreneurial Event model ..13

v

2.2.1. Theory of Reasoned Action (TRA)..........................................................13

2.2.2. Theory of Planned Behavior (TPB) .........................................................15

2.3. Review of relevant theoretical models........................................................18

2.3.1. Model by Francisco Linan (2004)............................................................18

2.3.2. Model from Ahmed et al. (2010) .............................................................19

2.3.3. Model by Sofia Karali (2013)..................................................................20

2.3.4. Model from Nguyen Doan Chi Luan (2012)............................................21

2.3.5. Model from Phan Anh Tu and Giang Thi Cam Tien (2015).....................22

2.4. The current status of entrepreneurship in Vietnam and Banking University23

2.5. Proposed theoretical framework .................................................................26

2.5.1. Attitude toward the behavior ...................................................................27

2.5.2. Subjective norm.......................................................................................30

2.5.3. Perceived behavioral control....................................................................32

2.5.4. Entrepreneurship education .....................................................................34

SUMMARY......................................................................................................36

CHAPTER 3: RESEARCH METHODOLOGY................................................38

3.1. Research’s progress....................................................................................38

3.2. Scale construction and questionnaire ..........................................................39

3.2.1. Operational definition and variables measurement ..................................39

3.2.2. Qualitative interview, form the draft scale ...............................................41

3.2.3. Questionnaire design ...............................................................................46

3.3. Sampling design .........................................................................................47

3.3.1. Sample size selective ...............................................................................47

3.3.2. Sampling method and survey subjects .....................................................47

3.4. Statistic process..........................................................................................48

3.4.1. Measure the scale ....................................................................................48

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3.4.2. Evaluate the regression of the model .......................................................51

SUMMARY......................................................................................................53

CHAPTER 4: RESULT’S ANALYSIS AND DISCUSSION............................55

4.1. Descriptive statistics analysis and data examination ...................................55

4.2. Result of Cronbach’s Alpha........................................................................58

4.2.1. Evaluating attitude toward the behavior scale ..........................................58

4.2.2. Evaluating subjective norm scale.............................................................59

4.2.3. Evaluating perceived behavioral control scale .........................................60

4.2.4. Evaluating entrepreneurship education scale ...........................................61

4.2.5. Evaluating entrepreneurial intention scale ...............................................61

4.3. Result of exploratory factor analysis (EFA)................................................62

4.3.1. Factor analysis for independent variables ................................................62

4.3.2. Factor analysis for dependent variables ...................................................66

4.4. Correlation analysis....................................................................................70

4.5. Result of regression analysis.......................................................................72

SUMMARY......................................................................................................75

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ........................76

5.1. Conclusion .................................................................................................76

5.2. Recommendations of the study...................................................................79

5.3. Limitations of the study..............................................................................81

5.4. Recommendations for future study .............................................................82

SUMMARY......................................................................................................83

REFERENCES..................................................................................................84

APPENDIX.......................................................................................................89

vii

LIST OF ABBREVIATION

Abbreviation Meaning

ANOVA Analysis of variance

AT Attitude toward the behavior

BUH Banking University of Ho Chi Minh

City

EE Entrepreneurship education

EFA Exploratory Factor Analysis

EI Entrepreneurial intention

HCMC HCMC Ho Chi Minh City

HQ High quality

KMO Kaiser-Meyer-Olkin

PBC Perceived Behavioral Control

SEE Shapero’s Entrepreneurial Event model

SN Subjective Norm

SPSS Statistical Package for the Social

Science

TPB Theory of Planned Behavior

TRA Theory of Reasoned Action

viii

THE LIST OF TABLES

Table 3. 1. Encode scale .............................................................................................43

Table 4. 1. Descriptive statistics analysis....................................................................56

Table 4. 2. Result of the reliability assessment of attitude toward the behavior scale ..58

Table 4. 3. Result of the reliability assessment of subjective norm scale .....................59

Table 4. 4. Result of the reliability assessment of perceived behavioral control scale .60

