DETERMINANTS OF ENTREPRENEURIAL INTENTIONS: APPLYING WESTERN MODEL TO THE SRI LANKA CONTEXT

Abstract

This study examines the factors influencing the intention of students to start up a new venture. Using both the "Theory of Planned Behavior" and "Theory of Reasoned Action", a model is tested using survey data collected from 353 undergraduate business students in Sri Lanka. Results of structural equation modeling show entrepreneurial intentions are positively influenced by perceived behavioral control and macro-environment support. However, the effects of attitudes towards entrepreneurship and subjective norms were not significantly related to intentions. Interestingly, beliefs about entrepreneurship had a negative relationship with attitudes toward entrepreneurship. Theoretical and practical implications of these findings are discussed in the context of developing countries like Sri Lanka.