EVALUATING THE IMPACT OF PERSONALITY TRAITS ON   TOURISM STUDENTS’ ENTREPRENEURIAL INTENTION

 

 

Nermin Morsy

Tourism Studies Department, Faculty of Tourism & Hotels, Alexandria University, Egypt, This email address is being protected from spambots. You need JavaScript enabled to view it.

 

ABSTRACT

Entrepreneurship is believed as a solution to unemployment problems especially in today's societies, which face vast economic and social challenges. In Egypt, it is believed that governments and NGOs have been offering support for the potential and actual entrepreneurs through variety of trainings and funds. Tourism and Hospitality sector is one of the top entrepreneurial sectors. On individual-level, it is argued that Entrepreneurial traits are keys for a person to be an entrepreneur. Thus, this study aims to examine the personality characteristics of tourism students regarding student’s entrepreneurial intention.

A questionnaire survey was distributed among tourism students across three Egyptian universities. Collected data were statistically analysed using SPSS. The findings indicate that there is a statistically significant relationship between agreeableness, risk taking prosperity, locus of control, innovation and socio-cultural background and entrepreneurial intention. Demographic attributes do not seem to play a significant role in fostering entrepreneurial intentions of students. Detailed findings related to each determinants of Entrepreneurial intention of tourism students and discussion of them will be explored further in the paper.

The paper contributes to the literature by empirically testing how some factors affect the entrepreneurial intention of university students. It is also one of the first comprehensive studies of the attitudes of undergraduates and freshly graduates toward entrepreneurship in Egypt. While the study is subject to some limitations, it is believed that these limitations can be overcome with future studies.

Key Words: Entrepreneurial intention, personality traits, contextual factors, Tourism students

 

 

1    INTRODUCTION

Entrepreneurship is of significance for contemporary career concepts such as flexible career, the boundary-less career, the post-corporate career, and employability (Gelderen et al., 2008). Entrepreneurs are an important source of economic development through producing new ideas and transforming them into profitable projects (Türker and Selçuk, 2009). Entrepreneurial activities provide employment opportunity, increase competitiveness, economic development and solve problems associated with inflation (Davidsson, 1995; Zahra, 1999; Setiawan, 2014).

Sectors such as Hospitality, leisure are considered as typical entrepreneurial activities which can therefore perform a crucial role in economic development (Altinay et a., 2012).  The Reasons for the high popularity of small businesses in tourism include the fact that smaller businesses are linked with the idea of a minimum of capital, little specific prerequisite qualifications are needed for most tourism-related businesses and the fact that the owner-managers are generally families, therefore, both the small business and entrepreneurship literature suggests the connections between entrepreneurs and small business owners (Jaafar et al., 2015).

Entrepreneurship in developing countries seems to be different from that of developed countries. It has been indicated that students from developing economies are more likely to see future careers as entrepreneurs and think more positively towards entrepreneurship than their industrialized European counterpart (Davey et al., 2011). This difference is of great significance to higher education (Arasteh et al., 2012).

All what mentioned above mentioned can be summed up that promoting entrepreneurship may be vital for the success of today's societies, which face enormous economic and social challenges (Audretsch, 2007). Traditionally, Egypt has relied heavily on the donor/aid culture. As Farid (2007, p. 430) has observed:

[. . .] although many millions of dollars are spent annually to Egypt by international organizations and donors in the name of empowering the poor, supporting the transition to a free economy, and promoting the development of entrepreneurs [. . .] Egypt’s overall business environment and its ability to create desperately needed private sector jobs, continues to be ranked below average when compared with the rest of the world; and thus there is a general agreement that Entrepreneurship is needed.  Besides, unemployment is still a severe social problem in Egypt. After accomplishing their higher education in the university, high percentage of university graduates cannot get a job (Setiawan, 2014).

Given the growing importance on entrepreneurship and the lack of empirical research in Egypt especially on student’s entrepreneurial intention profiles and since recent literature suggests that studies into tourism students’ intentions to be drawn in entrepreneurial endeavours are very rare (Gruel et al., 2010); this study seeks to characterize the student’s entrepreneurial intention profile of tourism students of the Egyptian universities’ as a predictor for future entrepreneurship trends (Yurtkoru et al., 2014)

The main research question is; which factors affect entrepreneurial intention of tourism students. To answer the research question, firstly, clear objectives have been set as follows;

1.      To describe the tourism student’s entrepreneurial intention profile in Egyptian universities.

2.     To identify the determinants of tourism student’s entrepreneurial intention.

 Secondly, to answer the study main question and to fulfil the study objectives, an extensive literature review followed by a fieldwork study throughout three Tourism and Hospitality faculties have been undertaken during last semester of students study before graduation as will be present in the forthcoming section followed by some conclusion and future implications.

