Factors Affecting Green Entrepreneurship Intentions During the COVID-19 Pandemic: An Empirical Study in Vietnam

Abstract

At present, environmental problems are gradually becoming quite serious because of the expansion of the business scale of companies, factories, and enterprises, and that is also the reason for the global pollution of the world. Green entrepreneurship is playing an increasingly crucial role in influencing people's intentions, behaviors, and attitudes toward environmental protection through sustainable development. The purpose of this research was to examine the factors affecting university students' green entrepreneurship levels in Vietnam. To do this, we performed a scientific research survey with 773 students from reputable universities in Vietnam, 337 of whom are male and 436 of whom are female. To assess the reliability and correlation between observed and total variables, this study employs scale testing methods such as Cronbach alpha, EFA, CFA, and SEM. After evaluating the influencing elements, the findings reveal that the Subjective norm factor and the Risk-aversion component are two distinct aspects that influence university students' green entrepreneurship intentions in Vietnam and of which, the greatest influence is Risk Aversion. Furthermore, the findings revealed that the level of interest in green entrepreneurship is mostly seen by students with university education between the ages of 18-25.

1. Introduction

Today, the outstanding development of industries has contributed to opening a new era for the world economy. However, some articles claim that the living environment of several countries throughout the world, particularly the United Kingdom and its neighbors, is being seriously harmed by levels of air pollution, water pollution, coastal areas, and sea areas, and that these areas must be preserved (Khan et al., 2020). According to research, 50 of the world’s 500 largest corporations have discharged a total of 3.6 billion tonnes of emissions into the atmosphere, directly harming the global greenhouse effect (Hardiyansah et al., 2021).

Many articles and research papers have been published recently on the effects of the natural environment crisis, such as climate change, air pollution, water pollution, rubbish, waste, and so on. According to certain research, the greenhouse effect and global warming caused by human civilization development activities have had a wide range of effects on the density of the earth’s weather (Ramayah et al., 2019). Individuals who cause harm to the ecosystem should be restrained, according to ecological theory (Nordin, 2020). As a result, environmental issue has received and continues to receive the greatest attention, prompting the world’s economic human resources to progressively shift to the form of “Green business.”

An entrepreneur that engages in “Green Business” deals in good and environmentally friendly products and items with the goal of protecting our living environment while also contributing to the country’s economic stability. Because environmental protection is such a pressing issue at the moment, businesspeople’s “green business” spirit is being touted as a panacea for all environmental and social woes. When it comes to green business, it’s impossible to overlook green startups; their role and nature are critical (Schröder & Schmitt-Rodermund, 2006). It is critical in answering questions and providing reasonable solutions to support the economy while also protecting the environment. Not only does entrepreneurship play an important role in bringing positive values to the world economy in general and boosting the economies of their countries, but we cannot deny that entrepreneurship plays an important role in bringing positive values to the world economy in general and boosting the economies of their countries.

The COVID-19 epidemic and its accompanying economic crises provide enormous problems, posing several unknowns and forcing painful trade-offs (Selvi & Veilatchi, 2021). It is unavoidable for start-ups and entrepreneurs to be influenced and to experience anxiety and dissatisfaction with their businesses. People must become more active in environmental protection to avoid future disease problems because entrepreneurship is always an important part, an indispensable element in entrepreneurship, which plays an important and pivotal role in influencing the development of the world economy and society today.

Young people and students have many ideas and projects for the “green economy, ” according to the forum “Youth start-ups with a green economy, ” but implementation and development were still problematic owing to a lack of knowledge, financial assistance, processes, and policies, among other things. As a result, the goal of this research is to determine the level of green entrepreneurship awareness among Vietnamese university students. The research article offers suggestions for assisting students in developing green entrepreneurial intents to promote sustainable development and future green business development.

2. Literature Review

2.1. Attitude towards Green Entrepreneurship Intention

A green economy and sustainable development can only be realized by encouraging a rationalization of a fundamental shift in people’s thinking and attitudes in society, resulting in deep shifts in perceptions about “green” action, particularly in the university setting. People can conduct the behavior whenever they are willing to do so, according to the Theory of Reasoned Action (Fishbein & Ajzen, 1975). When people come into contact with an object, they have a specific mindset. They usually accept or reject an object based on their judgment of the entity.

