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Factors Influencing Intentions Among Arab Students Entrepreneurship

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Entrepreneurial Intentions: Factors Influencing Intentions Among Arab Students Factors Influencing Intentions among Arab Students: Entrepreneurship Entrepreneurship can be defined as the process and mindset to initiate and develop economic activity. Studies have shown entrepreneurship to be a crucial driver of economic growth. This study sought to examine the...

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Entrepreneurial Intentions: Factors Influencing Intentions Among Arab Students Factors Influencing Intentions among Arab Students: Entrepreneurship Entrepreneurship can be defined as the process and mindset to initiate and develop economic activity. Studies have shown entrepreneurship to be a crucial driver of economic growth. This study sought to examine the factors that influence entrepreneurial attitudes among students in Arab countries. More specifically, it sought to examine the role of universities, role models, the entrepreneurial curriculum, and students' demographic characteristics in promoting Arab students' entrepreneurial attitudes.

The study employed a quantitative research design, where data was gathered from a sample of 1500 undergraduate Arab students in government universities, and subjected to one-way ANOVA tests. Descriptive statistics (means and standard deviations) was used to draw additional conclusions from the gathered data. The results showed that Arab students acknowledge the role played by universities, the entrepreneurship curriculum, role models, and demographic variables in influencing their attitudes towards entrepreneurship.

Universities and the entrepreneurial curriculum were found to be the greatest influencers of students' entrepreneurial attitudes, ahead of role models and demographic variables. However, the low overall mean showed that most students do not believe that these institutions have played their role satisfactorily. Regarding the moderating effect of demographic variables, ANOVA results showed that age, academic major, and work experience were not important determinants of students' entrepreneurial attitudes. However, one's country, their gender, and academic level were found to be significant influencers of entrepreneurial attitudes.

Male students were more entrepreneurially-inclined than their female counterparts, and so were those in third and fourth years of study, compared to those in their freshman and sophomore years. The overall finding of the study was that universities need to play a more profound role in influencing students' entrepreneurial attitudes Factors Influencing Preference towards Entrepreneurship among University Students in Arab Countries The European Commission defines entrepreneurship as the process and mindset to initiate and develop economic activity (European Commission, 2003).

The continued uncertainty about the economy, signified by a declining number of corporate recruiters fosters the appeal of new business launching and self-employment (Schaper & Volery, 2004). Studies have shown entrepreneurship to be an effective driver of economic growth and a sustainable source of competitiveness amidst emerging trends of globalization (Schaper & Volery, 2004). According to the authors, entrepreneurship drives growth through technological change, innovation, job creation, and wealth generation (Schaper & Volery, 2004).

Over the last 15 years alone, large corporations and Fortune 500 companies have eliminated millions of jobs through retrenchment plans; yet entrepreneurial discoveries have yielded an yearly average of 600,000 new incorporations, and generated millions of job opportunities (Morris & Kuratko, 2002). These findings explain researchers' continued interest in studying the impact of entrepreneurship on growth, and the factors influencing the development of entrepreneurial attitudes among different segments of the population.

Most of these studies have, however, focused on western economies, leaving knowledge gaps in relation to the effects of the same in other regions such as Africa and the Middle East. This paper seeks to identify the core variables influencing youths' attitudes towards entrepreneurship in selected Arab countries in Africa and the Middle East. It is based on an empirical study conducted among a sample of 1500 undergraduate students pursuing business-related degrees in Egypt, Jordan, Qatar, Saudi Arabia, Oman, and the United Arab Emirates (UAE).

Considering the importance of entrepreneurship on the modern-day economy, the current study will provide meaningful insights on how universities and other institutions of higher learning could provide entrepreneurial support to their students to enable them start their own business ventures.

1.1 Problem Statement A 2009 report by Silatech and Gallup on the entrepreneurial attitudes of Arab youth identified three factors that youth consider to be the greatest obstacles to success in life: the necessity of personal connections (wasta), lack of awareness on new employment initiatives, and inadequate educational systems that do not offer effective job training (Gallup Inc., 2009).

The report carefully states that Arab youths hold complex attitudes towards entrepreneurship - most of them believe that entrepreneurship leads to wealth and job creation, yet solid majorities do not harbor entrepreneurial intentions, neither do they believe they can make good entrepreneurs (Gallup Inc., 2009). This mismatch between entrepreneurial attitudes and entrepreneurial intentions among Arab youth is reflected in a study by Almobaireek and Manolova (2011) involving 59 MENA countries.

