Abstract
This study investigates the effects of motivation on student entrepreneurial intention, specifically examining the mediating role of entrepreneurial skill development among undergraduate business students in the Polytechnic University of the Philippines - Open University System during the academic year 2024-2025. Utilizing a quantitative correlational research method and Partial Least Squares-Structural Equation Modeling (PLS-SEM) on a sample of 360 undergraduate students.
Findings reveal that both intrinsic motivation (fulfillment from bringing ideas to life) and extrinsic motivation (financial stability) significantly and positively affects students' entrepreneurial intentions. While students generally exhibit strong self-perception of entrepreneurial skills like opportunity identification, a notable gap exists in confidence regarding business model development, financial plan presentation, and negotiation skills. The study definitively confirms that entrepreneurial skill development, encompassing business planning, financial management, and strategic decision-making, acts as a crucial mediator between motivation and entrepreneurial intention. Hypothesis testing revealed a significant positive direct effect of motivation on student entrepreneurial intention (β=0.415, p=0.000). Furthermore, entrepreneurial skill development significantly mediates this relationship (β=0.287, p=0.000), confirming that motivation fosters skill development, which in turn enhances entrepreneurial intention.
These results underscore the critical importance of designing entrepreneurship programs that not only inspire but also build practical competencies through real-world experiences, mentorship, and goal-oriented learning to effectively foster entrepreneurial outcomes in students. Recommendations include implementing an intervention program, focusing on project-based learning, practical financial management training, virtual simulations, and mentorship to bridge skill gaps and enhance resource accessibility. This comprehensive approach aims to cultivate a robust entrepreneurial ecosystem within distance learning environments, transforming student aspirations into concrete ventures and contributing to local economic development.
Keywords: intrinsic & extrinsic motivation, entrepreneurial intention, entrepreneurial skill development
INTRODUCTION
Entrepreneurship is vital for global economic and social progress, driving innovation and job creation. In response, many educational institutions have integrated entrepreneurship education into their curricula to foster an entrepreneurial mindset and equip students with necessary skills. Their goal is to foster an entrepreneurial outlook and train students with the competencies needed to start businesses (Fayolle & Gailly, 2015). With this developing highlighting on business education, especially for students who will be future business leaders, it's become crucial to understand what influences people's intentions to start their own business.
Recent global research, including a study in China by Shahabab et al. (2019), has explored the link between entrepreneurial self-efficacy, and intentions. A study in Indonesia by Putra and Adnyani (2021) showed that entrepreneurial self-efficacy acts as a mediator, increasing the likelihood of motivated students becoming entrepreneurs. In the Philippines, a study by Bautista and de Guzman (2019) investigated the elements of entrepreneurial intention amid undergraduate students in the Philippines, including motivational factors and the perceived progress of entrepreneurial skills. The results included that a strong entrepreneurial outlook and the perception of having acquired relevant skills positively influenced students' intentions to become entrepreneurs.
Despite the increasing body of research, there is a call for a more in-depth understanding of how entrepreneurial skill development mediates the relationship between motivation and entrepreneurial intention, specifically within the unique context of the Philippines. Thus, a significant research gap exists in understanding how distance education modalities, such as those in the PUP Open University System, impact this relationship, as findings from traditional settings may not be directly transferable to online learning environments. This study aims to address this gap by determining the effects of motivation on student entrepreneurial intention, highlighting the mediating role of entrepreneurial skill development.
Grounded in three interconnected theories: Self-Determination Theory (Ryan & Deci, 2020), Theory of Planned Behavior (Ajzen, 2015). and Human Capital Theory (Marvel, Davis, & Sproul, 2016). The SDT provides the framework for understanding motivation, distinguishing between intrinsic drives (like passion for innovation) and extrinsic incentives(such as financial gain). This motivation, in turn, directly influences the TPB, which posits that a person's intention to act is the strongest predictor of their behavior. In this context, a student's motivation affects their attitude toward entrepreneurship and their perceived behavioral control. HCT then becomes the crucial link, explaining that investments in specific entrepreneurial skills like business planning and financial management which enhance a student's human capital. This skill development directly boosts their confidence and perceived control (a key element of TPB), thereby strengthening their intention to pursue entrepreneurship. Essentially, a student's motivation shapes their entrepreneurial outlook, with the development of practical skills serving as the vital bridge that transforms their interest into a concrete plan to launch a business.
Ultimately, the study can provide invaluable insights into designing and implementing improved entrepreneurial learning initiatives designed for particular requirements and learning styles of Open University students. This comprehending will not only enhance the entrepreneurial ecosystem within the Philippines by empowering a diverse student body but also inform best practices for other distance learning institutions seeking to cultivate an entrepreneurial outlook among their students, ultimately contributing to commercial growth and employment generation in the country.
Statement of the Problem
This study aimed to determine the effects of motivation on student entrepreneurial intention, underlining the mediating role of entrepreneurial skill development among the business programs in the PUP Open University System. Explicitly, it sought to answer the following questions:
1. What is the level of students’’ motivation in terms of the following indicators:
1.1 Intrinsic, and
1.2 Extrinsic?
2. What is the level of students’’ entrepreneurial intention in terms of?
2.1 Attitude toward the behavior;
2.2 Subjective norm; and,
2.3 Perceived behavioral control?
3. What is the level of students’’ entrepreneurial skill development in terms of?
3.1 Business planning;
3.2 Financial management; and,
3.3 Strategic decision-making?
4. Is there any significant effect on the students’ motivation to their entrepreneurial intention?
5. To what extent does entrepreneurial skill development mediate the effects of motivation to student entrepreneurial intention?
Hypotheses
H0. Motivation does not affect student entrepreneurial intention.
H0. Entrepreneurial skill development does not mediate the effects between motivation and student entrepreneurial intention.