Table 4. 5. Result of the reliability assessment of entrepreneurship education scale....61

Table 4. 6. Result of the reliability assessment of entrepreneurial intention scale........61

Table 4. 7. The independent variables analysis’s result in the first time (EFA test).....62

Table 4. 8. The result of KMO and Bartlett’s Test for independent variables in the

second time (EFA test) ...............................................................................................63

Table 4. 9. Eigenvalues and covariance deviations for independent variables in the

second time (EFA test) ...............................................................................................64

Table 4. 10. Result of independent factor analysis with Principal Varimax rotation

method in the second time (EFA test).........................................................................65

Table 4. 11. The result of KMO and Bartlett’s Test for dependent variables...............66

Table 4. 12. Eigenvalues and covariance deviations for dependent variables ..............67

Table 4. 13. The factor rotation matrix of the dependent variable ...............................68

Table 4. 14. Result of the reliability assessment of subjective norm and perceived

behavioral control scale ..............................................................................................69

Table 4. 15. Pearson correlation analysis....................................................................70

Table 4. 16. Model summary ......................................................................................72

Table 4. 17. ANOVA analysis....................................................................................73

Table 4. 18. Result of dependent variables’ linear regression......................................73

Table 4. 19. Summary the testing result of hypothesis about entrepreneurial intention of

HQ program students of BUH ....................................................................................74

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THE LIST OF FIGURES

Figure 2. 1. Theory of Reasoned Action (TRA)..........................................................14

Figure 2. 2. Shapero’s Entrepreneurial Event (Shapero and Sokol 1982) ....................16

Figure 2. 3. Theory of Planned Behavior ....................................................................17

Figure 2. 4. Entrepreneurial intention model by Francisco Linan ................................18

Figure 2. 5. Model from Ahmed et al..........................................................................19

Figure 2. 6. Model from Sofia Karali..........................................................................20

Figure 2. 7. Entrepreneurial Intention Model by Nguyen Doan Chi Luan ...................21

Figure 2. 8. Entrepreneurial intention model by Phan Anh Tu ....................................22

Figure 2. 9. Research model .......................................................................................26

Figure 3. 1. Research's progress..................................................................................38

Figure 4. 1. Experience in business (N=280) ..............................................................57

Figure 4. 2. Family Own Business (N=280)................................................................58

1

CHAPTER 1: INTRODUCTION

1.1. The necessity of the researching

Nowadays, business has become a key factor in the development of all nations

since the start of globalization. Entrepreneurship has played a key role in economic and

social development since the start of globalization. Entrepreneurship associated

benefits, such as self-employment, increased living standards, poverty reduction, social

and economic advancement, have become more and more recognizable at both

individual and societal levels. Nowadays, the new generation – the millennials – tends

to choose entrepreneurship as their profession and becoming self-employed has

become a more preferred choice (Wang, Wei and John, 2011).

The Vietnamese culture supports entrepreneurs. Vietnamese government is also

making a lot of effort to support entrepreneurs and startups. According to Vietnam

Chamber of Commerce and Industry’s 2017 report, 63.4% of adults want to become

entrepreneurs. Having recognized the importance of entrepreneurial mindset

development guidance for the youth, Ministry of Science and Technology founded

Startup Vietnam Foundation, which aim to motivate entrepreneurships and startups, in

2014. This demonstrate how important entrepreneurships are to the national economy

development because small and medium enterprises contributed 45% of GDP, 31% of

the government yearly budget and 90% of new employment creations (Nguyen Hoa,

2016).

The Government of Vietnam has undertaken several initiatives and instituted policy

measures to foster a culture of innovation and entrepreneurship in the country,

especially for undergraduates. Undergraduates are the future of the nation and well￾trained students have the potential to be successful entrepreneurs in the future over

untrained ones. However, most new graduates tend to apply at currently active

enterprises. Very few others dare to become entrepreneurs. The reason behind this is