Professional Documents
Culture Documents
3, 2011
Adnan Ozyilmaz
Department of Business Administration,
Faculty of Economics and Administrative Sciences,
Mustafa Kemal University,
Tayfur Sokmen Campus, 31100 Antakya-Hatay, Turkey
Fax: 0 (326)-245-5854
E-mail: ozyila@yahoo.com
1 Introduction
It has been well established that people’s entrepreneurial intentions constitute the
foundations for the creation of new organisations and therefore, precede the activities
involved in developing these organisations (Krueger, 1993; Shook et al., 2003). Indeed,
Forbes (1999) developed a framework to depict the cognitive states in the development of
new ventures, mainly in the pre-venture and post-venture stages, with intention as the last
step of the pre-venture stage. To predict entrepreneurial intention in the pre-venture stage,
three approaches have been mostly used. These approaches are cognitive approach
(Ajzen, 1991; Krueger et al., 2000; Shapero and Sokol, 1982), personality-traits approach
(Mueller and Thomas, 2001) and demographic-characteristics approach (Davidsson,
1995; Van Auken et al., 2006).
Two theoretical models in cognitive approach have been postulated to predict
entrepreneurial intention in the pre-venture stage, Ajzen’s (1991) theory of planned
behaviour (TPB) and Shapero and Sokol’s (1982) model of entrepreneurial event (SEE).
Both the TPB and SEE models discard the direct effects of exogenous influences,
such as demographic characteristics of individuals, to predict intentions or behaviour.
Demographic characteristics are discussed to have only an indirect effect on
entrepreneurial intentions through their effects on cognitive factors (Kolvereid, 1997).
Krueger et al. (2000) claimed that Shapero’s 1982 model of entrepreneurial event (SEE)
is the best predictor of entrepreneurial intentions. However, Krueger’s et al. (2000) study
failed to explain most of the variance in estimating entrepreneurial intentions, and no
single study has simultaneously compared the predictive ability of both cognitive and
demographic-characteristics approaches on the same sample in the pre-venture stage of
entrepreneurship to determine which approach predicts entrepreneurial intentions better.
Also, only few studies have used demographic-characteristics approach to predict
entrepreneurial intentions in the pre-venture stage of entrepreneurship, and many of these
only predicted entrepreneurial intention in its post-venture stage. For example, Mueller
(2004) found that fewer studies have compared females and males in the pre-venture
stage than those comparing them in the post-venture stage. The practice of predicting
entrepreneurial intention by investigating existing entrepreneurs may be misleading due
to important time lags problem (Reynolds, 1994). Therefore, this present study fills in the
gap in the pre-venture stage of entrepreneurship in terms of investigating the effect of
demographic characteristics on entrepreneurial intentions.
This study’s research question was, “Do individuals’ demographic characteristics
have an impact on their entrepreneurial intentions in the pre-venture stage of
entrepreneurship?” To address this research question, this paper’s second section presents
a brief review of entrepreneurship and entrepreneurial intentions. Section 3 provides
hypotheses to test for the effects of gender, age, birth order and role model on
entrepreneurial intentions. Section 4 describes the sample, measures and survey
instrument. Section 5 presents the statistical results. Its final section presents conclusions,
implications and limitations and makes suggestions for future research.
408 A. Ozyilmaz
3 Hypotheses
3.1 Gender
Research in entrepreneurship has indicated gender differences (Brush, 2006; DeTienne
and Chandler, 2007; Johnson and Storey, 1994) and similarities (Ahl, 2004; Gatewood
et al., 2003) in the post-venture stage of entrepreneurship. In a cross-national assessment
The effects of demographic characteristics on entrepreneurial intention 409
of entrepreneurship, which included Turkey, Bosma and Harding (2006) found that males
are more likely than females to initiate a venture without respect to their country’s level
of development. Özalp Türetgen et al. (2008) argued that gender inequalities exist in
many different forms in many cultures.
