ENTREPRENEURIAL ORIENTATION AND FAMILY BACKGROUND: A CORRELATION ANALYSIS
Dr. PURNA PRABHAKAR NANDAMURI (Corresponding Author) Assistant Professor, Department of Marketing & Strategy, IBS, IFHE University, Hyderabad, Andhra Pradesh, INDIA. Mobile: +919440661551 E mails:
[email protected];
[email protected].
&
Mrs.Ch. GOWTHAMI Assistant Professor, ITM Business School, Hunter Road,WARANGAL -506001, Andhra Pradesh, INDIA. Mobile: +919849789131 E mail:
[email protected]
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ENTREPRENEURIAL ORIENTATION AND FAMILY BACKGROUND: A CORRELATION ANALYSIS
ABSTRACT Entrepreneurial orientation is the individual’s inclination to start new venture. In addition to an array of external factors, some socio-demographic characteristics such as family background, education, age, and sex influence the entrepreneurial activity. In terms of individual approach, demographic variables have an important role in being entrepreneurial. It is pertinent to analyse the entrepreneurial orientation of educated youth of India where the policy makers are looking upon the under-25 population as the future pool of entrepreneurs and employment originators. The present study aims at identifying the correlation between family background and entrepreneurial orientation of management students. A sample of 200 final year post-graduate management students are selected randomly from leading management institutes in Warangal region of the state of Andhra Pradesh. The responses collected through questionnaire were initially subjected to component reduction and the resultant 11 factors representing the critical dimensions of entrepreneurial orientation were tested for correlation with family occupation of the respondents. All the eleven factors yield significant correlation with family background. While one factor – persistence, yielded a perfect positive correlation, others exhibited inverse correlation. The inverse nature of the correlation establish that the intensity of these factors tend to decrease while the occupational differences increase and vice versa.
KEYWORDS Correlation, Entrepreneurial orientation, Entrepreneurship, Family background, Management students,
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INTRODUCTION The current century is the vehicle for change and innovation through entrepreneurship. The tempo and advancement of an economic system largely depends on the emergence of new generation entrepreneurs. Entrepreneurship fits to be a feasible means of economic development for a populous country like India. A survey of Mckinsey and NASCOM estimates that 110 to 130 million Indians will be searching for jobs by 2015 (Popli, 2010). Policymakers and academics around the globe agree that the role and pace of entrepreneurship is significant for the development of society. Hence, fostering entrepreneurial awareness and positive attitudes towards entrepreneurship are high on the policy agenda of several economies (OECD, 2010). At the same time what one understands entrepreneurship to be is not always viewed equally and this hinders making fact-based policy (GEM, 2011). The idea is that, for individuals, embryonic attitudes and perceptions about entrepreneurship affects those planning to venture into. Hence, it is the obligation on the prevailing education system, apart from the other institutions existing, to charge the graduating youth with entrepreneurial orientation. However, entrepreneurship depends on an array of external factors like socio-cultural traditions, supporting financial institutions and certain latent socio-demographic factors also are equally responsible. As per the Global Entrepreneurship Monitor-2002 report, around 12% of adult population was involved in entrepreneurial activities among 37 countries representing 62% of the world population. While less than 3% of adults were involved in entrepreneurial endeavors in Japan, Russia and Belgium, more than 18% were so engaged in India and Thailand. Thus the level of entrepreneurial activity was observed to be the highest in the developing Asian countries. The salience of entrepreneurship in India has been intensifying in recent times. The percentage of entrepreneurial activity in India was 17.9%, as compared
to
United
States-10.5%;
UK-5.4%;
and
Japan-1.8%
(GEM,
2002).
Entrepreneurship has been a part of Indian culture since long. Further, there is also a rich tradition within the Indian diaspora, spanning the past several hundred years, whose spirit of enterprise is legion. To quote the renowned economist, T.N. Srinivasan, ‘India has been an entrepreneurial society…we had the entrepreneurial skill but suppressed it for too long a time… and now it is thriving’ (Gopalakrishnan, 2004). In a recent survey by the Deloitte group, India ranks 2nd globally as home to the fastest growing technology firms. In a survey conducted by the National Knowledge Commission, of the 95% who valued education as a foundation for entrepreneurship, 53% consider education a key trigger to evoke entrepreneurial orientation (NKC, 2008).