The study showed that although Arab youth consider entrepreneurship a good career choice, most of them do not harbor serious entrepreneurial intentions (Almobaireek & Manolova, 2011). In Egypt, for instance, 77.7% of respondents indicated their agreement with entrepreneurship as a good career choice, yet only 24% mentioned harboring serious entrepreneurial intentions (Almobaireek & Manolova, 2011). The situation is even more worrying in Saudi Arabia, where 86% of youth consider entrepreneurship a good career choice, and only 1% are inclined to take up entrepreneurial opportunities (Almobaireek & Manolova, 2011).

Moreover, only 7.7% of respondents believed that they were adequately trained and qualified to start and sustain their own businesses. The Almobaireek and Manolova (2011) study presents an interesting finding about the impact of successful role models on Arab youth's entrepreneurial intentions. The study findings depict a mismatch between youth's perceptions about successful entrepreneurs in their countries, and their own inclination to take up entrepreneurial opportunities (Almobaireek & Manolova, 2011).

In Egypt, for instance, 89.5% of respondents indicated respecting and according successful entrepreneurs high statuses in society, yet only 24% indicated being influenced by these high statuses to take up entrepreneurial opportunities (Almobaireek & Manolova, 2011). The case was no different in Saudi Arabia, where the statistics compare 92.3% to 1% (Almobaireek & Manolova, 2011).

The findings from these studies beg the question, 'how effective is the educational system and curriculum in Arab countries in equipping students with entrepreneurial skills?' Moreover, what is the impact of role models in shaping Arab youths' attitudes towards entrepreneurship? These two questions drive the current study.

1.2 Study Objectives Based on the background provided in the preceding section, this study seeks to realize the following objectives: i) To examine the role of universities in promoting entrepreneurship on Arab university students' preference towards entrepreneurship ii) To determine the impact of role models in influencing Arab students' preference towards entrepreneurship iii) To examine the effect of the entrepreneurial curriculum and content on Arab students' preference towards entrepreneurship iv) To examine the moderating effect of demographic characteristics on Arab students' preference towards entrepreneurship 1.3 Significance of Study The study provides crucial insight to policymakers in MENA countries.

Its findings will go a long way towards assisting them in the formulation of effective policies for enhancing entrepreneurial skills among university students. University administrators will better understand the roles that their institutions could play in fostering entrepreneurial development among students. They will understand the influence of role models and demographic variables such as gender on students' preference towards entrepreneurship. This way, policymakers and course designers will be able to come up with effective frameworks for instilling entrepreneurial skills among students.

Consequently, more students will be inclined to learn entrepreneurship skills, and the country as a whole will benefit from increased growth and low unemployment levels. Chapter 2: Literature Review 2.1 The university's role in promoting entrepreneurship and students' preferences towards entrepreneurship Researchers concur that universities can play a crucial role in building entrepreneurial skills among students; however, their performance in this regard is far from perfect (Salem, 2014; Iqbal et al., 2012).

In his study seeking to analyze the role played by Saudi Arabian universities in shaping entrepreneurial intentions among students, Salem concluded that "most universities have not fully integrated entrepreneurship programs in their curricula" (Salem, 2014, p. 630). Most institutions, the author posits, only offer entrepreneurship programs in economics and business studies, leaving students in other academic fields such as technology, mathematics, and computer science with no such exposure (Salem, 2014).

These findings mirror those of Iqbal and his colleagues (2012), who found that most students in Saudi Arabia and other MENA countries do not consider universities and colleges to have played a sufficient role in influencing their entrepreneurial intentions. The authors, therefore, concluded that universities need to revisit their curricula so they are more focused on equipping students with relevant entrepreneurial skills (Iqbal et al., 2012).

Other researchers have moved away from the question of whether or not higher learning institutions have played their role as they should, choosing instead to focus on how such institutions need to adjust themselves to be more effective influencers of entrepreneurial intentions among students. Gallant and her colleagues (2001) point out that the university's role as an influencer of entrepreneurial intentions can be categorized into two: its role as an educator and its role as a promoter of entrepreneurship.

As an educator, the university could foster students' interests towards entrepreneurship by: i) Providing students with ideas to start new businesses ii) Offering bachelors or masters studies on entrepreneurship iii) Arranging workshops and conferences on entrepreneurship iv) Offering project work focused on entrepreneurship v) Creating awareness of entrepreneurship as a possible career choice As a promoter of entrepreneurship, the university could play its role by: i) Allowing business ventures run by students to use university services ii) Bringing students in contact with the network needed to start new business ventures iii) Bringing entrepreneurial students in contact with each other iv) Providing students with the financial means to start new business ventures These findings reinforce the argument that universities can play an immense role in providing the requisite entrepreneurship education and skills to students; however, further research is needed to ensure that they play their role sufficiently and effectively.

