Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 25 January 2022

Self-Employment among Graduates during the Covid-19 Pandemic: Necessity or Opportunity Entrepreneurship Driven

Noor Fzlinda Fabeil, Juliana Langgat, Khairul Hanim Pazim, Roslinah Mahmud

Universiti Malaysia Sabah, Malaysia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.05.01.400

Pages: 21-28

Keywords: Self-Employment, Graduates, Covid-19 Pandemic, Opportunity-Driven Entrepreneurship, Necessity-Driven Entrepreneurship

Abstract

The Covid-19 pandemic has caused a profound and damaging impact on the global economy, including the rise in unemployment. One of the significant trends that emerged from the pandemic is the decline of graduate recruitment volumes due to the closure of several business activities among employers. As a result, more graduates are likely difficult to enter the labour market and not able to earn a living. In Malaysia, the government and universities have put concerted efforts to inculcate entrepreneurial mindset and competencies among graduates, intending to prepare them with entrepreneurial qualities to become independent and resourceful graduates. This study explores to what extend the Covid-19 pandemic has influenced the graduates of the Entrepreneurship Program in Universiti Malaysia Sabah to become self-employed, after 6 months of their graduation, and what drives their choices. The results of 108 graduates found that more than half of them choose for self-employment after graduation during the pandemic, mainly take up their own business and perceived themselves as opportunity-driven (to take advantage of business opportunities), while the remaining are necessity-driven (to help family, to earn money, lack of other options). The study also provides insights that venturing into entrepreneurial activities is a significant strategy for livelihood among graduates. This paper would shed light for further studies on the influence of opportunity and necessity motivation towards entrepreneurial opportunity among graduates.

References

  1. Ahn, T. (2010). Attitudes Toward Risk and Self-Employment of Young Workers. Labour Economics, 17(2), 434-442.

  2. Kumaran, A.S., Rosli, N.S., Kurup, V., Mathaven, L., & Zawari, M.Z. (2018). Factors Influence Graduates in Becoming Entrepreneurs Among Accounting Students in Malaysian University. International Journal of Business, Economics and Law, Vol. 15 (4), 87-98.

  3. Blaikie, N. & Priest, J. (2017). Social Research: Paradigms in Action. Polity Press, UK.

  4. Block, J., & Wagner, M., (2010). Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earnings Differentials. Schmalenbach Business Review, 62(2), 154–174.

  5. Botric, V. & Tomic, I. (2016). Self-employment of the young and the old: exploring effects of the crisis in Croatia. Working Papers 1603, The Institute of Economics, Zagreb.

  6. Brockhaus, R. H. and Horwitz, P. S. (1986), The psychology of the entrepreneur. In D. L Sexton, R.W. Smiller (ed.), The Art and Science of Entrepreneurship, 25-48. Cambridge, MA: Ballinger.

  7. Bryman, A. (2015). Social Research Methods. Oxford University Press.

  8. Caliendo, M., Maximilian, G. & Martin, W. (2019). Entrepreneurial Persistence beyond Survival: Measurement and Determinants, IZA Discussion Paper, No. 12607, Institute of Labour Economics.

  9. Cooper, A. C., & Dunkelberg, W. C., (1986). Entrepreneurship and Paths to Business Ownership. Strategic Management Journal, 7(1), 53-68.

  10. De Clercq, D. & Honig, B. (2011). Entrepreneurship as an Integrating Mechanism for Disadvantaged Person. Entrepreneurship and Regional Development, 23(5-6), 353-372.

  11. Devins, D., (2009). Enterprise in Deprived Areas: What Role for Start-ups? International Journal of Entrepreneurship and Small Business, 8(4), 486-498.

  12. Ekpe, I. (2017). Entrepreneurial Skill Acquisition, Psycho-Social Factors and Youth’s Self-Employment in Malaysia. Journal of Entrepreneurship Education, 20(1), 1-11.

  13. Elifneh, Y. W. (2015). What Triggers Entrepreneurship? The Necessity/Opportunity Dichotomy: A Retrospection. Journal of Poverty, Investment and Development, 15, 22-27.

  14. Frank, H., Lueger, M. and Korunka, C. (2007). The Significance of Personality in Business Start-up Intentions, Start-up Realization and Business Success, Entrepreneurship and Regional Development, 19, 227-251.

