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ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
502
SOCIAL MEDIA AFFECTING ENTREPRENEURIAL INTENTION
OF GEN Z IN HO CHI MINH CITY - VIETNAM
Nguyen Thi Phuong Giang, Le Huu Hung, Nguyen Binh Phuong Duy
Abstract
Entrepreneurship has been a topic of interest in Vietnam in recent years when the trend and the
encouragement of entrepreneurship from school organizations become popular. Combined with
the development and impact of social networks in the current technological era, the purpose of
the research is to study the influencing factors of social networks on the entrepreneurial
intention of Gen Z in Ho Chi Minh City. The survey obtained 432 samples and the results were
analyzed by SPSS software. The study results confirm many impacts, specifically, perceived
ease of use and perceived usefulness of social media on perceived feasibility and partly assist
their effects on perceived desirability of gen Z. Additionally, perceived feasibility affects
entrepreneurial intention more than perceived desirability. These results have meaningful
pragmatic and intellectual contributions to education and policymakers, such as how to
influence using social media to encourage entrepreneurship in gen Z.
Keywords: entrepreneurship intention, gen Z, perceived ease of use, perceived desirability,
perceived feasibility, perceived usefulness, social media.
1. INTRODUCTION
It can be said that entrepreneurship has become a vital role in helping the country improve and
develop a strong economy. Moreover, entrepreneurship is also a top priority for governments
(Al Mamun et al., 2018). Statistics from Statista show that in 2020, countries with high to low
startup rates: Chile (19.8%), the USA (10.7%), Brazil (10.2%), and Canada ( 8.7%). The startup
movement in Vietnam in recent years has also grown relatively, thanks to the government's
support as well as from organizations in the economy.
Besides that, technology and mobile devices have evolved, and social networks have
overgrown. Digital 2021" is the annual report from Hootsuite and WeAreSocial, the age group
between 16 and 25 is the age using the most social networks. According to a report in June 2021
about Vietnam (NapoleonCat), the age group of Generation Z, from 13-24 years old, is the
demographic that uses social media sites like Facebook and Instagram the most. With roughly
34% and 66.1% of 76 million and 10 million users respectively.
Our question is whether the intention to build a company is changed through the effects of
social media use. The influence of social media on students' perceived feasibility and
desirability with the entrepreneurial aim is partially confirmed (Mahmoud M Hussein Alayis et
al, 2018).
In Viet Nam, the strongest influence on establishing a company's intention is "perceived
desirability". The "perceived feasibility" factor includes the capability to find and set up a new
business plan and also has an impact on the entrepreneurial intention. However, there is no
research showing the impact of social networks on the startup intention of Gen Z in Vietnam.
In this study, our goal is to explore the entrepreneurial intention through the effect of the
usefulness and ease of use of social media on the perceived desirability and perceived
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
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feasibility. Through data from 511 samples and based on results, we also propose some
solutions for the government, organizations, and businesses to increase and promote the
development of entrepreneurial intention for the young generation of Vietnam to help the
country's economic growth.
2. LITERATURE REVIEW
Entrepreneurship, Intention and Entrepreneurial Intention
In 1755, French economist Cantillon first used "entrepreneurship" (Hisrich R., Peters M., &
Shepherd D, 2005). It comes from the French word "Entreprendre", which means to begin or
start executing (Parker S. C, 2009). Numerous scholars have proposed various definitions of
the term since then. The majority of definitions relate to starting a company or being self-
employed. Others define a broad spectrum of activities, such as creating a business, combining
resources using new strategies, exploring new opportunities, or risk acceptance.
Entrepreneurship is a process of seizing or creating chances and tracking them despite the
existing resources (Bygrave, W. D., & Timmons, J. A, 1992) or is the spirit of innovation and
creativity (Schumpeter J, 1934) Entrepreneurship is also an artistic action that takes advantage
of resources available to enrich in different ways (Drucker, P. F (1985). Based on the previous
definitions of entrepreneurship, we suggest the concept of entrepreneurship as the beginning of
a new business process. This requires innovation and creativity to identify opportunities in
business, use disposable standby, and take the risk by pursuing business ventures that aim for
independence, wealth, or bringing some value to society.
