1

2

INTRODUCTION

CHAPTER 1: REVIEW OF ENTREPRENEURSHIP AND ENTREPRENEURSHIP PROMOTING
POLICIES

1. Necessity of the study
Entrepreneurial Intention (EI) has been regarded as a motive power for economic development in many countries
globally. As Vietnam has integrated more deeply into the global context, the interest in EI, establishment of a strong
enterprise association, creation of a global nation’s trademark is the way for Vietnam to catch up with international
economies stably and sustainably. Recently, Vietnam has been focused on becoming a nation of start-ups. In order to achieve
the target of 1 million enterprises operating in 2020, 1.5 million in 2025 and 2 million in 2030, facilitating EI in the youths is
a crucial orientation. Opinions of the Communist Party towards private economic development, particularly supportive
constitution and policies have contributed greatly to start-up movement in Vietnam. EI, especially among the youths, has
gained enormous interest from the State, the society.
The question for the aforementioned issue is how to promote start-up activities in general, among the youths in
particular? The answer to such question is that various factors affect an individual’s entrepreneurship decision. However, one
of the most significant factors affecting behaviours is individual’s intention (Ajen, 2015). This is proven by a number of
entrepreneurship studies (Krueger & Brazeal, 1994; Krueger et al., 2000). On the other hand, according to Ajzen (1991)
entrepreneurship or career choices is resulted from perception. Entrepreneurship action will be realized if an individual has
positive attitude, thought and intention of such action. Therefore, EI is able to accurately predict future entrepreneurship
behaviours. Study of EI can reflect entrepreneurship action, thus, to promote entrepreneurship among the youths, it’s
appropriate to explore factors affecting EI among the youths.
Therefore, the study of “Factors affecting EI among Vietnamese youths” is essential during current context. Through
this study, the author will futher supplement new points of view for EI theory, meanwhile, propose suggestions from
management perspective in order to promote entrepreneurship activities among Vietnamese youths.
2. Aim of the study
The study clarifies factors affecting EI among Vietnamese youths, based on which to propose solutions and

behavioural control, entrepreneurial eduction, personality traits, entrepreneurial experience, environment-related factors.
Apart from factor having consistent findings namely attitude and perception (Elfving et al., 2009; Shariff & Saud, 2009),
subjective norm (Linan & Chen, 2009), personality traits (Tong et al., 2011); other factors still produce inconsistent findings,
like: perceived behavioural control (Ruhle et al., 2010; Paco et al., 2011), entrepreneurial education (Johansen & Schanke,
2013; Gorman et al., 1997), personality traits (Tong et al., 2011), entrepreneurial experience (Basu & Virick, 2008;
Davidsson, 1995), family business tradition (Marques et al., 2014; Krueger & Dickson, 1993), supportive policies from the
Government for entrepreneurship (Lüthje & Frank, 2003), gender, age, education level (BarNir & Watson, 2011; Shinnar &
Giacomin, 2012). Such difference may be due to contextual factor such as cultural diversity of each nation (Okamuro et al.,
2011; Saeed et al., 2014).

- Time: The thesis studies EI of Vietnamese youths from 2011 up until now (when start-up has been widely
discussed); survey data collected in 2018.

Overall result of the studies in Vietnam has shown no research has had actual impact assessment of the factors related
to personality, entrepreneurial education and environment (legal system, governmental support, family business tradition) on
EI in the cultural, socio-economic environment typical for Vietnam.

- Content: The thesis applies Theory of Planned Behaviour (TPB) by Ajzen (1991) and Shapero’s model of
Entrepreneurial Event (SEE) as theoretical foundation combined with study findings to set up a model exploring factors
affecting EI of Vietnamese youths.

Aditionally, governmental support factor has not sufficiently been tested in previous study models. Some research has
mentioned such issue in different social contexts that has led to separate scientific conclusions subject to different social
contexts.

4. Structure of the study

Entrepreneurship promotion leading to building up a startup nation in Vietnam is a burning issue that has gained
great interest from the State and the society. However, academic studies in Vietnam are limited to quantity and scope. The
researchers based on their study findings have come to an agreement that EI is direct prerequisite of entrepreneurial

that is widely accepted, though. The study findings show that entrepreneurship is defined with different approaches, contexts
and purposes: (i) formation/commencement of something new; (ii) new entrepreneur/owner; business opportunity exploitation
or (iii) social responsibility. No matter how to approach, entrepreneurship process is described through a number of key terms
including: (1) “business idea/opportunity”, “resource”, “value” và “creativity”; (2) mobilization of necessary resource; (3)
creating value for customers; (4) “startup” is always linked to “creativity”.

