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South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812


BOTHA, Melodi  and  TALJAARD, Amorie. The bidirectional relationship between entrepreneurial intention and entrepreneurial competencies for nascent and existing entrepreneurs. S. Afr. j. econ. manag. sci. [online]. 2019, vol.22, n.1, pp.1-12. ISSN 2222-3436.

BACKGROUND: Although many scholars focus their research efforts on predicting entrepreneurial intention, these scholars have not determined the bidirectional relationship between entrepreneurial intention and competencies. AIM: This article investigates whether entrepreneurial intention and various individual entrepreneurial competencies influence each other. The human agency and social cognitive theories suggest that these constructs have bidirectional relationships. Furthermore, the direction and strength of these relationships are established. SETTING: Results from a sample of 342 nascent and existing entrepreneurs from South Africa are drawn. METHOD: A quantitative research study is undertaken and structural equation modelling conducted. As far as could be determined, this study is the first to test the model fit between entrepreneurial intention and the individual entrepreneurial competencies in one model RESULTS: The findings provide evidence of a bidirectional relationship between entrepreneurial intention and various entrepreneurial competencies, and the outcome thereof might lead to an increased business start-up. The strongest positive relationships were observed between entrepreneurial intention and self-efficacy, opportunity recognition, conveying a compelling vision, value creation through innovation (observing customer usage) and perseverance. Previous scholars confirmed that self-efficacy is a strong predictor of entrepreneurial intention. The article found a moderate positive significant bidirectional relationship between entrepreneurial intention and self-efficacy. CONCLUSION: The findings could assist policy-makers, educators, as well as potential, nascent and start-up entrepreneurs with the understanding that these specific entrepreneurial competencies are necessary for a successful business venture or for moving to the next stage of the venture life cycle. In addition to the previously mentioned practical implications, this study also shows educators, policy-makers and academics that they need to adapt their entrepreneurial training programmes to ensure that self-efficacy and entrepreneurial intention are taught simultaneously as these constructs influence each other.

Keywords : Entrepreneurial intention; individual entrepreneurial competencies; bidirectional relationship; self-efficacy; nascent and existing entrepreneurs.

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