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Entrepreneurial orientation is the individual’s inclination to take on pioneering, proactive and risk taking behavior to start new venture. Entrepreneurial orientation refers to the processes, practices, and decision-making activities that lead to new entry (Lumpkin & Dess, 1996). An emergent body of research seeks to spot out fundamental factors that motivate individuals towards entrepreneurial activity. Some of these factors relate to specific individual differences in family background, education, age, sex, or personal attributes (Shao et al, 2005). Entrepreneurs mainly depend on potential for entrepreneurship that requires potential entrepreneurs (Krueger & Braseal, 1994). The entrepreneurial potential of potential entrepreneurs has emerged as a frontline national agenda item and succeeded to attract the interest of policy makers, educationists and development agencies all over the world (Sobel & King, 2008). In an empirical study on linking entrepreneurial attitudes and activities for European regions using GEM data, Bosma and Schutjens (2009; 2011) found a weak positive association between regional variations in entrepreneurial attitudes on one hand and in entrepreneurial activity on the other. This supports the notion that there is much in between attitudes and activities and that a mixture of individual, social and contextual factors impact on the individual decision making process when it comes to venturing into entrepreneurial activity. It is not only the skills but also some other factors like family background, personal characteristics, entrepreneurial support, social recognition, and risk-taking capability that matter in nurturing a successful entrepreneur. Factors affecting entrepreneurship can be grouped under four main headings; demographic factors, social factors, psychological factors and factors outside of them. The contents of demographic/personal factors are age, marital status, gender, income level and education. Social factors can be considered as culture and society, family and religious values (Stephen, 1998). Previous research shows that entrepreneurs have the ability to act quickly during the emergence of new opportunities, and that there is an important relationship between the capabilities of the entrepreneur and the activities (Hardy, 1999). In many studies, personal characteristics, family structure and the motivation of an entrepreneur were examined and accordingly concluded that in addition to the education level of entrepreneurs, their personality traits are considered to be an important variable. In terms of individual approach, demographic variables have an important role in being entrepreneurial. In addition, many factors such as age, marital status, socio-economic status, individual background and family income affect being entrepreneurial (Coulter, 2001). However, from the review of the earlier researches, it can be concluded that entrepreneurial characteristics are not universal. There is no precise regulation or a set of traits independent across situations to guide the entrepreneur
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to success. Psychological characteristics like ability to take risk and desire to be successful stand against common apprehensions & leadership skills are strongly associated with entrepreneurial success. Socio- Economic features like caste, parental background, technical and professional education, financial backup, location advantage and easy access to market are also found to have strong correlation with entrepreneurial success (Azhar, 1999). FAMILY BACKGROUND One variable that has received considerable attention in the literature is prior exposure to a family business. Family has been recognized as the most important institution that enhances students’ awareness about entrepreneurship. Moreover, growing in a family where one of the relatives and particularly parents run their own business not only provides an inspiring and supportive environment for entrepreneurship but also serves as an opportunity to learn and experience the challenges of business. Involvement of family in entrepreneurship creates a profound opportunity for understanding how entrepreneurial qualities and perceptions develop among the offspring (Chrisman et al, 2003). Family background and parental role-modeling has been found to be the most prominent factor that affects early socialization and hence formation of attitude towards entrepreneurship (Matthews & Moser, 1995). Entrepreneur whose father is self employed provides strong inspiration for him because at an early age, the independent nature of self employed is deep rooted by his father (Matthews & Moser, 1996). Various studies described that that it is not easy to set up a business for the first generation entrepreneurs, but majority of the entrepreneurs set up their business if they already have a family background of business and mostly capital for startup is provided by family and friends (Lee & Tsang, 2001). Similarly according to Kolvereid (1996) entrepreneurs tend to have parents with entrepreneurial mind set .Thus entrepreneurs having entrepreneurial parents are more likely to behave entrepreneurially and to work with higher entrepreneurial orientation than other whose parents are job oriented and ultimately increase firm's entrepreneurial orientation. The successful entrepreneur builds up through family occupation. Informal relations plays very important role in this context especially from family member's side because those whose family members are business oriented their participation is high. Early communication received and imbibed by an individual from the family would impact career choices by inducing individuals to choose a career in which they are viewed positively by society. Research has found that entrepreneurs often come from homes where the mother or father was self-employed (Crant, 1996). Family with a business background often influence and motivate their siblings to involve in entrepreneurial activity and they are expected to possess
