Measuring University Students’ Perceptions About the Role of Self-efficacy on Entrepreneurial Intentions in Cape Town

Abstract

Entrepreneurial self-efficacy is best perceived as a multidimensional variable built from individuals’ beliefs about their abilities and capabilities for tackling the challenges and nurture entrepreneurial intentions towards the establishment of a new venture. Numerous studies are unanimous about the insufficient level of entrepreneurship in South Africa, as well as its below average total entrepreneurial activity of 7.8per cent compared to all efficiency-driven economies (developed countries) which have 11.4 per cent of activity. This study conducted in Cape Town—South Africa—aims at identifying the factors of self-efficacy and the role self-efficacy plays in rising entrepreneurial intentions among university students. Data were collected with the use of a questionnaire survey, where entrepreneurship students were the respondents. SPSS 22 was used to conduct bivariate and multivariate tests of statistical significance. The reliability of the data collection instrument was tested with the use of Cronbach’s Alpha and the variable of self-efficacy scored a reliability level of 0.877. The validity was ensured by the assessment of the instrument by two statisticians and two academics who are experts in their fields. The findings reveal the existence of a positive relationship between entrepreneurship university students’ self-efficacy and their entrepreneurial intentions. Recommendations to enhance self-efficacy among students and other aspiring business people have been formulated.