Entrepreneurial intention of matric commerce students: An empirical study

Abstract

Background: In the first quarter of 2021, the official unemployment rate in South Africa was 32.6%. Among young persons between the ages of 15 and 34, the figure was 46.3%. One in two young people in the labour market are unemployed, Entrepreneurship is widely recognised as an effective mechanism to address the tripartite challenges of unemployment, inequality, and poverty.Aim: The study’s aim was to look into the factors that influence matric commerce students’ entrepreneurial intentions in rural KwaZulu-Natal, South Africa.Setting: A survey was conducted among commerce students in 11 districts of KwaZulu-Natal.Methods: The study was based on a sample of 433 commerce students from the matric commerce students, South Africa. Data were gathered through a self-administered questionnaire using a five-point Likert scale. Descriptive statistics, confirmatory factor analysis and structural equation modelling were performed on the data.Results: The results of the study show that attitude towards entrepreneurship, entrepreneurial self-efficacy and entrepreneurial education are key drivers of entrepreneurial intention. The study found no evidence of innovativeness as a driver of entrepreneurial intention.Conclusion: The study recommends that the department of basic education should develop strategies that will help innovative and creative students to embrace entrepreneurship. This is because entrepreneurs typically operate in perfect market conditions, with homogeneous products and freedom of entry and exit, so innovativeness is critical.