  15. Gibbs, G. (2010). Dimensions of Quality, The Higher Education Academy: United Kingdom.

  16. Greene, F. J. & Saridakis, G. (2008). The Role of Higher Education Skills and Support in Graduate Self‐Employment. Studies in Higher Education, 32(6), 653-672.

  17. Hansen, D., Shrader, R. & Monllor, J. (2011). Defragmenting Definitions of Entrepreneurial Opportunity. Journal of Small Business Management, 49, 283-304.

  18. Johnstone, S., Saridakis, G. & Wilkinson, A. (2019). The Global Financial Crisis, Work and Employment: Ten Years On. Economic and Industrial Democracy, 40(3), 455-468.

  19. Krueger, N. F., Reilly, M. D. & Carsrud, A. L. (2000). Competing Models of Entrepreneurial Intentions, Journal of Business Venturing, 15(5-6), 411-432.

  20. Mazlina, M. & Maitilee, S. (2015). Personal attributes, family influences, entrepreneurship education and entrepreneurship inclination among university students. Kajian Malaysia, 33, 155-161.

  21. McClelland, D.C (1987). Characteristics of Successful Entrepreneurs, Journal of Creative Behaviour, 21(3): 219-233.

  22. Nasiri, N. & Hamelin, N. (2019). Entrepreneurship Driven By Opportunity and Necessity: Effects of Educations, Gender and Occupation in MENA. Asian Journal of Business Research, 8(2), 57-71.

  23. Oreopoulos, P., Wachter, T., & Heisz, A. (2012). The Short- and Long-Term Career Effects of Graduating in a Recession. American Economic Journal: Applied Economics, 4(1), 1-29.

  24. Oxenfeldt, A. R. (1943). New Firms and Free Enterprise: Pre-war and Post-war Aspects. Washington DC: American Council on Public Affairs.

  25. Reynolds, P. D., Bosma, N., Autio, E., Hunt, S., Bono, N. D., Servais, I., Lopez-Garcia, P., and Chin, N., (2005). Global Entrepreneurship Monitor: data collection design and implementation 1998–2003‖, Small Business Economics, 24(3), 205–231.

  26. Rissman, E. (2003). Self-employment as an Alternative to Unemployment. Working Paper Series, No. WP-03-34, Federal Reserve Bank of Chicago.

  27. Robinson, P. B., Simpson, D. V., Huefner, J. C. and Hunt, H. K. (1991), An Attitude Approach to the Prediction of Entrepreneurship, Entrepreneurship Theory and Practice, Summer: 13 31.

  28. Sánchez, B. R. H., Cardella, G. M. & Garcia, J. C. S. (2020). Psychological Factors that Lessen the Impact of COVID-19 on the Self-Employment Intention of Business Administration and Economics’ Students from Latin America, International Journal of Environmental Research and Public Health, 17, 1-22.

  29. Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill building approach (5 ed.). Chichester, West Sussex: John Wiley & Sons, Inc.

  30. Solymossy, E., (1997). Push/pull motivation: Does it Matter in Terms of Venture Performance? in P. Reynolds, W. D., Bygrave, N. C., Carter, S., Manigart, C., Mason, G., Meyer, & K., Shaver (Eds.), Frontiers of Entrepreneurship Research.

  31. Statistics Department of Malaysia (2020). Labour Force Survey, released on 11 January 2021, retrieved from https://www.dosm.gov.my

  32. Wadensjo, E. & Andersson, P. (2007). Do the Unemployed Become Successful Entrepreneurs? International Journal of Manpower, 28(7), 604-626.

  33. Williams, C. C., & Round, J. (2009). Evaluating Informal Entrepreneurs’ Motives: Some Lessons from Moscow. International Journal of Entrepreneurial Behaviour and Research, 15(1), 94–107.

  34. Williams, N., & Williams, C. C., (2014). Beyond Necessity versus Opportunity Entrepreneurship: Some Lessons from English Deprived Urban Neighborhoods. International Entrepreneurship and Management Journal, 10(1), 23-40.

  35. Yusof, M., Sandhu, M. S. & Jain, K. K. 2007. Relationship between psychological characteristics and entrepreneurial inclination: A case study of students at UNITAR. Journal of Asia Entrepreneurship and Sustainability 3(2): 1–16

  36. Zali, M. R., Faghih, N., Ghotbi, S., & Rajaie, S. (2013). The Effect of Necessity and Opportunity Driven Entrepreneurship on Business Growth. International Research Journal of Applied and Basic Science, 7(2), 100-108.