A Psychological Perspective of Entrepreneurial Intentions Among the Business Graduates of Private Universities in Bangladesh

International Journal of Management (IJM) Volume 11, Issue 12, December 2020, pp.2682-2698, Article ID: IJM_11_12_252 Available online at http://iaeme.com/Home/issue/IJM?Volume=11&Issue=12 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.11.12.2020.252

Nazrul Islam School of Business, Uttara University, Dhaka, Bangladesh

Nabid Aziz Tourism Management Department Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalgonj, Bangladesh

Mohitul Ameen Ahmed Mustafi School of Business, Uttara University, Bangladesh

Amitava Bose Bapi School of Business, Uttara University, Bangladesh

ABSTRACT Bangladesh is one of the youngest countries in the world with more than half of its population being under the age of 25. The nation is in the transition period towards becoming a middle income country by the year 2021. To develop an entrepreneurship- based economy and sustain its continuous growth, university graduates can play a crucial role. At present, more than two third of the business graduates are going to the job markets from the private universities of Bangladesh. They are the important segment for the future growth and development of the country. It is opined that if the business graduates are properly educated for entrepreneurship development it would have a positive impact on the economic development of Bangladesh. Hence, this study aims at identifying the psychological perspective of entrepreneurial intensions among the business graduates of private universities in Bangladesh. This study was conducted among 205 business graduates of ten private universities of Bangladesh. The data were collected through surveying business graduates of private universities of Bangladesh with the help of a structured questionnaire which was developed through literature review. Both descriptive and inferential statistics were used to analyze the data. Multivariate analysis technique like exploratory factor analysis was performed to identify the psychological factors relating to the entrepreneurial intensions of the business graduates of private universities of Bangladesh. Confirmatory analysis confirmed five psychological factors such as, challenge taking attitude, proactive

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nature, confidence in decision making, quest for excellence, and exposure orientation of the graduates. Structural Equation Modeling (SEM) was performed to identify the relationships between the overall entrepreneurial intention and the psychological factors for entrepreneurial intension. Results show that Bangladeshi business graduates are proactive, they feel quest for excellence and they have exposure orientation which can make them entrepreneurs. However, they have lacks in challenge taking attitude and confidence in decision making. This study suggests that the policymakers of the country should give importance on the concerned issues in designing the educational and other policies in this regard. Key words: Entrepreneurial Intensions, Private Universities in Bangladesh, Exposure, Orientation, Proactive, Quest for Excellence, Exposure Orientation. Cite this Article: Nazrul Islam, Mohitul Ameen Ahmed Mustafi and Amitava Bose Bapi, A Psychological Perspective of Entrepreneurial Intentions among the Business Graduates of Private Universities in Bangladesh, International Journal of Management, 11(12), 2020, pp 2682-2698. http://iaeme.com/Home/issue/IJM?Volume=11&Issue=12

1. INTRODUCTION The importance of entrepreneurship has gained a significant recognition in the recent years in Asian countries. However, research on entrepreneurship is largely ignored until the late 19th and early 20th century (Habaragoda 2013). Over the past few decades, research on entrepreneurship has been growing steadily due to the importance of entrepreneurship in driving economic growth and creation of employment (Sandhu, Jain and Yusof 2010). The importance of entrepreneurship is further increased since entrepreneurs contribute towards greater market efficiency by increasing the competitive offering of new products and services. Hence, entrepreneurship has been recognized as an agent of change in the United Nations Conference on Trade and Development (UNCTAD). According to the United Nations, achieving the poverty reducing policy (MDG-1) and gender equity policy (MDG-3) of Millennium development goals (MDG) of Bangladesh depends on the development of entrepreneurship (Kabeer, 2005). Entrepreneurs are persons who take actions and are engaged in vigorous persistent efforts to convert their ideas and visions into profitable companies. This inclination for action is crucial to the entrepreneurial process. In the absence of action by individual entrepreneurs, there would simply be no entrepreneurship (Baron 2007). If entrepreneur’s actions are important for entrepreneurship, then it is reasonable to suggest that their behavior and cognition play an important role in this development process (Baron 2007). If their behavior is important, we can suggest that entrepreneur's personality and psychological aspects are important as because personality and psychological aspects of an individual influence their behavior in initiating new businesses. According to Global entrepreneurship report 2011, 42% of the individuals who are in between 18 and 64 years of age are either active entrepreneurially or intending to start a business in the next 3 years (Hart, et. at., 2015). But the rate of perceived capabilities (individuals who believe they have the required skills and knowledge to start a business) was the second lowest and the fear of failure was highest in Bangladesh in global comparisons. This report also suggests that there are more potentials of male startups in future if their skill level can be increased. Thus, proper education can increase the perceived capabilities and reduce the fear of failure of the entrepreneurs in Bangladesh. Graduate students from private universities in Bangladesh may have required characteristics and personality for being entrepreneurs but they

http://iaeme.com/Home/journal/IJM 2683 [email protected] Nazrul Islam, Mohitul Ameen Ahmed Mustafi and Amitava Bose Bapi are not aware that they possess those psychological characteristics that can help them to be entrepreneurs. This study will help to identify whether they have required psychological characteristics and personality to become entrepreneurs or not and will also help the academicians and the management of private universities to design their course curriculum in such a way where more and more students will become entrepreneurs in the country. Keeping this in mind, this paper aims at identifying the psychological factors of entrepreneurial intentions among the business graduates of private universities in Bangladesh.

