Description
During this detailed outline interpret explanation of effectiveness in entrepreneurship didactic terms.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 1 of 9
Explanation of Effectiveness in Entrepreneurship Didactic Terms
(Case Study: Job and Social Office of Mazandaran Province in Iran)
Hassanali Aghajani, Assistant Professor
University of Mazandaran
Department of Business Administration and Industrial Management, Faculty of Economics
& Administrative Sciences, Babolsar, Iran
Tel: 0098, 9111914086 - 0098, 1125232927 E-mail: [email protected]
Abbas Namdar aliabadi, MBA student
University of Mazandaran
Department of Business Administration and Industrial Management, Faculty of Economics
& Administrative Sciences, Babolsar, Iran
Tel: 0098, 9125274306 E-mail: [email protected]
Ramzan Gholami, Faculty Member
University of Payamnoor
Ghaemshahr, Iran
Tel: 0098, 9112233244 E-mail: [email protected]
Objectives: The goal of this research is investigation and recognition of variables and
explanation of structural equation model of effective factors on effectiveness of
entrepreneurship didactic terms in Mazandaran Province of Iran.
Prior Practices: literature of entrepreneurship and effectiveness of didactic terms was reviewed
and a model was presented based on three variables (motives instigation, characteristics and
skills training).
Approach/Methods: The statistical population and sample were 2511 and 214elements, data
collection instruments were documents, interviews and specially questionnaire with reliability of
0.95 as non experimental survey research, the statistical tests were correlation and direct and
indirect relationships among variables, and also interact ional regression in format of path
analysis with using SPSS and Lisrel software's.
Results/Insights: Based on direct relationship coefficients of Structural Equation Model,
motives instigation variable affected on Effectiveness of Entrepreneurship Didactic Terms more
than others.
Implications to Community/Industry: Based on result, implications for managers, and
directions for further research are presented to use in Entrepreneurship terms.
Value to the Theme: Entrepreneurship didactic terms are most important, in Social
Entrepreneurship.
Keywords: Effectiveness – Didactic Terms-Structural Equation Model– Entrepreneur.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 2 of 9
1. Introduction
Entrepreneurship and the attributes related to it are increasingly considered to be a viable
platform for economic growth and prosperity in all societies and economic systems. The
concept of entrepreneurial behavior has become better known, and there is a need to develop
entrepreneurial skills and abilities in order to deal with current challenges and the uncertain
future in any organizational setting (Henry et al., 2003). In the current economic climate jobs are
rarely “for life”, and traditional secure career paths have disappeared.
The essence of entrepreneurship is the ability to envision and chart a course for a new business
venture by combining information from the functional disciplines and from the external
environment in the context of the extraordinary uncertainty and ambiguity which faces a new
business venture. It manifests itself in creative strategies, innovative tactics, uncanny perception
of trends and market mood changes, courageous leadership when the way forward is not
obvious and so on.
As the extent of entrepreneurship increases, the need for education has never been greater and
the opportunities have never been so abundant (Henry et al., 2003). An indication of the current
interest is the growing number of courses and seminars offered by practitioners and
universities, as well as the variety of academic literature and articles that have appeared
(Kuratko, 2005). Organizational and societal changes have made educational institutions,
including universities; reconsider their role as promoters of entrepreneurship and
entrepreneurial ventures. This applies not only to new-venture management, business planning
and growth, but also to a broader notion of entrepreneurial behavior (Gouws, 2002) in different
organizational settings. An increasing number of larger organizations in both private and public
sectors are calling for alertness, opportunity recognition, creative problem solving, initiative-
taking, handling uncertainty and many other related attributes. This offers a challenge to
universities, course planners and teachers: to create practitioners who are capable not only of
absorbing academic knowledge on entrepreneurship and management skills, but also of
pursuing more of an entrepreneurial approach during their careers (Jack and Anderson, 1999).
Despite the constantly increasing number of activities and courses in entrepreneurship
education and training, surprisingly few researchers have, until recently, analyzed the crucial
issue of whether or not entrepreneurship can be successfully taught, and if it can, how this is to
be done (Henry et al., 2005).
