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INTERNATIONAL JOURNAL OF MODERN MANAGEMENT RESEARCH


REVIEW (IJMMRR)

FACTORS EXPLAINING STUDENTS INCLINATION TOWARDS ENTREPRENEURSHIP:


THE CASE OF THE SYSTEMS PLUS COLLEGE FOUNDATION
Dr. Marilou Q. Tolentino, DBA, MBA
Dean, College of Business, Systems Plus College Foundation
Angeles City, Philippines, Email: lou.gar0627@gmail.com
KEY WORDS ABSTRACT
This work analyzes the inclination of students towards entrepreneurship at the
Entrepreneurship College of Business, Systems Plus College Foundation. Specifically, the study
education; wants to determine the significant factors that affect the inclinations towards
Philippines, entrepreneurship from among the respondents. The influence of role models,
entrepreneurship image of entrepreneurship, curriculum and content, promotion of entrepreneurial
inclination;
education, entrepreneurial programs, personal learning approach, and the over-
entrepreneurship
curriculum; all attitude of the respondents towards students inclination on entrepreneurship
entrepreneurial is also being studied. An inter item correlation was carried out on the data
promotion; gathered from questionnaires demonstrates that the promotion of
entrepreneurship entrepreneurship and entrepreneurship programs and internships variables
internship shows significant statistical results as to the relationship on the inclination
programs; towards entrepreneurship. Overall, the various items analyzed presented a
personal learning positive correlation. In conclusion, based on the findings, the implications
approach entrepreneurship education established an affirmative result that would help
future research direction and policies to strengthen entrepreneurship on tertiary
education institutions.

INTRODUCTION
In the Philippines, people are lecturing and discussing various avenues to improve and uplift their
ways life; therefore, the idea of entrepreneurship or establishment of micro-small business
undertaking had sparked in every nook of the country. Policymakers, socio- civic organizations,
politicians, government officials, religious organizations, economists, academics, and college
students are talking about it. Goel, Vohra, Zhang, and Arora (2007) had viewed that entrepreneurship
is about building and overseeing a business for profit and growth. The idea is supported McMullan,
Long and Graham (in Lena & Wong, 2004) that entrepreneurship is a catalyst for emerging and
producing new lines of businesses.
On the other hand, Small bone and Welter (2001) stated that entrepreneurship encompasses self-
employment and part-time business, this was supported by Bhide (2000) who said that it is a venture

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creation and ownership of small and medium enterprises. Ordinary people pick up the idea and
translate it into the small business undertaking. It has been a clich, primarily the youth whose ages
run from 18-34 (Chen & Lai, 2010); this segment of the society understands the importance of
starting-up fresh business.
In the Philippines self employment becomes an option as unemployment still a problem since it is
more attractive and rewarding career option for the people particularly for university or college
students and graduates. In effect, this explained why courses in entrepreneurship begun to be
recognized in the college and university levels (Brown, 1999). This view is supported by Solomon,
Weaver et al. (2005) that entrepreneurship study had increased over the last ten years. Arguably, the
job market became highly competitive, especially in the public sector for university graduates
(Collins, Hannon et al, 2004; Kamau-Maina, 2006; Postigo, Iacobucci et al, 2006).
Based on recent studies, it was further noted that entrepreneurs are the backbone of Philippine
economy; it is an entrepreneurial country. It was accounted that 99% of business establishment in the
country are classified as Small and Medium-sized Enterprises (SME. It shows that SME's currently
employ about 55 percent of the Philippine labor force and contribute 30 percent to the total domestic
sales volume, according to the data held by the Department of Trade and Industry.
In a study conducted by the Center for Asia Pacific Studies a measly 14% of the students who enrolled
from the elementary level would end up a college degree and only 7.7% of graduates get employed
which is based on the study of Smart Communications. This situation creates a higher level of
unemployment. This explains the exodus of skilled workers working abroad as jobs generated in the
country are limited. The importance of entrepreneurial undertaking is crucial for the economy to
grow.
Within the context of youth entrepreneurship and entrepreneurship culture of the younger
generations, this study aimed at identifying the factors or determinants of entrepreneurial inclinations
of students. Ultimately, the result will provide the researcher a better understanding to foster the
entrepreneurial spirit and attitude of students in undertaking an entrepreneurial endeavor.

