Effect of Contextual Factors on Entrepreneurial Intentions of University Students of Selected Universities in Ilorin Kwara State, Nigeria

Abstract

Frequent change in government policies affecting the operations of small businesses has been held to account for key impediments to youth entrepreneurship advancement in Nigeria. Hence, this study explores how contextual factors influenced the entrepreneurial intentions of university students. The specific objectives were to inspect the extent to which economic context affects students’ business idea generation and to evaluate how the socio-cultural context affects students’ motivation to engage in critical innovative thinking. The study employed a survey approach to select thirty-one thousand, two hundred and fifty-five (31,255) penultimate and final year students of 3 universities, from which a five hundred and eighty-nine (589) sample size was determined using Godden (2004) formula. The data collected were analyzed using multiple regression and coefficient of determination. The findings of the study revealed that elements of economic context influence students’ business idea generation. Economic development, economic growth, resource control, and market externalities with β’s = .303, .258, .097 and .241 respectively, and elements of socio-cultural context, affect students’ motivation to engage in critical innovative thinking. The socio-cultural elements included societal values, ethics, belief system with β’s = .073, .389 and .346 respectively. The study concluded that both economic context and socio-cultural context, have a significant effect on students’ start-up ideas, students’ motivation, recognizing entrepreneurial possibilities and students’ interest in business start-up. The study recommended that University students should consider their social context and observe the value system or societal value, ethics and belief system in their society. Also, the Government at all levels should try to limit variations in its policies regarding start-ups and also ensure that its policies and laws favor start-ups.

Keywords

Contextual factors / entrepreneurial intentions / economic factors / Nigeria / socio-cultural factors / university students

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