There is a widespread belief that entrepreneurship education offers an efficient and cost-
effective means of increasing the number and quality of entrepreneurs in the economy (Matlay,
2006). In addition, entrepreneurship education is seen to contribute to the development of other
important skills appreciated by future employers, such as problem-solving, innovation and team
skills (Heinonen, 2007). The importance of entrepreneurship education at different levels of the
education system is widely acknowledged (Bosma and Levie, 2010).
What are the factors have most affected on entrepreneurship education? It’s the essential
question of this research and with regard to importance of entrepreneurship education; the goal
of this research is investigation and recognition of variables and explanation of structural
equation model of effective factors on effectiveness of entrepreneurship didactic terms in
Mazandaran Province of Iran.
2. Literature review and hypothesis
Entrepreneurial education must include skill-building courses in negotiation, leadership, new
product development, creative thinking and exposure to technological innovation (Vesper and
McMullan, 1988). Other areas identified as important for entrepreneurial education include
awareness of entrepreneurial career options (Donckels, 1991); sources of venture capital
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 3 of 9
(Zeithaml and Rice,1987); idea protection (Vesper and McMullan, 1988); ambiguity tolerance
(Ronstadt, 1987); the characteristics that define the entrepreneurial personality (Scott and
Twomey,1998) and the challenges associated with each stage of venture development
(Plaschka and Welsch, 1990).
The prior research on entrepreneurship education has highlighted the role of entrepreneurship
education in affecting the students’ attitudes towards entrepreneurship, their motivation and
intentions in engaging in new ventures (Fayolle, 2005; Pittaway and Cope, 2007; Athayde,
2009). A widely used framework to analyze the impact of entrepreneurship education is “Theory
of planned behavior”, which focuses on individual entrepreneurial intentions, i.e. intentions to
start-up an entrepreneurial venture (Krueger et al., 2000). Entrepreneurial intentions can only
partially explain the actual start-up decision, as there is usually a significant time lag between
initial intentions and actual behaviour. However, intentions have been widely used as a proxy
for entrepreneurial learning outcomes. Recent results show that an education in
entrepreneurship has a positive effect on the desirability and feasibility of starting a business
(Peterman and Kennedy, 2003). However, entrepreneurship education can also have goals
other than starting up a company. Previous research (Henry et al., 2005) suggests that
entrepreneurship education assessments need to be sensitive to these different goals set for
entrepreneurship courses and programs (Hytti and O’Gorman, 2004). Indeed, the actual effects
of entrepreneurship education are still not known, and there is a need for more rigorous
research investigating the impact of entrepreneurship education on entrepreneurial outcomes
(Matlay, 2008).
Considered purposes in entrepreneurship training specially designed in three areas including:
motives instigation, characteristics training and skills training. Therefore, the conceptual model
of this research as designed that can first, determining entrepreneurship didactic needs in
above three domains, and secondly, ranking them based on their priority.
2.1. Motives instigation
One of the training purposes and entrepreneurship development is motives instigation in people
who have entrepreneurship traits. Knowing this people from their ability and informing in this
field and motivation them is the most important entrepreneurship training utility. motives
instigation such as tends to obtaining wealth, gettable, independence, trends to making new
something, doesn't have accept available methods, not placing people in social base that
haven’t its merit and like it cause to people placing in become entrepreneur path.
2.2. Characteristics training
There are characteristics that lead people to become entrepreneur are not inherited but they are
acquisitive. Training these characteristics is necessary to different people. Some people trains
in environments that their characteristics training automatically, therefore if this people
beginning a business, it will be often success, but most people have not this conditions and
aren’t in this environments, so characteristics training is necessary for them through didactic
terms or graduate course. These characteristics consist of items like creative thought training,
raising risk ability, raising ambiguity tolerance, self confidence, punctual, and giving didactic
information to individual characteristics from control centre.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 4 of 9
2.3. Skills training
These trainings divide into three terms: before, during and after enterprise establishment. In
terms, before establishment of enterprise the entrepreneur, learn how the business starts and
how perform teamwork and communication skills. During establishment of enterprise,
entrepreneur should acquiring necessary awareness and conversance in field of financial
issues, market recognition, management principles, insurance, economy, law affairs, and after
establishment of enterprise, entrepreneur requiring skills are: ability of development
management and company growth, finding new methods, competition and keeping location in
market and finding new market.
