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Procedia - Social and Behavioral Sciences 46 (2012) 4010 – 4015

WCES 2012

Psychological factors, behavioural variables and acquired competencies in entrepreneurship education Codrin Chiru a * , Laurentiu Tachiciu a, Stela Georgiana Ciuchete a a

The Bucharest Academy of Economic Studies, Faculty of Commerce, 41, Dacia Blvd., Sector 1, Bucharest, 010404, Romania

Abstract Entrepreneurship is widely seen as a key competence necessary to build-up a modern society. Several studies at global level demonstrated the consistent relationship between economic prosperity (GDP level and its dynamics) and the entrepreneurial activity and also emphasised the importance of the latter for the young people’s participation in the labour market. The research summarised in this paper undertakes an integrated analysis of the students’ acquired business skills and various psychological/behavioural factors (risk acceptance, success models & patterns, personal motivation, self-confidence) in the middle and higher education institutions by using a mix of quantitative and qualitative evidence. The study investigates the sources of gaps between the entrepreneurial knowledge and students’ acquired competencies and recommends a few approaches for facilitating collaboration among stakeholders in the entrepreneurship education. © 2012 Published PublishedbybyElsevier Elsevier Ltd. © 2012 Ltd. Selection and/or peer review under responsibility of Prof. Dr. Hüseyin Uzunboylu Open access under CC BY-NC-ND license. Keywords: Competency based education, Entrepreneurs’ knowledge & skills, Entrepreneurship education, Business start behavioural variables.

-ups, Psychological and

1. Introduction The entrepreneurship’s key social and economic role has been acknowledged in the last decade not only by scholars but also by governmental bodies, including international institutional structures such as the European Commission, Organisation for Economic Co-operation and Development (OECD) or United Nations (UN). Policy makers are aware about the entrepreneurship’s crucial role in economic and social development including job creation, unemployment reduction, social emancipation, personal fulfilment (European Commission, 2006, p. 4) and competition atomization. Modern society is marked by economic success as a benchmark of social recognition and value. Long term companies’ performance is based on competiveness, a term that has been correlated to key aspects such as: internal and external firm environments and entrepreneurial influence (Man et al, 2002). Young people participation in economic affairs as entrepreneurs is very often correlated to the quality of educational processes and its capacity to build competencies. The relevance of the competency-based education for entrepreneurship education in universities has been investigated under various circumstances (Stoof, 2005; Walker at al., 2007; Bird, 2002) being revealed the concept of curriculum development according to success criteria to accomplish a certain task or job in a real company that is doing business in an environment dominated by continuous change and emerging uncertainty. At the Bucharest Academy of Economic Studies students in Commerce are taught Entrepreneurship as a compulsory subject in the third semester, after studying Fundamentals of Business. “Entrepreneurship” aims at * Codrin Chiru. Tel.: +4-0744-334485 E-mail address: [email protected]

1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Prof. Dr. Hüseyin Uzunboylu Open access under CC BY-NC-ND license. doi:10.1016/j.sbspro.2012.06.188

Codrin Chiru et al. / Procedia - Social and Behavioral Sciences 46 (2012) 4010 – 4015

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familiarizing students with topics such as: understanding the entrepreneurial mind-set, identifying and exploiting business opportunities, creativity and innovation, financing new ventures, dealing with factors of business success or failure, social entrepreneurship and social responsibility. Each student is required to elaborate a case study that includes the profile of an entrepreneur from the real life; additionally, groups of four students simulate a new venture planning. Authors of the present paper are trying to get some empirical evidence of the role of the Entrepreneurship course in improving entrepreneurship competences of a population with known psychological and behavioural traits. 2. Literature review ile entrepreneurial values, behaviours and traits have received various and heterogeneous interpretations over the time (Schumpeter, 1911; Ajzen, 1991; 2011; 2002, Kirzner, 1998). However, the psychological and behavioural characteristics together with management and field-specific (technical knowledge and skills) of entrepreneurs are studies investigated the link between entrepreneurial attitudes and psychological factors such as: self-determination, risk bearing ability or psychological comfort (Appolloni, & Sagiri, 2009; Segal, 2005) while other studies are emphasizing that entrepreneurial competencies are significant predictors of economic success, stressing for curricula reforms (European Commission, 2006). In the context of the European Qualifications Framework, knowledge is the result of assimilation, by learning the information and is described as theoretical and / or factual (European Parliament, 2008, p. 4). Ability is described as the capacity to apply and use knowledge, to carry out tasks and solve problems. Skills are described as cognitive (involving the use of logical, intuitive and creative thinking) or practical (involving manual dexterity and the use of methods, materials, tools and instruments) (European Parliament, 2008, p. 4). Competence is the proven ability to select, combine and use the appropriate knowledge, skills and other acquisitions (values and attitudes) in order to successfully solve a particular category of work or learning situations and for professional or personal development in terms effectiveness and efficiency. In the context of the European Qualifications Framework, competence is described in terms of responsibility and autonomy (European Parliament, 2008, p. 4). These three types of learning outcomes are interrelated and, at the same time, there is a certain hierarchy in the process to achieve these results: certain types of knowledge based skills and sets of knowledge and skills lead to the development of a certain competence (European Parliament, 2008, p. 5). 3. Methodology This study aims at analysing habitual behavioural patterns (traits) of students from mid and higher education institutions from Romania (high school and university students) as well as acquired entrepreneurial competencies (in the case of students who attended business classes last year). This research has been carried on in two stages: 3.1. Psychological and behavioural factors assessment The psychological and behavioural factors assessment using a questionnaire based survey; the questionnaire included 16 items and used a Likertdesire (Qa2), fast decision making (Qa3), risk taking in uncertain conditions (Qa4), opportunity taking (Qa5), goal orientation (Qa6), energetic attitudes toward work (Qa7), anticipation (Qa8), learning from own mistakes (Qa9), desire for self-development (Qa10), self-confidence (Qa11), desire for control (Qa12), perseverance (Qa13), assuming calculated risks (Qa14), material desire (money making) (Qa15), positive thinking (Qa16). A total of 331 valid questionnaires were collected from: 128 high school students Faculty of Commerce (ASE Bucharest)

