*5.2.3 Entrepreneurial ecosystem*

A startup ecosystem is a system consisting of direct or indirect, interdependent actors and relationships that support the formation and development of new business projects [36, 37]. According to Babson University, the startup ecosystem includes areas: policy, finance, culture, support, human resources, and markets [38]. The entrepreneurial ecosystem (EC) is a term that refers to the network of factors, organizations, individuals, or institutions that can hinder or motivate individuals to start a new business. The startup ecosystem is the basis of innovation, increasing productivity, creating jobs, and driving the economy. This ecosystem consists of many components

which are classified into eight main areas including human capital, culture, markets, policy, financial capital, support, infrastructure, and services [39].

The pillars belong to formal and informal institutions, which support and promote entrepreneurship [40]. It affects research and development direction, startup policies and infrastructure, training, access to capital, and recruitment. The EC depends on the social context, whether it allows or restricts entrepreneurship [41]. According to Miller and Acs [42], for universities, the startup ecosystem including leadership style, management, educational environment, and entrepreneurial training courses can be effective in promoting students. Potential employees. National macro policies and an effective political environment influence entrepreneurship [43, 44]. The interactions between people and organizations, infrastructure, and other factors create an EC that either enhances or inhibits entrepreneurship. It enables individuals and businesses to generate economic efficiency and prosperity [18]. From the role and importance of the startup ecosystem mentioned above, we propose hypothesis *H3. The EE has a positive impact on ES.*

#### *5.2.4 Perceived behavioral control*

Behavioral control refers to individuals in terms of their ability to perform controlled behavior [45, 46]. Self-efficacy and perceived behavioral control (PC) are two factors that are well-known and used interchangeably [47]. Cruz et al. [48] stated that "behavior control" is essentially self-efficacy, which is an individual's feelings and beliefs about the performance of his or her behavior. Some previous studies have demonstrated that PC affects risk-taking in risky projects [47]. Ruhle et al. [49] and Kadir et al. [50] also found the PC has a great impact on PC and intention. Liñán [51] suggests that personal preferences, PC, and subjective norms influence individuals' decisions to start a business. Research results of [52–54] concluded that PC affects EI. From the above arguments, we propose the hypothesis: *H4. The PC has a positive effect on EI.*

#### *5.2.5 Social valuation*

Social value is an expression of the key importance people place on the changes in their experience. A social valuation (SV) can help everyone change the way he understands and makes decisions to invest his time and money. SV is often considered the basis for implementation to achieve the goals of policymakers. Individuals tend to act within a framework of social judgment [55]. Social assessment is often based on a common scale [56]. Some research results showed that SV was a strong impact on EI. Bygrave and Minniti [57] conclude that entrepreneurial decision depends on SV. Following this line of thinking, research by Hmieleski and Corbett [58] suggests that an individual's EI depends on the SV of the place in which that individual operates. Every individual is influenced by the expectations of family and friends. Individuals' expectations of entrepreneurship are related to social norms [59]. According to [60], SV affects entrepreneurial behavior. In the spirit of entrepreneurship, personal views rooted in society play an important role. Depending on the context, SV can support or hinder EI. Therefore, we make hypothesis *H5. There is a positive relationship between SV and AT; H6. There is a positive relationship between SV and EI.*

#### *5.2.6 Perceived opportunity*

An opportunity is a set of ideas and actions that allow people to create goods or services for profit. It is an attraction from the market through which entrepreneurs can

