448 Int. J. Business Innovation and Research, Vol. 28, No.

4, 2022

Entrepreneurship motivation in Pakistani context

from the perspective of university students:
testing ethnic, minority and entrepreneurship theory

Syed Alamdar Ali Shah,

Raditya Sukmana and Bayu Arie Fianto*
Department of Islamic Economics,
Faculty of Economics and Business,
Universitas Airlangga,
Surabaya, Indonesia
Email: [email protected]
Email: [email protected]
Email: [email protected]
*Corresponding author

Abstract: Objective of this research is to explore factors that contribute

towards entrepreneurial motivation in university students of Pakistan testing
ethnic, minority and entrepreneurship theory. Data of 533 respondents from
HEC recognised universities in Pakistan has been collected and analysed for
the purpose of our research. The results suggest that there exist ‘psychological’
and ‘economic’ and factors from family profile that influence the
entrepreneurial motivation of university students in Punjab province of
Pakistan confirming ethnic, minority and entrepreneurship theory. Over and
above, there also that exits a group of psychological factors that partially
mediate in our model. The theory needs to be tested in different industries and
economic settings for further validations. The research has huge practical
implication as it identifies ‘psychological’ and ‘economic’ factors that need to
be focused to increase entrepreneurship culture in Pakistan. If focused, it will
go a long way in dealing with the problems of unemployment by setting up new
business enterprises.

Keywords: entrepreneurship; entrepreneurial motivation; mediation model;

psychological factors; economic factors; ethnic; minority and entrepreneurship
theory.

Reference to this paper should be made as follows: Shah, S.A.A., Sukmana, R.

and Fianto, B.A. (2022) ‘Entrepreneurship motivation in Pakistani context from
the perspective of university students: testing ethnic, minority and
entrepreneurship theory’, Int. J. Business Innovation and Research, Vol. 28,
No. 4, pp.448–477.

Biographical notes: Syed Alamdar Ali Shah is a PhD candidate in Islamic

Economics at Universitas Airlangga Indonesia. He has professional banking
experience of over 14 years along with academic experience of more than five
years.

Raditya Sukmana is currently the Head of Department of Islamic Economics

Universitas Airlangga Indonesia. He secured his Master’s from Georgia State
University USA, and PhD from International Islamic University Malaysia.

Copyright © 2022 Inderscience Enterprises Ltd.

 Entrepreneurship motivation in Pakistani context 449

Bayu Arie Fianto is currently academic and research staff with Vice Dean
Universitas Airlangga Indonesia. He secured his Master’s from International
Islamic University Malaysia and PhD from Lincoln University New Zealand.

1 Introduction

Entrepreneurship is a dynamic activity in any society that plays a vital role for the
economy (Neck and Greene, 2011). It develops economic cycle in such a way that almost
all developing countries benefit from it (Mohar et al., 2007; Bos-Nehles et al., 2017). The
higher education institutions being part of economic cycle are now focusing more on
developing entrepreneurial skills that is also causing urge in their students to become
entrepreneurs (Edmondson and McManus, 2007; Torres Velásquez et al., 2018; Carvalho
et al., 2019). It is so because entrepreneurship opens the minds of the students to become
creative and successful (Thompson, 2009; Czuchry and Czuchry, 2009; Beliaeva et al.,
2017).
In a country like Pakistan, entrepreneurship can yield substantial results. This is
because of numerous reasons that need to be explored from the perspective of the
government and the private sector. As economy is a diversified subject; therefore, dealing
with it requires everyone to focus on entrepreneurship along with other factors.
The primary objective of this study is to deep dive into the perception of Pakistani
students about their entrepreneurship motivations. Analysing the behavioural attributes
helps focusing on the perception of an individual about a specific person (Cope, 2015;
Núñez et al., 2018; Henao-García et al., 2020). This builds a need to initiate such a
research which can help clarify mixed information about conflicting outcomes in real
scenarios (Colette, 2015; Beliaeva et al., 2017). This will be achieved by analysing how
various factors impact forthcoming graduates about their ambitions to decide about
setting up their businesses or joining a company.
People of Pakistan are more inclined to entrepreneurship (Bux et al., 2016; Raza
et al., 2018a). This leads them to develop businesses which are mostly small and medium
scale enterprises (SMEs). SMEs constitute nearly 90% of the firms operating in Pakistani
private sector employing about 80% of the masses not working in agricultural sector and
also contributing 40% in national GDP. Haque (2007) regards small sector development
as the evidence of entrepreneurial skills in the people of Pakistan. SMEs are mostly
started by the individuals themselves or with the help from their families and friends
(Bux et al., 2016).
The decision to start an enterprise is based on a number of factors. These range from
evaluating opportunities existing in the markets to examining self-abilities and potential
(Chu et al., 2011). Apart from this, there also exist factors that change from country to
country and society to society (Bux et al., 2016). These factors include cultural, social,
political and economic (Chu et al., 2011; Amentie and Negash, 2014; Stieg et al., 2017)
that are actually market environment that allure new and existing businesses to initiate
and expand.
This research study is actually based on a number of reasons. Firstly, despite a
number of initiatives taken by regulatory authorities to support businesses viz.,
establishing export processing zones, small and medium enterprises development
authorities, specialised banks for SMEs, micro finance institutions, subsidised financing
450 S.A.A. Shah et al.

schemes to support exporters, incentives for locally manufactured machinery, etc.,

Pakistan is lagging behind in startups of new businesses with nearly half of the
performance compared with similar economies (Bux et al., 2016). A reason for such
underperformance indicated by Bari et al. (2005) is below potential performance. Ullah
et al. (2011) points that in Pakistan about 95% of the SME’s fail in early stages of their
initiation. Secondly, young graduates are scared to take business risks and rather opt for a
stable job. Thirdly, every country has specific economic, social, political and cultural
scenario and Pakistan is not an exception. Fourthly, the multi-facet literature examining
entrepreneurship in Pakistan is almost negligible. This is because most of such research
in developed countries is due to research support from higher institutions.
Keeping in view the need of entrepreneurship research this study has the objective to
explore the factors which effect entrepreneurial motivations in university students in
Pakistan using ethnic, minority and entrepreneurship theory of Dana et al. (2019).
This main objective shall be explored with the help of exploring the following sub
objectives:
• To examine psychological factors that affects the entrepreneurial motivations of
university students in Pakistan.
• To examine economic factors those affect the entrepreneurial motivations of
university students in Pakistan.
• To examine family profile of a student that has any affect on his entrepreneurial
motivations.

