The Influence of Perceived Opportunities and Perceived Capabilities on Entrepreneurial Activity in Sub-Saharan Africa

Abstract

This research examines the impact of perceived opportunities and capabilities on entrepreneurial activities in Sub-Saharan Africa. It uses logistic regression to analyse available data on the region from the Global Entrepreneurship Monitor, which consists of survey data from South Africa. The analysis reveals that perceived opportunities do not significantly influence entrepreneurial activities within both the formal and informal sectors. However, perceived capabilities are pivotal in driving entrepreneurial activities. Further analysis incorporating control variables such as gender, age, educational levels, and employment status indicated that educational attainment does not have a relationship with entrepreneurial activity and age and employment status are negatively associated with entrepreneurial activity. Thus, this study challenges the prevailing notion that opportunity recognition predominantly fosters entrepreneurship in Sub-Saharan Africa, highlighting instead the critical role of perceived personal capabilities in entrepreneurial ventures.