LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Theoretical Background

2.1.1 Entrepreneur

A person who establishes a business or a set of businesses to earn profit by taking financial risk
is known as an entrepreneur. Various successful business owners have defined the term
―Entrepreneur‖ in their own language. Some of them are as follows;

―Someone who can define the business they want to create, see where it is going, and do the
work to get there.‖ Mark Cuban – Owner of Dallas Mavericks, Blogger, Shark Tank Investor

―Someone who envisions, creates, and evangelizes an idea that they are absolutely crazy about.
That idea, it could be a product, book, and consultancy which make it easier for them to get up in
the morning, work ridiculous hours, and keeps their brain buzzing. The entrepreneur can work
alone, within a company, or in a group, but he/she gets itchy at the thought of working a 9-5 job
and following the orders of anyone who isn't efficient and imaginative.‖ Manoush Zomorodi,
Author, Media Consultant.

Entrepreneurs are someone who invest or risk their money in the business or the innovative ideas
and hope for the profitable outcome. It is often discussed by many scholars whether
entrepreneurs are born or made but there is no certain answer for this issue. Entrepreneur is
someone who exercises initiative by organizing a venture to take benefit of an opportunity and as
a decision maker decides what, how and how much of a goods and services is produced. It is
believed that entrepreneurs are made not born. So, various factors leading towards the
entrepreneurship mindset in the business students is analyzed.

2.1.2 Types of Entrepreneur

Based on business environment, various types of entrepreneurs can emerge. To this effect based
on functional characteristics, entrepreneurs are identified into four types as Innovative, Imitating,
Drone and Fabian.
Innovative

An entrepreneur, who introduces new goods, inaugurates new method of production, discovers
new market and reorganizes the enterprise. This type of entrepreneur is preoccupied with
introducing new into the market, organization or nation. They are interested in innovations and
invest substantially in research and development.

Imitating

These are characterized by readiness to adopt successful innovativeness inaugurated by

successful innovating entrepreneur, which is also referred as ‗copy cats‘. They observe an
existing system and replicate it in a better manner. They could improve on an existing product,
production process, technology and through their vision create something similar but better.

Drone

These entrepreneurs are conservative or orthodox in outlook. They never like to get rid of their
traditional business and traditional machinery or systems of the business. They always feel
comfortable with their old fashioned technology of production even though the environment as
well as the society have undergone considerable changes. They always refuse to adopt the
changes.

Fabian

The Fabian entrepreneur is timid and cautious. These entrepreneurs are very careful and cautious
in adopting any changes. They only adopt the new technology when they realize that failure to
adopt will lead to loss or collapse of the enterprise. Apart from this, they are lazy and shy away
from innovations.

2.1.3 Entrepreneurship

Entrepreneurship is often defined as the opportunistic pursuit of economic wealth via creative
initiatives of the individuals operating within a certain environment constrained by limited
tangible resources. Entrepreneurship is the act of being an entrepreneur, which is a French word
meaning ―one who undertakes an endeavor‖. Entrepreneurs assemble resources including
innovations, finance and business acumen in an effort to transform innovations into economic
goods. This may result in new organizations or may be part of revitalizing mature organizations
in response to a perceived opportunity or necessity. The most obvious form of entrepreneurship
is that of starting new businesses; however in recent years, the term has been extended to include
social and political forms of entrepreneurial activity. Entrepreneurship can also be defined as
creating or seizing an opportunity and pursuing it regardless of the resources currently controlled
(Ramzan, 2012). The act of finding, designing and carrying out a specific type of business which
turns technology and the raw materials into an invention can be referred to as entrepreneurship.
Entrepreneurship brings with itself a whole set of risks of failures and factors to success
(Abideen, 2011).

Entrepreneurship has been associated with creating economic growth and prosperity, introducing
new products, processes, solution and services to consumers and manufacturers, creating most of
the new jobs in both developed and transitional economies and providing meaning to individuals
who seek autonomy, challenges and an opportunity to be creative. Entrepreneurship concerns the
environment conditioning opportunity, the process of discovering opportunity, the evaluation and
exploitation of opportunity, and the individual decision-makers who do these things.

Entrepreneurship is often defined as the process of starting and running one‘s own business. The
term entrepreneur is increasingly employed to refer to the type of individual who is highly
determined, confident, creative and sales oriented personality, familiar with the trends and able
to translate the vision into real business. These individuals are often viewed as reckless risk
takers. But because of their good grasp of things their risk taking is more calculative than that it
apparent (Shane, 2000). So, the process of developing or running a business or businesses, taking
all the risk associated with, it is called entrepreneurship.

2.1.4 Role of Entrepreneurship

Entrepreneurship plays an influential role in the economic growth and standard of living of the
country. As globalization reshapes the international economic landscape and technological
change creates greater uncertainty in the world economy, the dynamism of entrepreneurship is
believed to be able to help to meet the new economic, social and environmental challenges.
Governments increasingly consider entrepreneurship and innovation to be the cornerstones of a
competitive national economy, and in most countries entrepreneurship policies are in fact closely
connected to innovation policies, with which they share many characteristics and challenges. As
a startup founder or small business owner, they may think that they are simply working hard to
build their own business and provide for themselves and family but actually they are doing a
whole lot more for the local community, state, region, and the country as a whole. The dynamic
process of new firm creation introduces and disperses innovative products, processes and
organizational structures throughout the economy. Entrepreneurship objectives and policies
nevertheless differ considerably among countries, owing to different policy needs and diverse
perspectives on what is meant by entrepreneurship.

Some of the contributions of entrepreneurship to the nation‘s economic development are

described below.

 Creation of Employment

Entrepreneurs are by nature job creators as opposed to job seekers. When a person becomes
an entrepreneur, there is one less job seeker in the economy. In addition to that, that person
provides employment or multiple other job seekers. The job creation by new and existing
businesses is one of the basic goals of economic development.

 Encourages Better Standard of Living

Entrepreneurship is a key in raising the standard of living. Entrepreneurs not only provide
means for living through employment but they also provides people‘s needs and wants. They
develop as well as adopt innovations that lead to improvements in the quality of lives. The
boom in the high tech electronics, personal shopping experiences, luxury cars and other
products which have made our life easier are all a result of this rise in our standard of living.

 Initiate Chain of Support and Wealth Sharing

While establishing the business entity, entrepreneurs invest their own resources and attract
capital from investors, lenders and the public. This mobilizes public wealth and allows
people to profit from the success of entrepreneurs and growing businesses. This kind of
pooled capital results in wealth creation and distribution.
  Enable Balanced Regional Development

Entrepreneur generally looks for places that are cheap to set up business which are usually
the least develop region. These new businesses and industrial units help in the development
of the regions. This eventually leads to infrastructure improvements including better roads
and rail links, airports, stable electricity and water supply, schools, etc. that would not be
available otherwise.

 Expanding Exports

As businesses grow, they eventually want to start exporting to expand their businesses to
foreign markets. It is considered an important key factor of economic development since it
provides access to bigger markets which ultimately leads to currency inflows and access to
cutting-edge technologies and processes being used in more developed foreign markets.

2.1.5 Determinants of Entrepreneurship in Nepal

The history of entrepreneurship and the factors that promote entrepreneurship in the country has
been explained (Bhochhibhoya, 2011). If peek in history, there is trend of historical decline of
self-employment in Nepal. Across different stage of development, a shift from agriculture to
manufacturing and economies of scale in production by larger enterprise in many sectors offered
better opportunities. Additionally rising real wages increase the opportunity cost of self-
employment relative to the return, inducing marginal entrepreneurs to become employees. Also,
due to globalization and opportunities available in developed nation the trend of migration and
brain drain has increased. With these drift only fewer individuals are willing to run the risk
associated with becoming an entrepreneur.

Nepalese entrepreneurs have been facing so many barriers in the way of creation of new ventures
and smooth operation of the existing ones. Nepalese businessman and entrepreneurs have viewed
that their main barriers include limited access to capital, political instability, and low return from
investment, low level of confidence and lack of favorable policy of the government. Similarly,
political instability, low level of confidence and low return from industrial investment are the
major causes responsible for poor entrepreneurial motivation in Nepal (Ajay, 2008). It is realized
that with this slow pace of industrialization Nepal can‘t stand in global competition. Due to
complex, and frustrating political situation, intertwined with daily economic activities, Nepal‘s
economic situation is further deteriorated. Thus, it is very appropriate time at present to review
such activities and discourage unproductive investments through the private sector awareness.
People in Nepal need to understand entrepreneurship which can be way to create job, grow
international competitiveness in global market with new mandate to promote and/or create
innovative business. Thus the purpose of this article is to understand the factors that can promote
entrepreneurial activities in Nepal. It is believed through focusing in three dimensional
approaches: the role of institutions, the role of social network, and the role of personal
characteristics in determining and focusing on factors that can play role in prospering
entrepreneurship in Nepal (Ajay, 2008).

