THE ROLE OF LOCUST OF CONTROL ON THE START-UP INTENTION OF HIGHER INSTITUTION STUDENTS IN NIGERIA
2.1 UNDERSTANDING OF ENTREPRENEURIAL INTENTION
The previous research has investigated the various economic and psychological motivations of individuals to seek self-employment (Banmol, 1990, Eisenhover, 1995, Douglas and Shepherd, 2000). The motivation to engage in entrepreneurial behaviour has generally been investigated in terms of entrepreneurial intentions, with intention conceptualized as being a function of beliefs that in turn can lead to subsequent behaviour. In general, the greater the intention, the stronger is the motivation to engage in entrepreneurial behaviour (Ajzen 1991). Numbers of models have been proposed to explain the relationship between an individual’s personal characteristics and subsequent intention (for example, Shapero 1982, Ajzen 1987, Bird, 1988). Ajzen’s theory of planned behaviour (1991) suggests three keys attitude that predict intentions, these being attitudes towards the act, social norms and perceived behavioural control. Krueger and Brazeal (1994) suggest that the perceived behavioural control construct overlaps with the self-efficacy construct of Bandura (1986) and outlined a model of potential entrepreneurship that incorporated entrepreneurial intentions, Basing their model on Ajzen’s theory of planned behaviour and Shapero's model’s of the entrepreneurial event (Shapero, 1982). Their model included the potential for both enterprise development and corporate ventures and was compressed of three constructs beings :
Perceived desirability Perceived feasibility Propensity to act.
The perceived desirability was seen to be related to intrinsic rewards associated with entrepreneurship and includes the attitude towards the act and social norms. (Kreuger and Brazeal (1994). Perceived desirability is related to the motivational factors to engage in entrepreneurial behaviour and can therefore be considered a function of entrepreneurial attitude held by the individuals. Perceived feasibility on the other hands, is related to individual perceptions of their ability to implement the required behaviour Krueger (1993), cites persuasive evidence, that perceived credibility, perceived desirability and prosperity to act explain over half the variance in intentions towards entrepreneurship, with feasibility perceptions being the most influential’s. An alternative model of entrepreneurial intentions was proposed by Bird (1988). Based on established theory in cognitive psychology, the model suggest that an individuals entrepreneurial intentions is based on a combination of personal contextual factors, personal factors includes prior experience as an entrepreneur, personal characteristics and abilities while contextual factors consists of social, political and economic variables. An individual’s intention is further structured by both rational and analytic thinking (goal-directed behaviour and intuitive or holistic thinking (vision). Boyd and Vozikis (1994) expand on this model to incorporate the perceived behavioural control aspect of Ajzen’s theory of planned behaviour through the inclusion of the concept of self-efficacy. Perceived behavioural control describes the perceived ease or difficulty of performing behaviour and as pointed out by Ajzen’s (1991) is closely related to the concept of self-efficacy. They also proposed self-efficacy as an important explanatory variable in determining the strength entrepreneurial intentions and the likelihood that those intentions will result in entrepreneurial actions. The reversed model of Boyd and Vozikis (1994) based on Bird’s (1998) model suggest that intentions are a function of self efficacy in addition to attitudes and perceptions regarding the creation of a new venture through rational and intuitive thought processes.2.2 LOCUS OF CONTROL AND ENTREPRENEURIAL INTENTION Locus of control is the degree in which the individual believes that the reinforcements are dependent on his behaviour. This individual believes that the accomplishment of goal or purpose depends on his own ability and actions rather than luck or other people’s efforts (Kuip and overhaul, 2003). The empirical evidence shows that small business entrepreneurs are more oriented at the internal level than population in general (Ket Vries, 1977, Begley and Boyd, 1987, Beverland and Lockshin 2001). Brockhaus (1980) longitudinal study suggests the existence of a positive correlation between orientation to locus of control and entrepreneurial success. In another study Brockhaus and Horwitz (1986) reinforce that locus of control could distinguish entrepreneurs who are successful from those who are unsuccessful. Robinson et al (1991) state that internal control leads to a positive entrepreneurial attitude and most students who receive entrepreneurial formation may develop a higher level of control and self-efficiency.
2.3 RISK TAKING AND ENTREPRENEURIAL INTENTIONS This variable refers to risk acceptance when entering an activity, that is, it is related to the probability of an activity having less than 100% success (Kuip and Verheul, 2003). Even if risk-taking is often mentioned as a determinant of entrepreneurial intention, several empirical studies suggest that small business entrepreneurs do not have a positive attitude towards risk and they do not consider themselves as risk-takers, (Baron, 1998) nor do they seen to differ from other groups, in more objectives test on risk-taking (Brockhaus), (1980). according to Mc Clelland (1961) and Bellu (1988) Entrepreneurs seem slightly less attracted to take risks in situations known as pure shift games. Entrepreneur risk-taking may be specific or monetary. Davidsson (1989) asserts that if the aspirations are sufficient accomplished. Entrepreneurs may simply stop taking risks. However, risk-taking and acceptance of uncertainty is something that can be slowly modified if desired. Thus, it is still not clear in literature if there is a relationship between risk-taking propensity and Entrepreneurial intention neither the nature of such relationship.
2.4 SELF-CONFIDENCE AND ENTREPRENEURIAL INTENTION The high level of self confidence has been suggested by many studies as an entrepreneur’s standard characteristic. In reality, this characteristic emerges constantly in a compilation of empirical studies states by Davidsson (1989). Ho and Kol (1992) refers that self confidence is an entrepreneurial characteristic and that it is relate to other psychological characteristics, such as Locus of control, propensity to take risk and Tolerance of ambiguity. Robinson et al, (1991) have found entrepreneur to have a higher degree to self-confidence relative to non-entrepreneurs.