International Journal of Advanced Research in Management (IJARM)
Volume 6, Issue 3, Sep-Dec (2015), pp. 36-44, Article ID: 10220150603005
Available online at http://www.iaeme.com/issue.asp?JType=IJARM&VType=6&IType=3
ISSN Print: 0976 - 6324 and ISSN Online: 0976 - 6332
© IAEME Publication
___________________________________________________________________________
A STUDY ON THE ENTREPRENEURIAL
SKILLS AMONG STUDENTS IN CHENNAI
Dr. J. Rengamani
Associate Professor, AMET Business School
AMET University
Dr. S. Ramachandran
Director, AMET Business School
AMET University
ABSTRACT
Entrepreneurship is the dynamic process of creating incremental wealth.
The wealth is created by individuals who assume the major risks in terms of
equity, time and /or career commitment or provide value for some product or
service. The product or service may or may not be new or unique but value
must somehow be infused by the entrepreneur by receiving and allocating the
necessary skills and resources. In recent years, fostering entrepreneurship has
become a topic of the highest priority in public policy throughout most
industrial countries. Well educated technical entrepreneurs are of paramount
importance to economic development of any nation. The development of
entrepreneurial talent is important to sustaining a competitive advantage in a
global economy that is catalyzed by innovation. The role of quality
entrepreneurship education and training, in identifying and nurturing this
entrepreneurial potential among youth is becoming apparent to students,
policy makers, and educators. Now, there is an increasing trend and growing
interest for becoming entrepreneurs among younger generation. But our
education system is designed in such a way as to create more of jobseekers
than job creators. The Entrepreneurs do not emerge spontaneously on their
own. Entrepreneurial development is a complex phenomenon and such
process is the crystallization of social milieu from which a person comes,
family imbibed personal attitudes, caste system, educational level, parental
income, occupation and so on. Besides, educational institutions could play a
positive role in motivating the students to venture into self employment. In the
above backdrop, this study on Entrepreneurial spirit among students, has been
undertaken to identity the reasons for choosing entrepreneurship as a career
and to examine the influence of various factors on students preference towards
entrepreneurship.
Key words: Entrepreneur, Entrepreneurial Traits and Entrepreneurship
development
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A Study on the Entrepreneurial Skills among Students in Chennai
Cite this Article: Dr. Rengamani, J. and Dr. Ramachandran, S. A Study on
the Entrepreneurial Skills among Students in Chennai. International Journal
of Advanced Research in Management, 6(3), 2015, pp. 36-44.
http://www.iaeme.com/issue.asp?JType=IJARM&VType=6&IType=3
1. INTRODUCTION
An entrepreneur first has to identify by some means, the activities that he will take up
in his/her business with the expectation of the profits. He then has to organize the
resources that the activity will require –men, money, machinery or whatever else.
Having set up the business, he then has to manage it efficiently. And finally, as the
risk taker, apart from enjoying the wealth that he creates, he will have to sustain its
continuing need for different resources, as it hopefully expands and grows.
One realizes the rationale behind inculcating the Entrepreneurial Skills among the
graduates who belongs to science and technology category. However not everyone
can become an entrepreneur, as numerous studies have revealed. There are certain
psychological traits; socio cultural, demographical and economic factors, perceptions
about the external environment, etc., which impact the entrepreneurial intent and
entrepreneurial competence of an individual. Just as water diviners identify the
ground which will yield water, there is a need to identify the potential candidate, who,
when given the necessary inputs and training is likely to become an entrepreneur.
Relatively few studies have examined the initial stages of Entrepreneurial intent
prior to actually commencing the enterprise. Few studies have sought to examine the
competence inventory to soon- to- be graduates, to identify weather they have the
interest and whether they have the competence to take up entrepreneurship as a career
choice.
This study proposes to fill the existing knowledge gaps in the study of
entrepreneurship, by studying the impact of socio cultural, demographic, economic
and psychological factors, and perception of the individual on entrepreneurial skills
and sprit among prospective entrepreneurs. i.e. Final year students of self financing
institutions in Chennai.
