Entrepreneurial Intentions Among Business Students In Saudi Arabia Commerce Essay

This proposed research will hold its focal point on explicating among concern pupils in Saudi Arabia the built-in factors impacting entrepreneurial purposes. The entrepreneurial purpose theoretical account based on planned behavioural theory will used in this explanatory survey. The survey will peculiarly affect factors such as personal attractive force, perceived societal behaviour, demographics and perceived societal norms. The proposed survey will aim nascent enterprisers and concern alumnuss through the employment of a trying methodological analysis, which is systematic. The explanatory survey will by and large supply attitudes of university pupils with respect to future employment options and their comparative waies into the labour market after graduation. The entrepreneurial aspirations shall be explained comparative to the possibility of alumnuss set uping ain endeavors. The survey will take to supply utile deductions for authorities policy shapers on off class sectors and educational establishments offering direction and concern classs. Of great importance will be the important influence the studied factors have on undergraduates ‘ purposes to get down their ain endeavors after graduation.

Keywords: Entrepreneurship, Entrepreneurial purpose, Entrepreneurial potency, Behavioral variables, University pupils, Business Studies.

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As of today, the growing of any economic system in any state has to integrate entrepreneurship as one of the most critical sectors. It is apparent that the growing entrepreneurial activities in a society later create many other chances in an economic system. For case, legion economic benefits and occupation chances may ensue from continual growing in entrepreneurial activities. Entrepreneurship activities often create employment chances particularly the growing of micro and little endeavors. Such important influence is indispensable in heightening kineticss in regional, national and local economic systems with respect to invention. Such entrepreneurial enterprises through an adaptative procedure aid to reconstitute and re-model the modern-day concern sector. The creative activity of wealth, invention and occupation creative activity is as a consequence of entrepreneurship considered at macro-level ( Jones & A ; Dimitratos, 2004 ) . On the other manus, at single degree, the broadening of calling avenues is chiefly stimulated through the development of such entrepreneurial behaviour. This instance happens peculiarly for first clip entrants in the labour market. In recent old ages, the new facet of globalisation has brought forth rapid alterations every bit good as many other inauspicious effects of a deteriorating economic system. Such state of affairss have affected the economic conjuncture of Saudi Arabia and by and large other international economic systems. The traditional signifiers of employment of the past that did absorb many university pupils after completion of surveies have encountered changes with respect to employment conditions. Such conditions in the labour market have significantly shrunk employment chances hence the soaking up rate of university alumnuss is on a downward tendency. Today, the option to set up endeavors by university pupils is extremely likely. Such determination is besides more likely to be considered as positive but non a residuary calling avenue.

However, there are factors likely to impact the pupils ‘ leaning to set up endeavors and the chances to unite together the necessary competences and properties. Many surveies ( Teixeira, 2007 ; Franke and Luthje 2004, & A ; Rodrigues, 2008 ) have been done to supply a better apprehension of the variables significantly act uponing concern start-ups by alumnuss. Entrepreneurship is considered as important in attainment of inventions and new engineerings hence the factors act uponing such intentions/ambitions need to be clearly understood and established. The survey will chiefly concentrate on how entrepreneurial purposes of immature alumnuss or concern pupils are influenced by varied factors. Such mark is on the way to come in the job/labor market and calling options proves to be really critical. The research survey will affect six defined subdivisions. Section one which is the debut will be followed by literature reappraisal as subdivision two. Datas that describes the usage of questionnaires and belongingss of the sample will be outlined in subdivision three. The 4th subdivision includes methodological analysis and theoretical account to be used in set abouting the research. The analysis and treatment of obtained consequences will be catered for by the 5th subdivision. Finally the research paper will stop with the 6th subdivision supplying the decision every bit good as policy deductions.

