ENTREPRENEURIAL INTENTION OF PRODUCTION ENGINEERING STUDENTS
IN AMAZONAS/BRAZIL
Júnior Garcia Araújo
Hard Sciences and Technology Institute (ICET/UFAM), Brazil
E-mail: jrgarciagv@outlook.com
Moisés Israel Belchior de Andrade Coelho
Hard Sciences and Technology Institute (ICET/UFAM),
Brazil
E-mail: moises.acoelho@gmail.com
Submission: 14/02/2018
Revision: 11/04/2018
Accept: 23/04/2018
ABSTRACT
This work aims to
investigate an entrepreneurial intention of production engineering students in
Hard Sciences and Technology Institute (ICET) linked to Federal University of
Amazonas (UFAM). Regarding the methodology, this research is quantitative,
regarding the approach of the problem, exploratory, regarding the objectives of
the research, and a case study with regard to the technical procedure adopted.
The research sample was formed by courses of production engineering course and
contains a participation of 100 students. The research techniques used were:
indirect documentation and extensive direct observation through the application
of the forms of entrepreneurial intention with the students. In terms of
results, the following stand out more
than half of the students are not entrepreneurial products; however, almost all
of their users are in a position to become entrepreneurs; strong indication for
self-employment; search for an innovative idea as the main barrier to
entrepreneurship. The study points to a proactive stance with regard to
entrepreneurship even considering that as areas of engineering, they concentrate
a large part of their professionals as employees in public or private
companies. The relevance of the research lies in evidencing the growth of
entrepreneurship among the discourses of production engineering so that the
university contributes to the formation of professionals who create projects
with high added value, promoting technological development and innovation and
impacting local development.
Keywords: Entrepreneurship;
Entrepreneurial Intention; Students; Production Engineering; Amazonas
1. INTRODUCTION
For
Schwab (2015), we are on the verge of a technological revolution that will
fundamentally change the way we live, work and relate. The first industrial
revolution used water and steam to mechanize production; the second used
electricity to create mass production; the third used electronics and
information technology to automate production; Finally, the fourth revolution
is building upon the third digital revolution that has been taking place since
the middle of the last century.
The
era of capitalism is passing, not rapidly but inevitably (RIFKIN, 2014); for
the author, the new economic paradigm (collaborative communities) is growing
from the emergence of a hybrid economy, part of the capitalist market and part
of collaborative communities. The two economic systems often work in parallel
and sometimes compete, finding synergies where they can add value to each
other, benefiting each other.
From
Schumpeter's (1997) point of view, there is a relationship between innovation,
the creation of new markets and
entrepreneur action; for the author, the entrepreneur begins to change the
behavior of consumers by creating the desire for new things or that differ from
what these consumers would commonly buy. In this context, the creative
destruction would be the replacement of old products and habits of consuming by
new ones.
For Schumpeter (1961) innovation is related to new
consumer goods, new methods of production or transportation, new markets and
new forms of organization; innovation is the impulse that keeps the machine of
capitalism running. With respect to creative destruction, Schumpeter mentions
that it is the process that constitutes capitalism and based on it every
company must adapt to survive. The impact of innovations reduces the effect on
the structure of a long-term industry and reduces the importance of practices
aimed at retaining traditional positions and profits based on those positions.
According
to Ács et al. (2017), the
entrepreneur is a person with the vision to observe an innovation and the
ability to bring to market. Entrepreneurship is about creating jobs and growth
through innovation. Entrepreneurs are the bridge between invention and
commercialization, being able to be in sectors of high or low technology, as
well as of any technology; without them, the innovations are in Research &
Development (R & D) laboratories and in universities.
In
short, this work aims to investigate the entrepreneurial intention of
production engineering students in Hard Sciences and
Technology Institute (ICET) linked to Federal University of Amazonas (UFAM). The
work is structured in four parts: (1) literature review; (2) methodology; (3)
results; (4) discussion, conclusion, and
references.
2. LITERATURE REVIEW
2.1.