2. LITERATURE REVIEW There is large number of literatures on how entrepreneurs are developed. Psychological aspect is one of those factors which can help to develop entrepreneurs. This study deals with the psychological aspects of the business graduates of private universities in Bangladesh. A number of empirical research studies on psychological factors predicting entrepreneurial intentions of the university graduates have already been conducted by different scholars at different time. In Sri Lanka, entrepreneurial intention level of the management undergraduates are in the weakest level. There are so many barriers for the lowest level of intention, such as problems in the financial assistance, lack of infrastructure facilities, lack of technological facilities, lack of awareness in the entrepreneurial field, lack of support from governmental and nongovernmental organizations (Achchuthan, & Balasundaram, 2014). The study in China showed that gender and parental role had a positive effect on career choice intent, with entrepreneurial self-efficacy significantly and partially mediated their relationship. Entrepreneurial alertness was found to moderate the relationship between some self-efficacy sub items and career choice intent. Furthermore, they suggested that Training on improving the responsiveness and alertness to entrepreneurial opportunities will help foster an entrepreneurial culture among graduates (Moy, & Luk, 2008). In Malaysian perspective, Akmaliah and Hisyamuddin (2009) concluded that Malaysian secondary school students were favorable towards becoming self-employed but they don’t have enough confidence to be an entrepreneur who is reflected by low correlation value between attitudes and self-employment intentions. Study in Pakistan proved that higher education grooms young graduates and prepared them for new venture creation and further confirmed that young graduates are more willing to form new businesses after gaining the relevant business and entrepreneurship education. And also they found that networking (Close family, friends & colleagues) and new venture creation are positively and significantly correlated (Mushtaq, Hunjra, Niazi, Rehman, & Azam, 2011). In European context, Leroy, Maes, Sels, Debrulle and Meuleman (2009) have conducted the study on gender effects on entrepreneurial intention among Belgian undergraduates. They suggested that important gender differences in the factors that shape entrepreneurial intentions. There seem to be important distinctions in the defining features of entrepreneurship of men versus women. Men seem to prefer entrepreneurship as a means of getting ahead and see financial restraints and creativity as important practical considerations in their decision to become an entrepreneur. In Spain, Linan (2008) concluded that Entrepreneurial skills perceptions have a significant effect over the three motivational constructs considered (personal attraction, subjective norms and perceived behavioral control). Therefore, the developing skills as opportunity recognition, creativity, problem solving, leadership and communication, innovation and networking are needed for successful entrepreneurship. In the African context, Maalu, Nzuve and Magutu (2010) have investigated the reasons for the creation of new enterprises and the entrepreneurial characteristics and identified that the goals in entrepreneurial ability are influenced by factors such as: maximum utilization of own skills and talents; full control of own future; achievement of what one values personally; being “my own boss”; the freedom/opportunity to make own decisions; the opportunity to learn new things; financial security; performing challenging and exciting work; having peace of mind with a peaceful and stress-free life; allocation of enough

http://iaeme.com/Home/journal/IJM 2684 [email protected] A Psychological Perspective of Entrepreneurial Intentions among the Business Graduates of Private Universities in Bangladesh free time for family, hobbies, leisure, and other interests; an opportunity to extend one’s range of abilities, a goal to accumulate wealth; desire to live an adventurous and exciting life; the goal to start own business, striving for an idea to own business, an ultimate goal to be self employed and the wish to become an influential person to the future. Study also found that taking entrepreneurship course, role model occupation, using of learning by doing approach, gender and family work expectation were significant predictors of entrepreneurial intention (Megibaru, 2014). In another study, it was concluded that: (a) people who sees failure as an ingredient towards accomplishing their desire tend to believe in their own ability to control their own destiny, be it psychological or financial uncertainties, (b) need for achievement, locus of control and risk taking propensity combined together were effective in predicting the entrepreneurial intentions of the university undergraduate students (Inuwa, & Mohammed, 2017). Entrepreneurship education, parents’ education and number of children in a family determine entrepreneurial tendencies of Tanzanian graduates (Katundu, & Gabagambi, 2014). Among the variables that we considered in our study, we found that subjective norms, personal attitudes and perceived behavioral control influence positively students’ entrepreneurial intention in East Africa. In contrast, care about others’ opinion does not influence students’ entrepreneurship intention in East Africa 1]. In Bangladesh, it has been observed from the data analysis that students have higher preference to start a new business, but the strength of entrepreneurial intention is not high. They are risk averse and most of the students prefer salaried job as a profession. The intention increases with age (Naim, 2018). It was found that the most influential factor is creativity and that entrepreneurial intentions increased with increase in age (Agbim, Oriarewo, & Owocho, 2013). Study on Sunyani Polytechnic Marketing Students found that there is high entrepreneurial intention among the respondents. It was also revealed that there are important motivators for intention as well as obstacles to setting up ones firm (Samuel, Ernest, & Awuah, 2013). Except need for achievement, all other factors like innovativeness, locus of control, propensity to take the risk, need for achievement, self-confidence and tolerance to ambiguity showed significant positive impact on entrepreneurial intentions of students. While no difference in entrepreneurial intentions was found between male and female students. And also no difference was found between business students and agriculture students about their intentions for becoming entrepreneurs (Bux, & Honglin (2015). Study also revealed that both social factors such as family background, education system and social status and psychological factors like need for achievement, propensity to risk and locus of control are quite prominent and significant indicators to become entrepreneurs in Indonesia (Rokhman, & Ahamed, 2015). Study also contributes to the pool of knowledge by revealing the factors that influence the entrepreneurial intention of Ghanaian tertiary students. This is very significant to the development of entrepreneurial activities in Ghana especially in developing curriculum for entrepreneurial education and governmental policies to boost entrepreneurship in the nation (Richmell, Augustine, Emmanuel, 2018). The summary of the factors and findings of the research is shown in Appendix 1. Based on literature review, a conceptual framework has been developed which is shown in Figure 1.