Problem description/ statement

Saudi Arabia ‘s major economic operation is oil-based with the crude oil market about representing 90 % of export net incomes, 45 % of GDP and 75 % of budget grosss. The private sector contributes at least 40 % of GDP therefore many policies from the authorities to promote the growing of the private sector. Such actions are geared towards the creative activity of employment chances for a Saudi population that is ever-increasing and lessen the state ‘s dependance on crude oil market. With such a tendency in population and economic system, the job of unemployment is built-in and many university pupils are sing troubles in their callings when come ining the labor/job market. This brings forth the thought of entrepreneurship for both male and female pupils in their concluding old ages being taken earnestly and non merely as a residuary calling option. The development of the economic system is enormously affected by entrepreneurial activities through the inventions and new engineerings. Such entrepreneurial activities are hence critical for any economic system hence the demand to set up the factors that may significantly impact their constitution. Saudi Arabia ‘s cultural and concern environment is considered as being extremely conservative. The success of concern endeavors may necessitate sharp preparedness and cardinal cognition with respect to the Saudi civilization. Saudi businesswomen face more challenges in entrepreneurship peculiarly as a consequence of gender segregation. Entrepreneurial intentions/ aspirations of university pupils are hence influence by certain factors. This survey helps to mensurate the significance of such factors on entrepreneurial determinations of both male and female pupils in Saudi Arabia.

Literature Review

This issue has attracted much involvement from varied sectors hence the handiness of a batch of literature on the subject. Besides this, the survey will be focused on few surveies that are interesting, most relevant and of import. Harmonizing to ( Bird, 1988 ) , the entrepreneurial clime is characterized by variables such as hazard taking willingness, troubles with respect to growing and the induction of a concern start-up, the credence of failure possibilities and socialisation amongst many others. However, such identifiable variables normally differ among persons. In add-on, entrepreneurial behaviour in a society may be influenced by a big figure of houses and the rate of success of other start-ups. Literature by ( Jackson & A ; Rodley, 1994 ) explained similar findings whereby the entrepreneurial environment is significantly determined by traits, behaviours and values.

Harmonizing to ( Linan, 2005 ) , the entrepreneurial purpose is negatively related to the penchant for salaried occupations. In add-on, socio-demographic factors preponderantly gender, significantly influences the entrepreneurial purposes among males and females. The persons are motivated to go enterprisers by the expected wagess that are either intrinsic or extrinsic. On the other manus, issues of compliant costs, funding, deficiency of assurance, capital and accomplishments present important barriers to such intentions/ambitions. Other surveies such as ( Rommi, 2005 ) analyzed adult females enterprisers in Islamic states and found out that, adult females belonged to varied cultural backgrounds hence the built-in gender-related chances and challenges. Basu and Virick ( 2008 ) survey highlighted that the entrepreneurial behaviour is significantly and positively influenced by anterior experience and instruction. The entrepreneurial inclinations have been often measured by three factors in peculiar ( Delmar & A ; Davidson, 2000 ) that include, contextual factors, personality traits and personal features.

Methodology and related descriptive statistics

In analyzing the facts behind barriers and challenges in entrepreneurial activity, the information will be gathered from concluding twelvemonth pupils set abouting concern surveies in King Abdulaziz University in Jeddah. The mark sample is 476 pupils out of a population sample of about 1250 concern pupils. In add-on, the mark sample includes serious concern pupils who have prior cognition in concern. Harmonizing to ( Basu & A ; Virk, 2008 ) , those pupils with anterior instruction in entrepreneurship have a positive aspiration towards entrepreneurship calling. Because of the positive relationship between concern pupils and the exposure to instruction and entrepreneurial activities, the response rate of the selected information is hypothesized to be 85 % out of the 476 surveyed pupils. In informations aggregation, this survey will utilize the Entrepreneurial Intention Questionnaire that was designed by Linen ( 2005 ) and antecedently used by other surveies.