Entrepreneurship
The
history of entrepreneurship is similar to the history of man himself, taking
into account that entrepreneurial behavior has always existed and that it was
this behavior that motivated us to create, build and evolve (ALVES, 2011).
Entrepreneurship is one of the main factors of economic development in a
country, so in countries with an entrepreneurial culture, the prospects for economic growth are much higher
(MALHEIROS et al., 2005).
One
of the observed aspects is that entrepreneurship ceased to be a term
exclusively related to business and to the companies, is seen as a behavior (VALE et al., 2008). Thus, entrepreneurship is
defined as a behavior rather than a personality trait, so to act as
entrepreneurs it is necessary to use tools based on the interest of seeking
change, reacting to them and exploiting them as a business opportunity
(MALHEIROS et al., 2005), that is, it
is a form of thinking that emphasizes opportunities for threats (KRUEGER JR et al.,
2000)
Entrepreneurship
has varied characteristics that can manifest in different ways, which makes its
concept difficult, and it is possible to point out that its origin is in the
recognition of an opportunity or the need felt by the market. Entrepreneurship
means doing something new, different, changing the current situation and
constantly seeking new business opportunities, focusing on innovation and the
creation of value, entrepreneurship encompasses every form of innovation that
has to do with the prosperity of the company (VIEIRA; RODRIGUES, 2014;
DORNELAS, 2004).
More
recently, Ács et al. (2014)
introduced the concept of national entrepreneurship systems (SNES), characterized by resource allocation
systems that are driven by the search for opportunities at the individual level
through the creation of new ventures with their activities and its results
regulated by specific institutional characteristics of the country.
Entrepreneurial
ecosystems are composed of subsystems (pillars) that are aggregated to systems
that can be optimized for performance at the ecosystem level. They are based on
three important assumptions: (1) entrepreneurship is an action carried out and
directed by agents based on incentives; (2) individual action is affected by a
framework of institutional conditions; and (3) entrepreneurial ecosystems are
complex, with multifaceted structures in which the elements interact for the
performance of the productive system and require methods that allow the
constituent elements to interact (ÁCS et
al., 2017).
Thus,
entrepreneurial ecosystems can be defined as a dynamic, institutionally
integrated interaction between attitudes, skills and entrepreneurial
aspirations, by individuals, that drive the allocation of resources through the
creation and operation of new ventures.
2.2.
Entrepreneur
The
entrepreneur is one who, regardless of the branch of activity, creates a new
company or acquires an existing one and introduces innovations, assuming the
risks that exist with the enterprise. Regardless of the branch of activity, it
creates a new company or acquires an existing one and introduces innovations,
assuming the risks that exist with the enterprise (SAES; PITA, 2007).
Baumol
et al. (2009), define individuals as
entrepreneurs if in their economic activity they demonstrate initiative,
imagination, and willingness to demand efforts
in the pursuit of prosperity, power, and
prestige. They divide entrepreneurs into two groups: innovators and imitators,
where the former engage their companies in the quest to offer new products, new
production processes or entry into new
markets.
For
Drucker (1986), entrepreneurs need to learn to practice systematic innovation,
successful entrepreneurs try to create new and different values and new and different sensations rather
than searching for sensational innovations. They convert a "material"
into a "resource" or combine existing resources into a new, more
productive configuration.
Vivarelli
(2013) provides an investigation of the concept of entrepreneurship; the author
presents the concept of the founder
(founder), as being an adequate definition
for the great majority of the actors that end up being denominated of
entrepreneurs. The founders are actually what Schumpeter called clusters of
followers. They are strongly influenced by their own history, in particular,
their previous work experiences, family history, personal non-economic factors,
among others. The founders do not conduct a technological renovation and
economic growth, possessing a high level of bankruptcy.
The
article by Baumol et al. (2009)
analyzed innovative inventors and entrepreneurs called "superstars"
considering a sample of 513 entrepreneurs and inventors in more than 30
countries. The authors evidenced that over the years there has been a growth of
inventors and entrepreneurs with high levels of education, including masters
and doctorates. In the case of the United States, both inventors and
entrepreneurs have a better schooling than the majority of the population and
compared them to each other, the inventors have a higher education level than
the entrepreneurs.