Green business attitudes are more likely to react depending on the likes or dislikes of green entrepreneurship (Soomro et al., 2020), demonstrating respect for company methods through presence or absence. The degree to which an individual has a negative or positive ability to become an entrepreneur is referred to as an entrepreneurial attitude. It also predicts a person’s entrepreneurship and future movements, as well as self-employment and self-confidence. Entrepreneurship education is believed to play a role in building a mindset that is suitable for beginning new businesses, as it fosters a positive business mindset, assists individuals in maintaining an interest in entrepreneurship, and promotes self-employment (Schröder & Schmitt- Rodermund, 2006).

Souitaris et al. (2007) also pointed out that educational programs can help aspiring entrepreneurs acquire entrepreneurial attitudes and intentions through inspiration and learning. Researchers discovered a good and significant link between entrepreneurial mindsets and creativity among Iranian students. Soomro et al. (2020) found that students exhibit a lack of confidence when confronted with a startup and the dangers it entails and that this trend starts when they become an entrepreneur. Green Entrepreneurial, on the other hand, is a fantastic option, but it comes with its own set of challenges.

H1: Attitude has an impact on green entrepreneurship intentions.

2.2. Educational Supports Towards Green Entrepreneurship Intention

Perceived educational support Entrepreneurship education was pioneered by universities in the United States of America. New studies have shown that green startup intentions (Green Business) are now being strongly supported by the world economy through the values of green industry in terms of protecting the environment and ecosystem. According to Saeed et al. (2015), the problem of startup business support at universities has a significant impact on students’ business success. As a result, universities are now actively encouraging startup concepts connected to the degree of environmental protection.

Green entrepreneurship (GEB) should be included in every university’s educational support category. The creation of a university environment that fosters green business would create outcomes such as the provision of business skills and knowledge, as well as the empowerment of graduate firms (Qazi et al., 2020). Students’ self-employment and green business intentions can be made more conscious if they have a better understanding of the value and benefits of green enterprises. Furthermore, the green business goals that colleges instill in students have had a good impact on GEB and university support for GEB. Universities will play a critical role in transforming a GEI into a GEB. The group will analyze particularly, in-depth understanding of the university’s assistance level to support students in business knowledge, based on the group’s analysis theory.

H2: Educational support has an impact on green entrepreneurship intentions.

2.3. Subjective Norms Towards Green Entrepreneurship Intention

Subjective norms can be developed through perceived normative ideas from people or social circumstances that impact entrepreneurs, according to TRA theory (Fishbein & Ajzen, 1975). (family, friends, colleagues, media, etc.). Subjective norms are the perception of others who believe the individual should or should not execute the activity. Individuals’ perceptions of societal pressures to perform or not execute a behavior are referred to as subjective norms. Subjective norms are influenced by the social environment; for example, when there are previous family business experiences, perceived desired aptitude projects, and the feasibility of beginning their own firm, subjective norms will be positive. Individual autonomy and attitudes toward self-employment are also anticipated to improve after early childhood exposure to difficult business conditions (Hussain et al., 2021).

According to Utami (2017), one of the variables fueling the growth of an individual’s entrepreneurial ambitions is the subjective norm variable, which gives impact to the intention of variable student entrepreneurship. According to Aditya (2020), the findings of this study show that the environment or societal norms that encourage students to be entrepreneurs have an impact on their entrepreneurial inclinations. Subjective norms are “normative beliefs about entrepreneurship as a professional choice that is likely to drive conformity to these normative beliefs.” Subjective norms were found to be a favorable predictor of entrepreneurial intention (Noor et al., 2021).

At the same time, it has been suggested that the direct experience of a business venture or starting a new business affects attitudes and perceptions about entrepreneurship and career.

H3: Subjective norm has an impact on green entrepreneurship intentions.