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higher propensity to launch a business in future (Van Auken et al., 2006). Family business background leads perhaps to lower barriers to entrepreneurial entry, since those having it may capitalize on their social ties and social capital (Greve & Saleff, 2003). Research has shown that family social capital, described as non-financial resources and support offered by family members to the entrepreneur affects positively the start-up decision (Chang et al, 2009). The family embeddedness perspective describes the impact and the importance of parents on the entrepreneurial career of their offspring (Aldrich & Cliff, 2003). Both the breadth and the quality of family business experience matter (Krueger, 1993). Experiences during early childhood and socialization at home and in school probably shape the attitudes of young people towards entrepreneurship (Basu & Virick, 2008). Parents act as initial role models and the parents active in a family business influence the future entrepreneurial intentions through changing attitudes and beliefs (Krueger et al, 2000). The literature on family background evidences a positive relationship between the presence of role models in the family and the emergence of entrepreneurs. The parental role models and/or exposure to self employment are considered to influence entrepreneurial attitudes and behaviour (Dyer & Handler, 1994). Previous research indicates that a family background in business results in higher intentions to start a business. Family members in business become symbol for entrepreneur and source of financial and non-financial help; similarly financial resources in the family have direct bearing on entrepreneurial intentions. Carr & Sequeira (2007) found that exposure to family business serves as an important intergenerational influence on intentions to become entrepreneur. Family characteristics have implication on emergence of new business, recognition of opportunity, start up decisions and resource mobilizations (Aldrich & Cliff, 2003). Similarly prior exposure to entrepreneurship both from the family side and personal have an impact on entrepreneurial intentions, those having their self employed father are more inclined towards entrepreneurship (Basu & Virick, 2008; Krueger, 1993). Shapero and Sokol (1982) argued that attitudes toward entrepreneurship depend on exogenous factors like demographics, traits, skills, culture, and social and financial support. Prior exposure to entrepreneurial activity would be included as one such factor. Prior exposure could be in the form of early exposure to a family business, which influences attitudes toward entrepreneurship (Krueger 1993). Drennan, Kennedy, and Renfrow (2005) found that those who reported a positive view of their family’s business experience perceived starting a business as both desirable and feasible. They found that other childhood experiences that involved facing adversity or frequent relocation also had a positive effect on individuals’ perceived autonomy and attitude toward self-employment. At the same time, it can be argued
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prior exposure in the form of direct experience in starting or attempting to start a new business would affect attitudes and perceptions about entrepreneurship as a career. In Singapore, Lee and Wong (2003a, b) found that those showing more interest during programs on entrepreneurship were more likely to engage in entrepreneurial activity. The desire to study in entrepreneurship programs was, in turn, found to be higher in people coming from families with business as major family occupation. Together, these suggest that family’s occupational background is likely to impact the preferences of individuals towards entrepreneurs and entrepreneurship. There are numerous theoretical and empirical studies that consider attributes such as risktaking, innovativeness, need for achievement and managerial competence as important enabling qualities for entrepreneurship. A closer look into such studies reveals that the issue of age and family background has received scant attention, especially as explanatory variables of the phenomenon of entrepreneurship. Advocates of demographic models have suggested and found empirical support for the hypothesis that family background is related to entrepreneurial intentions (Mathews & Moser, 1995). Extant research has shown that growing up in a family business environment provides people with family capital (social, human, and financial) that gives them a comparative advantage in starting a new venture (Chang et al., 2009). Furthermore the family business background shapes the attitudes and willingness of people to start new businesses. While similar issues have been investigated in several developed countries, research on family business and entrepreneurship is relatively scarce in small peripheral countries like Cyprus. In the Indian context, family background and entrepreneurship find mention in few studies. For instance, Gadgil (1959) and Singer (1972) found that the joint family provides undivided family property to invest in and expand the family firm. Sharma and Singh (1980) observe that capital formation and the confidence to administer business are essential for the development of industrial entrepreneurship and these are easily available with people who have a business or industrial background. Family occupation and inter-generational occupational mobility are addressed in a study by Khanka (1990) which shows that there is a high propensity for the members of the next generation to choose an occupation related to business and industry, if the first generation belonged to the same occupation. By superimposing age and family background one could locate a segment of entrepreneurs who have inherited a business legacy through familial links in terms of tangible and intangible assets, as well as the appropriate environment and expertise at a young age.
