Answer to Question #233437 in Economics for shiv

Question

The Ministry of Education wants to know whether entrepreneurial education affects

students’ decision to start a business rather than seeking for employment.

(a) Construct a research question based on the scope.

(b) Develop a suitable economic model with at least three independent variables.

(c) Based on (b), define how you measure the variables and construct an econometric

model which contains an error term or disturbance.

(d) Give reasons as to why the random error exists.

(e) If data is non-parametric, what technique or test will you consider?

Answer 1

One of the factors influencing the formation of the desire to become an entrepreneur is the attitude towards entrepreneurship. Students who have developed a positive image of entrepreneurship throughout their lives are more willing to organize their own business. The image is formed from successful examples of similar actions that we encounter in life. In order to achieve success, we try repeat these actions, bring them into your life.

When studying the influence of family ties on confidence in plans for organizing a business, the result showed that the attitude of close relatives of the respondent to entrepreneurship is an incentive to create a business by the respondent himself. The main motive for engaging in entrepreneurial activity is the opportunity to improve their personal financial situation or ensure the prosperity of their family. 66% of respondents noted the importance of this factor. In addition, significant motives for engaging in entrepreneurship are: the need to fulfill life goals (53.5%), the desire to work in an interesting job (48%), the need for

self-realization (42.5%).

Having considered the self-assessment of students of their entrepreneurship opportunities, namely, the assessment of the availability of knowledge and skills, we found that the majority of students do not have the knowledge and skills to start their own business. According to experts - lack of knowledge and skills is the main reason for failure in the first stage of building a business.