ABSTRACT: problem throughout the whole world for both


ABSTRACT:

Locus of control, need
for achievement, risk tolerance, and entrepreneurial alertness are dimensions
of personality traits which lead an individual to create those entrepreneurial
purposeful. The reason for this study is to investigate the impacts of the customized
qualities on the entrepreneurial intention among the business graduates. This
study was conducted on 280 graduate students in Pakistan. It was observed from
the research that the personality traits had a great positive influence on the
entrepreneurial intention and all the personality traits are directly
proportional to entrepreneurial intention.

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1-
INTRODUCTION:

1.1
Background of the Study:

It is generally
believed that unemployment is one of the serious problem throughout the whole
world for both developed and undeveloped countries and Pakistan is not the only
one who is facing the issue of unemployment there are many other advanced and
developed countries also who are facing the same issue Khursheed, 2017. Those
countries who are developed now days believed that entrepreneurship plays an
important role for providing job opportunities and enhancing economic
activities Hussain, 2015. Economists have provided a beneficial solution for
those who are unemployed and the solution is self-employment that a person can
earn profit in maximum quantity being a self-employed or entrepreneur Ramzan,
2010.  Now days lot of people are
thinking to start their own business and get more and more profit and the
benefit of starting own business by leading and controlling it is that he/she
becomes their own boss that they don’t need to work under the command of any one
Fareed, 2014. The importance of entrepreneurship is increasing on regular
bases because of the shortage of job opportunities and economic activities. The
entrepreneurs can play a vital and important role in the economic expansion as
well as the development of the country. In Pakistan entrepreneurship is
becoming prominent day by day that some universities are offering the course of
entrepreneurship and some universities are conducting specialization in this
course and each year large group of students qualified in entrepreneurship Iqbal, 2013.

 

1.2
Statement of the Problem:

Because
of showing less attention and less focused towards entrepreneurship by the
government of Pakistan as well as by the policy creator in the previous years
the entrepreneurship can’t get so much popularity and importance Haque, 2007.
Unfortunately on the other hand due to limited resources and lack of economic
growth the government cannot afford all the fresh candidates by providing job
facilities that’s why they are preferring and forcing to be self-employed or
entrepreneur for both the genders Musawar, 2013. Another problem is that in
Pakistan because of terrorism the economic activities has declined that due to
which unemployment increases and because of unemployment the poverty increases
Kaleem, 2017.

 

 

 

 

1.3
Research Objectives:

Objectives of research
are to find the result of personality traits, need for achievement, locus of
control, risk tolerance and entrepreneurial alertness on the bases of entrepreneurial
skills among the students who are graduated in the university of Pakistan Rashied,
2013. Another objective is to test a person that among 5 personality traits
which one trait will cause a person to be an entrepreneur or self-employed Usman,
2010. Another main objective of the research is to discover that is there is
any kind of gap between male and female graduates in understanding the
entrepreneurship Awan, 2012. Important objective which has been highlighted
in the research is to find that how can be various factors have a strong impact
on entrepreneurial intentions among the university students who will enter into
the market for performing job after the graduation Rehman, 2011. The main
objective of the research is to identify the student’s ambition towards
constructing a business from the initial point Ahmad, 2017.

 

1.4
Structure of the Study:

First we have described
a brief introduction about personality traits on entrepreneurial intention in the
context of Pakistan, afterwards we have discussed literature review in which we
described briefly about LOC (Locus of Control), need for achievement, risk
tolerance, entrepreneurial alertness and entrepreneurial intention. After that
we came to methodology in which we discussed research goal, sample, data
collection, research model, hypotheses, measures, analysis  and results. Finally in the last conclusion is
discussed in a beautiful way in which we conclude all the report.

 

 

2- LITERATURE REVIEW:

2.1 Theoretical Background:

The theory used in our article is Locus
Of Control (LOC). Locus of control (LOC) is the degree of tolerance of a
person which he/she meets and handles all the expected problems and critical
situations. It is also the degree through which people believe that they are
the masters of their own destiny. Basically locus of control are of two types
that are internal locus of control and
external locus of control. The internal locus of control characterize that the individuals believe that
they could control what happens to them e.g: all sales person are included in
the internal locus of control. The external locus of control characterize that the individuals believe that
what happens to them is controlled by the outsiders e.g: luck or chance. Locus
of control (LOC) is the ability of the people of controlling the environment
through their own actions. Locus of control (LOC) is the best measuring scale
to differentiate between the successful and failure entrepreneurs. There are lot of studies which
describes that many entrepreneurs have higher locus of control (LOC) than other
people. Locus of Control (LOC) also tells the level of feelings. Internal locus
of control is also inter-link with entrepreneur’s means that the people who
have trust on their actions get highest rewards as a result. The people who
have higher internal locus of control they can easily handle-out all the
outputs. The people or individuals who have higher external locus of control,
always put blame to the outsider forces and they depend on luck factor,
injustice, unfair, chance and unjust etc.

