The Relationships between Parents' Background and

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Nov 8, 2014 - Keusahawanan di Kalangan Mahasiswa Kajian Kecenderungan. Pelajar Muslim di Universiti Malaya.pdf. Jurnal Syariah, 14(1), 93–109.
The Relationships between Parents’ Background and Entrepreneurial Intention1 Muhammad, Izlawanie2 Mohd Dali, Nuradli Ridzwan Shah Abdullah, Mahdhir S., Hisham Azman, A.R. Nordin, Siti Nurulhuda Nooh, M.N. Farah, M.Y.

Faculty Economics and Muamalat, Universiti Sains Islam Malaysia Bandar Baru Nilai 71800 Negeri Sembilan

Abstract

Islam encourages Muslims to become an entrepreneur as a profession. The prophet Rasulullah s.a.w. is a perfect example of a responsible, honest and successful entrepreneur. Universiti Sains Islam Malaysia is one of the universities in Malaysia that make Entrepreneurship as a compulsory subject to all students to motivates students to follow the Rasulullah s.a.w. sunnah. Other than Rasullullah s.a.w. and the university, parents of the students could also inspire students to become an entrepreneur. Researchers of children psychology find that parents have significant influence on their children’s future career. This study aims to examine the influence of parents’ background on students’ intention to become an entrepreneur. 1295 third-year students completed survey questionnaires. The results of this study will be useful for the universities lecturer to understand the students’ motivation and attitude in becoming an entrepreneur. Keywords: Islamic entrepreneurship, parents’ background, intention 1

Paper presented at International Muamalat and Entrepreneurship Conference organized by iCEPS10 at Carlton Hotel, Shah Alam 8th November 2014. Acknowledgment to the Ministry of Education for providing FRGS grant for this research project. 2 The corresponding author can be contacted by email at [email protected]

1.0 Introduction This paper examines the influence of parents’ background on students’ entrepreneur intention. It begins with a discussion on intention to become entrepreneur literature. The discussion then moves on to the parents’ background on children’s future career. Then, the paper explains the research methodology and results from data analysis. This paper contributes to theoretical and contextual development of Muslim students’ intention to become entrepreneur.

2.0 Literature Review The Prophet said: “Nine out of 10 livelihood comes from the effort of trading and 1/10 are from farming,” (Hadith. Nu’aim bin ‘Abdul Rahman. Kitab Ishlah Al-Maal: Juz’ 73). This hadith explains that the Prophet urged his followers to adopt trade as their profession. Business sustains profits if one is willing to work hard. This is explains in verse 29, Surah Fatir: “Verily, those who recite the Book of Allah, establish regular prayers and spend out of what We have provided them, secretly and openly, hope for a commerce that they have nothing to lose”. Profits gain from business not only benefits to the entrepreneur, but also to the economic growth (Lee-Ross & Lashley, 2009). It creates employment, fosters innovation and generates new ideas (Robson & Bennett, 2000).

Due to the importance of the entrepreneurial sector, it has become one of the national agendas in many countries (Ismail et al., 2009). In Malaysia, The importance of entrepreneurship to the establishment of the Ministry of Entrepreneur Development in 1995, clearly indicates the growing importance of the government role on the issue of entrepreneur (Ariff & Abu bakar, 2005). In supporting the government’s effort to encourage entrepreneurship, private and public higher learning institutions have included entrepreneurial education as an essential course for all students. 2.1 Intention to Become Entrepreneur Theory Reason Actions (Fishbein & Ajzen, 1975) and Theory of Planned Behaviour (Ajzen, 1991) are some of people’s intention theories. These theories were used by researchers in examining entrepreneurial intention. Researchers conducted entrepreneurial intention studies on post graduates students (Fatoki, 2010), secondary students (Paco et al., 2011),

undergraduates students (Ismail et al., 2009; Keong, 2008; Masruki et al., 2013) and other group of participants. Studies on students’ entrepreneurial in particular, studies found several factors that influence their intention including personality traits (Ismail et al., 2009; Obschonka et al., 2010; Pillis & Reardon, 2007), belief (Obschonka et al., 2010), attitudes (Liñán et al., 2005; Paco et al., 2011; Souitaris et al., 2007), environmental factors (Fatoki, 2010; Ismail et al., 2009), gender (Keong, 2008), family background (Mohamed et al., 2012; Tanveer et al., 2013), academics background (Mohamed et al., 2012) and attending courses on entrepreneurship (Ismail et al., 2009). In a recent study By Masruki et al, (2013), they found that income generation and independence or freedom also influence students’ entrepreneurial intention. Researchers also identified that culture has significant influence to entrepreneurial intention and varies between different cultures (Pillis & Reardon, 2007; Sajjad et al., 2012; Siu & Lo, 2013; Zali et al., 2011). In relation to Prophet’s encouragement for Muslim to become entrepreneurs, Sarif & Imran (2006) found that that the Muslim students prefer employment rather than entrepreneurship. The results contradict with entrepreneurial perspectives from Islamic point of views. Hence, this paper will contribute to knowledge by providing empirical evidence on the possible relationships between Muslim students entrepreneurial intention with parents’ background. 2.2 Parents’ Background Everyone is exposed to values, attitudes, feelings, and a climate for learning through family influences (Bear & Roeber, 1969). The family influence a child’s desires, his satisfaction and dissatisfaction, and his sense of values. Family also has profound influence on the evaluative aspects of the child’s development including his judgement of which career to pursue. This is because the family is the social group with which the child has direct contact. The social group determines not only the individual’s personality but also his vocational interests at some appreciable extent.