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Figure 1 A Conceptual Framework of Psychological Factors of the University Graduates

3. RESEARCH METHODS 3.1. Data Sources This study is based on both primary and secondary sources of information. Primary data were collected from the business graduates of private universities of Bangladesh. A total of 205 BBA graduates from 11 private universities were included in the sample respondents. The sample distribution is shown in Table 1.

Table 1 Sample Distribution of the Respondent Graduates Name of the Universities Sample Cumulative Respondents 1. Uttara University 29 29 2. Shanto-Mariam University of Creative Technology 24 53 3. Asian University 21 74 4. BGMEA University of Fashion & Technology 23 97 5. Southeast University 23 120 6. Daffodil International University (DIU) 13 133 7. Eastern University 12 145 8. State University of Bangladesh (SUB) 19 164 9. East West University (EWU) 18 182 10. American International University of Bangladesh (AIUB) 11 193 11. Independent University Bangladesh (IUB) 12 205 Source: Survey

3.2. Determination of Sample Size To determine the sample size of the graduates by using the formula published by University of Florida was used as a reference. This study used formula for taking sample data from population suggested by Yamane (1967). n= 푁 (1+푁푒2)

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Where, n=Sample Size, N= Population, e=Level of Precision, in calculating number of sample the following assumptions were made to determine, n=204, if Population Size is more than 100000; Level of precision is 7%.

3.3. Questionnaire Design and Test of Reliability We have selected 205 respondents from 11 private universities in Bangladesh. A structured questionnaire with 37 items was used to collect the data. The data were collected through surveying the graduates with the help of a structured questionnaire which was developed by literature review (Bezzina, 2010). This structured questionnaire with the 5-points scale was developed for the items related to psychological perspective of entrepreneurial intentions among the business graduates of private universities in Bangladesh. Two demographic variables, namely, age, and education level were taken to ensure the variability of different variables.

3.4. Data Collection The sample respondents were selected by using the convenience sampling method. After collecting 220 data, incomplete, biased, and or abnormally answered data were discarded through scrutinizing process and finally 205 data were used in the analysis. The reliability of 37 items in the questionnaire has been tested by using SPSS software.

3.5. Participants and Procedures Out of 205 respondents, 72% are from 28-35 years, 22% are from 36-45 years and 6% are from 45 yrs and above age group. With regards to education, 5% completed primary, 10% secondary, 20% higher secondary, 22% honors and 43% completed Master’s education (Table 2).

Table 2: Descriptive Statistics Particulars Frequency Percent Age 28-35 years 147 71.71 36-45 years 45 21.95 45 years and above 13 6.34 Education Primary 10 4.88 Secondary 20 9.76 Higher Secondary 40 19.51 Honors 45 21.95 Masters 90 43.90

3.6. Normality of Data According to Tabachnick and Fidell (2001), the value of Skewness and kurtosis statistic lies between -4 to +4 that is deemed to be acceptable. Table 3 shows that all the data met the acceptable range indicating the normal distribution of data.

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Table 3 Normality of the Information Descriptive Statistics Variables N Skewness Kurtosis Statistic Statistic Statistic I keep an optimistic attitude towards life 205 .293 -.479 I like to meet the challenges 205 .078 -.754 I pay attention to exercise management ability 205 .281 -.307 I pay attention to supplement the knowledge outside of the 205 -.220 -.688 professional To complete the task, I always make plans in advance 205 -.149 -.860 I want to shoot for excellence in everything I do. 205 .146 -1.027 I have no dull attitude towards life 205 -.503 -.709 I always try to learn lessons from my failures. 205 .323 -.606 The entrepreneurship is my dream 205 .279 -.931 I do things proactively 205 -.631 .632 For completed tasks, I am good at learning lessons 205 -.833 1.665 I cooperate well with others 205 -.634 1.101 I have a resilient toughness 205 -.629 1.287 I want to be the sole decision maker and have liberty to take 205 -.409 -.246 any action I deem necessary. I prefer being my own boss. 205 -.533 .082 I am a lot less effective in stressful situation 205 -.727 .588 When I take on a project I have confidence that I will carry it 205 -1.096 2.149 out successfully The entrepreneurship will enable me to fully display my 205 -.940 1.985 abilities I have been concerned about the entrepreneurship-related 205 -.668 .978 information The entrepreneurship can realize my own value 205 -.817 2.569

3.7. Analytical Tools Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics like mean, standard deviation, a simple percentage was used to describe the psychological perspective of entrepreneurial intentions among the business graduates of private universities in Bangladesh. Along with descriptive statistics 2] inferential statistical 3] techniques such as, Factor Analysis and Multiple Regression Analysis were used to analyze the data. A Principal Component Analysis (PCA) with an Orthogonal Rotation (Varimax)4] using the SPSS (Statistical Package for Social Sciences) was performed on the survey data. Multiple Regression Analysis5]was run to identify the relationships between the dependent and independent variables of the model. Inferential statistics like Factor Analysis (FA) was used to separate the factors related to the selection of the restaurant for dining. Multiple Regression Analysis (MRA) was used to identify the significant factors from the factors identified through factor analysis. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were also conducted to identify the significant factors concerning the selections of the restaurant for dining. The overall selection of the restaurant customers was also identified in this analysis.

3.8. Test of Reliability and Validity To analyze the reliability of the data, this study used the Cronbach’s alpha, composite reliability, average variance extracted from the data are shown in Table-6 which is at the acceptable limit as per Nunnally and Berstein (1994), Hair et al. 1998, Fornell & Larcker, (1981); Henseler, Ringle, & Sinkovics, (2009) respectively.

