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Effect of Demographic Traits on the Rate of Entrepreneurship (Case Study: Tabriz Islamic Azad University Students)

Kamran Pashayi Fakhri1, Parvaneh Adelzadeh2
Department of Persian literature, College of Persian literature and Foreign Languages, Tabriz Branch, Islamic Azad University, Tabriz, Iran
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Abstract

This research aims to investigate the effect of demographic traits of age, education level, type of department and gender on the rate of entrepreneurship among Iran- Tabriz Islamic Azad University students. The statistical population consists of the students of Tabriz Islamic Azad University that 400 students were chosen as sample. The data were collected by the author made questionnaire and analyzed by T-test. The results show that among the features of demographic traits, type of department and level of education affect the rate of entrepreneurship.

Keywords

entrepreneurship, demographic traits, entrepreneur.

INTRODUCTION

Human societies have gone through three stages of evolution that includes: Traditional Society
Industrial Society
Informational Society
In traditional society, human primarily would provide their needs through hunting and agriculture and business owners followed from a specified range of customs and norms and few people thought to change and their ability to provide their needs was depend on their arm’s force and hand’s power and the value was spend to construct Palaces. By appearing of industrial revolution, business have started to progress and also Intellectual work was mentioned as complement to hand works. In this period that it called industrial society, the desire for innovation and creativity in human was increased and little by little characters was emerged that they were in the wake of satisfying curiosity and discovery of new subject. These people had concrete characteristics and they enjoyed risk. In industrial society, originality was given to energy and material, and motion and power were accelerated in this period and steam and complicated machines were invented and by increasing investment, some groups emerged as business model. In modern period which are called industrial or informational society, speed of changes and evolutions are so rapid that are called the wonders of speed and evolutions. In this period the value of hand’s works is reduced and instead of that, manpower quality with the ability of creativity and innovation, by using of idea and thought, finds value and importance. In such atmosphere that thinking is factor of distinction and excellence, communities can be developed that maximize the utilization from a human source which is the origin of idea and thought and the most critical factor of production (Ghane Basiri, 2004,173-178).
Some experts believe that three revolutions have occurred in informational society and they are in condition of evolution:
Digital revolution
Internet revolution
Entrepreneurship revolution
In digital revolution, data are transmitted speedily by communication systems of cable, wireless, optical and satellite, and more power for less cost; processing power and memory are among its features. In revolution of internet, internet is the most important group of media after TV and Internet has all other ways of communication together in itself, such as mail, newspapers, magazines, telephone, radio and TV, and everyone can obtain full information [1]. Some scholars of present era, has been named the era of entrepreneurship. Entrepreneurs will lead the revolution that led to the evolution and modernization of the economy in the flat world (Bygrave, 2002:18,).

