Updated: Nov 8th, 2024

Entrepreneurial Intention in Developing Countries Research Paper

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Table of Contents

Introduction
Literature Review
Method
Results
Limitations and Conclusion
Works Cited

Introduction

Many aspects of life are viewed and approached differently by people from developed and developing countries. The state’s economic prosperity affects not only its business opportunities but also the nation’s perception of making money and building a career. Therefore, research focused on developing countries is essential for understanding their operation outside of perspectives offered by developed nations.

One of the major topics in business research is entrepreneurship – the creation of a business by one or a group of individuals. This venture requires finances, resources, and, most importantly, motivation. Here, the idea of entrepreneurial intention has to be considered. According to Nieuwenhuizen and Swanepoel, entrepreneurial intention can be described as one’s conviction and desire to start a new business. This term includes not just the thought about creating a company, but a certain level of commitment and an understanding of the principles of entrepreneurship.

This particular topic has to be discussed in the context of developing countries, in particular, because they present different opportunities to their residents in comparison to developed nations. Some of these states may not have government systems for the support of small businesses. Others may have cultural barriers to entrepreneurship rooted in the collectivist beliefs, cultural background, or general negative view of self-employment. Thus, the factors affecting people’s entrepreneurial intention can also be unique to this group. This research is based on the literature review and analysis of studies looking at people’s entrepreneurial intention in various developing countries. It aims to answer such questions as to what perceptions and motivations people have, what challenges they encounter when creating a venture, and how these countries’ economies or sociocultural factors impact entrepreneurial intention.

Literature Review

The idea of entrepreneurial intention is highly investigated in the context of developing countries, but most studies use a limited sample and focus on one nation, which does not result in a broad view of the topic. However, it provides one with a solid foundation for a literature review. Table 1 describes the main information about each paper in alphabetical order – the country under investigation, the main topic, the factors that increase entrepreneurial intent as well as barriers to it, and the authors’ final thoughts.

The central issue is listed to establish which question is the most interesting to the authors, thus showing the potential limitations of their conclusions. Notably, some studies do not talk about barriers and positive influences at the same time. From this table, one can see which of the concepts are found to be the most beneficial for the entrepreneurial intention in developing countries, and which barriers are the most detrimental.

Table 1. Summary of the research on entrepreneurial intention in developing countries.

