Chapter 2

REVIEW OF RELATED LITERATURE

This chapter includes the ideas, finished thesis, generalization or conclusions,

methodologies and others. Those that were included in this chapter helps in

familiarizing information that are relevant and similar to the present study.

Related Literature

Entrepreneurship Education

Entrepreneurship education can be defined as an organized process of

developing entrepreneurial traits and values in an individual; enhancing a culture of

creativity and innovativeness in seeking, developing, exploring, and making use of

opportunities, imbibing managerial skills, inculcating a systematic management to

address the needs to effectively and efficiently run the business, and achieve

profitability, growth, and sustainability (Shailendra Vyakarnan in World Economic

Forum, 2009). The process can be a formal course offered by colleges and universities,

or informal training programs offered by other agencies, whose aim is to promote

entrepreneurship education. The formal process, through the granting of degrees, was

brought about by the need of the market to understand entrepreneurship, and hopefully

become an entrepreneur after the formal training program. Entrepreneurial intention,

which is not supported by the traditional business degree programs that aims to make

graduates employed, is the major driver in offering entrepreneurship education.

Entrepreneurship education aims to develop in an individual the innovative spirit of an

entrepreneur; namely, a creative attitude that calculates risk, is adept with their

environment, sees values of business propositions for themselves and the society at

large, while seeking and making good use of opportunities.

The Philippine education system has seen radical changes as the Commission

on Higher Education (CHED) implemented the K to 12 program in 2016. To better equip

the Filipino students with the needed business skills and competencies, curricular

offerings were revised, integrating several subjects to different programs, aimed at

developing the students’ entrepreneurial mind and attributes of entrepreneurship. The

Department of Education implemented the K to 12 program in 2016. The 10-year basic

education curriculum was redesigned to include an additional two-year senior high

program intended to teach and train the students technical-vocational skills which will

make them readily employable after they finish their 12th grade (Cruz, 2014).

Gender and Entrepreneurship

In the context of the Philippines where Filipinos are relatively entrepreneurial in

nature, it was found that regardless of gender, entrepreneurship is seen more as a

necessity entrepreneurship than otherwise (Velasco, 2013). On the propensity of an

individual to become entrepreneurs, studies have shown that gender is an inevitable

factor. Studies suggest that the motives and decisions that drive female

entrepreneurship are because of obligation, since the limited supply and market access

opportunities for paid employment, than by vocation. Even if females tend to have high
scores on knowledge about entrepreneurship, their willingness to start their own tend to

be lower than that of their male counterpart, (Suárez-Ortega & Gálvez-García, 2017;

Velasco, et al., 2016). Further, even if role-based theories emphasize that gender

differences in behavior should be expected to change along with other social changes

(Bula, 2012) and despite the rapid increase in women's business ownership with a

growth rate greater than that of private firms as a whole (IFC, 2006), still

entrepreneurship is considered an activity associated with men because they still

constitute the majority (about two-thirds) of business owners worldwide (Bird and Sapp,

2002).

Entrepreneurial Inclinations

Wickham (2004) stated that entrepreneurs require two sorts of skills to run a

business venture effectively general management business skills and people

management skills. General management business skills include strategy skills,

planning skills, marketing skills, financial skills, project management skills, and time

management skills. People management skills include skills in leadership, motivation,

delegation, communication, and negotiation. Hisrich et al. (2005) divided the skills

needed by entrepreneurs into three main areas, technical skills, business management

skills, and personal entrepreneurial skills. Technical skills are “know-hows” such as oral

and written communication, technical know-how, ability to organize, network building,

and coaching. Business management skills involve planning, goal setting, decision
making, control, negotiation, and skills in the basic functional areas such as marketing

and finance.

Those are the skills needed to start, develop, and manage a business venture.

Personal entrepreneurial skills refer to those skills that differentiate entrepreneurs from

managers. They include inner control, risk taking, innovativeness, persistence,

leadership and change orientation. Galloway, Anderson, Brown, and Wilson (2005)

examined students’ perceptions of the skills required for entrepreneurship. The skills

students perceived to be important for starting a business or becoming self-employed

are communication, organization, initiative, problem solving, creativity, finance, people

management, negotiation, confidence, team-working, and perseverance.

Entrepreneurial Intentions

Entrepreneurial intentions stated by Thompson (2009) as “self-acknowledged

conviction by a person that they intend to set up a new business venture and

consciously plan to do so at some point in the future”. Choo and Wong (2009) described

entrepreneurial intentions as the exploration and assessment of information which is

beneficial to achieve the objective of business creation. The focus of entrepreneurship

is to have entrepreneurial intentions before starting the actual business because it

determines the starting point of a new business creation. A personal commitment which

has an important impact on shaping new ventures comes from entrepreneurial

intentions (Choo and Wong, 2009). The literature on entrepreneurial intentions specifies

the significance of self-employment intentions (Fridoline, 2009). Accordingly, identifying

these intentions will allow the scholars to explore the dynamics of business venture

creation process (Weerakoon and Gunatissa, 2014).

Pihie (2009) indicated that the students had moderate score on all constructs

related to entrepreneurial intention and entrepreneurial self-efficacy in the aspects of

management, financial and marketing. Moreover, students with positive entrepreneurial

aspiration scored higher in entrepreneurship intention and self-efficacy which is

significantly different from those who do not have positive aspiration. The students also

scored moderately on attitudes towards entrepreneurial career and perceived

behavioral control. The findings also indicate that those who perceived entrepreneurship

need to be learnt at university have significantly higher mean score on attitudes towards

entrepreneurial career as well as perceived behavioral control. The study of

Saravanakumar, et. al. (2012), suggests that the students had lower performance

scores on all of the measures, suggesting a somewhat lower propensity to be

entrepreneurial. The findings indicate the challenge facing in management education if

they are to create entrepreneurs as, increasingly, appears to be required.

Similar to this line of research, Wang, et. al. (2011) proposes that there is

entrepreneurial intention among international students, and that a large portion of these

students have rather strong entrepreneurial intention. This study may bring more

awareness for educators so they can help nurture the valuable spirit among this special

group and thus possibly bring out more entrepreneurs. In addition, this study has shown

that perceived feasibility is a stronger predictor of entrepreneurial intention than

personal desirability; therefore, university educators may want to enhance perceived

feasibility if they intend to increase the level of entrepreneurial intention.

 Kristiansen and Indarti (2004) identified the factors of entrepreneurial intentions

in Norwegian and Indonesian students. They found high level of entrepreneurial

intentions among Indonesian students which was due to economic challenges in

Indonesia. While low level was found among Norwegian students, possibly due to high

economic remunerations to employees. In addition, high level of entrepreneurial

intentions existed in American students’ compared to French students. The significant

difference was due to already established entrepreneurial culture and the positive

attitude towards new venture creation (Boissin et al., 2009).