Policy maker needs to consider entrepreneurship as a key mechanism for enhancing economic
development. Even though political structures have not enjoyed established democracy system,
free markets have drastically replaced planned and command economies. Institutional
environment plays significant role in promoting entrepreneurship in country. Corruption,
racketeering, bureaucratic, harassment, lacking intellectual property right and contract
enforcement, unhealthy competition, lack of infrastructure the weak development of financial
intermediation are few factors that weigh negatively on the development of entrepreneurship
(Kutllovci, 2008).

2.1.6 The Benefits of Entrepreneurship

Entrepreneurship is important for economic growth, productivity, innovation and employment.

Entrepreneurial activities have been recognized as an important element in organizational and
economic development, performance and wealth creation. Entrepreneurship is important since it
has the ability to provide incomes and opportunities, not only to the local or national level but
also internationally. Based on CEOworld magazine, most of the countries in the world start to
contribute to economic sectors especially in entrepreneurship. It also helps in changes and
development towards the country especially in developing countries. Due to entrepreneurship,
here are the some benefits we can obtain for promoting social change to driving innovation.
 Entrepreneurs add National Income
Entrepreneurial ventures help generate new wealth. Existing businesses may remain
confined to existing markets and may hit the glass ceiling in terms of income. New and
improved products, services or technology from entrepreneurs enable new markets to be
developed and new wealth to be created. Entrepreneurship increase per capita output and
income.

 Entrepreneurs spur Economic Growth

New products and services created by entrepreneurs can produce a cascading effect,
where it stimulates related businesses or sectors that need to support the new venture,
furthering economic development.

 Entrepreneurs create Social Change

It is a catalyst for economic change and growth. Through offering unique goods and
services, entrepreneurs break away from tradition and reduce dependence on obsolete
systems and technologies. This results in an improved quality of life, improved morale
and greater economic freedom.

 Entrepreneurs are their own bosses

They make the decisions themselves. They choose whom to do business with and what
work they will do. They decide what hours to work, as well as what you pay and whether
to take vacations.

 Entrepreneurs performs overall task

It provides the ability to be involved in the total operation of the business, from concept
to design and creation, from sales to business operations and customer response. It offers
the prestige of being the person in charge.
  Entrepreneurship encourages innovation and creativity
It develops new products or service for the market to fulfill human needs. It also
stimulates investment interest in the new ventures being created. Entrepreneurship
through its process of innovation creates new investment of new ventures. More ventures
being created, new jobs will be produced, thus reduce the unemployment rate.

2.1.7 Challenges and Opportunities faced by Entrepreneurs due to COVID 19

Every crisis brings challenges and threats to entrepreneurs and their organizations, no matter
if initiated by human behavior, natural disasters or economic mechanisms (Doern, 2019). As
a response to mitigate coronavirus spread and save lives, governments in affected countries
imposed desperate measures of social distancing, widespread lockdown, and restrictions on
travelling, movement, and people gatherings. Entrepreneurs were not an exception. They had
to start moving their business activities online. However, not everything could be solved
conveniently online. COVID-19 has significantly influenced the entrepreneurial engagement
of self-employed persons. Some entrepreneurs had to close their businesses temporarily as a
result of governmental restrictions; others had to impose precautions and to run their
activities in reduced extent. They also needed to find innovative solutions in all aspects of
their entrepreneurial endeavor as the consequences of the pandemic linger on (Dvouletý,
2020). As the COVID-19 continues its disruption, the livelihood of many entrepreneurs and
small business owners has been threatened. According to a recent Goldman Sachs survey,
50% of business owners that were surveyed said they didn‘t think they could continue
business operations for more than three months. Our current situation is deeply unsettling.
Entrepreneurs are facing many obstacles, including ensuring the businesses they have put
their blood, sweat, and tears into continue to stay afloat. On top of that, many of them have
employees that they‘re trying to protect and reassure- a monumental task when they
themselves are struggling with burnout.

The continued lockdown in the country has brought significant retrenchments in businesses
across all sectors and industries with cash flow and earnings under threat. As a result of the
crisis, businesses of every size are struggling to make the ends meet. The large-scale
businesses might still be able to survive and adjust with the situation after the lockdown,
however, the SMEs and startups are the ones that will face continued challenges and the
lockdown may never be over for them. Some of the challenges faced by entrepreneurs due to
COVID-19 are briefly explained below.

 Weak supply chain linkages

Weak supply chain has been a key challenge for the Nepali business landscape
historically with producers unable to find markets while consumers anguished with
periodic shortage of goods. With the national lockdown, the situation has only further
worsened as producers are now facing the problem of selling their finished goods as well
as availing manufacturing inputs/ raw materials given the travel and import restriction
along with limited resource mobilization capabilities. Likewise, on the consumer end,
limitation or unavailability of infrastructural and logistical access has escalated the
supply chain problems. Despite being allowed by the government to operate, essential
produce manufacturers are forced to operate in lower capacity.

 Seasonal nature of business

Various M/SME businesses are seasonal in nature. The onset of wedding season from
April 2020 would in normal times create high seasonal demand for services. It can be
implied that even when the situation starts to normalize (post lockdown) weddings are
likely to be a smaller affair with only few guests, thus curtailing demand for seasonal
services related to weddings for the current year. Likewise, the cancellation of spring
mountaineering expeditions and complete halt in tourist flows since late March, absence
of celebration events during Nepali New Year (April 13 th), halt in domestic tourism travel
and business travel has created a major slump for travel related businesses.

 Expected continuation of decline in demand

As businesses fail to generate transactions, the resultant slump in earnings will impact the
demand for non-essential goods and services. In addition to this, the halt in economic
activities in migrant destination countries has resulted in layoffs with some countries
sending laborers back home. Nepal receives an estimated USD 8 billion in remittance
annually, which is evidently headed to spiral downwards to create a serious slump in
 consumption demand. This will create a further precarious situation for the survival of
many businesses. Remittance alone generates one third of Nepal‘s GDP.

 Low capital and thin margins

An estimated 33% of SMEs in Nepal fund entrepreneur‘s initial capital from ancestral
property, 26% use the savings of their proprietor while only 16% is financed through
bank loans. The survival of businesses in the current scenario will depend on the financial
position and runway available. Although typically businesses will likely weather a one-
month halt in transaction by eroding on the business‘ cash reserves or proprietors‘
personal savings or utilizing existing lines of working capital credit from financial
institutions. The prolongation of the lockdown and expected delay in restarting
businesses will have stronger implications on survival of the business. A large number of
white-collar and blue-collar workers have left cities and travelled to their home districts
to weather the uncertainties of the COVID-19 crisis. This implies that it will take at least
several weeks until all of them will have returned to their work destination domestically
for business to start operating normally. Access to capital will be tighter and government
intervention and stimulus will be the only support structure that businesses will look to
for survival and recovery.

 Lack of awareness of relief packages from Government

The survey carried out by Nepal Rastra Bank in 2019 on SME Financing had highlighted
that the vast majority of SMEs are unaware of programs launched by the government and
central bank. This has contributed to the low uptake of subsidized or concessional
finance. Given these circumstances, it becomes evident that even when the government
launches stimulus and relief packages, the lack of awareness amongst SMEs will curtail
their impact. As 85% of SMEs take loans from commercial banks, it becomes crucial that
the latter take proactive steps to ensure clear communication with clients on how to reap
benefits from government programs, or to explore options for loan restructuring, based on
projected revival of particular businesses so as to keep businesses afloat during the crisis.
The same has also been observed during the earthquake and other crises which stand
 validation for the need to have special focus on a tiered and aligned approach of

awareness and execution. ( Shrestha S. , 2020)

This is a very tough and challenging time for everyone, not just startups. During this
unprecedented time, entrepreneurs should work on their strategy and make themselves stronger.
We are in such a situation when one needs to change their strategies every day to sustain in the
market. So, the presence of the mind is vital in this scenario. Likewise, staying optimistic that
things will be better someday, and being constantly updated about the current international
startup and business practices is also equally necessary for them. It is also crucial to maintain
warm relations with the stakeholders. For the entrepreneurs, their office and team members are
like their second family so coordinating with them with regular phone calls and virtual meetings
is crucial. Furthermore, the startups should also focus on maintaining casual relationships with
their customers via phone calls, payment schemes, and social media presence. For instance, for
those customers who are yet to make their payments, the startups should come up with various
payment schemes like paying in installments so that they could at least maintain some sort of
cash flow.

