A Hierarchical Multiple Regression Approach on Determining the Effect of Psychological Capital on Entrepreneurial Intention amongst Prospective University Graduates in South Africa

Abstract

The goal of the study is to identify the contribution of psychological capital in the prediction of entrepreneurial intention using the Theory of Planned Behaviour (TPB) as a theoretical lens. South Africa needs young entrepreneurs, not job seekers. However, in order to adapt, graduates must rely on psychological resources to succeed in their entrepreneurial ventures and pursuits. Using the TPB and Psychological capital (Psycap), the researchers explored the influence of planned behaviour and Pyscap on entrepreneurial intention of 270 final year students in the Management and Commerce faculty at a selected university in the Eastern Cape Province of South Africa. A structured questionnaire was used to collect data as the researchers opted for a survey design. Results of hierarchical multiple regression modelling showed that entrepreneurial intentions is positively influenced by perceived behavioural control (β1 = 0.367; p = <0.0001) attitudes towards becoming an entrepreneur (β2 = 0.316; p = <0.0001) and resilience (β3 = 0.130; p = 0.009). The resultant model revealed that resilience (ΔR 2 = 0.016; R 2 = 0.392; df = 266; p = 0.009) was the only significant psychological capital construct that added unique variance in predicting entrepreneurial intention above and beyond, which is predicted by the theory of planned behavior variables among the prospective graduates. Findings of the study are helpful to policy makers as they try to optimise strategies for entrepreneurial success in the South African context and the developing world.

The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa

“…Quantitatively, micro enterprises in the retail sector have fewer than five employees, very small enterprises fewer than 20 employees, small enterprises fewer than 50 employees, and medium enterprises fewer than 250 employees. This is similar to the definition of SMEs in the United Kingdom where SMEs are defined as enterprises with fewer than 250 employees [20]. Sustainable development can be achieved by entrepreneurial enterprises with economic and social responsibilities [21].…”

“…The quantitative definition focuses on the turnover, the number of workers and the gross asset value of the business [20].…”