1

Role of Emotional Intelligence, Opportunity Recognition and Entrepreneurial

Intentions in Commerce Students

Supervised by

Irfana Niazi

Submitted by

Bushra Fatima

Semester VII

Department of Psychology
University of Mianwali
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Abstract
The study will aim to designed to examine the relationship between role of

Emotional Intelligence, opportunity recognition and entrepreneurial intentions in commerce

students. The sample of 300 commerce students from different colleges and universities will

be taken. The scale will be used to measure Emotional intelligence (Davies & Scott 2010),

Opportunity Recognition Scale (Ozgen and Baron 2007), Entrepreneur Intentions scale

(Linen & Chen 2009) will be used to collect data. Data will be analyzed with the help of

SPSS version-26; Pearson product correlation will be used to access the relationship. T-test,

Regression and descriptive statistics analysis will be also performed. Findings will be

discussed in the light of available literature and researches. Independent Sample T-test and

Regression Analysis will be used to analyze the data for this study.

Keywords Emotional intelligence, Opportunity Recognition, Entrepreneur Intentions,

Commerce Students
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Chapter Ⅰ

Introduction

According to Goleman, emotional intelligence is the largest single predictor

of success in the workplace. The term ‘Organizational Climate’ was coined in 1939 following

a study of children’s school clubs by Kurt Lewin and his colleagues. Lewin and his associates

characterized leadership within the club as corresponding to one of three styles (autocratic,

democratic, or laissez fair). Today’s students are considered as future entrepreneurs. It is

usually known that studying an entrepreneurial career field presents individuals with great

chances to become financially independent and strengthen the economy by contributing to

job creation, new business inventions, and growth. Creative freedom to apply various ideas in

finding income is very much needed by entrepreneurs (Ambadar et al., 2010).

Opportunity recognition refers to the process of identifying and evaluating potential

business opportunities. It's a crucial aspect of entrepreneurship. Social media can facilitate

opportunity recognition by providing access to a vast amount of information about market

trends, customer preferences, and emerging industries. Students who actively use social

media might be more exposed to various business ideas and trends, increasing their likelihood

of recognizing opportunities. The concept of opportunity recognition is broadly considered to

be the ability to identify a good idea and transform it into a business concept that adds value

and generates revenues for customers and/or society (Lumpkin & Lichtenstein, 2005). The

usage of different sites of social media helps individuals to recognize new opportunities and

unique ideas for their future business.

The entrepreneur's awareness is increased and is better equipped to see a fresh

opportunity due to knowledge from business experience and management practice. Social

media can influence entrepreneurial intentions by exposing students to success stories, role
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models, and entrepreneurial content. Regular exposure to entrepreneurial content on social

media might inspire commerce students to consider starting their own businesses.

1.1 Emotional Intelligence

Peter Salovey and John D. Mayer first explored and defined EI. They

explained EI as “the ability to monitor one's own and others' feelings and emotions, to

discriminate among them and use this information to guide one's thinking and actions”

(Salovey & Mayer, 1990).

Daniel Goleman (1998) suggests that there are many different models of

emotional intelligence, but all of them have a common core of basic concepts. His

model includes four such concepts: 1) the capacity to recognize emotions in the self

(Self-Awareness); 2) the capacity to regulate emotions in the self (Self-Management);

3) the capacity to recognize emotions in others (Social Awareness); and 4) the

capacity to regulate emotions in others (Relationship Management) (Emmerling,

Shanwal, & Mandal, 2008).

1.1.1Theories of Emotional Intelligence

Ability models. Approach EI as a standard intelligence that utilizes a distinct

set of mental abilities that (1) are inter correlated, (2) relate to other extant

intelligences, and (3) develop with age and experience (Mayer & Caruso 1999). In

contrast, both mixed and trait models define and measure EI as a set of perceived

abilities, skills, and personality traits. It has revealed that emotional intelligence is

linked with different aspects of individual personality and these aspects work together.

