Determinants of Entrepreneurial Intention among Young Graduates of Northeast India

Entrepreneurship has an important role in economic developments of any country. Government of India launched start-up India campaign and opened start-up cells in educational institutions to provide facilitating condition and enhance skills to young graduatesfor starting a new business. However, the success of such policy is depending upon the entrepreneurial intention. Therefore, it is required to study the determinants of entrepreneurial intentions among the young graduates. The aim of the study is to understand the influence of determining factors on entrepreneurial intention among young graduates of northeast India. Questionnaire surveys of 114 samples of graduate students of northeast India were carried out. For data analysis Partial Least Squares (PLS) structural equation modelling was used for validity and reliability of the factors. Finding of this study will provide the clear understandingabout the behavioural intention to become an entrepreneur along with the factors that influencing the situation to start up new business.


Introduction:
Start-up firm/Entrepreneurial firms plays important role in developing market economics, innovation and productivity of the country and provide job opportunities to unemployed man, women, minorities and immigrants .With increased requirement of technological advancement and international competition entrepreneurship is regarded as a driving force of innovation (Lu¨thje and Franke, 2003). Therefore, priority of policy makers is focusing towards the fostering of entrepreneurship . Government of India also made various policies to encourage entrepreneurships such as Simplification of Licensing Procedure, Liberal Economic Policies, Establishment of Development Institutions, start-up India, Development of Women Entrepreneur, make in India etc. (Googlesir, 2019).
Idea to become an entrepreneur is attractive to students due to degree of independence they may get as a self-employed. However, to start a new business and become an entrepreneur requires behavioural intention to become an entrepreneur that is related to the desirability and feasibility of the conditions such as policies, previous experience, self-efficacy etc. These factors play important role in entrepreneurial intention (Leung et al., 2012). Therefore, this study focusses on the underlying factors that may impact behavioural intention to start a new business among the students. To find out the

2.
Theoretical Background 2.1. "Entrepreneurial Event" model Entrepreneurial Event defines the behaviour of entrepreneur in certain situations compared to other individuals. Entrepreneursevent has five characteristics namely initiative talking, consolidation of resources, management of the organisation, relative autonomy and risk taking. According to Shapero and Sokol (1982) entrepreneurial behavioural intention depends on the relative "credibility" that is influenced by personal desirability and feasibility (Krueger et al., 2000). Another factor that influences the intention is "Propensity to act", which measures the control over life event or achievement related behaviour (Burger, 1979).

Entrepreneurial Intention Model
Intention models anticipate that outside variables (demographic or heritage characteristics) have no effect on the purpose of performing a given behaviour (Ajzen, 1991;Liñán, 2004). Liñán"s entrepreneurial intention model identifies the antecedents that influences the intention are entrepreneurial knowledge, perceived desirability (personal attitudes and social norms) and perceived feasibility (self-efficacy) (Liñán, 2004).

Entrepreneurial intentions
The term entrepreneurial intention defines the intention to start new business (Krueger et al., 2000). Intention toward a purposeful behaviour specifically entrepreneurial intention is very important because intentions can develop a key initial characteristic for set up a new business (Krueger, 1993). Many studies previously focused to study entrepreneurial intentions as listed in the Table 1.

Hypothesis Development
Perceived desirability is the degree of attraction one has for the prospect of starting a new business (Krueger et al., 1993). Previous study shows that intention is associated with perceived desirability (Krueger et al., 1993;Shapero and Sokol, 1982;Liñán, 2004). In line with previous researches we have perceived desirability in our research framework. Entrepreneurial education is the key element for developing entrepreneurial attitude and intention. Educational initiatives were considered as most potential to generate entrepreneurs. Education influences individual performance and can act as catalyst for the development of entrepreneurial intention (Potter 2008). Students" self-efficacy is the self assurance that they could successfully engage in entrepreneurial behaviour which stems from their abilities and skills (Hattab, 2014). Thus, entrepreneurship education is more likely to positively influence attitude and self-efficacy of any individuals that are required to become an entrepreneur. Further, attitude and self-efficacy will positively relate to the intention. Table 2 provides the definitions of factors that we are using in our proposed framework. Perceived desirability is the degree to which one finds the prospect of starting a business to be attractive; in essence, it reflects one's affect toward entrepreneurship Krueger, 1993 Self -efficacy Self-efficacy is a person"s belief in his or her capability to successfully perform a particular task.

