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Barriers to Student Entrepreneurship in South Africa

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  • Richard Shambare

Abstract

As rising unemployment levels continually erode job opportunities in South Africa, it is sensible to assume that entrepreneurship would be considered as the next-best career option; however, university graduates show very little interest in becoming entrepreneurs. Having observed this disinterest, South African economic policies have put in place initiatives encouraging youth entrepreneurship; however, these have failed to significantly affect the willingness to engage in entrepreneurial activities. It is against this background that this paper investigates barriers to entrepreneurship as experienced by students. A survey of 235 university students was conducted. Their views regarding entrepreneurship were collected by means of self-completion questionnaires and studied using cluster analysis. It was concluded that a taxonomy of two distinct categories of student exist – sceptics and optimists – based on respondents’ predispositions to entrepreneurship barriers. The author identifies the themes that underlie the formation of the taxonomy, namely, family and social influence, exposure to entrepreneurial activity, entrepreneurial support, and education. The paper concludes with a discussion of practical solutions and strategies to mitigate the problem of a lack of student entrepreneurship.

Suggested Citation

  • Richard Shambare, 2013. "Barriers to Student Entrepreneurship in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 5(7), pages 449-459.
    • Handle: RePEc:rnd:arjebs:v:5:y:2013:i:7:p:449-459
    DOI: 10.22610/jebs.v5i7.419
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    References listed on IDEAS

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    1. Carr, Jon C. & Sequeira, Jennifer M., 2007. "Prior family business exposure as intergenerational influence and entrepreneurial intent: A Theory of Planned Behavior approach," Journal of Business Research, Elsevier, vol. 60(10), pages 1090-1098, October.
    2. Rina Makgosa & Henry Ongori, 2012. "Perceptions of Entrepreneurial Behaviour in Botswana," International Journal of Learning and Development, Macrothink Institute, vol. 2(3), pages 247-259, June.
    3. Greve, Arent, 1995. "Networks and entrepreneurship -- an analysis of social relations, occupational background, and use of contacts during the establishment process," Scandinavian Journal of Management, Elsevier, vol. 11(1), pages 1-24, March.
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    2. Yousef Hedjazi, 2015. "A Study on the Deterring Factors to Entrepreneurship among Graduates of Agriculture and Natural Resources: Case Study in Bushehr, Iran," Journal of Economics and Behavioral Studies, AMH International, vol. 7(5), pages 126-133.
    3. Mangasini Atanasi Katundu & Damian Mulokozi Gabagambi, 2016. "Barriers to Business Start-up among Tanzanian University Graduates: Evidence from the University of Dar-es-salaam," Global Business Review, International Management Institute, vol. 17(1), pages 16-37, February.
    4. Dambusse B. Libombo & Anabela Dinis, 2015. "Entrepreneurship Education In The Context Of Developing Countries: Study Of The Status And The Main Barriers In Mozambican Higher Education Institutions," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-26, September.
    5. Qiu, Hong & Chreim, Samia & Freel, Mark, 2023. "A tension lens for understanding entrepreneurship-related activities in the university," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).

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