OBJECTIVES OF THE STUDY


This study purported to assess the entrepreneurial inclinations of the College of Business students in
the Systems Plus College Foundation. More specifically, this study described the profile of the
respondents; examined entrepreneurial inclinations and capacities of the respondents; knowing the
factors that inclined the entrepreneurial spirit of the respondents and willingness to take an

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entrepreneurial undertaking; and determine the role of the College towards promotion of
entrepreneurship.
The research findings will offer ideas to address the barriers that encouraged students to follow their
entrepreneurial career path. Finally, entrepreneurship will be known as a viable career alternative of
the College of Business students in the Systems Plus College Foundation.

LITERATURE REVIEW
Educational institutions had integrated entrepreneurship in the curriculum and find guidance in
various settings (EC, 2008). The essential requisite behind this program is that entrepreneurship is
both taught and learnt.
The Lyceum of the Philippines had included entrepreneurship in the Institutional Intended Learning
Outcomes where it aimed to encourage students use basic knowledge and skills in business
management, entrepreneurship and financial management (Laguador, 2013). Resurrection (2011)
argued that entrepreneurship has been considered by lot of developing and underdeveloped countries
as one potential resolution to address poverty issues. Many governments have not been remiss in
initiating programs and actions to promote entrepreneurial efforts, especially among the young to
encourage them to be an active subscriber to the thrust of poverty alleviation. Despite of these efforts
mindsets of students still appear to be centered on corporate engagement.
Similar to this line of research, Wang, et. al. (2011) proposes that there is an entrepreneurial intention
among international students, and that a large portion of these students have rather strong
entrepreneurial intention. This field may bring more awareness for educators so they can help raise
the valuable spirit among this special group and thus possibly bring out more entrepreneurs. In
summation, this study has demonstrated that perceived feasibility is a stronger predictor of
entrepreneurial intention than personal desirability; therefore, university educators may want to
enhance perceived feasibility if they intend to increase the level of entrepreneurial intention. Grassl
et al. (2005), acknowledged that among business students, personality factors and perceived
feasibility determine entrepreneurial inclination.
Researches over the years had revealed the contribution of entrepreneurship education towards
students entrepreneurial inclination. Mueller and Volery (2006), ascertained the importance of
entrepreneurship education in influencing the students decision on entrepreneurship as a career
option. The prior exposure to entrepreneurship education, develop a persons level of self efficacy
(Wilson, 2007).

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It is worthwhile to note that the appropriateness of curriculum and teaching methods in developing
students entrepreneurial competencies and skills is a major challenge to academic institutions
(Garavan and O'Cinneide 1994). Brown (1999) argues that the entrepreneurship course content
should emphasize more on hands-on teaching methods. In response, Vesper (2004) identified
various knowledge useful for entrepreneurs and hence the entrepreneurship course content should
be built up according to his knowledge: business-general knowledge, venture-general knowledge,
o pportunity-specific knowledge, venture-specific knowledge. I t was identified by
n u m e r o u s r e s e a r c h e r s that there are lots of approaches to teach entrepreneurship ranging
from using textbooks (Fiet, 2002), examinations (McMullan and Cahoon, 1979), business plan
(Audet, 2000), life histories of working entrepreneurs (McKenzie 2004); guest lecturers (Brown
1999; Klandt and Volkmann 2006) and visiting business organizations (Cooper, Bottomley, et al.
2004).
The career path of entrepreneurship creates opportunities for students to achieve financial
independence and benefit the economy by contributing to job creation, innovation, and economic
development. Entrepreneurship is a central driver of the Philippine economy. Entrepreneurs have
shown a higher degree of financial independence, creative freedoms, more eminent sense of pride,
and personal indulgence. In the College of Business, Systems Plus College Foundation many
students engaged, trained and exposed to small scale business or entrepreneurial activity which
include marketing bazaar, community outreach projects, selling small items, direct selling, e-tailing
etc. They are also involved in small businesses which only requires a small amount of capital to start.