 

2    Literature Review

Human behaviour has been predicted truthfully by intention (Krueger, 2008). It has been argued that there is no clear and consistent definition of entrepreneurial intentions (Küttim et al., 2014). Entrepreneurial intentions have been defined as the conscious state of mind that directs personal attention, experience, and behaviour toward planned entrepreneurial behaviour (Bird, 1988).

 More recently, Entrepreneurial intentions have been used in previous studies as a reference to own a business or become self-employed (either by setting up an own firm or taking over an existing one), as a pool of broader personal orientations, tendencies, desires, or interests that might lead to project establishment, and also as promising entrepreneurship including those who have only thought about establishing an own business and those who have taken more specific steps towards that (Thompson, 2009).

Researchers suggested that personal characteristics are significant in pursuing entrepreneurial activities. It has been suggested that personality as well as demographic factors and cultural background will predict who will become entrepreneur, therefore researches in the field considered the concept of entrepreneurial personality (Arasteh et al., 2012).

Personality traits include abilities (e.g., general intelligence, motives (e.g., need for achievement, power), attitudes (including values), and characteristics of temperament as overarching style of a person’s experiences and actions (Openness to Experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism, called the Big Five with the acronym OCEAN) (Brandstätter,2011p.223).

Meta-analytic findings indicate that the Big Five traits (i.e., extraversion, conscientiousness, agreeableness, openness to experience, and neuroticism) are relevant for entrepreneurship as well as specific personality traits (the need for achievement, risk taking, innovativeness, autonomy, focus of control and self-efficacy) (Rauch & Frese, 2007). Antoncic (2009) referred to previous researches concerning entrepreneurial personality characteristics and confirm the importance of the big five and related them to entrepreneur’s readiness of technological development. Obschonka et al. (2010) suggested that the entire personality may be worth more than the parts and, thus, consider individual patterns of Big Five traits rather than singular traits to be of importance for entrepreneurial intentions. Moreover, narcissism in correlation to self-efficacy, locus of control and risk propensity was evidenced to play a significant role in explaining entrepreneurial intentions (Mathieu & St-Jean, 2013). 

Although the results vary across the previous studies of personality traits and entrepreneurial intention, they often indicate a link between entrepreneurial intention and some personality factors, such as self-confidence, risk-taking ability, need to achievement, and locus of control (Turker and Selcuk, 2009).

Studies on entrepreneurship in the tourism area are narrow (Jafaar et al., 2011). In general, few researchers find entrepreneurs in the tourism industry to be innovative and willing to engage in risk-taking activities. The researchers find that the entrepreneurs are people with high internal locus of control, high achievement motivation and autonomy (Lerner and Haber, 2000), independence, and self-reliance (Schroeder, 2003). These traits, among others, have been recognized as significant attributes that contribute to the success of an entrepreneur.

According to the above mentioned, Personality has been found to be the predominant predictor of entrepreneurial intention.  However, whereas some researchers emphasized the central role of personality (Rauch & Frese, 2007), others argued that this may be misleading as more factors that mediate the effects of personality traits on entrepreneurial outcomes have to be considered (Turker and Selcuk, 2009; Altinay et al., 2012; Yurtkoru et al., 2014 ). Turker and Selcuk (2009) debated that a person is surrounded by an extended range of cultural, social, economic, political, demographical, and technological factors. Consequently, personality traits cannot be isolated from these contextual factors.  They developed entrepreneurial support model (ESM) which suggest that entrepreneurial intention is a function of structural support (the support of public and non-governmental organizations), educational support and relational support (supports of family and friends). Yurtkoru et al. (2014) also examined the same contextual factors as antecedents of personal attitude and perceived behavioural control; in return they found they have an impact on entrepreneurial intention.

Studies have shown that entrepreneurship education programs contribute to the development of entrepreneurial intentions and exert positive impact on these intentions (Küttim et al., 2014). Türker and Selçuk (2009) argue that university education is an efficient way for obtaining necessary knowledge about entrepreneurship. According to results of their research, university education has a positive impact on entrepreneurial intention. Setiawan (2012) has shown that entrepreneurship education had positive impact on the strengthened entrepreneurial characteristics among students. Remeikiene et al. (2013) concluded that entrepreneurial intention is commonly influenced by personal factors (personality traits) which can be developed acquiring entrepreneurial education. The results of the research have confirmed that the main factors of entrepreneurial intention can be developed during the study process. In contrast, Gurel et al., (2010) found that education does not appear to foster entrepreneurial traits and intentions of university students.