Finally,
they point out that the success of entrepreneurship requires a wide variety of
general skills and that technology has grown cumulatively and in an
increasingly complex way requiring more extensive educational preparation.
In
the publication, Hermans et al. (2015) carry out a survey of the
literature related to the entrepreneurial ambition and related concepts in this
new research concept that has been emerging in recent years. The approach
adopted by the authors offers an opportunity to develop a deep understanding of
the motivations, ambitions, aspirations, intentions, and achievements in interactions with external opportunities and
resources. The work of Lee et al.
(2011), point out the relationship between a set of organizational and
individual factors that contribute to entrepreneurial intent in IT
professionals.
Cassar
(2007) examines the possible impacts of career ratios on aspirations and
expectations of growth and on actual growth. The study points to the importance
that entrepreneurs place on financial success as a key factor in explaining the
cross-cutting differences in entrepreneur growth, the size desired for the
entrepreneurship and the growth achieved.
Teixeira
et al. (2011) carried out a study as
the objective of analyzing the reasons that led a thirteen-year-old to start
her own business, the life history was used as a data collection technique
through an interview. The influence of the family in this walk was mainly
analyzed and the characteristics that led to the success as an entrepreneur
were identified; the research also realized that parental support was crucial
to the creation and development of the business. Some entrepreneurial
particularities found in other studies were easily identified in the young,
such as determination, creativity, desire for independence, continuous learning
and use of networks of relationships.
Silva
et al. (2013) present a record of
South Korea's historical economy in relation to the current factors related to
innovation and entrepreneurial activity, offering a contributory analysis to
the understanding of the country as an economic power that has stood out
worldwide for the competitiveness of its organizations among other factors.
2.3.
Entrepreneurship
intention
In
2004, Inácio Júnior and Gimenez (2004) provided the translation, validation, and application of the Carland Entrepreneurship
Index (CEI) as a tool to measure entrepreneurial potential. The sample
consisted of 671 respondents among undergraduate and graduate students in
business administration and owner-managers of resident companies. The authors
used the Back translation method and the use of statistical-descriptive
techniques, hypothesis tests, factor analysis and reliability.
Lopes
Júnior and Sousa (2005) provided the construction and validation of an
entrepreneurial attitude measurement instrument applying to owner-managers of
small retail companies. The sample consisted of 290 interviewees and the
structured questionnaire was composed of 36 affirmative items using a Likert
scale. The questionnaire was called the Entrepreneurial Attitude Measurement
Instrument (IMAE).
Santos
(2008) provided a scale to help identify entrepreneurial potential in students,
to train entrepreneurs or to select candidates for entry into incubators. The
constructed scale was based on psychometric and statistical techniques
(Cronbach's alpha and factorial analysis) and was composed of 57 items, four of
which were to identify the entrepreneurial intention and the other 53 items to
compose the scale of entrepreneurial potential. The sample consisted of 100
entrepreneurs.
Alves
and Bornia (2011) developed a scale to measure entrepreneurial potential using
Item Response Theory (TRI). The research sample consisted of 764 people who
answered to an instrument composed of 103 items and the logistic model of two
parameters of the TRI was used. The results showed that the scale is best suited to evaluate individuals with low to
moderately high entrepreneurial potential, thus, the Item Response Theory
allows new items to be calibrated in order to measure entrepreneurs with high
entrepreneurial potential.
Finally,
Vieira and Rodriguez (2014) we presented the preliminary results of the
ENGEmpreende research developed to analyze the perceived attitudes and values
associated with entrepreneurship by engineering students. The sample
consisted of 387 engineering students from the University of Minho in Portugal.
3. METHODOLOGY
Regarding
the approach to the problem, this research is characterized as quantitative
because it considers that everything can be quantifiable, that is, translate
into numbers opinions and information to classify and analyze them. In this
case, the enterprising intentions of the students of the course of production
engineering. As for the objectives, the research is exploratory by providing
greater familiarity with the problem in order to make it explicit or to
construct hypotheses, thus exploring the entrepreneurial characteristics of the
students (SILVA; MENEZES, 2005).