RESEARCH FRAMEWORK
The study was aimed to examine factors that affect the entrepreneurial inclinations of students at the
College of Business, Systems Plus College Foundation, which include the following factors: attitude,
image of entrepreneurship, role models, promotion of entrepreneurship at the college, curriculum and
content, entrepreneurial program, and personal learning.

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Image of
Entrepre
neurship
Role
Attitude
Models

Entrepreneuri
al Inclination Promotion
Personal of
Entreprene
Learning urship at
the College
Entrepre
neurial
Program
(OJT, Curriculu
Outreach, m and
Co- Content
curricular
Acvtivitie
s)

RESEARCH DESIGN
The study used descriptive design using a survey questionnaire to describe the profile and
entrepreneurial inclinations of students at the College of Business, Systems Plus College Foundation.
This study aimed to provide a description of the relationship among the following variables:
demographic profile and entrepreneurial intentions of students. This research design was chosen
because it can provide essential knowledge about the subject under study as well as its relationship
with each other.
The data were gathered with speed, availability, accuracy and reliability of target respondents. Simple
random sampling was utilized to derive the desired target respondents. The sampling had targeted the
students at the College of Business, Systems Plus College Foundation. A structured questionnaire
was administered to the identified respondents. Analysis of data was done through SPSS (Statistical
Package for Social Sciences) to calculate and determine descriptive statistics and analyzed the
relationship of variables. The findings were summarized, explained and interpreted.

PARTICIPANTS
The participants of the study were business students at College of Business, Systems Plus College
Foundation. Only First Year to Fourth Year Level students under the BSBA, BSA and BS Accounting

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Technology at the College of Business for Semester 1, AY 2015-2016 were considered as


respondents, hence, total enumeration was considered. The sample frame was computed with 95%
confidence level and confidence interval of 2, hence the sample size needed was 380. There were 400
questionnaires distributed and were returned. Upon validation, only 376 were considered as some
vital items were not filled up or left unanswered.

INSTRUMENT
The study used a modified Entrepreneurial Intention Questionnaire (EIQ) of Linan and Chen (2009).
The questionnaire was divided into two parts. Part one consisted of the profile of the respondents
with four items, part two included twenty (55) items entrepreneurial intentions. Questionnaires were
pre tested and validated its reliability using Cronbachs Alpha reliability scale.

PROCEDURE
In order to obtain necessary data, the researcher used a survey questionnaire. A letter request to
conduct the study together with the two-part questionnaire was sent to the faculty of COB, SPCF to
be distributed during their lecture hour.

DATA ANALYSIS
The data gathered were tallied and interpreted using different statistical tools such as frequency and
percentage; weighted mean and Pearson Square test. The mentioned tools were used based on the
objectives of the study. The scales used in the questionnaire were based on a 5-point Likert scale
(with 1= strongly disagree, 2= disagree, 3= no opinion, 4=agree, 5= strongly agree) for each close-
ended question. Prior to conducting the main study, a pilot test was conducted to improve the
reliability and validity of the questionnaire. T h e r e w e r e 400 open and closed ended
questionnaires were distributed to all COB students from the t wo departments with the help of
respective lecturers in classes or lecture halls. The participation in this study was on a voluntary
basis and the administration was supervised and monitored by a trained enumerator; immediately,
the questionnaires were retrieved. SPSS version 18.0 was used to analyze the data.

SECONDARY DATA:
The secondary data utilized in this study were taken from journals and articles, website materials,
government portal and reference books where they provided the much needed data for the conduct of
the study.

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RESULTS AND ANALYSIS

POPULATION
The study considered the 451 students under the College of Business taking Bachelor of Science in
Business Administration, Bachelor of Science in Accounting Technology and Bachelor of Science in
Accountancy. Only students from Year Level I to Year Level IV were considered as the Year Level
V of the BSA Program were not available.

