The role of self-efficacy, perceived social support and the risk perception on entrepreneurial intent on nascent entrepreneurs

Abstract

Entrepreneurship is important for new business creation and is a means to generating employment and increase the dynamism of any economy. This study was aimed at understanding how to unlock entrepreneurial capabilities to meet South Africa’s growth and employment goals. This is particularly important in a country like South Africa, which has a high unemployment rate and low GDP growth rate. The primary goal of the study is to conceptualise a structural model that explains the psychological mechanism that underlies entrepreneurial intent. To this end, Azjen’s (1991) theory of planned behaviour was used as foundation for the conceptual model. In addition, the role of perceived social support and general self-efficacy was incorporated into the model. The primary objective of the study was empirically tested by means of an ex post facto correlational research design. The target population was nascent entrepreneurs in the Western Cape who had the intention to start their own business. A sample of 85 individuals participated in this study. Results from this study indicated that attitude towards behaviour is a significant predictor of entrepreneurial intent, while perceived behavioural control is a significant predictor of attitude towards behaviour. However, no statistical support was found for the hypothesis that attitude towards behaviour mediates the relationship between perceived social support and entrepreneurial intent. In addition, no support was found for the hypothesis that general self-efficacy moderates the relationship between financial risk and perceived behavioural control.