Factors affecting youth entrepreneurial intention and suggestions for policymaking: The case of Vinh Long Province

Abstract

As a part of the Mekong Delta’s development plan, Vinh Long province implements various policies and programs to promote entrepreneurial intentions, especially for young people to generate income for themselves and jobs for locals, thereby contributing to developing the provincial well-being. However, the number of startup enterprises in the province does not fulfill the expectation and economic growth target of Vinh Long, resulting in the province being ranked in the least developed group of all Vietnam’s provinces (standing at 55/64 provinces and cities). The aim of this study is to identify the factors affecting the entrepreneurial intentions of young people, which are necessary to propose policymaking implications. Using an exploratory factor analysis (EFA) method with 359 samples, the results show that there are five factors affecting the entrepreneurial intentions of youth, including: Perceived legitimacy of law and policy; Motivation to become an entrepreneur; Individual ability; Personality characteristics; and Family background. In addition, the study also indicates one of the major constraints of starting a business in Vinh Long province is that the level of science, technology, and innovation applied in projects is underdeveloped, resulting in low quality business plans and low level of attention from supporting funds, investors, and businesses.