The Entrepreneurial Intention of Business Students: Applying the Theory of Planned Behavior and Theory of Reasoned Action

Abstract

The Philippines is an entrepreneurial country, with MSMEs constituting 99.6% of registered businesses, employing 62.80% of the working population. The number of registered businesses in the country is increasing, especially among young entrepreneurs. This study highlights the significance of attitudes, norms, and self-efficacy in shaping entrepreneurial aspirations among the youth in the Philippines. It examines the entrepreneurial intention of graduating students pursuing Accountancy, Management Accounting, and Customs Administration degrees at the Lyceum of the Philippines University-Manila. The research is anchored on the study of Lars Kolveried & Espen Isaksen, which incorporates the Theory of Planned Behavior (TPB) and Theory of Reasoned Action (TRA) to develop hypotheses about attitudes toward entrepreneurship as a career and entrepreneurial intentions. Through Factor Analysis (Principal Axis Factoring), the researchers identified seven (7) factors that predict the intention to be self-employed: one (1) for attitude (Business than Career), two (2) for subjective norm (care about people's opinion and people's opinion), and four (4) for self-efficacy (Risk, Investor, Opportunity, and Economy). The findings suggest that factors such as attitudes toward entrepreneurship, subjective norms, and self-efficacy significantly impact students' intention to pursue self-employment. Notably, students who prioritize business over career, value other people's opinions, and possess greater self-efficacy in areas of risk, investment, opportunity, and the economy are more inclined towards self-employment. Conversely, factors such as extended academic tenure, managing cash flow concerns, and age negatively affect entrepreneurial intentions. Personal circumstances, including relationship status, location, employment status, and scholarships, can also influence students' likelihood of intending to be self-employed. Furthermore, market opportunities, investor relationships, and risk approaches positively influence students' entrepreneurial intentions.