Entrepreneurial intentions and start-up realities : the case of industrial design students in South Africa

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 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.