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For checking the discriminant validity, we followed Fornell Larcker’s (1981) criterion that compares the AVE value with corresponding correlation values with other variables. The square-root value of AVE needs to be greater than the corresponding correlation values with other variables (Hair et al., 2014). The Discriminant Validity of the factors is shown in Table 4.

Table 4 Discriminant Validity Descriptive Factors Correlations Statistics Mean SD 1 2 3 4 5 1. Challenge Facing Attitude 3.01 1.01 0.83 2. Proactive 3.14 0.84 .475 0.91 3. Confidence in Decision Making 3.92 0.71 .171 .165 0.86 4. Quest for Excellence 3.74 0.7 .165 .140 .346 0.79 5. Exposure Orientation 3.53 0.75 0.06 .123 .289 .277 0.84

3.9. The Coefficient of Determination The analysis shows that the R square value of the model is 0.459. That means all three independent factors like normative factors, regulative factors; cognitive factors explained 45.9% of the variance in the overall psychological state of the graduates to be entrepreneurial in Bangladesh.

4. RESULTS AND DISCUSSIONS This section describes the results of Exploratory Factor Analysis (EFA), results of Confirmatory Factor Analysis (CFA), and Structural Equation Model (SEM).

4.1. Results of Exploratory Factor Analysis (EFA) To assess EFA, four commonly used assumptions were followed (Hair et al., 1998; Field, 2000): (i) sampling adequacy (Kaisers – Mayesolkin) measure greater than 0.5; (ii) the minimum eigenvalue for each factor; (iii) considering the sample size, factor loading of 0.50 for each item considered as the threshold for retaining items to ensure greater confidence; and (iv) varimax rotation was used since it is a good general approach that simplifies the interpretations of the factors (Field, 2000). Table 4 shows the results of exploratory factor analysis. Hair et al. (2010) suggested that factor the analysis can be performed when Kaiser-Meyer-Olkin (KMO) Test and Bartlett's Test of Sphericity are significant. An index of Kaiser’s measures of sampling adequacy (Overall MSA= 0.841) and Bartlett's Test of Sphericity 휒2(p=0.000) suggested that the factor analysis is appropriate for analyzing the data of this study (Table 5). After examining the pattern matrix of EFA, this study found that all the items had factor loadings greater than 0.50 (Table 6).

Table 5: Results of Kaiser-Meyer-Olkin (KMO) Test and Bartlett's Test KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .887 Bartlett's Test of Sphericity Approx. Chi-Square 2.717E3 df 190 Sig. .000

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This result indicates that the factor analysis is appropriate. After confirming research constructs, principal components analysis and the varimax rotation method were specifically used to extract factors from 36 items. Hair et al. (2010) recommended that each item factors loading must be more than 0.50 values that are considered highly significant. Based on eigenvalue greater than 1, a five-factor model was identified that explains 74.33% of the total variance of the data set. As a whole, 20 items were grouped (based on eigenvalue) into five different factors like Challenge Facing Attitude, Proactive, Confidence in Decision Making, Quest for Excellence, and Exposure Orientation by the analysis. The EFA result also showed 0.719 as the lowest and 0.943 as the highest factor loadings of the variables. The result of the factor analysis showed that all the factors, as a whole, are acceptable for further analysis (Table 6).

Table 6 Psychological Factors of the Business Graduates Regarding Entrepreneurial Intentions Factors Component Matrix Name Variables Name Component 1 2 3 4 5 Challenge Facing Attitude, Alpha=0.75, AVE=0.689, CR=0.917 I like to meet the challenges .903 I pay attention to exercise management ability .861 I pay attention to supplement the knowledge .805 outside of the professional Challenge To complete the task, I always make plans in .795 Facing advance Attitude I keep an optimistic attitude towards life .779 Proactive, Alpha=0.78, AVE=0.823, CR=0.949 I have a resilient toughness .943 I cooperate well with others .940 Proactive For completed tasks, I am good at learning .883 lessons I do things proactively .860 Confidence in Decision Making, Alpha=0.82, AVE=0.746, CR=0.921 I prefer being my own boss. .917 I am a lot less effective in stressful situation .915 Confidence When I take on a project I have confidence that I .869 in Decision will carry it out successfully Making I want to be the sole decision maker and have .741 liberty to take any action I deem necessary. Quest for Excellence, Alpha=0.83, AVE=0.634, CR=0.873 I have no dull attitude towards life .840 I want to shoot for excellence in everything I do. .806 Quest for I always try to learn lessons from my failures. .792 Excellence The entrepreneurship is my dream (Q25) .743 Exposure Orientation , Alpha=0.87, AVE=0.701, CR=0.875 I have been concerned about the .904 entrepreneurship-related information The entrepreneurship will enable me to fully .877 Exposure display my abilities Orientation The entrepreneurship can realize my own value .719 Total 7.98 2.34 1.91 1.45 1.17 % of Variance 39.94 11.71 9.57 7.25 5.85 Cumulative % 39.94 51.65 61.22 68.48 74.33 Note: AVE>0.50 (Fornell & Larcker, 1981); Henseler, Ringle, & Sinkovics, 2009), Composite Reliability>0.70 (Hair et al. 1998), Cronbach’s alpha>=0.60, (Nunnally and Berstein (1994)).

