This study examined the effect of munificent environment factors on the antecedents of entrepreneurial intention and risk-taking propensity by means of the theory of planned behaviour. The study also assessed the effect of perceived behavioural control and entrepreneurial intention on entrepreneurial behaviour, as well as the moderating role of risk-taking propensity on the association between the antecedents of entrepreneurial intention, entrepreneurial intention, and entrepreneurial behaviour. Data were gathered from 127 SME owners in the Gauteng metropolitan cities of Ekurhuleni, Johannesburg, and Tshwane using a structured self-administered questionnaire. Partial least squares structural equation modelling (PLS-SEM) was employed to test the relationships. Findings revealed the varying effects of the munificent environment factors on the antecedents of entrepreneurial intention and risk-taking propensity. Perceived behavioural control had a significant effect on entrepreneurial intention, while attitude towards behaviour and subjective norms were non-significant. Risk-taking propensity weakened the link between entrepreneurial behaviour and entrepreneurial intention and did not exhibit a significant moderating effect on the association between attitude towards the behaviour and entrepreneurial intention or between subjective norms and entrepreneurial intention. Risk-taking propensity had a significant effect on both entrepreneurial intention and entrepreneurial behaviour. Perceived behavioural control had a direct positive significant effect on entrepreneurial behaviour, whereas entrepreneurial intention did not. Efforts to promote access to entrepreneurial role models and social capital are vital in regard to stimulating risk-taking propensity and entrepreneurial behaviour. Thus, interventions that are directed at the enhancement of perceived behavioural control could help shape the formation of entrepreneurial intentions and stimulate entrepreneurial activity.