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Taking into account the influence of cultural and institutional factors on entrepreneurship and family business the extension of research to such countries is worthwhile. However, little research has been done to explore how the family background influences entrepreneurial orientation of the youth. The present study attempts to narrow down the gap by probing how family background influences the management students’ entrepreneurial orientation in Warangal region. REVIEW OF LITERATURE Research on entrepreneurship has continuously been using a few selective lenses and often used to ignore the family background dimension (Chrisman et al, 2003). Athanasios and Panikkos (2011) found a rather low, but statistically significant, correlation between a family business background and the intention to start a new business. Aykut and Belgin (2011) studied the link between entrepreneurial propensity and gender, family profession, and business education is studied and observed no significant difference on individual entrepreneurship. Athanasios and Panikkos (2011) found a low but statistically significant correlation between a family business background and the intention to start a new business in Cyprus. Ishfaq et al (2010) argue that family background and level of education matters while intending to become an entrepreneur. Basu and Virick. (2010) suggest that students with selfemployed fathers gain exposure to and tacit knowledge of entrepreneurship from an early age which in turn affects their attitudes and perceptions of self-efficacy toward entrepreneurship. The study revealed that individuals’ prior exposure to entrepreneurship in practice, both direct and indirect through their family background in business was significantly linked to their attitudes, norms and perceived behavioral control regarding entrepreneurship. More specifically, having a self-employed father is significantly related to the student’s positive attitudes, stronger norms, and greater self-efficacy with respect to entrepreneurship. Prior experience of starting a business or trying to start a business is significantly linked with a positive attitude toward entrepreneurship and a greater degree of self-efficacy. This implies that students who have had direct experience of starting their own business have a more favorable attitude toward an entrepreneurial career and are more confident in their own ability to repeat that behavior. An Australian study of undergraduate university students (Drennan et al. 2005) found that a family business background and a positive family background experience had a significant impact on the desirability to start a business. Wang and Wong (2004), Mathews and Moser (1996), and Moriano et al. (2007), have also found empirical support for the positive relationship of the family background with entrepreneurial intent. Phan et al. (2002) found that in Singapore and Australia, students were more likely to
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commence new ventures upon graduation if their parents are in businesses. Chan’s study (1996) on family-related matters found that not all the variables under the category of familyrelated matters are significantly affecting entrepreneurial orientation. The study further revealed that there were no significant differences in entrepreneurial orientation along family income, parents' education, and parents' occupation respectively. Krueger (1993) who stated that one can distinguish students from entrepreneurial families in terms of preference to business start up attitudes than those from non entrepreneurial families. The National Knowledge Commission (2008) found that, ‘family background’ was the prime motivating factor among the second generation, whether in the same family business (74%) or in a different one (34%), though the extent to which it serves as a motivation trigger varies significantly. Further, ‘family background’ was a more significant motivator for the second generation compared with the first generation. This may be because the second generation entrepreneur is more likely to be influenced by a family environment that extols Entrepreneurship. Goel et al. (2006) tested more than 5,000 respondents in India and China. The results for familial occupational background’s influence on attitudes found strong support in both India and China. For China, those from families with business as major occupation were more positive in their attitude on all items except for the need to become entrepreneur to make China prosperous. Indian results showed youth from business families to be more positive in attitude for