THEORETICAL PRINCIPLES

Origins and evolution of entrepreneurship:
Entrepreneurship is the French word that includes the concept of commitment to working. So the meaning of entrepreneur is one who makes the commitment to accept organizing and managing new business that associated with risk.(Kuratko & Hodgettes,2001: 28). In the early sixteenth century, this concept was applied to those who were sent to military missions. The usage of this term gradually became more in the seventeenth century and also it was included engineering activities, such as construction and trench-making. Also by beginning of eighteenth century, this term was used for economic activities. In this framework, the entrepreneur spent more than four centuries of its evolutionary path. After this time the word entrepreneur was raised for various activities and in a different perspectives(Khanka, 2003, 1). For the first time, Richard Cantilon was discussed the importance and the role of entrepreneur in creating wealth and economic value. (Ahmadpour, 2008, 44). According to him, entrepreneurs are not initiator and innovative, he used the theory of profit that associated with risk to identify entrepreneurship. He believes that the task of the entrepreneur is purchase with fixed price and sale with non-fixed price (Blaug and Sturges, 1998:97)
In the years 1730, for the first time, he can be divided economic factors into three categories:
Land owners
Economic factors of wage earners
Those economic factors that work by accepting the danger and risk in the stock market
Jean Baptis was the first one who emphasized on the critical role of entrepreneurs in financial resources mobilizing which based on efficiency principles. (Schiller & Crewson, 1997, 2) according to Jean Baptis Say, entrepreneur should estimate request after observing an economic opportunity and then supply it; entrepreneur should provide the raw materials and organizes and trains labors and also at the same time attracts customers[11]. Joseph Schumpeter (1934) prominent economist, that known as the father of the entrepreneurship, considers entrepreneurship as motive engine of the economic development and it will be remembered as the creative destruction. This means that the entrepreneur, is created the static balance in the economy destruction and dynamic balance that is essential to economic development.
Entrepreneurial approaches
Totally there are three main approaches in the field of entrepreneurship:
Neoclassic school
Austria school
Schumpeter school
In the Neoclassic school, the entrepreneur is a lightning calculator. This people evaluate generating options and processes with lightning speed, and choose the best options. Austrian school of economics are said and suggest the more dynamic and rich concept of entrepreneurship. According to this approach, entrepreneurs discover unbalanced market opportunities and exploit them to reach a balance market position. Schumpeter knows the entrepreneur as individual thinker, courageous and inspired leadership that create economic imbalances by combining economic resources in new ways. (Loundsbury, 1998:3) Moreover the economists, psychology experts, management, sociology and anthropology have investigated various aspects of entrepreneurship. Study of entrepreneurship in psychology has focused on recognizing of this point that how the characteristics of individuals associated with entrepreneurial motivation and performance. Sociologists have efforts in identification of social groupings that based on race and religion and its impact on entrepreneurial activity and also anthropologists have been emphasized on the roles of culture and social relations in entrepreneurship ( Moghimi, 2004:78-79). Also in the late eighties decade management writers have noted to entrepreneurship and administration of entrepreneurial businesses.(Moghimi, 2004: 74)
Impacts of entrepreneurship on communities
Entrepreneurship has a very broad range of effects in society, and it includes from change of values to accelerated economic growth. Researchers have studied and investigated the changes and effects of entrepreneurship which create in society. Entrepreneurship economically satisfies efficiently the needs of community by using new technologies and modern methods, faster and with low cost; appropriate use of frozen investments; encourage investment and creation of new industries; recognition, creation and developing new markets; increasing productivity in society and technology transfer; creating economic activity that improves the economic conditions of poor. [2]. Entrepreneurship socially causes to increase welfare and job in society; organization and effective use of resources; returned to social values and job opportunities; development of education and encourage community to creative works [3]; entrepreneurship will cause to increase social profits by government, with incomes from taxes that government reach customs duties and transfer of work license to entrepreneurs can be invested in various projects such as roads and bridges construction, services and educational and medical facilities, maintain of peace and calm and other social and cultural fields (Khanka, 2003, 16-17). Entrepreneurship can be considered as factor of stimulating the sense of competition, providing a combination of production factors, recourses organization factors and effective use of them, integration and communication of markets factors, the removal of damage factor, gaps, bottlenecks of community and market, reduction factors administrative bureaucracy(reducing desk style, performance encouragement,..); evolution factors and modernization of national and local life; recognition factor, create and develop new markets, innovation and change lubricants factors and balance factors in dynamic economy, collecting wandering public savings; creating employment on a large scale; helping to regional balanced development, reducing economic concentration, redistribution of wealth and income; mobility of wandering and useless investment resources; improve the quality of life and etc [8]. The term of entrepreneur in the current meaning was used for the first time by Joseph Schumpeter. This economist that called the father of science entrepreneurship believed that economic development in a system will be possible when people in the society make innovation with risk and by this way new methods and solutions replace old and