Regarding the family background, Wang &Wong (2004) found three background factors; gender, family business experience and education level significantly affect interests in starting one’s own business. A business tradition in the family impacts the intention to start a business by preparing individuals with the skills and vision of entrepreneurial activities (Altinay, 2008). Business knowledge and interest are enhanced by family business background which exposes the person to a business environment from a young age. A career selection decision of a young person might be influenced by family members and friends; however, there is no significant impact of relational support on entrepreneurial intentions (Türker and Selçuk, 2009).  In contrast, family entrepreneurial background and innovation have been proved to impact the intention to start a new business (Altinay et al., 2012).

Along with the aforementioned, the study seeks to characterize the tourism student’s entrepreneurial intention profile of Egyptian Tourism students more specifically through;

1.     Identifying the most effective traits on entrepreneurial intention.

2.     Investigating the effect of the contextual factors on entrepreneurial intention.

A holistic approach will be to investigate entrepreneurial intention in relation to the influences of traits, socio-cultural backgrounds and education of individuals. In particular, it will respond to Altinay et al. (2012) call for a more holistic approach when researching the factors that influence entrepreneurial intention.

 

3    Methodology of the study

A quantitative approach has been adopted to examine the relation between the study variables (Neuman, 2013).  The survey has been used as a research method throughout three Tourism and Hospitality faculties in three universities namely, Alexandria University, Arab Academy for Science and Technology (Business school) and finally, Pharos University during spring 2017.

A questionnaire has been uploaded online, within last semester students (before graduation), and postgraduates in the three tourism faculties in order to obtain as actual views as possible. It is expected that higher education which is provided by universities can create a potential of future entrepreneurs (Remeikiene et al., 2013).

181 valid responses have been returned (this was very accepted percentage due to the small total of students in tourism faculties during the last five years).  All participants were asked to respond to a self-report questionnaire entitled “Entrepreneurial intention of Tourism students”. This questionnaire consists of 33 items, and takes around 10 minutes to complete. Participants are required to respond to the items on a forced five-point Likert scale ranging from ‘1’ = totally agree to ‘5’ = totally disagree.

The 33 items measures all the Entrepreneurial traits, the socio-cultural background, as well as the education as independent variables and finally the variables entrepreneurial intention as the dependent one.

Entrepreneurial traits items encompass a mix of all the big five with the most traits associated with entrepreneur namely; risk taking propensity(openness), innovativeness(openness), tolerance of ambiguity(Neuroticism), Internal locus of control (Neuroticism), Conscientiousness, Extraversion and Agreeableness. All traits items are adapted from a number of instruments used by the previously reviewed studies within the literature. For validity purpose, the questionnaire questions had been reviewed by a couple of professors in the faculty of Tourism and Hospitality. Accordingly, questions had been reworded for clarity. In order to assess the reliability of survey questions, the researcher obtained a coefficient Cronbach’s Alpha score.

Table(1) Reliability Statistics

Cronbach's Alpha	N of Items
.751	24

The Table 1 shows that the coefficient of consistency for survey is 0.751. It declares that this survey is reliable.

 

 

4    Results and discussion

After research design and data collection phase, data were analysed by using SPSS software.  Different statistical tests have been accomplished for data interpretation. A descriptive analysis has been established to describe the sample, the Pearson correlation coefficient to measure the relationship between different variables as well as the Chi-Square test to measure the association between some qualitative variables as gender and department on entrepreneurial intention.

Table (2) Sample Characteristics

First, a profile of the sample has been established by descriptive statistics (frequency distributions) as shown in Table 2. The results show that the ratio between males and females was close.  The number of tourism students was more than double hotel studies dept. This reflects the reality that the tourism studies department have more students within the faculties. Lastly, Alexandria University has the majority of the sample due to the real ratios within the population.