"Intention" is a person's particular motive to do any act or series of actions. It results from a
deliberate thought process that can lead to behavior (Parker S. C, 2004). In the other research,
the intention is a mental state that directs one's focus and activities towards a certain objective
or a path to accomplish some goal (Bird, B, 1998).
Most studies view "entrepreneurial intention" as a mindset created before the time
entrepreneurial actions take place. This intention is a sign of the potential or potential to build
up a business in the near future. Entrepreneurial intention is also defined as a conscious
identification of the mind to boost necessary actions to launch an enterprise (Wahyuningtyas,
Yunita Fitri dan Dyah Ayu Widiastuti. (2015). The research suggests an approach to
entrepreneurial intention as a mental state that directs a person's attention on their desirability,
capabilities, and actions to launch a business via social media usage.
2.1 Perceived Usefulness of Social Media
Social networks are websites and applications that allow users to interact with each other. For
example, Facebook, Instagram, Zalo, Youtube, and Twitter,...users can interact with each other
through posting statuses, images, videos, and stories.
Each user will have a private piece of information similar to a personal profile about the date
of birth, education and hometown. It can be allowed or not accessed by other users for viewing.
Besides accessing and viewing their friends' background information. Other users can also send
instant messages and email. Moreover, social networking sites also have group functions to
facilitate groups of members and collaborators to connect and exchange information (Sacide
Güzin Mazman & Yasemin Koçak Usluel (2009). Members with similar interests and passions
can also join groups together.
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
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The main influencing factors are startup process, business strategy, and experience. Thereby,
users can propose to join the group to follow and learn knowledge about starting a business.
The utilization of social media will impact brand recognition in the long term (Stojanovic et al,
2018). As a result, social media usage will enhance company activities while also indirectly
impacting the desire to become an influencer entrepreneur in the social media community.
H1: Perceived Usefulness of Social Media has a significant effect on perceived desirability
H2: Perceived Usefulness of Social Media has a significant effect on perceived feasibility
2.2 Perceived Ease of Use of Social Media
Perceived ease of use is how individuals believe that using a social networking site will be
effortless (Yekti Sulistyorini & Budi Santoso, 2021). Moreover, ease is when a person using a
particular system believes that it will reduce the effort when doing something in the world of
technology (Davis F.D., Bagozzi R.P. & Warshaw P.R. (1989).
The use of social media has become so widespread and well known across the globe that
everyone can connect. Moreover, the frequency of use of the system can also prove its ease of
use (Daniel Paa Korsah, Issah Bala Abdulai & Daniel Gbormittah (2020).
In addition, the rapid evolution of mobile technology and various mobile terminals play an
essential role in creating social media (Daniel Paa Korsah, Issah Bala Abdulai & Daniel
Gbormittah (2020). Contributing to making the current social network system simpler and
easier for users, especially young people with agility and dynamism.
However, perceived ease of use influences perceived desirability and feasibility when starting
a business. Perceived usefulness is 50% more effective than perceived ease of use (Davis F.D,
1993).
The hypothesis about the perceived ease of use of social media in the study is as follows:
H3: Perceived ease of use of Social Media has a significant effect on perceived desirability.
H4: Perceived ease of use of Social Media has a significant effect on perceived feasibility
2.3 Perceived Desirability
The extent to which people think they can successfully start a business is viability, and
perceived desirability can be interpreted as appealing to the idea of a start-up (Shapero A. &
Sokol L. 1982). Shapero describes the tendency to act that emerges as a characteristic
personality and personal disposition to act on decisions.