inefficient previous solutions. Schumpeter's creative destruction of thoughts and opinions began with the information revolution and included particular value and importance by the beginning of industrial era; because entrepreneurs was considered as factors of change and the entrepreneurial process as factors of change and evolution in the economic system, and considerable amount of research related to the decades of 70 and 80, 1990 was performed. The word entrepreneur contains successful meaning. This term means products, innovation, quality and modern services. Within a company, this term means specific type of spirit, vitality and Virtue .This term uses to determined persons whose creativity, persistence and inevitable success, will make them the heroes of the day[10]. Peter Drucker believes that entrepreneur is a person who starts small and new economical activity by his own investment. Entrepreneur will change values and their nature; risk taking and correctly making decision; he requires investment for its activity but never can be a investor; it is always looking for changes and answers to them and identifies opportunities [10].
Demographic characteristics
By separating of entrepreneurs from non-entrepreneurs, several features have been identified. The first category of variables that psychologists have paid attention to them involves personality and psychological variables that are called approach of characteristics. Most of these scholars were looking to discover the answer that, which of the entrepreneur's personality characteristics distinguish them from non-entrepreneurs. In the early sixties, by the goal of completion of studies that related to personality characteristics, psychologists and sociologists attentions were focused on another group of studies that called demographic variables that referred to them as studies of the behavioral approach[1].Unlike psychologists approach that focuses on entrepreneur's personality characteristics ,behavioral approach focuses on entrepreneurial activity and in addition to personality characteristics that mentioned in features of approaches, also environmental factors and behavioral characteristics of individuals such as experiences and personal and individual histories are emphasized. The demographic characteristics of entrepreneurs can be divided into two categories: a) Experimental characteristics b) characteristics associated with experience and background [8].
Experimental characteristics
Experimental characteristics can have significant impact on the individual’sdecision to be entrepreneur. According to this characteristics, we can name experience working in job or business which entrepreneurs independently follows it; among other factors, which comes from the experiences of individual, we can point to companions who can have significant impact on person’s decision to become entrepreneurs, this factor is called a role model. Layoff believes that dissatisfaction is also a factor that can influence individual’s decision to be an entrepreneur (Brokhouse, 2001:373).Work experiences: We can name work experience among other features of experimental characteristics. According to this features of demographic, a number of researchers have reported that entrepreneurs have previous experience when they are beginning their industrial work. Previous work experience in a particular direction of economic activities is correlated with success (Vichrych, 1981, 75).
Dissatisfaction with previous job: Dissatisfaction with previous job suggests several subjects: First, most entrepreneurs start their activities by working for someone else and Second, they only exit of this situation when they are not satisfied with their requirements and needs. Of course the employer's lack of understanding of entrepreneurial spirit has provided his dissatisfaction. Not only this problem depriving employer from active and experienced force, but also it often creates new competition for him, most of the entrepreneurs start their economic activities in industries that are already familiar with them (Hurandi & Tykan, 1979, 86). The role model: Family and friends as role models are effective to be entrepreneur. The child of an entrepreneur has informed his father’s entrepreneurial experiences in the table of lunch or leisure time of his father and on weekends, afternoons or summers he may experience entrepreneurial activities inside of his father (Feray, 1993:65). Characteristics associated with experience and background of individual: Significant aspects that examined in this approach are as follows: age, living conditions in childhood, years of marriage, number of previous jobs, membership in professional and commercial organizations, expected profits, foreign encouragement, unanticipated problems and evaluate personal mistakes, stay in the margins (of society) because of physical and social reasons, years of formal education, specific training, management training , supporting by family or previous manager, morality beliefs and has working conscience and etc (Dunkle Berg & Kooper,1982,93)
Education: Vasper (1982) believes that entrepreneurs who have experience but no education are more likely to fail. The second groups of entrepreneurs that the probability of failure is even more than the first category are trained and guided profitable activities. Although college education isn’t necessary factor for success, but it appears that for growth in the hierarchy of large companies and leadership in family firms is better to completed education and management training. [7]. Age: Age is another demographic variable that researchers mentioned. According to various conducted researches, we can say that the best time for being entrepreneur is end of twentieth to early forties, because in these ages, balance is created between the early necessary experiences and family responsibilities. Of course there are some exceptions. Some start their works at young age and some at age over 50 to 60 years and also be success.(Feray, 1993: 68). Individual shouldn’t stay in social base: Not staying in expected social base, makes an individual to have effort to demonstrate entrepreneurial motivation. ( Ahmad pour, 2007:112) So, sometimes being in margins and the low position and dignity of the individual in society, makes person to pay more effort to compensation for their backwardness and Strengthen and develop their internal capacity[9].

