An Empirical Study on the Factors Affecting Entrepreneurial Intention of Management and Arts Undergraduates: with Reference to USJ

Abstract

As a developing country, Sri Lanka is currently facing several economic challenges, and it is necessary to decode how this positioning can be improved. Out of the various efforts that are available, enriching the number of entrepreneurs has been one such strategy that is proven to boost the economy. Sri Lanka still records low entrepreneurship rates in comparison to developing countries. This paves the way for the need to understand the entrepreneurship intention of youth. Therefore, this study was conducted with students of two faculties to identify the latent factors that affect entrepreneurship intention among undergraduates and to recognize if there are any significant statistical differences on the perceptions of students between the two faculties. The sampling method was stratified random sampling and the sample size was 106. Data collection was conducted through a selfadministered questionnaire. Using factor analysis it was identified 8 factors that affect entrepreneurial intention of the undergraduates in Sri Lanka. Of them, five proved to be controllable factors (aspiration, entrepreneur characteristics, awareness, readiness financial knowledge) by the students suggesting that actions can be demonstrated in enriching students’ motivation and consideration towards entrepreneurship. The remaining three factors (education received, financial ability, family influence) show that external factors such as parents, investors and educational institutions can influence students towards choosing a career path of entrepreneurship. The findings of this study can be used in structuring the youth mindset to enhance entrepreneurial intention among them.