The influencing role of social capital in the formation of entrepreneurial intention

Abstract

This paper investigated the relationship between social capital and entrepreneurial intention using the theory of planned behaviour (TPB). The study was carried out by means of a cross-sectional survey and included 329 final-year commerce students at a rural university in the Limpopo province. A structured questionnaire was used to collect the data. The results show that social capital is significantly related to entrepreneurial intention, the attitude towards becoming an entrepreneur and perceived behavioural control. The findings indicate that the TPB is a valuable model for understanding the relationship between social capital and entrepreneurial intention. The results indicate that individuals are more likely to form intentions to start a business when they think that their decision to do so would be approved of by those close to them, when entrepreneurial activity is positively valued in the society, when they know other people who are entrepreneurs and successful entrepreneurs, and believe that they would be supported by those close to them when starting a business. This study contributes to the body of knowledge by shedding light on the role of social capital in the formation of entrepreneurial intention in a South African context.

Keywords: social valuation of entrepreneurship, social support, entrepreneurial role models, rural entrepreneurship development, Limpopo, South Africa