The Entrepreneurial decision-making approaches of undergraduate business operators: a study conducted at University of Peradeniya

Abstract

Unemployment among graduates is the diminishing return on countries investment for higher education and graduate entrepreneurs can reduce the unemployment among them. There are undergraduates in a university starting and running a business while conducting their studies. They are operating their businesses under a limited resource context. The aim of the study is to investigate the entrepreneurial decision-making (EDM) approaches adopted by undergraduate business operators, and whether the EDM approaches change with the owner and business characteristics. In doing so, the study drew on three different concepts of EDM approaches in resource-constrained environments—causation, bricolage, and effectuation. The research was conducted at the University of Peradeniya. The research employed mixed methods including a questionnaire survey with undergraduate business operators (n=81) and in-depth interviews with the subset of the sample (n=15). Data were analyzed using statistical tests (MANOVA and ANOVA) and were supplemented with insights that emerged through qualitative data. According to the findings of this study, undergraduate business operators adopted all three EDM approaches to different degrees and they have adopted effectuation and bricolage than causation. The results further revealed that these approaches significantly vary with the gender and family background of undergraduate business operators (P < 0.05). In particular, female undergraduates are highly adopted to effectuation while male undergraduates adopt causation. Undergraduate business operators who have family businesses are highly adopt to effectuation and those who do not have family businesses mainly adopt in causation approach. According to this study, there is not enough evidence to support that these approaches significantly vary with their management or business-related education and the type of business they are involved in (manufacturing, buying and selling, and service type business). The findings of the study could be important when flourishing undergraduates to be successful entrepreneurs.