2 Review of literature

In order to achieve the objectives, review of literature has been conducted in two
perspectives, i.e., in general followed by specific relating issues to entrepreneurial
motivations of students in Pakistan.

2.1 Theories of entrepreneurship

The concept of entrepreneurship is based on variety of theories. The social learning
theory (Bandura, 1977) states that the belief of a person depends on his capability to
perform given acts. The Social cognitive theory which describes that human behaviour is
the product of interpersonal and intrapersonal behaviour of individual in various
environments (Bandura, 1986). Bandura (1997) further narrates that self-efficacy is
stemmed into social cognitive theory. Theory of planned behaviour (TPB) which states
that behavioural intent is the pivotal factor in planned behaviour (Katz and Gartner, 1988;
Ajzen, 1991). The cognitive or cognitive approach theory which examines development
of actions and competencies of the individuals (Krueger et al., 2000). Institutional theory
that provides explanation about institutions creating boundaries for human interactions
therefore it can better explain human behaviour (North, 1990; Garud et al., 2007;
De Clercq et al., 2013; Aftab et al., 2017). Ethnic, minority and entrepreneurship theory
which states the relationship between family, community and ethnicity (Dana et al.,
2019). However, based on objectives of this research no focus on any one single theory
 Entrepreneurship motivation in Pakistani context 451

has been made rather the model has been based on the TPB, and ethnic, minority and
entrepreneurship theory.
Keeping in view the objective of our research we base our research on the theoretical
foundations of Ethnic, minority and entreprenuership theory of Dana et al. (2019).
However, to support our hypotheses and scope of work we shall also utilise the social
cognitive theory of Bandura (1986). This is because our objective is to examine how
entrepreneurship motivations of the Pakistani students are effected from family profile
and from the environment where they function.
Doing so will add to novelty of research in such a way that ethnic, minority and
entrepreneurship theory of Dana et al. (2019) requires to be requires to be examined and
tested in various geographical locations, sectors and industries.

2.1.1 General review of literature on entrepreneurial motivations:

Basu and Virick (2008) find positive impact of education and prior experience on
entrepreneurial motivations of students. Their findings highlight that education and prior
experience does have a positive and significant impact on entrepreneurial behaviour.
Obembe et al. (2014) find student point of view about entrepreneurial skills focusing on
capital, university education, survival and familiarity. Hassan et al. (2018) and Núñez
et al. (2018) identify teaching mechanisms focusing proactive components, critical
thinking and basic reasoning in students. They recommend a new mechanism of
entrepreneurial creative card (EC-Card) approach for class room learning to inculcate
entrepreneurial inclination amongst students. Mat et al. (2015) explore factors that
contribute in entrepreneurial innovation skills which are locus of control, sense of
achievement and subjective norms. Kadir et al. (2012) find positive correlations between
learning help and entrepreneurial desires. Van Gelderen et al. (2008) use TPB to examine
entrepreneurial motivations and find entrepreneurial sharpness and its significance of
money related matters to be the most important ones.
Schlaegel and Koeing (2014) and Zucchella et al. (2019) argue that raising
expectations of entrepreneurs also raise inclination of masses to initiate a business
enterprise. Bae et al. (2014) examine effect of enterprise education on entrepreneurial
expectations and find blended outcomes. They additionally dissect mediators, for
example, the qualities of business enterprise training, understudies’ disparities, and social
qualities. Muhammad et al. (2015) find strong linkages between entrepreneurial goals and
advancements of businesses which is important for financial development and raising of
economies. They observe scholastic exchanges and approach activities becoming
indispensable part of entrepreneurial improvement in general public.
Rasli et al. (2013) demonstrate that work understanding, vicarious experience, general
disposition and picture of enterprise as important determinants of entrepreneurial
conviction and entrepreneurial aims. Their examination suggests that conviction is the
most grounded variable that has coordinated impact on entrepreneurial aim. Adekiya and
Ibrahim (2016) analyse the impact of business preparing program and social introduction
on the expectation of understudies to take part in entrepreneurial practices. The outcome
shows that apparent suitability, viability and entrepreneurial preparing, except for
apparent consistence have a positive and critical impact on entrepreneurial expectation.
Farhangmehr et al. (2016) uncovered that business enterprise skills are an indicator of
business inspiration; however, learning base is not. Furthermore, enterprise training does
452 S.A.A. Shah et al.

not enhance the inspiration of college understudies to wind up business visionaries

(Tsukanova, 2019; Bagheri and Akbari, 2019).
Wang and Wong (2004) find that dreams of many students lose momentum due to
lack of preparation by the academic institutions. Internal factors like willingness to take
risks need for independence and locus of control are studied by Franke and Lüthje
(2004). They also investigate some external factors like market, education, training,
network, society and inspiration that are likely to affect student intention to be an
entrepreneur. This is supported by Noor-Hasnah (2014) who analyse factors influencing
the behaviour towards entrepreneurship in the higher education students in UniKL,
Malaysian Spanish Institute. Multiple regression analysis shows that all the independent
variables except the desirability to self-employment and government role have the
significant relationship with the attitude towards entrepreneurship.
Lüthje and Franke (2003) review 512 understudies at the MIT School of Engineering
extensively They identify that characteristics strongly affect the state of mind towards
independent work. The entrepreneurial mentality is firmly connected with the aim to
begin another wander. The studies consequently demonstrate a circuitous impact on
goals. Besides, the entrepreneurial expectation is straight forwardly influenced by seen
obstructions and bolster factors in the business related setting (Potì et al., 2012; Crespo
and Aurélio, 2020). The discoveries have vital ramifications for strategy producers inside
and outside colleges.
Franke and Lüthje (2004) acknowledge that the instructive arrangement of colleges
needs to give a scholarly situation that may fill in as an impetus for high-innovation new
companies. Up to this point, cultivating advancements and new item improvement
through business has not been viewed as an essential assignment of colleges (Kalhor
et al., 2019). Be that as it may, point of view have changed in this regard, and there have
been various endeavours to upgrade the part of college graduates as originators of
creative organisations.
Stieg et al. (2017) and Kumari et al. (2018) state that the environment, social
networking and culture create a close relationship between attitudes, competencies,
knowledge base and behaviour towards entrepreneurship. Lüthje (2004) examines that
university plays a major role to create an impact on students who want to become an
entrepreneur. Therefore, an individual with the positive actions towards the creation of
revenues may be more positive to become a self-employed (Solesvik, 2013; Garba et al.,
2014; Beliaeva et al., 2017). In this context, the entrepreneurship also creates a link
between motivation with entrepreneurial attitudes, motivation with entrepreneurial
competencies, and motivation with knowledge base. There are many factors that
influence behaviour that indicate how hard a person is willingness to try to do a business.
Yurtkoru et al. (2014) explore the effect of relevant factors on entrepreneurial goal of
college understudies using TPB. They indicate, individual disposition and control
anticipation as the entrepreneurial expectation.
H1 Intention of the student to become his own boss positively effects entrepreneurial
motivation of the university students.
H2 Intention of the student for participation in decision process positively effects
entrepreneurial motivation of the university students.
H3 Intention of the student about securing family future positively effects
entrepreneurial motivation of the university students.
 Entrepreneurship motivation in Pakistani context 453

