Abstract

Several previous scholars have investigated the relationship between entrepreneurial intention (EI) and entrepreneurial competencies (ECs), yet categorising individual ECs in relation to higher-order competence constructs has not been explored. Based on the previous literature studies, four higher-order constructs are identified, namely cognitive, functional, social/personal and meta-competence. Investigating which ECs are categorised according to the four higher-order constructs in this relationship with EI is important as it contributes to the development and training of these antecedents of entrepreneurial behaviour. Data are collected from 203 nascent entrepreneurs in South Africa and analysed by using structural equation modelling. In this developing country context, only two higher-order constructs, cognitive/functional competence and social/personal competence, fit the data in relationship with EI. The strongest positive relationships were found between the cognitive and functional higher-order construct, opportunity recognition and opportunity assessment, conveying a compelling vision and creative problem-solving. The cognitive and functional higher-order competence construct also showed a strong positive relationship with EI. To improve pedagogical interventions and enhance EI, educators and policymakers can use these findings in entrepreneurship programmes to ensure that this higher-order competence construct with the individual ECs in this category are developed simultaneously rather than individually. Research efforts and support programmes that include cognitive and functional higher-order competence constructs for nascent entrepreneurs should therefore not be neglected. Such efforts and programmes can encourage EI, which in turn can enhance entrepreneurial behaviour, thereby potentially contributes to economic growth and employment creation.

Highlights

  • Entrepreneurship is widely argued to be critical for alleviating poverty and unemployment. Pendame (2014) stresses that the development of entrepreneurial intention (EI) and the creation of new businesses are of utmost importance for economic advancement

  • The combined cognitive and functional as well as social/personal competence resulted in two higher-order competence constructs that were tested with their individual entrepreneurial competencies (ECs) in relation to EI

  • The missing link between EI and action could be the lack of having adequate ECs

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Summary

Introduction

Entrepreneurship is widely argued to be critical for alleviating poverty and unemployment. Pendame (2014) stresses that the development of entrepreneurial intention (EI) and the creation of new businesses are of utmost importance for economic advancement. Pendame (2014) stresses that the development of entrepreneurial intention (EI) and the creation of new businesses are of utmost importance for economic advancement. This is even more important in the context of a developing country, for example, South Africa with its alarming. As an efficiency-driven economy, South Africa has been identified as one of the least supportive countries constraining entrepreneurship, based on the entrepreneurial framework conditions set out in the Global Entrepreneurship Monitor (GEM) report, with an average (AVE) rating of 4.0 for 8 out of 12 conditions (Herrington and Kew, 2018). There is evidence that the self-efficacy and other entrepreneurial competencies (ECs) of nascent entrepreneurs correlate highly with EI, which enhances entrepreneurial behaviour (Clercq and Arenius, 2006; Hsu et al, 2017)

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