Bandura, 1997
Entrepreneurial Based on the discussions we can hypothesis that: H1: Entrepreneurial education will positively relate to perceived desirability. H2: Entrepreneurial education will positively relate to attitude. H3: Entrepreneurial education will positively relate to self-efficacy. H4: Perceived desirability will positively related to Entrepreneurial intention. H5: Attitude will positively relate to Entrepreneurial intention. H6: Self-efficacy will positively relate to Entrepreneurial intention.

Methodology
In this research, online questionnaire-based survey method was used. A questionnaire with 21 items (appendix I) comprising six dimensions: Self-efficacy, perceived desirability, entrepreneurial education, entrepreneurial attitude and entrepreneurial intentions were constructed. Items of each construct must describe the concept in order to generalize the findings. Thus, in this study, development of items for measuring the constructs are adopted and modified in the research context from previous researches conducted by Krueger, 1993;Burger, 1979

Analysis And Results
In this study we used SmartPLS 2.0.M3 for the data and structural path analysis. Partial least squares (PLS) is a powerful method of analysis because of the minimal demands on measurement scales, sample size, and residual distributions. The literature supports that the minimum sample size for PLS should be larger than 10 times the largest number of structural paths directed at a particular construct in the inner path model (Chin, 1997;Khire et al, 2016). In this proposed research model, structural paths directed at a particular construct in the inner path model is six, whereby, "intention to use" with 3 paths has the largest number of structural paths. Thus, sample size 114 satisfies the minimum requirements. Analysis of data is done in two steps, confirmatory factor analysis (CFA) and structural modelling. CFA analysis represents the reliability and validity of the constructs. Convergent validity can be confirmed by testing item loadings, composite reliability, and AVE (Khire et al, 2016). Composite reliability (CR) of the items should be above 0.7 (Fornell and Larcker 1981); average variance extracted should be above 0.5 (Hair et al, 2010); the square root of AVE should be higher than the inter-construct co-relations (Fornell and Larcker 1981;Khire et al, 2016). Individual item standardized loading should be above 0.5 (Hair et al, 2010) and significant p-value of loading is P<0.05 (Gefen and Straub, 2005). In this research model, all the used constructs have higher than the required values of factor loading with significant p-value, CR, AVE and square root of AVE, which confirms the convergent and discriminant validity. All the results of our analysis are satisfying the criteria. Table 3 shows the reliability and validity of the constructs. Table 4 shows correlation of constructs. Table 5 shows loadings and t-value of the items. Table 6 shows the Hypothesis testing results.

Implication
This study successfully tested proposed model that were developed by referring "Entrepreneurial Event" model proposed by Shapero and Sokol"s (1982)  Entrepreneurial education is influencing positively to attitude, self-efficacy and perceived desirability. Further attitude and self-efficacy are positively influencing intention, which is in line with the Liñán"s (2004) and perceived desirability is positively influencing intention, which is in line with the Liñán"s (2004) and Shapero and Sokol"s (1982). Therefore, efforts must be taken to enhance those abilities among graduate students. Institutions and Policy maker should design a curriculum and events that can provide entrepreneurial environment through various events and awareness programs by giving the opportunity to interact with the role models. Also effort should be taken for built up the attitude and desirability of young graduates.

Limitation and future work
There are a few research limitations of this study.

5.
Entrepreneurial intentions I think I will start a business.

6.
My intention to start own business in the few years is more.
7. I heve plan to be self-employed in the foreseeable future after graduation.