H4 Intention of the student power to make decision positively effects entrepreneurial

motivation of the university students.
H5 Intention of the student about personal success positively effects entrepreneurial
motivation of the university students.
H6 Intention of the student about increasing personal income positively effects
entrepreneurial motivation of the university students.
H7 Intention of the student about personal economic wealth positively effects
entrepreneurial motivation of the university students.
H8 Intention of the student about comfortable life positively effects entrepreneurial
motivation of the university students.
H9 Intention of the student about personal fulfilment positively effects entrepreneurial
motivation of the university students.
H10 Intention of the student about personalised profit making opportunities positively
effects entrepreneurial motivation of the university students.

2.1.2 Family structures in Pakistan

Pakistan is a resident place of different communities (Shahid et al., 2017). Communities
which are a product of culture (Brah, 1992) meaning thereby a group with a difference on
the basis of cultural practices (Young, 1997). Some researchers identify that pursuit of
academic success in Pakistanis is not for individual advancement but rather for moral
standing and well-being of the family (Seaman et al., 2016). Having said that gaining
education is also a mean of gaining social prestige (Dwyer et al., 2006). It has also been
observed that students develop social links that they expect to use professionally during
their education (Fukuzawa and LeTendre, 2000). Further, international studies that
compared education in Asians and Europeans also show that education in Pakistan is a
mean of getting occupational attainment more importantly than the job (Ballard, 1982;
Ainsworth-Darnell and Downey, 1998; Connor et al., 2004; Crozier et al., 2004; Mughal
et al., 2018). However, whatever may be intention of getting education, a non-educated
generation will always develop resentment and disillusion against education system
(Bourdieu, 1979).
A family is a dense social network (Bassani, 2003; Setuza, 2017), where next
generation receives values for success in societies (Fletcher, 1966). However, Pakistani
families have received little importance when it comes to analysing their value
inheritance structures particularly about entrepreneurial motivations and educational
attainment (Seaman et al., 2016; Abbas et al., 2019). Dwyer et al. (2006) identify five
rules of structure in a Pakistani family which are patrilocal residential, patrilineal descent,
patriarchal authority, extended and joint families and respect focusing. Pakistani family
generally lives as a consanguineal group (Ballard, 1982) living under one roof under the
supremacy of father and household role of the mother (Bassani, 2003). This close
cohesion between families is one of the reasons that the influence from families on future
motivations of children requires a study which is still a topic of huge debate (Seaman
et al., 2016). Further, it has almost become an established fact that there exits positive
relationship between aspirations of parents and academic achievement of their children
(Berdie, 1959; Finlayson, 1971; Fotheringham and Creal, 1980; Cherian, 1992;
454 S.A.A. Shah et al.

Brooks-Gunn et al., 1993; Coleman and Salt, 1996; Seginer and Vermulst, 2002), most
importantly from mothers (Eccles, 1983; Eccles et al., 1982; Stevenson and Newman,
1986; Hill and Duncan, 1987; Raza et al., 2018b). It is therefore also important to analyse
the aspirations of children from the perspectives of fathers, mothers and senior members
of the family separately.

2.2 Family influence

2.2.1 Influence of parents on education of children
Parent’s influence is the most influential of all in education attainment of a person
(Eccles, 1983; Stevenson and Newman, 1986; Marjoribanks, 1992; Soomro and Honglin,
2018). However, such an influence has various dimension (Smith, 1970) that includes
provision of economic resources (Smith, 1970), a role model (Welsh et al., 2003) and
moral support for encouragement and enforcement of learning behaviour (Seaman et al.,
2016; Raza et al., 2018a). Influence from mother has significance at earlier levels of
education whereas influence from father is important for higher level of education
(Hauser, 1971; Hill and Duncan, 1987). This influence comes from defining and
modelling aspect (Bennett and Gist, 1964; Eccles et al., 1982; Kelly, 1952, 1989).
Modelling behaviour means influence of actions of the parents (Bandura et al., 2001)
whereas defining behaviour is the influence of words and expectations of the parents
(Seaman et al., 2016) In this regard, Coleman and Salt (1996) report that defining
behaviour has more profound effects whereas the effect of modelling behaviour varies
with gender and education level of the student. Having analysed difference in impact of
modelling and defining behaviour, Socialisation theory states that working status of the
parents has no relevance in transmission of defining model and defining behaviour
(Duncan et al., 1972; Eccles et al., 1982).
H12 Family education has association with entrepreneurial motivations of university
students.
H14 Father education has association with entrepreneurial motivations of university
students.
H16 Mother education has association with entrepreneurial motivations of university
students.
H20 Business graduates in family have association with entrepreneurial motivations of
university student.

