The Nexus between locus of control and entrepreneurial intention among final year University Students in Ghana

Abstract

The low job creation prospects in Ghana has intensified efforts to boost young university students’ intention to start entrepreneurial activity in the future. Several efforts have been triggered at national levels but not much progress has been made and attempts to understand the phenomenon has been inconclusive. Studies have suggested examining the issue from a psychological perspective to offer a more comprehensive understanding of the mind-set of young people regarding entrepreneurship. Several psychological factors have been suggested but one that has been loosely conceptualized within the context is locus of control. This study, therefore, examined locus of control as a key explanatory factor for undergraduate students’ entrepreneurial intention. Data was gathered from 298 final year undergraduate students through validated survey instruments. Analysed data using hierarchical multiple regression revealed both internal and external locus of control significantly predicted entrepreneurial intention but external locus of control was found to be a better predictor. The study re-echoes the need to create an entrepreneurial environment that is capable of whipping the interest of students to develop the mind-set for starting their own business venture after graduating from the university. The study also highlights the implications for all those in the entrepreneurial eco-system in Ghana.

Keywords: Locus of Control, Internals and Externals, Entrepreneurial Intention, Undergraduate Students, University of Ghana, Ghana