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3.2. Acquired entrepreneurial competences The acquired entrepreneurial competences were tested with students from The Bucharest Academy of Economic Studies, Faculty of Commerce who graduated entrepreneurship course during previous 3 years. 127 valid questionnaires were analysed. The students were asked to self-evaluate their competences acquired exclusively during the attended entrepreneurship courses and seminars. The questionnaires included 15 items, 13 having a 4 point evaluation scale assessing the course influence on various competencies (1- not at all to 4- quite a lot). We analysed not only the professional competencies occurrence but also transversal competences, that are values and attitudes that transcend purchasing a particular field / program of study and is expressed by the specific descriptors such as: autonomy and responsibility, social interaction, personal and professional development. The competencies that were tested are considered relevant in entrepreneurial education literature (Man, 2002; Onstenk, 2003) and can be classified as following: a. Opportunity competencies: Qb I identify with greater ease aspects that may be business b. Relationship competencies: Qb I interact and relate better with Qb7: became more concerned to cultivate my relationships, communicate and build partnerships with people who can help me or have common interests with me/ Qb8: I became more convincing when I put across my view in discussions about business. c. Conceptual competencies: Qb I became more competent in decision-making, including in complex / Qb5: have a greater tendency to find new ways, to solve unconventional / Qb d. Organizing competencies: Qb have a greater capacity to assess the quality of people I work Q6: improved my capacity to organize resources (money, people, information, / Qb working capacity. e. Strategic competencies: Qb9: have a better representation of the future consequences of my f. Commitment competencies: Qb obstacles. The students were asked to specify their work and entrepreneurial experience. At both stages, after elimination of the incomplete/ incorrect filled questionnaires, the data was introduced and analysed using the SPSS software. 4. Results & discussion The analysed groups revealed few differences, the behavioural variables having close values. We identified that respondents proved to have high desire for material goals (material self-fulfilment) Qa2, strong goal orientation Qa6, forward thinking/anticipation capacities - Qa8 and high levels of self-confidence Qa11. The traits with the lowest means were: gut feeling assessment - Qa1, fast decision making - Qa3 and unwillingness to take risks under uncertainty Qa4. Desire for control and to assume calculated risk have considerable higher scores. Average values for energetic work attitude and desire for self-development are completing the general profile of the young Romanian students (all values are presented in Table 1). Table 1. Habitual behavioural patterns (traits) for each studied group Group ASE Bucharest

Bucharest

Bucharest

Variable Qa1 Qa2 Qa3 Qa4 Qa5 Qa6 Qa7 Qa8 Qa9 Qa10 Qa11 Qa12 Qa13 Qa14 Qa15 Qa16 N Mean Std. Dev. Variance N Mean Std. Dev. Variance N Mean Std. Dev. Variance

115 3.22 .980 .961 88 3.22 1.098 1.206 128 3.33 .906 .821

115 115 4.30 2.90 .737 .848 .543 .719 88 88 4.15 3.15 .904 1.034 .817 1.070 128 128 4.27 2.87 .760 .942 .578 .888

