Self-esteem, need for achievement, risk-taking propensity and consequent entrepreneurial intentions

Abstract

Background: Entrepreneurship is an important economic driver, and universities are increasingly trying to create an entrepreneurial mindset among their students. This involves nurturing certain personality traits congruent with entrepreneurial intentions, such as inter alia self-esteem, a need for achievement and a risk-taking propensity. Aim: This study aimed to determine the influence of self-esteem and need for achievement on students' risk-taking propensity and, consequent, entrepreneurial intentions. Setting: This study was conducted on students from two South African universities. Methods: Data were collected using a self-administered questionnaire distributed via the online platforms of two universities to a sample of 502 students. Data analysis included confirmatory factor analysis and path analysis. Results: Confirmatory factor analysis suggests that the influence of self- esteem and the need for achievement on students' risk-taking propensity and, consequent, entrepreneurial intentions is a four-factor model that is valid and reliable. The path analysis estimates indicate that self-esteem and the need for achievement explain 26% of the variance of students' risk-taking propensity, which, together with its predictors, explains 24% of the variance in their entrepreneurial intentions. Conclusion: The findings highlight the importance of a high risk-taking propensity in forging students' entrepreneurial intentions, and the salience of nurturing students' self-esteem and need for achievement in encouraging them to embrace calculated risks. Contribution: This study confirms that a high risk-taking propensity is a determinant of students' entrepreneurial intentions and highlights the importance of developing tactics to nurture students' self-esteem and need for achievement in order to enable them to embrace calculated risks.