The entrepreneurs as leaders should cater a positive message with hope to the team members like
‗we need to cope up with this abnormal situation together, and with your support, united we can
grow.‘ This sounds a bit emotional or philosophical, but it matters a lot because emotions and
psychology are crucial in business. Right now, the entrepreneurs can relate this situation with the
first day of their operation. On the first day of any business, one is always ambitious without
even knowing about the future. Today is also the same. That is why being positive is the best
thing for now. Another important step that the startups could make is paying the payables only if
they are in the position of holding adequate cash balance as of now. This helps in keeping the
economy moving and maintaining cash liquidity (Budhathoki, 2020).

Notwithstanding the significant economic disruption caused by the COVID-19 crisis (OECD
2020e), long-term effects on employment and innovation may be mitigated by taking steps now
to support existing start-ups and the creation of new firms, limiting the negative effects. The
periods of crisis are not only a challenge, but also provide new opportunities for entrepreneurs,
as start-ups can help address the constraints created by difficult health or economic conditions,
and respond to changing preferences and needs. Relevant examples in the time of COVID-19 are
outlined below.

 Rise of platform business and its adoption

The sudden halt in movement has compelled consumers and sellers to pivot their
purchases and sales behavior, generating a surge in traffic to platform based online
business. Before the lockdown, only a few platform based businesses such as Daraz,
Kirana, Sastodeal etc. provided online grocery purchase services. Since the lockdown
was imposed, other platform businesses such as Foodmandu, Bhojdeal, etc started a new
line of fresh grocery delivery. The traditional brick and mortar supermarket also started
taking orders via phone, viber, whatsapp and some from their own website. Agricultural
produce companies, dairy, fresh meat suppliers who traditionally sold in physical markets
are now seen to be associated with platform businesses to sell their merchandise. Post-
lockdown also many of these businesses are expected to continue using these new
distribution channels, changing the way of doing business particularly for small
enterprises. The rush to digitalization will open many opportunities for entrepreneurs as a
whole.

 Return of migrant labor

A number of migrant workers both domestically and internationally have reportedly
returned to their place of origin and continued to do so despite the lockdown in place. On
a positive note, this has provided the much-needed youth labor in agriculture pockets
where winter crop harvesting has started. Moreover, semi-skilled and skilled migrant
workers are now a rich resource for the rural area where some have reported to have
started investing in agriculture. NRB has also introduced a provision to avail subsidized
loan for the purpose of starting a business, for individuals who have gained approval for
foreign employment but were not able to travel due to the crisis. This can potentially be
leveraged to start new businesses and contribute to the revival of the local economy.
 Awareness of importance of strong local infrastructure and economy

The disarray caused by the lockdown has increased awareness for the country‘s need to
become self-reliant on essential goods and invest in public infrastructure. The importance
of a vibrant local economy from neighborhood grocery stores to well-equipped hospitals
and labs in the locality has garnered major attention. While traditionally people in second
tier cities, semi urban and rural areas relied on travel to the capital to avail services
ranging from medical treatment to education, and to find jobs, the current lockdown has
highlighted the importance of arm‘s distance reach to basic infrastructure and facility.
This hopefully is expected to translate into investment in local infrastructure, adoption
and promotion of locally produced goods.

 Cost reduction measures

Businesses cannot rely only on the government to find a solution to overcome this
situation. Many of the SME/Startups will need hand holding to implement cost reduction
measures for sustainability. It is expected that with limited funds entrepreneurs will focus
on core operational needs and cut down on marketing expenses to sustain it. This is a
time when companies need to join hands and support one another to stay ahead and afloat
by sharing knowledge and resources. For instance, customers inside Kathmandu valley
can order goods from Big Mart through Daraz. These companies were able to combine
their resources to create an opportunity for both during the lockdown.

 Changes in structure and policy

Companies can analyze their past transactions and activities during this lockdown and
draft a concrete plan to move forward after the lockdown. This is the right time for
stakeholders to bring structural and policy level changes in the company to prepare them
for a crisis like this in the future. Additionally, companies can provide online resources to
their employees to enhance their existing skills and develop new skills. This way
companies can appoint employees from one department to another at a time of need. For
instance, people on the sales team could perhaps also help out the marketing team. Lastly,
entrepreneurs should make themselves flexible and adjust their business operation as per
 the need of the situation to find a new normal for operating under government-imposed
health and safety restrictions. (Chaudhary , 2020)

2.2 Empirical Review

 Niroula (2019) focused mainly on the mindsets of students to become an entrepreneur.

The survey found out different factors that directly or indirectly affects entrepreneurial
mindset among 268 undergraduate students of Nepal. She conducted several tests to
confirm the relationship between independent variables with entrepreneurial mindset.
Many of them were accepted and many of the obvious factors were rejected. Factors like
self-efficacy, role model, and independence were accepted and factors like Experience,
Altruism, Monetary aspect and religiosity were rejected. It was found that independence
is the major factor for any entrepreneurial mindset to flourish in the countries like Nepal.
Since, entrepreneurship is all about innovation, she have discussed about the general
ideas that are generated because of the influence of different factors. (Niroula, 2019)

 Kolvereid (1996) reported that the sorts of experience additionally influence

entrepreneurial expectation. He found that respondents with entrepreneurial experience
have higher entrepreneurial aim than those without such experience. Work status is
another trademark that influencing entrepreneurial expectation. There is a beneficial
outcome of individual unemployment on the goal of a person to get occupied with
entrepreneurial exercises. (Kolvereid, 1996)

 Badran (2019) explored the factors affecting students‘ attitude towards entrepreneurship
at Princess Sumaya University for Technology (PSUT) by focusing on entrepreneurial
awareness, entrepreneurial characteristics, and the impact of entrepreneurship on the
individual and the society. The major of study was the strongest variable affecting
students‘ attitude towards entrepreneurship at PSUT; the results showed that students at
the business school in all its majors had a more positive attitude towards entrepreneurship
than the students in other schools. This can be linked to the awareness factor as most of
the business school students said they have taken a specialized course in entrepreneurship
 and attended entrepreneurship events. The results of this study concluded that the
demographic factors (year of study, major, secondary examination, level of education,
attending entrepreneurship events, reading books about entrepreneurship, sector of
father‘s job, learning about entrepreneurship, type of high school, father runs his
company, mother runs her company, gender, work status, taking a specialized course in
entrepreneurship) affect the students attitude towards entrepreneurship at PSUT in terms
of: students‘ awareness towards entrepreneurship, students‘ perception towards the effect
of entrepreneurship on the individual and students‘ perception towards the effect of
entrepreneurship on the society. Therefore, entrepreneurial intention is positively affected
by including specialized entrepreneurship courses to the curriculums, holding
entrepreneurship related events and initiatives, and providing an environment that
supports entrepreneurial activities in campus; these advices accompany with the results of
other related research work (Badran, 2019).

 Afifi (2018) examined the dimensions of theory of planned behavior on entrepreneurial

mindset such as attitude, subjective norms, and perceived behavior controls. The study
made theoretical contributions to body knowledge of entrepreneurial intention by using
theory of planned behavior in different culture, practically; the study provides useful
knowledge for policymakers to improve the entrepreneurship in our country. The Results
were discussed, and then submit proposals for future research. This study has tested the
direct effect of Entrepreneurial Attitude, Subjective Norms and Perceived Self on
entrepreneurial intention in the context of Sudan; the findings demonstrate that
Subjective Norms and Perceived Self are a strong predictor of students‘ intention to start
a business. The findings of this study provide theoretical and practical implications (Afifi,
2018).

 SITOULA (2015) indicated that youth entrepreneurship development initiatives were

lacking in Kathmandu valley. Likewise youth entrepreneurship development services
were also lacking in the city. Young entrepreneurs in Kathmandu are devoid of business
development services such as business counseling, finance, mentoring, and incubators.
Absence of youth support structures was another impediment young entrepreneurs are
 encountering in this area. Since, creating a favorable business environment to youth
entrepreneurship development would convince more youth to exploit business
opportunities in the market. Therefore, it can be said that immature youth
entrepreneurship development in Kathmandu valley is because of lack of awareness and
inaccessibility of entrepreneurship support structures and initiatives. Another finding of
this research is that entrepreneurship was considered to be a best option for economic
participation rather than employment. This finding support that self-employed person
tend to earn less than paid employees does not hold true. Awareness about the advantages
of entrepreneurship could be determining factor in this regard. (SITOULA , 2015)

 Purusottama (2019) aimed to answer the effectiveness of entrepreneurship education

program (EEP) towards entrepreneurial preference. Surveys among university students
were conducted in this research, particularly to those who were exposed to EEP during
their studies. By using the Theory of Planned Behavior (TPB), the findings conveyed that
EEP is indeed effective and in line with students‘ entrepreneurial preferences. The results
of the analysis show that EEP was able to give a positive emphasis on student
entrepreneurial preferences, both intention to value creation (starting up a new business)
and entrepreneur as a professional attraction. The findings shows that based on family
work, not all factors have a significant and positive influence on student entrepreneurial
preferences, regarding the decision to create a business or to work as an entrepreneur.
Attitude and perceived behavioral control have a positive influence on entrepreneurial
preferences ( Purusottama, 2019).