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4.2. Results of Confirmatory Factor Analysis (CFA) CFA was performed to confirm the unidimensionality of the measurement that resulted from the EFA. The relative Chi-Square for this model was 1.349 that was smaller than 5.0 recommended by Marsh and Hocevar (1985). Other fit indexes also showed a good fit for the measurement model. The GFI is of the model is 0.907 which is greater than the recommended value of 0.90 (Joreskog & Sorbom (1993). Furthermore, the non-incremental fit index, such as the comparative fit index (CFI) is 0.979 that exceeds the recommended cut-off level of 0.90 (Bentler, 1990). Finally, the Root Means Square Error of Approximation (RMSEA) is 0.041, which is also less than the suggested good fit to the data (Browne & Cudeck, 1993). The summary result is shown in Table 7. The fit indices showed good model fit to the data. The other model fit indices are SRMR = 0.043, and RMR = 0.031 (Table 7 & Figure 2).

Table 7 Model Fit Indices and Their Acceptable Thresholds Goodness of Fit Indices Value Level of acceptance Reference Chi-square/df 1.349 < 5.0 Marsh and Hocevar (1985) CFI .979 >0.90 Bentler (1990) RMR .031 <0.08 Hu & Bentler (1998) GFI .907 >0.90 Joreskog & Sorbom (1993) RMSEA .041 <0.08 Browne & Cudeck (1993) SRMR .043 <0.05 Hu and Bentler (1999) In sum, the measurement model exhibited a fairly good fit for the data collected. The measurement model was further assessed for construct reliability and validity. Construct reliability can be interpreted as the resultant coefficient that is similar to that of Cronbach’s alpha, except that it also takes into account the actual factor loadings rather than assuming each item to be equally weighted in the composite load determination. The construct reliability for all the factors is above 0.70 in the measurement model, which can be identified as an acceptable threshold (Hair et al. 1998).

Figure 2 Confirmatory Factor Analysis (CFA) of the Constructs Note: F1= Challenge Facing Attitude, F2=Proactive, F3=Confidence in Decision Making, F4=Quest for Excellence, F5=Exposure Orientation.

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4.3. Results of Structural Model (SEM) A multivariate analysis technique like covariance-based structural equation modeling was used to identify the significant relationships between overall factor concerning overall psychological factors of the business graduates and the factors identified through factor analysis like Challenge Facing Attitude, Proactive, Confidence in Decision Making, Quest for Excellence, and Exposure Orientation. Table 8 lists the structural parameter estimates and hypothesis testing results. This study examines the impact of challenge facing attitude, proactive nature, confidence in decision making, quest for excellence, and exposure orientation on overall psychological state of the graduates to be entrepreneurial in Bangladesh. The path diagram of this study revealed that only three factors like Proactive (훽=0.243, p=.006), Quest for Excellence (훽=0.190, p=.008), and Exposure Orientation (훽=0.384, p=.005) positively influence the business graduates to be entrepreneurial in Bangladesh (Figure 2). But Challenge Facing Attitude (훽=0.137, p=.106), and Confidence in Decision Making (훽=0.146, p=.07) are not significantly related to the psychological aspects of the graduates to be entrepreneurial in Bangladesh. Hence, the results showed the support for H2, H4, and H5 but not H1, and H3 in this study.

Table 8 Results of Structural Relationships Estimate S.E. C.R. P Decisions Overall <--- Challenge Facing Attitude .137 .085 1.617 .106 Not Significant Overall <---Proactive .243 .088 2.750 .006 Significant Overall <----Confidence in Decision Making .146 .080 1.815 .070 Not Significant Overall<---Quest for Excellence .190 .072 2.635 .008 Significant Overall <---Exposure Orientation .384 .136 2.823 .005 Significant R-square 0.459

Figure 3 Path Model

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5. CONCLUSIONS AND RECOMMENDATIONS This study was conducted to identify the psychological factors of the business graduates that are important to be entrepreneurial in Bangladesh. To identify the factors, this study performed Exploratory Factor Analysis (EFA), results of Confirmatory Factor Analysis (CFA), and Structural Equation Model (SEM). This study identified five psychological factors of the business graduates of Bangladesh who have the chance to be entrepreneurs. The factors are: Challenge Facing Attitude, Proactive, Confidence in Decision Making, Quest for Excellence, and Exposure Orientation. It also identified that the measurement model is fairly good fit for the data collected. A multivariate analysis technique like covariance-based structural equation modeling was used to identify the significant relationships between overall factor concerning overall psychological factors of the business graduates and the factors identified through factor analysis like Challenge Facing Attitude, Proactive, Confidence in Decision Making, Quest for Excellence, and Exposure Orientation. This study also examined the impact of the challenge facing attitude, proactive nature, confidence in decision making, quest for excellence, and exposure orientation of the graduates on the overall psychological state of the graduates to be entrepreneurial and identified that proactive nature, quest for excellence and exposure orientation significant. It also identified that the factors such as, challenge facing attitude and confidence in decision making are not significantly related to the psychological aspects of the business graduates to be entrepreneurial in Bangladesh. However, there is an ample scope to conduct further study on this issue by taking more samples and the university under consideration that may identify additional psychological factors that are related to entrepreneurial intension of the business graduates in Bangladesh.

KEYNOTES 1] http://africabusiness.org/wp-content/uploads/2017/10/6_Friend-Rukundo_entrepreneurial- intentions-among-university-students-in-east-7-2-1.pdf 2] Descriptive statistics includes statistical procedures that we use to describe the population we are studying. The data could be collected from either a sample or a population, but the results help us organize and describe data. Descriptive statistics can only be used to describe the group that is being studying. That is, the results cannot be generalized to any larger group. 3] Inferential statistics is concerned with making predictions or inferences about a population from observations and analyses of a sample. That is, we can take the results of an analysis using a sample and can generalize it to the larger population that the sample represents. 4] Varimax rotation is an orthogonal rotation of the factor axes to maximize the variance of the squared loadings of a factor (column) on all the variables (rows) in a factor matrix, which has the effect of differentiating the original variables by extracted factor. Each factor will tend to have either large or small loadings of any particular variable. A varimax solution yields results which make it as easy as possible to identify each variable with a single factor. This is the most common rotation option. 5] In statistics, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables. More specifically, regression analysis helps one understand how the typical value of the dependent variable (or 'Criterion Variable') changes when any one of the independent variables is varied, while the other independent variables are held fixed.