The two sides of the belief in desirability include: on the one hand, beliefs related to the outcome
of one's own company. On the other hand, those are related to the social environmen (Ajzen, I.
(1988).
Perceived desirability is how a person is attracted to behavior to become a successful company
owner (Liñán F., Rodríguez-Cohard J.C. & Rueda-Cantuche J.M, 2011).The attractiveness
increases from the business experience perspective view and the level of support from society,
family, and friends, which is reflected in people's affection for entrepreneurship (Shapero A. &
Sokol L, 1982). H5: Perceived desirability has a positive effect on entrepreneurial intentions.
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March 18th, 2023
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2.4 Perceived Feasibility
Perceived feasibility can be understood as how people consider themselves personally capable
of performing certain behaviors. One of the critical factors in determining the viability of an
individual's business will be the availability of mentors and role models. In the model of
Krueger and Brazeal, seeing the feasibility in a phrase of Shapero is the same as perceived
behavioral control in the theory of planned behavior(Singh, Prasad & Raut, 2012). Perceived
feasibility is also defined as the degree to which a capability exists to establish an organization
of individuals.
H6: Perceived feasibility has a positive effect on entrepreneurial intention
The conceptual framework of the study showing the hypothesized relationships among the
variables is performed in Figure 1
Figure 3: The conceptual framework. Source: General Author
3. RESEARCH METHODOLOGY
The online survey was conducted within two weeks, from April 9 to April 24, 2021. The study
subject of gen Z (1997-2010). The survey was performed through a questionnaire of 24
variables observed and some demographic questions. The questionnaire was designed to
accurately and fully describe the elements with a 5 level Likert scale.
The amount of data we collected is 511. After excluding the answers with missing information,
poor information, incorrect age, and different city, the data to conduct data analysis is 432.
The study using both qualitative and quantitative methods.
Qualitative research methods: This method aims to build, edit, add and finish the questionnaire
through exploring the theoretical basis to construct the model and scales and group discussion
to complete the construction of the draft model.
Quantitative research method: The quantitative data is gathered from the subjects of surveys
and converted into an accurate scale when conducting data analysis. Based on the data analysis
outcomes, we will test the set hypotheses against the results.
4. RESULTS
Research results are calculated based on responses obtained from an online survey that the
team conducted within one month. The survey subjects are people of Z (1997-2010). The
number of respondents to the study is 511 samples. The evaluation samples were quite complete
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
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in content, but 79 incomplete samples were removed during the cleaning phase. We are using
IBM SPSS statistics 20 software to analyze the obtained data. After demographic analysis for
the remaining 432 samples, the results showed that 53% of men, 46.5% of women, and 5% of
LGBT people participated. For careers, the percentage of participating students occupied 67.1%
of the study samples, office workers occupied 21.1%, and other careers occupied 15.3%.
Especially when asked: "Have you ever considered founding your own firm?" The answers
received included 88.4% yes and 11.6% no.
4.1 Reliability
The results recorded in table 1 show that Cronbach's Alpha index for all 5 scales varies from
0.810 to 0.862, show that data is reliable for this research.
In prior research, Cronbach's Alpha ranged between 0.8 and close to 1 is the scale was good. It
is possible to use between 0.7 and 0.8. Therefore, we conclude that the scales such as perceived
desirability, perceived feasibility, perceived ease of use of social media, perceived usefulness
and entrepreneurial intention meet standards and statistical significance.
Table. 5 - Reliability Analysis
No
Variables
No. of Items
Cronbach Alpha
1
Perceived Usefulness
4
0.855
2
Perceived Ease of Use
5
0.862
3
Perceived Desirability
5
0.810
4
Perceived Feasibility
5
0.818
5
Entrepreneurial Intention
5
0.931
4.2 Exploratory factor analysis EFA
After the reliability test, 5 elements and 24 observation variables are retained, and the next
analysis step is performed. To identify the components of the proposed research model of
factors affecting entrepreneurial intention of gen Z in Ho Chi Minh city, the study conducted
an EFA analysis to guarantee that the components in the suggestive element are valuable and
uncover new ones. The topic will conduct research simultaneously on independent variables.