Mixed Model Deniel Goleman proposed a mixed model of emotional

intelligence that combines both abilities and traits. This framework includes self-

awareness self – regulation motivation empathy and social skills as key components of

emotional intelligence.
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Bar-On Model. Reuven Bar-On introduced a model of emotional intelligence

that includes a set of emotionally and socially intelligent behaviors as well as

individual traits and dispositions related to emotional functioning. He identified five

main areas intrapersonal interpersonal adaptability stress management and general

mood.

Goleman’s EI Performance Model (Faltas, 2017) According to Goleman, EI

is a cluster of skills and competencies, which are focused on four capabilities: self-

awareness, relationship management, and social awareness. Goleman argues that these

four capabilities form the basis of 12 ‘subscales’ of EI.

1.2 Opportunity Recognition

Opportunity recognition is a key component of the start-up creation process. By

Grave and Hofer (1991) state that it is an essential characteristic of entrepreneurs to perceive

an opportunity. Baron (2004) has suggested that opportunity recognition may also involve

cognitive structures possessed by specific persons–frameworks for organizing and

interpreting information developed through life experience (e.g., schemas, prototypes). Once

present, these cognitive frameworks help the persons who possess them to recognize

connections between seemingly unrelated events or trends (e.g., connections between

changes in technology, markets, demographics, government policies, etc.). In short, these

cognitive frameworks help specific persons “connect the dots” between seemingly

independent events, and the patterns they then perceive in these events may constitute the

basis for identifying specific business opportunities (Baron, 2006). Opportunity recognition is

often referred as “the process by which entrepreneurs see something that has potential

value”(Ardichvili, et.al 2003).

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1.2.1Theories of Opportunity Recognition

Models of Pattern Recognition. The perception research of cognitive psychology mainly

concentrates on the issue of pattern recognition, especially on the visual pattern recognition.

Human's pattern recognition can be treated as a typical perception process, which depends on

human's available knowledge and experience. Modern cognitive psychology has presented

several theoretical models about Human's pattern recognition, such as template-based

matching model, prototype-based matching model and feature-based matching model, some

of which are greatly affected by the artificial intelligence.

While several different theories of pattern recognition exist, one that is supported by a

large body of evidence (e.g., Hahn & Chatter 1997) and that appears to offer important

insights into the nature of opportunity recognition, is known as prototype theory (e.g.,

Whittlesea, 1997). This theory suggests that through experience, individuals acquire

prototypes, cognitive frameworks representing the most typical member of a category. The

instance of that category best capturing its essential meaning or nature.

1.3 Entrepreneurial Intentions

Thompson (2009) defines entrepreneurial intention as the belief that entrepreneurs

intend to start a business. In a word, entrepreneurial intention is a psychological state that

guides our attention toward specific business goals in order to achieve entrepreneurial results.

It is also recognition that individuals take actions to develop new businesses or create new

values in existing enterprises. Entrepreneurship and innovation enable people become self-

sufficient and use their talents to start their own businesses. Studying entrepreneurship and

innovation improves a person's ability to think critically and logically, which helps them

solve any difficulty.

The desire for entrepreneurship as a career option has grown, and university graduates

need to be encouraged to adopt an opportunity-focused entrepreneurial mindset. Currently,

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business planning is extensively emphasized in entrepreneurship education, and complex,

non-linear thought processes, which are essential for jobs as entrepreneurs, are rarely

encouraged. Entrepreneurship is considered to be a process whereby entrepreneurs discover,

evaluate and exploit opportunities to create future goods and services (Shane &

Venkataraman, 2000).

1.3.1 Theories of Entrepreneurial Intentions

The Theory of Reasoned Action. This theory was developed by Fishbein and Ajzen

in 1975. The theory was derived from previous research that began as the theory of attitude.

The theory aims to explain the relationship between attitudes and behaviors within human

action. Theory of Reasoned Action (TRA) is used to predict how individuals will behave

based on their pre-existing attitudes and behavioral intentions. An individual’s decision to

engage in a particular behavior is based on the outcomes the individual expects will come as

a result of performing the behavior (Gillmore et al., 2002).