 

Personality traits		Agreeableness	Extraversion	Openness (innovation)	Openness (Risk taking)	Conscientiousness	Neuroticism (Locus of control)	Neuroticism (ambiguity tolerance)
	Mean	2.012	2.021	2.022	2.028	2.095	2.338	2.500
	Std. Deviation	.605	.473	.779	.573	.549	.544	.614
	Rank	1	2	3	4	5	6	7

Table 3 profile shows the personality traits of the sample. As the five-point Likert scale of the study questionnaire was ranging from ‘1’ = totally agree to ‘5’ = totally disagree. Thus, number one trait has the least mean. Agreeableness, which represents courteous, trusting, cooperative, and tolerant has the first rank among students with a mean score of (2.012), followed by extraversion that  refers to Sociable, self-confidence, assertive, responsible and active person with a mean score of (2.0210). Openness indicates imaginative, cultured, broad-minded, intelligent in the big five, innovation and risk taking in the entrepreneurial traits occupied the third and fourth rank by means of score (2.022&2.028). In the fifth rank arose conscientiousness, the person who is being responsible, organized, hardworking, achievement-oriented, and persevering and their mean scored (2.0953). Finally, the sixth and seventh rank was occupied by neuroticism which means embarrassed, emotional, worried, and insecure person and concerning entrepreneurial traits, it refers to locus of control (Locus of control, which relates to an individual’s perceptions of his/her ability to influence events in life ( Rotter, 1966) along with ambiguity tolerance with means score of (2.3389 & 2.5000). It can be also noted that the standard deviations range from 0.473 to 0.614 which indicates compatibility between respondents’' opinions. 

 

A chi square test was conducted to show whether there is an association between students’ gender and department, in one hand, and the entrepreneurial intention. For gender Chi squared  =7.810 p value =.452 and for department, Chi squared  =7.454 p value =.489. This indicates that there is no association between Gender, department and intention respectively.

This contradicts the result of some researches. Maes et al., (2014) that indicated how gender affects drivers of entrepreneurial intentions. They presented an insight that entrepreneurship is valued by women for reasons not found in a managerial career path (such as finding more work-life balance. Santos et al., (2016) showed that men consistently exhibit more favourable intentions than women do. This also challenges the results of Arasteh et al. (2012) that exposed some differences existence in students' genders academic levels and educational groups for some aspects of entrepreneurship.

Table (5) Pearson correlation for study variables

 

As shown in table (5) Pearson correlation analysis designated significance relation among a number of study variables. Firstly, personality traits were significantly related to entrepreneurial intention. Risk taking scored the strongest relation Pearson correlation coefficient r= 220^** sig. (2-tailed) = .003, followed by Agreeableness r= .195^** sig (2-tailed) = .009, Locus of control with r=.175^* sig (2- tailed) = .019. Finally innovation r= .170* sig. (2-tailed) = .022.

These results are in line with the results of Gurel et al. (2010) who also found that risk-taking propensity is an influential factor of entrepreneurial intention. Their study also asserted that innovation lead to higher levels of entrepreneurial intention. Locus of control has been found to be positively related to the entrepreneurial intentions of students by Sesen et al. (2013). For them, internal locus of control emphasizes the belief that events are under the control of a person’s behaviour or characteristics, therefore, it motivated risks and innovation. The current study results also confirm that as shown in table (5), there is strong correlation between locus of control and innovation r= .342^** sig. (2-tailed = .000). Agreeableness was found to have significant relation with risk taking r=.236^** sig. (2-tailed) = .001, locus of control r=.426^** sig. (2-tailed) = .000 and innovation r=.423^** sig. (2-tailed) = .000.

Socio-cultural background relates very strongly to entrepreneurial intention (correlation coefficient=277, sig. (2- tailed) = .000. Data reflected that family business tradition influences the entrepreneurial behaviours of students. Students who have been grown in families working in business and have a social-business network are more likely to start a new business. This opposes the findings of Türker and Selçuk (2009) who proved that entrepreneurial intention of respondents was not affected by the support of their family and friends. The current study supports those of Altinay et al. (2012) and Yurtkoru et al. (2014)

Finally concerning education, results found a significant but a slight correlation between education and entrepreneurial intentions r= .146, sig. (2-tailed) = .049. This result is compatible with the previous studies displayed within the literature and the result of Bae et al. (2014) concerning the relation between business education and entrepreneurial intention. Current study also reveals strong relation between education and some entrepreneurial traits such as (agreeableness) r=.259^** sig. (2-tailed = .000 and risk taking r= .235^** sig. (2-tailed) = .001.