An individual’s confidence in one’s ability to access the available opportunities
(self employment, risk, etc.). When individual believes that starting one’s own
business is a great opportunity for success, does not like for working someone else,
believes that he/she could operate a successful small business and would rather
operate a small business, than being a middle manager with a larger organization, one
might conclude that he/she displays high “ Entrepreneurial confidence”. Refers to an
individuals’ belief concerning Entrepreneurial opportunities in the economy
(Financial rewards, employment etc.). When an individual believes that is the possible
for small business owners to be successful in today’s economy, has a lot of respect for
successful small business owners and firmly believes that he/she could successfully
operate a small business-one might conclude that the individual perceives positive
Entrepreneurial opportunities in the environment.
When the individual who is ignorant about the actual steps to be taken to start a
new venture, feels that an Entrepreneurial career is too risky, is not sure about the
various aspects of running own business and does not feel that he/she is developing
the skills necessary to successfully operate one’s own business – one may conclude
that the individual displays “Low Entrepreneurial Education”.
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Dr. J. Rengamani and Dr. S. Ramachandran
1.1. Major Competencies Identified by the study that lead to Superior
Performance of the Entrepreneurs
1. Initiative: It is the entrepreneur who initiates a business activity.
2. Looking for Opportunities: He Looks for an opportunity and takes appropriate actions
as an when it opportune.
3. Persistence: Japanese Proverb – “Fall seven times; stand up eight”. He makes
repeated efforts to overcome obstacles that get in the way of reaching goals.
4. Information Seeker: Takes individual research and consult the experts to get
information to help to reach the goal.
5. Quality conscious: He has always strong urge to excel and to beat the existing
standards.
6. Committed to work: Does every sacrifice to get the task completed.
7. Efficiency seeker: Makes always tenacious efforts to get the task completed within
minimum cost and time.
8. Proper Planning: Formulates realistic and proper plans and then executes rigoursly to
accomplish the task.
9. Problem Solver: Always tries to find out ways and means to tide over the difficu lt
times.
10. Self Confidence: A strong believer in his strengths and abilities.
11. Assertive: Good in asserting his issues with others for the cause of his enterprise.
12. Persuasive: Able to successfully persuade others to do what he actually wants from
them.
13. Efficient Monitor: Personally supervises the work so that it is done as per standards
laid down.
14. Employees well wishers: Has great concern and also takes necessary measures to
improve the welfare of the employees working in his enterprise. Treat employee as a
human being.
15. Effective Strategist: Introduces the most effective strategies to predict change, cope
with change and even create change.
2. LITERATURE REVIEW
Miroslav Glas et al (1992) studied the impact of the graduate Programme on student
attitudes towards entrepreneurship in general, starting up new businesses and leading
managerial careers in dynamic SMEs. Second, it wanted to obtain a Programme
evaluation and suggestions for possible changes in the future.
Morris and Lewis (1995) – This study Examines the interface of entrepreneurship
and marketing; defines entrepreneurship as a variable phenomenon that can be applied
at the societal, organizational and individual levels. Marketing is conceptualized as a
fundamentally entrepreneurial activity. Argues that entrepreneurship is an
environmentally-driven phenomenon and that the environmental determinants of
entrepreneurship can be categorized into three groups: infrastructure, turbulence and
personal life experiences. Draws out the implications of these determinants, and the
corresponding level of entrepreneurship that they produce, for the nature and role of
marketing at the macro and micro levels.
Lars Kolvereid and Øystein Moen (1997) – The framework of the study is,
Entrepreneurship has become a widely taught subject in Universities and Business
Schools. However, only a very small number of studies have investigated the effect of
entrepreneurship education. This research compares the behavior of business
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A Study on the Entrepreneurial Skills among Students in Chennai
graduates with a major in entrepreneurship and graduates with other majors from a
Norwegian business school. The results indicate that graduates with an
entrepreneurship major are more likely to start new businesses and have stronger
entrepreneurial intentions than other graduates.
