Institutional determinants of entrepreneurial intention: The need for strategic alliances and entrepreneurial ecosystem

Abstract

University education is no longer a passport to secure employment for graduates. In Zambia, for example, 72.3% of unemployed graduates are below the age of 35. Youth unemployment represents an enormous cost to society in terms of lost potential for economic growth, negative return on investment in education as well as a potential increase in vices such as crime. It appears the number of graduates is increasing while available job opportunities are fewer. This is compelling stakeholders to consider initiatives that promote new venture creation as an additional viable career option. Extant literature indicates that individuals with higher intention to start a business are more likely to actually engage in entrepreneurship than those with low or no intention. Understanding the determinants of entrepreneurial intention (EI), therefore, becomes important. In exploring the determinants of EI, prior studies investigate the effects of individual factors, contextual (institutional) factors and entrepreneurship education (EE) in isolation from each other; integrative models are lacking. Moreover, literature on the effect of EE on EI shows mixed conclusions. There is scanty research on EE and EI in developing countries such as Zambia and this limits the generalisability of research conclusions. The current study, by considering EE as the kernel, firstly examines individual and institutional determinants of EI. Secondly, it explores whether EE affects the relationships between EI and its individual and institutional determinants. To explore the interconnectedness of these issues while relying on a qualitative research strategy, the paper presents empirical results from 13 semi-structured interviews; interviewees being final year undergraduate students, entrepreneurship educators and practitioners in enterprise support organisations in Zambia. The findings indicate that the effect of EE on EI should be evaluated in conjunction with factors at the individual and institutional levels. This means that relevant individual and institutional factors exert their influence on EI directly and indirectly through their impact on the effectiveness of EE. The conclusions suggest that to promote graduate entrepreneurship, multifaceted and concerted efforts (strategic alliances) will be required from policymakers (to shape institutions), educators (to design and deliver appropriate EE content and pedagogy) and practitioners (to devise and implement collaborative enterprise support strategies and mechanisms).