Table (6) Mean and standard deviation of education effect on Entrepreneurial intention

	Strongly agree		Agree		Neutral		Disagree		Strongly Disagree		Mean	Standard Deviation
	FF	&%	FF	&%	FF	%%	FF	%%	FF	&%
The nature of Faculty’s curriculums are theoretical	228	115.5	444	324.3	556	331	339	221.5	114	77.7	2.81	1.16
Faculty’s curriculums are applicable and vocational enough	325	113.8	447	226	553	229.2	940	222	116	99	2.87	1.16
Faculty’s curriculums qualifies me to start my own business in Tourism and hospitality industry	118	110	551	228	668	337.5	227	115	117	99.5	2.84	1.08

Table (6) illustrates that the nature of education provided by Tourism faculties considered as referred to by Gurel et al. (2010) a combination between professional education that develop students’ ability to interpret, evaluate and analyze by providing theoretical concepts and vocational education, on the other hand which communicate skills through highly practical content. Entrepreneurial developments curriculums seem to be specify good relation with Entrepreneurial intention.

Table (7) Mean and standard deviation for students’ entrepreneurial intention

	Strongly agree		Agree		Neutral		Disagree		Strongly Disagree		Mean	Standard Deviation
	FF	&%	FF	&%	FF	%%	FF	%%	FF	&%
I prefer to work in a well-known tourist establishment rather than starting my own business	335	119.5	56	31	558	32	22	112	110	55.5	22.53	1.08
I prefer to start my own business in tourism field rather than accepting a job even in well-known tourist establishment	226	114	446	225	555	330.3	443	223.7	111	66	2.81	1.12
I intent to be an entrepreneur	229	227	550	227	447	226	223	112.4	112	76.6	2.44	1.20

It must be considered that measuring entrepreneurial traits are mainly built on descriptions of how people think, feel, and act in a variety of situations. These indicators of internal causes are interacting with the external factors of a person’s experiences and actions. Thus, the intention of establishing a person own business is an effect of this trait with other factors (Brandstätter, 2011)

Table (7) displays a higher entrepreneurial intention within the students throughout the three universities. 45% of the sample is intending to have private business. Some other variables need to be considered such as the structural support of the government, the resource availability such as the capital. However, for the purpose of the current study entrepreneurial intention is presented among tourism students.

 

5    ConclusionS

Previous researches suggested the need for more researches in the field of graduate entrepreneurship especially in the developing world to support more understanding of issues evolving around graduate entrepreneurial intentions and its determinants (Nabi and Linan, 2011).

This study contributes to the slim body of research on the area of tourism entrepreneurial intention. It focused on tourism students, who are regarded as the probable driving force of entrepreneurship (Gruel et al., 2010).  It demonstrated the entrepreneurial intention profile of tourism students within three faculties of three different universities in Egypt.

The study objectives have been supported through the empirical study.  A strong correlation has been found between entrepreneurial intention and its antecedents such as traits.  Among these traits closely associated with entrepreneurial potential are agreeableness, risk taking prosperity, locus of control and innovation. Socio-cultural background of having an entrepreneurial family and social network of entrepreneurs appears to be an important predictor in the entrepreneurial intention of tourism students.  Thus it could be argued that a Combination of psychological traits in interaction with socio-cultural background features creates individuals who are more probable contenders to start a business.

The study findings also indicate that education have a slight statistically significant role in affecting entrepreneurial intention of tourism students. While, it exposes strong relation between education and some entrepreneurial traits such as agreeableness r=.259^** sig. (2-tailed= .000) and risk taking r=.235^**sig. (2-tailed= .001). Thus, it confirms the need to more focus within the Tourism and hospitality education, in Egypt, on entrepreneurial developmental curriculums that encourage students to think and behave more entrepreneurially, at the same time equipping them with the skills to start their own projects after graduation. Although there is no agreement on criteria of entrepreneurship education “universities should, at least, encourage the development of creative ideas for being an entrepreneur provide the necessary knowledge about entrepreneurship and develop the entrepreneurial skills” (Türker and Selçuk, 2009p. 155). Similarly to Gurel et al. (2010), it is agreed that there are many other variables that may influence students’ inclination towards setting up their own business. Thus, some explanatory and exploratory studies should be considered what could be done in universities to encourage the entrepreneurial spirit of students.

The results of the study also supports the claim of Sesen (2013) that the relation between personality traits and entrepreneurial intentions is not linear and the findings about the significance of the effects those traits have on entrepreneurial intentions often are contradictory. This has been reflected through the difference found between some of the study results and those of the prior studies.

A number of limitations can be identified throughout the study. First, longitude data could have giving more valid explanation for some variables such as education. Secondly, larger sample including other universities would make the investigation more comparative and generalizable. Lastly, qualitative data in addition to the survey could help providing some more detailed explanation through exploring views and opinions regarding the contextual factors. More researches in the future can overcome the current study limitation.

 

 

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