The remaining dependent variable EI will be analyzed separately.EFA analysis for independent
variables.
Table. 6 - EFA analysis results for independent variables
Component
1
2
3
4
PE3
.801
PE5
.760
PE4
.745
PE2
.706
PE1
.644
PD3
.552
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
507
PF4
.819
PF2
.808
PF3
.807
PF1
.580
PF5
.567
PU2
.822
PU3
.744
PU4
.690
PU1
.640
PD1
.795
PD5
.734
PD4
.559
PD2
.505
Cronbach’s alpha time 2
0.869
0.818
0.855
0.786
Average Variance Extracted
0.498
0.526
0.528
0.434
Composite Reliability
0.854
0.844
0.816
0.748
KMO
0.981
Bartlett’s (sig.)
0.00
Total Cumulative Variance
63.837%
Eigenvalues
1.033
The results of the rotation matrix in Table 2 show that: 19 observed variables converge into 4
factors, all observed variables have Factor Loading coefficients greater than 0.5, and there are
no bad variables. KMO = 0.981 > 0.5, sig. Bartletts Test = 0.000 < 0.05, implying that EFA
exploratory factor analysis is appropriate. 4 factors were extracted with the eigenvalue criterion
greater than 1 with a total cumulative variance of 63.837%, showing that the 4 extracted factors
explained 63.837% of the data variation of 19 observed variables participating in EFA.
EFA analysis for dependent variables
After conducting the EFA analysis for the dependent variable EI, the results are aggregated and
presented specifically in Table 3.
Table. 7 - EFA analysis results for dependent variables
Component
1
EI3
.813
EI2
.809
EI5
.762
EI1
.757
EI4
.728
Average Variance Extracted
0.599
Composite Reliability
0.882
KMO
0.851
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
508
Bartlett’s (sig.)
0.00
Extracted Variance
59.994%
Eigenvalues
3.000
The analysis results presented in Table 3 show that: KMO = 0.851 > 0.5, sig. Bartletts Test =
0.000 < 0.05, implying that EFA exploratory factor analysis is appropriate. The analysis results
show a factor extracted at eigenvalue equal to 3,000 > 1. This Factor explains 59.994% (>50%)
of the data variation of 5 observed variables participating in EFA.
4.3 Linear regression analysis
From a hypothetical model, the authors perform three time linear regression analysis aim to
inspection of the independent factors' effects on the dependent variable, including:
- Model A: PE, PU with PD
- Model B: PU, PE with PF
- Model C: PF, PD with EI
Table. 8 - Model Summary of All The Measures
Model
R
R2
Adjusted R2
F
A
.653a
.426
.424
159.374
B
.438a
.192
.188
51.013
C
.695a
.482
.480
199.938
Table 4 shows the model summary. The Adjusted R Square reflects the degree (%) of influence
of the independent variables on the dependent variable. In model A, the revoicing result shows
that the defining factor Adjusted R Square = .421 (≠0), i.e., two factors (PU, PE) have a 42.1%
influence on the PD variable. In model B, PU and PE influence on the PF only is 18.8%. And
in model C, the EI variable is influenced by PD and PF is 48.0%.
Table. 9 - Hypothesis Testing Results
Path
Std. Error
Beta
t
Sig.