Among the few studies in the pre-venture stage of entrepreneurship, Kolvereid (1997)
found a significant positive correlation between entrepreneurial intentions and gender in a
study of 143 first-year undergraduate business-administration students in Sweden, with
males having more such intentions than females. Crant (1996) demonstrated a significant
positive relationship between gender and entrepreneurial intentions among undergraduate
and MBA students in a USA university, with males more likely to have entrepreneurial
intentions than females. Wilson et al. (2007) revealed that adolescent boys and men with
MBAs are more likely to have entrepreneurial intentions than did their female
counterparts. Davidsson (1995) demonstrated gender to be a direct predictor of
entrepreneurial intention. Tkachev and Kolvereid (1999), however, found gender to be an
insignificant predictor of entrepreneurial intentions among Russian medicine, odontology
and engineering students. Based on this discussion, this study therefore, postulates the
following hypothesis:
H1 An association exists between gender and the entrepreneurial intentions of
undergraduate business-administration and engineering student, in that this study
expect males to be more likely to express entrepreneurial intention than females.
3.2 Age
p.393) found that women entrepreneurs in the USA are “relatively likely to have been
first-born or only children”, and Goldberg and Wooldridge (1993, p.55) found that
“first-born children, particularly males, are more likely to join and inherit a family
business”. Furthermore, first-born children are more likely to be considered to have a
strong potential to become entrepreneurs (Stevenson, 1990). Finally, much early research
also found that both male and female entrepreneurs tended to be their parents’ first
children (Neider, 1987; Sexton and Kent, 1981). Roberts (1991), who found no first-born
effect for high-technology entrepreneurs, appears to be an exception. Based on this
discussion, this study therefore proposes the following hypothesis:
H3 An association exists between birth order and the entrepreneurial intentions of
undergraduate business-administration and engineering students, in that this study
expects first-born students to be more likely to express entrepreneurial intentions
than later-borns.
less preference for employment in large businesses than others. Van Auken et al. (2006)
also reported that direct model-respondent interactions have a significant impact on
students majoring in business administration and others wanting to start new businesses,
which occurs mainly through their having taken part in businesses and having
had positive discussions with their role models. Davidsson (1995) revealed that in
Sweden the role-model effect have direct and positive effects on entrepreneurial
intention. Kolvereid (1997) found a significant positive correlation between prior
self-employment experience and self-employment intentions among Norwegian first-year
undergraduate business-administration students, with those having prior entrepreneurial
experience being more inclined towards entrepreneurship than those without such
experience. Crant (1996) also found a significant positive relationship between parental
role models and entrepreneurial intentions, with those who have entrepreneurial mothers
or fathers being more entrepreneurially inclined than those who do not. Tkachev and
Kolvereid (1999), however, found only self-employment experience, and not having an
entrepreneurship family background, to be positively correlated with the self-employment
intentions of Russian students majoring in medicine, odontology and engineering. Based
on the preceding discussion and Turkish culture’s strong in-family collectivism, this
study proposes the following hypothesis:
H4 An association exists between having an entrepreneur-parent role model and the
entrepreneurial intentions of undergraduate business-administration and engineering
students, in that this study expects those students having an entrepreneur-parent role
model to be more likely to express entrepreneurial intentions than those students
having no entrepreneur-parent role model.
4 Method
4.1 Sample
To test the relationships between gender, age, birth order and role model and
entrepreneurial intentions, this study prepared a questionnaire for a sample of students
in the business-administration departments of 10 different Turkish state universities
and in the engineering school at one of these universities. Assistant professors at the
state universities were contacted to ask for their help in administering the questionnaire.
The sample included all those students attending the participating assistant
professors’ courses on the day they administered the questionnaires, which means it is
non-random. The survey’s administrators provided their samples with a brief
introduction about this study’s objectives. The overall sample size was 698 students, of
which 538 were fourth-year business-administration students from all ten universities
and 160 were fourth-year engineering students from University A. All the university
names have been disguised to protect confidentiality, so this article will refer to its
participating universities by letters. Due to intentional processes’ sensitivity to initial
conditions (Kim and Hunter, 1993), it is a common practice to use student samples
for predicting entrepreneurial intention (Krueger et al., 2000). Therefore, the university
students’ youth is favourable for this study, as it is interested in predicting
their entrepreneurial intentions.