Neck et al (1999) – The concept of the paper is “Thought Self- Leadership”
involves individual self- influence through cognitive strategies that focus on selfdialogue, mental imagery, beliefs and assumptions, and thought patterns. This
research provides consistent support for the relationship between constructive selfleadership of these cognitive processes and enhanced performance.
Margaret Fletcher (1999) – The study carried out to review the outcomes of the
Scottish Graduate Enterprise Programme (GEP). Two hundred and forty- five
graduates participated in the nine GEP business start up courses from 1983 to 1991.
They came from a range of academic institutions and disciplines. At leas t a half have
started a business at some point, From the findings of the study it was found that 50
per cent of those traced were in business, almost half were female. They did not tend
to come from entrepreneurial backgrounds, though most had previous work
experience. They had considered a range of career options. They started up with low
amounts of capital and found finance a constraint, although a range of other problems
were identified. On an average the businesses have shown growth in capital, turnover,
profits and number of employees. They rated their business performance high on
quality standards, innovation and competitiveness, though average on sales and profit
performance. The Graduate Enterprise Programme helped those with sufficient
motivation, to gain the ability to convert their idea into a business.
Kuratko and Hornsby (1999) – Studied the concept of "entrepreneurial leadership”
which has emerged as the critical factor for the 21st century Corporation. The article
describes the focus and strategy behind corporate entrepreneurship while presenting a
framework for professionals to understand the importance of implementing
entrepreneurial leadership in these organizations. The organizational dimensions and
the specific elements involved with corporate entrepreneurship set the stage for
understanding the interactive process of individuals and organizations. It is this
understanding that will focus professionals on the leadership of tomorrowentrepreneurial leadership
Rasheed (2000) – Identifying and nurturing entrepreneurial potential among youth
can have long-term implications for American economic development. This research
concludes that entrepreneurship education and experience can affect psychological
attributes commonly associated with entrepreneurs. Secondary students with
entrepreneurship training have higher achievement motivation, more personal control,
and greater self-esteem; and students who initiate a business venture have higher
achievement motivation, more personal control, greater self-esteem and more
creativity.
Peter Wyer et al (2000) – The paper proffers a tentative conceptualization of the
“small business strategic learning process”, demonstrating the complexity of the small
firm learning and management task. The framework, built upon personal construct
theory and learning theories, is elaborated through the grounding of relevant areas of
the strategic management literature in an understanding of the distinctive managerial
and behavioral features of the small business.
Ishwar Dayal (2000) – The study shows that the index of leader effectiveness in
India is the leader's success in terms of expansion of assets or activities. The Indian
concept emphasizes the entrepreneurial role more than that of people development.
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Only 15 per cent of the leaders in the sample perceived their role as people
developers. The study identifies three leader styles: (a) the entrepreneurial, (b) the
bureaucratic, and (c) the people oriented. All three styles are successful when
measured against the objective criteria of profits, growth, and public recognition of
the leader concerned. The consequences for the organization of each of the three
styles are different. Considering the emerging business and the economic environment
in the country, it is suggested that a people-oriented style is necessary. The article
suggests some ways of preparing organizations for the emerging demands of the
business environment.
Sasi Misra and Sendil Kumar (2000) – Study of the 'entrepreneurial
resourcefulness' model helps one to understand various aspects prompting an
entrepreneur to identify opportunities and thereby regulate and direct her/his behavior
to make the best use of these opportunities. The model elaborates three
entrepreneurial competencies—cognitive, affective and action oriented. Various
details of these competencies are elaborated to explain the behavior pattern of an
entrepreneur. The model treats the behavior of an entrepreneur as an outcome variable
and acknowledges that there are significant variations in the behavior of one
entrepreneur from the other. This article helps in resolving the doubts and confusions
surrounding the conceptualization of the terms 'entrepreneur' and 'entrepreneurship'.
The resourcefulness model clarifies these confusions and contributes towards both
theory advancement and generating new research hypotheses.
Krueger et al (2000) In this study the authors focus on undergraduate students in
their first-year of University Studies. The author touched entrepreneurial intentions
model as previously tested by would be applicable to this sample, with perceived
feasibility and perceived desirability of starting a business, directly related to their
entrepreneurial intentions and subjective norm indirectly related through perceived
feasibility and perceived desirability.