RESPONDENTS PROFILE
There were 376 valid returned questionnaires that were used for analysis in the study out of the 400
questionnaires that were administered; with a 94% returned rate. The female outnumbered the male
respondents from 270 to 106, female to male ratio of 71.8 % against 28.2 %. (Figure 1.) The
respondents were comprised of 89 (23.67 %) students from First Year, 97 or 25.8 % Second year
students, 91 or 24.47 % Third Year students, and 99 or 26.32 % Fourth Year students.
Students of BSBA dominated the number or respondents, of which numbered to 259 or 68.88 % of
the total respondents. The respondents under the BSA Program accounted to 55 or 14.63 %. On the
other hand, 62 or 16.49 % of the respondents were reported to be taking BSAT

Reliability Analysis of key variables Using Cronbach Alpha


S. No. Key Variable Alpha Coefficient
1 Entrepreneurial Inclination .971
2 Image of Entrepreneurship .962
3 Role Models .976
4 Promotion of Entrepreneurship in the College .981
5 Entrepreneurial Curriculum and Content .986
6 Personal Independent Learning Approach .973
7 Entrepreneurship Internship Programs .983

The reliability scale of the data set gathered, were highly reliable using Cronbach Alpha where the
image of entrepreneurship shows the lowest at 0.962 and entrepreneurial curriculum content
registered a high reliability of 0.986. This shows that the variables used for correlation analysis are
reliable.

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RESULTS
S. No Main Variables and questions Mean Std. Dev.
Entrepreneurial Inclination
1 Seriously considered entrepreneurship as a highly
4.1090 .63357
desirable character option
2 Never thought of entrepreneurship as a career
3.1303 1.05655
choice
3 Have the planning for opening a new venture 3.8564 .89479
4 Wont start a business because it is too risky and I
2.6303 1.09009
am afraid of failing
5 Would like someday to start my own business 4.5213 .61499
6 Could easily pursue a career involving self-
4.1064 .71133
employment
7 If pursue a career involving self-employment, the
3.2181 .90350
chances of failure would be very high
8 Prefer to work in a bigger organization rather than
3.9973 .81158
a small firm

It found out that on entrepreneurial inclination, students like to start their own business someday has
the highest mean (X =4.5213), while the lowest mean (X =2.6303) was posted, wont start a
business because it is too risky and I am afraid of failing, which shows that respondents are risk taker
enough to venture in business undertaking; it is also the same variable that it shows a higher standard
deviation ( = 1.09009).

Image of Entrepreneurship Mean Std. Dev.


1 Entrepreneurship is about job creation 4.5798 .76526
Entrepreneurship is an honorable profession and I
2 4.4548 .69519
respect people who are entrepreneurs
Admire those who succeed in running their own
3 4.5878 .76438
business
All the three variables posted a high mean of which the respondents admire personality that succeeded
in their business (x = 4.5878). The highest standard deviation is about the perception that
entrepreneurship is about job creation ( = .76526).

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Role Models Mean Std. Dev.


Care what my closest friends think about my employment
1 3.7181 .87957
decision
Believe what my closest friends think I should become self
2 3.5213 .85452
employed
3 Care what lecturers think about my employment decision 3.6569 .93914
4 Interested in business because my friends are in business 3.2314 1.08918
5 Friends are the main source of business related information 3.7154 .96961
6 Lecturers are the main source of business related information 3.9628 .79243
Lecturers emerged as the highest mean for role models in generating business information (x =
3.9628) while friends serve as a role model since they are in business, has the highest standard
deviation of 1.08918.
Colleges Role to Promote Entrepreneurship Mean Std. Dev.
College is an ideal place to learn about starting a
1 4.6596 .70508
business
More entrepreneurship and educational programs on
2 4.5293 .68834
campus would help students to start businesses
Entrepreneurial or business related examples are
3 4.4548 .79872
included in classroom teaching
Students are encouraged to pursue entrepreneurship
4 4.0665 .81541
ventures in the College
The College infrastructure and policies discourage
5 3.2633 1.08681
entrepreneurship
Get to meet lots of people with good ideas for new
6 4.3910 .72209
businesses
People are actively encouraged to pursue their own
7 4.3271 .76379
business ideas
My college course prepares people well for an
8 4.1809 .64436
entrepreneurial career
There are no student clubs on campus, which promote
9 3.1968 1.01382
entrepreneurship
The College has infrastructure in place to support the
10 3.7846 .80590
start up of new businesses