 Amouri (2019) analyzed the effect of role models on the development of entrepreneurial
intention among graduate students in Tunisia. Findings suggest that students‘
entrepreneurial intentions are developed through business contacts with already
established organizations and firms. Besides, our results signaled the eminent role of
parents, family, and reference group in fostering Tunisian students‘ inclination to start
their businesses. The research has investigated how role models contribute in shaping
graduates decision to launch their own businesses. With reliance on the theoretical and
empirical studies, research have grouped role models into four sub-elements
 (organizational, parental, familial, and reference group) in connection to entrepreneurial
intention. Accordingly, the investigation has revealed that individuals with relatively
large business networks are more likely to get access to information and valuable
resources, which enhances their likelihood to the field of entrepreneurship and raises their
tendency to identify entrepreneurial opportunities. The study further shows that
individuals who are embedded in entrepreneurial networks, notably the entrepreneurial
role models as sources of tacit knowledge, have a positive impact on entrepreneurial
intentions. Our results concerning the effects of role models (i.e., organizational, familial,
parental, and reference group) add important new insights on the role of close ties
information providers. Hence, the hybrid of these elements serves to give a thorough
picture about the eminent influence of role models, embodied in intricate and keen
relationships, on shaping entrepreneurial intentions among prospect business creators
(Amouri, 2019).

 The study was mainly based on the perceptions of the youths. A limitation might arise in
that possible differences may exist between ―perception‖ and ―reality‖. Another
limitation of this study is that it investigated the constraints to youth latent
entrepreneurship from students who are in the education system. However, there are
some youths who are out of school, who are jobless that would have qualified for this
study but were not included. Business culture is lacking in most university graduates
hence this should be explored further in a study. Further studies can investigate the
barriers faced by actual entrepreneurs (i.e. youths that have actually started their
business). This could help to reduce the high failure rate of small entrepreneurial firms in
South Africa. (Fatoki & Chindoga, 2011)

 The results indicated that the subjective norm of university students has a significant
positive impact on their entrepreneurial attitude and entrepreneurial self-efficacy, and all
of these factors have a significant positive impact on their entrepreneurial intentions. In
three types of factors including individual/psychological factors, family background
factors and social environment factors, except family background factors,
individual/psychological factors and social environment factors have significant influence
 on university student‘s entrepreneurial intentions. Family background factors of
university students can‘t be controlled by policy, but individual/psychological factors and
social environment factors can be regulated by education and relevant policy instruments.
For instance, university students can be supported for creating their own business and
promote their entrepreneurial competence, self-controllability and entrepreneurial self-
efficacy to make them acquire more successful entrepreneurial experiences by taking a
series of measures such as entrepreneurial education and entrepreneurial skill training,
developing appropriate risk propensity, making a encouraging and supporting
atmosphere, setting up entrepreneurial funds and incubating entrepreneurship of
university students. By these education and supporting policies, individual/psychological
status of university students and social environment are expected to be changed to
promote university student‘s entrepreneurial intentions, reaching the goal of promoting
employment by entrepreneurship. (Bhandari, 2020)

 The aim of the study was to investigate the influence of curiosity, risk taking and
creativity to entrepreneurial intention. Analysis has shown risk taking and creativity have
positive and significant relationships with entrepreneurial intention. In Malaysia, many
actions and measures have been taken by the government to create entrepreneurship
interests especially among youths. Schools and universities are instructed to emphasize
entrepreneurship activities in order to attract students to have interests in this field.
However, to gain their interests, the government should first aware the factors that
determine entrepreneurship intention and focus on these factors to mould the students.
This study was important as it provides an insight on the areas to focus on in order to
foster entrepreneurship spirit and interest among students for them to become great
business leaders in future. ( Zani, Ahmad, & Zakaria, 2016)

 Piperopoulos & Dimov (2015) contextualized the relationship between student‘s self-
efficacy beliefs and entrepreneurial intentions in the content and pedagogy of the
entrepreneurship course. Using the logic of regulatory focus theory, the study argue that
the nature of the entrepreneurship course - whether theoretically - or practically-oriented
creates a distinct motivational frame for entrepreneurship in promotion or prevention
 terms. The test done among 114 students who enrolled different entrepreneurship courses
shows that higher self-efficacy is associated with lower entrepreneurial intentions in the
theoretical oriented courses and higher entrepreneurial intentions in the practically
oriented courses. The study argued that this inconsistency lies in treating the term
entrepreneurship education as monolithic and revealed that the different approaches to
teaching entrepreneurship (in terms of content/context and the adopted pedagogies)
engage with and channel self-efficacy into entrepreneurial intentions with differing
results. The divergent effect of self-efficacy on entrepreneurial intentions contributes to
the theory of planned a nuanced understanding of the notion of perceived behavioral
control or perceived feasibility. (Piperopoulos & Dimov, 2015)

 Evan (1989) investigated the role of entrepreneurial attitudes and entrepreneurial self-
efficacy on an individual‘s intention to engage in entrepreneurial behavior. The study of
four hundred fourteen students studied at the beginning of their first entrepreneurship
class in MBA programs in Australia (46), China (39), India (204) and Thailand (125)
between 2003 and 2004. They measured the entrepreneurial intentions of the students
measuring intentions to engage in a range of entrepreneurial behavior. Their result found
that individuals who prefer more income, more independence and more ownership have
high entrepreneurial intentions. The study found risk propensity and entrepreneurial
intention have no significant positive relationships were also found between
entrepreneurial self-efficacy and entrepreneurial intention. (Evan, 1989)

 Fatoki and Patswawairi (2012) investigated the factors that motivate or hinder immigrant-
entrepreneurs to pursue entrepreneurship from a sample of 101 African immigrants in
South Africa and found that immigrant entrepreneurs were driven into entrepreneurship
by both push and pull factors with unemployment being the most important push factor.
The authors add that the obstacles to the performance of immigrant-owned businesses
include finance, weak markets, human capital and lack of support. (Fatoki & Patswawair,
2012)
 Karthikeyan (2019) attempted to find the prevalence of entrepreneurial qualities and
thought process towards self to take entrepreneurial venture as their career. This study
also attempts to find the abilities with qualitative parameters, that the students believe are
prevalent in them. The study attempts to explore whether they possess the basic qualities
such as working hard, expectations of financial success, family support, energetic, the
locus of control, ability to take a risk, sacrifice employment benefits, self-confidence,
Integrity and determination and few more. The study revealed that there is an urgent need
for training and development program in developing future entrepreneurs since the
sample proves that their scope for improvement, the training shall focus on improving the
outlook in the students, to have inward look into their characteristics, and make them
adopt the qualities of an Entrepreneur. The qualities include hard-working mentality, that
they must be trained to have a feeling that they must increase their commitment to work
and must recognize that they need the stamina and outlook towards improving their
energy levels and must develop that consistently. They need to be trained on the wants of
being an entrepreneur and that they need to establish a very attainable and positive
financial goal to reflect upon their business needs (Karthikeyan, 2019).

 Pfeifer, Sarlija & Susac (2014) supported the implication that self-efficacy and
entrepreneurial identity mediate the educational impact on intentions. The personal,
situational, educational, and social backgrounds of the students that have direct impact on
entrepreneurial intentions are rather comparable with those hypothesized by theory or
supported in previous research. The paper contributed to the field of SCCT-based
intention models by filling the gap in the empirical evidence of the theoretical framework
validity in the context of developing entrepreneurially young countries. It was found that
the entrepreneurial intentions are higher for students who perceive entrepreneurial
identity as an attractive career option, who feel capable of performing entrepreneurship-
related tasks, who perceive that such a career choice enjoys positive valuations from
family members or other important referrals, and who have a wealthier family
background. (Pfeifer , Sarlija, & Zekic Susac, 2014)
 Policymakers are making a concerted effort towards increasing entrepreneurship supply
by encouraging students to opt for an entrepreneurial career path after graduation. This
study provides some insights towards policy directions for increasing the supply of
entrepreneurs. The impact of entrepreneurship education on EI shows the need for
continuous monitoring and advancement of entrepreneurship development programmes.
The strength of the mooring factors in predicting EI emphasizes the need to improve
governmental support and provide easy access to finance for young graduates.
Furthermore, it is very important that entrepreneurship is culturally imbibed by enabling
a connection between young graduates and successful entrepreneurs in a mentor-protégé
relationship. This may increase the self-efficacy of potential entrepreneurs and also
engender a positive attitude towards entrepreneurship. It may also be worthwhile for
policymakers to start deploying willing graduates (or students) to entrepreneurial
ventures (including informal business sectors) across all trades during the mandatory one
year NYSC program to enable the development of necessary human capital and business
networks necessary to initiate and manage their enterprise when it eventuates. These
crops of young graduates may also be empowered at the end of their service year with
substantial seed capital to start-up. (Ojiaku, Nkamnebe, & Nwaizugbo, 2018)