Behaviour patterns and training which the child learns from the family often determines his job perception and subsequent occupational decision. Roe (1957), Switzer (1962), and Onyejiaku (2001), among others have postulated some positive relationship between children’s early rearing experiences and their occupational choice, since children spend most

of their years at home and they naturally regard the family as their reference group with parents as significant figures.

Carter (1999) in his study supports the view that a child learns about occupations through examples of the parents as they visit their parents’ work places. If the impression there is good then the child seeks to identify with the occupation but if they are bad, the child rejects such occupation. Caplow (1994) and Wert (1997) in their separate studies found that career choice are inherited obviously and directly from parents. Furthermore, Miller (2000) in his study discovered that parental attitude and behaviour are positively associated with students’ career maturity.

3.0 Methodology In the study context, philosophy inquiry revolves around the issue of whether intention is an objective reality, or an aspect of subjectivity or the interaction between the two. For instance, intention can be seen as falling along the continuum of extreme objectivism to the other extreme of subjectivity. The present study’s ontological position is based on the Islamic worldview of ontology on what is reality. There are two domains of reality which are the seen reality and the unseen reality3 (Barise, 2005). Seen reality is known through faculties of sense (Azram, 2011) while unseen reality is unknowable through sense (Barise, 2005). As for the study’s epistemology, the researcher will follow Islamic epistemology in answering how knowledge can be acquired. There are two domains of knowledge according to Islamic epistemology: revealed knowledge (Azram, 2011) and acquired knowledge (Barise, 2005). Islam views the concept of human as the vicegerent of God and God is the ultimate source of both types of knowledge (Barise, 2005; Azram, 2011).

This study applies a mixed method research design based on the technical version in light of normative science by referring scientific findings back to the four major sources of Islamic knowledge.

Hypotheses H1 Parents’ background has significant relationships with intention to become entrepreneur.

3

See Quran Surah Al-Jinn Verse 26 and Surah al-Hashr Verse 22.

3.1 Data collection and analysis This study used an online survey created using Google since it is faster and cost effective. The final data collection process was conducted over a period of four (4) months, commencing from April 2014 until July 2014. The overall response to this survey was very positive with 1077 respondents participating in the survey. Please refer to table 1 for the respondents’ demographic profiles.

Table 1: Profile of survey respondents Profile Variable Gender

Faculty

Parent Entrepreneurship Background Students Entrepreneurship Experience

Frequency (%)

Male

259 (24%)

Female

818 (76%)

Language

92 (8.5%)

Law

124 (11.5%)

Qur’anic Studies

491 (45.6%)

Science and Technology

211 (19.6%)

Leadership and Management

155 (14.4%)

Father

175 (16.2%)

Mother

136 (12.6%)

Both None of Them

188 (17.5%) 578 (53.7%)

Yes

739 (68.6%)

No

338 (31.4%)

Females represent the majority of the respondents comprising 76% from the total respondents. Majority of the students came from the Qur’anic studies representing 45.6%. Majority of the students (68.6%) have prior experience with entrepreneurship activities.

4.0 Results More than 50% of the students’ parents do not have entreprenuership background while 17.5% students have both parents with entreprenuership background. In order to answer the hypothesis, correlation between parents’ background dimensions were tested with intention to become entrepreneur index. The correlation results are shown in the following table.

Descriptives intentionindex

95% Confidence Interval for Mean N

Mean

Std. Deviation

Std. Error

Lower Bound

Upper Bound

Minimum

Maximum

Father

173

5.0039

.85890

.06530

4.8750

5.1327

1.00

7.00

Mother

136

4.9755

.95808

.08215

4.8130

5.1380

1.00

7.00

Both

188

5.1135

.91732

.06690

4.9815

5.2455

2.33

7.00

None of them

574

4.7305

.92148

.03846

4.6550

4.8061

1.00

7.00

1071

4.8730

.92808

.02836

4.8174

4.9287

1.00

7.00

Total

ANOVA intentionindex Sum of Squares Between Groups

df

Mean Square

26.911

3

8.970

Within Groups

894.708

1067

.839

Total

921.619

1070

F

Sig. 10.698

.000

5.0 Discussion Prophet Muhammad entrepreneurship career is the best exemplar for Muslims to follow. This study attempts to identify whether parents’ background can influence students’ intention to become entrepreneurs. The literature review shows that parents’ background plays an important role in children’s career. The results support prior studies; parents’ entrepreneurship background influence students’ entrepreneurs intention. Therefore, it provides some theoretical implication by providing evidence that parents’ background plays an important role in entrepreneurship. In addition, in the context of Malaysia and Islamic universities, emphasis on the promoting Islamic entrepreneurship can increase the number of entrepreneurs in the industry.

6.0 Limitations This study is limited to students from an Islamic university that promote Islamic entrepreneurship therefore cannot be generalized to all universities in Malaysia. However, it provide some early evidence that the higher the level of religiosity, the higher the intention to become entrepreneurs.

7.0 Suggestions for Future Research Further research should be conducted to students from other universities.

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