Determinants of Entrepreneurial Intention of Students the Case of Addis Ababa University

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2023-06

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Addis Ababa University

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This paper aim to investigate determinants of entrepreneurial intention of students of AAU. This study employed causal research design. 350 students were taken as a sample from 2826 regular graduating class students by using both stratified and simple random sampling technique. The data were collected through questionnaires, which was developed based on the objectives of the study. The dependent variable was entrepreneurial intention and the independent variables were family status, initial capital, government regulation, social factor, and gender factor. In order to check the correlation Pearson correlation coefficient was used. Furthermore, to examine the causation between entrepreneurial intention and independent variables, multiple linear regressions was used. Statistical Package for the Social Sciences (SPSS) version 25 was used to analyze the collected data. The result revealed that family status, initial capital, government regulation and social factor have significant and a positive effect on entrepreneurial intention of students while the effect of gender factor found to be not significant on entrepreneurial intention of students. Based on the findings of the study, the researcher would like to recommend to students families work at a family level since family status is a determinant factor for entrepreneurial intention. Initial capital also identified as a determinant factor for entrepreneurial intention thus loan provider institutions was recommended to make a change in their loan policy and even encourage the entrepreneur and it will be better if government create a favorable and flexible rules and regulation since it is one determinant factor for entrepreneurial intention. Moreover, society involvement is one of determinant component, it would be better if the community-based institution to improve social values, new emerging aspirations on the entrepreneurial intention

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