ENTREPRENEURIAL INTENTIONS OF UNIVERSITY GRADUATE STUDENTS: A COMPARATIVE STUDY FOR STRATEGY FORMULATION

Abstract

Pakistan which is continuously moving up the ladder of population growth and has now become the fifth most populous country in the world. Economic survey (2021-22) of Pakistan indicates that population of Pakistan has reached 224.78 million. This has shaped a population resource disparity and is well above the carrying capability of its means. The report given by United Nations Development Program (UNDP), Pakistan in 2020 on National Human Development (NHD), states that country now has the largest proportion of youth in its population around the globe. This large population is putting a lot of pressure on the economy of the country and the rising number of unemployed. Self-employment is a phenomena that has the potential to revolutionize any country's economic and industrial position, particularly Pakistan's. Self employment not only solves the problems of unemployment and poverty, but it also aids in achieving a balance of regional and communal development. Another advantage of increased self-employment is that it promotes exports and increases GDP. As per Global Entrepreneurship Monitor (GEM) (2020/2021) entrepreneurship is supposed to have a crucial part in economic and financial development of any country because entrepreneurs through innovation create new ventures which increase employment opportunities, provide public with a variety of services and products, strengthen competition, improve productivity through technological based changes and impact the lives of the citizens in a positive way. That is why x entrepreneurship has become a vital component of economic growth around the globe. Entrepreneurship promotion necessitates a thorough grasp of what motivates people to pursue self-employment as a career path. Understanding what motivates and shapes the entrepreneurial ambitions of Pakistani youth (particularly university graduate students pursuing BS degrees) is critical before developing effective self employment methods. The study of entrepreneurial intentions among Pakistani university students has traditionally been thought to be difficult and multi-layered. In the literature, empirical assessments of entrepreneurial intentions are becoming more common. Despite significant disagreements among the studies, the findings validated the theory of planned behavior's (TPB) application to entrepreneurship. There are numerous studies in the literature that incorporate study work on entrepreneurial intentions of university students worldwide. Similar studies, however, have not been undertaken on pupils from all parts of Pakistan. The current study's model incorporates the effects of variables such as gender, course of study, area, past and present work or company experience, parent's education and profession, and the presence of entrepreneurs in the respondents' history. Objectives of the research: After a thorough review of literature, the undertaken study proposes to achieve the objectives as indicated below: 1. To study about the impact, significance and robustness of elements of TPB on EI of the university graduate students in the context of PSUs and HEIs of Pakistan. xi 2. To study about the impact of gender, course pursuing, region, reason for choosing the degree, present and past work or business experience, subjects studied in college and years of education for university graduate students. 3. To study about the impact of family size and income, parent’s education and profession and presence of entrepreneur in family and friends for university graduate students. 4. To recommend areas of improvement or a model for HEIs or PSUs for self employment through entrepreneurship. Scope of the research: The scope of the research was limited to testing of entrepreneurial intentions of university graduate students (students from all regions of the country). Additionally, • The study was restricted to QAU Islamabad, Pakistan • The respondents were first to final year students registered in the BS programs. • The study focused on thirty one different disciplines. Hypotheses: Based on the gaps found in the literature review and the objectives of this research study a theoretical framework was developed. This theoretical framework guided in formulation of the hypotheses. The null hypotheses adopted for the research study are as follows: 1. H1: Elements of TPB do not have effect on EI of Quaid-i-Azam university graduate students. xii 2. H2: The effect of the independent variable on the entrepreneurial intentions of the university graduate students at QAU cannot be mediated by a mediating variable. 3. H3: The impact of the independent variables (PA, SN and PBC) of TPB on the entrepreneurial intentions (EI) of the Quaid-i-Azam university graduate students cannot be moderated by student related moderating variables. 