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A creative college environment inspires me to develop


11 3.8936 .63612
ideas for new businesses
Entrepreneurial activities are limited only to business
12 3.3112 .97788
students
Entrepreneurship courses should be made compulsory
13 in order to stimulate the entrepreneurial spirit in 3.8670 .85378
campus
The college provides resources to assist student
14 3.9362 .76327
entrepreneurs
College is an ideal place to learn about starting a business posted the highest mean with 4.6596 which
means that more students believe that the college is the best place to learn business while the college
infrastructure and policies registered the wider dispersion of 1.08681 (standard deviation). The range
is wider on the perception regarding infrastructure and policies.
Entrepreneurial Curriculum and Content Mean Std. Dev.
The lecturers are experienced and competent course
1 4.0426 .77858
presenters
As a result of taking this course, have better
2 4.3910 .67632
understanding about business
The lecturer did a good job of making this course
3 4.2394 .69753
relevant to the real world
The course developed entrepreneurial knowledge
4 4.4122 .71012
and skills
The lecturer did stimulate interest in
5 4.1090 .86492
entrepreneurship through the course(s)
Interest towards entrepreneurship has been raised
6 4.1303 .87425
after taking the course(s)
The course(s) provided a new and different
7 4.1516 .80723
experience
The course(s) taught to deal with ambiguity in the
8 4.1117 .78877
real world
The course(s) provided an opportunity to learn by
9 4.2207 .83055
doing

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Based on the curriculum and content, respondents believe that taking entrepreneurship course helps
understand business where mean posted at 4.3910 whereas, interest generated on entrepreneurship
had received the highest standard deviation of .86492; range of dispersion is wider

Personal Independent Learning Approach Mean Std. Dev.


Do not enjoy the course(s) that require a
1 3.0346 1.08142
student to deal with ambiguity
The course(s) exposed to situations with
2 3.4096 .87167
uncertain outcomes
Do not enjoy courses that require a student to
3 3.1729 1.14980
learn by doing
The course(s) provided the opportunity to do
4 things without conforming to formal class 3.7181 1.05593
structures
Prefer the rote learning approach to any other
5 3.6064 .87292
learning approach
The learning approach generally shows lesser mean over-all with more students stating that they dont
enjoy the course due to ambiguity (mean= 3.0346) and standard deviation was observed on the item
that where students requires learning by doing ( = .76526).
Entrepreneurial Internship Programs = Mean Std. Dev.
Feel confident about tackling unfamiliar work
1 3.7686 .83725
based problems
Help to develop the ability to plan and organize my
2 4.0399 .86163
day to day work
3 Help to develop my job-related skills 3.9601 .77357
4 Provides me with a lot of new business ideas 3.9468 .90471
5 Did not learn much from it 2.7766 1.15612
6 Help to develop my problem-solving skills 4.0479 .72137
Had lots of real business experiences that are not
7 3.6782 .90636
found in the classroom
8 Was used as cheap labor 3.3378 1.08333
9 Develop my communication skills 4.2793 .71866
10 Did not increase my practical business knowledge 3.0399 1.19600

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Most of the respondents claim that they develop communication skills through an internship program
geared towards entrepreneurship with a mean of 4.2793 and respond concerning practical business
knowledge reflected a wider range of response with a standard deviation of 1.19600.

Of all the factors listed it shows that college is an ideal place to learn business followed closely by
the images of entrepreneurship as the main motivations for students to engage in entrepreneurship.

The students perceived that they dont have sufficient practical business knowledge.