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REFERENCES [1] Achchuthan, S., & Balasundaram, N. (2014). Level of entrepreneurial intention of the management undergraduates in the University of Jaffna, Sri Lanka: scholars and undergraduates perspective. South Asian academic Research Journal, ISSN: 2249-7137, Vol.2, issue 10, October 2012 issue, pp- 24-42 [2] Agbim, K. C., Oriarewo, G. O., & Owocho, M. (2013). Factors influencing entrepreneurial intentions among graduates of Nigerian tertiary institutions. International Journal of business and management invention, 2(4), 36-44. [3] Akmaliah, Z.P., Hisyamuddin, H. (2009). Choice of self employment intentions among secondary school students: The Journal of International Social Research, 2 (9), 540-549. [4] Amir, A. R., Mohamad, A., & Abdullah, S. (2013). Factors that Influence UiTM’s Undergraduates towards Entrepreneurial Intentions. International Journal of Education and Research 1 (11), 1-8. [5] Bako, Y. A., Ajibode, I. A., OLUSEYE, A., & ALADELUSI, K. (2017). An Investigation of Entrepreneurial Intention among Entrepreneurship Students In South-West Nigeria Polytechnics. International Journal of Entrepreneurial Knowledge, 5(2), 16-32. [6] Baron, R. A. (2007). Behavioral and cognitive factors in entrepreneurship: Entrepreneurs as the active element in new venture creation. Strategic entrepreneurship journal, 1(1‐2), 167-182. [7] Bentler, P. M. (1990). Comparative Fit Indexes in Structural Models. Psychological Bulletin, 107(2), 238-246. [8] Bezzina, F. (2010). Characteristics of the Maltese entrepreneur. International Journal of Arts and Sciences, 3(7), 292-312. [9] Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. Sage focus editions, 154, 136-136. [10] Bux, S. R., & Honglin, Y. (2015). Analyzing the impact of the psychological characteristics on entrepreneurial intentions Among university students. Advances in Economics and Business, 3(6), 215-224. [11] Dzomonda, O., Fatoki, O., & Oni, O. (2013). The Effect of Psychological and Contextual Factors on The Entrepreneurial Intention of University Students In South Africa. Corporate Ownership & Control, Gadjahmada International of Business. Vol. 15. No. 3. 1297. [12] Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 382-388. [13] Habaragoda, B.S, (2013). Exploring the impact of psychological characteristics on entrepreneurial inclination: a study of management undergraduates’ inclination toward entrepreneurship in Sri Lankan universities. Vol. 1.No. 4. [14] Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. 1998. Upper Saddle River. [15] Hart, M., Levie, J., Bonner, K., & Drews, C. C. (2015). Global Entrepreneurship Monitor United Kingdom 2014 Monitoring Report. [16] Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in international marketing, 20, 277-319. [17] Hu, L. T., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to under parameterized model misspecification. Psychological methods, 3(4), 424-453. [18] Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: a multidisciplinary journal, 6(1), 1-55. [19] Inuwa, B. M., & Mohammed, D. I. (2017). Relationship between Psychological Factors and Entrepreneurial Intentions of University Undergraduates in North East, Nigeria. Journal of Technical Education and Training, 9(2).

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[20] Jöreskog, K. G., & Sörbom, D. (1993). LISREL 8: Structural equation modeling with the SIMPLIS command language. Scientific Software International. [21] Kabeer, N. (2005). Gender equality and women's empowerment: A critical analysis of the third millennium development goal 1. Gender & Development, 13(1), 13-24. [22] Katundu, M. A., & Gabagambi, D. M. (2014). Determinants of Entrepreneurial Tendencies among Tanzanian University Graduates: A Case of University of Dar-es-Salaam. European academic research, 2(1), 835-869. [23] Krueger,N., M. Reilly, and A. Carsrud. 2000. Competing models of entrepreneurial Intentions. Journal of Business Venturing 15(5/6): 411–532 [24] Leroy, H., Maes, J., Sels, L., & Debrulle, J. (2009). Gender effects on entrepreneurial intentions: A Tab Multi Group Analysis at factor and indicator level: Paper presented at the Academy of Management Annual Meeting, Chicago (USA). [25] Linan, F. (2008). Skill and value perception: How do they affect entrepreneurial intention: International Entrepreneurship Management Journal, 4, 257-272 [26] Liang, C. T., Lee, J. L., & Liang, C. (2015). Interaction of psychological factors in shaping entrepreneurial intention among computer and electrical engineering students. Journal of Entrepreneurship, Management and Innovation, 11(2), 5-30. [27] Maalu, J.K., Nzuve, S.M., & Magutu, P.O. (2010). A survey of personal goals and perception of entrepreneurial ability among students at the school of business, University of Nairobi. [28] Marques, C. S., Ferreira, J. J., Gomes, D. N., & Rodrigues, R.G. (2012). Entrepreneurship education: How psychological, demographic and behavioural factors predict the entrepreneurial intention. Education+ Training, 54(8/9), 657-672. [29] Marsh, H. W., & Hocevar, D. (1985). Application of confirmatory factor analysis to the study of self-concept: First-and higher order factor models and their invariance across groups. Psychological bulletin, 97(3), 562-582. [30] Megibaru, S. (2014). Socio-Demographic Determinants for Entrepreneurial Intention of University Students: The Case of University of Gondar Graduating Students. Ethiopian Journal of Business and Economics (The), 4(1), 50-82. [31] Moy, W.H., & Luk, W.M. (2008). A psychological based investigation of entrepreneurial career choice intent in china: Hong Kong Baptist University. [32] Mushtaq, H.A., Hunjra, A.I., Niazi, S.K., Rehman, K., & Azam, R.I. (2011). Planned behavior entrepreneurship and intention to create a new venture among young graduates: Management & Marketing Challenge for the Knowledge Society, 6 (3), 437-456. [33] Naim, S. J. (2018). Analysis of Entrepreneurial Intention Among Students in Business Schools of Bangladesh. IJMBS, 8(1), 21-26. [34] Nunnally, J. U. M. (1994). C., BERSTEIN, Ira H. Psycometric theory. New York: McGraw Hill. [35] Owoseni, O.O. (2014). The influence of some personality factors on entrepreneurial intentions. International Journal of Business and Social Science 5(1), 278-284. [36] Phuong, T.H. & Hieu, T.T. (2015). Predictors of Entrepreneurial Intentions of Undergraduate Students in Vietnam: An Empirical Study. International Journal of Academic Research in Business and Social Sciences 5(8), 46–55. [37] Rasli, A., Khan, S. U. R., Malekifar, S., & Jabeen, S. (2013). Factors affecting entrepreneurial intention among graduate students of Universiti Teknologi Malaysia. International Journal of Business and Social Science, 4(2). [38] Richmell, B, A., Augustine, A., Emmanuel, K. O. (2018). An Exploratory Study of Entrepreneurial Intention among University Students in Ghana. International Journal of Scientific & Technology Research Volume 7, ISSUE 1, PP. 140-148

