Entrepreneurship is an imperative driving force for innovation in a country. Nevertheless, there is lack of systematic investigation in the area of barriers to entrepreneurship and its effects on the intentions of the youth becoming an entrepreneur. As a result, the primary objective of the study is to analyze perceived barriers to youth entrepreneurship. The study used responses from 186 students of a tertiary institution, who were selected based on convenience sampling method. A 5 point likert scale was used to measure the responses and the data analyzed with descriptive statistics, correlation and principal component analysis. The results indicate that youth perceive lack of capital, lack of skill, lack of support, lack of market opportunities and risk as the main barriers to youth entrepreneurship. Nine (9) factors with Eigenvalues greater than one accounted for 73.35% of the variance explained. The study recommends that, stakeholders precautiously design courses and policies to minimize the perception of entrepreneurship barriers and maximize motivational factors. Entrepreneurship education be designed to enhance skills and knowledge in entrepreneurship and also to reorient students’ career choices towards entrepreneurship. Awareness campaign of government support instruments should be done. Policy makers should implement sound economic policies to boost the country’s economic environment.
| Published in | American Journal of Theoretical and Applied Statistics (Volume 9, Issue 5) |
| DOI | 10.11648/j.ajtas.20200905.13 |
| Page(s) | 201-209 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2020. Published by Science Publishing Group |
Youth, Barriers, Entrepreneurship, Principal Component Analysis, Correlation
| [1] | Reynolds, P. D., Hay, M., & Camp, S. M. (1999). Global Entrepreneurship Monitor: Executive Report. Kaufman Centre for Entrepreneurial Leadership, evelopment, 77, 311-327. |
| [2] | Dei-Tumi, E. (2011), “National Youth Entrepreneurship Policy” Speech Delivered During a Workshop Organized by the Institute of Continuing and Distance Education, University of Ghana, on the Theme: “Policy Options for Youth empowerment in Ghana” at the Institute of African Studies on Friday, October 21, 2011. |
| [3] | Shukla, S. and Awasthi, D. (2001), Study on Entry Barriers to Entrepreneurship, (Unpublished Report), New Delhi, Government of India, Ministry of Micro, Small and Medium Enterprises. |
| [4] | United Nations Development Program (2000). World Development Report. United Nations. |
| [5] | Mkhize, F., (2010). ‘Shaping the Nation through Small Business: Focus on Budget 2010’, Finweek, 25 February. |
| [6] | Uneca and Ecowas (2010). Unemployment, Underemployment and Vulnerable Employment in West Africa: Critical Assessment and Strategic Orientations. http://www.uneca.org/wa/documents/RapportEco2010-%20Partie2ENG |
| [7] | Kanyenze, G., Mhone, G. C. Z., and Sparreboom, T., (2000). “Strategies to combat youth unemployment and marginalization in Anglophone Africa”. ILO/SAMAT Discussion. p. 14. |
| [8] | Ghana Statistical Service. 2011. 2010 Population Census of Ghana. Ghana Statistical Service, Accra, Ghana. |
| [9] | Gabreski, L. (2017). The future of Africa’s economic development lies with young entrepreneurs. Retrieved from https://www.eventerprise.com/blog/future-africas-economic-development-lies-young-entrepreneurs/ |
| [10] | Premand, P., Brodmann, S., Almeida, R., Grun, R., & Barouni, M. (2016). Entrepreneurship education and entry into self-employment among university graduates. World D1. |
| [11] | Adenle, A. A. (2017). Building the African economy: Is president Obama’s entrepreneurial public management program sustainable in Africa? Journal of Entrepreneurship and Public Policy, 6 (1), 92-107. |
| [12] | Dzisi, S., Odoom, F. D., & Gligah, B. (2018). Entrepreneurship training and skills development in Africa: Evidence from Koforidua Technical University, Ghana. International Journal of Economics and Business Research, 15 (4), 509-523. |
| [13] | Luthje, C. & Franke, N. (2003). The ‘making’ of an entrepreneur: Testing a Model of Entrepreneurial intent among engineering students at MIT. Research and Development Management, 33 (2), 135-147. |
| [14] | Sitaridis, I. K. & Kitsios, F. (2016). Students’ Perceptions of Barriers to Entrepreneurship Εκπαίδευση, Δια Βίου Μάθηση, Έρευνακαι Τεχνολογική Ανάπτυξη, Καινοτομία και Οικονομία, 1: 524-535. |