Attitude toward
enterpreneurship
Subjective norm
Perceived behaviorial
control

According to the author, entrepreneurship is interpreted as a process in which an individual sees and assesses
business opportunities, selects necessary resources to form a business base / new entreprise with purpose of bringing about
prosperity for himself/herself, for the nation and creating many values for the society.

EI among Vietnamese
youths

Need for
achievement

Intention is researched from various perspectives. However, the researchers almost agree with the opinion that EI is a
crucial factor to predict entrepreneurial action (Bagozzi et al., 1989; Krueger & Brazel, 1994).

Entrepreneurial
experience

Therefore, EI is interpreted as: (i) wishes, intentions in seeking business opportunities and ideas; (ii) intentions in
planning for collecting and approaching resources; (iii) intentions in preparing business running capability. Such intentions

measuring social pressures felt by the individual for performing or not performing entrepreneurial actions; and third,
perceived behavior control related to levels at which an individual thinks he/she is able to perform.

Support from
Government

Figure 2.1: Thesis Research Model
2.4.2 Research Hypotheses
Based on proposed research model, the following hypotheses can clarify the research questions, positions that need
testing in Vietnamese conditions. Statements on relationship and interaction between factors in the research model are
summarized in the table below:
Table 2.1: Research hypotheses
H

Description

* Shapero’s model of Entrepreneurial Event (SEE): showing that an individual’s decision upon entrepreneurship
depends on changes of his/her life and his/her attitude towards entrepreneurship as well as feeling for possibility and desire
for entrepreneurship (Shapero & Sokol, 1982).

H1

Attitude toward money has positive effect on EI of Vietnamese youths

H2

Attitude toward entrepreneurship has positive effect on EI of Vietnamese
youths.

Inherited from theoretical models of previous studies about factors affecting EI, this study has built a theoretical model


Entrepreneurship education has positive effect on EI of Vietnamese
youths

H9

Attitude towards entrepreneurship is an intermediate variable of
relationship between entrepreneurship and EI of Vietnamese youths

H10

Support from the government has positive effect on EI of Vietnamese
youths

Factors affecting EI can be classified into 2 basic groups: (1) intrapersonal factors belonging to individuals having EI
themselves, being Vietnamese youths in this study (including: attitude towards EI, subjective norm, perceived behaviourial
control, need for achievements, enterpreneurial experience) and (2) extrapersonal factors from outside (including:
enterpreneurial education and support from government for enterpreneurship).

2.4. Research model and hypotheses
2.4.1 Research model
Based on theoretical basis, actual facts and research on factors affecting EI of the youths, the thesis’ model is built on
TPB model inheriting 3 basic factors (attitude, subjective norm and perceived behaviorial control); besides, the thesis also
inherits other factors from previous studies (attitude towards money, need for achievement, entrepreneurial education,
entrepreneurial experience) and supplement factors on business environment.

***


5

Cronbach Alpha, EFA, CFA, SEM

Assessment of model suitability
Hypothesis appraisal

Figure 3.1: Research Procedure
Source: This proposed procedure is based on research by Nguyễn Đình Thọ, Nguyễn Thị Mai Trang, 2007
- Preliminary research: the author collected materials, information related to EI of the youths and previous research
findings to propose a model and scale. After sketching an initial model, the author will combine qualitative and quantitative
methodologies to standardize the model and scale. The preliminary research is conducted from June to August 2017.
(i) Qualitative research: after building preliminary research findings and design for the thesis, the author did seek
opinions from 2 scientists majoring in business administration and management regarding research model and survey
questionnaire to complete the questionnaire before carrying out the survey to collect information.
(ii) Quantitative research: after obtaining feedback, exchanges from the chosen scientists, the author completed the
research model and survey questionnaire and conduct trial survey. The author conducted survey on 50 samples representing
different surveying groups. Purpose of the survey is to test questions, terms that are still unclear and difficult to choose the
answers, meanwhile, consider suitability of the scale, variables proposed in the research model. Survey result is the basis for the
author to adjust the scale appropriately before conducting official survey. Form of information collection is diversified to
convenience the author during survey process, including through interview, direct Q&A, using Google forms. Trial survey result
has shown that the basic questionnaire is accepted, except for minor adjustment for terms and design.
- Official research: the author keeps combining qualitative and quantitative methodologies in information collection
and clarifying issues raised in the study.
In qualitative research, the author has conduected:
(1) Consolidate, analyse primary and secondary documents. Based on research result, the author raised a number of
questions, hypotheses and proposed a model; identified source and content of the scale in the proposed model, then, translated
the model and questionnaire into Vietnamese.
(2) Seek experts’ comments: the author has sought comments from 3 scientists to complete the termilogogy, model
and questionnaire.
(3) During information collection at the researching areas, the author has interviewed 20 people to understand demend
for entrepreneurship and factors affecting their EI.