 Karimi, Biemans, Lans, Mulder, Chizari (2012) assessed the impact of entrepreneurship
education programs (EEPs) on entrepreneurial intentions of 320 students following
entrepreneurship courses based on the Theory of Planned Behavior (TPB). Data were
collected by a questionnaire before and after completing EEPs and the result indicated
that EEPs significantly influence perceived behavioral control (PBC) and subjective
norms. However, no support was found for the effects of EEPs on attitudes toward
entrepreneurship and intention. The findings suggest that the TPB could be considered to
provide a useful framework to analyze how EEP might influence students‘
entrepreneurial intentions. The study provides valuable information and insight for those
who formulate, deliver and evaluate educational programs to increase the entrepreneurial
intention of students. The findings strongly suggests that participation in entrepreneurship
education programs can positively influence students‘ subjective norms and PBC,
 conforming that universities can shape and foster entrepreneurial abilities and subjective
norms through EEPs. (Karimi, Biemans, Lans, Mulder, & Chizari, 2012)

 Selcuk (2008), revealed that only two subsets of proposed model were significant
predictors of entrepreneurial intention. The first factor is educational support that
indicates mainly a supportive university environment. According to the results, if a
university provides adequate knowledge and inspiration for entrepreneurship, the
possibility of choosing an entrepreneurial career might increase among young people. It
is obvious that this result confirms the key role of education in the development of
entrepreneurial intention. Second factor, which also emerged significant in the survey, is
structural support. It is obvious that fostering entrepreneurship requires a more
comprehensive support including the collaboration of all sectors in the society. Despite
its weak explanatory power, the analysis also showed that this type of structural support
might affect entrepreneurial intention of university students. It is confirmed that self-
confident respondents perceive structural support more favorable than others. In this case,
the level of self-confidence might affect one‘s perception on external environment.
Although the structural conditions are similar for everyone living in the same context, the
perceptions, attitudes, and behaviors might vary. Therefore, the structural support for
entrepreneurship is very significant to stimulate people to be an entrepreneur. The third
factor of model is perceived relational support. However, the result of analysis indicated
that entrepreneurial intention was not associated with this dimension. (Selcuk, 2008)

 Santos (2007) found the specific influence of the new socioeconomic factor of social
capital on the formation of entrepreneurial intentions is analyzed. Due to the importance
attributed nowadays to the entrepreneurial capacity as a source of competitive advantage
and economic development in the world of globalization, the research focused on the
analysis of the start-up process. Social capital has been incorporated as a novel factor to
different entrepreneurial models. Social capital is the whole set of relationships
individuals have. It offers access to other production resources, such as physical or
human capital, and also facilitates decision-making processes and collective action
through reciprocity and mutual trust. It would be necessary to clarify which specific
 values from the closer environment are transmitted to the individual and how the
transmission takes place. On the other hand, it is also important to increase our
knowledge of the type of elements reinforcing trust and self-confidence when an
individual gets in touch with entrepreneurial networks or entrepreneurial promotion
institutions. Finally, new and better constructs to measure social capital, either bonding or
bridging, are needed. In this way, clearer results would be obtained, and a better
understanding about their effects on entrepreneurial intention would be gained (Santos,
2007).

 Khadeeja (2017) found that innovation, entrepreneurship training & education, family
background, government support program, social entrepreneurship, women participation,
individual entrepreneurial characteristics; participation of micro, small & medium
enterprises, youth empowerment, and collaboration of government university-industry is
the key tool for entrepreneurship development. Stimulating employment will eventually
help alleviating poverty. This study also found that there is a strong relation among
students entrepreneurial attitude, subjective norms, perceived behavioral control.
Moreover, the entrepreneurship teaching methodology has moderating effects on every
relationship. Previous studies found that there is a strong relationship between the
attitude, subjective norm, perceived behavioral control, entrepreneurship teaching
methodology and entrepreneurial intention, while there is few studies focused on the
effect these variables on entrepreneurial intention especially among students in Malaysian
universities. Thus, the gap of this research is Malaysia country as a developing country,
the entrepreneurship is seen as an engine of economic progress, job creation, social
adjustment, and increase graduate unemployment (Khadeeja, 2017)

 Mirjana (2018) presented research on determinants of entrepreneurial intentions through

the framework of the theory of planned behavior and an individual innovative cognitive
style. By employing the theory of planned behavior, the authors evaluate how personal
attitudes, subjective norms and perceived behavioral control can affect one‘s intentions to
become an entrepreneur. Additionally, the innovative cognitive style is tested as a
potentially significant determinant of entrepreneurial intentions. The results suggest that
 personal attitudes towards entrepreneurship, subjective norms and perceived behavioral
control are positively related to one‘s entrepreneurial intentions. The innovative cognitive
style has also been found to be significant in creating one‘s intention to become an
entrepreneur. The paper extends the current knowledge on entrepreneurial intentions by
analyzing the exclusive and mutual influence of different factors recognized by the theory
of planned behavior and the innovative cognitive style on entrepreneurial intentions, as
well as providing useful insights into antecedents of entrepreneurial intentions in the
Slovenian context (Mirjana, 2018).

 This study has sought to respond to the concerns and suggestions found in the literature
regarding the need to carry out studies in greater depth and in a comparative generational
and regional context of factors that influence the entrepreneurial intention of young
people. This has sought to enrich theoretical and practical knowledge in this field,
particularly in the case of the Generation Y of Spain and Poland. Taking into account that
the young people of Spain and Poland value very positively all the observed variables
presented, given the high scores of the items, it is concluded that this segment of the
population has a favorable predisposition to entrepreneurship in both countries. This
predisposition favors action in the educational context and through other institutions to
promote entrepreneurship, and thus, contribute to the sustainable development of regions.
As such, policymakers can use the findings of this research to establish policies to
improve the conditions in the ecosystems for sustainable entrepreneurship in their
regions. Findings can help them achieve their goal of transitioning to a more sustainable
local economy. Specifically, the responses show that there is a potential for action in this
field to improve the influence on the entrepreneurial intention in the teaching and
learning process. ( Martínez-González, Kobylinska, García-Rodríguez, & Nazarko, 2019)

 Rahman, Samuel, Uddin & Rahaman (2017) identified the best methods of arousing the
entrepreneurial mindset in students for entrepreneurship build up. Attempts are made at
reviewing the studies by various scholars in the field of entrepreneurship and
entrepreneurship education since the significance of entrepreneurship in improving
human existence in terms of poverty reduction, generation of employment, wealth
 formation and economic vigor has bestowed global recognition on entrepreneurs and
entrepreneurship. Despite the fact that various methods (computer simulation of business
games, role play, business plan development, personal and group projects, visitation to
entrepreneurs, new business creation, workshops, group discussions, case study, etc.)
have been put forward by various experts as means of creating entrepreneurial mindsets
in students, it was found that no one method can be adopted on its own and that they have
to be used jointly to ensure effectiveness based on the needs of the students, the
knowledge base of the teacher, the content of the course to be taught and the environment
in which learning is to take place. (Rahman, Samuel, Uddin, & Rahaman, 2017)

 Ajay (2008) has studied the determinants of street entrepreneurial success. Street
entrepreneurship is one of the rapidly growing areas in the present business world.
Understanding the factors affecting this business is important for the business people.
This study has revealed many facts concerning the socio-economic and motivational
factors affecting street entrepreneurship. Among many socio-economic and motivational
factors, size of initial investment, number of workers, family business and promising
demand of product/services are some of the major determinants of street entrepreneurial
success (Ajay, 2008).

This study which has been carried out based on the primary data collected from the
entrepreneurs doing business on the street of Vastraur, Ahmedabad, India, also has found
out some socio-economic and motivational factors having significant effects and some
not having significant effects on the profit from the street business. For example,
although the majority of the literatures tell that education has positive effect on the
earning from business, here in this study, even though it has significant positive
correlation with profit from business and also has a positive regression coefficient. It
might be because the street business is a small business for which simple calculation to
keep income, expenditure and profit is enough. In this kind of business, primary level
education also can be sufficient enough. Hence higher education level might not have any
such significant difference on profit. This study also has found that number of workers
have significant positive effect on the profit from street business. Obviously, in every
 business, up to a point of optimal level of return, every additional worker is expected to
contribute some more extra benefit or profit otherwise as the basic philosophy of the
business there is no point in adding extra workers. The study has also found that the size
of the investment in the business has also positive effect on profit. It is obvious that like
number of workers, until the investment in the business reaches to the point of optimal
level of return, every additional rupee investment in the business is also expected to
contribute an extra rupee on the income or profit. Among many motivational factors as
found in the literature to have effect on income or profit from business, only one factor
such as promising demand of the products or services have been found to have significant
effect on profit in street business. It also might be because it is a very small scale business
mostly doing for livelihood. Apart from several other ways of earning money for
livelihood, basically as per the concept of business as well, entrepreneurs obviously start
the kind of business which has a promising demand in the market (Ajay, 2008).