In the words of Doswell et al. (2011) this theory serves to understand an individual’s

voluntary behavior. The ideas found within the TRA have to do with an individual’s basic

motivation to perform an action. According to the theory, intention to perform certain

behaviour precedes the actual behavior (Ajzen and Madden, 1986).

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Chapter П

Literature Review

Literature review is a written overview of major writings and other

sources or it is a comprehensive study of previously conducted researches on a

selected topic.

T.T Toe et al., (2012) Emotional intelligence, job satisfaction, well-being and

engagement: explaining organizational commitment and turnover intentions in policing. This

study examines the effect of emotional intelligence upon the job satisfaction, well-being and

engagement of police officers in explaining their organizational commitment and turnover

intentions predicted, emotional intelligence leads to job satisfaction and well-being, with

positive path relationships leading to employee engagement and organizational commitment,

thereby affecting turnover intentions. Organizational commitment was found to partially

mediate the causal relationship between employee engagement and turnover intentions. The

findings of this research have important theoretical and practical implications for police

officer retention.

Research was conducted by Lediet al., (2022) to investigate the mediating role of

entrepreneurial opportunity recognition on the relationship between entrepreneurial attitude

and entrepreneurial intention among university students in Ghana the country of West Africa.

Sample was consisted on 500 university students in Ghana. The results indicated that

entrepreneurial attitude had a substantial positive impact on both entrepreneurial intention

and opportunity recognition among university students. The result further indicated that

entrepreneurial opportunity recognition positively affected university students'

entrepreneurial intention.
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Research was conducted by Malebana and Swanepoel (2015) to investigate

entrepreneurial intentions in the rural provinces of South Africa in graduate commerce

students. In this research 335 final year commerce students from two universities in rural

provinces of South Africa, namely Limpopo and the Eastern Cape were included. This study

was based on theory of planned behavior. The results of this study suggest that the TPB could

be a valuable tool for measuring entrepreneurial intentions as part of a comprehensive

entrepreneurship development programmed in rural areas.

Rahim et al., (2010) This article probes into the effect of demographic factors (Age,

Education, Job tenure, Gender and Marital Status) on the level of Emotional Intelligence that

leads to organizational performance among male and female employees of the banks

operating with in Pakistan specifically in the areas of Peshawar and Islamabad. The findings

show that the female segment of the bank employees is more emotionally intelligent than

their male counterparts and the age of the male and female employees have inverse

relationship with the Emotional Intelligence and as the level of education increases the

Emotional Intelligence level increases as well. The more satisfied the employees are the more

they will be in a better position to perform well in an organization.

Research was conducted by Hoang et al., (2022) in which opportunity recognition

mediates the relationships between the Dark Triad personality traits and entrepreneurial

intentions, and locus of control moderates the influence of opportunity recognition on

entrepreneurial intentions based on the theory of planned behavior. Data was collected from a

sample of 962 undergraduate students who were enrolled in nine Vietnamese universities.

The results show that opportunity recognition mediates the effects of the Dark Triad traits,

namely Machiavellianism, psychopathy, and narcissism, on entrepreneurial intentions. In

addition, the influence of opportunity recognition on entrepreneurial intentions was positively

moderated by internal locus of control and negatively moderated by external locus of control.
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Li, et.al, (2015) conducted a research on Chinese university students using the novice–

experienced entrepreneurs contrast paradigm, the influence of entrepreneurial experience,

alertness, and prior knowledge on opportunity recognition. After viewing a self-made

opportunity situation, 94 entrepreneurial university students and 114 non-entrepreneurial

university students were instructed to complete via email or paper and pencil tests measures

of opportunity recognition, entrepreneurial alertness, and prior knowledge. The results

showed that entrepreneurial alertness significantly and directly predicted opportunity

recognition, whereas prior knowledge significantly and indirectly affected opportunity

recognition through its impact on entrepreneurial alertness. The entrepreneurial alertness of