The model used in our article is Davidsson’s
Model. In our article this model contains one dependent variable and four
independent variables in which entrepreneurial intention is the dependent
variable and the independent variables are locus of control (loc), need for
achievement, risk tolerance, and entrepreneurial alertness. The main purpose of
presenting this model is to suggest the psychological factors that are
influenced by entrepreneurial intention of an individual. The Locus of Control
(LOC) is directly related to entrepreneurial intention that if  person will have high locus of control (loc) then
his/her entrepreneurial intention will also high. The need for achievement is
also directly proportional to entrepreneurial intention that motivate a person
to achieve something. Risk tolerance is also directly related to
entrepreneurial intention that a person having the attribute of taking better
risk will increase the entrepreneurial intention in his or her self.
Entrepreneurial Alertness is also directly related to entrepreneurial intention
that it has a deep impact on entrepreneurial intention because it is the
potential to see those chances that are failed to observe by others.

 

2.2 Empirical Findings:

2.2.1 Dependent Variable:

Entrepreneurial Intention:

It was discussed in the previous studies that ” The Influence of
Demographic factors on Entrepreneurial Intention among Undergraduate Students
as a Career Choice”. This study showed that students , the income of the head
of house. This study tells the students who are not graduate they have less
entrepreneurial intention when we compare to the graduate students. The
entrepreneurship events increases the ideas of students and make student
innovative Talas, 2013. It was discussed in the previous studies that “The
Factors Affecting Entrepreneurial Intention of the Students of  Vietnam National University”. This study
showed the result that the what are those motivated factors which deeply effect
the entrepreneurship intention. This study also telling  to support all the new business owners and
those who want to start any new business in the pitch of entrepreneurship Khuong,
2016. It was discussed in the previous studies that ” Impact of
Entrepreneurial Education on Entrepreneurial Intentions of Pakistani Students”.
The  entrepreneurship education is one of
the most important factor for entrepreneurial intentions. There is a direct relationship
between those who have high education and high entrepreneurship. This study
tells about the students who have higher education and they have high
entrepreneurship. Entrepreneurship is the factor which increases the creativity
, building concepts , increases ideas. Through entrepreneurship the no of
employment opportunities increases and unemployment decreases. Entrepreneurship
increases the opportunities for starting new business and also increases the
knowledge and to develop the new skills. Entrepreneurship also enhance the
learning capability Hussain, 2015. It was discussed in the previous studies
that” Entrepreneurial Intention Among Nigerian University Student”.
Entrepreneurial Intention plays an important role in our society. This study tells
the about the entrepreneurial Intention is one the most important factor for
extension, development, initiatives. Entrepreneurial Intention is also the
factor  through which the economic growth
of the countries increases. Entrepreneurial Intentions deeply effected on
behavior of individual and it also increases the awareness in people. There are
lot of conditions such as point of view, standards etc they all receive
observations and they influence without deviation entreprenuerial intention of
the repsondents. Entreprenuerial intention also changes the mindset of the
respondents Ahmed, 2015. It was discussed in the previous studies that
“Entrepreneurial interest and academic performance in Nigeria: evidence from
undergraduate students in the University of Ibadan”. This study tells about to
recognize the components that impact student attentiveness in entrepreneurship,
the consequence of entrepreneurial activities on student educational
production. It also tells that the students who involve in business activities
so it has no any outstanding consequence on educational production. The results
tells that the large no of quantity of scholar do not attract in
entrepreneurial activities. This study also tells that the interest of
entrepreneurship is more in male students than female students. This study also
tells that the entrepreneurship in scholar increases the innovation and ability
to create the new ideas due to which scholar or students could find out the
appropriate solution of any difficult problem or any critical situation easily
Sobowale, 2017. 