In terms of gender, no dramatic difference between men and women with 54% for men and 46% for women;
occupation, 2/3 have jobs; education level, most of them are at least undergrads (61.1%) and employment experience, as the
surveyed are the youths, they almost have little work experience (under 1 year or 1-3 years of experience); parents’ careers,
rate with parents having their own business is 13,3% - 14%, working for enterprises is 4,0% - 5,9%; taking managerial
positions 0,9%; most of the interviewees having parents doing jobs different from theirs (79,8% - 81%).
In terms of survey area, survey samples are the youths living and working in 10 provinces/cities (of central, north and
south parts) including Hanoi and Ho Chi Minh City with 46.1% living at rural areas and 53.9% in urban areas.
With research scope and nature as analysed above, such samples are qualified for quantitative analysis of next steps.
4.2.2. Testing the scales
4.2.2.1 Testing reliability of the scales for the model’s factors
The scales in research ensure reliability with Cronbach’s Alpha coefficient for each observed variable group belonging
to factors reaching 0.6 upwards, correlation factor greater than 0.4. Initial model consists of 9 groups of factors with 41 observed
variables. After testing the scales by using Cronbach’s Alpha, the author has deleted DDK3, KSH5, KNK1, CSC3, CSC4
variables to ensure the scales’ good reliability and measurability.
4.2.2.2 Exploratory Factor Analysis (EFA)
a. EFA with dependent variable
EFA result with observed variable “EI” shows: KMO is 0.733 and variance cumulative is 61.10%, and observed
variables of DDK factor are all converged into only one factor.
b. EFA and independent scales
The author uses EFA for independent variables with Eigen value = 1 and factor loading = 0,5. Result of 1st time EFA
for independent factors extracted at Eigen value = 1,085, KMO-Meyer is 0,925 and cumulative variance of the 7 factor
groups is 61,66% of data variation. However, such observed factors as CSC1, CSC2 and KSH6 all have factor loading < 0.5
and disperse into 2 different factor groups. Therefore, EFA is repeated after gradually removing CSC2, KSH6, CSC1. Result
of the last EFA shows that KMO is 0,919 and cumulative variance of the 7 factor groups is 64.26% of data variation.
The last EFA result with observed factors show that the observed factors converged into 7 factors are: Need for
achievement (NCT), Attitude towards entrepreneurship (TDK), Entrepreneurial education (GDK), Perceived behaviourial
control (KSH), Subjective norm (CCQ), Attitude towards mney (TDT) and Entrepreneurial experience (KNK). Therefore,
after conducting EFA, observed factors and scales, supportive policies of government (CSC) has been excluded as such factor
fails to ensure the factor loading as required, therefore, shall not be either included in the model or appear in next CFA and
SEM procedures.