non-entrepreneurial university students significantly influenced their opportunity recognition;

in contrast, the prior knowledge of entrepreneurial university students greatly influenced their

opportunity recognition

2.1 Rationale

The purpose of this study is to find the relationship between the role of emotional

intelligence, opportunity recognition and entrepreneurial intentions in commerce students. In

entrepreneurship, EI helps individuals manage stress, build relationships, and make informed

decisions, all of which are critical for entrepreneurial success. For commerce students,

developing EI can contribute to enhancing their leadership potential and adaptability in a

dynamic business environment. It involves identifying market gaps, understanding customer

needs, and creating innovative solutions. The ability to recognize opportunities is often seen

as a cognitive skill, but it is closely tied to emotional intelligence, as entrepreneurs must

remain attuned to changing market conditions and human behavior. Entrepreneurial

intentions are the motivational factors that influence individuals to engage in entrepreneurial

behavior. The findings can help in developing educational strategies and training programs

that focus on enhancing EI and OR, thereby fostering a new generation of capable and
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emotionally intelligent entrepreneurs. By understanding how emotional intelligence

influences entrepreneurial intentions among commerce students, researches can contribute to

discussions on sustaining economic development through innovation. This exposure can lead

to improved opportunity recognition. The aim of this study is also to develop an indigenous

tool on role of emotional intelligence and opportunity recognition to enhance the

entrepreneurial intentions of a Pakistani student from commerce department which will be

help in future to fill the literature gap.

Another research was conducted byZulfiqaret.al (2019) to find out the relationship

between Opportunity Recognition Behavior and Readiness of Youth for Social

Entrepreneurship. The data for this research was collected from Indian, Pakistani, and

Chinese youth. A total of 750 questionnaires were distributed among respondents. Multiple

methods for data collection and management were available. The results of this research

revealed that opportunity recognition behavior has a significant influence on the readiness of

the youth for social entrepreneurship.

2.2 Objectives

Following are the objectives

• To investigate the relationship between role Emotional intelligence,

opportunity recognition and entrepreneurial intentions in commerce

students

• To investigate the relationship between demographics and role of

Emotional intelligence, opportunity recognition and entrepreneurial

intentions in commerce students

• To investigate the predicting variables of entrepreneurial intentions in

commerce students
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2.3 Hypothesis

The hypotheses of this study will be

• There is Positive relationship between role of Emotional intelligence, opportunity

recognition and entrepreneurial intentions in commerce students.

• Opportunity recognition Positively influence and entrepreneurial intentions

in commerce students.

• Emotional intelligence, has a positive impact on opportunity recognition

among commerce students.

• Opportunity recognition mediates the emotional intelligence, opportunity

recognition and entrepreneurial intentions in commerce students

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Chapter III

Methodology

The present study focused to investigate the Role of Emotional intelligence,

opportunity recognition and entrepreneurial intentions in commerce students

3.1 Research Design

Correlation research design will be used to find out the relationship between Role of

Emotional intelligence, opportunity recognition and entrepreneurial intentions in commerce

students.

3.2 Sample and Sampling Strategy

The sample will be considered of 300 commerce students will be easily available to

participants in the study. Sample will be comprised of 150 males and 150 females.

Convenience sampling strategy will be used to collect the data in this study.

3.2.1 Inclusion Criteria

• Students within age range (18 to 35 years) will be included.

• Students with no prior business-related activities will be included.

• Students from both private and government sector will be included.

• Both university and college students will be included.

3.2.2 Exclusion Criteria

• Students with any psychological or physical impairment will be excluded.

• Students from departments other than commerce were not included.

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3.3 Operational Definitions of Variables

3.3.1 Emotional Intelligence

Emotional Intelligence is defined as “the ability to monitor one’s own and others’

feelings and emotions, to discriminate among them and use this information to guide one’s

thinking and actions.(Davies & Scott 2010).

3.3.2 Opportunity Recognition

Opportunity recognition is defined as individual’s ability to recognize, discover or

construct patterns and concepts. Opportunities emerge from a complex pattern of changing

conditions changes in technology, economic, political, social and demographic conditions

(Baron, 2007).