 

Independent Variables:

IV-1 Locus Of Control (LOC):

It was discussed in previous studies that locus of control (loc) plays
a vital role in daily life and it is inter-related to psychological and the
consequences of physical health. It was explored in the study that whether the
locus of control (loc) is connected with the anxiety and frustration, and
whether it anticipates the performance of health and its result Ryon, 2013.
Locus of Control (LOC) is directly proportional to entrepreneurial intention
that it depends on a potential of a person to deal with unpredictable events.
The person who contains less patience in him or herself will fight and can’t
control on his or her feelings while on the other hand the person who contains
high patience in him or herself will accept the situation Manichander, 2014.
If a person tries to have control on his or her feelings or emotions then he
will get good rewards in performing every task including studies because he
will show his or her full attention towards studies Kanwal, 2016. It is also
discussed in a previous study that internal locus of control plays an important
role in helping the individuals in retaining the good condition of health
Singh, 2015.

 

IV-2 Need For Achievement:

Need for achievement is directly proportional to entrepreneurial
intention as it was discussed in the study in Bangladesh that one of the
attribute of a personality trait of a person is need for achievement that
motivate a person to build entrepreneurial intention in his or herself, and the
person who has the personality trait of need for achievement will make
effective decisions and will take risks according to the situation which will
satisfy him or her Djatmika, 2016. Another researcher proposed in his
findings that need for achievement is one of the vital and most important trait
of entrepreneurial intention that it is the need to achieve the specific goals
or aim Joseph, 2017. The another studies discussed that higher need for
achievement is opposite to lower need for achievement, the person with higher
need for achievement will like to challenge the tasks with great efforts and
effective skill Osman, 2015. Need for achievement is the force that motivate
a person to work hard and struggle for achieving goals and the objectives.
Those who contains high need for achievement depends on themselves and proof
them a responsible person ,set goals and takes the risk according to the
situation which will later on give them benefit in respond Honglin, 2015.

 

IV-3 Risk Tolerance:

Risk Tolerance is directly related to entrepreneurial intention that
if a person have the personality trait of risk tolerance will automatically
have high entrepreneurial intention in him/her self. The entrepreneurs
recommend to take common risks in taking the decisions regarding business and
should avoid to involve in a situation where is even a little chance of
critical risks Honglin, 2015. Risk usually sends back the chances of
unpredictable outcomes, the tendency of entrepreneur’s while taking risk is
related to the formation of risk. While analyzing the risky situation the
person who is taking decision creates some point of view about the end result Yurtkoru,
2014. It was discussed in previous study that taking risk is the most
important affective variable among all in entrepreneurial intention and on the
other side the same research was conduct in Pakistan where it was confirmed
after the research that risk tolerance or risk taking is the most important and
valuable variable that contains a very deep impact on entrepreneurial intention
Kaleem, 2017.

 

 

1V-4 Entrepreneurial Alertness:

Entrepreneurial Alertness is directly related to entrepreneurial
intention that Entrepreneurial alertness is one of the most important factor
that has impact on brain of a person to recognize the opportunities Hashim,
2016. The entrepreneurial alertness is used to enlarge perception by
gathering, converting and  choosing
information from the environment so that it can be used for discovering chance
that are failed to observe by others Hashim, 2016. It was discussed in
previous research that entrepreneurial alertness is the individual ability or
characteristics to make the discernment decisions and to clarify and gathered
the information within the same area of knowledge, so it was confirmed from the
research that the person having high entrepreneurial alertness will
automatically have high entrepreneurial intention in him or her self Yusof,
2017.  

2.4 Conceptual
Framework:

The dependent variable of our topic is
entrepreneurial intention where as independent variables include locus of
control (loc), need for achievement, risk tolerance and entrepreneurial
alertness.

The research model of the study is as
follows:

 

 

3-METHODOLOGY:

3.1 Type of
Research:

The most important objective of this
study is to highlight the consequences of the personality traits that have an
influenced on the entrepreneurial intention of an individual in Pakistan. The
method which is used in our research is quantitative method because we have
collected a data through questionnaires. The approach which is used in our
study is deductive approach because a deductive approach build hypothesis. The
scale used in our study is likert scale because it is used to identify the
variables for collecting data about the factors which influences
entrepreneurial intentions of an individual.

3.2 Nature of
Research:

The nature of our research study is
correlational because in our topic entrepreneurial intention is connected among
four personality traits (Locus of Control, Need for Achievement, Risk Tolerance
and Entrepreneurial Alertness) that shows a relation with entrepreneurial
intention that they are directly proportional to entrepreneurial intention that
if the personality traits will increase in an individual then automatically
entrepreneurial intention will also increase.

3.3 Sample size:

The sample size of our study is
280 so the population is quiet large who are unknown. The sample size we have
selected after considering the population size in different universities among
business graduate students in Karachi. The mostly targeted population is the
MBA students and BBA graduates are less in number. We selected several
universities for collecting

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