2.4. Self-efficacy Towards Green Entrepreneurship Intention

According to previous studies based on the theories, such as TPB. The higher a person’s level of business performance, the stronger his or her business intentions. There is a strong link between university students’ overall performance and their desire to start a business. When compared to other types of start-ups, green start-ups have numerous problems, especially because it is still a relatively new term for Vietnamese students (Hamböck et al., 2017). However, attracting investment and green technology innovation is gradually becoming a trend. Self-efficacy refers to an individual’s belief in his or her capacity to execute behaviors necessary to produce specific performance attainments. Self-efficacy reflects confidence in the ability to exert control over one’s motivation, behavior, and social environment. Self-efficacy is a psychological construct that aids in the development of confidence in one’s ability to perform tasks, master one’s thinking and wisdom, and make judgments that affect business processes. Because it incorporates self-motivation and discrepancy perception as opposing motivating processes, self-efficacy variability energizes action (Gielnik et al., 2019).

Through previous studies and observations that show a significant correlation between self-efficacy and new green businesses, it is shown that self-efficacy has a significant impact on green entrepreneurship intention.

H4: Self-efficacy has an impact on green entrepreneurship intentions.

2.5. Risk-Aversion Towards Green Entrepreneurship Intention

Risk aversion is a vital concept in the investment selection research process since it affects the majority of investors in the market. Because each investor is an individual with their own mentality and wealth, their risk tolerance is also extremely variable. Entrepreneurs reporting a stronger readiness to take business risks than non-entrepreneurs enhanced their desire to take business risks when they developed more positive and vivid mental images of risk consequences, according to Zaleskiewicz et al. (2020). Entrepreneurship, according to Oliver and Velji (2018), necessitates a mindset that can envision the future and is willing to take a big risk to turn an idea into reality. College students have dreams and wish to become entrepreneurs in the future, according to reality. However, because of their overwhelming personal difficulties, they believe their goal to be an entrepreneur unachievable, and this becomes a barrier to their interest in entrepreneurship. Some university students are afraid of losing their assets or resources if they pursue commercial initiatives (Mahola et al., 2019).

If becoming an entrepreneur is a riskier profession than working for a firm as a paid employee, and various people have varying levels of risk aversion, those who are most risk-averse are more likely to become entrepreneurs. The findings show that all of the study’s indicators are statistically significant in predicting investors’ investment intentions, with risk aversion being the most powerful predictor (Sarwar et al., 2020 ). Entrepreneurial intentions are severely harmed by risk aversion (Aderibigbe et al., 2019).

H5: Risk-aversion has an impact on green entrepreneurship intentions.

2.6. Need for Achievement

Intentions are described by behavioral attitudes, subjective standards, and perceived behavioral control, according to the Planned Behaviour Theory (PBT). Individuals with a strong desire to succeed are driven to produce achievements that help them attain their objectives (Fairlie, & Holleran, 2012). To be able to set goals and make risky decisions, an entrepreneur must have a strong incentive to attain great performance (requiring achievement) through high responsibility, multi-tasking duties, obstacles, and risks in the company. Performance demands reflect a person’s desire for high objectives and goals, as well as mastery of knowledge, and necessitate strong focus to reach high performance. One of the psychological factors that encourage entrepreneurs to have entrepreneurial ambitions is the desire to succeed (Amankwah & Sesen, 2021). People who have a high level of confidence in themselves will be motivated to attempt new things and always want to develop to reach their objectives. People with a high need for achievement often exhibit confidence, optimism, a willingness to tackle obstacles, take chances, leadership, and a vision of the future. The desire to succeed has a big impact on the desire to start a green business (Farahbod et al., 2013).

H6: The need for achievement has an impact on green entrepreneurship intentions

The conceptual framework of this research is depicted in Figure 1 and Table 1.

