Research published in the International Journal of Management and Enterprise Development has shed new light on what makes young people in Ghana more likely to start their own businesses.
Victoria Mann, Ernest Yaw Tweneboah-Koduah, Stephen Mahamah Braimah, and Kwame Adom of the Department of Marketing and Entrepreneurship at the University of Ghana Business School in Legon-Accra surveyed 600 unemployed young adults to help them understand entrepreneurial motivations. They found through an analysis of the survey results using structural equation modelling that having a positive attitude and feeling in control of one’s actions were the biggest factors influencing whether a respondent had the desire to become an entrepreneur. The team also found that when the same young people had the support of those around them and a strong desire to start a business they were more likely to actually go through with it.
Interestingly, and in some ways paradoxically, the researchers also showed that despite these various factors encouraging entrepreneurialism in young people, most of the young adults surveyed said they were unsure of themselves, self-doubt was common. They often reported that they needed more help and guidance in order to feel truly confident in their business aspirations and ventures.
The researchers suggest that their findings could help policymakers in Ghana devise new approaches to better support and encourage young entrepreneurs and so help this developing nation thrive. They add that by understanding the perceived and real problems that are holding back young people and preventing them from from starting their own businesses, they could devise ways to give them the boost they need to succeed.
It is worth adding that their analysis explained only 38% of the variance in the actual entrepreneurship behaviour of those surveyed. The team suggests that future studies need to investigate the mediation or moderation roles of other environmental factors to explain that variance more completely. Policies that reduce barriers to entrepreneurialism due to costs and taxes might also be looked at and the issues addressed at the governmental level to encourage new businesses where enthusiasm among young entrepreneurs is stifled by limiting financial pressures.
Mann, V., Tweneboah-Koduah, E.Y., Braimah, S.M. and Adom, K. (2023) ‘Understanding entrepreneurship behaviour among the youth: a behavioural change theory perspective’, Int. J. Management and Enterprise Development, Vol. 22, No. 1, pp.1–24.