2.4. Hypothesis
All of the above dimensions performing for making motivation between people and training new
entrepreneurs. Informing, entrepreneur's guidance and encouragement towards acquiring
necessary skills and presenting essential trains for obtaining needed skills to entrepreneurs and
its necessary for success.
With regard to above three dimensions, the main research hypothesis presented:
H
1
: Motives instigation, characteristics training and skills training are instrument of measurement
and explanation the invisible variable, effectiveness of entrepreneurship didactic terms in
Mazandaran province of Iran.
3. Methodology
This study will involve a standard questionnaire-based survey of participants from Iranian
entrepreneurs, in order to examine empirically the effective factors on effectiveness of
entrepreneurship didactic terms. Samples were selected from entrepreneurs of Iran. A
questionnaire-based survey was conducted. Questionnaires were distributed among 214
entrepreneurs. That is, data collected from entrepreneurs and all data collection sequences for
the survey personnel and data for analyses are summarized in Table I.
Entrepreneurs were surveyed as responding. The majority of studies used the alpha level of
0.05. Entrepreneurs were surveyed because they played key roles.
A multiple-item method was used to construct the questionnaires. Each item was based on a
five point Liquored scale, from "very low" to "very high:' Liquored scales as generally used tend
to underestimate the extreme positions. Respondents are reluctant to express an extreme
position even if they have it. They tend to please the interviewer, appear helpful, or respond in a
way they perceive to be socially acceptable.
Research constructs were operationally on the basis of related studies. Most of the research
constructs have already been validated and used for other studies on entrepreneurs. Therefore,
the items of the questionnaire have been validated. The other testes of study are Cronbach ?
for reliability, T-value test, structural equation modeling (SEM), and focuses on important
indexes of Lisrel software similar to Root Mean Square Error of Approximation (RMSEA),
Goodness of Fit Index (GFI) as appropriate indexes in statistical analyses.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 5 of 9
4. Data Analyze
4.1. Descriptive Data
Table I - Descriptive Data from Sample of Population
Total -
-
50? [40-50) [30-40) [20-30) Range
A
g
e
(
Y
e
a
r
)
214 2 4 40 158 Number
100% 1 2 20 77 Percent
Total
MS & PhD
Bachelor Associate Diploma
Under
Diploma
Range
L
e
v
e
l
o
f
g
r
a
d
u
a
t
e
214 8 40 32 94 40 Number
100% 6 19 15 43 19 Percent
Total Female Male
S
e
x
214 120 94 Number
100% 56 44 Percent
Total 25? [20-25) [15-20) [10-15) [5-10) [1-5) Range
B
a
c
k
g
r
o
u
n
d
(
Y
e
a
r
)
214 2 6 4 12 64 126 Number
100% 1 3 2 6 30 58 Percent
According to descriptive data 77% entrepreneurs (respondents) have from 20 to 30 years old
and 56% are women.
4.2. Results of testes
The statistics for reliability tests are shown in table 2 as follows:
Table II - reliability tests of Measures (by Cronbach ?)
Measure Number of Items
Reliability
(Cronbach ?)