#### *Entrepreneurship and Factors Affecting Entrepreneurial Decisions DOI: http://dx.doi.org/10.5772/intechopen.110196*

introduce new products, services, or new ways of organizing their businesses to make a profit. Entrepreneurs see a start-up opportunity as the potential to launch a profitable startup business. Entrepreneurship opportunities manifest in many different forms and are influenced by socioeconomic conditions and context. Hence, entrepreneurs need to take a balanced financial and environmental approach when evaluating a startup opportunity. When individuals or start-up groups see an opportunity to start a business, they will promote startups, and organize human resources, goods, and services, to introduce and sell to the market [61]. When faced with a startup opportunity, entrepreneurs are the ones who can make different decisions. Perceptions of opportunities also vary between individuals. Entrepreneurs perceive and pursue economic values differently, so recognizing opportunities influences their behavior. In addition, everyone may interpret startup opportunities differently. In Vietnam, according to GEM (2017/2018), up to 46.4% of survey respondents see a start-up opportunity, ranking 23 out of 54 countries in their research. From the discussion above, we find that opportunity recognition can influence attitudes toward business behavior. The hypothesis is that *H7. There is a positive relationship between PC and AT.*

### *5.2.7 Attitude toward entrepreneurship*

Attitude toward entrepreneurship (AT) reflects the degree of an individual's desire to become an entrepreneur [62, 63]. The difference between the two attitudes is affection feelings or emotions and motivations [64]. Individuals' attitudes influence their EIs [65, 66] a person's beliefs, and attitudes affect their EI [67, 68]. Research findings of Nguyen [69–71] and Doane et al. [52] showed that attitude positively influences behavioral intention. A positive attitude and willingness to take risks will affect their EI [72]. According to Ajzen and Sheikh [72], EI and AT are related. From this argument, the hypothesis proposed is *H8. There is a positive relationship between AT and EI.*

### *5.2.8 Entrepreneurial self-efficacy (ES)*

Entrepreneurial self-efficacy is a term used to describe an entrepreneur's belief in his or her ability to perform tasks and run a business activity or firm [73]. Selfefficacy will depend on each field and each industry toward a certain behavior or result. Entrepreneurial self-efficacy is the factor that affects the recognition of opportunities and the perception of the feasibility of potential entrepreneurs [74]. Entrepreneurs' self-efficacy affects their choice of action and their efforts during action [75]. When self-efficacy is higher, potential entrepreneurs' perception of feasibility is higher. For students, their self-efficacy enhances their EIs [76]. Research results by Nguyen and Nguyen [77] show that ES has a significant positive impact on the student's EI. Entrepreneurial self-efficacy is a key factor affecting entrepreneurship [78, 79]. The ES has a positive effect on the EI of entrepreneurs [80]. It consistently and significantly positively affects the likelihood of becoming an entrepreneur [81]. Based on the previous studies, the hypothesis suggests *H9. There is a positive relationship between ES and ED.*

#### *5.2.9 Entrepreneurial intentions*

EI is the awareness, conviction, and mental state that directs and guides one's attention, experiences, actions, goal setting, commitment, and other types of work to act [82, 83]. The intention to start a firm is not a yes or no decision but it is influenced

by many other factors that lead to the decision to start a business. Entrepreneurship is a dynamic process that occurs over time and involves increasing levels of entrepreneurial involvement [84]. According to Shapero and Sokol [85], EIs include a series of purposeful, cognitive-based decisions. Entrepreneurship intention represents a quantifiable outcome of EE programs, it influences the decision to start a business [47, 86]. Confirm that EI has a positive influence on entrepreneurial decisions [87]. For the nascent entrepreneur, the EI strongly influences entrepreneurial decision [88]. In Vietnam, the results published by GEM [89] show that up to 25.0% of survey respondents intend to start a firm, ranking 19th out of 54 countries in GEM's research.

#### *5.2.10 Entrepreneurial decision*

The entrepreneurial decision is the most important moment in the entrepreneurial process. It helps entrepreneurs achieve success in business ventures. Deciding entrepreneurial decision takes a lot of courage to overcome obstacles. To succeed in business, entrepreneurs need perseverance and persistence. When entrepreneurs identify prospects, they translate their intentions into the decision to start a business. Some studies have confirmed that there are many factors affecting the decision to be entrepreneurial. It is subjective norms, attitude, EE, perceived control behavior, SV, and EI [46, 90]. According to [91, 92], the entrepreneurial decision is to establish an organization with business functions. In this study, the entrepreneurial decision was based on and operated for more than 12 months. Entrepreneurial decisions are either owners or co-owners.

