Modelling the interplay of entrepreneurial abilities and support systems on entrepreneurial activity and success: The moderating role of societal value

Abstract

Entrepreneurship is essential in tackling youth unemployment and poverty in South Africa. Yet, little empirical research explores how entrepreneurial skills, support systems, and societal values impact university students' entrepreneurial activities and success. This study examines the effects of these factors on students’ entrepreneurial outcomes and investigates how societal values may influence the relationship between activity and success. Conducted among students at the University of the Western Cape and the University of Mpumalanga, the research employed a quantitative, positivist approach. Data from 314 students were collected via a structured questionnaire, and validated constructs were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the proposed relationships. Results show that entrepreneurial skills and support systems significantly drive entrepreneurial activity, which in turn positively influences entrepreneurial success. Societal values also directly predict success, but they do not significantly moderate the link between activity and success. Overall, entrepreneurial competencies and support mechanisms are crucial for student outcomes, while societal values enhance success but have limited moderating effects. This research is among the first in South Africa to integrate empowerment theory and an expanded Theory of Planned Behaviour to explain student entrepreneurship. It offers valuable insights for higher education institutions, policymakers, and entrepreneurship programmes aiming to promote success in emerging economies.