2.2.2 Influence of the parents on entrepreneurial motivations

Roe (1956) first identified influence of family on entrepreneurial motivations of children
(Roe, 1956) that was followed by Kohn (1969, 1977). However, no research so far has
found evidence that aspiring entrepreneurs should have entrepreneur parents (Stephenson,
1957). Yet, there exists evidence that entrepreneur parents mostly have children aspiring
to be entrepreneurs (Stephenson, 1957; Matthews and Moser, 1995; Wilkinson, 2004;
Barba-Sánchez and Atienza-Sahuquillo, 2018). There also exists strong literature in
support of the argument that occupational outcomes are affected by family influences
(Collin and Young, 1986; Cherry and Gear, 1987; Arnold et al., 1988; Siann and Knox,
 Entrepreneurship motivation in Pakistani context 455

1992). The evidence of family support in Muslim families is even higher (Stopes-Roe and
Cochrane, 1984; Brah and Minhas, 1985; Jodl et al., 2001) with almost negligible effect
of gender of the child or the parent (Siann and Khalid, 1984; Verma and Ashworth, 1986;
Ali et al., 2019). However, such influence is more evident in case of SMEs (Matthews
and Moser, 1995).
Entrepreneurship research in Pakistan shows that there are trends to follow only a
certain types of businesses such as petrol pumps, shopping malls and super markets
(Fuller and Loogma, 2009; Seaman et al., 2016; Khalid, 2017). Seaman et al. (2016)
explain how nexus of family business and community affects the process which
influences family networks in succession of businesses. This process is in fact a relation
with two extremes of culture and economy, where cultural aspect is a subjective
phenomenon and economic aspect takes the key position (Seaman et al., 2016). In this
regard education also plays a major role. An education that can provide the urge in young
graduates to be entrepreneur (Seaman et al., 2016).
To analyse the dimensions of entrepreneurial motivations its relationship with
institutional embeddedness and entrepreneurial behaviour is very important (Welter and
Smallbone 2011). In order to achieve the objectives, a research focusing relationship
between human behaviour, entrepreneurial behaviour and institutional theory is the need
of time (Seaman et al., 2016). This shall be achieved by further analysing socio-structural
and educational factors that affect entrepreneurial motivations of the student.
H13 Family occupation has association with entrepreneurial motivations of university
students.
H15 Father occupation has association with entrepreneurial motivations of university
students.
H17 Mother occupation has association with entrepreneurial motivations of university
students.
H18 Having a business person in family has association with entrepreneurial
motivations of university students
H19 Family business history has association with entrepreneurial motivations of
university students.
H21 Work motivation from family has association with entrepreneurial motivations of
university student.

2.2.3 Institutional theory perspective of entrepreneurial motivations

Institutional theory explains that institutions create boundaries for human interactions
therefore it can better explain human behaviour (North, 1990; Garud et al., 2007;
De Clercq et al., 2013; Aftab et al., 2017). Norman (1990) is of the opinion that there are
two types of institutions, formal and informal. Formal institutions, which also means
regulative institutions (Scott, 2001) include tangible systems such as promulgated by the
state, e.g., constitutional laws. Informal institutions on the other hand means norms of
culture, behaviour and conventions created in the society, which can further be divided
into normative and cognitive categories (Scott, 2001). Since these formal and informal
institutions also have large impact on behaviour of the people living in specific societies
therefore their impact on entrepreneurial intentions is also important (Shane and
456 S.A.A. Shah et al.

Venkataraman, 2000; Bruton et al., 2010; Seaman et al., 2016). Having reviewed
literature on entrepreneurship two distinct variables that stem representing
entrepreneurial motivations under institutional theory are educational and socio-structural
which develop the psychology of the students (Indarti et al., 2010; Bruton et al., 2010;
Hussain et al., 2014; Seaman et al., 2016; Samo and Huda, 2019).

2.2.4 Personality and entrepreneurial motivations

Humans as an entrepreneur always urge for higher achievements (Indarti et al., 2010).
Researches focusing entrepreneurial motivations in Pakistan have also found significant
positive relationship between senses of achievement, which include belief in making right
decisions, and entrepreneurial motivations (Hussain et al., 2014; Saeed et al., 2014; Aftab
et al., 2017). It also follows that achievements in academics may have impact on
entrepreneurial motivations (Bux et al., 2016). Along with achievement however, family
business (Ahmed et al., 2010) and years spent on study (Mushtaq et al., 2011) are also
found to have positive relationship with entrepreneurial motivations.

2.2.5 Education and entrepreneurial motivations

Keat et al. (2011) contend that learning entrepreneurship motivates entrepreneurship.
Similar are the findings in Pakistan (Saeed et al., 2014, 2015). There also exist certain
course methods that are beneficial in this regard for instance case studies which help in
understanding how businesses are developed in difficult times by successful
businessmen, and how collective decisions are made (Solomon et al., 2002; Shepherd,
2004; Engle et al., 2010), assignments that enhance creativity self-belief, workshops,
projects (Fayolle et al., 2006; Gatchalian, 2010; Pruthi and Wright, 2019), guest speakers
(Jones and Iredale, 2010; Shepherd, 2004), and study visits (Klatt, 1988). Educational
context also has another perspective, i.e., the academic faculty. Krueger and Brazeal
(1994) and Gatchalian (2010) regard professional and business owing faculty also an
important factor for inculcating entrepreneurial motivations in students.

2.2.6 Entrepreneurial motivation in socio-structural context

Social norms also play their role in determining entrepreneurial motivations in various
societies (Krueger et al., 2000; Li, 2007; Linan and Chen, 2009; Engle et al., 2011;
Anjum et al., 2018). Examining the role of social context on entrepreneurial motivations
in Pakistan, Aslam et al. (2012) find that students exhibit more motivation for becoming
entrepreneurs after their families show their consent to becomes responsible for their
families. The researchers have also found that entrepreneurship has positive relationship
with income and wealth level (Parker and Robson, 2004; Tanveer et al., 2013). Although
some researches indicate inverse relationship in this regard as well for instance (Griffiths
et al., 2009; Linan et al., 2013) while a few find no significant relationship (Engle et al.,
2011). In the case of Pakistan, however, poor economic environment has been considered
as one of the primary reasons for start of individual ventures (Tanveer et al., 2013; Naeiji
and Siadat, 2019).
Having analysed the literature it can be argued that entrepreneurial motivation is a
dynamic phenomenon that changes from culture to culture depending on many other
factors as well as was also observed by Welter and Smallbone (2011). Accounting for
 Entrepreneurship motivation in Pakistani context 457

more than one culture in one study definitely involves more complex dimensions.
Therefore, for the purpose of this research, we focus our research on the students
pursuing their studies in the province of Punjab on the side of Pakistan. This province is
important because more than 50% of GDP and population of Pakistan relate to this
province.
The review of literature leads to the following conceptual framework for the research.

