EFFECT OF FAMILY BASED HUMAN CAPITAL, CREATIVITY AND ENTREPRENEURIAL; SELF EFFICACY ON ENTREPRENEURIAL INTENSIONS IN DELTA STATE
ABSTRACT
The paper examined the effect of creativity on human capital development of Nigeria graduates entrepreneurs. The paper became necessary due to high rate of graduates unemployment in Nigeria. The study is a survey research design and data used were generated randomly from 2019 batch C stream II currently undergoing their mandatory one year National Youth Service Corps (NYSC) in Delta State Orientation camp. The data collected were analyzed with descriptive statistics while one tail t-test statistics was used to test the hypothesis formulated at 0.05 level of significance. The results indicated that there is a positive significant relationship between independent variables which have a positive influence on human capital development of graduate. It was recommended that graduates should seek to test new ideas and techniques available and ready to make mistakes and learn from them.
TABLE OF CONTENTS
TITLE PAGE - - - - - - - ii
DECLARATION - - - - - - - - iii
CERTIFICATION - - - - - - - - iv
DEDICATION - - - - - - - - v
ACKNOWLEDGEMENTS - - - - - - vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study - - - - - 1
1.2 Statement of Problem - - - - - - 8
1.3 Objective of the Study - - - - - - 10
1.4 Research Questions- - - - - - - 11
1.5 Statement of the Hypothesis - - - - - 12
1.6 Significance of Study - - - - - - 13
1.7 Scope of the Study - - - - - - 14
1.8 Definition of Key Terms - - - - - 15
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction - - - - - - - - 18
2.2 Conceptual Framework - - - - - - 33
2.3 Theoretical Framework - - - - - - 45
2.4 Empirical Review - - - - - - - 50
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design - - - - - - 56
3.2 Population of the Study - - - - - - 57
3.3 Sample Size - - - - - - - - 57
3.4Sampling Technique - - - - - - 58
3.5 Method of Data Collection - - - - - 58
3.6 Technique for Data Analysis - - - - - 59
3.7 Model Specification and Variable Definition - - 59
3.8 Measurement of Variables - - - - - 59
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Data - - - - - - 60
4.2 Discussion of Findings - - - - - - 79
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary - - - - - - - - 80
5.2 Conclusion - - - - - - - 80
5.3 Recommendations - - - - - - - 93
References - - - - - - - - 95
Appendix - - - - - - - - 98
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Throughout the last decades, entrepreneurship as an area of research has enticed researchers, policy makers and agencies. The main reason for the high interest is as a result of the increasing need for entrepreneurs that have put more effort in creating new ideas and making such that these ideas are put into profitable businesses that would boost the country's economic development (Turker & Selcuk, 2009). Entrepreneurship intention has been extensively study by researchers in economics, management, sociology, psychology, as well as in anthropology due to its importance to the development of an economy by way of job creation and wealth creation (Aliman & Jalal, 2013). The works on entrepreneurship intention includes factors influencing entrepreneurship intention such as education and training, family based capital, personality traits, perceived feasibility, gender, religion, age, culture, as well as ethnicity. Most of these studies were conducted outside Nigeria setting, with a few documented Nigeria works. Nigeria economy is an emerging economy. With the political peace the number of companies in Nigeria expected to grow rapidly. Nigeria is now becoming a centre of new business opportunities as international investors have begun to view Nigeria as the place to invest their money and establish their businesses. This has made the development of entrepreneurship one of the main agenda of most educational institutions at the undergraduate and graduate levels of education in Nigeria. Entrepreneurship education has become an important curriculum in the higher education institutions in Nigeria, including the Universities.
Student’s entrepreneurship intention is widely determine by family based human capital, creativity and entrepreneurial, self efficacy. The family as a social unit comprises members who constitute the significant others in our environment today. So far, the role of the family based human capital in venture creation decisions has been explained from three different perspectives; the classical perspective, the cognitive perspective, and the social embeddedness stance (Shittu, 2014). The last among these perspectives argue that people are implicated in networks of social relations. However, individuals’ decisions to start a business is not derived from a vacuum, but they often engage in consultations and are subtly influenced by significant others in their respective environment (Shittu, 2014). More importantly, the family based human capital play three key roles in venture creation decision making; a source of financial and human resources (Zhang, Wong and Soh, 2003), a source of information and credible values and a source of role models (Shinnar, Toney, Llopis and Fox, 2009). Hence, the family based human capital is considered to be influential, especially, in the early stages of the life cycle of a business venture (Klyver, 2007). Family based human capital is considered to be a special type of social capital that exists in family relations (Sharma, 2014). Economic organization is largely structured around the family, with the family’s survival essential to the long-term functioning of society (Sharma, 2014). Chrisman et al., cited in Sharma, (2014) asserted that family represents a critical and often used resource for startups. However, studies have showed that there is more to the role of family background than just family members or family business in the decision making process of a new venture creation.