The effects of demographic characteristics on entrepreneurial intention 413
4.2 Measures
This study’s objective was to investigate the relationship between the demographic
characteristics of university students and their entrepreneurial intentions. Its independent
variables are gender (male or female), age (below age 24 or age 24 and older), birth order
(first-born or later-born) and having a role model (self-employed or entrepreneur parents
or waged-or-salaried, non-entrepreneur parents). This study categorised students as
having an entrepreneurial-parent role model when at least one of their parents owned a
business. It coded students as ‘1’ for being male, below age 24, first-born, or having an
entrepreneur-parent role model and ‘0’ for being female, age 24 or older, later-born, or
not having an entrepreneur-parent role model, making all the independent variables
binary dichotomous variables. The procedure of classifying demographic variables as
binary dichotomous variables is a common practice within the entrepreneurship literature
(Carrol and Mosakowski, 1987).
This study measured entrepreneurial intentions with two questionnaire items, which
were:
a “the probability of setting up your own business in the three years after graduation”
b “the probability of your expanding your father’s or mother’s business in the three
years after graduation”.
Similar items have previously been used to measure entrepreneurial intentions (Crant,
1996; Davidsson, 1995; Krueger et al., 2000) and to predict employment-status intentions
(Kolvereid, 1997). This study therefore considered the intention to initiate a new
business, to expand a family business, or both to be positive intentions towards
entrepreneurial behaviour. The questionnaire directed students to respond to these
statements on a four-point scale ranging from very low to very high. This study rated
those students marking their responses to these two questions as high or very high as
having entrepreneurial intentions and those responding otherwise as having no
entrepreneurial intentions, and coded those students having entrepreneurial intention as
‘1’ and those having no entrepreneurial intention as ‘0’, clearly making its dependent
variable of entrepreneurial intention a binary dichotomous variable.
5 Results
No intention 315 (58.6) 46 (54.1) 28 (50.9) 39 (65.0) 23 (65.7) 34 (57.6) 28 (52.8) 25 (55.6) 37 (60.7) 32 (68.1) 23 (60.5) - -
ten different state universities and their entrepreneurial intentions, respectively)a
Notes: aN = 538; the odds ratios: male = 1.35, female = 0.38; age (below 24) = 1.11, age (24-years and above) = 0.88; first-born = 0.82, later-born = 0.64; have an
entrepreneur-parent role model = 1.32, no entrepreneur-parent role model = 0.35
Frequencies of samples and variables (fourth-year business administration students of
415
416 A. Ozyilmaz
The logistic-regression analysis showed the sign of the relationship between gender and
role model and entrepreneurial intention to be positive. The positive sign for the gender
independent variable in the logistic-regression analysis indicated that the sample’s male
students were more likely to have entrepreneurial intentions than their female
counterparts. The positive sign for the role-model variable in the same analysis indicated
that the students with entrepreneur parents were more likely to have entrepreneurial
intentions than those from non-entrepreneurial parents. These results can also be
confirmed by investigating the frequency distribution presented in Table 1. In addition,
no multicollinearity problem exists between the independent variables in the data set
collected from study one’s sample.2 Therefore, based on the results of the χ2 tests and the
logistic-regression analysis, being a male and having an entrepreneurial-parent
role model are clearly two predictors of entrepreneurial intention of fourth-year
business-administration students. These findings confirm hypotheses one and four and
reject hypotheses two and three.
Table 2 Results of univariate tests – χ2 tests of independence (fourth-year business
administration students of ten different state universities and their entrepreneurial
intentions, respectively)a
Variable Df χ2 value p
b
Gender 1 2.049 0.152
Agec 1 0.622 0.430
Birth orderd 1 0.864 0.353
e
Role model 1 19.367 0.000*
a b c
Notes: N = 160; Male = 1, Female = 0; below 24 = 1, 24 years old and above = 0;
d
first-born = 1, later-born = 0; ehave a role model (have an entrepreneur father or
mother) = 1; do not have a role model = 0; fhave an entrepreneurial intention = 1;
do not have an entrepreneurial intention = 0. *Significant at p < .001.
