Copyright 2003 by
Baylor University
Enterprise Education:
E T&P Influencing Students’
Perceptions of
Entrepreneurship
Nicole E. Peterman
Jessica Kennedy
Introduction
Early research on the factors that influence the decision to start a new business
focused on trait or personality characteristics of individuals (Brockhaus, 1980; 1982;
McClelland, 1961). Models were also developed of the entrepreneurial process that in-
corporated behavioral and situational factors (Gartner, 1985; Van de Ven, Hudson, &
Schroeder, 1984). More recently, intentions models (Bird, 1988; Boyd & Vozikis, 1994;
Shapero, 1975; Shapero & Sokol, 1982) that focus on attitudes and their antecedents have
been proposed to better explain the entrepreneurship process. For example, Davidsson
(1995) related personal variables including age, gender, education, vicarious experience
and experiences of change to a variety of attitudes that influenced conviction and entre-
preneurial intentions.
Despite the recognition that education and prior entrepreneurial experiences influ-
ence people’s attitudes towards starting their own business, the impact of entrepreneur-
ship or enterprise education, as distinct from general education, on attitudes or
perceptions of entrepreneurship has remained relatively untested (Donckels, 1991;
Krueger & Brazeal, 1994). University-based entrepreneurship curricula have attracted the
Intentions Models
Some early researchers hypothesized that entrepreneurs are less well educated than
the general population (Jacobowitz & Vilder, 1982). More recent evidence suggests that
people who start businesses have a higher level of education than people who do not
(Bates, 1995; Bowen & Hisrich, 1986). In particular, the study of census data (Robinson
& Sexton, 1994) provides convincing evidence that business owners are more highly
educated than the general public. Despite the relationship demonstrated between level of
education and business ownership, it has been argued that formal education in general
does not encourage entrepreneurship. Rather, it prepares students for the corporate domain
(Timmons, 1994), promotes a “take-a-job” mentality (Kourilsky, 1995) and suppresses
creativity and entrepreneurship (Chamard, 1989; Plaschka & Welsch, 1990).
To foster entrepreneurship, specialised courses have become increasingly common
in tertiary institutions (Solomon & Fernald, 1991) and enterprise education has been pro-
moted to encourage entrepreneurial behavior (Donckels, 1991; Gasse, 1985). Reviews
of the literature on enterprise and entrepreneurship education (Dainow, 1986; Gorman,
1997) and of particular entrepreneurship support programs (McMullan et al., 2002)
provide some evidence that these programs are successful in encouraging entrepreneurs
to start businesses, or improve the performance of businesses. However, as the reviews
state, the studies tend to have methodological limitations in that in general they do not
measure pre- and post-test, and also lack control groups. Moreover, the purpose and eval-
uation of these programs need to be carefully considered, as the commonly used subjec-
tive participant satisfaction measures are not correlated with objective measures of
subsequent venture performance (McMullan, Chrisman, & Vesper, 2001).
This study focuses on an enterprise education program and its effect on perceptions
of entrepreneurship. Entrepreneurship and enterprise education programs that are
described as best practice, such as Mini Society, Youth Empowerment and Self-
Sufficiency and Youth Achievement Australia (Breen, 1999; Kourilsky & Carlson, 1996),
have similar characteristics and incorporate interactive learning, experience-based learn-
ing, role models and community and business links. The likely effect of this type of edu-
cation on perceptions of entrepreneurship can be explained through theories of social
learning and self-efficacy.
Career socialisation theory proposes that the decision to initiate a career is influenced
by many social factors including exposure to educational experiences (Dyer, 1994).
Enterprise education programs provide social experiences, such as opportunities to exer-
cise significant responsibilities, to start one’s own business and to observe role models.
