Entrepreneurial action as an antecedent to new venture creation among business students in South Africa

Abstract

The objectives of this study were (1) to assess the level of entrepreneurial action (EA) among business students, (2) to determine the obstacles towards entrepreneurial action among the business students (3) to investigate the relationship between entrepreneurial action and new venture creation. The study utilized a quantitative research design. A self-administered questionnaire was used to collect data in a survey. Ninety university business students were conveniently sought to participate in the study. The Cronbach's Alpha was used to measure reliability. Data analysis included descriptive statistics and regression analysis. The results showed that the level of new venture creation among the participants was unsatisfactorily low which explains that their entrepreneurial action is also low. Factors such as lack of capital, lack of mentorship and incubation facilities from the university, fear of failure, lack of experience and lack of self-confidence were identified as key obstacles hindering the entrepreneurial action of the students. The regression analysis established a significant and positive relationship between entrepreneurial action and new venture creation. Recommendations were made for the students to take bold steps and launch their businesses and attain their entrepreneurial aspirations. The ministry of small business development was recommended to offer entrepreneurship bursaries to young entrepreneurs who have brilliant business ideas that can easily be commercialised.