Figure 1: Theoretical Frameworks of Green Entrepreneurship Intention

Table 1: Scale of Components

3. Research Methods

3.1. Research Design

The purpose of the study was to determine green entrepreneurial intention, green corporate behavior, and the extent to which the university environment influences green entrepreneurship among Vietnamese university students. The group will distribute the research to Vietnam’s major cities and capitals. Based on Figure 1’s theoretical model. Green Entrepreneurship Intention is the dependent variable, and there are six independent variables in this study: (1) Attitude, (2) Educational support, (3) Subjective norm, (4) Self effectiveness, (5) Risk-Aversion, (6) Need for achievement. The independent variable parts will be studied and designed in the form of questions to survey and collect data in the most correct way based on the 5-point Likert scale, from (1) Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree, (5) Strongly Agree. The fact that we choose the 5-point Likert scale is because the Likert scale is widely applied in social and educational research (Joshi et al., 2015), the Likert scale is used as an effective tool that can assess and measure psychology, attitudes, and opinions of the responses in the most detailed and accurate way.

We chose the survey method after performing research and designing questions, and we used Google Forms as a tool to build online and useable Google survey surveys, which we then sent to respondents. Google Forms is a Google tool that is ideal for collecting data in social science research since it is simple to use, has no pressure, and allows respondents to cooperate to collect the most accurate, trustworthy, and legitimate responses for data analysis.

3.2. Data Collection

A survey table is a tool used in scientific research to collect information to meet the stated research objectives. It states that collecting research data is critical in a scientific study; stages such as defining the research area, selecting respondents who fit the requirements, research objectives, and analyzing and selecting survey questions are all required.

The primary data was gathered using a Google Form and a questionnaire. The group will send messages to the respondents after selecting the cities that match the requirements for the survey in Vietnam. We received 773 responses in one month, all of which were deemed eligible for data analysis and investigation. The collected data will be divided into a demographic survey, environmental awareness survey, and questions about independent factors such as attitude, educational support, subjective norm, self-efficacy, risk aversion, and the need for achievement.

3.3. Methods of Data Analysis

In our study, we employed a survey to gather information from respondents, and we conducted the research using the quantitative research approach. Research subjects will be measured by data collection and analysis findings from the respondents’ data, and the response data from the respondents will be transformed into specific metrics for evaluation.

Following the collection of the above-mentioned data, we began analyzing the data using SPSS and AMOS software. Cronbach’s alpha reliability analysis is a straightforward approach to determine whether or not the collected value is dependable. Exploratory factor analysis (EFA) examines the relationship between variables across all factors to identify variables with factor differences right away. CFA can help us bridge the gap between hypothesis and observation; it usually produces more accurate and exact answers than EFA, correlation, and regression, and it can also analyze convergence and discriminate variable structures. Finally, structural equation modeling (SEM) is a commonly used model in domains such as psychology and sociology.

To assess the relationship, the SEM model integrates all of the approaches such as multivariate regression, factor analysis, and relationship analysis. Cause-and-effect correlations between latent concepts can be estimated using complexity and SEM models.

4. Results

4.1. Profile of Respondents

Table 2 shows the demographic profiles of survey respondents. The results show that 43.6% of the surveyed people are males and 56.4% of the surveyed people are females. In which, 91.3% of respondents are aged between 18–23 years old, 7.8% of respondents are aged 24–29 years old. Accordingly, 95.1% of people are studying in university and 4.1% of people are studying in college. In addition, the results show that 33.4% showed that their income is under 3 million, 31.2% of surveyed people answered that their income is from 3–5 million a month and 23.4% has an income of 5–10 million a month and 12% answered that more than 10 million a month. The survey sample shows that the educational level of the survey participants accounts for more than 90% of the students, the inferences about the survey participants are reasonable and the results are completely reliable.

Table 2: Profile of Respondents

4.2. Reliability Test

To test the reliability of the equivalence scale affecting the green entrepreneurship intention in university students in the COVID-19 pandemic in Viet Nam, Cronbach’s alpha reliability coefficient was calculated and the results are shown in Table 3. The correlation of the observed variables to the total variable includes Attitude (AT); Educational supports (ES); Subjective norms (SN); Self-efficacy (SE); Risk - Aversion (RA); Need for achievement (NA). The results of the scale reliability test show that Cronbach’s Alpha coefficient ranging from 0.830 to 0.648 is all more than 0.6, showing that the relationship of the observed variable with the total variable is reliable. The Corrected item-total Correlation of all variables is greater than 0.3, except that the variable AT1 has The Corrected item-total Correlation is 0.174 less than 0.3 so the variable AT will be removed.