all items than those from families with service as the major family occupation. The differences between the three occupational classes were significant at p = .05 or lower for seven of the nine statements. The hypothesis that family’s occupational background would influence attitudes towards entrepreneurs and entrepreneurship was supported both in China and India. Classification of responses on familial occupation basis suggested that youth from business familial occupation background preferred being an entrepreneur compared to a person from service background in both countries. Chinese from a business families rated entrepreneurship as the third most preferred career choice and those from service background preferred it at the fourth place. Indian youth from business families preferred entrepreneurship in the third spot and those from service background preferred entrepreneurship fifth in their career choice. The results for career preference supported the alternate hypothesis that family’s occupational background influences the attitude towards entrepreneurs and entrepreneurship in both India and China. Patnaik and Pradhan (2010) found high relationship between the occupational background and nature of units promoted in Orissa region. The study further shows that experience had more bearing than educational qualification on entrepreneurial intentions.
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OBJECTIVE The principle aim of this research is to identify the relationship between family background and entrepreneurial orientation of management students. HYPOTHESIS That the family background is a critical determinant of entrepreneurial orientation of management graduates. METHODOLOGY A sample of 200 final year post-graduate management students are selected randomly from leading management institutes in Warangal district of the state of Andhra Pradesh. The respondents were served with a questionnaire schedule consisting of 34 statements (refer Table-1) to be marked on a five-point scale denoting 5= Strongly agree; 4=Agree; 3=Unable to answer; 2=Disagree; and 1=Not at all. The statements are adopted from the EAO scale of Robinson et al. (1991) and customized for the present study. The responses collected on the Likert scale are subjected to Component Reduction through Factor Analysis and correlation test with the help of SPSS-19. RESULTS AND ANALYSIS Initial component reduction is done with Factor Analysis by Varimax rotation which resulted into a grouping of 11 factors representing the critical dimensions of entrepreneurial orientation with relevant components as presented in Table-1. Table-1: Factors and Constituent Components Resourcefulness: S18 I always try to be innovative and creative S20 I try to invent new product/service or improve existing one S2 I have specific goals in my life S21 I try to take-up problems that nobody has looked at yet S30 I can take control in unstructured situations S19 I spend some time every day on new ideas Foresight: S9 I am ready to face any risk related to my future tasks S12 I can anticipate the potential problems S11 I can forecast the implications of a particular situation S10 I will not be disturbed by the set-backs in my future tasks S13 I always think about future opportunities than past deeds Managerial: S27 I prefer to make my own decisions S28 I depend on my instinct & intuition while making decisions S7 I prefer to take risk in future life
Total
6
5
5
10
S14 I can calculate the financial needs of my business S26 I have confidence in my own skills and capabilities Knowing: S34 It is important to analyse own weaknesses in business dealings S33 I prefer to learn from mistakes to do it right next time. Initiative: S4 I want to build a business with good reputation S5 I like to attract good reputation for me from society S3 I prefer to create as many employment opportunities as I can Autonomous: S31 I would like to work for myself S32 I feel resentful when I get bossed around at work Persistence: S16 I work hard to make my organisation function better S6 I want to contribute to the well- being of the society S17 I am ready to sacrifice personal comfort for my growth Growth-orientation: S1 I should make a mark in my life. S24 I always look for good opportunities Self-confidence: S23 I feel depressed when I don't accomplish any meaningful work S25 I can manage business without guidance or advice from others Risk-taking: S8 I pursue my goals despite the obstacles S15 I always work hard to be one among the best in my field Focus: S22 I always look for personal growth and development S29 I should have good control over my life Source: Factor analysis output.
