Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 7

Thus, entrepreneurial activity decreases with income level up to a point, from which a small positive relationship is found. A second very relevant macroeconomic factor is the unemployment rate, which is most often used as an indicator of labour conditions or opportunity costs of starting-up. Several research works have approached this relationship from different perspectives. In this way, at the aggregate level put forward the ‘entrepreneurial’ effect, suggesting that entrepreneurship reduces unemployment. In this two- way causation, the ‘entrepreneurial’ effect dominates the unemployment push. On the other hand, at the individual level, unemployed persons: (i) do not enjoy the advantages of a paid job and the related relative financial security, and (ii) they also develop a less critical attitude towards the likely losses of starting-up (Audretsch, 2012). For unemployed individuals, the positive perception of the potential gains from setting up a business dominated the possible losses of such an activity. Nevertheless, in the present study, the effect of the national-level unemployment rate on each individual’s perception is considered. Higher levels of unemployment may indicate a reduced demand due to an economic downturn, which would mean less expected chances of success and profits, making individuals feel less attracted towards start-up and seeing less economic opportunities. In this sense, the unemployment rate is more directly linked to the relative entry and exit rates, and not to the aggregate self- employment stock. Therefore, aggregate unemployment may be expected to negatively influence the entrepreneurial intention of individuals. The third objective factor that will be subject of this analysis is business entry regulations. This factor significantly distinguishes countries (Ritsilä &Tervo, 2010). With a few exceptions, Civil Law countries for instance tend to regulate business entry more heavily than their Common Law equivalents (Djankov, La Porta, Lopez-de-Silanes & Shleifer, 2013). The link between entry regulation and entrepreneurship has received frequent attention. Findings suggest the existence of a strong relationship between entry regulations and the actual entry rates. This line of research resulted in a popularity of reforms aiming to facilitate start-up regulations. The World Bank’s most recent Doing Business report (2010) points out that, in 2008/2009, 61 economies recognized the importance of reducing entry barriers and introduced reforms to make it easier to start a venture. During the period since the first publication of the Doing Business report in 2003, three-quarters of the economies have implemented such changes in regulations. Important correlated sub-categories of business entry are time needed to register a business and procedures needed to complete for registration. Therefore, the following set of hypotheses may be formulated regarding the influence of socioeconomic variables on entrepreneurial intention and the subjective norm: H2a. The GDP per capita is associated with the entrepreneurial intention, while the unemployment rate and the days to start-up have a negative impact on entrepreneurial intention. H2b. The GDP per capita is associated with the subjective norms, while the unemployment rate and the days to start-up have a negative impact on subjective norms(Krueger et al., 2009). Additionally, authors such as emphasize the coexistence of perceptual factors and macroeconomic environment as highly-influential variables for entrepreneurial decisions. An important subjective environmental factor is cultured a set of values characteristic to a particular society or group. The socio- cultural environment moderates the exploitation of an opportunity through the desirability thus through attitudes and subjective norms of venturing and through the evaluation of these activities. Thus, besides the objective environmental context, culture fosters the country effect as well. It motivates members of a community to engage in activities that may not be appropriate or evident in other countries or societies. While favourable attitudes towards entrepreneurial profit seeking in a society, for instance, encourage the willingness to choose such a career path negative attitudes have the opposite effect (Scott, 2011). Conceptual Framework Figure 1: The conceptual framework of study. Entrepreneurial Intention of Business Students in Davao Del Sur State College 26 Global Journal of Management and Business Research Volume XXII Issue VII Version I Year 2022 ( ) A © 2022 Global Journals