Factors affecting on effectiveness 0.95
For other testes, Lisrel8.50 software is used. The advantage of this software is measuring the
direct and indirect effects on depend variable. Therefore, this software is better than other
statistical software's that only compute the direct effects on the dependent variable. In the
following figure output of tests are presented:
Figure I- T-Value test
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 6 of 9
The T-Value showed there is direct relation between 3 effective factors and effectiveness of
didactic terms. The goodness of fit index (GFI) was 0.98(GFI=0.98>0.90), then the validity of
models has confirmed. The Root Mean Square Error of Approximation (RMSEA) =0.012
During this detailed outline interpret explanation of effectiveness in entrepreneurship didactic terms.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 1 of 9
Explanation of Effectiveness in Entrepreneurship Didactic Terms
(Case Study: Job and Social Office of Mazandaran Province in Iran)
Hassanali Aghajani, Assistant Professor
University of Mazandaran
Department of Business Administration and Industrial Management, Faculty of Economics
& Administrative Sciences, Babolsar, Iran
Tel: 0098, 9111914086 - 0098, 1125232927 E-mail: [email protected]
Abbas Namdar aliabadi, MBA student
University of Mazandaran
Department of Business Administration and Industrial Management, Faculty of Economics
& Administrative Sciences, Babolsar, Iran
Tel: 0098, 9125274306 E-mail: [email protected]
Ramzan Gholami, Faculty Member
University of Payamnoor
Ghaemshahr, Iran
Tel: 0098, 9112233244 E-mail: [email protected]
Objectives: The goal of this research is investigation and recognition of variables and
explanation of structural equation model of effective factors on effectiveness of
entrepreneurship didactic terms in Mazandaran Province of Iran.
Prior Practices: literature of entrepreneurship and effectiveness of didactic terms was reviewed
and a model was presented based on three variables (motives instigation, characteristics and
skills training).
Approach/Methods: The statistical population and sample were 2511 and 214elements, data
collection instruments were documents, interviews and specially questionnaire with reliability of
0.95 as non experimental survey research, the statistical tests were correlation and direct and
indirect relationships among variables, and also interact ional regression in format of path
analysis with using SPSS and Lisrel software's.
Results/Insights: Based on direct relationship coefficients of Structural Equation Model,
motives instigation variable affected on Effectiveness of Entrepreneurship Didactic Terms more
than others.
Implications to Community/Industry: Based on result, implications for managers, and
directions for further research are presented to use in Entrepreneurship terms.
Value to the Theme: Entrepreneurship didactic terms are most important, in Social
Entrepreneurship.
Keywords: Effectiveness – Didactic Terms-Structural Equation Model– Entrepreneur.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 2 of 9
1. Introduction
Entrepreneurship and the attributes related to it are increasingly considered to be a viable
platform for economic growth and prosperity in all societies and economic systems. The
concept of entrepreneurial behavior has become better known, and there is a need to develop
entrepreneurial skills and abilities in order to deal with current challenges and the uncertain
future in any organizational setting (Henry et al., 2003). In the current economic climate jobs are
rarely “for life”, and traditional secure career paths have disappeared.
The essence of entrepreneurship is the ability to envision and chart a course for a new business
venture by combining information from the functional disciplines and from the external
environment in the context of the extraordinary uncertainty and ambiguity which faces a new
business venture. It manifests itself in creative strategies, innovative tactics, uncanny perception
of trends and market mood changes, courageous leadership when the way forward is not
obvious and so on.
As the extent of entrepreneurship increases, the need for education has never been greater and
the opportunities have never been so abundant (Henry et al., 2003). An indication of the current
interest is the growing number of courses and seminars offered by practitioners and
universities, as well as the variety of academic literature and articles that have appeared
(Kuratko, 2005). Organizational and societal changes have made educational institutions,
including universities; reconsider their role as promoters of entrepreneurship and
entrepreneurial ventures. This applies not only to new-venture management, business planning
and growth, but also to a broader notion of entrepreneurial behavior (Gouws, 2002) in different
organizational settings. An increasing number of larger organizations in both private and public
sectors are calling for alertness, opportunity recognition, creative problem solving, initiative-
taking, handling uncertainty and many other related attributes. This offers a challenge to
universities, course planners and teachers: to create practitioners who are capable not only of
absorbing academic knowledge on entrepreneurship and management skills, but also of
pursuing more of an entrepreneurial approach during their careers (Jack and Anderson, 1999).
Despite the constantly increasing number of activities and courses in entrepreneurship
education and training, surprisingly few researchers have, until recently, analyzed the crucial
issue of whether or not entrepreneurship can be successfully taught, and if it can, how this is to
be done (Henry et al., 2005).