Diarmuid De Faoite et al (2003) – The study focuses on growing body of
academic research that has examined the effectiveness of entrepreneurship training
and support initiatives, with recent studies focusing on the provision of training and
other skills development opportunities.. The article considers the importance of
education and training to the economy and focuses on the particular value of
entrepreneurship education and training. Some of the fundamental themes in the
literature were reviewed, including the difficulties involved in categorizing
entrepreneurship education and training; the issue of whether or not entrepreneurship
can be taught; the content of entrepreneurship programmes and the cultural and
evaluative considerations.
Martyn Robertson et al (2003) – examined and put forth the importance of new
business start-ups cannot be over-emphasized. The UK government has taken actions
designed to stimulate the growth of new businesses and aid their survival. The
identification of barriers to entry is important, together with strategies to minimize
their impact.
Collins et al (2004) – in their study provides a review of the gap between students’
entrepreneurial needs & aspirations viz a viz the entrepreneurship education offerings
within higher education institutions (HEIs) in Leicestershire, UK; utilizes data from
three surveys of University fresher students, held in 2001; uses the findings as the
basis to assess the gap between fresher students' entrepreneurial needs and aspirat ions
and the capability of HEIs to meet them, draws on multiple surveys from universities
in Leicestershire and so will be of relevance to other HEIs with similar student
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A Study on the Entrepreneurial Skills among Students in Chennai
demographics, fulfils a need to take a strategic review of how HEIs can develop the
capability to meet the entrepreneurial needs of new students in supporting their future
aspirations.
Anuradha Basu (2004) – This paper contributes to our understanding of the
intersection between entrepreneurship and family businesses by examining the
business aspirations of immigrant entrepreneurs from five different ethnic minority
communities in the UK. It explores differences in the entrepreneurs' antecedents that
might explain differences in their aspirations and examines the interaction between
aspirations and business behavior and outcomes. It finds that despite the importance
of the family in their businesses, ethnic minority entrepreneurs have diverse
aspirations. It is possible to distinguish between those with business-first, family- first,
money-first and lifestyle- first aspirations. Their educational and family background
affects entrepreneurs' aspirations, as does their stage on the family life cycle.
Differences in aspirations are related to the nature of business, the way in which it is
managed, the recruitment of professional managers and entrepreneurial performance.
The research findings highlight the diversity in aspirations among family business
owners and the complexity of the interaction between ethnicity, culture, class and
entrepreneurship.
Gerald Vinten and Steve Alcock (2004) – The author has studied and found that
encouraging entrepreneurship has become an accepted wisdom in economic
management and government policy. It could only be a matter of time before the
world of education was invoked as a means of furthering this end. Business schools
have not made the most incisive contribution possible, and there is a significant
expectations gap. So as we cascade down to the secondary level, efforts are being
made to improve matters.
3. RESEARCH OBJECTIVES
1. To carry out a comprehensive study in order to assess the degree of Entrepreneurial
abilities among students in chennai, as a career option.
2. To find out the impact of dimensions of Entrepreneurial Traits among students that
influences them favorably towards entrepreneurship.
4. METHODOLOGY
The Present study is based on both descriptive and analytical types of research design.
Descriptive study is designed to describe the characteristics of a particular group viz.,
final year students, on the basis of sample selected. It includes surveys and fact
finding enquires. The major purpose is to present things as they are. Here the
researchers have no control over the variables and he could only present items as they
are, as revealed by the sample respondents. An effort was made to infer relationship
between Personal factors with Dimensions of Entrepreneurial traits as well as with
overall interest towards entrepreneurship.
5. HYPOTHESES
NH: There is no significant difference between the overall interests towards
entrepreneurship with regard to Individual Dimensions of entrepreneurial traits.
6. DATA COLLECTION
A structured questionnaire was utilized, which incorporated Likert scale with 10 items
to check the composite Entrepreneurial index. Another set of statements with Likert
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Dr. J. Rengamani and Dr. S. Ramachandran
scale was used to assess the Entrepreneurial traits and competence on various
parameters. The questionnaire was administered by a personal interview method.