Table 3: Cronbach’s Alpha

In which, the Cronbach’s Alpha coefficient highest is Subjective norms (0.830) and the lowest is Educational supports (0.648). All variables have standard Cronbach’s Alpha coefficients, so except the AT1 variable, all the remaining variables will be kept for analysis in the next section.

4.3. Exploratory Factor Analysis (EFA)

The results of factor analysis show that the KMO index is 0.861 > 0.5, which proves that the data used for factor analysis is completely appropriate. Barlett’s test result is 4.939 with a Sig level. = 0.000 < 0.05, this time rejecting hypothesis H0: observed variables are not correlated with each other in the population. Thus the variables are correlated with each other and satisfy the factor analysis conditions. Perform factor analysis according to Principal components with Varimax rotation. The results show that the original 18 observed variables are grouped into 5 groups. The total value of variance extracted = 63.917% > 50%: satisfactory; then it can be said that these 5 factors explain 63.917% of the variability of the data. The Eigenvalues of the factors are all high (>1), the 5 factor has the lowest Eigenvalues is 1.122 > 1.

4.4. Confirmatory Factor Analysis (CFA)

According to Hu and Bentler (1999), Confirmatory factor analysis (CFA) was used to determine the measurement model fit by using SPSS and AMOS. Variables SN₁, SN₂, RA1, NA5, NA1, and NA3 were removed from the model because Sig of variable < 0.5 and unconformity variable or variable has no significance. Four indices were utilized, and the results are shown in Table 4. These indicators are enough for evaluating the measurement model. The findings demonstrate a satisfactory match between the measurement model and the data. This is necessary for further investigation of connections between latent constructs. The average variance extracted (AVE) values of Subjective norms (SN), Risk - Aversion (RA), Self-efficacy (SE), Attitude (AT) were 0.507, 0.530, 0.500, 0.543 respectively. The latent variable would have convergent validity if the AVE values were not significantly less than 0.5. The AVE scores indicate significant Convergent validity. Indicator reliability (Cronbach’s alpha) and internal consistency (CR) values of Subjective norms (SN), Risk - Aversion (RA), Self-efficacy (SE), Attitude (AT) were 0.755, 0.771, 0796, 0.703 greater than the threshold of 0.7 indicate that the scales are reliable.

Table 4: CFA Measurement Model Fit Indices

4.5. Structural Equation Modeling (SEM)

In general, the models presented by SEM often provide a wide range of relationships regarding the independent and dependent variables. Once identified and evaluated, we confirm or reject the hypothesis based on statistical data (Figure 2 and Table 5).

Figure 2: Direct and Indirect Effects on Green Entrepreneurship Intention

Notes: CMIN/DF = 4.410, GFI = 0.939, CFI = 0.926, RMSEA = 0.066 and TLI = 0.904. ***p < 0.001

Table 5: Results of the Integrating Mode

Note: ***, p-value < 0.001. Significant at the 0.05 level.

The Chi-square (χ²/df) value is 4.410, less than 5: the value of the Goodness of Fit Index (GFI) is 0.939 and the Comparative Fit Index (CFI) value is 0.926, greater than 0.9 and the final value is the Root Mean Square Error of Approximation (RMSEA) is 0.066, less than 0.08. The model shows good fitness and all scales are acceptable (Hu & Bentler, 1999).

The results of SEM analysis show that Sig of RA, SN is *** (AMOS symbol *** is sig equivalent to 0.000). Variable AT has a Sig coefficient of 0.009 > 0.005 and variable SE has a Sig coefficient of 0.525 > 0.005. Finally, the analysis results show that the effects of two independent variables SN, RA have a strong influence on the dependent variable GEI.

The results of the Standardized regression coefficients confirm that Risk-aversion (RA) has an Estimate is 0.365 it means that the factor has the strongest impact on green entrepreneurship intentions, followed by Subjective norm (SN) has an Estimate is 0.305. The SMC (Squared Multiple Correlations) coefficient of GEI is 0.394 showing that the independent factors in the model explain 39.4%, so the independent variables affect 39.4% of the variation in GEI.

