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Influence of Personality Traits and Socio-demographic Background of Undergraduate Students on Motivation for Entrepreneurial Career:The Case of Sri Lanka*
BUSIGE NISHANTHA
**
 
 Department of Management & Organization Studies, University of Colombo, Colombo03,Sri Lanka
nishantha@fmf.cmb.ac.lk 
Abstract
This study explored the relationship existing between personality traits and socio-demographic background of business management undergraduates toward an entrepreneurial career (self employment) intention. Data were collected from 107 business management undergraduates atthe University of Colombo. The respondents were assessed on three personality traits (risk taking propensity, internal locus of control and need for achievement), and three socio-demographicfactors which are related to their personal background (Parents’ occupation, gender and previousself employment experience). The results revealed that there is a significant relationship between personality traits and entrepreneurial attitude. At the same time, they show that male studentshave more entrepreneurial motivation than female students. However, the contribution of other  background factors (parents’ occupations and self employment experience) for developingentrepreneurial intention among the business students is relatively low. This study providesinsight into entrepreneurship education and training, as to which personality characteristics can bedeveloped to raise potential entrepreneurs in Sri Lankan context.Key wards: Entrepreneurial intention, Personality traits, Demographic factors, Attitude towardentrepreneurship, Sri Lanka
*An earlier version of this paper was presented at the Euro-Asia Management Studies Association(EAMSA) Conference held on 5
th
December 2008
 
at Doshisha Business School,
 
Kyoto, Japan.**Busige Nishantha is a faculty member of the Department of Management & Organization Studies of theUniversity Of Colombo, Sri Lanka and a Doctoral Student at the Graduate School of Economics, RyukokuUniversity, Kyoto. The author likes to thank Professor Yoshio Kawamura and Muhammad Arsyad at theGraduate School of Economics, Ryukoku University for their valuable assistance and comments on this paper.
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1.
Introduction
Entrepreneurship is a one key factor for economic development. Public, private and non-governmental organizations are taking various measures to promote entrepreneurship in differentcountries. World class universities and colleagues have implemented various Postgraduate,Undergraduate and Diploma courses on small business management and entrepreneurship. In adeveloping country like Sri Lanka, the role of entrepreneurship development is more importantthan that in developed countries so far as the creation of self-employment opportunities andreduction of unemployment situations are concerned. After independence gained 1948, eachsuccessive governments of Sri Lanka have followed two different ideologies: one party, which believed in free economic system; and another in a relatively controlled economy. Sri Lankaneconomy is now moving on to more free enterprising system. The earlier economy mainlydepended on agricultural sector and it has now been changed. Industrial sector and servicesectors are emerging. Sri Lanka is a developing country which consists of much unusedresources but has not yet reached the desired growth rate of 8 percent or more though theeconomy had shown some resilience to adverse economic and political conditions throughout the past decade. The life expectancy at birth is 73 years and literacy rate which is 91.4% is the secondhighest in Asia. A system of social benefits that included cheap staple foods and free schoolingand medical services helped to produce a healthy, literate populace. Inequality was keptrelatively low, and despite low income levels, the worst manifestations of poverty (prematuredeath, malnutrition, illiteracy) were avoided to a remarkable degree (Parkins
et al 
, 2001). Thetrouble is economic growth is too slow to provide either adequate financing for the welfaresystem or employment for the growing labor force, especially for the educated youths seekingwhite-collar jobs. Rama (2003) noted that the bulk of the unemployed youth in Sri Lanka isrelatively educated individuals who live with their parents and benefit from family support to perform an extended job search. The goal of this search is not merely to find a job but arelatively good job, either in the public or in private sector where the activities characterized bysubstantial protection, stemming from product and labor market regulations. According to thenational youth survey data (2000), 27 percent of the unemployed youth expect self employments.In parallel with developing interest in entrepreneurship throughout the world, Sri Lankahas also witnessed an increasing interest in entrepreneurship fields both among her academicscholars, and among government policy makers and business leaders. In course of time, someuniversities and vocational training institutes in Sri Lanka had incorporated Entrepreneurship andSmall Business Management in to their course curriculum so as to provide necessary exposure for 
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students to entrepreneurial and industrial climate of the country. While the literature onentrepreneurship in Sri Lanka is growing, no study has so far tried to explain relative contributionof personality factors and socio-demographic background factors for entrepreneurial career.
2.Literature Review
According to the prevailing literature, entrepreneurial behavior of any society isdetermined by different factors. These are social, personality and environmental factors (Guroland Atsan, 2006). Social factors or demographic factors examine the personal background, family background, gender and the early experiences of entrepreneurs and potential entrepreneurs, whilethe environmental factor model looks at the contextual factors such as the value of wealth, taxreduction and indirect benefits, timing opportunities in career process and the impact of marketcondition. Personality factors, widely known as trait model, focus on personality characteristicsof entrepreneurs. Trait model rests on the assumption that entrepreneurs possess certain inherentcharacteristics, values and attitudes that provide an impetus for them and distinguish them fromothers.
2.1.Personality Traits and Socio-demographic Background
A number of personality traits, such as risk-taking propensity (Hisrich and Peters 1995),the need for achievement (Johnson 1990), and locus of control (Bonnett and Fuhrmann 1991),have been discussed as factors affecting people's aspirations to start their own firms.(1)
 Need for achievement 
McClelland’s need for achievement theory (1961) highly emphasized that need for achievement is one of the strongest psychological factors influencing entrepreneurial behavior. Itis believed that individuals with a high need for achievement has a strong desire to be successfuland are consequently more likely to behave entrepreneurially. Individuals who have a strongneed to achievement want to solve problems themselves, set targets and strive for these targetsthrough their own efforts, demonstrate a higher performance in challenging tasks and areinnovative in the sense in looking for new and better ways to improve their performance(Littunen, 2000; Utsch and Rauch, 2000).
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