Reference No.	Source Author(s)	Country	Central Issue(s)	Increasing Factors	Barriers	Conclusions
[1]	Adekiya and Ibrahim	Nigeria	Culture and education	Entrepreneurial training, information dissemination		Specific training was found to increase entrepreneurial intention significantly
[2]	Aleidi and Chandran	Saudi Arabia	Gender and institutional environment, IT	Perceived opportunities, role models, entrepreneurial self-efficacy, computer skills, personal innovativeness	Fear of failure, society’s culture	In Saudi Arabia, women’s entrepreneurial intention in IT depends on sociocultural and technological factors
[3]	Amanamah et al.	Ghana	Barriers for university students	Less strict regulations, self-confidence	Capital, political environments, resources, skills, corruption	In a developing country, economic and legal factors are more influential than sociocultural ones
[4]	Ambad and Damit	Malaysia	Undergraduate students’ intention	Personal attitude, relational support, behavioral control		Peer and family support, as well as a positive view of entrepreneurship and confidence, are the most valuable in driving intention, while education and government assistance are not as crucial
[5]	Ayodele	Nigeria	Demographic, socioeconomic, and personal characteristics in adolescents	Self-efficacy, status, locus of control		Motivation programs and counseling should be introduced in schools to improve entrepreneurial intention
[6]	Chandran and Aleidi	Saudi Arabia	Gender stereotypes and norms	Entrepreneurial self-efficacy, view of entrepreneurship, social norms, experience	Gender stereotyping	Gender stereotyping plays a negative role in driving entrepreneurship
[7]	Choo and Wong	Singapore	Triggers and barriers	Intrinsic and extrinsic rewards, independence, and autonomy	Lack of capital, skills, or confidence, costs, personal hardships	Systemic barriers and personal fears act as barriers, while intrinsic motivation and risk-taking increase intention
[8]	Fatoki	South Africa	Entrepreneurial intention in graduates	Employment, creativity, autonomy, economic situation, and exiting capital	Risk, skills, lack of capital, economy, crime	Entrepreneurship education is suggested as a way to overcome low intention, developing creativity, self-efficacy, and risk-taking
[9]	Fitzsimmons and Douglas	India, China, Thailand, Australia	Cross-cultural analysis of attitudes	Supportive environment, risk tolerance, independence,	Risk aversion, age, work attitudes	Income, risk, independence, work effort, and ownership greatly affect people’s view of entrepreneurship – more risk-averse individuals do not have strong intentions for creating a business
[10]	Gelard and Saleh	Iran	Contextual factors	Education, institutional support		Specific courses and an inspiring environment help students develop a positive view of entrepreneurship, but the government should help new business creators through policy and financial assistance
[11]	Gurbuz and Aykol	Turkey	Determinants for young graduates	Entrepreneurial parents, perceived behavioral control, supportive environment, training, gender (male)	Country’s developing stage, social norms	Previous experiences, self-confidence, and a supportive environment positively affect intent, but in developing countries, the risk of failure is a great barrier
[12]	Hussain and Hashim	Pakistan	Gender in developing countries	Attitude, behavior control, subjective norms – for men; Attitude and behavior control – for women		Social norms are not as impactful on entrepreneurial intentions as predicted. Women should receive government support to increase perceived behavior control
[13]	Hussain and Norashidah	Pakistan	Entrepreneurial education	Theoretical knowledge, social networking, attitude, behavioral control		Specific entrepreneurship-related information, as well as personal behavior, positively impact intention
[14]	Ibrahim and Lucky	Nigerian students in Malaysia	Environment, skills, and professional orientation	Skills and entrepreneurial orientation		The environment is not found to be as important as people’s personal view of entrepreneurship and acquired skills
[15]	Ismail et al.	Malaysia	Big-Five personality and contextual factors	Extraversion, close support, openness, entrepreneurship courses		Personality and family support greatly affect one’s intentions – openness and curiosity are related to entrepreneurship
[16]	Karimi et al., “The Impact of Entrepreneurship Education”	Iran	Entrepreneurship education	Elective and compulsory training programs		Both compulsory and elective courses in entrepreneurship have a positive impact on student’s intention, self-efficacy, and perceived behavioral control
[17]	Karimi et al., “Understanding Role Models”	Iran	Gender and role models	Male gender, positive role models, attitude	Social pressures, local environment	In Iran, the tumultuous economic situation lowers people’s intention regardless of gender, but men, having less societal pressures and more role models, are more inspired than women to become entrepreneurs
[18]	Koe et al.	Malaysia	Millennial generation	Knowledge, social networking, prior experiences		While personality traits and self-efficacy have a positive effect on one’s intent, education and ties are the most valuable in driving motivation
[19]	Koe	Malaysia	Individual Entrepreneurial Orientation (IEO)	Proactiveness, innovativeness, positive attitude, education,		Student’s individual qualities contribute to their intention, especially their desire to innovate and create a unique product or service, while risk-taking is not as important
[20]	Malebana, “Entrepreneurial Intentions”	South Africa	Rural university students	Attitude, behavior control, subjective norms		In rural South Africa, the theory of planned behavior predicts students’ entrepreneurial intention
[21]	Malebana, “The Effect of Knowledge”	South Africa	Knowledge of entrepreneurial support	Government support, knowledge of support	Lack of information	Individuals’ awareness of government programs for entrepreneurs raises their intention
[22]	Mehtap et al.	Jordan	Young women’ entrepreneurship	Education system support	Lack of concrete initiatives	Women’s opportunities and a supportive academic environment reduce barriers to entrepreneurship, but their effect is limited
[23]	Nasar et al.	Pakistan and Vietnam	Entrepreneurial intention in the short- and long-term	Attitude, perceived behavior control, subjective norms, peer support, government assistance	Lack of resources, risk	Personal attitudes have an effect on short-term intention, while support positively impacts long-term intention
[24]	Nieuwenhuizen and Swanepoel	South Africa and Poland	Master’s business students	Behavioral control, positive attitude, family and peer support, networking, self-efficacy		In developing countries, behavioral factors and support play a prominent role in entrepreneurial intention
[25]	Pihie	Malaysia	Career choice and self-efficacy	Positive aspiration, self-efficacy, particular teaching strategies,	Lack of competencies	Knowledge in business, marketing, and management, as well as one’s positive aspirations, increase entrepreneurial intention
[26]	Pihie and Bagheri	Malaysia	Self-regulation	Self-efficacy		Self-efficacy is the main factor in increasing entrepreneurial intention, while self-regulation strengthens this link
[27]	Saeed	Pakistan	Organizational and institutional factors	Supportive government environment – regulations, policies, programs	Lack of university support	Policies benefiting entrepreneurs increase intention, while the lack of assistance from universities has a negative impact
[28]	Saraf	India	Determinants	Part-time work experience, social networking	Gender is not a barrier	In India, connections and personal experiences increase entrepreneurial intention in men and women
[29]	Sesen	Turkey	Personality and environment	Individual factors – self-efficacy, locus of control; Environmental factors – social networking, capital		The combination of personal beliefs and systemic support positively affects intention
[30]	Setti	MENA countries	Youth and gender, education, income, and occupation	Higher education, unemployment, high household income, male gender	Cultural restrictions	The fear of unemployment and education play a significant role in inspiring young entrepreneurs, but women are less motivated due to societal constrains
[31]	Siu and Lo	China and Hong Kong	Individualism-collectivism orientation	Relationships, peer support, social norms, self-efficacy		In China, the role of connectedness is essential – people refer to their relatives and loved ones when discussing their entrepreneurial intention
[32]	Solesvik et al.	Ukraine	Culture and education	Specific education, perceived feasibility, desirability	Cultural barriers	Entrepreneurship education contributes to intention but the lack of transferable skills and cultural view of entrepreneurship act as barriers
[33]	Sondari	Indonesia	Entrepreneurship education and graduate unemployment	Entrepreneurship courses, positive perception	Negative view of entrepreneurship, lack of knowledge	Special education that gives students and graduates information about entrepreneurship positively affects their chance of creating a business
[34]	Tong et al.	Malaysia	University students	Family business background, personal need for achievement, influence		Desire for independence does not drive the intention, but one’s family background, ambitions, and education do
[35]	Trivedi	India, Singapore, Malaysia	Post-graduate management students	Positive attitude, behavioral control, academic support	External environment	Perceived behavioral control and a positive university environment impact one’s intentions, while external barriers lower self-confidence
[36]	Tsai et al.	Taiwan and China	Opportunity, failure, and gender	Perceived capability, opportunity	Risk aversion, gender, age	People (especially men) who positively view their capability and opportunity for business have higher entrepreneurial intent
[37]	Turker and Selcuk	Turkey	Policy making for graduate entrepreneurship	Supportive academic environment, structural support		Education and government assistance are perceived as equally valuable for increasing entrepreneurial intention
[38]	Uddin and Bose	Bangladesh	Business students	Risk taking, education, environments, need for achievement		A supportive environment and personal characteristics and beliefs form one’s entrepreneurial intention, while job security is not as influential
[39]	Yıldırım et al.	Turkey	Discipline and gender’s impact on entrepreneurial intent	Business education, formal sources, social support, need for achievement	Gender (lack of empowerment for female students), negative self-perception	Previous business education and need for personal achievement positively correlate with high entrepreneurial intent
[40]	Zhang et al.	China	Entrepreneurship education	Education, male gender, technological background	Prior exposure	Prior experience with entrepreneurship is found to negatively impact intention, while specialized courses lead to positive attitudes and motivation