There is a widespread belief that entrepreneurship education offers an efficient and cost-
effective means of increasing the number and quality of entrepreneurs in the economy (Matlay,
2006). In addition, entrepreneurship education is seen to contribute to the development of other
important skills appreciated by future employers, such as problem-solving, innovation and team
skills (Heinonen, 2007). The importance of entrepreneurship education at different levels of the
education system is widely acknowledged (Bosma and Levie, 2010).
What are the factors have most affected on entrepreneurship education? It’s the essential
question of this research and with regard to importance of entrepreneurship education; the goal
of this research is investigation and recognition of variables and explanation of structural
equation model of effective factors on effectiveness of entrepreneurship didactic terms in
Mazandaran Province of Iran.
2. Literature review and hypothesis
Entrepreneurial education must include skill-building courses in negotiation, leadership, new
product development, creative thinking and exposure to technological innovation (Vesper and
McMullan, 1988). Other areas identified as important for entrepreneurial education include
awareness of entrepreneurial career options (Donckels, 1991); sources of venture capital
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 3 of 9
(Zeithaml and Rice,1987); idea protection (Vesper and McMullan, 1988); ambiguity tolerance
(Ronstadt, 1987); the characteristics that define the entrepreneurial personality (Scott and
Twomey,1998) and the challenges associated with each stage of venture development
(Plaschka and Welsch, 1990).
The prior research on entrepreneurship education has highlighted the role of entrepreneurship
education in affecting the students’ attitudes towards entrepreneurship, their motivation and
intentions in engaging in new ventures (Fayolle, 2005; Pittaway and Cope, 2007; Athayde,
2009). A widely used framework to analyze the impact of entrepreneurship education is “Theory
of planned behavior”, which focuses on individual entrepreneurial intentions, i.e. intentions to
start-up an entrepreneurial venture (Krueger et al., 2000). Entrepreneurial intentions can only
partially explain the actual start-up decision, as there is usually a significant time lag between
initial intentions and actual behaviour. However, intentions have been widely used as a proxy
for entrepreneurial learning outcomes. Recent results show that an education in
entrepreneurship has a positive effect on the desirability and feasibility of starting a business
(Peterman and Kennedy, 2003). However, entrepreneurship education can also have goals
other than starting up a company. Previous research (Henry et al., 2005) suggests that
entrepreneurship education assessments need to be sensitive to these different goals set for
entrepreneurship courses and programs (Hytti and O’Gorman, 2004). Indeed, the actual effects
of entrepreneurship education are still not known, and there is a need for more rigorous
research investigating the impact of entrepreneurship education on entrepreneurial outcomes
(Matlay, 2008).
Considered purposes in entrepreneurship training specially designed in three areas including:
motives instigation, characteristics training and skills training. Therefore, the conceptual model
of this research as designed that can first, determining entrepreneurship didactic needs in
above three domains, and secondly, ranking them based on their priority.
2.1. Motives instigation
One of the training purposes and entrepreneurship development is motives instigation in people
who have entrepreneurship traits. Knowing this people from their ability and informing in this
field and motivation them is the most important entrepreneurship training utility. motives
instigation such as tends to obtaining wealth, gettable, independence, trends to making new
something, doesn't have accept available methods, not placing people in social base that
haven’t its merit and like it cause to people placing in become entrepreneur path.
2.2. Characteristics training
There are characteristics that lead people to become entrepreneur are not inherited but they are
acquisitive. Training these characteristics is necessary to different people. Some people trains
in environments that their characteristics training automatically, therefore if this people
beginning a business, it will be often success, but most people have not this conditions and
aren’t in this environments, so characteristics training is necessary for them through didactic
terms or graduate course. These characteristics consist of items like creative thought training,
raising risk ability, raising ambiguity tolerance, self confidence, punctual, and giving didactic
information to individual characteristics from control centre.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 4 of 9
2.3. Skills training
These trainings divide into three terms: before, during and after enterprise establishment. In
terms, before establishment of enterprise the entrepreneur, learn how the business starts and
how perform teamwork and communication skills. During establishment of enterprise,
entrepreneur should acquiring necessary awareness and conversance in field of financial
issues, market recognition, management principles, insurance, economy, law affairs, and after
establishment of enterprise, entrepreneur requiring skills are: ability of development
management and company growth, finding new methods, competition and keeping location in
market and finding new market.