Perceived
H1ab Desirability
H6ab
Exposure to
Entrepreneurship: Participation in H4
Breadth and H3ab an Enterprise
Positiveness Education
of prior experience Program H5
H7ab
Perceived
H2ab Feasibility
Table 1
Sex: Male 40 50
Sex: Female 77 69
Age: 15 6 1
Age: 16 92 103
Age: 17 8 9
Age: 18 11 6
School grade: 11 110 117
School grade: 12 7 2
The sample was obtained by first identifying schools in Queensland where the YAA
program was being offered and was at the introductory stage. A self-administered ques-
tionnaire was mailed to the teachers at 17 schools. It was completed by 117 students who
were beginning a YAA program and 119 students from the same schools and the same
class who had declined to enrol. The sex, age and school grade of students in the test and
control group are described in Table 1. A second questionnaire was sent at the end of the
YAA program, five months later, and the same students were asked to complete it. The
second questionnaire was completed by 112 YAA participants and 112 control partici-
pants. Although participation in the research was voluntary, the questionnaire was com-
pleted by all students who were in class on the day that it was administered. A total of
12 of the post-test questionnaires were not returned, five from the YAA group and seven
Intentions
Do you think you will ever start a business? Yes/No
Perceived feasibility
How hard do you think it would be? Very hard = 1; Very easy = 7
How certain of success are you? Very certain of success = 1; very certain of failing = 7
How overworked would you be? Very overworked = 1; Not overworked at all = 7
Do you know enough to start a business? Know everything = 1; Know nothing = 7
How sure of yourself are you? Very sure of myself = 1; Very unsure of myself = 7
Perceived desirability
I would love doing it. I’d love doing it = 1; I’d hate doing it = 7
How tense would you be? Very tense = 1; Not tense at all = 7
How enthusiastic would you be? Very enthused = 1; Very unenthusiastic = 7
Entrepreneurial experience
Have your parents ever started a business? Yes/No
Has anyone else you know started a business? Yes/No
Have you ever worked for a small or new company? Yes/No
Have you ever started a business? Yes/No
Positiveness of experience
For each of the 4 entrepreneurial experience
questions, the following question was asked:
Has the experience been positive or negative? Yes/No
from the control group. Three YAA participants and one control group member were
deleted from the data set because they recorded that they had been exposed to other entre-
preneurial experiences during the period of the program. The post-test sample therefore
consisted of 109 YAA participants and 111 control group members.
Both questionnaires measured entrepreneurial intentions and perceptions of the desir-
ability and the feasibility of starting a business for both the YAA and the control group.
The first questionnaire also measured the breadth and positiveness of prior entrepreneurial
experience for both groups. Questions are shown in Table 2.
by finding the mean of responses rather than the sum. Students varied in their number of
prior entrepreneurship experiences, and positiveness may not be additive, i.e., a person
with four positive prior experiences may have a similar perception to one with two pos-
itive experiences. Using the mean rather than the sum also reduces the correlation
between breadth and positiveness of experience, making it easier to interpret the results
of the analysis. Those participants with no prior entrepreneurial experience were not
included in the analysis of positiveness of prior experience.
Results
Comparing Prior Experience and Perceptions of the YAA and Control Group
Significance of
Effect YAA Control difference
Table 5
Eta
Effect F Value Significance Squared
Perceived Desirability
ANOVA
Group 24.59 <0.001 0.101
Time 12.52 <0.001 0.054
Group*Time 18.88 <0.001 0.08
Simple Main Effects
Time—YAA 18.87 <0.001 0.149
Time—Control 0.87 0.354 0.008
Perceived Feasibility
ANOVA
Group 25.31 <0.001 0.104
Time 40.52 <0.001 0.157
Group*Time 63.34 <0.001 0.225
Simple Main Effects
Time—YAA 60.32 <0.001 0.358
Time—Control 3.92 0.05 0.034
significantly higher at post-test than pre-test, whereas the control group’s was unchanged.
Feasibility perceptions of the YAA group were also significantly higher for post-test than
pre-test, whereas the control group’s were significantly lower (Table 5). Box’s M test
showed that the assumption of homogeneity for these tests was violated, but with large
and equal sample sizes the analysis is robust (Hakstian, Roed, & Lind, 1979). Hence there
is support for hypotheses 4 and 5.