5. Discussion and Recommendation

After that, we use SEM to examine survey data from Vietnamese students to see what factors influence their green entrepreneurship intentions during the Covid 19 pandemic. Solve the problem by incorporating them into a model that examines and evaluates the dynamic influence of elements such as Attitude, Educational Supports, Subjective Norms, Self-efficacy, Risk-Aversion, and Need for Achievements on GEI green entrepreneurial intention. We eliminated four characteristics as a consequence of the data analysis: Attitude, Educational support, Need for Achievement, and Self-efficacy. The GEI dependent variable will be affected by all of the independent variables. Subjective norms (SN) and risk-version (RA) are preserved as two variables that affect GEI. The metabolic regression coefficient reveals that the variable RA has the greatest impact.on GEI. The GEI’s SMC coefficient of 39.4% shows that the independent variables in the model affect 39.4% of the variability of GEI.

According to the survey data from the study, we see that the majority of students aged 18–23 (91.3%) and with a university degree (95.1%) are interested in green start- ups. We discovered that risk aversion has the largest impact on students’ inclinations to become green entrepreneurs. Entrepreneurs who claim to be more eager to take business risks than non-entrepreneurs enhance their readiness to take business risks as they generate more positive mental images and more vividly about the repercussions of risk, according to Zaleskiewicz et al. (2020). Starting a business is both an opportunity and a challenge in the context of the current epidemic. Risks are always associated with opportunities; the greater the profit potential, the greater the risk. Starting a business is both an opportunity and a challenge in the context of the current epidemic. Risks are always associated with opportunities; the greater the profit potential, the greater the risk. For students, taking chances demonstrates their willingness to accept problems and overcome obstacles to become entrepreneurs. We recognize the importance of creating favorable settings for students to effectively showcase their abilities, as well as providing startup resources to help students develop good business concepts. What schools can do is collaborate with start-up companies to establish an atmosphere that aids students in perceiving and learning practical knowledge, as well as allowing students to interact with and observe the corporate world. Is it suitable to start a business? Furthermore, while still a student, it is vital to foster knowledge and enhance abilities, as well as to cultivate the spirit of taking chances to become more stable.

In terms of subjective norms, we cannot dispute that in many circumstances, subjective norms have a role in shaping intention. Subjective norms, on the other hand, appear to become a particularly crucial element when making similar decisions in the setting of Covid-19. Intentions for green entrepreneurship are no exception. When entrepreneurs have a conventional belief in green entrepreneurship as a career choice, or when they receive support from family, friends, coworkers, and communication, they are more likely to consider starting green entrepreneurship. The Subjective norm has the second-highest impact on the GEI dependent variable, according to the findings.

What we need to do is establish conducive conditions for students with a green entrepreneurial spirit to pursue their dreams without fear of being entangled in negative and misleading information flows that stifle green entrepreneurship. Furthermore, the media must promote essential sources of information and updates on environmental challenges and green entrepreneurship. Also, we feel that the government must play an essential role in encouraging green entrepreneurship among students if it establishes standards for students to follow.

6. Conclusion

The goal of this research article is to examine the major elements influencing Vietnamese students’ green entrepreneurship goals during the Covid-19 pandemic. The findings suggest that subjective standards and risk aversion have an impact on Vietnamese students’ green business goals. This demonstrates that individuals are interested in subjective social consent standards, as well as the level of support from family, colleagues, and the media. However, dealing with the issues of the Covid-19 epidemic, which is still not under control, will have a significant impact on the green startup process. Students must thoroughly examine the problem, determine the level of risk, design an operating strategy, and a unique risk management scenario. Survey data is obtained from Vietnamese students, but the sample size is still rather small, so the results will be influenced in some way, as they may not reflect the true situation and will surely contain errors in sample collection. However, the study garnered its own benefits in the end. Despite its limitations, this study will contribute to a more comprehensive understanding of green entrepreneurship among current students. As a result, the country’s student generation is contributing to its economic development. Economists can use the findings of this study to create strategies and targets for maximizing the potential of Vietnamese students’ entrepreneurship and green entrepreneurship.