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Entrepreneurial Intentions and Start-Up Realities: the Case of Industrial Design Students in South Africa

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Entrepreneurial Intentions and Start-Up Realities: the Case of Industrial Design Students in South Africa ENTREPRENEURIAL INTENTIONS AND START-UP REALITIES: THE CASE OF INDUSTRIAL DESIGN STUDENTS IN SOUTH AFRICA by ALTHEA ELIZABETH MVULA (50785346) submitted in accordance with the requirements for the degree of DOCTOR OF COMMERCE in the subject of BUSINESS MANAGEMENT at the UNIVERSITY OF SOUTH AFRICA SUPERVISOR: DR D. VISSER CO- SUPERVISOR: PROF J.W. STRYDOM JUNE 2018 DECLARATION I declare that the thesis Entrepreneurial intentions and start-up realities: The case of industrial design students in South Africa is my own work and that all the sources that I have used or quoted have been indicated and acknowledged by means of complete references. ________________________ ________________________ Signature Date Ms Althea Elizabeth Mvula ii DEDICATION This thesis is dedicated to my son, Elmo De Witt for inspiring me and motivating me to study. Thank you for your support, love, belief and encouragement. Thank you for reading, editing and formatting my work. Thank you for being an excellent sounding board. Thank you for your understanding and support throughout my study. You inspire me to become a better person. iii ACKNOWLEDGEMENTS Firstly, I would like to specially thank Dr. Patrick Ebewo JR for his assistance in analysing my quantitative data. Thank you to Dr Liz Archer who analysed the qualitative section of the study. To Nkosinathi Sithole and Rui Costa Mousinho for your support in recording the qualitative data. To Maupi Letsoalo for the descriptive analysis. To Tom Jackson for the language editing. To my friends, Pamela Mdingi, Venitia Govender, Yvonne Senne and Motswana Molotlegi, thank you for your support and for always being there for me, I am fortunate to have you in my life. Thank you to my employer, the Tshwane University of Technology (TUT), for granting me this opportunity to study. A special thank you to Dr Edgar Nesamvuni for your support. To Dilla Wright and Zukile Matshaya at the Research and Innovation division of TUT for your patience and assistance. Thanks to the NRF for the grant, and to the Department of Higher Education for the DHET grant. To Dr Kgomotso Masilo, thank you for your support. Thanks to Portia Tladi, Catherine Morake, Elizabeth Mpshe and Karina Schuring. Thanks also to the Cape Peninsula University of Technology (CPUT), University of Johannesburg (UJ) and TUT’s Department of Industrial Design for assisting with the data collection. Thank you to all the participants in the study; the students - without you this study was not possible. Professor Francisco Liñán for allowing me to use your questionnaire. I would like to thank my two supervisors, Professor Johan Strydom and Dr Thea Visser for their guidance and support. Lastly but most important, a huge thank you to God. I am nothing without You. And to Pastor Benjamin Arde for always praying for and with me. Thank you for always being there for our family. iv ABSTRACT Industrial design is recognised for the value-oriented benefits it offers to businesses. Industrial design ensures that new products are more efficient, usable, convenient and safe to use within the evolving business environment. One of the important factors for the continuous achievement of high product quality and general economic growth and stability in countries such as West Germany, Korea and Japan is their sound industrial design base. Industrial design programmes can be instrumental to ignite an entrepreneurial and innovation spirit to assist in curbing the high unemployment rate and very low levels of entrepreneurial intentions in South Africa. The core of tertiary industrial design students has unique capabilities that can assist the South African economy to stimulate manufacturing, job creation and economic growth. The purpose of this study was to investigate the entrepreneurial intentions among industrial design students enrolled for the programme in Three-Dimensional Design, at Universities of Technology in South Africa. In addition, this study investigates the relationship between entrepreneurial intentions and actual business formation by graduates of the programme. Studies have been carried out in South Africa on entrepreneurial intentions, but not on the formation, occurrence and implementation of entrepreneurial intentions amongst industrial design students, specifically. To test the links between business education and entrepreneurial intentions, a research model based on Ajzen’s (1985) Theory of Planned Behaviour was adopted and tested using quantitative empirical data collected from students in industrial design at two Universities of Technology. Quantitative data were collected from a sample of 161 participants using a validated self-administered questionnaire. IBM SPSS and STATA were used to conduct descriptive statistics, Chi-square tests, factor analysis, reliability and structural equation modelling on the primary quantitative data. The empirical evidence partially supports the effectiveness of the Theory of Planned Behaviour in predicting entrepreneurial intentions. Although perceived social norms and self-efficacy is positively related v to entrepreneurial intentions, results failed to reach statistical significance. However, personal attitude was found to mediate the relationship between these variables and entrepreneurial intention. Whilst business education is positively related to self-efficacy, entrepreneurial knowledge is positively related to higher levels of personal attitude and self-efficacy. The transformation of entrepreneurial intentions into actual business start-ups were investigated using qualitative empirical data collected from past graduates of the Three-Dimensional Design programme. Qualitative data were collected from a sample of 22 graduates through structured interviews. ATLAS.ti version 7.5.9 was used to analyse the qualitative data. The researcher provided evidence that there is a relationship between entrepreneurial intentions and the actual start-up of a business, as 45.5 per cent of graduates started businesses. Furthermore, business education positively influenced the actual start-up of businesses. However, graduates experienced many challenges to business start-up, with implications for the teaching of business subjects and for policy makers. Key terms Entrepreneurship, Entrepreneurial Intention, Entrepreneurship Education, Business Education, Business Management, Business Start-ups, Personal Attitude; Three-Dimensional Design, University Students, Industrial Design Students and Graduates vi TABLE OF CONTENTS Page DECLARATION ....................................................................................................... ii DEDICATION ......................................................................................................... iii ACKNOWLEDGEMENTS....................................................................................... iv ABSTRACT ............................................................................................................. v LIST OF ABBREVIATIONS ................................................................................. xvii CHAPTER 1: INTRODUCTION AND BACKGROUND TO THE STUDY ............... 1 1.1 INTRODUCTION ....................................................................................... 1 1.2 RESEARCH BACKGROUND .................................................................... 1 1.2.1 The economy and role of entrepreneurship ............................................... 1 1.2.2 Entrepreneurial intentions ......................................................................... 3 1.2.3 Entrepreneurship and industrial design ..................................................... 4 1.3 AIM AND SIGNIFICANCE OF THE STUDY .............................................. 5 1.4 THE IDENTIFIED RESEARCH GAP ......................................................... 6 1.5 PROBLEM STATEMENT .......................................................................... 7 1.6 RESEARCH QUESTIONS ........................................................................ 8 1.7 RESEARCH OBJECTIVES ....................................................................... 8 1.7.1 Primary objective ....................................................................................... 8 1.7.2 Secondary objectives ................................................................................ 9 1.8 RESEARCH MODEL ................................................................................. 9 1.9 RESEARCH HYPOTHESES ................................................................... 11 1.10 RESEARCH METHODOLOGY ............................................................... 12 1.10.1 Population and sampling ......................................................................... 13 1.10.2 Data collection ......................................................................................... 14 1.10.3 Data analysis ........................................................................................... 15 1.10.4 Validity and reliability ............................................................................... 16 1.10.5 Delineation, limitations and assumptions of the study ............................. 16 1.11 CONTRIBUTION OF THE STUDY .......................................................... 18 1.12 ETHICAL CONSIDERATIONS ................................................................ 19 1.13 LAYOUT OF CHAPTERS ....................................................................... 19 1.14 CONCLUSION .......................................................................................
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