3.3.3 Entrepreneurial Intentions

Entrepreneur Intentions is defined as refers to one’s own inclination or determination

towards setting-up a new business venture or one’s disposition showing the hint of becoming

an entrepreneur in the near future. The stronger the intention towards a particular behavior,

the higher the possibility for that behavior to be performed. (Linen & Chen, 2009).

3.4 Assessment Measure

Following three questionnaires and a demographic information sheet will be used for

assessment purpose.

3.4.1 Demographic Information Sheet

Demographic information questionnaire will be constructing to collect personal

information which will be required for analysis. All basic information of the

participants will be collected through demographic questionnaire. Demographic

information like, age, gender, education level, institution type, family system, social

economic status, and residence area will be collected.

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3.4.2 Brief Emotional Intelligence Scale

A- Self report measure use to assess the Brief Emotion Intelligence scale

developed by(Davies & Scott 2010).Items were assessed first for affective content (the

item had to contain the reference to emotion, feelings, or mood), and second for

theoretical relevance in relation to model. The scale Items contain “I know why my

emotions change ” and ‟ I easily recognize my emotions as I experience them of

others emotions” ‟ I can tell how people are feeling by listening to the tone of their

voice” it is a five point likert scale on which the response range from(1= strongly

disagree to 5= strongly agree). The scoring scale can be done by calculating the mean

of all items. Higher scores indicated higher level of Honesty-Humility.

The Persian version of BEIS-10 indicates a good test–retest reliability (ICC = 0.612,

95% confidence interval: 0.384 and 0.769) as well as internal consistency (Cronbach's

alpha = 0.748, ranging from 0.359 to 0.868 for different domains).

3.4.3 Opportunity Recognition Scale (ORS)

Opportunity Recognition Scale was developed by Ozgen and Baron (2007). It is a 5-

items scale that assesses to measure the recognition of new opportunities. Items were rated on

a 7-point Likert scale from 1 (total disagreement) to 7 (total agreement). The reliability of

Opportunity Recognition Scale was found good (0.85).

3.4.4 Entrepreneurial Intention Scale (EIS)

Entrepreneurial Intention Scale was developed by Linen and Chen (2009). It is a 6-

items scale that used to measure the entrepreneur intentions. Items were rated on a 7-point

Likert scale from 1(total disagreement) to 7 (total agreement). The EIS was found good

reliability (0.91), which is highly satisfying.

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3.5 Procedure

After the selection of research topic and searching the related scales research

Permission will be taken from the authors and will be used for research purpose. Permission

letter will be presented to organizations for data collection. In order to collect the data a

quantitative method will be used in this study. The questionnaire consisted of four parts; part

A, B, C and D. Part A was comprised of informed consent and participants’ demographic

information. Whereas part B, C and D were related to instruments that measure Emotional

intelligence, Opportunity recognition and entrepreneurial intentions. The data will be

collected through purposive sampling technique. Then questionnaire will be distributed

among the participants. They will be instructed about filling of questionnaire i.e. they had to

respond to each question honestly and not leaving any item unfilled. Proper guidelines and

help were given to each participant. After the completion of questionnaires, data will be

entered in SPSS-26 and descriptive, reliability, correlation, t-test, regression analysis and

ANOVA were performed on data. Results will be evaluated and reported according to the

APA standards.

3.6 Ethical Consideration

All ethical issues will be taken into consideration before conducting research.

• The permission of respective authors for the original measures will be taken.

• Participants will be a right to withdraw from participation at any time.

• All information will be provided by research participants that will be kept

confidential and anonymous and used for only research purpose”.

• All material in the research report will be rephrased and cited properly.
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3.7 Proposed Statistical Analysis

Following statistical analyses were used to analyze results;

• Descriptive Statistical Analyses,

• Pearson-Product Moment Correlation

• Independent Sample t-test

• One way ANOVA

• Regression Analysis
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