International Journal of Business and Social Science Vol. 3 No.

19; October 2012

A Study among University Students in Business Start-Ups in Malaysia: Motivations

and Obstacles to Become Entrepreneurs

Yeng Keat, Ooi

Shuhymee Ahmad
School of Business Management
College of Business
Universiti Utara Malaysia
Malaysia

Abstract
While most of the universities in Malaysia offer entrepreneurship courses today, little is known about how and
why an individual starting up and sustaining a new venture. This study examines and determines the perceptions
on entrepreneurship, motivators as well as obstacles and challenges faced by among 153 Universiti Utara
Malaysia’s undergraduate students to start up their new ventures by building on Moy, et al.’s (2001) study. In
doing so, this study contributes to the understanding of whether the students have high perception, which in turn,
motivates them to become entrepreneurs. Besides that, the imminent possible obstacles and challenges faced by
the students and the government support in promoting entrepreneurship are also examined in this study. Findings
reveal that motivators such as extrinsic rewards and change management inspire them to start up a new venture
whilst government support/assistance plays a significant role in promoting entrepreneurship. By contrast,
obstacle and challenge such as endogenous factor (financial and operational problems) seemingly impedes their
effort to launch a new venture. It is also revealed that gender and birth order affect one’s entrepreneurial
intention significantly. However, surprisingly, no difference was found in working experiences with one’s
entrepreneurial intention. Recommendations and future research are made based on the findings of the study.

Keywords: business start-ups, entrepreneurs, motivator, obstacle and challenges, university students
Introduction
As Malaysia is transforming from a middle-income economy to a high-income economy in 2020,
entrepreneurship has been identified as the key ‘driver’ to help the country’s aspiration in achieving its Hercules
goal. As a result, much attention and concerns about entrepreneurship have been intensified by, amongst others,
the government’s allocation for fundings as well as incentives for small and medium enterprises in order to
promote entrepreneurship.
Hence, entrepreneurship has become the main agenda in the country with the introduction of entrepreneurial
programmes and mechanisms that cater for the development of entrepreneurship activity. Such programmes and
mechanisms hope would stimulate the country’s economic growth which in turn would create more job
employment opportunities. This effort is crucial especially to check the unemployment problems among graduates
in the country that purportedly around 80000 nationwide. This is aggravated by the study by Md Yusof, et . al.
(2009) reported that only 1.1% (n=41925) of first degree graduates were self-employed.
Although much effort have been initiated and done by the Malaysian Government to promote more people, in
particlar students at institutions of higher learning, to become entrepreneurs, however, the knowledge about
students’ motivation as well as obstacles faced when starting up a venture, especially at the level of postgraduate,
is still sketchy. Hence, in order to foster the growth of entrepreneurs in the country as well as to assist them to
face any imminent obctacles confidently, it is imperative to understand the whole process of establishing a
venture, namely why and how a venture was established and operated (Moy et. al., 2001).