2
3
2
3
2
2
2
2
At the second stage, each factor with its constituent components is tested with correlation technique to understand the nature of relationship between family background and each factor of entrepreneurial orientation and analyze the impact of family specific differences on entrepreneurial orientation of management students. The factor-wise analysis is presented hereunder. Resourcefulness Entrepreneurial resourcefulness is the talent to recognize opportunities in the setting and direct behaviour to successfully deal with the mission of creating and managing an organization to pursue the opportunity (Kanungo & Misra, 1992). Resourcefulness comprises of three basic competencies-cognitive, affective and action-oriented. The components
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denoting the competencies of innovativeness (S18, S19, S20 and S21)), goal-orientation (S2) and controlling skills (S30) represent entrepreneurial resourcefulness. Each component is tested for correlation with gender of the respondents and the significant ‘r’ values are tabulated in Table-2 for analysis. Table-2: Correlation of Family background with Resourcefulness. Component r S2 I have specific goals in my life -0.778** S18 I always try to be innovative and creative -0.788** S19 I spend some time every day on new ideas -0.606** S20 I try to invent new product/service or improve existing one -0.806** S21 I try to take-up problems that nobody has looked at yet -0.708** S30 I can take control in unstructured situations -0.603** ** Correlation is significant at 0.01 level (2-tailed) The family background of the respondents is significantly correlated with the factor of resourcefulness at 0.01 level which means that it demonstrates a significant impact on entrepreneurial resourcefulness. All the six components representing goal-orientation (S2 = -0.778), innovativeness (S18 = -0.788; S19 = -0.606; S20 = -0.806; & S21 = -0.708) and controlling skill (S30 = -0.603) yielded more or less similar nature of correlation. The inverse nature of correlation can be interpreted that the family background specific differences tend to decrease as the necessity of resourcefulness increases. Foresight The prospective accomplishments are shaped by the expectations, understandings and hallucinations of the present. Hence foresight appears to be a crucial capability for entrepreneurs. This factor comprises of the aspects of anticipation of potential problems (S12); future readiness (S9); ability to deal with consequent implications (S11, S13); and undisturbed with hostility (S10) as presented in Table-3. Table-3: Correlation of Family background with Foresight. Component r S9 I am ready to face any risk related to my future tasks -0.472** S10 I will not be disturbed by the set-backs in my future tasks -0.645** S11 I can forecast the implications of a particular situation -0.670** S12 I can anticipate the potential problems -0.603** S13 I always think about future opportunities than past deeds -0.603** ** Correlation is significant at 0.01 level (2-tailed) The derived significant correlation coefficients establish a strong relationship between family background and ‘foresight’ as a feature of entrepreneurial orientation in general. The
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skill of anticipation (S12 = -0.603), undisturbed with hostility (S10 = -0.645), future readiness (S9 = -0.472), and ability to deal with consequent implications (S11 = -0.670 & S13 = -0.603) show an inverse relationship with family background. While the significant correlation imply the existence of family background oriented differences in normal situation, the inverse nature of relationship prompts that the family occupation specific variations may tend to reduce with increasing importance of foresight as a specific feature of entrepreneurship. Managerial There is very little research on management behaviour of entrepreneurs and a comprehensible association with success has not yet been established. The components (Table-4) tested under this factor are risk-orientation (S7), decision-making skill (S27, S28), calculative skill (S14), and self-confidence (S26) which are exclusively managerial in nature. Table-4: Correlation of Family background with Management behaviour. Component r S27 I prefer to make my own decisions -0.416** S28 I depend on my instinct & intuition while making decisions -0.527** S7 I prefer to take risk in future life -0.572** S14 I can calculate the financial needs of my business S26 I have confidence in my own skills and capabilities 0.204** ** Correlation is significant at 0.01 level (2-tailed) Among the components tested, the calculative skill (S14) doesn’t yield a significant correlation meaning that all the respondents have similar opinion upon the issue irrespective of their family background. The other three issues: self-confidence (S26 = 0.204); riskorientation (S7= -0.572) and decision-making skills (S27= -0.416 & S28 = -0.527) showed strong correlation with family background implying the existence of family occupation specific differences among the sample. However, the inverse nature of the resultant correlation indicates that the gender-sensitive variations tend to increase while the importance of these issues decreases and vice versa except for the component of self confidence which yielded a positive value. Knowing The Entrepreneurship Development Institute of India (EDI) identifies ‘knowing’ as a desirable competency for entrepreneurs. Knowing who knows, consulting experts, reading relevant material and an overall openness to ideas and information is essential for any successful entrepreneur. The competencies of learning from mistakes (S33) and ability to analyse self weaknesses (S34) represent the factor of knowing (Table-5).