Figure 1 Mediation model of entrepreneurial motivations

EM11: Me as EM13: Participation in EM14: Securing
Family education
my boss decision process family future
EM8: Personal Family occupation
income
Father education
EM12: Power to
make decisions Father occupation

Mother education
EM1: Personal
success Mother occupation
EM6: Personal profit Entrepreneurial
EM2: Personal opportunities motivations Business person in
fulfillment family

Family business
EM5: Personal
history
economic wealth
Business graduates
EM7: Comfortable in family
life
Work motivation
from family

The hypotheses to test various relations as established in conceptual framework are

hereunder:
Besides we also evaluate the following mediation for the purpose of this research:
H11 Power to make decisions of the student fully mediates the relationship between
independent variables and entrepreneurial motivation amongst university students
of Pakistan.
We further make the following hypotheses analyses in order to establish the influence of
family profile on entrepreneurial motivations.

3 Methodology

Keeping in view the nature of research problem and objectives quantitative approach has
been used (Ting et al., 2020). After pre-testing and re-designing, final survey was
conduct from University Students of Pakistan using closed-ended questionnaires. Out of
700 questionnaires distributed 533 responded. The response rate is therefore 76.14%.
Respondents were selected on the basis of convenience sampling method, a type of
non-random sampling technique. KMO and Bartlett’s test, communalities and total
variance explained has been computed using principal component analysis with varimax
rotation technique to check sampling adequacy. In order to check internal consistency of
data Cronbach’s alpha has been used. Correlations have been used to check relationship
between data and finally Crammer’s V has been applied test to analyses association
458 S.A.A. Shah et al.

amongst variables, however to test the mediation we have applied regression.

Crammer’s V is a test to analyses intercorrelation between two variables of discrete
nature having the order of 2 × 2 and above (Bergsma, 2013). The chi-square is mostly
suitable when the order of variables is 2 × 2. However, when the order of variables is
more than 2 × 2 Crammer’s test is recommended (Liebetrau, 1983). Also, chi-square has
a limitation that it suffers from increase in number of cells (Bartlett, 1937). The order of
variables in columns or rows do not matter. The results of Cramer’s V test ranges from
‘0’ no association to ‘1’ complete association (Bergsma, 2013).
The Cramer’s V test is computed using the following procedures:
2
 ni , n j 
 ni , j − 
χ2 = 
i, j
 n 
ni , n j
n

χ2 / n
Cramer ' s V =
min(k − 1, r − 1)

where
ni total number of observation of variable i
nj total number of observations of variable j
ni,j total number of observations of variable i, j
χ2 Chi-square
k number of columns
r number of rows.
Table 1 explains descriptive statistics of the participants of our study. The table shows
59% of our respondents were females, 71% were below 25years of age and 65% of our
respondents were undergraduates. 61% of our respondents declared that at least one
member of their family except her/him-selves have up to college level education and 39%
responded that at least one person from their family has up to university level education.
36% of the respondents responded that their fathers have up to university level education,
and 34% of the respondents that their mothers have up to university level education. 10%
and 28% of the respondents respectively responded that their fathers and mothers are
illiterate. 38% respondents responded that at least one person from their family is doing
business. 47% of the respondents responded that their fathers are doing business, 18% of
the respondents responded that their mothers are doing business and 56% of the
respondents responded that one of their family member is doing business. 60% of the
respondents responded that one of their family member has more than 20 years of
business experience. 23% of the respondents responded that they have some sort of
working experience. 37% of the respondents responded that there is at least one business
graduate in their family. 44% of the respondents responded to have work motivation from
their families during studies. Lastly, 27% of the respondents responded to have intention
to establish businesses during their studies and 46% of the respondents responded to have
intention to establish businesses after their studies.
 Entrepreneurship motivation in Pakistani context 459

Table 1 Descriptive statistics

Gender 41% Male 59% Female

Age group Below 25 71% Above 25 29%
Level of education Under Grad 65% Post Grad 35%
Family education U Matric 33% College 28% Bachelors 23% Masters 16%
Family occupation Business 38% Emp 62%
Father education 10% Illi Sc18% College Bachelor 9% Master 27%
36%
Father occupation Business 47% Emp 53%
Mother education 28% Illi Sc 23% College 20% Bachelors Masters 14%
15%
Mother occupation 54% Housewife 28% Emp 18% Business
Business persons in Business 56% Emp 44%
family
Family business history 1–10Y 18% 11–20Y 22% 21 to 30Y 27% Above 30Y
33%
Personal occupational Business 15% Emp 8% No Exp 77%
history
Personal experience 1Y 11% Over 1Y 12% No Exp 77%
Business graduates in 37% Yes 63% No
family
Work motivation from 44% Yes 56% No
family
Personal motivation for 27% Yes 73% No
business during studies
Personal motivation for 46% Yes 54% No
business after studies
Note: Family means parents and siblings.
Table 2 KMO and Bartlett’s test

Kaiser-Meyer-Olkin measure of sampling 0.817

Adequacy:
Bartlett’s test of approx. chi-square 6,127.327
Sphericity sig 0.000

Table 3 Communalities

Entrepreneurial motivation Initial Extraction

Enables me to prove that I can be successful: EM1 0.541 0.623
Enables my personal fulfilment: EM2 0.742 0.767
Allows me to face challenges: EM3 0.577 0.626
Is exciting: EM4 0.636 0.661
Allows me to acquire economic wealth: EM5 0.821 0.944
Makes it possible to increase opportunities for profit: EM6 0.711 0.774
Note: Extraction method: principal component method.
460 S.A.A. Shah et al.

