FACTORS THAT INFLUENCE ENTREPRENEURSHIP IN UNIVERSITY STUDENTS: A CASE STUDY OF TWO DEPARTMENTS AT THE UNIVERSITY OF THE WESTERN CAPE (REPUBLIC OF SOUTH AFRICA)

Abstract

Entrepreneurship plays a huge role in increasing the economic growth of a country and addressing social challenges by providing jobs to unemployed citizens. It is also a major engine driver for innovation and competitiveness of the nation. Currently, South Africa is faced with problems of high unemployment (rate) and slow economic growth, compared to other developing nations such as Brazil, China, India and Russia. There has been growing financial support from many different stake holders, in an attempt to foster entrepreneurship in South Africa. For instance, First National Bank (FNB) - Endeavour S.A partnership and government bodies like the Department of Trade and Industry (DTI) and, the Small Enterprise Development Agency (SEDA), have offered support to aspiring
entrepreneurs. However, it appears that these efforts have done little to promote entrepreneurial activities in the country. Therefore, there is a need to understand, the motivation factors and challenges that influence students’ decisions to start a business.