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Table-5: Correlation of Family background with Knowing. Component r S34 It is important to analyze own weaknesses in business dealings -0.233** S33 I prefer to learn from mistakes to do it right next time. -0.325** ** Correlation is significant at 0.01 level (2-tailed) Both the components - ability to analyze self-weaknesses (S34= -0.233) and ability to learn from mistakes (S33 = -0.325) showed similar nature of correlation with family background of the respondents. However, the inverse nature of the values derived indicates that family background ceases to be a differentiator as the need for learning increases and vice versa. Initiative Initiative means acting out of preference rather than coercion and taking the lead rather than waiting to follow others. The components such as preference to create employment opportunities (S3), try to attract reputation for self (S5) and business (S4) comprise the entrepreneurial skill of ‘initiative’ as presented in Table-6. Table-6:Correlation of Family background with Initiative Component r S4 I want to build a business with good reputation -0.613** S5 I like to attract good reputation for me from society -0.631** S3 I prefer to create as many employment opportunities as I can 0.322** ** Correlation is significant at 0.01 level (2-tailed) All the three components of initiative factor yielded significant (p < 0.01) correlation with family background of the management students. The inverse correlation values of two components: attract reputation for self S5= -0.631) and for business (S4= -0.613) imply that family-specific differences may vanish as the need for attracting reputation increases and vice versa. The preference to create more employment opportunities (S3) is positively correlated (0.322) with family background which means that the independent and dependent variables tend to increase or decrease together unlike in the earlier case. Autonomous The sovereign character and freedom of action necessary to advance new venture development is a driving force of entrepreneurial value creation (Burgelman, 2001). Independence augments innovation, endorses entrepreneurial endeavors and augments the competitiveness (Brock, 2003). Hence, autonomy is a vital component of entrepreneurial orientation. But many of the previous studies didn’t include autonomy as a critical component
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for analysis. In present research, autonomy (Table-7) is reflected through components such as preference to work for self (S31) and feel offended when get bossed around (S32). Table-7:Correlation of Family background with Autonomous Component r S31 I would like to work for myself -0.485** S32 I feel resentful when I get bossed around at work -0.690** ** Correlation is significant at 0.01 level (2-tailed) The factor of ‘autonomy’ shows a significant (p < 0.01) correlation with family background as a determinant of entrepreneurial orientation of management graduates. The inverse correlation values for like to work for self (S31= -0.485) and reluctance to get bossed around (S32= -0.690) imply that the extent of family background based variations increase while the importance of these components decrease and vice versa. Thus the inverse nature of correlation clearly establishes that one variable increases as the other decreases. Persistence Persistence helps to overcome road-blocks and stick to one's beliefs no matter what others say. Persistence is what keeps one motivated when things aren't going the way as expected. The factor of persistence (Table-8) in this study, is represented by hard-working (S16), willing to sacrifice personal comforts (S17) and try to contribute for the well being of the society (S6). Table-8: Correlation of Family background with Persistence. Component r S16 I work hard to make my organization function better 0.347** S6 I want to contribute to the well- being of the society 0.454** S17 I am ready to sacrifice personal comfort for my growth 0.424** ** Correlation is significant at 0.01 level (2-tailed) All the components of persistence are significantly (p