181
© Centre for Promoting Ideas, USA www.ijbssnet.com

The main objective of this study is to examine the undergraduate students’ perceptions on entrepreneurship, on
the motivators, obstacles and challenges as well as well the government support behind starting up and sustaining
a new venture. The study also attempts to examine if there are any differences of gender, birth order and working
experience with one’s entrepreneurial intention.
Motivational factors
Much research has been focused on the characteristics and motivational aspects of the entrepreneurs (see Kao
(1995), Koh (1996), Kuratko and Hogetts (2007), Liang and Dunn (2007), Shane, et. al, (2003), Zhuplev, et. al.
(1998)). This is mainly due to most businesses are carried out individually and thus entrepreneurs believed in
what they are doing and injects personal core values into how they build a business. Proper motivation is
important for new business owners or future entrepreneurs to go into business. Understanding what's driving an
individual to start a business is an important component of assessing oneself and his/her business-readiness.
Understanding a person’s motivations as well as ‘drivers’ to start up business will help an individual makes a
better decision about starting a business and can also help him/her knows if this is the right time to start a
business.
Motivation, in this instance, can be categorised into intrinsic and extrinsic motivation. To be motivated means to
be moved to do something. Therefore, a person that has high desire and enthusiastic ‘towards an end is considered
motivated’ whilst a person that has ‘no impetus or inspiration to act is thus characterisrised as unmotivated’ (Ryan
and Deci, 2000, pg 54). Intrinsic motivation reflects the desire for someone to do something simply because
he/she enjoys doing it while extrinsic motivation reflects the desire to do something due to external rewards such
as money and awards. Hence an individual that is intrinsically motivated has much enjoyment and passion to start
a business compared to individual that is extrinsically motivated (Simola, 2011).
Moy et. al. (2001) in their studies on Thailand and Hong Kong university students’ motivations to start up new
ventures indicated that in general motivators such as extrinsic rewards, independence/autonomy, intrinsic rewards,
family security and change management have made an individual to decide to choose entrepreneurship as their
future career. The findings are corresponded with that of a study by Kuratko and Hodgetts (2007) on
entrepreneurs’ goals in sustaining their business development. A study of Zhuplev, et. al. (1998) targeted on
Russia and American business owners to start up a business illustrated essentially identical motivators of the
business owners to lauch new ventures, i.e. self-accomplishment, material wealth, and security.
Challenges or obstacles and of sustaining a new venture
Even though studies have been concentrated much on motivational factors in starting up and sustaining a
business, the darkside of operating and maintaining, in particular a novel business, is also critical to ensure its
survival. Sustantial research has been attempted to identify and explain challenges or obstacles encountered by
entrepreneurs while starting up their new ventures. Growing evidence suggests that it is a normal process for any
novel entrepreneurs to face the challenges or obstacles during the early stage of establishing new ventures.
Therefore, entrepreneurs should be ready in nature to take those challenges or obstacles with open mind. Young
and Welsch (1993) identified that entrepreneurs face several obstacles, such as lack of financial assistance, lack of
information on various aspects of business, excessive taxation, and high rate of inflation. On the ther hand, a
study by Kozan, et. al. (2006) concurred that ‘financing difficulties hindered technological improvement and
resource aggregation’ for many small business owners in Turkey.
A study by Moy, et. al. (2001) advocated that exogenous and endogenous factors are the main
challenges/obstacles faced when starting and sustaining new ventures among students. Among them are: high
labour cost, high interest rate, strict government regulation (exogenous factors) and lack of managerial
experience, lack of technical knowldege, excessive risk (endogenous factors). These obstacles are found to be
similar to that of the study by Zhuplev, et. al. (1998) on Russian and American small business owners’
motivations and obstacles which revealed high taxes, hatred for government regulations and start-up capital were
the main obstacles for both countries business owners.
In the same note, Fleming (1996) in her longitudinal study on Ireland university students’ attitudes towards
business ownership process argued that several obstacles that militate against entrepreneurship, such as lack of
experience, or lack of finance, which hinder the path towards university students preferred future career choice.
182
International Journal of Business and Social Science Vol. 3 No. 19; October 2012

Government’s support
SMEs play a considerable role in a country’s economic growth through the creation of new businesses as well as
expanding the current businesses to new markets. Statictics showed that this type of business has contributed
significantly (64%) to the United States’ gross domestics product (Astrachan and Shanker, 2003). Likewise, in
Malaysia, SMEs have been the backbone for the country’s economic growth that contributed 37% to the GDP in
2010 (Kumar, 2009). It is also expected that SMEs will contribute to the country’s GDP to 40% by 2020 (New
Sabah Times, 2011). In this regard, SMEs are widely seen as a critical tool to solve current economic issues such
as unemployment and industry stagnation (Fakhrul and Wan Norhayate, 2011).
Hence, the government supports for the development of SMEs is increasing and there are several types of
activities that have been introduced and supported by the Government, including the establishment of agencies to
encourage entrepreneurship. MARA (Council of Trust for the Indigenous or Bumiputera of Malaysia) was
established in 1966 with the main objectives, among others, to assist, guide and train the Bumputera in rural aeras
to actively participate in bsuiness and industrial sectors (Buang, 2002). For example, some RM600 million loans
were set aside to an estimated 108000 SMEs in helping and sustaining their bsuienesses (Omar, 2006).
Gnyawali and Fogel (1994) argued that government can boost entrepreneurship through the assistance
programmes such as offer tax and other incentives, keep rules and regulations at a minimum as well as to provide
a conducive entrepreneurial environment. This is supported by Fogel (2001) in his study on entrepreneurial
development in Hungary, concluded that government should offer tax incentives and other sprecial programmes
for small business in order to improve entrepreneurial process. Similarly, a study on Thailand and Hong Kong
university students’ perception to be an entrepreneurs by Moy, et. al. (2001) indicated that there are four
categories for government assistance: financial support, friendly bsuienss environment, technical support and
expand new market and education and tarining programme.
Therefore it is essential to create the right entrepreneurial environment that really promotes the entrepreneurial
activity. A comprehensive government approach and support such as loans, business facilities, rules and
regulations and etc would definitely a key condition for success in nurturing and promoting entrepreneurship
(Klapper, 2004).
Demographic variables
There have been strands of studies suggesting that gender differences do occur in inclination towards
entrepreneurship or entrepreneurial behaviours. In particular, much research has shown that males are more likely
to venture into business compared to females (e.g. Dunn, 2004, Sandhu, et al. (2011) and Veciana, et al. (2005)).
Crant’s study of 181 undergraduate and postgraduate students in the US (1996) also indicates that male students
exhibit significantly higher entrepreneurial intention compared to female students. Perhaps this is mainly due to
the fact that many female students do not choose entrepreneurship as a major study as remarked by Menzies and
Tatroff (2006).
Apart from gender, it is found that birth order also influnces one’s entrepreneurial behaviour. Robinson and Hunt
(1992) found that being first-born in the family is significantly related to entrepreneurial inclination. Their studies
were corroborated by Koh’s (1996) study on business students in Hong Kong. Othman et al. (2005), on the other
hand, conclude that there is no significant difference between Chinese and Malay entrepreneurs and birth order in
their comparison study of 80 Chinese and Malay entrepreneurs in Malaysia.
Another interesting variable that used to associate with one’s entrepreneurial behaviour is entrepreneurial past
experiences. Much research (e.g., Lena and Wong 2003; Mukhtar et al. 1999) has recognised that individuals’
previous working experience positively or negatively influences entrepreneurial performance. Successful
entrepreneurs may have acquired the necessary knowledge and skills to succeed in the ventures that they are
already familiar with, and so would be able to capitalise on their experience in new ventures. Mukhtar, et al.
(1999) conclude that individuals with previous working experience tend to have higher inclination towards small-
and medium-sized employment. However, in their study of entrepreneurial intention among university students,
Kristiansen and Indarti (2004) found no statistically significant differences among Indonesian and Norwegian
students with entrepreneurial intention in relation to whether or not they had work experience.