418 A. Ozyilmaz
A binary logistic-regression analysis was also performed between the same dependent
and all four independent variables for the study two to investigate further the results of
the χ2 tests on those students having and not having entrepreneurial intentions in a
multivariate setting. Wald’s statistical test, model χ2 and Hosmer-Lemeshow test were
also performed. Table 6 shows the results of these tests. The binary logistic-regression
model has a model χ2 of 21.809 (df = 1, p < .001), indicating a good-fitting model.
The model is therefore suitable for the purpose, considering its highly significant
goodness-of-fit χ2 and high predictive ability (correct classification = 68.8%).
Table 6 Binary logistic regression coefficients of the demographic characteristics influencing
entrepreneurial intentions (fourth-year engineering students of University A)a
6 Discussion
One of this study’s major contributions to our understanding of the pre-venture stage of
entrepreneurship is its finding that the influence of gender on entrepreneurial intention
depends on the type of professional education an individual pursues. For those pursuing a
professional business-administration education the gender effect is obvious, with male
students being more likely to have entrepreneurial intentions than their female
The effects of demographic characteristics on entrepreneurial intention 419
counterparts, but for those pursuing a professional engineering education the gender
effect is insignificant, meaning that gender does not predict the likelihood of
entrepreneurial intentions. Even though the demographic-characteristics entrepreneurship
literature generally considers gender to be an important predictor of entrepreneurial
intention and behaviour, this study’s findings indicate that the presumed relationship may
depend on the type of professional education individuals seek. This conclusion has not
been reported previously in the literature about the pre-venture stage of entrepreneurship.
None of this study’s samples produced any evidence supporting the significance of
age or birth order on entrepreneurial intentions in the pre-venture stage of
entrepreneurship. The data showed no significant difference in entrepreneurial intentions
between students aged less than 24 and those aged 24 and over. Therefore, this finding
confirms those of such studies as Bosma and Harding (2006) and Lévesque and Minniti
(2006) that entrepreneurship increases after age 25. This is important, as real doubt has
existed about the importance of the threshold value of age 25.
Based on McClelland’s (1961) achievement thesis, first-order argument has received
widespread attention in entrepreneurship literature as a determinant of entrepreneurial
behaviour on theoretical and empirical grounds, mainly in Western cultures. However,
this study found no significant difference between younger siblings and first-born
siblings in its sample, discrediting the first-order argument of entrepreneurship in regard
to students’ entrepreneurial intentions in the pre-venture stage in Turkey.
This finding could be attributed to Turkish cultural value of high in-group family
collectivism. This means that neither Sulloway’s (1999) argument of sibling rivalry nor
McClelland’s (1961) achievement thesis as bases to explain birth order differences with
regard to entrepreneurship are applicable in Turkey due to Turkish culture’s in-group
family collectivism. This means that Turkish families strongly discourage sibling rivalry
and overwhelmingly pay no special attention to first-born children. To the contrary,
in-group family collectivism (Kabasakal and Bodur, 2007), requires that younger brothers
and sisters show respect to their elder siblings as long as they live, and that older siblings
be supportive of their younger siblings in every aspect of daily life as long as they live.
This study found that having an entrepreneur parent as a role model is the
most prominent predictor of entrepreneurial intention for both undergraduate
business-administration and engineering students in Turkey. This indicates that in the
pre-venture stage of entrepreneurship, whether a Turkish student’s parents are
entrepreneurs or not affects that student’s entrepreneurial intentions. Accordingly, those
who have an entrepreneur parent as a role model are more likely to have entrepreneurial
intentions than those who do not. This empirical result supports Bandura’s (1969) social-
learning theory used in this study as a base to explain the relationship between parental
role modelling and entrepreneurial intentions. On empirical grounds, this finding
conflicts with those of Tkachev and Kolvereid (1999) and Kolvereid (1997) and supports
those of Davidsson (1995) and Crant (1996). Therefore, the role-model effect on
entrepreneurial intentions varies with national cultures in the pre-venture stage, and that it
is therefore highly advisable to test theories of entrepreneurship within different contexts,
countries and cultures.
Some confounding variables might have influenced the results of this study. First is
that gender effect is insignificant for engineering students. That is likely due to the small
N for females. Therefore, future research need is warranted. Second, this study noted no
effect on age. But the outer range for the sample is not known. It is possible that because
420 A. Ozyilmaz
they are all fourth-year students that the bulk of the younger group are over 20 and even
22, and that the bulk of those in older group are 25 or 26. Thus, range is very narrow.