2.2 The entrepreneurial curriculum and content's role in influencing students' preferences towards entrepreneurship The bond of contention among researchers is that the entrepreneurial curriculum and content could play a positive role in influencing students' attitudes and preference towards entrepreneurship in Arab countries. However, this is only so if the curriculum is structured properly and if it sufficiently reflects the changes and trends in the globalized economy (Salem, 2014; Iqbal et al., 2012).

Salem (2014) points out that the reason why the entrepreneurship curriculum in MENA countries has not been effective in influencing entrepreneurial intentions among students is because it focuses primarily on creating business plans and starting new ventures, at the expense of growth, creativity, and innovation. The author posits that in order for the entrepreneurship curriculum to be more effective, it ought to focus on instilling relationship-building, critical thinking, problem-solving, and risk-taking skills as a way of thinking and a form of support for building a knowledge-based economy (Salem, 2014).

The author's viewpoint is that the traditional focus on creating business plans may not work effectively amidst the ongoing changes and trends brought about by globalization. The curriculum and content of entrepreneurship education ought to be structured around competitiveness, innovation, networking, self-realization, communication, and economic growth as well (Salem, 2014). Only then will it be able to raise the skill and talent level of students, and to adequately prepare them to contribute to the knowledge-based economy (Salem, 2014).

The author concurs with Gallant and her colleagues (2001) that the curriculum ought to stretch beyond the classroom walls. It needs to equip students with practical entrepreneurial knowledge to complement their theoretical skills (Salem, 2014; Gallant et al., 2001). It ought to accord students an opportunity to interact with the outside world through mentorship programs, workshops and conferences organized through strategic alliances with established entrepreneurs (Salem, 2014). This will grant students greater exposure to trends and changes in the globalized economy, and enhance their inclination to succeed as entrepreneurs in a dynamic environment.

Consequently, it will foster their preference to take up entrepreneurial ventures in their respective economies. 2.3 Role Models' Influence on Students' Entrepreneurial Intentions Studies have shown that by identifying with a role model, individuals could be inspired to pursue similar ventures or achievements (Saeid et al., 2014; Salem, 2014). Saeid and his colleagues (2014) posit that when a student identifies with a successful role model who owns or runs their own business, they may be inspired to also begin and run their business successfully.

A similar view is held by Fayolle and his colleagues (2006); however, these authors are of the opinion that the entrepreneurial intentions are stronger if the influences come from close relatives. Children of entrepreneurial parents, who perceive their role models as successful and positive, are, for instance, highly likely to imitate those role models (Fayolle et al., 2006). The authors base their argument on the social learning theory, which emphasizes the concept of observing and modeling the behaviors, emotional reactions, and attitudes of others.

Based on the precepts of the social learning theory, students who perceive an entrepreneurial parent or close relative as being successful are likely to demonstrate a greater preference for entrepreneurship than those without such kind of role model effect (Fayolle et al., 2006). Van Auken and his colleagues (2006) conducted a study to assess the impact of role models on individuals' desire to own business ventures. They asked students whose role models were successful entrepreneurs to rank the influence of those role models on career intentions of 20 different activities.

The findings showed role models activities related to involving the respondent in discussions about the business, employment in the business, and professional activities within the business to be significantly related to respondents' interests in starting their own businesses (Van Auken et al., 2006). Another group of researchers, however, express different views from those explained above. Krueger and Carsrud (1993), for instance, conducted a quantitative study utilizing the theory of planned behavior (TPB), and concluded that exogenous influences on entrepreneurial behavior and intentions only influence attitudes indirectly.

2.4 The Influence of demographic variables on students' preferences towards entrepreneurship Numerous studies have been conducted to determine the effect of demographic variables on students' entrepreneurial attitudes. The main demographic variables that have been studied include age, gender, socioeconomic status, family business background, race, work experience, and country (Singh, 2014; Rasli et al., 2013). The studies have given varied results, supporting the need for further research in this particular area of knowledge.

Rasli and his colleagues (2013), for instance, conducted a study to determine the effect of five variables: race, field of study, work experience, gender, and parents' occupation on Malaysian students' entrepreneurial intentions.