183
© Centre for Promoting Ideas, USA www.ijbssnet.com

Methodology
The methodologies used in this study are given as folows:
Sample and procedure
A self-administered questionnaire with a cover letter was employed to collect data for the study. Questionnaires
were distrubuted to the respondents during class meetings to students who were taking Entrepreneurship and
Seminar in Entrepreneurship courses at UUM. Studnets were informed to return the quetsionnaires by placing
them in a box at the reception desk located at the Dean Office of respective schools. This method was similiar to
that of the study conducted by Lee, et al. (2006) that yielded a higher response rate among students as a sample. A
total of 200 set of questionnaires were distributed and 153 completed and returned the questionnaires, yielding a
76.5% response rate.
A survey was conducted at classes at Universiti Utara Malaysia. Classes involved were from Entrepreneurship
and Seminar in Entrepreneurship courses. The questionnaires were distributed to these groups of students using a
random sample of classes during the normal lecture session (Semester I/II 2011/2012 session). The students
selected were those in final year students as they are deemed to have a better understanding regarding future
careers (Super, 1990). In other words, those students would be in a better position of firming their vocational
goals based on their interest (Ooi, 2008).
Instrumentation
A self-administrated questionnaire was adapted from the previous studies by Moy, et. al. (2001). The
questionnaire, based on the 5-point Likert scale, consisted of five sections relating to the following issues:
motivators for starting up a new business, obstacles they faced when starting up a new business, operating and
sustaining a new business as well as government supports to facilitate the development of entrepreneurship. Apart
from this, respondents’ personal details such as family business history, family order and previous working
experience and etc that related to respondent’s interest to become an entrepreneur were also included for the
study.
Data analysis
Data collected from the survey was analysed by the statistical software SPSS version 19.0. Descriptive statistics
such as frequency distribution, mean and stardard deviation was used in the analysis.
Results
Table 1 presents the profile of respondents. The majority of respondents were females (82.4%) compared to males
(only 17.6%). Similar to the scenario of population of Malaysian university students, the campus is mainly
monopolised by female students. Most of the respondents’ age ranged between 20-25 years (98.7%) and they are
the eldest (30.1%) in the family. On top of that, the majority of the respondents were hailed from rural area
(54.2%), were studying in business management (39.2%) and have some working experience in private sector
(69.16%) though it is less than a year (94.17%) (Based on 120 respodents who had previous working experience).
Asked to indicate father’s or mother’s or guardian’s occupation, the respondents reported that their
fathers/guardians were employed staff and mothers/guardians were unemployed (full time housewife), with
39.2% and 51% respectively. A total of 52.3% of the resposdents believed that their parents/guardians did not
influence their future career.