2.4. Hypothesis
All of the above dimensions performing for making motivation between people and training new
entrepreneurs. Informing, entrepreneur's guidance and encouragement towards acquiring
necessary skills and presenting essential trains for obtaining needed skills to entrepreneurs and
its necessary for success.
With regard to above three dimensions, the main research hypothesis presented:
H
1
: Motives instigation, characteristics training and skills training are instrument of measurement
and explanation the invisible variable, effectiveness of entrepreneurship didactic terms in
Mazandaran province of Iran.
3. Methodology
This study will involve a standard questionnaire-based survey of participants from Iranian
entrepreneurs, in order to examine empirically the effective factors on effectiveness of
entrepreneurship didactic terms. Samples were selected from entrepreneurs of Iran. A
questionnaire-based survey was conducted. Questionnaires were distributed among 214
entrepreneurs. That is, data collected from entrepreneurs and all data collection sequences for
the survey personnel and data for analyses are summarized in Table I.
Entrepreneurs were surveyed as responding. The majority of studies used the alpha level of
0.05. Entrepreneurs were surveyed because they played key roles.
A multiple-item method was used to construct the questionnaires. Each item was based on a
five point Liquored scale, from "very low" to "very high:' Liquored scales as generally used tend
to underestimate the extreme positions. Respondents are reluctant to express an extreme
position even if they have it. They tend to please the interviewer, appear helpful, or respond in a
way they perceive to be socially acceptable.
Research constructs were operationally on the basis of related studies. Most of the research
constructs have already been validated and used for other studies on entrepreneurs. Therefore,
the items of the questionnaire have been validated. The other testes of study are Cronbach ?
for reliability, T-value test, structural equation modeling (SEM), and focuses on important
indexes of Lisrel software similar to Root Mean Square Error of Approximation (RMSEA),
Goodness of Fit Index (GFI) as appropriate indexes in statistical analyses.
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 5 of 9
4. Data Analyze
4.1. Descriptive Data
Table I - Descriptive Data from Sample of Population
Total -
-
50? [40-50) [30-40) [20-30) Range
A
g
e
(
Y
e
a
r
)
214 2 4 40 158 Number
100% 1 2 20 77 Percent
Total
MS & PhD
Bachelor Associate Diploma
Under
Diploma
Range
L
e
v
e
l
o
f
g
r
a
d
u
a
t
e
214 8 40 32 94 40 Number
100% 6 19 15 43 19 Percent
Total Female Male
S
e
x
214 120 94 Number
100% 56 44 Percent
Total 25? [20-25) [15-20) [10-15) [5-10) [1-5) Range
B
a
c
k
g
r
o
u
n
d
(
Y
e
a
r
)
214 2 6 4 12 64 126 Number
100% 1 3 2 6 30 58 Percent
According to descriptive data 77% entrepreneurs (respondents) have from 20 to 30 years old
and 56% are women.
4.2. Results of testes
The statistics for reliability tests are shown in table 2 as follows:
Table II - reliability tests of Measures (by Cronbach ?)
Measure Number of Items
Reliability
(Cronbach ?)
Factors affecting on effectiveness 0.95
For other testes, Lisrel8.50 software is used. The advantage of this software is measuring the
direct and indirect effects on depend variable. Therefore, this software is better than other
statistical software's that only compute the direct effects on the dependent variable. In the
following figure output of tests are presented:
Figure I- T-Value test
10th International Entrepreneurship Forum, Tamkeen, Bahrain, 9-11 January 2011
Page 6 of 9
The T-Value showed there is direct relation between 3 effective factors and effectiveness of
didactic terms. The goodness of fit index (GFI) was 0.98(GFI=0.98>0.90), then the validity of
models has confirmed. The Root Mean Square Error of Approximation (RMSEA) =0.012