Table 3 Communalities (continued)

Entrepreneurial motivation Initial Extraction

Allows me to get a comfortable life: EM7 0.549 0.581
Helps me to increase personal income: EM8 0.627 0.636
Enables me to get public recognition: EM9 0.675 0.713
Allows me to afford independence: EM10 0.795 0.848
Allows me to be my own boss: EM11 0.818 0.854
Allows me to have the power to make decisions: EM12 0.663 0.724
Allows me to participate in the whole decision-making process: EM13 0.874 0.913
Allows me to ensure a secure future for the family: E14 0.744 0.787
Enables increased funding for retirement: EM15 0.546 0.616
Note: Extraction method: principal component method.
Table 4 Descriptive analysis for entrepreneur motivation

Entrepreneurial motivation N Mean Std. deviation

Enables me to prove that I can be successful: EM1 533 4.43 0.944
Enables my personal fulfilment: EM2 533 4.01 0.969
Allows me to face challenges: EM3 533 4.03 0.965
Is exciting: EM4 533 3.49 1.309
Allows me to acquire economic wealth: EM5 533 3.64 1.089
Makes it possible to increase opportunities for profit: EM6 533 3.73 1.041
Allows me to get a comfortable life: EM7 533 3.83 1.214
Helps me to increase personal income: EM8 533 3.64 1.172
Enables me to get public recognition: EM9 533 3.43 1.292
Allows me to afford independence: EM10 533 3.65 1.204
Allows me to be my own boss: EM11 533 3.74 1.287
Allows me to have the power to make decisions: EM12 533 3.90 1.104
Allows me to participate in the whole decision-making 533 3.99 1.120
process: EM13
Allows me to ensure a secure future for the family: E14 533 3.76 1.202
Enables increased funding for retirement: EM15 533 3.57 1.368
Source: Survey results
Table 5 Total variance explained

Initial eigen values

Factor
Total % of variance Cumulative %
1 6.714 52.743% 52.743%
2 1.331 17.145% 58.888%
3 1.227 9.643% 68.531%
Note: Extraction method: principal component method.
 Entrepreneurship motivation in Pakistani context 461

Table 5 Total variance explained (continued)

Extraction sum of squared loadings

Factor
Total % of variance Cumulative %
1 6.143 49.635% 39.635%
2 0.843 10.435% 52.070%
3 0.614 4.732% 56.802%
Rotation sum of squared loadings
Factor
Total % of variance Cumulative %
1 3.072 24.818% 24.818%
2 2.417 21.221% 46.039%
3 2.231 10.763% 56.802%
Note: Extraction method: principal component method.
Table 6 Reliability statistics

Cronbach’s Cronbach’s N
alpha alpha std. items
Enables me to prove that I can be successful: EM1 0.735 0.712 533
Enables my personal fulfilment: EM2 0.747 0.752 533
Allows me to face challenges: EM3 0.722 0.733 533
Is exciting: EM4 0.847 0.819 533
Allows me to acquire economic wealth: EM5 0.934 0.901 533
Makes it possible to increase opportunities for profit: 0.783 0.767 533
EM6
Allows me to get a comfortable life: EM7 0.841 0.856 533
Helps me to increase personal income: EM8 0.835 0.857 533
Enables me to get public recognition: EM9 0.725 0.754 533
Allows me to afford independence: EM10 0.945 0.911 533
Allows me to be my own boss: EM11 0.731 0.722 533
Allows me to have the power to make decisions: 0.856 0.834 533
EM12
Allows me to participate in the whole 0.784 0.790 533
decision-making process: EM13
Allows me to ensure a secure future for the family: 0.765 0.771 533
E14
Enables increased funding for retirement: EM15 0.842 0.813 533
 462

Pearson correlation EM1 EM2 EM3 EM4 EM5 EM6 EM7 EM8 EM 9 EM10 EM11 EM12 EM13 EM14 EM15 Table 7
EM1 Corel 1 .731** .465** .291** .320** .411** .212** .122 .172* .121 .006 .044 .012 .272** .016
Sig 000 .000 .007 .000 .000 .000 .169 .048 .157 .217 .655 .892 .003 .187
EM2 Corel 1 .414** .273** .267** .371** .199* .177 .285** .122 .078 .125 .078 .257** .217*
Sig .000 .001 .001 .000 .020 .059 .004 .117 .077 .125 .552 .008 .013
EM3 Corel 1 .377** .231** .277** .286** .276** .222* .147 .006 .059 .083 .120* .101
Sig .000 .002 .002 .001 .001 .011 .114 .811 .871 .156 .017 .193
EM4 Corel 1 .345** .111 .122 .070 .247** .375** .141 .091 -.025 .285** .401**
Sig .000 .101 .152 .536 .003 .000 .109 .287 .760 .000 .000
S.A.A. Shah et al.

EM5 Corel 1 .378** .456** .203 .258** .291** .188* .109 .059 .380** .267**
Sig .000 .000 .190 .003 .001 .042 .214 .477 .000 .001
EM6 Corel 1 .411** .349** .265** .076 .155 .234** .073 .270** .281**
Sig .000 .000 .002 .285 .071 .008 .373 .001 .002
EM7 Corel 1 .517** .253** .274** .074 .241* .236** .316** .233**
Sig .000 .002 .008 .414 .017 .004 .000 .006
EM8 Corel 1 .414** .174* .090 .341** .208* .229** .011
Factors of entrepreneurial motivation

Sig .000 .041 .356 .000 .011 .005 .263

EM9 Corel 1 .434** .212** .108 .090 .174* .277**
Sig .000 .004 .220 .273 .033 .002
EM10 Corel 1 .419** .127 .044 .227** .261**
Sig .000 .153 .611 .003 .002
EM11 Corel 1 .493** .116 .137 .381**
Sig .000 .197 .094 .000
EM12 Corel 1 .472** .336** .234**
Sig .000 .000 .009
EM13 Corel 1 .218** .184*
Sig .001 .034
EM14
Corel 1 .591**
Sig .000
EM15 Corel 1
Sig
Notes: **Correlation is significant at the 0.01 level (2-tailed). *Correlation is significant at the 0.05 level (2-tailed).
 Entrepreneurship motivation in Pakistani context 463