184
International Journal of Business and Social Science Vol. 3 No. 19; October 2012

Table 1: Respondent Background

Respondent Characteristics Frequency Percentage (%)
Gender
Male 27 17.6
Female 126 82.4

Age
20 – 25 years old 151 98.7
26 – 30 years old 1 0.7
41 years old and above 1 0.7

Birth Order in Family

Only child 3 2.0
Second child 39 25.5
Eldest 46 30.1
Youngest 30 19.6
None of the above 35 22.9

Place of origin
Rural area 83 54.2
Urban area 67 43.8
Other 3 2.0

Programme of study
Business Management 60 39.2
Human Resource 4 2.6
Entrepreneurship 40 26.1
Marketing 4 2.6
Other 45 29.4

Working Experience
Yes 120 78.4
No 33 21.6

Working Period (based on 120 respondents )

Less than 1 year 113 94.17
3 – 5 years 7 5.83

Work Place (based on 120 respondents )

Government sector 14 11.67
Private sector 83 69.16
Relatives business 20 16.67
Other 3 2.5

Father’s / Guardian’s Occupation

Employed 60 39.2
Self-employed 57 37.3
In between jobs 2 1.3
unemployed 6 3.9
retired 25 16.3
other 3 2.0

Mother’s / Guardian’s Occupation

Employed 37 24.2
Self-employed 17 11.1
In between jobs 1 0.7
unemployed 78 51.0
retired 12 7.8
other 8 5.2

Parents’ / Guardians’ Influenced Career

Yes 73
No 80 47.7
52.3

185
© Centre for Promoting Ideas, USA www.ijbssnet.com

Respondents were asked to rate their intention to become entrepreneurs. On a five-point Likert scale with 5 being
strongly agree and 1 being strongly disagree, Table 2 shows that the respondents, in general, possess high
intention to become entrepreneurs (M=3.84; SD 0.57). Among the two reasons are they ‘want to be my own boss
(M=4.21; SD= 0.66), closely followed by ‘if I had opportunity and resources, I would like to start a business
(M=4.14; SD 0.65).
Table 2: Mean of students’ intention to become an entrepreneur after graduation

Items Mean Std. Deviation

- Prefer to be an entrepreneur rather than an 3.80 0.899

employee in a company
- Professional goal is to become an 3.79 0.808
entrepreneur
- Have thought seriously to start own business 3.63 0.856
after completing study
- Determined to create a firm in the future 3.93 0.770
- Want to be my own boss 4.21 0.655
- Prepared to do anything to be an 3.73 0.786
entrepreneur
- If had opportunity and resources, like to start 4.14 0.653
a business
- Will start business in the next 5 years 3.73 0.837
- entrepreneurship as career choice 3.59 0.970
Average 3.84 0.567

On the respondents’ motivational factors to start up a business, factor analysis was performed by grouping the
items into fove categories: intrinsic rewards, extrinsic rewards, independence/autonomy, family security and
change management. Table 3 indicates that the main three motivational factors, among others, are extrinsic
rewards (M=4.32; SD=0.518), Change management (M=4.19; SD 0.449) and intrinsic rewards as well as
independent/autonomy (M=4.14; SD=0.417, M=4.14; SD 0.425 respectively).

186
International Journal of Business and Social Science Vol. 3 No. 19; October 2012

Table 3: Mean of Motivational Factors

Motivational Items Mean Std. Deviation
Intrinsic Rewards
- To enjoy the excitement 4.10 0.657
- To meet the challenge 4.15 0.657
- To prove I can do it 4.23 0.601
- To obtain personal growth 4.22 0.573
- To gain public recognition 4.34 0.475
- To be free from corporate bureaucracy 3.78 0.837
Average 4.14 0.417

Extrinsic Rewards
- To increase my personal income 4.35 0.588
- To increase my income opportunity 4.38 0.550
- To acquire personal wealth 4.22 0.651
Average 4.32 0.518

Independence/Autonomy
- To be my own boss 4.26 0.676
- To obtain self-employment 4.22 0.595
- To acquire personal security 4.30 0.460
- To allow for early retirement 3.69 0.899
- To maintain my personal freedom 4.27 0.610
- To control my own destiny 4.12 0.652
Average 4.14 0.425

Family Security
- To build a business to pass on 4.32 0.466
- To secure future for family members 4.22 0.648
- To take up family business 3.61 0.933
Average 4.05 0.466

Change Management
- To develop new ideas, innovations an 4.11 0.644
initiatives
- To respond to change 4.32 0.468
- To recognize and exploit opportunities 4.13 0.625
Average 4.19 0.449

Similarly, factor analysis was employed by grouping the obstacles/challenges items into three categories:
exogenous factors, exogenous factors (personal) and endogenous factors (financial and operational). Respondents
perceived the endogenous factors (such as lack of working capital/investment, high operating cost and fund) and
exogenous factors (such as strong competitors, high interest rate, high labour cost) would be obstacles/challenges
for them when starting up and sustaining new ventures. The results are presented in Table 4.