 Ndou, Secundo, Schiuma & Passiante (2018) aimed to open the black box of how, when,
why and what entrepreneurial mindset and competencies in the field of technology
entrepreneurship are learned over time in the Entrepreneurship Centers. This analysis
provides the basis to introduce a process-based framework for entrepreneurial mindset
creation in Entrepreneurship Education (EE) organized around four main phases:
inspiration, engagement, exploitation and sustainment. This is a holistic framework of EE
that is anchored at the intersection between the technology entrepreneurship and the
entrepreneurship education stream of research and is coherent with the need to connect
the macro-level (political policy) with the micro-level (student competencies need) by
focusing on the meso-level (university/center education). The originality of the paper
stands on the ―process-based‖ framework proposed that serves as an interactive pathway
that dynamically combines the phases toward entrepreneurial venture creation, the
entrepreneurial competence level, the entrepreneurial learning strategies and
collaboration with the University‘s stakeholders‘ network toward the achievement of the
competence goal. (Ndou, Secundo, Schiuma, & Passiante, 2018)
  Hoque (2018) attempted to establish the impact of higher education on the
entrepreneurial intentions. The findings revealed a positive relationship between social
factors while no relation existed between entrepreneurial intentions and current education
and university life. Higher educational institutions should integrate the positive change of
mindset and skills about entrepreneurship in academic education and university life to
nurture students‘ entrepreneurial intentions. This can be achieved by the development of
an entrepreneurial culture amongst academic and support staff in conjunction with
student clubs. Given the significance of entrepreneurship, it is desirable to transform the
educational system to encourage creativity and innovation in students. It examined the
impact of education and other external factors that contribute to shaping students‘
intentions. The analyses discovered that primarily social external factors have a positive
influence more than education and university life. However, these social external
influences are based on students‘ perceptions not on the actual reality of business
education. The implication is that students should be nurtured to make sustainable
decisions (Hoque, 2018).

2.2.1 Entrepreneurship Education and Entrepreneurial Mindset

Entrepreneurship Education has mainly been a priority for business schools. Recently it has
emerged as a relevant aspect to be created at all levels of education and for different disciplines.
Specifically, in the wake of the rapid development of new technologies, an expansion of EE to
other disciplines and departments are seen (e.g., science and technology) as crucial for
developing skills, competencies and mindsets that are required for launching and developing
high-growth, technology-based businesses (Boocock, Frank, & Warren, 2009). Fayolle and
Gailly suggest that a framework for entrepreneurship education should be based on the following
variables: objectives, audiences, content, assessment and pedagogies. These dimensions enable
the identification of the most relevant aspects that entrepreneurship centers need to focus on in
order to deliver EE (Fayolle & Gailly, 2008).

Lack of education restricts youth access to opportunities, limits their abilities to negotiate the
bureaucracies of finance and government, and often prevents them from effectively voicing their
opinion (Bushell, 2008). Saleem (2018) concluded the research regarding why majority of
graduate students intend to engage in job rather to start their own business. It explored universit y
students‘ entrepreneurial mindset and their intentions for starting a new business by investigating
the deterring factors which restrict them to go towards self-employment. This study fulfills the
need to identify the factors which play a significant role in influencing the students‘
entrepreneurial mindset. This research selected different factors in the context of the Italian
university students. This study suggests that the universities should focus their attention on
attracting students towards entrepreneurial education as students who attended entrepreneurial
courses and trainings showed significantly higher entrepreneurial intentions. Therefore,
universities are recommended to expand the number of entrepreneurship courses and trainings as
well as provide the opportunity to take entrepreneurial course and training to the students from
all the faculties and departments of this university. Furthermore, improving the image of
entrepreneurship as a plausible career option could affect students‘ intentions towards
entrepreneurship. The universities should promote entrepreneurship through entrepreneur and
business role models to draw a positive image of entrepreneurship in the campus and to motivate
students to pursue their projects. It is important to facilitate interaction between experienced
entrepreneurs and the students (Saleem, 2018).

He investigated the relationship that exists between offering entrepreneurship education course
and students intention to become entrepreneurs in selected universities in north east Nigeria.
From the results of this study, it can be concluded that descriptively, the students agreed the
exposure to entrepreneurship education course lead to the development of entrepreneurial
intention by the students and students may make decision in favor of starting their own
businesses before or after graduation. Also it is indicated that there exist positive relationships
between offering entrepreneurship education course and students intention to become
entrepreneurs. Attitude toward entrepreneurship, subjective norms and perception of behavioral
control were found to be predictors of entrepreneurial intention. The results from this research
work supported some previous research works. That means there is significant positive
relationship between attitude towards entrepreneurship and entrepreneurial intention of the
students.
2.2.2 Demographic Factors and Entrepreneurship Mindset

Those people who resided within entrepreneurially oriented environment, more likely to take
part in entrepreneurial activities in their career. Role model plays an importance role because
they function as carriers of value, emotions and experiences towards self-employment. The study
revealed that the children of self-employed parents are more likely to continue in entrepreneurial
career than those who does not have their parents in self-employment. Thus, those young people
whose, parents own their own business ventures may influenced entrepreneurial attitudes for
young people who live together in the same environment (Nieman & Nieuwenhuizen, 2009). The
theory of planned behavior suggested three conceptually independent antecedents of
entrepreneurial intention. Less studied are the demographic variables that also impact intention
formation process. Through the model seven demographic variables (gender, age, prior
employment experience, parental occupation, parental education, income bracket and family
business background) are studied. The results showed that age, income, parental occupation, and
graduation background is positively influencing entrepreneurial intention. Family business
background is strongly influencing entrepreneurial intention. Gender is not influencing
entrepreneurial intention at all. The final model will not have a path leading from gender to
entrepreneurial intention (Singh, 2014).

Mohammad (2016) examined the relationship of four critical demographic factors, namely,
Father‘s occupation, Gender, Experience and Level of education on the entrepreneurial intention
of Omani university students. Among the demographic factors experience was found to have the
maximum influence on the entrepreneurial interest. The results suggested a need to provide
students with on job training for gaining experience along with their educational programs. As an
increase in experience will lead to a higher entrepreneurial intention of students and thus the
likelihood of a student becoming an entrepreneur will increase. Furthermore, universities and
government should promote entrepreneurship training programs taking into account the Father‘s
occupation, Gender, Experience and Education Levels of students. The findings of this study
have implications for Governments, Policy Makers and universities. In order to promote
entrepreneurship in students should be made aware of the various existing support and financing
schemes for entrepreneurs being provided by the government. Secondly, demographic factors are
found to have a major influence on the Entrepreneurial Intentions (EI). Therefore, there should
be focus on ways to expose students to real life industry situations so that they may gain
experience. Entrepreneurship can be promoted by focusing on methods to raise the EI among the
university students such as introducing entrepreneurship course and making on job training a part
of the course curriculum. This gives students a chance to get hands on experience and help in
familiarizing them towards entrepreneurship (Mohammad, 2016).

Also it is necessary to analyzed the gender-related differences and family background influences
in the context of the choice of starting a business. The results of our study confirm that men have
higher entrepreneurial intentions and consider that monetary rewards are very important. From
the women point of view, more important is the sense of their lives. Our study shows also that
family background influence entrepreneurial intentions. This study studied the two fields i.e.
Importance of genre on intention to start new business and the importance of family background
on intention to start new business (Sasub, 2015). Regarding the importance of family background
the paper concluded that;

 Those respondents whose parents hold or have held a business are more likely to start a
business than those respondents whose parents have not a business;
 The main reason for starting a business was "to be more independent‖ , but with a slice
higher value for those respondents whose parents have held or currently hold a business;
 There is not a difference in defining a business no matter is family background.