After pre testing the questionnaire, certain items were found inappropriate for the
respondents. The number of items in the competence scale was reduced based on its
appropriateness for the target population.
7. FINDINGS AND ANALYSIS
The hypothesis and its analysis show the overall picture of the whole scenario that
comprises entrepreneurial index (overall interest towards entrepreneurship) against
entrepreneurial traits.
Table 1 ANOVA Analysis for Significant Difference Between the Overall Interest Towards
Entrepreneurship with Regard to Dimensions of Entrepreneurial Traits
Dimensions of
Entrepreneurial
Traits
HR Ability
Communication
Ability
Self Confidence
Energy Level
Thinking Ability
Goal Setting
Taking Initiative
Risk Taking
F value P value
Overall interest towards
entrepreneurship.(Entrepreneurial index).
27.925 0.000**
Low
25.54a
Moderate
24.03b
High
25.66c
35.869 0.000**
29.22a
31.38b
38.805c
18.566a
25.778a
14.221a
18.276a
14.267a
27.0553a
20.092b
27.384b
15.679b
20.087b
16.392b
29.915b
21.513c
29.041c
16.833
21.421c
17.592c
32.083c
45.742
27.213
39.514
47.491
65.495
62.191
0.000**
0.000**
0.000**
0.000**
0.000**
0.000**
From the Table, it is inferred that, since the P value is less than 0.01, the null
hypothesis is rejected at 1% level of significance with regard to related factors of
Entrepreneurial traits like Human Resource Ability, Communication Ability, and
Energy level, Thinking Ability, Goal Setting, Self confidence, Risk taking and Taking
Initiative. Hence there is significant difference between Overall interest towards
entrepreneurship with regard to dimensions of entrepreneurial traits like Human
Resource Ability, Communication Ability, and Energy level, Thinking Ability, Goal
setting, Self confidence, Risk Taking and Taking initiative.
Based on Duncan Multiple Range test, those respondents having high skills of
entrepreneurship significantly differ from those who are having moderate and low
level of Entrepreneurial Skills at 1% level of significance with regard to Human
Resource Ability, Communication Ability, Self-Confidence, Energy Level, Thinking
Ability, Goal Setting, Taking Initiative, and Risk Taking. The re spondents having
Moderate level of Entrepreneurial Skills significantly differ from the respondents of
Low level skills of Entrepreneurship at 1% level of significance with regard to Human
Relations Ability, Communication Ability, Self-Confidence, Energy Level, Thinking
Ability, Goal Setting, Taking Initiative, and Risk Taking. From the above table it can
be observed that to become successful entrepreneurs, one should posses the
entrepreneurial traits like, Human Relations Ability, Communication Ability, Se lfConfidence, Energy Level, Thinking Ability, Goal Setting, Taking Initiative, and Risk
Taking etc. Those respondents shown interest in entrepreneurial career can be
properly motivated and can be helped to develop their skill and traits through training
programmes.
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A Study on the Entrepreneurial Skills among Students in Chennai
8. CONCLUSION
There is a dire need for a driving force in order to fuel further economic growth in the
country. Research indicates that there is a strong link between Entrepreneurial venture
in a Country and the Country’s economic development. Research also indicates that
business venture by the educated graduates adds more value to the economy as whole.
Also there is a glut of graduates who passed out from 290 Institutions in Tamilnadu
every year. Thus, when one considers all factors, there is a compelling need to
promote entrepreneurship avenues actively amongst the graduates. The study was
conducted to assess the entrepreneurial skills and competence of the final year
graduates. This study seeks to make a beginning in the pursuit of identifying the target
students who have the inclination and the rudimentary competencies for starting a
small business. These students could be then providing suitable training,
infrastructural and incubation support. It is also expected that students can improve
their entrepreneurial skills, constant training, experience and inspiration. Policy
changes could then be incorporated so as to transform the self financing institutions in
Tamil Nadu, into institutions which are technopreneurial hubs, thus imbibing the
students with entrepreneurial qualities, as throbbing with the skills for
entrepreneurship.
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