used in the model structure analysis of the next steps.
4.2.3 Descriptive statistics analysis of the scales in the model
To understand at which level the factors in the model are assessed, the author uses descriptive statistics to assess the
youths’ opinions of the observed variables of the scales for the factors in the model. Result has revealed that most of the
factors, interviewees show their agreement at average scale (3.02). Therefore, the surveyed youths tend to rather highly agree
with statements about Attitude towards entrepreneurship, Attitude towards money, Subjective norm, Entrepreneurial
education, Need for achievement. Among those factors, Need for achievement gets the highest agreement (3,87).
Descriptive statistics result for EI reveals desire for entrepreneurship of the youths are generally at average level
(3,38). The result also shows whereas willingness level to do anything to become an entrepreneur and to decide upon a future
business establishment appears to be average (3.16), the intention to start and run their own business with best endeavours
gets rather high score from the youths (3.7).
4.2.4. Analysis of EI differences in various basic traits of Vietnamese youths
4.2.4.1. Gender
Analysis result shows, men have different EI from women. Kết quả phân tích cho thấy, nam TN có dự định KSKD
khác so với nữ giới. Result of DDKgeneral of male group is higher than female group ( Nam=3,46; Nữ=3,29; sig.=0,001). Of
the statements related to EI, namely “I’ll try my best to start and run my own business”, “I’ve decided to open up a company
in the future”, “My career target is to become an entrepreneur”, “I’m willing to do anything to become an entrepreneur”,
the average point for agreement by men is higher than that of women. Testing result for such difference between male and
female agreement levels reveals that there is obvious difference at all observed variables in DDK scale.
4.2.4.2 Career status of the youths
Analysis result shows difference (significant) in EI’s average value between group of university students and group of
young workers, EI value of the latter is higher ( NĐL=3,42; SV=3,31; sig.=0,032).
The difference shown in the statements of “willing to do anything to become an entrepreneur”-DDK1, “will do my
best to start and run my own business”-DDK2, “decided to open up a company in the future” -DDK4 of university students
is lower than that of young workers. This also reveals attitude and thought for entrepreneurship of young workers is
obviously different from that of university students.
4.2.4.3. Expertise
Average result in comparison of different professionalism groups shows difference (significant) in EI in general, and among
groups of different expertise, especially groups of post-graduate and college degree. Descriptive statistics shows a higher agreement
upon EI by post-graduate group than that of those with college or vocational degrees.

conducted re-analysis. Result shows that the indices confirm the model’s suitability: CMIN/DF = 5,258; GFI, CFI and TLI all >
0.9; RMSEA = 0.057 < 0.08, therefore, the adjusted research model is appropriate with the survey data (Figure 4.1).

Figure 4.1. (Adjusted) standardized SEM analysis result
In the adjusted SEM, GDK and KNK both affect TDK. KNK, NCT, KSH and TDK all affect DDK and are
statistically significant (p < 0.05). GDK has intermediate effect to DDK rather than directly. Unstandardized factors are all
positive showing that such factors as KNK, NCT, KSH and TDK have positive influence on DDK.
Results of standardised regression factors reveal that entrepreneurial education (GDK) strongly affects Attitude
towards entrepreneurship (TDK). Among factors directly affecting EI of the youths, attitude towards entrepreneurship (TDK)
and perceived behavourial control have strongest influence whereas entrepreneurial experience (KNK) has weakest influence
on EI (standardized regression coefficient is 0,152).
4.2.5.2. Multigroup structure model analysis
The study uses Chi-square standard, a multigroup structure model analysis technique to conclude the difference in
EI of the youths according to control variables of gender, educational level, career status, parents’ jobs. For each control
variable, total samples will be divided into various groups subject to number of such control variable’s forms. The author
builds up 2 structural models: variable model (affecting factors are different among groups) and invariable model
(affecting factors have no difference among groups). After having result for two groups, difference between the two
models will be determined and by using Chi-square, difference will be concluded. Hypothesis H0 in this test is: There is no
difference between variable model and invariable model (using invariable model result). Multigroup structural model
analysis results are as below:


9

10

(i) Relationship of the factors in the model affecting EI of the youths does not have difference between male and
female groups. KNK, NCT, TDK, KSH all have direct influence on EI of both male and female youths and GDK has indirect
influence on EI through TDK. For both genders, Perceived behaviourial control (KSH) and Attitude towards entrepreneurship
(TDK) are two strongest factors affecting EI of the youths.

H8: Entrepreneurial education has positive influence on EI of Vietnamese youths. Role of entrepreneurial
education has been recognized both in reality and with scientific evidence. However, in Vietnamese society,
entrepreneurial education is not clear, that directly affects attitude and assessment of the youths for their EI. The study
reveals intermediate role of entrepreneurial education on EI of Vietnamese youths.
H10: Government support has positive influence on EI of Vietnamese youths. Although recently, the government
has had various positive actions to promote startup in the society, such actions have not widely spread to the youths to
get their positive assessment yet. Therefore, the thesis research data are not sufficient to confirm agreement or
objection to this hypothesis.
Apart from the aforementioned hypotheses that have not been tested, most of the initial hypotheses have been
clarified by the author’s survey result analysis, including:
H2: Attitude towards entrepreneurship has positive influence on EI of Vietnamese youths.
H4: Perceived behaviourial control has positive influence on EI of Vietnamese youths.
H5: Need for achievement has positive influence on EI of Vietnamese youths.
H6: Experience has positive influence on EI of Vietnamese youths.