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[39] Rokhman, W., & Ahamed, F. (2015). The role of social and psychological factors on entrepreneurial intention among Islamic college students in Indonesia. Entrepreneurial Business and Economics Review, 3(1), 29-42. [40] Samuel, Y. A., Ernest, K., & Awuah, J. B. (2013). An assessment of entrepreneurship intention among Sunyani Polytechnic Marketing students. International Review of Management and Marketing, 3(1), 37-49. [41] Sandhu, M. S., Jain, K. K., & Yusof, M. (2010). Entrepreneurial inclination of students at a private university in Malaysia. New England Journal of Entrepreneurship, 13(1), 61-72. [42] Sivarajah, K., & Achchuthan, S. (2013). Entrepreneurial Intention among Undergraduates: Review of Literature. European Journal of Business and Management, 5(5), 172-186. [43] Tabachnick, B. G., & Fidell, L. S. (2001). Using Multivariate Statistics. New York: Harper Collins [44] Uddin, M.R. & Bose, T.K. (2012). Determinants of Entrepreneurial intention of Business students in Bangladesh. International Journal of Business and Management 7(24), 128-137. [45] Urban, B. (2010). A gender perspective on career preferences and entrepreneurial self-efficacy. SA Journal of Human Resource Management, 8(1), 1-8. [46] Uygun, R. and Kasimoglu, M. (2013). The Emergence of Entrepreneurial Intentions in Indigenous Entrepreneurs: The Role of Personal Background on the Antecedents of Intentions. International Journal of Management and Business Research, 8(5), pp. 24 - 40. [47] Wilson, F., Kickul, J. and Marlino, D. (2007). Gender, entrepreneurial Self‐ Efficacy, and entrepreneurial career intentions: Implications for entrepreneurship Education. Entrepreneurship Theory and Practice, 31(3), 387 - 406.

APPENDIX 1

Psychological Factors of Entrepreneurial Intention among the University Students 1. Achchuthan, & In Sri Lanka, entrepreneurial intention level of the management undergraduates is Balasundaram, 2014 in the weakest level. There are so many barriers for the lowest level of intention, such as problems in the financial assistance, lack of infrastructure facilities, lack of technological facilities, lack of awareness in the entrepreneurial field, lack of support from governmental and nongovernmental organizations. 2. Moy, & Luk, 2008 The study showed in China that Gender and parental role had a positive effect on career choice intent, with entrepreneurial self-efficacy significantly and partially mediated their relationship. Entrepreneurial alertness was found to moderate the relationship between some self-efficacy sub items and career choice intent. Furthermore, they suggested that Training on improving the responsiveness and alertness to entrepreneurial opportunities will help foster an entrepreneurial culture among graduates. 3. Akmaliah and Malaysian secondary school students were favorable towards becoming self- Hisyamuddin (2009 employed but they don’t have enough confidence to be an entrepreneur. which is reflected by low correlation value between attitudes and self-employment intentions. 4. Mushtaq, Hunjra, Study in Pakistan, proved that higher education grooms’ young graduates and Niazi, Rehman, & prepared them for new venture creation and further confirmed that young Azam, 2011 graduates are more willing to form new businesses after gaining the relevant business and entrepreneurship education. And also, they found that networking (Close family, friends & colleagues) and new venture creation are positively and significantly correlated. 5. Leroy, Maes, Sels , In European context, Leroy, Maes, Sels, Debrulle and Meuleman (2009) have Debrulle and conducted the study on gender effects on entrepreneurial intention among Belgian Meuleman (2009) undergraduates. They suggested that important gender differences in the factors that shape entrepreneurial intentions. There seem to be important distinctions in the defining features of entrepreneurship of men versus women. Men seem to