115 3.13 .874 .764 88 3.07 .920 .846 128 3.18 .917 .841

115 3.50 .718 .515 88 3.48 .830 .689 128 3.32 .822 .676

115 4.17 .674 .455 88 4.13 .640 .409 128 4.05 .816 .666

115 4.00 .858 .737 88 3.94 .862 .744 128 3.77 1.008 1.016

115 4.42 .662 .438 88 4.42 .562 .315 128 4.20 .794 .631

115 3.88 .623 .389 88 4.02 .788 .620 128 3.74 .734 .539

115 3.75 .793 .629 88 3.80 .873 .762 128 3.50 .972 .945

115 4.17 .716 .513 88 4.20 .681 .463 128 4.08 .857 .734

115 3.97 .671 .451 88 3.98 .830 .689 128 3.85 .774 .600

115 3.95 .673 .453 88 3.85 .670 .449 128 3.92 .749 .561

115 4.40 .770 .593 88 3.92 .847 .718 128 3.88 .996 .992

115 3.84 .683 .467 88 3.84 .756 .572 128 3.83 .879 .773

115 3.54 .704 .496 88 3.72 .830 .688 128 3.55 .971 .943


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although the mean values are similar, the highest seekers for money proved to be the students from The Bucharest Academy of Economic Studies.

Figure 1. Material fulfilment ( money making propensity) (Qa15) and

(Qa2) for each studied group

Accepted risk in uncertainty somehow more reluctant in taking risks in uncertain conditions. Assuming calculated risks proved to be very differently perceived, each group recording different options splatted in other three subgroups (Figure 2). Although the average ranking is high, there are consistent subgroups that scored lower.

Figure 2. Risk taking in uncertain conditions (Qa4) and Assuming calculated risks (Qa14) for each studied group

The entrepreneurial competencies that recorded the highest development were: relationship building, business information reasoning and team working. The least dynamic were innovation propensity (Qb5), decision taking in complex situations (Qb3) and future representation of own actions (Qb9). Complete data is presented in Table no. 2. It was tested if previous work experience (Qb14) has a critical influence in competencies acquisition. At this stage we considered only the competencies with means lower than 3, which need further improvements. The results

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(Table 3) indicate that students with prior work experience scored better in almost cases. The highest differences were recorded in case of variables: Qb1, Qb3, Qb4, Qb9 and Qb13. Table 2. Acquired entrepreneurial competences (students self-evaluation)

N Mean Std. Dev. Variance

Qb1 127 2.88 .625 .391

Qb2 127 2.79 .842 .708

Qb3 127 2.73 .821 .674

Qb4 127 2.80 .817 .667

Qb5 127 2.69 .772 .595

Qb6 127 2.86 .843 .710

Qb7 127 3.04 .886 .784

Qb8 127 2.87 .810 .657

Qb9 127 2.75 .797 .634

Qb10 127 2.81 .814 .662

Qb11 127 3.02 .729 .531

Qb12 127 3.11 .911 .829

Qb13 127 2.83 .687 .472

The 13th that correlation levels (tested using Pearson product-moment correlation coefficient (PPMCCA) and also nonentrepreneurial experience. These results reveal the necessity to put students in contact with the business environment starting with the 2nd year of study. Furthermore, field oriented teaching approaches need to be further competencies. The Faculty of Commerce of The Bucharest Academy of Economic Studies has started few years ago a networking initiative in which students are asked to accomplish a special field project involving Romanian entrepreneurs. Students have the opportunity to take contact and understand the life and peculiarities of real entrepreneurs. This is, of course, a first step of a complex process that should provide students with proper opportunities to improve their skills and competences in this field. Table 3. Acquired entrepreneurial competences for students with previous work experience (Qb14 Yes) and students with no prior work experience (Qb14-No)

Yes

No

Qb14 N Valid Mean Std. Deviation Variance N Valid Mean Std. Deviation Variance

Qb1 Qb2 Qb3 Qb4 Qb5 Qb6 Qb8 Qb9 Qb10 Qb13 79 79 79 79 79 79 79 79 79 79 2.95 2.83 2.80 2.85 2.71 2.87 2.86 2.78 2.81 2.90 .575 .884 .853 .849 .754 .882 .828 .795 .833 .727 .331 .781 .728 .720 .568 .779 .685 .633 .694 .528 48 48 48 48 48 48 48 48 48 48 2.77 2.75 2.63 2.73 2.67 2.83 2.88 2.69 2.81 2.73 .692 .772 .761 .765 .808 .781 .789 .803 .790 .610 .478 .595 .580 .585 .652 .610 .622 .645 .624 .372

5. Conclusions Entrepreneurial education success is a key prerequisite to cope with actual challenges that are coming from burdened economies across the globe. Although are closely related to habitual behavioural patterns (traits), that proved to be almost homogeneous among the groups that were involved in our study, and that are, judgmentally, the outcome of informal education, entrepreneurial competencies can be formally enhanced in order to help young people to find the right path in becoming successful business persons. A special attention should be paid to identify the opportunities for students to come closer to the real business environment. The investigated students showed a better understanding and superior self-assessment of acquired competencies when having prior work or business experience. This research needs to be continued in order to investigate thoroughly if the identified low risk acceptance and slow decision making behavioural patterns represent a general trait for young entrepreneurs and to estimate the possible consequences.


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