ISSN 2240‐0524 Journal of Educational and Social Research Vol. 2 (3) September 2012 75 A Binary Logistic Regression Model for Entrepreneurial Motivation Among University Students – A UAE Perspective Julie Vardhan Dept. of Management Studies Manipal University, Dubai, UAE julie@manipaldubai.com , +971 4429 0760 Seena Biju Dept. of Management Studies Manipal University, Dubai, UAE seena@manipaldubai.com , +971 4429 0757 Doi:10.5901/jesr.2012.v2n3p75 Abstract Entrepreneurial motivation has been a subject of numerous studies with the general understanding being that measuring a person’s intent or motivation towards entrepreneurship is the best predictor of it occurring in future. (Carsrud & Brännback, 2011).The present study is conducted to explain the probability of entrepreneurial motivation among university students based on certain extrinsic variables that serve as indicators for the same. Logistic regression is a preferred methodology by researchers of social sciences due to its practical utility, less restrictive assumptions and the use of probabilities for predictions. This study was conducted to develop a probability index for entrepreneurial motivation (EMI) among students pursuing their bachelors program (in varied disciplines) based on variables that serve as indicators for the same. The study explores and examines the relationship between the response variable (Score for entrepreneurial motivation) and the explanatory variables concerning the same. This study results could lead to a better understanding of how entrepreneurial aptitude can be encouraged and honed among students bearing in mind the effect of the predictor variables. The study while providing important theoretical insights to the issue will also help policy makers, academicians and universities in assessing the potential for entrepreneurship in their areas in future. Keywords: Entrepreneurial motivation, extrinsic variables, education, binary logistic regression, motivational index; 1. Introduction Companies like GE, IBM, Microsoft, Shell Oil, AT&T, Merck, Johnson & Johnson, Sun Microsystems, Skype, Kodak, Polaroid, HP, and Adobe have in one thing in common-they all were started during an economic downturn, some during the Great Depression (Draper, 2009). Entrepreneurship and its importance to the economy have found resurgence as an aftermath to recession with Draper suggesting that it is the best time for entrepreneurs to start their venture. Realizing the importance of entrepreneurship, almost every economy is creating a more enabling environment for its growth and trying to know the potential for entrepreneurship, especially among the youth during this period .However, each economy has not only to see if they have potential entrepreneurs but also if these potential entrepreneurs are motivated enough to start their new venture . The present study considers the individual entrepreneur as the locus of entrepreneurship and examines the various factors that affect him to be motivated. While a number of research has been on motivation (Maslow, 1943) (Herzberg, 1964) and entrepreneurial motivation (McClelland D. C., 1961) (McClelland D. , 1965), research on extrinsic variables that effect motivation of potential entrepreneurs has not been studied, especially for UAE, the only one found by the authors being a study on value creation through entrepreneurship in UAE (Sikdar & Vel, 2011). This paper will examine the entrepreneurial motivation index (EMI) of potential entrepreneurs in UAE. Subjects are university students as they represent a significant share of the pool of potential entrepreneurs for any country. A two-equation model is developed where one explains the effect that each independent extrinsic variable will have on the probability of motivation and the second, the effect that five of the extrinsic variables would have on probability of motivation.