FACTORS ASSOCIATED WITH ENTREPRENEURIAL INCLINATION: AN EMPIRICAL STUDY OF BUSINESS UNDERGRADUATES IN HONG KONG

Abstract

This study investigates the factors associated with entrepreneurial inclination. In particular, it tests whether entrepreneurial inclination is significantly associated with certain psychological, demographic and family characteristics. A self-administered, fixed-alternative questionnaire is administered to 200 business undergraduates in Hong Kong, resulting in a usable response rate of 58.50per cent. Descriptive statistics, t-tests, Chi-square tests and probit analysis are used to analyze the data. Overall, the results show that entrepreneurial inclination is significantly associated with psychological, demographic and family characteristics. In particular, probit analysis results indicate that at a 0.05 level of significance, entrepreneurial inclination is significantly associated with a greater need for achievement, higher propensity to take risk, more tolerance of ambiguity and greater innovativeness. Entrepreneurial inclination is also significantly associated with demographic and family characteristics such as sex (male), birth order (first-born) and family entrepreneurial inclination. The probit model has an overall holdout accuracy rate of 81.20 per cent.