The role of entrepreneurial self-efficacy in fostering adaptive cognitions among entrepreneurs in Gauteng, South Africa

Abstract

South Africa is one of the countries with high levels of unemployment, inequality and poverty. The government of the Republic of South Africa has introduced initiatives that target addressing and alleviating such problems. Equally, the government has introduced agencies that will assist entrepreneurs with resources for them to thrive[ CITATION Man12 \l 7177 ]. The National Development Plan 2030 has a mission of alleviating the triple challenges (poverty, unemployment and inequality) through SMEs that will lead to job creation and inclusive growth. The purpose of this study was to examine the relationships between the entrepreneurial self-efficacy dimension (developing new product and market opportunities), metacognitive knowledge and the goal orientation dimensions of adaptive cognitions. This study makes a contribution to the fields of cognitive psychology and entrepreneurship, mainly by identifying, defining and determining the importance and meaning of entrepreneurial self-efficacy and adaptable cognitions’ dimensions while making a distinction between entrepreneurial self-efficacy, metacognitive knowledge and goal orientation. The research paradigm in this report on entrepreneurial self-efficacy and adaptive cognition followed a Modernism approach which is a positivism perspective. This study was a cross-sectional study and data was collected over a period of three months. A targeted sample of 155 SMEs in all sectors included both genders (male and female) in Gauteng, South Africa. The findings of the study showed that entrepreneurial self-efficacy (developing new products and market opportunities) has a positive relationship with adaptive cognitions (goal orientation). Developing new products and market opportunities have emerged as having a significant influence on goal orientation.