According
to Gil (2002), the case study is characterized by a detailed and exhaustive
study of a few or even a single object, providing in-depth knowledge.
The
approach used in the study to evaluate students' entrepreneurial intent was
presented in Vieira and Rodrigues (2014). The questionnaire was composed of 12
(twelve) questions divided into two parts. The first part was called the
"Profile of the respondents" and was composed of four questions
related to the age group, gender, the student's period of study and monthly
family income.
The
second part was denominated "Entrepreneurial Intentions" and was
composed of eight questions, with three questions to indicate "x" and
five questions filled according to the degree of agreement. For these questions
a Likert scale was used, consisting of five levels of agreement: 1 - totally
disagree, 2 - partially disagree, 3 - neutral, 4 - partially agree and 5 -
totally agree.
The
sampling of this research was intentional non-probabilistic (MARCONI; LAKATOS,
1990). The sample was formed by students of the production engineering course
of the Institute of Exact Sciences and Technology (ICET/UFAM). ICET is linked
to the Federal University of Amazonas (UFAM) and is located in the municipality
of Itacoatiara, 265 km from Manaus/AM.
In
all, 100 questionnaires were answered from 134 students enrolled in the
production engineering course. In this way, the research indicates a level of
confidence of 95%.
In
order to collect data, the following research techniques were used, according
to Marconi and Lakatos (1990): (1) indirect documentation through bibliographic
research (included bibliography related to the subject of study); and (2)
extensive direct observation, through the application of forms of
entrepreneurial intention.
The
research was carried out in three moments: (1) the students' awareness about
the objectives of the study occurred; (2) was the application of the forms of
entrepreneurial intention; and concluding, (3) the data were tabulated and
analyzed. For the analysis and interpretation of the data, position
measurements were used and the data presentation was done through graphs.
4. RESULTS
4.1.
Profile
of respondents
The
sample has a total of 100 respondents, being 28 students of the second period,
20 of the fourth period, 17 of the sixth, 13 of the eighth and 22 of the 10th
period of the course. The classification by gender shows that the majority are
women among the interviewees, being 53 of the feminine gender and 47 of the
masculine gender. Concerning the age range of the interviewees, 92% of the
students are 25 years old, 7% are between 26 and 35 years old, and only 1% are
between 35 and 45. Figure 1 shows the distribution by the monthly family income of the participants, 58%
of the students have a monthly family income of no more than R$ 2,000.00.
Figure 1: Income
of respondents.
4.2.
Entrepreneurial
intention
The
study starts asking about the entrepreneurial behavior of parents with the
following question: "Has he grown up in an entrepreneurial family, does he
have a father or a mother who owns a business?" As for the entrepreneurial
behavior of the parents, 51% of the respondents admitted that the parents were
never entrepreneurs, while 23% said that parents have their own active business, 13% that the business ended
more than five years ago, 9% that the business ended up to five years and 4%
did not know how to respond (Figure 2).
Figure 2: Entrepreneurial Behavior of Parents
With
regard to entrepreneurial intention (Figure 3), the following question was
elaborated: "Have you ever seriously considered starting your own
business?" The options presented posted a positive result with 44% who
stated they are determined to be their own boss in the future, 9% are already
starting the process, 9% who are already their own boss. However, among the
positive responses, 16% say they have abandoned the idea. In the case of
negative responses, 25% reported never having thought about it.
Figure 3: Entrepreneurial Intent
With
regard to predisposition and attitudes about entrepreneurship, the following
question was used: "If I had 30,000.00 reais, how would I invest this
money?" The data show that 40 respondents assume
that "I would invest in a business of my own”. Identify the little
interest in choosing the options: those who would deposit in a savings (24),
invest in an investment fund (8), invest in a car or house (13) or others (15).
Most would invest money in other options and not in the business itself (Figure
4).