They concluded that: i) There is insufficient evidence to show that students' entrepreneurial intentions differ with race ii) There is insufficient evidence to show that students' entrepreneurial intentions differ by field of study iii) Students with some work experience have higher entrepreneurial intentions than those without such experience iv) Male students have higher entrepreneurial intentions than their female counterparts v) There is insufficient evidence to show that students' entrepreneurial intentions differ with parents' occupation These findings differ significantly from those of Singh (2014), who found students' entrepreneurial intentions to be influenced by age, income, parental occupation, and family business background, but not gender.

In another study, Saleh and Salhieh (2014) assessed the impact of work experience, type of university, and country on students' entrepreneurial intentions. They concluded that students' entrepreneurial intentions differ based on all three variables. In regard to the type of university, the authors assessed entrepreneurial intentions based on whether or not the university offers business incubation services -- the study established that students in universities offering such services had higher intentions than those whose institutions lacked the same (Saleh & Salhieh, 2014).

The authors also found entrepreneurial intentions to be higher for students with work experience compared to those without (Saleh & Salhieh, 2014). Moreover, students' entrepreneurial intentions differed across countries, with countries such as Egypt and Oman scoring lower than Lebanon and Jordan (Saleh & Salhieh, 2014). The authors concluded that the differences on the 'country' variable were due to differences in how students perceived their countries' market conditions, government regulations, and policies (Saleh & Salhieh, 2014).

These studies demonstrate that there still are huge inconsistencies in regard to the effect of demographic variables on students' entrepreneurial attitudes. The preceding sections reveal knowledge gaps in relation to each of the four variables under study. Moreover, most studies have focused on studying MENA countries individually, with almost none studying the effect of entrepreneurship education on entrepreneurial intentions in the six selected countries collectively.

This study complements existing literature by assessing the effect of the four entrepreneurship education variables above on students' entrepreneurial intentions in the six countries of interest: Egypt, Jordan, Qatar, Saudi Arabia, Oman, and the United Arab Emirates. Its findings will be crucial in informing policy formulation and decision-making in MENA countries. Chapter 3: Methodology 3.1 Methods 3.1.1. Research Approach: The study falls within the quantitative research realm, and exclusively made use of primary data.

The chief data collection instrument was a self-administered questionnaire, which was used to collect data in a cross-sectional field survey. This method was selected for its cost-effectiveness. Moreover, it proved easy and quick, saving time and money since respondents were available in a classroom situation. The data collected was used to construct a data set, which was then factor-analyzed and subjected to analyses of variances and correlation analyses. The study was conducted between 10/1/2015 and 15/6/2015. 3.1.2.

Measures and Instrument: All scales were measured on a seven-point Likert scale, ranging from 1 (strong disagreement) to 7 (strong agreement). Sekeran (2012) supports the use of a seven-point Likert scale on grounds of accuracy and high reliability. A review of literature revealed different models for predicting students' entrepreneurial intentions. The current study, however, selects a generalized framework, which assesses students' entrepreneurial intentions based on four variables: the university's role, the entrepreneurship curriculum and content, the availability of role models, and demographic characteristics.

Each of the four variables was measured using six questionnaire items. 3.1.3. Data Collection: Data was collected from a sample of 1500 undergraduate students from 6 different government universities within six different Middle Eastern countries: Egypt, Jordan, Qatar, Saudi Arabia, Oman, and the United Arab Emirates. The self-administered questionnaire, accompanied by a cover letter, was delivered to respondents prior to the start of their classes. Faculty members distributed the questionnaires during their regular classes, and collected the same randomly at the end of the lesson.

The simple random technique was used to select participants as a way of minimizing bias and increasing objectivity (Sekeran, 2010). The questionnaire included questions about four factors: the university's role in promoting entrepreneurship, the entrepreneurship content and curriculum, the availability of role models, and the effect of demographic factors. The demographic factors were assessed using 6 different variables: age, gender, work experience, academic major, academic level of years and country. A pilot study was conducted prior to the study to test the validity and reliability of the data collection instruments.

The pilot study involved 50 students at the faculty of business of one of the participating universities. The study showed that there were no major changes or revisions needed. The instrument's reliability was further supported by the positive Cronbach alpha values for all factors, all of which ranged above 0.6 as shown in table 1 below. Table 1: Reliability Tests for the Four Variables after Factor Analysis Variable Item Cronbach's alpha value The role of University -- promoting 6 0.633 The Entrepreneurial Curriculum and Content 6 0.669 Role Models 6 0.622 Demographic Characteristics 6 0.697 3.2 Hypothesises:.

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