Result
PE -> PD
.053
.334
6.772
.000
Accepted
PU -> PD
.049
.381
7.724
.000
Accepted
PE -> PF
.066
.210
3.590
.000
Accepted
PU -> PF
.061
.269
4.603
.000
Accepted
PF -> EI
.038
.413
10.228
.000
Accepted
PD -> EI
.039
.387
9.583
.000
Accepted
For social media, the results from hypothesis testing show that all hypotheses (H1, H2, H3, H4)
are accepted. The partially supported research model concerns the impact of social media on
gen Z's business intentions. Hypothesis tests show that PU and PE have a considerable influence
on PD; however, there is no considerable impact on PF. PU and PE positively affect both PF
and PD variables. The higher these two factors, the more likely they are to promote Gen Z's
desirability and feasibility of entrepreneurial intention. For example, social media facilitates
collaboration, social connections, and information exchange. At the same time, social media
can provide tools for businesses to overgrow, significantly helping business activities such as
sales, marketing, and creating and developing brands. These results are linked to previous
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
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information technology and social media intent research (Davis F.D., Bagozzi R.P. & Warshaw
P.R, 1989; Cho Y.C., & Sagynov E, 2015)
Besides, the results show that the proposed hypotheses H5 and H6 are supported. EI is affected
by two intermediate factors, PD and PF, and both of these factors have a positive effect on EI.
The higher these two factors, the higher the entrepreneurial intention of Gen Z and vice versa.
Contrary to the research results (Schlaegel C., & Koenig M, 2014) tested in Western countries,
perceived desirability factors play a vital role in entrepreneurial intention formation rather than
perceived feasibility factors. Meanwhile, the findings of this study (conducted in Vietnam)
reveal that perceived feasibility has a greater impact on entrepreneurial intention than perceived
desirability. Desire offers people the determination and unshakable will to do certain behaviors,
specifically in the circumstances of entrepreneurial intention. Perceived desirability is how
individuals perceive the attractiveness of starting a business (Krueger N. F, 1993; Liñán F,
2004). Besides, entrepreneurial intention is always accompanied by the business idea's
feasibility. If an idea lacks feasibility, the intention to execute it is weakened or lost. Belief in
the business idea's rationality, suitability, and success will motivate its owner to commit to it.
That result is identical to earlier EI models. The meaningful association between perceived
desirability, feasibility, and entrepreneurial intention validates prior studies based on Shapero
and Sokol's EEM model (1982). The results are also equivalent to the findings of studies by
other regional universities (Dissanayake, D.M.N.S.W, 2013; Mahmoud M Hussein Alayis et
al, 2018; Szmigiera, M, 2021). It shows that this model is suitable for different cultures and
contexts. As a result, the research demonstrates the universality and applicability of
entrepreneurial intention models in assessing Gen Z's entrepreneurial intention in Vietnam.
5. CONCLUSION
This study aims to see how social media usage affects gen Z's entrepreneurial intentions in Ho
Chi Minh city. The study purposes to identify the elements that influence entrepreneurial intent
more or less and propose measures to improve entrepreneurial intent in Generation Z.
The research team built a research model that includes 5 factors: perceived desirability,
perceived feasibility, perceived usefulness of social media, perceived ease of use of social
media and entrepreneurial intention of generation Z in Ho Chi Minh city.
The findings presented here have a significant contribution to entrepreneurial education and
policymakers. Social media is recognized as a low-cost, solid, and effective platform for young
businessmen to operate their new firms. They can use social media as a useful platform and tool
to build their business and conduct their business activities. The findings imply that when they
realize these benefits come from social networks that promote the startup intentions of Gen Z.
Both perceived usefulness and ease of use of social media positively influence perceived
desirability and perceived feasibility, therefore impacting the entrepreneurial intention of Gen
Z. Specifically, perceived feasibility has more effect than perceived desirability on
entrepreneurial intention. All these factors are positively influencing entrepreneurial intention.
Thus, this implies that many of the benefits that social networks bring, such as becoming a
distribution channel, marketing channel, interaction point, inspiration place, etc., will help
promote the desire to start-up and increase the feasibility and confidence of the business idea.
From there, the results of this study will be the basis for future studies of proposals and online
education solutions to encourage and encourage the entrepreneurial spirit of young people. This
aids the country's economic development.