Figure 4: Predisposition and attitudes about entrepreneurship
Regarding
the attitude toward self-employment, three items were evaluated: (1) I prefer
to be my own employer to have a secure job; (2) I prefer to build a company of
its own to be the manager of an existing one; and (3) I can only make good
money if it is my own boss. For 51% of respondents admitted in a positive way
that they prefer to be bosses instead of a secure job; those who say they
prefer to build their own company to be the manager of an existing one correspond
to 41%; and 22% agree that it is only possible to make good money if they are
their own boss (Figure 5).
Figure 5: Attitude to self-employment (% of positive
responses)
In
the case of the perceived image of the entrepreneur, seven questions are considered:
(1) entrepreneurs have a positive image in society; (2) in business it is
preferable to be an entrepreneur than an employee; (3) the success of an
entrepreneur is strongly determined by "luck"; (4) training is more
important than personality as a factor of success in entrepreneurship; (5)
entrepreneurship impairs family life; (6) entrepreneurs are convinced; (7)
entrepreneurship is basically an outlet or resource for people who have failed.
Figure
6 presents the positive results to the questions related to the perceived image
of the entrepreneur. The responses indicate the positive image of the
entrepreneurs, emphasizing the importance of having their own company, of
seeing entrepreneurship as an alternative to traditional career thinking and
the relevance of the entrepreneurial personality.
Figure 6: The perceived image of the entrepreneur (%
of positive responses)
With
regard to the study on barriers to entrepreneurship, four questions were
considered: (1) it is difficult to find an idea for a business that has not
been identified; (2) banks do not easily give credit to start-ups; (3)
Legislation is adverse to the management of a company; and (4) other factors.
Figure
7 indicates that 53% of students find it difficult to find a new idea; 45% in relation
to the difficulties that the entrepreneurs have in obtaining lines of credit
with the banks; and only 22% acknowledge that there are many barriers to
legislation that make it difficult to run a business.
Figure 7: Perception of barriers to entrepreneurship
(% of positive responses)
In
terms of risk perception, three questions were considered: (1) I like
challenges. Many of life's best moments occurred as you struggled to achieve a
difficult goal; (2) starting my own business is risky, I can lose everything;
and (3) It is true that we are our own boss, but running our own company
involves a lot of work and responsibility and only brings great headaches. For
85% of the students, challenges are part of life; another 46% indicate that
starting their own business is risky and 38% see the company as a place that
causes overwork and responsibilities as well as headaches (Figure 8).
Figure 8: Perceived risk (% of positive responses)
Consequently
to perceived ability and competencies, ten questions were applied: (1) I adapt
my plans to changing circumstances; (2) I am always persevering until I reach
my goals; (3) I am quite confident about my technical decision-making ability;
(4) I am extremely driven to achieve results; (5) If you decide to participate
in setting up a business, I am confident that I will succeed; (6) my technical
knowledge is very good; (7) I have a lot of self-confidence; (8) When I start
something new, I know that I will be successful; (9) financial services are
complicated and confusing for me; and (10) I'd rather have other people decide
for me. Figure 9 shows the positive data from the survey, where 79% of students
emphasize the sense of adaptation, 88% consider themselves perseverant, 80%
confident about technical decisions, 67% focus on results, 64% do not see
difficulties in the financial aspect and 93% do not like that they decide for
them.
Figure 9: Perceived skills and competences (% of
positive responses)
5. DISCUSSION
Among
the main results regarding the first part of the questionnaire dealing with the
profile of the respondents, the production engineering course has a majority of
female students in opposition to the national male trend. The age group shows
very young students and almost ¼ of the students of the production engineering
course have a family income of less than R$ 1,000.00.
More
than half of the students do not have entrepreneurial parents and less than ¼
of the students' parents have an active business. Even with most students not
having a direct link to entrepreneurship in the family, almost half of the
students intend to become entrepreneurs while ¼ never thought about it and only
16% of students would give up the idea of entrepreneurship.
Because
of the large percentage of students intending to become entrepreneurs, almost
half of them would invest in a business of their own if they had financial
resources. Traditional investments in real estate or real estate still had a
considerable share of students' opinion, accounting for 37%.