2.2.3 Government Support and Entrepreneurship Mindset

There are different entrepreneurship phases in studying the impact of some government policies
on entrepreneurial activities. The researcher seeks to examine some policy factors that enhance
entrepreneurial activities in two of African‘s emerging economies. And precisely, to identify the
most favorable government policy in each entrepreneurship phase. The results showed that some
variations exist in the policy implementation approaches of different economies. The efficacies
and shortcomings associated with the policies impacted entrepreneurial activities. The findings
showed that the impact of government policies on entrepreneurship phases differ in both
countries. The study concluded that some policies are more favorable than others in some phases
(Adejumo, 2018).
The importance of entrepreneurship for the improvement of economic health of the country is
undeniable. Hence, every government of the world, including Nepalese government, was
formulating entrepreneurship development programs and policies that promote entrepreneurial
ventures in different sectors. A supportive business environment where government business
policies are investment friendly, business regulatory mechanism is efficient, legal parameters are
relaxed, bureaucratic system is viable and efficient, business advice, counseling, mentoring,
widely available incubators, widely accessible financing system, vocational training and good
infrastructure, the emergence of entrepreneurship is likely to occur. (Gwija, C. Eresia-Eke, & C.
G. Iwu, 2014)

The development and success of enterprises greatly depends on the support provided by the
government. Government may create an attractive and easy climate for operations of private
subjects, while on the other side, it may also be a great limiting factor in foundation and
development of enterprises. Government should invested more efforts in creating a more
adequate business climate through provision of better support to enterprises, so that
entrepreneurship may better contribute to the overall economic development. It was evident that
there should be concrete institutional or legislative reforms aimed at systematic solution for
creating the stimulating environment needed for entrepreneurship development. (Babajic, 2016)

The research of Jeon (2018) was limited to the general effects of government support; this opens
ways for studies on specific government policies such as taxes and specific government support
for entrepreneurship. It asserted that strategy creators benefit from understanding that
administration activities will influence business development just by being seen in a way that
impacts mentality or intentions. Government authorities, legislators and financiers should
likewise observe entrepreneurial action as desirable and achievable. At long last, this ought to all
be finished with an eye toward empowering individuals and new organizations. (Jeon, 2018)

Olugu (2014) examined the role government policy that plays in the development of
entrepreneurship and its impact on economic development. It can be seen that government of
several countries view entrepreneurship as the bedrock of industrialization of their economy and
thus encourage entrepreneurship. However, it is argued that policy makers had better
discontinued subsidizing the establishment of the generic start-up; instead consideration should
be on businesses with growth potential. His argument relates to how these policies direct people
to commence marginal companies that are likely to be unsuccessful or have slight economic
effect as well as making small employment. Nonetheless, entrepreneurial success of any nation is
largely dependent on the policy behavior of the government. Since most governments especially
in the developing countries are striving to achieve economic development, they are always
bringing out supportive policy programmes in different forms, e.g. infrastructural, financial, and
fiscal among others. This study offered several contributions to the literature in the field of
entrepreneurship and strategic management. To start with, it improved an understanding of the
role or importance of government policy to entrepreneurship development. Secondly, this study
confirmed the importance of government policies to business performance. The importance of
government policy towards entrepreneurship cannot be overemphasized since it in turn shapes
the institutional environment in which entrepreneurial decisions are made (Olugu, 2014).

2.2.4 Financial Access and Entrepreneurial Mindset

From the literature about the effects of financial constraint on entrepreneurship, it becomes
evident that there is a connection between financial access and entrepreneurship levels. Evans
and Jovanovic (1989) developed the hypotheses that a financial constraint is an important
obstacle to entrepreneurship. Their conclusions, based on the studies they performed showed that
wealthy people are more likely to enter into self-employment (Evan, 1989). Gentry (2004) found
that entrepreneurs tend to be significantly wealthier than those who work in paid employment.
Their study showed that even though entrepreneurs are nine percent of households in the US they
have 38 percent of household assets. This led to the conclusion that entrepreneurs are not only
wealthier, but that the wealthy are more likely to become entrepreneurs (Gentry, 2004). Their
findings were consistent with the former research and showed that people who received gifts and
inheritances were more likely to run their own business. On this ground, they drew the
assumption that if the government wants to increase entrepreneurship levels, they should be
granting more money to the potential entrepreneurs that are largely held back by lack of capital.
(Blanchflower D. a., 1990)

Engelschion (2014) used Liñán and Chens entrepreneurial intention model, which is based on the
theory of planned behavior. In this study their entrepreneurial intention model is used to measure
how perceived access to finance affects the entrepreneurial intentions among Norwegian
students. The sample was from a web-based survey and consisted of 162 respondents. The results
revealed a positive effect from perceived access to finance on entrepreneurial intentions. When
the theory of planned behavior is applied to the results, there is an indication that financial
constraints are an obstacle for business start-ups, especially for young people, as youth have less
assets and savings available. This does have implications for policy making as it suggests that
there is a need for governmental funding directed towards youth to increase entrepreneurship
rates. Research performed on the subject has shown that access to finance is a crucial
determinant for entrepreneurship, which leads to the conclusion that increased access to finance
would increase entrepreneurship levels in Norway. This implies that increased access to finance
would be an effective tool for influencing the entrepreneurship levels. Directing these policies
towards young people have an important effect because the theory suggests that young people
are more restrained by financial barriers than others. When directing these policies towards
youth, microfinance ideas are enhanced as a possible strategy. This gives broadened
understanding about an indication of how to introduce microfinance and what policies to pursue.

To know more about the issue of how financial access promotes entrepreneurial intentions it
could be fruitful to see how the changes over time emerge. It also enlightened the link between
intentions and action. It could be interesting to look closer at other groups that normally are left
out of the banking system, such as immigrants, women and convicted criminals. The study also
shows further other possible barriers to entrepreneurship and their impact on entrepreneurial
levels. It could also be fruitful to look at how access to finance affects the entrepreneurial
intentions among young and among older, to see if there is an age difference. The former
research suggests that financial constraints may be more evident for young people and more
studies on this field can further confirm the idea that it would be more efficient to direct finance
policies towards young people (Engelschiøn, 2014).

2.2.5 Motivational Factors and Entrepreneurial Mindset

Solesvik (2013) tried to explore the difference in entrepreneurial intentions, perceived

entrepreneurial motivation, and cognitive profiles (attitudes towards entrepreneurship, perceived
behavior control, and subjective norms) between individuals who have participated in enterprise
education programmes in the universities and those who have not. The paper also investigates
the mediating role of attitudes towards entrepreneurship, perceived behavior control, and
subjective norms related to entrepreneurial motivation and the forming of entrepreneurial
intentions. The findings showed that people who had been participated in enterprise programmes
had higher motivation to start their own ventures. It was stated that entrepreneurial motivation is
a link between an intention and action. The evidence presented suggests that enterprise modules
have a role in reducing attitudinal barriers to enterprise, increasing entrepreneurial motivation
and in the accumulation of skills required for careers in entrepreneurship. (Solesvik, 2013)

Entrepreneurial role models, social valuation of entrepreneurship, perceived knowledge of

entrepreneurial support and barriers to starting a business, entrepreneurial intention and its
determinants are related to entrepreneurial motivation. The study integrated the theory of
planned behavior with environmental factors to determine the factors influencing entrepreneurial
motivation among final year rural university students in the Limpopo province, South Africa.
The findings indicated that entrepreneurial motivation has a significant correlation with
entrepreneurial intention and its three determinants, social valuation of entrepreneurship, having
entrepreneurial role models, knowledge of entrepreneurial support and perceived barriers to
starting a business. The respondents were motivated by both intrinsic and extrinsic rewards and
the need for independence. The results revealed that entrepreneurial intention, the attitude
towards becoming an entrepreneur, subjective norms, social valuation of entrepreneurship,
knowledge of entrepreneurial role models and entrepreneurial support have a significant
influence on entrepreneurial motivation (Malebana, 2014). This research identified the different
factors and focuses on the role of these factors in determining the motivation to start a business.
These factors were Perceived Behavioral Control, Subjective Norms, Entrepreneurial Role
Models, Social valuation of Entrepreneurs, Knowledge of Entrepreneurial Support, Perceived
barriers to establish a business and Attitude towards becoming an Entrepreneur.

Bandura (1986) viewed perceived self-efficacy being overlapped by the perceived behavioral
control; perceived self-efficacy is an individual‘s perceived ability to complete a particular
behavior successfully. Empirically self-efficacy has been linked to entrepreneurial phenomenon.
Also, feasibility perceptions provide guidance through the various career choices available, as
entrepreneurship being one of the career choices. Therefore feasibility perceptions provide goal-
directed behavior. (Bandura, 1986)

Phillip (2002) had studied on entrepreneurial success that focus on the process of resource
acquisition and value creation have led to a deeper understanding of the resource requirement of
entrepreneurs, but have shed less light on antecedents to the propensity for entrepreneurial
startups. These are background and experience, beliefs about organization and attitudes towards
entrepreneurship. Background and attitude are hypothesized to predict the propensity for
entrepreneurial startups while belief was hypothesized to moderate the relationship between
attitude and propensity to start a new business. The study findings hold clear implication for
policy prescriptions. Firstly they suggested that introducing students to entrepreneurship at an
early stage can be beneficial as they develop positive attitude towards starting new business. In
addition the content of entrepreneurship courses should focus on practices rather than theory, in
order for students to experience rather than simply learn about entrepreneurship. Finally, evoking
interest at an early stage may also reduce the tendency for attenuation of interest that may come
with more years of formal education (Phillip, 2002).