Method

For this literature analysis, a search was conducted using several databases, including Google Scholar, Procedia, Sage, Scientific Electronic Library Online (SciELO), MDPI, and others. Such search phrases as “entrepreneurial intent, entrepreneurial intention, developing countries” were used to narrow the topic. Furthermore, articles that considered developed countries or used them for comparison were eliminated from the list. Aa a result, 40 studies (37 peer-reviewed journal articles and 3 conference proceedings papers) were chosen for further investigation. It should be noted that a variety of countries with developing economies is presented in the collected works, but most notable are Nigeria, Saudi Arabia, Malaysia, South Africa, India, China, Iran, Pakistan, and Turkey.

The majority of peer-reviewed studies were published in business journals, most of which are concerned with international business. For example, such journals as the International Entrepreneurship and Management Journal and the International Journal of Business and Management appear several times. Table 2 shows the distribution of the chosen articles according to their journal or conference proceedings publication. It should be pointed out that business journals are as frequent as educational ones, implying that the topic of entrepreneurial intention is closely related to that of training.

Table 2. The distribution of selected articles by publication.

Journal/Conference Title	Frequency	Percentage (%)
Procedia-Social and Behavioral Sciences	4	10
International Entrepreneurship and Management Journal	3	7.5
International Journal of Business and Management	3	7.5
Education+ Training	2	5
Journal of Small Business Management	2	5
Acta Commercii	1	2.5
African Journal of Business Management	1	2.5
Babson-Kauffman Entrepreneurial Research Conference	1	2.5
Entrepreneurship and Innovation Management Journal	1	2.5
Entrepreneurship Theory and Practice	1	2.5
European Journal of Business and Social Sciences	1	2.5
European Journal of Research and Reflection in Educational Sciences	1	2.5
European Journal of Social Sciences	1	2.5
International Journal of Entrepreneurial Behavior & Research	1	2.5
International Journal of Entrepreneurship and Small Business	1	2.5
International Journal of Social Sciences and Humanity Studies	1	2.5
Journal of Economics and Behavioral Studies	1	2.5
Journal of Entrepreneurship and Business Innovation	1	2.5
Journal of Entrepreneurship and Innovation in Emerging Economies	1	2.5
Journal of European Industrial Training	1	2.5
Journal of Global Entrepreneurship Research	1	2.5
Journal of Global Strategic Management	1	2.5
Mediterranean Journal of Social Sciences	1	2.5
PACIS 2017 Proceedings, Association for Information Systems	1	2.5
Paradigms	1	2.5
Procedia Economics and Finance	1	2.5
Proceedings of the 51st Hawaii International Conference on System Sciences	1	2.5
Singapore Management Review	1	2.5
Sustainability	1	2.5
The International Journal of Management Education	1	2.5
Vocations and Learning	1	2.5
Total	40	100