187
© Centre for Promoting Ideas, USA www.ijbssnet.com

Table 4: Mean of Obstacles/Challenges

Obstacles/Challenges items Mean Std. Deviation

Exogenous Factors
- High interest rate 3.73 0.669
- High labour cost 3.73 0.690
- Strict government regulations 3.60 0.691
- Tight labour market 3.73 0.752
- High taxes 3.67 0.785
- Lack of government support 3.48 0.804
- Strong competitor 3.92 0.743
Average 3.69 0.523

Exogenous Factors – Personal

- Stress 3.57 0.833
- Fear of failure 3.50 0.889
- Lack of business skill 3.68 0.878
- Lack of planning and long-sighted 3.50 0.828
- Excessive risk 3.64 0.740
Average 3.58 0.651

Endogenous Factors – Financial and

Operational
- High operating expenses 3.78 0.777
- Lack of working capital/ investment 3.80 0.859
- Fund 3.76 0.843
- Lack of good suppliers 3.66 0.860
Average 3.75 0.669

Respondents were also provided additional comments on what they thought the government could have done in
promoting entrepreneurship. On the whole, the respondents considered that the support from government is vital
in promoting entrepreneurship (M=3.90; SD=0.66), in terms of providing training and development programmes,
business guidance and expertise as well as financial assistance would be imperative and much needed by
entrepreneurs. The results are shown in Table 5.
Table 5: Mean of Government Supports/Assistance

Government Support/Assistance items Mean Std. Deviation

- Government support of innovation 3.94 0.860

- Provides training and development via 3.96 0.802
seminar/ workshop
- Provides guidance and expertise 3.96 0.850
- Provides financial assistance 3.96 0.826
- Deregulation in various sectors 3.83 0.742
- Tax incentives 3.75 0.813
Average 3.90 0.660

188
International Journal of Business and Social Science Vol. 3 No. 19; October 2012

T-Test and Anova

Several tests were conducted by employing t-test and ANOVA to examine if there is any difference in the major
variables of the study. Table 6 to 9 show the results of the analyses.
To assess gender and working experiences, an independent-sample t-test was conducted to compare the
entrepreneurial intention, motivational factors, and obstacles and challenges scores for males and females as well
as their working experiences.
Males students were found to be significantly higher entrepreneurial intention, motivational factors (intrinsic
rewards, extrinsic rewards, independence and autonomy, family security and change management) and obstacles
and challenges (endogenous factors, exogenous factors–personal and endogenous factors–financial and
operational) as compared to the female students. See Table 6.
Table 6: Differences in the major variables by gender
Mean
Variable Male Female t-value
Entrepreneurial Intention 4.08 3.79 2.45*
Motivational Factors
- Intrinsic rewards 4.34 4.09 2.87**
- Extrinsic Rewards 4.51 4.28 2.13*
- Independence/Autonomy 4.37 4.10 3.14**
- Family security 4.21 4.01 2.01*
- Change management 4.40 4.14 2.70**
Obstacles/Challenges
- Exogenous factors 3.86 3.65 1.80
- Exogenous factors – personal 3.80 3.53 1.97*
- Endogenous factors –
financial and operational 3.90 3.72 1.26

* p<0.05, ** p<0.01
Table 7: Differences in the major variables by working experiences
Mean
Variable Yes No t-value
Entrepreneurial Intention 3.87 3.75 1.05
Motivational Factors
- Intrinsic rewards 4.14 4.11 0.35
- Extrinsic Rewards 4.34 4.24 0.94
- Independence/Autonomy 4.16 4.08 1.00
- Family security 4.04 4.08 -0.45
- Change management 4.18 4.19 -0.08
Obstacles/Challenges
- Exogenous factors 3.70 3.65 0.52
- Exogenous factors – personal 3.58 3.53 0.35
- Endogenous factors –
financial and operational 3.75 3.76 -0.03

* p<0.05, ** p<0.01
Meanwhile, interestingly, working exepriences were found to have no differences and not significant with one’s
entrepreneurial intention, motivational factors and also obstacles and challenges. See Table 7.