Coordination from local to central authorities, among departments, associations in implementation of propaganda of
the Communist, Government and State positions, regimes and policies on entrepreneurship for the youths. Propaganda
activities can be organised to build up awareness, perception and spirit of entrepreneurship, communication, consulting,
vocational programs appropriate to each group of youths, particularly the ”Support for entrepreneurship of students up to
2025” program.
Entrepreneurial education is not merely to provide knowledge and skills to the youths, moreoever, to create
environment for them to experience and experiment actual entrepreneurial activities to establish positive attitude, belief and
culture towards entrepreneurship for the youths.
The State’s direction, policies on promoting entrepreneurship among the youths shall focus on those related to positive
communication on entrepreneurial spirit, culture, dynamic environment and community comprising all forms of
entrepreneurial ecosystem.
In entrepreneurship, risks and failures are of high possibility, therefore, entrepreneurial education should link to an
entrepreneurial culture for the youths and facilitate them to study and experience actual facts to gain entrepreneurial
experience.
It is necessary to build up a healthy business environment with developing, dynamic market operating with all

H9: Attitude towards entrepreneurship is an intermediate variable of the relationship between entrepreneurial
education and EI of Vjetnamese youths.

Study findings show that entrepreneurial education’s direct influence on Vietnamese youths’ EI has not been
confirmed. However, analysis result reveals entrepreneurial education factor has positive relationship with attitude towards
entrepreneurship and influences on EI of Vietnamese youths. Therefore, entrepreneurial education has positive influence
on the improvement of attitude towards entrepreneurship, leading to improvement of Vietnamese youths’ EI. The result has
affirmed importance of entrepreneurial education on improvement of Vietnamese youths’ EI.

5.2. Proposals to promote entrepreneurship among Vietnamese youths
First, enhance perception, attitude of the youths on entrepreneurship, shaping positive attitude towards
entrepreneurship, helping the youths to nurture and develop EI.
Among the factors affecting EI of the youths, attitude towards entrepreneurship has the biggest influence. Therefore,
in order to enhance positive attitude of Vietnamese youths towards entrepreneurial activities, it’s necessary to strenghthen
effectively propaganda activities, fostering the youths’ ambition to become entrepreneurs, to take startup path and to come
rich for themselves and their families, appreciating successful entrepreneurs, excellent youths with admirable economic
achievements.

To develop entrepreneurial education role, the State shall need to direct relevant ministries and branches, especially
the Ministry of Education and Training to coordinate with HCM Communist Youth Union Central in implementation of
entrepreneurial activities for the youths. Entrepreneurial education activities shall not only be limited to students, it should
also address training section to meet the youths’ demand for continuous study. Improvement of entrepreurial education
quality for the youths in terms of both content, form and method should be focused. Schools should cooperate closely with
enterprises to ensure their education is linked with reality, theory with practice, as well as to mobilise human resources from
enterprises to teach students, i.e. experts of different professions, mangers from different enterprises.


11
To make entrepreneurial education become an official program at schools, the State should focus on policies
facilitating education such as sponsoring startup training programs. Entrepreneurial education should be included in national

- Last, the study is conducted at a number of provinces. In order to increase accuracy, survey samples should be
widened in terms of scope to better representation of Vietnamese youths at different areas of the country.
***

CONCLUSION
The thesis findings have contributed both theoretically and practically. Based on the factors inherited from TPP and
SEE models, the author has built a significant research model for the factors affecting EI of Vietnamese youths, then showed
the role of such factors as attitude towards entrepreneurship, perceived behaviourial control, entrepreneurial expericen and
need for achievement affecting EI of Vietnamese youths. Furthermore, the thesis also reveals an intermediate relationship
between variables in the models for EI of Vietnamese youths. This can be used as a ground to propose solutions to facilitating
entrepreneurship of the youths.
Understanding of the factors affecting EI of the youths is the base to efficiently implement supportive policies for the
youths to do enterpreneurship. The study result also provides policy makers, relevant ministries and branches with a thorough
insight into entrepreneurial education to inspire the youths about entrepreneurship, to effectively carry out activities
supporting the youths’ entrepreneurship and promoting entrepreneurial activities of Vietnamese youths.