Results

Individual Characteristics

The summary of the studies shown in Table 1 creates several areas of research for this topic. First of all, the majority of the papers have a similar theoretical framework based on the theory of planned behavior (TPB). According to this ideology, a person’s behavioral intentions are linked directly to their actions, meaning that the examination of beliefs can help understand their actions and choices. TPB is based on three major elements: subjective norms, attitude toward a particular behavior, and perceived behavioral control. In the case of entrepreneurial intention, the first part described one’s attitude toward starting a venture. Subjective norms express one’s beliefs about important people in their life and their opinion on whether this person should become an entrepreneur. Finally, the foundational concept of this theory is perceived behavioral control that defines how one views their control over behaviors in a particular situation.

In the chosen studies, it is apparent that the TPB is essential to examining entrepreneurial intention. The majority of articles find this framework to be perfect for describing people’s motivations to start a business. As Pihie and Bagheri note, for example, self-efficacy (one’s perception of their ability to complete a task) is the most important factor in determining their intention. Other researchers agree, listing both behavioral control and self-efficacy as the basis of people’s beliefs. This theory may be vital due to its attention to people’s inherent motivations. Entrepreneurship requires a high level of commitment and significant time, which makes the tasks related to such businesses difficult and demanding. High perceived behavior control and self-efficacy challenge this notion and help people to view the field of entrepreneurship as desirable. As a result, they also consider this business opportunity as positive, further affecting their intention.

However, personal characteristics are not limited to self-efficacy in the chosen studies. Another theory that is used in one research is the Big-Five framework that views all subjects through the lens of five major personality traits: “extraversion, conscientiousness, agreeableness, openness, neuroticism”. The authors determine that only two of these elements are important in entrepreneurial intention – extraversion and openness. It is possible to connect the second trait with the principles of the TPB, as openness is often linked to innovativeness, exploration, and curiosity that may help in forming a positive attitude toward behavior. Extraversion is a description that can be reviewed in another context, social networking, which is considered below.

Gender and Culture

Apart from the inherent characteristics of one’s character, many studies are concerned with the effect of culture, gender, and age of individuals on their entrepreneurial intention. In this case, one can distinguish conversations about women’s access to entrepreneurship, the impact of collectivism and individualism on business, and the perception of risk in relation to age. The first discussion does not produce homogenous results, and different studies do not unanimously agree on women’s place in contemporary entrepreneurship. For example, Saraf finds that factors for entrepreneurial intention are the same for female and male participants. Thus, gender does not affect their opportunities in a significant way.

In contrast, several articles come to the conclusion that women’s intentions are different, not due to their personal characteristics, but the opportunities given to them. Some scholars reveal a significant divide between genders, stating that men are much more interested in entrepreneurship than women. The authors link this difference in motivations to cultural constraints that are present in many cultures. Women do not hold positions of power or are still expected to focus on their role in the family.

Yıldırım et al. confirm these ideas, finding that cultural norms often provide men with systemic support for developing confidence and acquiring relevant skills. The connection between self-efficacy and intention, established above, further contributes to this point, as the perception of the task’s difficulty is often rooted in the inherent belief in personal ability. Cultures, where men are expected to perform and evolve professionally, while women are not given the same chance, are likely to lead to this discrepancy in self-assessment.

The progress in women’s education and their entrepreneurial intent is also researched by several authors. Most notably, Aleidi and Chandran consider the place of women in the IT industry of Saudi Arabia. The authors determine that both sociocultural and technological factors play a role in their motivation. For instance, if women get more opportunities to contribute to the field, while also acquiring necessary skills, they would be more likely to participate and develop self-efficacy needed for entrepreneurship. The presence of role models and the elimination of stereotyping are listed as further actions required to provide women with more reasons to develop a positive attitude toward entrepreneurship. Thus, studies that consider the topic of gender focus on systemic and societal changes.

