FACTORS INFLUENCING INDIVIDUALS’

Date
2011-06-02
Authors
Nkambule, Nonhlanhla
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Abstract
The aim of this paper was to investigate factors that influence individuals’ propensity to start their own businesses. These factors were divisible into three categories: non-psychological, psychological and environmental factors. A survey was conducted on 36 existing entrepreneurs and potential entrepreneurs on a purposive and convenience basis. The data gathered was nominal and ordinal, the latter being rescaled into interval data using Stacey’s (2005) Normal Distribution Fitting Algorithm. The results of the survey indicated that in the South African context, entrepreneurs’ propensity to start businesses is largely influenced by psychological factors, and that the strongest factors were the desire to create wealth for themselves, their desire for independence, their inclination to take risks and tackle challenges. A majority of the entrepreneurs also agreed that education in entrepreneurship could increase the quality of businesses that are started. Although previously published literature on non-psychological factors such as lack of business skills, low education levels, inefficiency of government structures, social networks and exposure to family business suggest a negative impact on entrepreneurial propensity, the results of this study indicate that South African entrepreneurs disagree that these factors would have a negative influence on their inclination to start a business. The findings of this survey will benefit different stakeholders that have the interest in engaging and in promoting entrepreneurship in South Africa. These include business schools, government, financiers and potential and existing entrepreneurs
Description
MBA - WBS
Keywords
Entrepreneurs, Entrepreneurship, Business, South Africa, Small businesses
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