Table 8 Table of significant moderate positive correlations

Correlating factors Table of significant moderate positive correlations

EM1 EM2 EM3 EM6
EM2 EM1 EM3 EM6
EM3 EM1 EM2 EM4
EM4 EM3 EM5 EM10 EM15
EM5 EM4 EM6 EM7 EM14
EM6 EM1 EM2 EM5 EM7 EM8
EM7 EM5 EM6 EM8 EM14
EM8 EM6 EM7 EM9 EM12
EM9 EM8 EM10
EM10 EM4 EM9 EM11
EM11 EM10 EM12 EM15
EM12 EM8 EM11 EM13 EM14
EM13 EM12
EM14 EM5 EM7 EM12 EM15
EM15 EM4 EM11 EM14

4 Discussion

From the table of correlations a new table of moderate positive correlations has been
derived. An analysis of the table of moderate positive correlations reveals that factor
EM6 has positive moderate correlations with the most number of factors, i.e., five factors.
Furthermore, factors EM4, EM5, EM7, EM8, EM12 and EM14 have significant positive
relationships with the second most number of factors, i.e., 4. In order to determine
Crammer’s V association behaviour amongst these factors the following associations
have been analysed:
EM 4 = β1 EM 3 + β 2 EM 5 + β 3 EM 10 + β 4 EM 15

EM 5 = β1 EM 4 + β 2 EM 6 + β3 EM 7 + β 4 EM 14

EM 6 = β1 EM 1 + β 2 EM 2 + β 3 EM 5 + β 4 EM 7 + β 5 EM 8

EM 7 = β1 EM 5 + β 2 EM 6 + β3 EM 8 + β 4 EM 14

EM 8 = β1 EM 6 + β 2 EM 7 + β 3 EM 9 + β 4 EM 12

EM 12 = β1 EM 8 + β 2 EM 11 + β 3 EM 13 + β 4 EM 14

EM 14 = β1 EM 5 + β 2 EM 7 + β3 EM 12 + β 4 EM 15

Model for mediation analysis:

EM 6 = β1 EM 1 + β 2 EM 2 + β3 EM 5 + β 4 EM 7 + β5 EM 8 + β 6 EM 12
464 S.A.A. Shah et al.

Table 9 Association with: EM4

Model Cramer’s V P-values

EM3 0.325 0.081
EM5 0.125 0.125
EM10 0.137 0.041
EM15 0.111 0.097

Table 10 Association with: EM5

Model Cramer’s V P-values

EM4 0.333 0.137
EM6 0.212 0.111
EM7 0.127 0.227
EM14 0.125 0.010

Table 11 Association with: EM6

Model Cramer’s V P-values

EM1 0.756 0.000
EM2 0.813 0.019
EM5 0.523 0.031
EM7 0.729 0.022
EM8 0.691 0.000

Table 12 Association with: EM7

Model Cramer’s V P-values

EM5 0.124 0.085
EM6 0.017 0.021
EM8 0.325 0.047
EM14 0.025 0.311

Table 13 Association with: EM8

Model Cramer’s V P-values

EM6 0.133 0.715
EM7 0.217 0.042
EM9 0.070 0.918
EM12 0.370 0.056

Table 14 Associated with: EM12

Model Cramer’s V P-values

EM8 0.095 0.079
EM11 0.845 0.008
EM13 0.533 0.013
EM14 0.913 0.005
 Entrepreneurship motivation in Pakistani context 465

Table 15 Associated with: EM14

Model Cramer’s V P-values

EM5 0.325 .061
EM7 .227 .917
EM12 .129 .010
EM15 .915 .091

Table 16 Dependent variable: EM6

Model Unstandardised coefficients P-values F-test

EM1 3.756 0.000 0.004
EM2 5.813 0.019
EM5 4.523 0.031
EM7 3.729 0.022
EM8 7.691 0.000

Table 17 Dependent variable: EM6

Model Unstandardised coefficients P-values F-test

EM1 1.056 0.061 0.091
EM2 0.813 0.119
EM5 0.523 0.071
EM7 1.029 0.072
EM8 0.691 0.091
EM12 2.574 0.043

4.1 Discussion
KMO’s value of 0.817 and significant value of Bartlett’s test shows that the sample is
adequate for the purpose of our research. The test results of communalities have been
reported in Table 3 which are above 0.5 confirming the results of KMO and Bartlett’s test
about sampling adequacy. The reliability statistics have been reported in Table 6 where
the Cronbach’s value of over 0.7 shows that the data has internal consistency and is
reliable for the purpose of research. Table 7 reports correlation results and Table 8 reports
their interpretation tabular form. Table 8 reveals that the factors of entrepreneurial
motivation are clearly divided into two groups, where one group is from factors EM1 to
EM8 and the other group is from EM9 to EM15.
In order to determine the determinants of entrepreneurial motivation the focus is on
seven variables which have positive correlation with the most number of variables. To
test the model seven models have been examined to test the original model and possible
alternatives, the results of which have been reported in Table 9 to Table 15. Analysis of
results from Tables 9 to 15 shows that as observed in correlation table, there exits an
association model in upper portion of Table 8 where EM6 is associated with EM1, 2, 5, 7,
8 and one association model in lower portion of Table 8 where EM12 is associated with
EM8, 11, 13, 14.
466 S.A.A. Shah et al.

In the second step, mediation analysis has been conducted to test our model. The
results of mediation have been reported in Tables 16 and 17. Tables reveal that EM12
fully mediates the relationship between EM6 and EM1, EM2, EM5, EM7, E8. In order to
analyse influence of family profile on entrepreneurial motivations, we have applied
Crammer’s V test the results of which have been reported in Table 18. The results depict
that family profile, occupation and business history have significant associations with
entrepreneurial motivations, while the family education profile has no association in this
context. In this way, our results conform to the results of Berdie (1959), Finlayson
(1971), Fotheringham and Creal (1980), Cherian (1992), Seginer and Vermulst (2002)
and Seaman et al. (2016) and also with the theory of Dana et al. (2019). Our results
however do not conform to the results of Socialisation theory as indicated by Duncan
et al. (1972) and Eccles et al. (1982) that working status of the parents does not play any
role in entrepreneurial motivations of the students, which is very dominant in the case of
this research. Lastly, our results also conform to the results of Eccles et al. (1982), Eccles
(1983), Stevenson and Newman (1986) and Hill and Duncan (1987) that role of the
mother has significant impact on motivations of a child, however, our study finds
significant impact from education and occupational aspects as well. The
acceptance/rejection of hypotheses has reported in Table 19.
Table 18 Table for the results of Crammer’s V test