6.1 Implications
Previous research has shown the importance and relevance of demographic
characteristics in predicting entrepreneurial behaviour in its post-venture stage, but few
studies have addressed entrepreneurial intentions in its pre-venture stage. This study is a
step toward filling that void by investigating how individuals’ demographic
characteristics influence entrepreneurial intentions. It also supports and challenges some
theoretical models on empirical grounds, as some of its findings are similar to those of
previous studies conducted in other countries while some of them contradict others. It is
therefore necessary to discuss the implications of these findings to further our
understanding of entrepreneurial intention, both in Turkey and internationally.
This study’s findings and those of others conducted in many different countries
indicate that the ability to predict entrepreneurial intention by gender seems to be
subject-specific, depending on the subjects the studies consider and the countries and
cultures studied. It therefore seems reasonable to suggest that the effect of gender needs
to be predicted for each subject, country and culture in order to understand local
situations as well as to increase the international community’s understanding of the
gender issue.
This study found no age or birth order influence on entrepreneurial intentions.
However, it must be noted that those studies finding the age variable to be significant
considered it as a life-course variable, whereas this study considered only a narrow age
range. Still, its findings do not challenge age 25 as the threshold year when individuals
seriously consider entrepreneurship, but support the observation that the threshold age is
not a younger one, at least in the Turkish-student context.
Although many studies have found birth order, especially in regard to being
first-born, significant in people’s decisions to choose entrepreneurship as a career, this
study found no difference in the entrepreneurial intentions of first-borns and later-borns.
This implies that, contrary to McClelland’s (1961) findings, the parents of university
students in Turkey tend to pay equal attention to all their children without regard to birth
order. It implies further that it is likely to be incorrect to stereotype first-born Turkish
students as being power-hungry conservatives with conformist traits and later-borns as
having rebellious, rule-breaking attributes. This may be so in other cultural contexts as
well, considering that democratic movements have dominated social, family and
organisational life during the past two decades in Turkey and in many other countries,
both developing and developed. Furthermore, it remains to be found whether the
differences attributed to exist between first-borns and later-borns are time-dependent,
becoming more significant later in life, or whether they may be observable only in the
post-venture stage of entrepreneurship but not in its pre-venture stage.
This study further found that it is likely to be incorrect to treat all undergraduate
students as a single population despite their academic disciplines, and then to try to
predict their entrepreneurial intentions based on this incorrect assumption, as it found that
fourth-year business-administration and engineering students differ significantly in this
regard and should not be treated as a homogeneous group, while business-administration
students at different universities may indeed be considered a homogeneous group in this
regard. This might be one reason why studies investigating the same relationship in
The effects of demographic characteristics on entrepreneurial intention 421
different contexts, cultures and countries reach different results, such as noted earlier in
regard to gender. Although birth order is not a predictor of entrepreneurial intentions
among Turkish students, it may be a significant predictor of entrepreneurial intention in
other contexts.
Although this study has adopted the micro-level analysis of an individual
undergraduate student, considering students as research subjects provides macro-level
implications and benefits. It is timely and important to consider university students as
research subjects in regard to entrepreneurship in Turkey because the Turkish
government has in recent years initiated a programme through the Turkish Small and
Medium Industry Development Organisation (KOSGEB) to boost the number of
university-educated entrepreneurs by providing educational and financial assistance for
those university students who have an original business idea and plan. Policy audiences,
businesses and engineering and business schools are therefore likely to be especially
interested in knowing how likely business and engineering students are to take advantage
of this shift in government policy. Using students as research subjects is also likely to
reveal the orientation of the next generation of business leaders in terms of their
entrepreneurial intentions, which can in turn help direct the government’s funds
accordingly. Therefore, KOSGEB should look to support the children of entrepreneur
parents in order to boost the number of university-educated entrepreneurs required to
improve Turkey’s position in highly competitive global markets.
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Notes
1 Available upon request.
2 The results of the multicollinearity tests are available upon request.
3 The results of the multicollinearity tests are available upon request.