The entrepreneurial purpose will be assessed by the usage of this questionnaire with respect to eight belongingss. These variables include Entrepreneurial cognition, Social rating, Professional attractive force, Education and experience, Entrepreneurial capacity, Entrepreneurial objectives, Entrepreneurial instruction and Entrepreneurial purpose. Besides these variables, the analysis besides includes demographic factors. These variables will be measured utilizing the Likert-type graduated table. The sample will be obtained from a population of undergraduate concern pupils in their concluding twelvemonth at the King Abdulaziz University. The pupils will be required to reply the inquiries in the questionnaire relating to the included variables. Entrepreneurial potency will be straight assessed utilizing the replies the pupils give with respect to their current involvement on graduation in making ain firms/businesses. After informations aggregation, the statistical package bundle SPSS will be used in the analysis of informations and reading of consequences. The tabular array below shows a sum-up of the chief methodological features this survey will integrate.

Time footing


Sampling unit

Undergraduate pupils


1250 persons


476 persons

Response rate

85 %

Research method

Entrepreneurial Intention Questionnaire

Time period

April 2011 – June 2011

Statistical analysis

Bivariate, multivariate-logistic arrested development

Model Formulation

This survey will utilize a questionnaire with a figure of factors important in finding the entrepreneurial purpose among pupils in their concluding twelvemonth and have programs to set up their ain endeavors, houses or companies.

Education and Experience

This variable is used to mensurate the respondents ‘ instruction degree, the degree class, their expected completion clip and the factors that influenced them in the degree registration. Besides, work experience if any in related field is besides measured by this variable.

Entrepreneurial Knowledge

The respondent ‘s cognition on entrepreneurship either from household, familiarities or friends is measured by this variable. Furthermore, certain peculiar facets in relation to get downing a house and the comparative cognition of the respondent can be measured by this variable.

Professional Attraction

This captures bearer programs of the respondent and the profession penchant with respect to external environment. This will besides affect whether the respondent is interested in going an enterpriser or non after graduation.

Social Evaluation

This variable seeks to set up whether entrepreneurship is more or less valued compared to other callings and professions in the respondent ‘s close societal web. It besides captures the society ‘s grade of credence for people who become enterprisers.

Entrepreneurial Capacity

The respondent ‘s ability to efficaciously supervise and pull off a house or undertaking is captured through the analysis of the person ‘s features. Such features include networking, communicating, creativeness, chance acknowledgment, invention and job resolution.

Entrepreneurial Purpose

This variable examines the extent to which the respondent is interested in entrepreneurship activities whether presently or at a ulterior clip in the hereafter. This involves the estimating the finding degree of the respondent in choosing a calling in entrepreneurship.

Entrepreneurship Education

This variable evaluates the respondent ‘s cognition deepness with respect to required abilities, enterpriser ‘s figure acknowledgment, entrepreneurial environment and the purpose to go an enterpriser. Furthermore, the consciousness degree developed by analyzing the relevant class is besides examined by this variable.

The formulated theoretical account used in the rating of entrepreneurial purpose assumes is written as follows:

Entrepreneurial Intention = degree Fahrenheit ( Demographics, Experience, Entrepreneurial Knowledge, Professional Attraction, Social Valuation, Entrepreneurial Capacity, Entrepreneurial Intention, Entrepreneurship Education ) whereby Demographics represent the respondent ‘s Age and Gender

The theoretical account can besides be of the undermentioned signifier:

EI = I± + I?1Gender + I?2Age + I?3Exp + I?4EK + I?5PA + I?6SV + I?7EC + I?8EE + Iµ

Where: I± is the intercept

I• is the error term

EI is the Dependent Variable

Gender, Age, Exp, EK, PA, SV, EC and EE = the Independent Variables

In the survey, the appraisal of the above equation will be done utilizing the Ordinary Least Square method. The survey equation is hypothesized to carry through all the premises of this ordinary least square method.


It is apparent that entrepreneurial activities plays really important function with respect to the growing and development of any economic system. Surveies on the important factors that affect such determinations among persons are every bit of import in preparation of policies by the authorities and other establishments. It is hence of import to carry on this research on entrepreneurial intentions/ambitions among pupils in Saudi Arabia. Faced with challenges of unemployment, barriers in labour market and cultural backgrounds, university pupils in educational establishments need encouragement for entrepreneurial callings. Such policies will be formulated and implemented based on findings of many surveies of this type.


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