OVERALL SUMMARY

Key Variable Highest Mean

Entrepreneurial Inclination Would like someday to start my own business

Image of Entrepreneurship Admire those who succeed in running their own business

Role Models Lecturers are the main source of business related information

Promotion of Entrepreneurship
College is an ideal place to learn about starting a business
in the College
The course developed entrepreneurial knowledge and skills.
Entrepreneurial Curriculum and
AND, As a result of taking this course, have better understanding
Content
about the business.
Personal Independent Learning The course(s) provided the opportunity to do things without
Approach conforming to formal class structures
Entrepreneurship Internship
Develop my communication skills
Programs

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CORRELATION ANALYSIS
Key Variable Significant Correlations
Seriously considered entrepreneurship as a highly desirable
Entrepreneurial Inclination
character option and Could easily pursue a career involving
(.915)
self-employment
Entrepreneurship is about job creation and Admire those who
Image of Entrepreneurship (.970)
succeed in running their own business
Care what my closest friends think about my employment
Role Models
decision and Care what lecturers think about my employment
(.938)
decision
The College infrastructure and policies discourage
entrepreneurship/There are no student clubs on campus which
Promotion of Entrepreneurship in promote entrepreneurship
the College (.957) Entrepreneurship courses should be made compulsory in order
to stimulate the entrepreneurial spirit in campus/The college
provides resources to assist student entrepreneurs
Entrepreneurial Curriculum and The lecturer did stimulate interest in entrepreneurship through
Content the course(s) and Interest towards entrepreneurship has been
(.986) raised after taking the course(s)
Personal Independent Learning Do not enjoy the course(s) that require a student to deal with
Approach ambiguity and Do not enjoy courses that require a student to
(.937) learn by doing
Feel confident about tackling unfamiliar work based problems/
Entrepreneurship Internship
Did not increase my practical business knowledge
Programs
Help to develop the ability to plan and organize my day to day
(.944)
work/ Provides me with a lot of new business ideas

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DISCUSSIONS
The purpose of the study was to investigate the university students inclination towards
entrepreneurship among COB students. The researcher hypothesized those different variables that
play significant role or impact towards entrepreneurial inclination. In addition, the researcher posited
a relationship between entrepreneurship education and entrepreneurial inclination, entrepreneurship
inclination and demographic and family business background variables. In general, the results of the
analysis provide empirical supports for the position played by the university in promoting
entrepreneurship (Edwards and Muir 2005; Postigo, Iacobucci et al. 2006; Nurmi and Paasio 2007).
It is positively correlated to entrepreneurial inclination. This relationship may be attributable to the
increasing demand from students to seek for quality education from educational institutions that
could equip them with the entrepreneurial competencies in preparing them for future careers.
Moreover, the findings support that higher education institution promotes the shaping
entrepreneurial cultures among students while they are studying. In this regards; the Higher
Education Institutions (HEI) need to create an environment that fosters and encourages the culture
of entrepreneurship.

CONCLUSION
The exposure to entrepreneurial courses, influence students inclination towards entrepreneurship.
The findings stressed the college role in promoting the importance of self-employment. The College
helps in shaping entrepreneurial culture among students
Colleges or HEI should create an entrepreneurial environment in an effort to foster entrepreneurship
among students. The institution should integrate entrepreneurship in the teaching-learning process.
A well-designed curriculum will align the students demands and the industrys expectation. The
exposure to entrepreneurial courses would enable students inclination towards entrepreneurship.
This research undertaking promotes that HEIs positively influence students towards their interest
in entrepreneurship. The HEIs has the vital role in promoting the importance of self-employment
through the study of entrepreneurship. Experiential learning through entrepreneurship encourages
students towards job creation. In this regards, HEIs pedagogical approaches needs to integrate visits
to business endeavors, invite entrepreneurs as guest lecturers to share his/her experience, conduct
various events that trigger interest to students.

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RECOMMENDATIONS
The development of the course delivery or syllabi for entrepreneurship should be shifted from lecture
to experiential learning. It is further recommended that the course materials and content should be
customized to the prevailing business environment. The pedagogical approaches adopted in
conducting entrepreneurship should be competency based and focus on student centered learning
approach. The enabling elements and dimensions; i.e., value orientation needed for entrepreneurship
must be integrated in every department course syllabus. Moreover, the College of Business must
promote the importance of entrepreneurship to the students linking to the expected graduate attributes,
program educational objectives, course learning outcomes, and the student learning outcomes.

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