Abstract

Building on previous research relating to entrepreneurship, empowerment and self-employment, this article investigates the relationship between entrepreneurial empowerment, entrepreneurial self-efficacy and self-employment. These constructs are formulated into distinct factors and a sample of undergraduate students (N = 112) early in their careers surveyed to establish the structure formed by these factors. These instruments are tested and shown to provide robust scales able to ensure construct validity and reliability. Multiple correlational and multiple regression analysis are then conducted to test the relationships between the specified variables, with results indicating almost unequivocal support for the hypothesised associations between entrepreneurial empowerment and reasons for business start-up. In particular the “risk-taking” factor is found to have great predictive power on various reasons provided for business start-up is analysed. Several practical and theoretical implications are drawn from the empirical results and integrated with established conceptual findings.

Highlights

  • 1.1 Background to the studyModern businesses are often characterised as turbulent and dynamic

  • This review aims to survey the key concepts behind the central research focus, which investigates the relationship between entrepreneurial empowerment (EE), explored using a model of entrepreneurial self-efficacy (ESE), and identifies reasons for business startups and self-employment

  • As in previous studies on individual differences in entrepreneurship, the following demographic control variables were measured, with the results indicated in brackets: age (33 per cent in the 17–20 category; per cent in the 21–24 category), gender, level of education, and parents, friends or relatives who are or have been entrepreneurs

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Summary

Introduction

1.1 Background to the studyModern businesses are often characterised as turbulent and dynamic. Instead of becoming adaptable, flexible, autonomous and entrepreneurial, many individuals in this rapidly changing, complex environment tend to react in the opposite way. Whetten and Cameron suggest empowerment is the key to developing the characteristics required for such a changing environment, saying that ‘to empower means to enable and to develop a sense of self-efficacy’ (2005: 403). Empowered individuals feel less constrained and more selfefficacious, autonomous and creative, and are more likely to be innovative and expect more success (Conger & Kanungo, 1988; Thomas & Velthouse, 1990). When people are empowered they feel efficacious in that they possess the capability and competence to perform a task successfully. They feel a sense of personal mastery and confidence. Some researchers (such as Bandura, 1997) believe that self-efficacy is the most important element in empowerment, since it determines whether people will try and persist in attempting to accomplish a difficult task. Kantor (2002) argues that empowerment and innovative behaviour are inextricably linked

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