#### **5.3 Results**

#### *5.3.1 Measurement model*

Following the standard procedure for structural equation modeling (SEM) analysis by using partial least squares structural equation modeling (PLS-SEM) software, to test the validity and reliability of variables and measurement items, it is necessary to calculate the full evaluation of the measurement model and structural equation modeling. It is necessary to evaluate the reliability of measurement items. The results show that three unreliability items must be removed from the model. The 37 items and 10 valid variables of the model are analyzed in the next steps.

Model fit test: The model is fit when SRMR < 0.08. The results show that this model exhibits SRMR = 0.039, which conforms to the described criteria below the 0.08 level. So, the overall model had a good fit. Regarding collinearity, we check the VIF values of the items. The results showed that AT1 and AT4 measurement items that have VIF values greater than 5 should be excluded from the model. All other measurement items have VIF values less than 5.0. Therefore, the measurement items are not collinear, and we can continue with other tests.

Reliability and validity: an analysis will be performed by SmartPLS software and test reliability and validity through individual confidence indicators, internal consistency convergent, and AVE. A variable and items achieve internal consistency convergent if its composite reliability (CR) and Cronbach's alpha (CA) are greater than 0.6. The analysis results show that the CR of all the variables ranged from 0.811 to 0.918 and CA ranged from 0.653 to 0.885 (**Table 2**). Thus, all variables and items achieved internal consistency convergence. This study tested the convergence validity using both the outer loading and extracted mean–variance (AVE). The results show

*Entrepreneurship and Factors Affecting Entrepreneurial Decisions DOI: http://dx.doi.org/10.5772/intechopen.110196*


#### **Table 2.**

*Path coefficient and hypothesis testing.*

that the outer loading of items ranged from 0.725 to 0.943 is greater than 0.7 and the AVE of 10 variables from 0.589 to 0.846 is greater than 0.5, so it achieved validity.

Discriminant value: Discriminant value is tested by HTMT value. The results show that all variables have values < 0.85. Therefore, the variables in the study have excellent discriminant values.

#### *5.3.2 Structural model*

To test the hypotheses, SmartPLS software was used with bootstrapping 5000 and a significance level P value of 0.05. The results show that out of 10 proposed hypotheses, there are 9 supported hypotheses and 1 rejected hypothesis (H5). The path coefficients range from 0.164 to 0.465, in which hypotheses H10 and H8 are strongly supported with path coefficients of 0.465 and 0.418, respectively (**Table 2** and **Figure 2**). The results of this study are like those of [26, 27]. The family background factor is like that studied by Laspita et al. [93]. The EC factor is like the study of Stam and Spigel [94]; cognitive factors control behavior like the study of [52, 54]. Research results of [61, 95] conclude that SV affects EI. This study's results are compatible with [61] on the element of opportunity identification; the results research of [67, 72] on attitude factors; the research of [78, 79] on the self-efficacy of entrepreneurs and business decision factors in the studies of [85] and the research of [77].

#### **5.4 Conclusion**

Thus, through experimental research in Vietnam, derived from a research model on factors affecting EI, including variables drawn from domestic and foreign studies. The research results show findings: the entrepreneurial decision of young entrepreneurs in Vietnam depends on independent variables: entrepreneurial education, the background of the family, EC, perceived control behavior, SV, perception of entrepreneurial opportunity, and mediating variables: attitude, entrepreneurial self-perception, and EI. The entrepreneurial decisions of millennial generation entrepreneurs are influenced by some factors, so to promote entrepreneurship, the government needs to create a startup ecosystem, strengthen EE, and create a favorable environment for entrepreneurs.

**Figure 2.** *Structural equation modeling.*