The next set of hypotheses relate to breadth and positiveness of prior experience. To
test the hypotheses using ANOVA, breadth and positiveness of experience were recoded
into high/low categories because of the skewness of the data.
Hypotheses 6ab and 7ab stated that participants with low breadth and positiveness
of experience are likely to record greater increases in perceived desirability and perceived
Eta
Effect F Value Significance Squared
feasibility from the enterprise education program than participants who enrol with a high
level of prior experience or very positive prior experience. Two three-way mixed design
ANOVA were conducted to analyse the data. The three factors included to measure effects
on perceived desirability and perceived feasibility were breadth (low and high), posi-
tiveness (low and high) and time (pre-test and post-test).
To test hypotheses 6ab and 7ab, repeated measures ANOVAs were performed. For
perceived desirability, the ANOVA showed a significant effect for time and for positive-
ness and time, with perceived desirability increasing from time one to time two (Table
6). A simple effects analysis showed that there was a significant time effect for both low
and high positiveness groups. There is therefore support for hypothesis 6b but not hypoth-
esis 6a. Similarly, the time/positiveness interaction was also significant for perceived
feasibility, and the simple analysis showed a significant change in both low and high
positiveness groups (Table 7). Hypothesis 7b is supported but not hypothesis 7a.
Discussion
The major issue examined in this article is the effect that participation in the YAA
program has on perceptions of the desirability and feasibility of starting a business. Data
collected at the beginning of the YAA program confirmed that the positiveness of a
person’s prior experience affects perceptions of the desirability of starting a business
(hypothesis 1b). Positiveness of prior experience was not related to perceptions of feasi-
bility (hypothesis 2b), nor was breadth of experience related to perceptions of desirabil-
ity (hypothesis 1a). These results accord with those of Krueger (1993) in his path analysis.
In contrast with the Krueger (1993) study, this study found that breadth of experience
was not significantly related to perceived feasibility (hypothesis 2a). Also perceived desir-
ability and feasibility were correlated in this study, whereas they were not related in
Krueger’s study. These differences may result from the omission of propensity to act as
a variable in the model tested. They may also be related to the age of the students tested.
Eta
Effect F Value Significance Squared
Students in high school may not be concerned with the feasibility of starting a business
because the event is too remote. Rather, they may focus on the direction that their
studies and/or work experience should take to prepare them for a career. Hence they may
be concerned with the desirability of various occupations but not their feasibility at this
stage.
As expected, the students who chose to participate in the YAA program recorded sig-
nificantly higher breadth of prior experience (hypothesis 3a) and positiveness of experi-
ence (hypothesis 3b) than the control group. Analysis of the respondents’ breadth of
experience showed that 80% of YAA participants had prior entrepreneurial experience.
It was a surprising result that so many participants, who are still in high school, recorded
such broad experience. Given this result, it was expected that students who were plan-
ning to participate in the YAA program would compare their prior experiences to their
expectations about what the YAA experience would be like. This comparison would influ-
ence perceptions of positiveness of their YAA experience and perceptions of desirability
and feasibility.
It is implicit in hypotheses 3a and 3b that YAA participants will have higher per-
ceptions of desirability and feasibility than the control group. Additional analysis proved
that the former was true ( p = 0.016), but the latter was not ( p = 0.982). The results suggest
that respondents’ exposure to and interpretation of their entrepreneurial experiences has
stimulated a desire to start their own business, but has not affected their perceptions of
feasibility. This may be because their prior experiences have not offered hands on or
experiential learning in a supportive environment and thus the opportunity for enactive
mastery.
The above results indicate that the YAA participants may have a predisposition
towards entrepreneurship prior to their participation. Although this is a weakness in the
study, the main focus of the study is on the change in perceptions, which is not affected
by initial differences between the control and test group.
Hypotheses 4 and 5, that participation in the enterprise education program would
positively increase perceptions of desirability and feasibility, were supported. There was
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