Does increased access to finance enhance entrepreneurial activity among students? How perceived access to finance affects entrepreneurial intentions

Abstract

This study uses Liñán and Chens entrepreneurial intention model, which is based on the theory of planned behavior. In this study their entrepreneurial intention model is used to measure how perceived access to finance affects the entrepreneurial intentions among Norwegian students. The sample is from a web-based survey and consisted of 162 respondents. The results revealed a positive effect from perceived access to finance on entrepreneurial intentions. When the theory of planned behavior is applied to the results, there is an indication that financial constraints are an obstacle for business start-ups, especially for young people, as youth have less assets and savings available. This does have implications for policy making as it suggests that there is a need for governmental funding directed towards youth to increase entrepreneurship rates.