With soaring unemployment rates coupled with stifled growth and rising inequality, the economic outlook in South Africa is disheartening. Entrepreneurial activity is viewed as a catalyst of economic development, and as such, government and policy makers should be creating an environment in which the determinants of entrepreneurship can be fostered.
Entrepreneurial intention has been shown to be a leading indicator of future entrepreneurial activity. With an understanding of the links between entrepreneurial intention, entrepreneurial activity, and economic growth, it is clear that the South African economy faces a challenge; not only is economic development slow, but levels of entrepreneurial intention are low.
This research paper planned to study the significance of the Theory of Planned Behaviour through structural equation modelling, as a predictor of entrepreneurial intention within a sample that has previously received little attention, and is commonly known to produce numerous entrepreneurs including high impact entrepreneurs; the South African Jewish Community.
The results illustrate that the Theory of Planned Behaviour was a sound model with the sample data; however the Theory of Planned Behaviour did not provide a significant prediction of entrepreneurial intention within the South African Jewish Community.
Further analysis discovered that within the Jewish Community of South Africa, perceived behavioural control provided powerful predictive strength of entrepreneurial intention. Attitude toward the behaviour and subjective norms provided insignificant predictive strength of entrepreneurial intention.