189
© Centre for Promoting Ideas, USA www.ijbssnet.com

Table 8: Differences in the major variables by birth order in family

Mean
Variable Only child Second child Eldest Youngest None
Entrepreneurial Intention 4.78 3.96 3.76 3.75 3.80
Motivational Factors
- Intrinsic rewards 4.44 4.19 4.11 4.01 4.20
- Extrinsic Rewards 4.30 4.30 4.27 4.41 4.28
- Independence/Autonomy 4.83 4.17 4.11 4.14 4.10
- Family security 4.22 4.06 4.04 3.97 4.11
- Change management 4.11 4.23 4.16 4.13 4.23
Obstacles/Challenges
- Exogenous factors 3.76 3.73 3.68 3.70 3.66
- Exogenous factors – 3.87 3.59 3.56 3.63 3.51
personal
- Endogenous factors – 3.92 3.82 3.77 3.80 3.59
financial and operational

The one way ANOVA test indicated that there was significant differences among the students’ birth order in
family with entrepreneurial intention, motivational factors (intrinsic rewards, independence and autonomy and
family security) and obstacles and challenges (exogenous factors and exogenous factors–personal). The results
also indicate that the only child possess relatively high entrepreneurial intention compared to others in family
birth order. They also score high in motivational factors (such as intrinsic rewards, independence/autonomy) and
obstacles/challenges (exogenous factors, exogenous factors-personal, endogenous factors-financial and
operational). Despite reaching statistical significance, the actual difference in mean scores between the groups
was quite small as shown in Table 8.

Discussion, recommendations and future research

The purpose of this paper is to examine the perception of university undergraduate students’ perceptions on
entrepreneurship, on the motivators, obstacles and challenges as well as well the government support behind
starting up and sustaining a new venture. On the whole, the respondents to this study have a favourable perception
towards entrepreneurship and are highly motivated to be involved in entrepreneurship. This is understood as the
majority of the respondents were from business management studies. This corroborates a study by Zahariah, et al.
(2010) who found that half of Malaysian business students surveyed had intentions to be entrepreneurs. Also, the
respondents revealed some possible obstacles/challenges they might face while starting up a new venture as well
as how the government can do to support entrepreneurship.
The actual motivational factors of the university students are comparable to that of a study of Moy et al. (2001).
They are motivated to start a new business due to the extrinsic rewards, intrinsic rewards and also
independence/autonomy of becoming entrepreneurs. The findings are almost the same with the entrepreneurs in
the US and Russia (Zhuplev, 1998). This also consistent with Liang and Dunn’s study (2007) who found that
personal and financial triggers are important triggers to start up a business venture. In this instance, it can be
justified by the fact that the Gen-Yers are now always looking for a better way of life and more freedom.
However, they are facing strong competition and lack of working capital when they would like to start up a new
venture. This supported the findings of Moy’s et al (2001) who found that students from Hong Kong and Thailand
encountered the same obstacles/challenges to start up a new venture. The support of government in promoting
entrepreneurship was rated fairly high and the findings is in agreement with Fogel’s (2001) findings which
showed high taxation and unavailability of long term financing hinder the effort to promote entrepreneurship.
Males were found to possess higher entrepreneurial intention, motivation and able to cope with
obstacles/challenges while stating up a new venture. This finding is consistent with Moy, et. al. (2001), Ooi
(2008), Phan, et al. (2002) and Shandu, et al. (2011). However, surprisingly, working experiences were found to
have no difference and not significant with one’s entrepreneurial intention, motivation or obstable/challenges in
starting up a new venture.
190
International Journal of Business and Social Science Vol. 3 No. 19; October 2012

This finding is quite strange and somewhat new as compared to previous studies (e.g. Thandi and Sharma (2004))
that indicated the opposite findings. Nevertheless, this finding supports a study by Kristiansen and Indarti (2004).
It may be possible that the majority of respondents are still studying at university though some of them have
previous working experience (but in very short period, less than a year). Therefore, they view that working
experiences might not the important factor while starting up a new venture. However in absence of firm
confirmatory data, this view remained a conjecture. Also, those who are the first born in family show a higher
intention towards entrepreneurship, motivation and capable to face the obstacles/challenges while starting up a
new venture compared to others. This is in support of the study by Ooi (2008). This may attribute to a possible
explanation that first born child, especially, males, are always expected to help parents to bear family burdens.
This view is particularly practised in most Asian cultures.
Based on the findings of the results, the current research proposes some recommendations for action to be
considered and inplemeted by relevant parties concerned:

• The role of university

It is strongly recommended that universities play a more proactive role by introducing a special entrepreneurial
short course to students, in particular, final year students. This can be served as a preparation for the students that
emphasises the pre-start and start-up stages of business creation as these are always the most challenging stages
when someone embarks on a business venture.