Creativity can also influence the degree and type of novelty that entrepreneurs introduce to the economy, promoting innovative entrepreneurship (Zampetakis, Gotsi, Andriopoulos and Moustakis, 2011). Creativity, innovation and entrepreneurship are, hence, inextricably linked. Yet scholars also indicate that this link may be responsive to social and individual variations (Zampetakis et al., 2011). Creativity is recognized as an essential element of entrepreneurship as the individuals have to be creative to identify and exploit the opportunities. Therefore, there is no doubt that an individual’s creative disposition has a strong connection with an individual’s entrepreneurial attitude and intentions. Entrepreneurship creativity is defined as ‘the growth and implementation of unique, distinctive and accurate ideas to launch a new venture’. Amabile cited in Shahab, Chengang, Arbizu and Haider, (2018) argued that entrepreneurship creativity is essential considering the impediments that exist in the entrepreneurial process. Entrepreneurship knowledge of the individuals can bring forth creative ideas that concealed in the minds and can successfully capitalize such ideas by intentions to create different ventures by using entrepreneurial creativity. On other hand, self-efficacy has effect on entrepreneurship intention of the individuals. However, the entrepreneurial self-efficacy is defined as one’s confidence in one’s capability and skill to achieve the start-up advancement of any business (Shahab, Chengang, Arbizu and Haider, 2018). In a recent study, Tsai et al. (2016) extended the relationship between entrepreneurial self-efficacy and entrepreneurship intention by examining the mediating effect of perceived entrepreneurial control and attitudes towards entrepreneurship and the moderating role of subjective norms. Based on the context of this study, self efficacy includes personal attributes, traits, background, experience and disposition that can stimulate individuals’ intentions to become entrepreneurs.
Entrepreneurship education is to produce graduate entrepreneurship that defines the interaction between the graduate as a product of a higher education institution and their readiness to pursue their career as an entrepreneur. Kirby (2011) observes that entrepreneurship has become so important that one of the major challenges facing all economies is their capacity to develop an environment that will support entrepreneurial culture, develop the necessary skills, attitudes and behaviors to prepare young people and others to pursue opportunities. Economic development and wealth creation are both supported by entrepreneurship (Louw, Bosch, & Venter, 2003). Even though it is argue that small business development is essential for economic growth and job creation (Louw et al., 2003), the reality is that historically, in most African countries, most graduates are prepared to enter the labor market as employees, but not as entrepreneurs. Most graduates had no intention of starting new ventures or of becoming self-employed. The traditional trend was, and may be, is still to be employed either by the government or in the worst scenario by a private organization. Working for oneself was regarded as a failure. The demand for an entrepreneurial driven economy has the benefit of creating employment for people that both the government and big organizations will not be able to employ (Kirby, 2011). It is in this perspective that educational institutions could play a major role in preparing graduates to espouse entrepreneurial mindsets.
Students who have attended entrepreneurship courses are more likely to start their own business than those who haven’t (Packham, Jones, Pickernell, and Brychan, 2010). Menzies and Paradi (2003) in a more oriented study pointed out that entrepreneurship education, especially in scientific and technological universities, is crucial to enhance entrepreneurs’ innovation skills in a dynamic environment. Despite the importance of entrepreneurship education, Nabi and Holden (2008) posit that the link between education, training, the intention of students to set up a new firm and making entrepreneurship as their career is a complex and under-investigated process. In preparing graduates to succeed in their prospective employment most especially in industrial country like Nigeria, they need to be equipped with the competencies deemed essential by Delta State. The University curriculum plays a critical role in enhancing the capacity of their graduates. Delta State is concerns with creating skill acquisition programmes like HUB and others to empower youth and also save the problem of unemployment. It is a clear fact that most graduates go about looking for employment in government institutions and private institutions after they have gone through a course in entrepreneurship. To some graduates self-employment is not an issue to them, in spite of the fact that the government over the years has indicated that the private sector is the engine of growth. The growing numbers of unemployed youth especially among graduates suggest that the expected outcome of the entrepreneurship education in terms of addressing the unemployment problem among the youth have not been achieved. In view of the above, this study sought to critically investigate the effect of family based human capital, creativity and entrepreneurial; self efficacy on entrepreneurial intensions in Delta State.
1.2 Statement of the Problem
Entrepreneurship has been found as an important driver of economic growth, productivity and social development; however, academicians, practitioners and policymakers recognized its importance recently. People exposed to entrepreneurism reported great benefits including freedom in decision making, higher self-esteem, challenge and greater sense of control. Entrepreneurship promotion has become one of the main issues in public policy of the most of industrial in Delta State. In this context, well educated entrepreneurs are top priority. Fostering entrepreneurship through education and training has also received increasing attention from universities in many countries and states like Delta State. There is a lack of research assessing the readiness of graduate to pursue their entrepreneurship intension. As such, it is this lack and gap in research that this current study hopes to bridged as it proffer answer to the troubling question of despite the vocational training and entrepreneurship training graduate are exposed to while in the university are many of them ready to pursue entrepreneurship intension.