The
study pointed out strong indications of self-employment among students at the
expense of a stable career in a secure job. In this way, it is observed that
from the point of view of the students, the success of the entrepreneur is not
determined by the luck, but the person
has a fundamental role in the entrepreneurial intention in relation to the
formation.
The
main barrier to entrepreneurship pointed out in the research concerns the
difficulty in finding a new idea in the current context according to the
majority of the students. Traditional issues involving obtaining credit and
Brazilian legislation continue to be relevant impediment factors.
Positive
posture was observed in dealing with risk, perhaps because it is a sample of
young people, the majority of them would justify this tendency to take risks.
Despite this positive aspect of risk, almost half of the students see the
process of managing their own business as risky. In addition, for 3/5 of the
students having their own business does not represent headaches.
With
respect to perceived ability and competence, it has been shown that resilience,
perseverance, confidence, focus, technical knowledge have been well evaluated
by them. Even the financial question, which ends up being a major problem for
most companies, has been well evaluated in the sense that it is not a hindrance
to the development of companies. The competence related to the decision-making process showed the best
performance, that is, for more than 90% of the students they like to make their
own decisions.
Regarding
the literature review, the results point to an increase in interest in this
area in recent years, as pointed out by Vale et al. (2008) extrapolating the business environment. The search
for a new idea pointed out by the students in the study reinforces the
importance of encouraging the development of innovative entrepreneurs
(VIVARELLI, 2013) or "superstars" entrepreneurs (BAUMOL, 2009) who
will create new products, processes or markets, mentioned in Drucker (1986) and
Saes and Pita (2007). Finally, the skills and competencies required and pointed
out in the study are in line with the results verified in Hermans et al. (2007) and Teixeira et al. (2011) and evidenced in Baumol et al. (2009) as fundamental to
entrepreneurial success.
The
methodology adopted allowed a better understanding of the entrepreneurial
intention among the students of production engineering in such a way that
several aspects, such as profile of the respondents (family income, age-group, and gender), entrepreneurial family, attitudes
toward self-employment, entrepreneur, perceived risk, ability, and competencies were evaluated on both
behavioral issues and future interest in the area. Likewise, the methodology is
adapted to the spectrum of scales to measure entrepreneurial intent or
potential in Brazil as detailed in the literature review.
6. CONCLUSION
The
present work had as objective to analyze the entrepreneurial intention of the
students in production engineering of the Institute of Exact Sciences and
Technology (ICET / UFAM) located in the municipality of Itacoatiara / AM. In
view of the results found, it is believed that the objective of the research
was achieved.
In
terms of the main results, the first part shows the predominance of female
students in the production engineering course analyzed (different from the
national trend); (2) sample of the research formed by young people
(predominance of students under 25 years); and (3) family income below R $
1,000.00.
In
the second part, the highlights were: (4) more than half of the students do not
have entrepreneurial parents, (5) yet almost
half of them have an intention to become entrepreneurs; (6) strong indication
of self-employment; (7) seeks an innovative idea as the main barrier to
entrepreneurship; and (8) resilience, perseverance, confidence, focus, and
decision-making were some of the well-assessed capabilities and competencies.
As
a limitation of the research, the sample considered only the students of the
course of production engineering of the institute, so it is recommended for
future studies the application of this instrument in other courses of the
university in order to obtain a more general view of the entrepreneur's intention of the students.
In
summary, the study pointed to a proactive stance regarding entrepreneurship
among students of engineering production, even considering that the engineering
areas concentrate a large part of their professionals as employees in public or
private companies, however, the current
political and economic scenario influences the professional trajectories of
future engineers.
The
emergence of a new technology boom (as observed in the 1990s), the rise and
strengthening of the movement of incubators, technology parks and startups, the
valorization of the creative economy among other correlated themes reinforce
the importance of entrepreneurship as a vector important for the economic and
social development of a region or country. In any case, both the image of the
entrepreneur and the idea of becoming one are very well seen by the students
of production engineering of the studied institution.
The
relevance of the research lies in evidencing the growth of entrepreneurship
among students of production engineering so that the university contributes to
the formation of professionals who will create high added-value enterprises,
promoting technological development and innovation and impacting local
development.
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