• The role of government

The government through its relevant authorities, such as Council of Trust for the Indigenous People (MARA) or
National Entrepreneurship Institute (INSKEN) should be involved more actively with students’ entrepreneurial
activities in light of the interest shown by the students. These agencies can provide a one-stop business advice and
guidance centre, especially to assit inexperience graduates to set up a new business. Valuable business-related
information such as source of funding, procedures to start up a venture as well as legal advice can be provided by
the centre.
More in depth study of potential graduate’s antecedents or characteristics and its subsequent actions to start up a
new venture can be further explored. Are they starting up a new venture because of nterest or due to certain life
intricacies (for example unemployement). Additional research on external business hostile environment such as
economic downturn can lead to a better understanding of entrepreneurs. A longitudinal study of pre and post
business entrepreneurs and their subsequent motivators and obstacles or challenges may yield better insight into
entrepreneurs and the process of entrepreneurship.
Conclusion
The importance of entrepreneurship is being recognised increasingly in generating a resilient Malaysian economy.
This study provides a platform for both universitiy and government to cultivate, develop and train a more
entrepreneurially-oriented and proactive university students able to launch business ventures upon graduation.
This effort can be achieved by providing a comprehensive entrepreneurship education as well as equipped
students with a range of entrepreneurial knowledge and skills to encourage higher interest in entrepreneurship.
References
Astrachan, J.H., & Shanker, M.C. (2003). Family businesses’ contribution to the US economy: A close look. Family Business
Review, 16(3), 211-220.
Buang, N.A. (2002). Asas Keusahawanan, Penerbit Fajar Bakti Sdn. Bhd., Kuala Lumpur.
Dunn, C. (2004). Background of nascent entrepreneurs, viewed January 23 2006,
www.sbaer.uca.edu/research/icsb/2004/Papers%20pdf/010.pdf.
Fakhrul, A.Z., & Wan Norhayate, W.D. (2011). Indigenous (‘Bumiputera’) Malay entrepreneurs in Malaysia: Government
supports, entrepreneurial orientation and firms performances. International Business and Management, 2(1), 86-99.
Fleming, P. (1996). Entrepreneurship education in Ireland: A longitudinal study. Academy of Entrepreneurship Journal. 2(1), 94-118.
Fogel, G. (2001). An analysis of entrepreneurial environmrnt and enterprise development in Hungary. Journal of Small
Business Management, 39(1), 103-109.
Gnyawali, D. R., & Fogel, D.S. (1994). Environments for entrepreneurship development: Key dimensions and research
implications, Entrepreneurship Theory and Practice, 18(4), 43-62.