The second topic – collectivism and individualism – is less researched in the selected works. The most interesting finding is present in the study by Siu and Lo, who find that, in China, people’s connectedness plays a great role in their entrepreneurial intention. This means that self-efficacy, a factor considered foundational in most articles, is less valued in this community where peer and family interactions are considered as one of the basic elements of people’s decision making. While the personal choice is still important as it leads to motivation, it is not the only contributor to one’s attitude toward entrepreneurship. Family interactions can both inspire people to start a business and limit their opportunities for doing that.

Finally, the topic of age is most often viewed in relation to risk aversion and previous experiences. On the one hand, it is found that some people view entrepreneurship positively due to prior encounters. On the other hand, greater age is connected to higher risk intolerance and fear of failure. Notably, Zhang et al. find that one’s experience with entrepreneurship can be a barrier to future attempts. Overall, most articles consider young individuals’ intentions, choosing students as the primary group. Therefore, age is not at the center of the discussion at present, and the information is inadequate to make conclusions.

Family Support and Social Networking

As noted above, family support can greatly benefit one’s positive view of entrepreneurship. Connections, as a whole, are found to impact entrepreneurial intention significantly. Social networking is one of the ways to increase motivation and help young entrepreneurs to start their careers. Peer support is necessary to enhance self-efficacy and disseminate knowledge. Professional connections can also serve as an entry point into the field of business, and their existence raises one’s desire to participate. Several studies agree on the benefits of familial ties and networking, and there are no contrasting findings that would devaluate these connections. However, some researchers argue that the personal level of influence is not the most important in increasing people’s intention. A study by Saeed highlights the role of systemic benefits provided by the government and educational organizations. Therefore, while family and peer support are vital, it is not the only pillar of increasing entrepreneurial intention in developing countries.

Government and Education

A higher level of intervention to generate entrepreneurial intention is institutional support. Many scholars note the role of knowledge, and entrepreneurship-specific education (ESE) is presented as the primary factor in supporting this sphere of business. According to Sondari, the knowledge and skills obtained during such programs do not only provide the basis for starting a business. They also improve the view of entrepreneurship, challenging the fear of failure and explaining the benefits of this approach. Moreover, training helps people assess their behavior control adequately and see their strengths and weaknesses. This leads to improved self-efficacy – the central personal factor that leads to high entrepreneurial intention.

The support from the government is another level of systemic change that is found to increase entrepreneurial intention. Researchers offer several programs and changes that each of their respective countries can implement, but they all have similarities. First of all, the support for education has to be mentioned as it is connected to the previous factor.

The lack of ESE in a country cannot be addressed without the help of the government in developing countries where the financial situation is often strenuous. Thus, many people do not know enough to pursue entrepreneurship, focusing on its risks and adverse outcomes. Aleidi and Chandran provide an example of Saudi Arabia, where governmental support of education has raised the number of young entrepreneurs and helped women to excel in the field of IT. This scenario, while not possible for all developing countries due to the lack of resources, shows how the connection between support and knowledge leads to positive effects.

Another change is the increased support for small businesses, their establishment, and management. This may include financial elements such as tax cuts or exemptions, favorable policies for opening a business, and access to loans and funds. Furthermore, the reduction in paperwork-based procedures and “red tape” are considered as ways to make the process of running a small business simpler and more accessible (Gerald and Saleh 10715). The understanding of the processes that are involved in entrepreneurship plays a significant role in a positive attitude. Thus, by lowering the entry barrier, a government can contribute to its economy while uplifting entrepreneurs.

Limitations and Conclusion

This study’s limitations are directly related to the amount and scope of available knowledge. The selected studies showcase a small part of all existing materials. Moreover, as most of them consider only one country, there are no connections between developing countries in original texts. While the conclusions in most articles agree with each other, it is possible that some developing countries will be unable to use this knowledge for their benefit. For example, it is clear that the experience of Saudi Arabia may be different from that of Nigeria or Iran due to the political and economic situation and people’s access to resources. Moreover, while these nations have similarities in their economy, their cultural backgrounds are unique, which makes the assessment of personal and collective traits complex.

Overall, however, it is possible to conclude that entrepreneurial intention in developing countries depends on a variety of factors on personal and systemic levels. The concept of self-efficacy seems to be the most vital part of one’s ideology, and it can be improved through peer support and education. Learning is foundational for increasing motivation and developing skills for future entrepreneurs, while also removing barriers for women. Finally, governmental support (both financial and social) is also necessary to make sure that new businesses flourish – the lack of such assistance is a major barrier that many individuals cannot overcome of their own.

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