4. H4: The impact of the independent variables (PA, SN and PBC) of TPB on the entrepreneurial intentions (EI) of the Quaid-i-Azam university graduate students cannot be moderated by family related moderating variables. Research Methodology: A pilot study with QAU respondents was undertaken prior to the start of the main study to assess the validity of the research model and identify any faults or discrepancies. Following validation, a 7-level Likert scale ranging from'strongly disagree' to'strongly agree' was used to collect the key data. A updated and expanded questionnaire based on the Entrepreneurship Intention Questionnaire was used to gather data from students from all regions of Pakistan pursuing their BS at QAU Islamabad, Pakistan, in various departments, schools, centers, and institutes. The stratified random sampling method was used to collect data, and the process took place between May 2022 and August 2022. Focus groups and interviews were used to collect qualitative data. The findings highlighted the motivations for venture formation, as well as the boosters and hurdles to entrepreneurship. The findings xiii validated the data analysis results and identified the mechanism through which the impacts occur. Data Analysis: Following data gathering, it was integrated, coded, and reviewed for gaps and outliers. The frequency tables in SPSS 26 were used to investigate sample composition. Correlation and factor analysis (exploratory factor analysis, EFA using SPSS 26) were utilized to explore variability among the observed, correlated factors, in addition to producing measures of central tendency and variation using descriptive statistics. Smart PLS 3.0 was used to establish and evaluate causal links between selected variables using structural equation modeling (SEM). The effect of moderating and mediating variables on entrepreneurial intentions was studied using mediation and moderation analysis with bootstrapping. Findings: The primary findings of this empirical study showed that: • Internal and external factors both play substantial roles in determining entrepreneurial intentions, with internal elements being more important. • After acquiring some experience, respondents intend to establish their own businesses. • Professional attractiveness to entrepreneurship and perceived behavioral xiv control were found to have a substantial impact on their entrepreneurial intentions. • Parents, family and friends have impact on the entrepreneurial intentions, they show that students lack encouragement from them when it comes to starting their own business. • Male respondents have stronger entrepreneurial intentions than female respondents, showing a strong cultural influence. • Pure sciences students were more interested in entrepreneurship than social sciences students, showing that familiarity with technology could be a key factor influencing entrepreneurship. • Students who are pursuing a degree of their own choice show less interest towards entrepreneurship indicating that they have career plans related to job. • Entrepreneurs' presence in family and social networks was found to be a good predictor of intentions. Though there was no effect on the attractiveness to entrepreneurial aspirations, entrepreneurial background had an effect on intents via increasing control perceptions. • TPB showed itself to be reliable and robust when investigating the intents of university graduate students at QAU. Contributions: The main contributions of the study are: xv 1. This study contributes to previous research by investigating the influence of internal characteristics such as attraction and control on intentions. 2. Various factors have been discovered to influence the entrepreneurial intentions of graduating students in various regions of Pakistan. This study thoroughly established the impact of professional attraction, perceived control, and role models. 3. This study also emphasizes the importance of indirect impacts on entrepreneurial intentions. 4. The present study emphasizes the role that parents, society, and educational institutions should play in giving encouragement and support so that more graduating students consider entrepreneurship as a viable career option. 5. The outcome of this research provides a model for Human Capital Transformation. The model can be used to address the challenges of population growth, unemployment and economy by policy makers. Limitations: The use of questionnaires for data collection presented various limitations. Surveys have been shown to elicit socially acceptable information rather than spontaneous and accurate information. The data was obtained in the middle of 2022, and there may have been some changes in answers since the collection of data. The study only looks at one university out of a possible 250 in various parts of the country. As a result, the conclusions cannot be regarded representative of Pakistan's xvi total population. More comprehensive surveys are required. Future Research: A longitudinal examination of how intentions are created and given shape would be great for understanding the dynamics of venture development. Professional attractiveness and perceived behavior control evolve with time, influencing the strength of entrepreneurial intentions. These alterations can be identified through longitudinal research. More fields can be included, and data from institutions in specific locations can be collected. Keywords: Theory of Planned Behavior (TPB), Entrepreneurial Intentions (EI), Professional Attraction (PA), Social Norms (SN), Perceived Behavior Control (PBC)