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
510
6. MANAGERIAL IMPLICATIONS
According to the study outcome, both perceived desirability and perceived ability affect the
entrepreneurial intention of gen Z, but both of these factors are influenced by perceived
usefulness and ease of use of Social Media. Therefore, to improve the entrepreneurial intention
of Gen Z, it is necessary to catch sight of improving the perceived desire and feasibility. Gen Z
is a young generation and is easily influenced in thought, so to improve the perceived
desirability to start a business, it is necessary to have clear policies and keep up with the times.
First, the perceived usefulness factor must be considered. To raise awareness of the usefulness
of social networks for Gen Z's entrepreneurial intention, educational institutions should pay
more attention to providing information and propaganda on social networks. Communicating
business ideas, successful entrepreneurs, or scientific articles related to startup intentions on
social networks. From there, Gen Z will have access to more helpful information on social
networks, be aware of the usefulness that social networks bring, and enhance the intention to
start a business from within themselves.
Next, to improve Gen Z's perceived desirability to business, raising awareness of the ease of
use of social networks should be concerned. In industry 4.0, exposure to social networks is no
longer strange to Gen Z. However, today, more and more social networks are born with many
different ways of working. Gen Z's access is also tricky. Therefore, publishers should consider
how social networks work and have a clear user manual to raise awareness of the ease of use of
social networks. When guided, Gen Z will ease using social networks, thereby quickly forming
a perceived desire and positively affecting the intention to start a business.
In addition, schools and organizations should develop and widely disseminate many detailed
and methodical curricula on how to use social media as a distribution channel, professional
sales channel, How to market, build brands, reach potential customers and many other features
that social media has to offer.
Besides, the government needs to organize training programs and train on startup skills.
Similarly, actual startup competitions will help Gen Z get a real-life practice environment. And
finally, facilitating funding as well as connecting organizations and investors will also be
essential for Gen Z when they intend to start a business.
7. RECOMMENDATIONS
This field of study has some limitations because of its freshness, and the research's limitations
are limited time, resources, and knowledge level. Specifically, the selection and analysis of
variables have not been extensive; the research time is somewhat limited. Therefore, the
research is slightly flawed unexpectedly. The research topic only explores the effects of using
social media of Gen Z in Ho Chi Minh city on entrepreneurial intention. So this research cannot
be concluded in an exact way, so the team proposes to expand the study further in provinces in
Vietnam to achieve better results. Besides, future research should consist of respondents from
various fields who may provide comprehensive and understanding observations about this
research topic.
Moreover, related research could look at the results in many dissimilar cultures and contexts to
see how differences in surroundings impact the result. The same hypothesis may be tested in
different economic settings by conducting comparative research in developed and developing
ICE 2023 – 1st International Conference on Economics
Ho Chi Minh City University of Food Industry, Vietnam
March 18th, 2023
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nations. Furthermore, experimental studies on the impact of social media use on young
entrepreneurial intention in various cultures might be done.
Finally, the research team also proposes that future studies can analyze and dig deeper into the
variables in the intention to start-up model through the influence of social networks.
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Contact information
Nguyen Thi Phuong Giang
Industrial University in Ho Chi Minh city
Address: No. 12 Nguyen Van Bao, Ward 4, Go Vap District, Ho Chi Minh City
E-mail: nguyenthiphuonggiang@iuh.edu.vn
ORCID: 0000-0002-3662-9797
Lê Hữu Hùng
Industrial University in Ho Chi Minh city
Address: No. 12 Nguyen Van Bao, Ward 4, Go Vap District, Ho Chi Minh City
E-mail: lehuuhung@iuh.edu.vn
ORCID:
Nguyễn Bình Phương Duy
Industrial University in Ho Chi Minh city
Address: No. 12 Nguyen Van Bao, Ward 4, Go Vap District, Ho Chi Minh City
E-mail: nguyenbinhphuongduy@iuh.edu.vn
ORCID: 0000-0003-1136-6609