BACKGROUND OF THE RESEARCHES

Numerous studies have been conducted in relation to demographic characteristics. Mosleh-Shirazi in one of his research, has compared the entrepreneurship characteristics of male and female students of Shiraz university. According to the aim of investigating entrepreneurial characteristics, he has studied 200 samples of first and fourth -year students of literature, human science and engineering departments of Shiraz university and results revealed that the students of Shiraz university generally don’t have entrepreneurial spirit and interest, and none of the characteristics of entrepreneurship and entrepreneurial spirit and mood were observed differently between male and female students. Golamhose in in another research with the title of gender and entrepreneurship, with the aim of investigating students educational needs, has selected samples between the students of second entries (1380 entries) and fourth entries (1378 entries) of agriculture faculty of Shiraz university and results revealed that there is no significant difference of psychological characteristics among male and female students .Cooper in his researches related to work experience, understood that more than 97 percent of new companies that are active and work in areas with high technology, have at least one founder that previously worked in that industry and almost 85 percent of ne companies were include primary goods or services that previous founders technical experience has been used; Most of Brockhaus’s dissatisfaction with his previous job that made him to decide to begin a new activity was unsuccessful entrepreneurs . In relation to role model, R. Brockhaus & W. Nord (1980) in their studies found that the majority of fathers of successful entrepreneurs, in high technology industries were the owner and manager. At least 40% of entrepreneurs in their families have observed their entrepreneurship experiences. In relation to education level, Hornadi and Tykan (1979) found that many successful entrepreneurs feel that education is less important for entrepreneurs before the current younger generation. However, now due to high growth of technology and intense competition, training has found special significance. When Brockhaus & Nord (1972) were comparing the education levels of entrepreneurs and managers, have found that education levels of entrepreneurs were lower than managers. Average education years of entrepreneurs are 13/57. Managers because of their higher education level may be achieved better satisfactory occupations. Of course it should be noted that education of entrepreneurs in this study, has been more than ordinary person. It should be mentioned that also these findings is consistent with previous findings of Howell (1972) [4,5,6]. Papank (1971) and Babv (1978) found in their research that education has not a big role on entrepreneurship and even successful entrepreneurs. Taykn and Hornadi (1979) in their research in the field of education found that many successful entrepreneurs feel that before the current younger generation, education is less important for entrepreneurs. The aim of doing this present research is to find answers for these questions that whether the demographic characteristics such as age, educational level, department type and gender has affected the entrepreneurship of students of Tabriz Islamic Azad University. It means age affect the entrepreneurship of the students. Do types of department impact on entrepreneurship of students? Does gender impact on entrepreneurship of students? Do level of education impact on entrepreneurship of students?

METHODOLOGY

The present research method is survey, its type is analytical and its purpose is application. The research statistical society is Tabriz Islamic Azad University Students (The sample size is 400 students and it is random. Data collection tools are interview, observation and questionnaire. Of the researcher which have been decided by him. It has been approved as the content validity. Questionnaire reliability using Cranach’s alpha test have been obtained respectively 90% and is highly validated. Research conceptual model
Age
Education degree
Entrepreneurship
Gender
Department

