The Factors Determining The Entrepreneurial Intention Among It Professionals In Sri Lanka

Abstract

This research aims to determine whether the disruption to the professional career and the opportunity cost of current and foregone future earnings, play a significant role in the decision of a Sri Lankan IT professional to enter full-time entrepreneurship. Iyigun & Owen (1999) asserted that entrepreneurs drive the innovation and technology boundaries of a nation while professionals shoulder the implementation of such innovations to deliver economic benefit. While both forms of contributions are equally important to an economy, the Sri Lankan IT industry doesn’t appear to be churning out entrepreneurs in either the sufficient quantity or the quality. The high returns to professional human capital enjoyed by the said individuals, does explain this lack of entrepreneurial intent. However, unlike Hurst & Lusardi (2004) observed, the intent does not significantly differ with wealth accumulation among the Sri Lankan IT professionals. Through a quantitative study conducted using a sample of 92 Sri Lankan IT professionals, at a 95% level of confidence, this research finds neither the professional human capital nor the financial wealth, taken in isolation, to be significant predictors of the entrepreneurial intent among the Sri Lankan IT workforce. The study, however, finds that the two factors are significantly inter-correlated and net effect of the two factors can significantly influence the entrepreneurial intent of the said workforce. Further study is recommended in establishing as to why the IT products and services market is perceived as unfavourable by the Sri Lankan IT workforce. Findings of this research bridge the gap between past research examining influence of wealth and professional human capital on the professionals’ entrepreneurial intent. The research makes further contributions to entrepreneurship research with the identified deterrent to the said intent.