191
© Centre for Promoting Ideas, USA www.ijbssnet.com

Kao, W .Y. (1995). Why entrepreneurship could be taught and should be taught including an introduction to a model for
entrepreneurship education, Journal of Small Business and Enterpreneurship, 12(4), 97-99.
Klapper, R. (2004). Government goals and entrepreneurship education: An investigation at a Grande Ecole in France.
Education + Training, 46(3), 127-137.
Koh, H. C. (1996). Testing hypotheses of entrepreneurial characteristics: A study of Hong Kong MBA students, Journal of
Managerial Psychology, 11(3),12-25.
Kozan, M.K., Oksoy, D., & Ozsoy, O. (2006). Growth plans of small businesses in Turkey:
Individual and environmental infleunces. Journal of Small Business Management, 44(1), 114-129.
Kristiansen, S., & Indarti, N. (2004). Entrepreneurial intention among Indonesian and Norwegian students, Journal of
Enterprising Culture, 12(1), 55-78.
Kumar, J. (2009). Malaysia SMES’s to contribute 37 pct to GDP by 2010. Top News Singapore,
http://topnews.com.sg/content/2239-malaysia-sme-s-contribute-37-pct-gdp-2010
Kuratko, D. F., & Hodgetts, R. M. (2007). Entrepreneurship: Theory, Process and Practice, 7th edn., Thomson Learning, Ohio, US.
Lee, S M, Lim, S, Pathak, R D, Chang, D & Li, W. (2006). Influences on students attitudes towards entrepreneurship: A
multi-country study, The International Entrepreneurship and Management Journal, 2(3), 351-366.
Lena, L., & Wong, P. K. (2003). Attitude towards entrepreneurship education and new venture creation, Journal of
Enterprising Culture, 11(4), 339-357.
Liang, C.K., & Dunn, P. (2007). Triggers of decisions to launch a new venture – is there any difference between pre-
business and in-business entrepreneurs? Academy of Entrepreneurship Journal, 13(1), 79-95.
Md Yusof, A.B., Rohan, J., & Yong Zulina, Z. (2009). An overview of graduate employability of recent graduates: Some
facts and figures. Seminar on employability. The Ministry of Higher Education of Malaysia, Putrajaya, 21-22 July
2009. http://www.alumni.upm.edu.my/employability/papers/002_Prof_%20Dr_Yusof_Abu%20Bakar.pdf
Menzies, T. V., & Tatroff, H. (2006). The propensity of male vs. female students to take courses and degree concentrations in
entrepreneurship, Journal of Small Business and Enterpreneurship, 19(2), 203-218.
Moy, J., Luk, V., Sheehan, B., & Sammapan, N. (2001). A comparative study on the perceptions of university business
students in Hong Kong and Thailand: Why do they become entrepreneurs. BRC Working papers, http://
http://net2.hkbu.edu.hk/~ied/publications/wp/WP200102.pdf
Mukhtar, S. M., Oakey, R., & Kippling, M. (1999). Utilisation of science and technology graduates by the small and
medium-sized enterprise sector, International Journal of Entrepreneurial Behaviour and Research, 5(3), 126-143.
New Sabah Times (2011). SMEs’ contribution to GDP rises to 40 pct by 2020. 14th December, 2011.
Omar, M.S. (2006). Malay business: Revivalism through entrepreneurship. Pelanduk Publications (M) Sdn. Bhd. Kuala Lumpur.
Othman, M. N., Ghazali, E., & Cheng, O. C. (2005). Demographics and personal characteristics of urban Malaysian
entrepreneurs: An ethnic comparison, International Journal of Entrepreneurship and Innovation Management, 5(5/6), 421-440.
Phan, P.H., Wong, P. K., & Wang, C.K. (2002), 'Antecedents to entrepreneurship among university students in Singapore:
Beliefs, attitudes and background', Journal of Enterprising Culture, 10(2), 151-174.
Ooi, Y.K. (2008). Inclination towards entrepreneurship among Malaysian university studnets
in northern Peninsular Malaysia. Unpublished doctoral thesis. Swinburne University of Technology, Melbourne, Australia.
Robinson, P. B., & Hunt, H. K. (1992). Entrepreneurship and birth order: Fact or folklore, Entrepreneurship and Regional
Development, 4(3), 287-298.
Ryan, R. M., & Deci, E.L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary
Educational Psychology, 25, 54-67.
Sandhu, M.S., Sidique, S.F., & Riaz, S. (2011). Entrepreneurship barrires and entrepreneurial inclination among Malaysian
postgraduate students. International Journal of Entrepreneurial Behaviour & Research. 17(4), 428-449.
Shane, S., Locke, E.A., & Collins, C. J. (2003). 'Entrepreneurial motivation', Human Resource Management Review, 13, 257-279.
Simola, V. (2011). Intrinsic or extrinsic? A study on motivational factors among a network of entrepreneurship mentors: Case
Venture Cup Finland. Unpubliseh Mater’s thesis. Aalto University.
http://hsepubl.lib.hse.fi/FI/ethesis/pdf/12483/hse_ethesis_12483.pdf
Super, D E, 1990, 'A life-span, life space approach to career development', in Brown, D (eds), Career choice and
development, Jossey-Bass, San Francisco, USA.
Thandi, H., & Sharma, R. (2004), 'MBA students' prepareness for entrepreneurial efforts',
Tertiary Education and Management, 10, 209-226.
Veciana, J. M., Aponte, M., & Urbano, D. (2005). University students' attitudes towards entrepreneurship: A Two countries
comparison, International Entrepreneurship and Management Journal, 1, 165-182.
Young, E.C., & Welsch, H.P. (1993). Major elements in entrepreneurial development in central Mexico. Journal of Small
Business Management, October, 80-85.
Zahariah, M.Z., Amalina, M.A., & Erlane, K.G. (2010). Entrepreneurship intention among Malaysian business students.
Canadian Social Science, 6(3), 33-44.
Zhuplev, A., Kon’kov, A., & Kiesner, F. (1998). Russian and American small business: Motivators and obstacles. European
Management Journal, 16(4). 505-516.

192