Determinants of Investment Intention in Micro and Small Enterprises Among Business College Students in East Gojjam Zone

Abstract

This study examines factors influencing the investment intentions in MSE among business college students in East Gojjam Zone. A conceptual frame work was designed by integrating seven constructs from theory of planned behavior (Ajzen, 1991), investment decisions predicting model (Azwadi, 2011) and previous studies. Accordingly, attitude, subjective norms, perceived behavioral control, perceived risk, perceived return, perceived trust and financial literacy were taken as predictors of investments intentions in micro and small businesses. The study used a self-administered questionnaire of a sample of 254 final year students of higher educational institutions under the areas of business during 2017/18 academic year. The sample was drawn from six higher educational institutions operating in East Gojjam zone using stratified sampling technique. Statistical analysis was conducted using SPSS version 20.0. In this study correlation analysis was carried out to show the direction of relationships among the dimensions included in the model. Moreover, multiple regression analysis was conducted to determine the predictive values of the constructs. The findings revealed that financial literacy, perceived behavioral control, perceived return, attitude, perceived trust and perceived risk were significant predictors of student’s intention to invest in the micro and small enterprises. Subjective norm was not statistically significant in affecting intention though it has a negative relationship with intention to invest. Finally, it is recommended Colleges, universities and MSE development agency have to take valuable efforts by conducting training on investment alternatives and benefits and entrepreneurial workshop programs to students to change their attitude and develop positive and risk taking behavioral intention towards investment and entrepreneurial endeavor and make them to realize the importance of self-employment.

Keywords: Determinants, Business students, investment intention, attitude, MSE

DOI: 10.7176/RJFA/11-3-02

Publication date: February 29^th 2020