FACTORS INFLUENCING INDIVIDUALS’
The aim of this paper was to investigate factors that influence individuals’propensity to start their own businesses. These factors were divisible into threecategories: non-psychological, psychological and environmental factors.A survey was conducted on 36 existing entrepreneurs and potentialentrepreneurs on a purposive and convenience basis. The data gathered wasnominal and ordinal, the latter being rescaled into interval data using Stacey’s(2005) Normal Distribution Fitting Algorithm. The results of the survey indicatedthat in the South African context, entrepreneurs’ propensity to start businesses islargely influenced by psychological factors, and that the strongest factors werethe desire to create wealth for themselves, their desire for independence, theirinclination to take risks and tackle challenges. A majority of the entrepreneursalso agreed that education in entrepreneurship could increase the quality ofbusinesses that are started.Although previously published literature on non-psychological factors such aslack of business skills, low education levels, inefficiency of governmentstructures, social networks and exposure to family business suggest a negativeimpact on entrepreneurial propensity, the results of this study indicate that SouthAfrican entrepreneurs disagree that these factors would have a negativeinfluence on their inclination to start a business.The findings of this survey will benefit different stakeholders that have theinterest in engaging and in promoting entrepreneurship in South Africa. Theseinclude business schools, government, financiers and potential and existingentrepreneurs
Year of publication: |
2011-06-02
|
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Authors: | Nkambule, Nonhlanhla |
Subject: | Entrepreneurs | Entrepreneurship | Business | South Africa | Small businesses |
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