A number of promising future research directions was identified from the research reported in
this paper. Firstly, while the empirical data from Singapore broadly confirmed the research
model on antecedents to entrepreneurship, it would be interesting to explore if similar findings
hold for other socio economic environments and cultural settings. For Example, the significant
negative effect of opportunity cost of human capital in the study could be due to the sizeable
presence of large multinational enterprises in Singapore, leading to abundant supply of high
paying jobs and career options. Its negative influenced on entrepreneurial propensity may be less
pronounced in countries where unemployment rates among university graduates are higher.
Application of the research model to the different countries may thus provide cross-cultural
insights on how national environment shapes the antecedents to entrepreneurship. Secondly,
while this papers empirical focus on university students in technical fields is particularly relevant
to policy makers interested in technology-based startups by technically trained professionals, it
may be useful to extend the empirical research to university students in non-technical fields as
well (Phillip, 2002).
The concept of need for achievement can be defined that individuals who are high need for
achievement are more likely to engage in activities or tasks, require more individual skills and
efforts than those who are low need for achievement (Robinson, 1991). Thus, within the research
domain of personality traits and entrepreneurship, the concept of need for achievement has
received much attention. McClelland (1965) argued that it is likely that people high in need for
achievement will be more likely to pursue entrepreneurial jobs than other types of roles.
(McClelland, 1965) Many researchers have observed that the entrepreneurial role necessitates
independence. Firstly, the entrepreneur undertook the responsibility self for pursuing an
opportunity, and secondly, individuals may pursue entrepreneurial career because 28 they desire
independence. In addition, there was some existing empirical evidence which suggests that
entrepreneurs may be higher in independence than other individuals (Shane S. E., 2003)
2.3 Conceptual Framework

The conceptual framework represents the connection between variables in the study and shows
the relationship graphically. It is a hypothesized representation identifying the concepts under the
study and their relationship.

Independent Variable Dependent Variable

Entrepreneurial Education

Demographic Factors

Entrepreneurial
Government Support
Mindset

Financial Access

Motivational Factors

Figure 2. 1 Conceptual Framework

In this framework Entrepreneurial mindset is taken as dependent variable and Entrepreneurial

education, Financial availability, Motivational Factors, Government Support and Demographic
factors (Age, Gender, Education level, Family Background) are taken as independent variable.
2.3.1 Entrepreneurial Education

Entrepreneurship education in this research means the knowledge or education that the Nepalese
business students are getting in their college courses. Mostly the research means the education on
entrepreneurship taught by business schools of Nepal. The theoretical framework portrays that
the students having good entrepreneurial knowledge and exposure will have positive impact in
entrepreneurial intention. Students who had undergone entrepreneurship education tend to have
better entrepreneurial intention than those who had not taken entrepreneurship course.
Entrepreneurship education may be expressed as the enhancement of behavior, attitudes and
capacities of persons/entities and according to (Fayolle A. , 2009) all of the several efforts at
boosting entrepreneurial attitudes, skills and mind-sets for the purpose of addressing issues like
creativity, innovation, business start-up and generation of ideas culminate in entrepreneurship
education. The fundamental outcomes of entrepreneurship education comprise of generating the
environment for responsiveness, information and understanding about the concept and practice
of entrepreneurship, to cultivate personal entrepreneurial skills, manners and attitudes, to create
personal assurance and capability, to have understanding of an entrepreneurial means of living,
to entrench entrepreneurial philosophies, to stimulate students toward entrepreneurial livelihood,
to understand business innovation processes, to appreciate broad entrepreneurial competencies,
to develop important technical business know-how, to encourage personal relationship and
networking skills, to brace-up for self-employment, to have a mind-set for new ventures, and to
exploit institutionally-owned IP (Hannon, 2006).

2.3.2 Demographic Factors

Demographic factors in entrepreneurship means different typical factors related to family

backgrounds and career. They can be

 Gender
 Family Income
 Family Business Experience
Those people who reside within entrepreneurially oriented environment, more likely to take part
in entrepreneurial activities in their career. Role model plays an importance role because they
function as carriers of value, emotions and experiences towards self-employment. Having
entrepreneurial parents as role models has become one of the significant factors to cultivate their
children to venture creation. The younger family members are influenced by their role model to
become entrepreneurs (Harry Matlay, Tarling, Jones, & Murphy, 2016). Three sources can lead
to entrepreneurial intention of business creation among individuals providing by family. First, a
source of prior family business experience (Carr & Sequeira, 2007). It will positively or
negatively shape the attitudes and behaviors of children towards the ownership of a business.
Second, a source of information (Raijman, 2001) in which the researchers also point out that the
close family members with business history probably share and provide useful and relevant
information to other family members in order to give them some advices and supports in
business formation. Third, financial resources (Akanbi, 2013) in which they believed that there is
a direct relationship between family entrepreneurial intention and financial resources. The family
members 41 provide financial support as a foundation for a new business creation.

2.3.3 Government Support

Government support in this research means supportive government policy, laws, rules, regulation
that support new business and emerging entrepreneurs. The theoretical framework portrays that
the favorable government policy and system will have positive impact on entrepreneurial
intention of students. Nations that support emerging business and provide facilities to start-ups
tend to have better entrepreneurial intention than that one that doesn‘t provide such facilities.
Nepalese government has focused on youth entrepreneurship considering its importance to
transform the country‘s ailing economy, alleviate poverty and resolve deeply rooted
unemployment problems, as it introduced National Youth Policy to aid entrepreneurship
development in the country. This policy was introduced to respond to number of challenges that
young people face in the country such as unemployment, migration, empowerment, crimes.
Other government programs that lunched in attempting to address youth challenges in the
country includes small enterprise self-employment fund, youth partnership program, micro
enterprise development program.
2.3.4 Financial Availability

Financial availability in entrepreneurship means different typical sources of financing for start-
ups. They can be

 Personal Investment
 Love Money
 Venture Capital
 Angels
 Business Incubators
 Strategic Partners
 Government grants and subsidies
 Bank Loans etc.

It is crucial to have start-up capital, additional working capital or access to it, to expand and
remain competitive, especially for the emergence of entrepreneurship development. However, in
Nepal, financial institutions have been reluctant to approve loan for business development, and
required a performance history of at least five years before they would even consider. As a
solution to their financial issues, government micro credit as well as private micro finance
programs such as Grameen Bikas Bank, Nirdhan Uthan Bank and center for self-help
development have been providing assistance for those young people who really want to pursue
their career in entrepreneurship (Bushell B. , 2008). Venture Capital (VC) and Business Angel
(BA) financing have traditionally being advocated as important sources of financing for young
innovative firms that find it difficult to access bank or debt finance. Financing and financial
availability is a major component for entrepreneurs to launch their new ventures. The theoretical
framework portrays that the greater the financial availability for start-ups the positive will be
entrepreneurial intention.

2.3.5 Motivational Factors

An entrepreneurial motivation is the process of transforming an ordinary individual to a powerful

businessman, who can create opportunities and helps in maximizing wealth and economic
development. It includes Perceived behavioral control, Subjective norms, Entrepreneurial role
models, Social valuation of Entrepreneurs, Knowledge of Entrepreneurial Support, Perceived
barriers to establish a business, Attitude towards becoming an entrepreneur etc. High need for
achievement is one of the important motivational factors, which can motivate an entrepreneur to
start-up and advance in his entrepreneurial venture. This need for achievement leads an
entrepreneur to accomplish his personal goals, teach how to use the available resources optimally
and explore the creativity and innovativeness to produce better products and services for the
market. (Pillania, 2009). Another motivational trait that has received attention is locus of
control—the belief in the extent to which individuals believe that their actions or personal
characteristics affect outcomes. Individuals who have an external locus of control believe that the
outcome of an extent is out of their control, whereas individuals with an internal locus of control
believe that their personal actions directly affect the outcome of an event (Rotter, 1996).

2.3.6 Entrepreneurial Mindset

Entrepreneurial mindset is ―being an entrepreneur is a state of mind. It is about analyzing the

world and what is happening in terms of opportunities and possibilities, trying to understand how
an individual intervention can enter the economic and social system in terms of construction and
progress and then it‘s about putting into practice objectives and translating ideas into action.‖
(Ferrero & Fioro, 2014) Furthermore, an entrepreneurial mindset is defined as a growth oriented
perspective through which individuals promote flexibility, creativity, continuous innovation and
renewal‖. There is now a movement from the special individual nature based on learning
processes to development of the cognitive tendencies of the human mind (Ireland, Hitt, &
Sirmon, 2003). Establishing an entrepreneurial mindset is paramount to nourishing the
competitiveness of economic entities and the socioeconomic lifestyle of the populace through
value and job formation. This importance is revealed in the sense that it affords supporters of
new ventures to establish entities with innovative and valuable ideas, which are premised in an
inspiring and empowering culture (Thompson, 2004).