“Determinants of Entrepreneurial Intentions among Young Graduates In Case Of Ambo Town Administration"

Abstract

This study investigates the determinants of entrepreneurial intention among young graduates in Ambo Town Administration, Ethiopia. Recognizing entrepreneurship as a critical driver for addressing youth unemployment and fostering economic growth, the research employs a quantitative approach, utilizing a structured questionnaire distributed to 166 diploma and degree graduates. The study is grounded in the Theory of Planned Behavior (TPB) and examines the influence of three key predictor variables: demographic factors, environmental factors, and individual factors on the dependent variable, entrepreneurial intention. The analysis, conducted using descriptive and inferential statistics (including correlation and multiple regression), revealed an exceptionally powerful and statistically significant predictive model. The joint impact of demographic, environmental, and individual variables accounted for an impressive 86.2% (R² = .862) of the variance in entrepreneurial intentions. Within these, environmental factors—more specifically, political and economic stability, market opportunity, and network support—were the most powerful single predictor among unique variables. Although all three categories of variables had very strong single correlations with intention, the research also detected very severe multicollinearity, reflecting their very interlinked role in reality. The research finds that entrepreneurial intention is not influenced by one factor but by a multifaceted synergy of personal traits, external setting, and demographic status. One of the most important findings is that these strong intentions endure even in a sample that is predominantly made up of "first-generation" prospective entrepreneurs with no family business tradition. The research recommends a multifaceted strategy for policymakers, educational institutions, and business associations, emphasizing the need to build a supportive ecosystem, integrate practical entrepreneurship education, and provide targeted financial and mentorship support to translate high entrepreneurial aspirations into sustainable business ventures.