1.3 Purpose of the Study
The general purpose of this research is to contribute to the general body of knowledge and research work in the area of the effect of family based human capital, innovative behaviour and entrepreneurial; self efficacy on entrepreneurial intensions in Delta State.
1.3.1 Specific objective
1. To determine the level of readiness of students to pursue their entrepreneurial intension with regards to perceived skills in Delta State
2. To find out how conducive is the business environment of graduate with regards to pursuing their entrepreneurship intension in Delta State
3. To find if family based human capitals have effect on entrepreneurial intensions of students in Delta State
4. To find out if students innovative behavior have any effect on entrepreneurial intensions in Delta State
5. To find out if entrepreneurial self efficacies of students have effect on entrepreneurial intensions in Delta State
1.4 Research Question
The following questions therefore guided the investigation:
1. Does family based human capital positively predict entrepreneurial intention?
2. Does innovative behavior positively predict entrepreneurial intention?
3. Does entrepreneurial self efficacy predict entrepreneurial intention?
1.5 Research Hypothesis
The following research hypotheses were formulated from the research question will be tested at a significant level of 5%.
H1: Family based human capital will positively predict entrepreneurial intention
H2: Innovative behavior will positively predict entrepreneurial intention
H3: Entrepreneurial self efficacy will predict entrepreneurial intention
1.6 Significance of the Study
It has been said that change is a constant and worldwide phenomena. This change stems from globalization, information revolution, changing customer’s preferences and tastes, rapid product obsolescence, changing labour force, technological transformation in products and production. These changes take place in every country, culture and organization. The corporate bodies continuously react to the speed of change. The office which coordinates the activities of the organization is directly affected by the various levels of changes, that the office activities require intelligent, creative, hard-working and skill oriented employees This study on the office work skills needed by office education graduates in a modern office will be significant as it will reveal the office skills perceived as required by employers of labour for a successful transition from school to the world of work. Furthermore, curriculum planners and the National Commission for fine art will through the findings review the curriculum (minimum standard) to include current issues as they relates to things been done in most graphic design industry through training especially in the provision of modern office equipment for the training of the students. Added to these, may be the need to recommend re-training of graduate on modern technology application and usage.
Results reached from this study are expected to give important messages to policy makers in education from the student’s perspective. The findings of the study would also contribute to the limited knowledge on entrepreneurship by way of reference material.
The ministry of education curriculum planners, teachers and students will benefit from the result of this study. The findings of the study will expose lecturers to new approaches of teaching entrepreneurship. This will be actualized when they teach as a result of acquired competencies. The awareness created by this study may help the lecturers to develop appropriate skills and competencies for teaching. The major aim of this study is to identify competencies needed for entry into Delta State industry. It is therefore hoped that this study will be significant in the following ways:-
The competencies for effective teaching of identified in this study could be very useful in the instruction in the area of methodology. The competencies would serve as area of particular emphasis in the training programmes of graduate. The study will provide opportunities to improve on teaching and learning of in secondary schools through refresher courses and workshops. The researcher believes that the results of this study will provide a clear view of what education is all about, so that future aspirants to this profession will have a clear knowledge and challenges of the profession.
1.7 Scope of the study
The study is conducted in Delta State, using graduate as the respondents. It looks at whether certain demographic variables such as age, gender, family background, working status have a significant effect of family based human capital, creativity and entrepreneurial; self efficacy on entrepreneurial intensions.
1.8 Delimitation of the Study
The sample for the study was based on convenience and may not necessarily be representative of all the students. Hence, the findings may suffer from external validity. There is the tendency that some students might have being responding in a socially desirable way which would tend to bias results against finding. Cross-sectionality of data makes it difficult to determine causality. The sample size is small and this will also affect the generalisation of the findings.
1.9 Operational Definition of Terms
Effect: A change which is a result or consequence of an action or other cause.
Family: A group of one or more parents and their children living together as a unit.
Human capital: Human capital is the stock of habits, knowledge, social and personality attributes embodied in the ability to perform labour so as to produce economic value. Human capital is unique and differs from any other capital. It is needed by companies to achieve goals, develop and remain innovative.
Innovative Behaviour: Innovative behavior is the result of creativity and it involves converting creative process to profit.
Entrepreneurial: Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.
Self efficacy: Self-efficacy is a personal judgment of how well or poorly a person is able to cope with a given situation based on the skills they have and the circumstances they face.
Entrepreneurial Intensions: Entrepreneurial intention is defined as the conscious state of mind that precedes action and directs attention toward entrepreneurial behaviors such as starting a new business and becoming an entrepreneur.
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