Impediments affecting entrepreneurial intent in South African MBA graduates

Abstract

South Africa suffers from high rates of unemployment, low economic growth and has experienced a drop in entrepreneurial intention. Research has established that entrepreneurship plays a vital role in stimulating economic growth and creating employment. Therefore, a better understanding is required around the factors preventing individuals from taking the proverbial leap into entrepreneurship. The purpose of this study was to assess the extent to which situational, environmental and psychological factors impeded entrepreneurial intent. This was tested amongst a group of well-educated MBA graduates through the use of face-to-face, semi-structured interviews to probe emerging perceptions around entrepreneurial intention. The findings from the research identified that the assumption behind MBA graduates being the ideal demographic to become entrepreneurs within South African was incorrect. The three key findings that impede MBA graduate's entrepreneurial intent was the high risk profiles of MBA graduates, socio-economic factors of the country relating to highly-skilled MBA graduates, and the potential entrepreneur's locus of control and propensity to act on entrepreneurial behaviour.