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prefer entrepreneurship as a means of getting ahead and see financial restraints and creativity as important practical considerations in their decision to become an entrepreneur. 6. , Linan (2008) In Spain, Linan (2008) concluded that Entrepreneurial skills perceptions have a significant effect over the three motivational constructs considered (personal attraction, subjective norms and perceived behavioral control). Therefore, the developing skills as opportunity recognition, creativity, problem solving, leadership and communication, innovation and networking are needed for successful entrepreneurship. 7. Maalu, Nzuve and In the African context, Maalu, Nzuve and Magutu (2010) have investigated the Magutu (2010) reasons for the creation of new enterprises and the entrepreneurial characteristics and identified that the goals in entrepreneurial ability are influenced by factors such as: maximum utilization of own skills and talents; full control of own future; achievement of what one values personally; being “my own boss”; the freedom/opportunity to make own decisions; the opportunity to learn new things; financial security; performing challenging and exciting work; having peace of mind with a peaceful and stress-free life; allocation of enough free time for family, hobbies, leisure, and other interests; an opportunity to extend one’s range of abilities, a goal to accumulate wealth; desire to live an adventurous and exciting life; the goal to start own business, striving for an idea to own business, an ultimate goal to be self employed and the wish to become an influential person to the future. 8. Megibaru,2014 Study also found that taking entrepreneurship course, role model occupation, using of learning by doing approach, gender and family work expectation were significant predictors of entrepreneurial intention. 9. Inuwa, & In another study, it was concluded that: (a) people who sees failure as an Mohammed, 2017 ingredient towards accomplishing their desire tend to believe in their own ability to control their own destiny, be it psychological or financial uncertainties. (b) need for achievement, locus of control and risk-taking propensity combined together were effective in predicting the entrepreneurial intentions of the university undergraduate students. 10. Katundu, & Entrepreneurship education, parents’ education and number of children in a family Gabagambi, 2014 determine entrepreneurial tendencies of Tanzanian graduates 11. Naim, 2018 In Bangladesh, it has been observed from the data analysis that students have higher preference to start a new business, but the strength of entrepreneurial intention is not high. They are risk averse and most of the students prefer salaried job as a profession. The intention increases with age. 12. Agbim, Oriarewo, & It was found that the most influential factor is creativity and that entrepreneurial Owocho, 2013 intentions increased with increase in age. 13. Samuel, Ernest, & Study on Sunyani Polytechnic Marketing Students found that there is high Awuah, 2013 entrepreneurial intention among the respondents. It was also revealed that there are important motivators for intention as well as obstacles to setting up one’s firm. 14. Bux, & Except need for achievement, all other factors like innovativeness, locus of Honglin,(2015 control, propensity to take the risk, need for achievement, self-confidence and tolerance to ambiguity showed significant positive impact on entrepreneurial intentions of students. While no difference in entrepreneurial intentions was found between male and female students. And also no difference was found between business students and agriculture students about their intentions for becoming entrepreneurs. 15. Rokhman, & Results revealed that both social factors such as family background, education Ahamed, 2015 system and social status and psychological factors like need for achievement, propensity to risk and locus of control are quite prominent and significant indicators to become entrepreneurs in Indonesia. 16. Richmell, Augustine, This study contributes to the pool of knowledge by revealing the factors that Emmanuel, 2018 influence the entrepreneurial intention of Ghanaian tertiary students. This is very significant to the development of entrepreneurial activities in Ghana especially in developing curriculum for entrepreneurial education and governmental policies to boost entrepreneurship in the nation.

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17. Dzomonda, O., Both psychological and contextual factors positively impact on entrepreneurial Fatoki, O., & Oni, O. intention. There is no significant gender difference. (2013). 18. Rasli, A., Khan, S. U. This study supports the proposition that conviction is the strongest variable that R., Malekifar, S., & has direct influence towards entrepreneurial intention, whereas general attitude Jabeen, S. (2013). has a significant influence as well as those male students with work experience were found to have higher entrepreneurial intention. 19. Bako, Y. A., Ajibode, This study revealed that parental entrepreneurship skills directly influence I. A., OLUSEYE, A., students’ entrepreneurial intention. & ALADELUSI, K. (2017). 20. Liang, C. T., Lee, J. An increase in self-efficacy increased the entrepreneurial intention of students L., & Liang, C. exhibiting either high or low negative emotion. (2015). 21. Uygun and Discover what initiates individuals to become entrepreneurs and start new Kasimoglu,(2013), businesses. This is because new business start-ups are not accidental rather these Wilson et al., (2007), so called “entrepreneurial actions” are very much intentional. Therefore, the Urban (2010). initiation of a new business venture is commonly defined as a purposive as well as intentional career choice. 22. Krueger, Reilly and It is important to study entrepreneurial intention because it facilitates researchers Carsrud (2000) in explaining as well as modeling the reason as to why a substantial number of entrepreneurs decide to start their own business. 23. Marques et al. Studies have revealed that there is a sizeable consensus on the ability of intention (2012). to predict entrepreneurial behavior. 24. Uddin and Bose The model of their studies indicates that student tendency for taking risk, need for (2012) achievement, job security, and entrepreneurship education offered by university students are the strongest determinants for starting a business. The findings of the study concluded that combination of moderate risk taking and high degree of innovativeness is always the lethal weapon for starting as well as sustaining a new business venture. 25. Amir, Mohamad and It identified need for achievement and risk-taking propensity are significant Abdullahi (2013) factors with the dependent variable (Entrepreneurship intention). 26. Owoseni (2014) This study investigated the influence of some personality factors on entrepreneurial intentions. The results indicated that there was a significant relationship between achievement motivation and entrepreneurial intention. 27. Phuong, T.H. & Study on “Predictors of Entrepreneurial Intentions of University Undergraduate Hieu, T.T. (2015). Students in Vietnam” using 180 students from several universities identified that all the independent variables of the research, comprising of risk-taking propensity, locus of control, need for achievement, perceived support and creativity had a strong impact on the intention to start business.

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