Model Crammer’s V test P-values

Family education 0.127 0.096
Family occupation 0.257 0.031
Father education 0.511 0.085
Father occupation 0.334 0.022
Mother education 0.386 0.037
Mother occupation 0.478 0.041
Business person in family 0.564 0.021
Family business history 0.611 0.033
Business graduates in family 0.318 0.017
Work motivation from family 0.219 0.024

Table 19 Results of hypotheses testing

Hypotheses Results
H1 Intention of the student to become his own boss positively effects Failed to reject
entrepreneurial motivation of the university students.
H2 Intention of the student for participation in decision process Failed to reject
positively effects entrepreneurial motivation of the university
students.
H3 Intention of the student about securing family future positively Failed to reject
effects entrepreneurial motivation of the university students.
H4 Intention of the student power to make decision positively effects Failed to reject
entrepreneurial motivation of the university students.
H5 Intention of the student about personal success positively effects Failed to reject
entrepreneurial motivation of the university students.
 Entrepreneurship motivation in Pakistani context 467

Table 19 Results of hypotheses testing (continued)

Hypotheses Results
H6 Intention of the student about increasing personal income Failed to reject
positively effects entrepreneurial motivation of the university
students.
H7 Intention of the student personal economic wealth positively effects Failed to reject
entrepreneurial motivation of the university students.
H8 Intention of the student about comfortable life positively effects Failed to reject
entrepreneurial motivation of the university students.
H9 Intention of the student personal fulfilment positively effects Failed to reject
entrepreneurial motivation of the university students.
H10 Intention of the student about personal profit opportunities Failed to reject
positively effects entrepreneurial motivation of the university
students.
H11 Power to make decisions of the student fully mediates the Failed to reject
relationship between independent variables and entrepreneurial
motivation amongst university students of Pakistan.
H12 Family education has association with entrepreneurial motivations Reject
of university students.
H13 Family occupation has association with entrepreneurial motivations Failed to reject
of university students.
H14 Father education has association with entrepreneurial motivations Reject
of university students.
H15 Father occupation has association with entrepreneurial motivations Failed to reject
of university students.
H16 Mother education has association with entrepreneurial motivations Reject
of university students.
H17 Mother occupation has association with entrepreneurial Failed to reject
motivations of university students.
H18 Having a business in person has association with entrepreneurial Failed to reject
motivations of university students.
H19 Family business history has association with entrepreneurial Failed to reject
motivations of university students.
H20 Business graduates in family has association with entrepreneurial Failed to reject
motivations of university student.
H21 Work motivation from family has association with entrepreneurial Failed to reject
motivations of university student.

5 Conclusions

The results of the study confirms that the results of Hassan et al. (2018) that there exists
association between entrepreneurial motivation and personal success, personal income,
personal economic wealth, comfort in life, personal fulfilment and personal profit
opportunities. Furthermore, the factors intention to become own boss, participation in
decision making process, intention to increase personal income and securing personal
future have significant association with perception of the students for power to make
468 S.A.A. Shah et al.

decisions. Also, our study confirms our hypothesis that perception of the students about
power to make own decision serves as a factor that fully mediates the relationship of
entrepreneurial motivation of university students with all independent variables. The
results of the study also suggest that intention of the students to increase personal income
somehow plays dual role in the entrepreneurial motivation as firstly, it has a direct impact
on personal profit opportunities and then it also impacts through intention of the students
about power to make decisions but here the impact is insignificant. This leads to form a
conclusion that entrepreneurial motivation amongst university students in Pakistan is a
complex phenomenon that has dimensions which are ‘psychological’ and ‘economic’
which are similar to the results of Kadir et al. (2012) and Mat et al. (2015). The factors in
physiological category include ‘power to make own decisions’, ‘intention to become own
boss’, ‘participation in decision process’, ‘securing the future of the family’, ‘personal
success’, ‘comfortable life’ and ‘personal fulfilment’. Whereas economic factors include
‘personal income’, ‘personal economic wealth’ and ‘personal profit opportunities’.
Furthermore, it can also be argued that the ‘power to make decisions’ is a psychological
phenomenon that partially mediates the entrepreneurial motivation of university students
in Pakistan, though there exists other psychological factors that affect entrepreneurial
motivation of university in Pakistani settings.
Regarding the impact of family profile on entrepreneurial motivations of university
students, our study finds that family occupational profile plays significant role in building
up entrepreneurial motivations of university students. Furthermore, this study also finds
that educated mothers playing dual role of looking after family and also having
professional engagements have more profound impact on bringing up entrepreneurial
motivations.

5.1 Novelty
This study has many novelties from various dimensions. Firstly, it encompasses
universities from major cities of the province of Punjab which form a diversified sample
that has never been explored before. Secondly, the application statistical methods to
identify various combination of variables to be explored for the purpose of identifying
factors that contribute towards entrepreneurial motivation in university students in
Pakistan. Thirdly, identification of ‘psychological’ and ‘economic’ factors that affect the
‘entrepreneurial motivation’ of university in Pakistan. Fourthly, identification of
mediating role of certain ‘psychological factors’ that impact ‘entrepreneurial
motivations’. Fifthly, this study also identifies a more profound role of family profile on
entrepreneurial motivations. It identifies the role of professional mothers and
occupational status of the families as important factors that bring up the entrepreneurial
motivations. Lastly, this study conforms to the theory of Dana et al. (2019) about the
influence of family on entrepreneurial motivation of students that comes mainly from
mothers and family occupational roles.

5.2 Economic implications

This study has very important implications for a developing country like Pakistan. It can
be helpful for resolving the rising unemployment problem that on what ‘psychological’
and ‘economic’ grounds university should be motivated to increase their acceptability
and integration into the society. More entrepreneurs will more business setups generating
 Entrepreneurship motivation in Pakistani context 469

more employment opportunities which will have more profound economic results
compared to working as an employee.

5.3 Limitations and future research directions

This study suffers from various limitations. A study on similar dimensions with larger
sample and different economic and geographic settings can be made to confirm results.
Keeping in view the complexity future studies may also be carried out taking into account
specific settings. For example, entrepreneurial motivation factors amongst the students of
various disciplines, different genders, rural and urban areas, developed and developing
countries from the perspective of psychological and economic factors.

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