DATA ANALYSIS

T-test was used for analysis of research hypotheses that are as follows:
First hypothesis: Gender has an impact on entrepreneurship of students
H0: Average score of male students of entrepreneurship and average score of female students of entrepreneurship are equal. H1: Average score of male students of entrepreneurship and average score of female students of entrepreneurship aren’t equal.
image
First test: Variance equality test, which is the value of F is equal with 2.610 and the amount of sig. is equal with 0.107. Thus, according to achieved significant level, variance equality hypothesis can’t be rejected. It means that due to the information of this sample, entrepreneurship variance among male and female students are equal.
The second test is the test of average comparison of entrepreneurship of male and female students of Tabriz Islamic Azad University that with the assumption of equality of variances, the value of sig. is equal with 0.180 that is more than 0.05. Thus, according to obtained significance level, H0 can’t be rejected. We can be said that the entrepreneurship average of male and female students of Tabriz Islamic Azad University are equal. According to high and low rate, can be said that the average of difference between two communities were not significant and the equality average of two community aren’t rejected .According to results of above table, we can conclude that in the considered statistical community, independent variable does not affect dependent variable.
Second hypothesis: Department has an impact on entrepreneurship of students.
H0: Average score of engineer department students of entrepreneurship and average score of management department students of entrepreneurship are equal. H1: Average score of engineer department students of entrepreneurship and average score of management department students of entrepreneurship aren’t equal.
image
The second test: The second test, is the test of average comparison of entrepreneurship of engineer department and management department students of Tabriz Islamic Azad University that with the assumption of equality of variances, the value of sig is equal with 0.003 that is minor than 0.05. Thus, according to obtained significance level, H0 can be rejected. It can be said that the entrepreneurship average of engineer department and management department students of Tabriz Islamic Azad University aren’t equal. According to results of above table, we can conclude that in the considered statistical community, independent variable does affect on dependent variable. Third hypothesis: Education level has an impact on entrepreneurship of students
H0: Average score license students cutting of entrepreneurship and average score of High diploma of entrepreneurship are equal. H1: Average score of license students cutting of entrepreneurship and average score of High diploma of entrepreneurship aren’t equal.
image
First test: Variance equality test, which is the value of F is equal with 0.584 and the amount of sig is equal with 0.445. Thus, according to achieved significant level, variance equality hypothesis can’t be rejected. It means that due to the information of this sample, entrepreneurship variance among high diploma and license students are equal. The second test: The second test, is the test of average comparison of entrepreneurship of cutting high diploma and license students of Tabriz Islamic Azad University that with the assumption of equality of variances, the value of sig. is equal with 0.033 that is minor than 0.05. Thus, according to obtained significance level, H0 can be rejected. We can be said that the entrepreneurship average of cutting high diploma and license students of Tabriz Islamic Azad University aren’t equal. According to results of above table, we can conclude that in the considered statistical community, independent variable does affect on dependent variable.
Fourth hypothesis: Age has an impact on entrepreneurship of students
H0: Average score of 19 years students of entrepreneurship and average score of 20 years students of entrepreneurship are equal.
H1: Average score of 19 years students of entrepreneurship and average score of 20 years students of entrepreneurship aren’t equal.
image
First test: Variance equality test, which is the value of F is equal with 1.103 and the amount of sig. equals to 0.294. Thus, according to achieved significant level, variance equality hypothesis can’t be rejected. It means that due to the information of this sample, entrepreneurship variance among 19 and 20 years students are equal. The second test, is the test of average comparison of entrepreneurship of 19 and 20 years students of Tabriz Islamic Azad University that with the assumption of equality of variances, the value of sig. is equal with 0.558 that is more than 0.05. Thus, according to obtained significance level, H0 can’t be rejected. We can be said that the entrepreneurship average of male and female students of Tabriz Islamic Azad University are equal. According to results of above table, we can conclude that in the considered statistical community, independent variable does not affect on dependent variable.

CONCLUSION

According to concluded results in this study, we were observed that in the investigated society, among other variables such as type of department, gender, education level and age that were considered in this research, the only variables that have impact on entrepreneurship of students are department type and level of education. Entrepreneurship has educated and learned through experience and transmission of it. But it is not easy to promote. Most entrepreneurs’ determined characteristics are tangible characteristics such as use of new opportunities, trust, creating networks and doing projects and they cannot be easily understand and become recommendations and instructions. Nowadays many of young people are studying in universities and scientific centers and they hope after graduation immediately enter to the job market. The term of labor market is very sensitive phrase and perception of young people from this word is considered one of the critical factors that affecting the future of the country. Unfortunately, today job market in the minds of many young people and students of country is considered as a series of predetermined posts and in other words, can be interpreted as a series of pre-made chairs that are waiting in the society. But entrepreneurial perspective to employment phenomenon would largely reduce the problems of young people that they are confronting in the future. Such an approach can use to cover the necessary cultural changes for the development of entrepreneurship in the country. If we want to have comprehensive discussion of entrepreneurship in society, universities and educational systems of our country should be directed to this side that individuals of society are familiar with importance of demographic and psychological characteristics of the entrepreneurial process and be used for the institutionalization of entrepreneurship in the country.

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