| [15] | Martins, S., Couchi, C., Parat, L., Carmine, F., Doneddu, R., Salmon, M. (2004) Barriers to entrepreneurship and business creation, European Entrepreneurship Cooperation Observatory. |
| [16] | Kebaili, B., Al-Subyae, S. S., & Al-Qahtani, F. (2017). Barriers of entrepreneurial intention among Qatari male students. Journal of Small Business and Enterprise Development, 24 (4), 833–849. https://doi.org/10.1108/JSBED-11-2016-0186 |
| [17] | Abimbola, O. H., Olowu, A. U., & Paul, D. (2016). Youth Unemployment and Entrepreneurship Prospects in Nigeria: A Developmental Perspective. Ife Centre for Psychological Studies/Services, Ile Ife, Nigeria ISSN: 1117-1421 |
| [18] | Fox, L., Senbet, L. W., and Simbanegavi, W. (2016). Youth employment in Sub-Saharan Africa: Challenges, constraints and opportunities Journal of African Economies, 25 (2), i3-i15 http://dx.doi.org/10.1093/jae/ejv027 |
| [19] | Elder, S. et al., (2015). Labour market transitions of young men and women in Eastern Europe and Central Asia Geneva: ILO http://www.ilo.org/employment/areas/youth-employment/work-foryouth/publications/regionalreports/WCMS_357353/lang--en/index.htm |
| [20] | Elder, S. and Koné, K. S. (2014). Labour market transitions of young women and men in Sub-Saharan Africa. Geneva: ILO http://www.ilo.org/wcmsp5/groups/public/--ed_emp/documents/publication/wcms_235754.pdf |
| [21] | Grant, U. (2012). Urbanization and the employment opportunities of youth in developing Countries Paper commissioned for the EFA Global Monitoring Report, Youth and skills: Putting education to work http://www.youthmetro.org/uploads/4/7/6/5/47654969/217879e.pdf |
| [22] | Betcherman, G. and Khan, T. (2015). Youth employment in Sub-Saharan Africa: Taking stock of the evidence and knowledge gaps Ottawa: IDRC https://www.idrc.ca/sites/default/files/sp/ |
| [23] | Baah-Boateng, W. (2014). Youth employment challenges in Africa: Policy options and agenda for Future research Paper presented at the AERC biannual conference in Lusaka, Zambia, December. https://www.researchgate.net/profile/William_BaahBoateng2/publication/272418275_Youth_employment_challenges_in_Africa_Policy_options_and_agenda_for_future_research/li |
| [24] | Anyanwu, J. C. (2013). Characteristics and macroeconomic determinants of youth employment in Africa African Development Review, 25 (2), 107-129 http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2013.12019.x/full |
| [25] | Msigwa, R. E., & Kipesha, E. F. (2013). Determinants of Youth unemployment in Developing Countries: Evidences from Tanzania. Journal of economics and sustainable development, 4, 67-76. |
| [26] | Wong, M Choo, S. (2009). Entrepreneurial intention: Triggers and barriers to new venture creation in Singapore. Singapore Management Review, 28 (2), 47-6. |
| [27] | Benzing, C., & Chu, M. H. (2009). A comparison of motivations of small business owners in Africa. Journal of Small Business and Enterprise Development, 16 (1), 60-77. |
| [28] | Cooper, D. R. & Schindler, P. S. (2003). Business Research Methods. New York: McGraw Hill Inc. Ghana Ministry of Youth and Sports. 2010. “National Youth Policy of Ghana: Towards an Empowerred Youth, Impacting Positively on National Development”. Accra, Ghana. |
| [29] | Pihie, Z. A. L. (2009). Entrepreneurship as a career choice: An analysis of entrepreneurial self-efficacy and intention of university students. European Journal of Social Sciences. 9 (2), 338-349. |
| [30] | Leech, N. L., Barrett, K. C. & Morgan, G. A. (2005). SPSS for intermediate statistics, use and interpretation. New Jersey: Lawrence Erlbaum Associates Inc. |
| [31] | Zheng, Zeyu, Podobnik, Boris, Feng, Ling, & Li, Baowen. (2012). Changes in cross-correlations as an indicator for systemic risk. Scientific reports, 2, 888. |
| [32] | Billio, Monica, Getmansky, Mila, Lo, Andrew W, & Pelizzon, Loriana. (2012). Econometric measures of connectedness and systemic risk in the finance and insurance sectors. Journal of financial economics, 104 (3), 535-559. |
| [33] | Kritzman, Mark, Li, Yuanzhen, Page, Sebastien, & Rigobon, Roberto. (2010). Principal components as a measure of systemic risk. |
APA Style
Alice Constance Mensah, Joseph Dadzie. (2020). Application of Principal Component Analysis on Perceived Barriers to Youth Entrepreneurship. American Journal of Theoretical and Applied Statistics, 9(5), 201-209. https://doi.org/10.11648/j.ajtas.20200905.13
ACS Style
Alice Constance Mensah; Joseph Dadzie. Application of Principal Component Analysis on Perceived Barriers to Youth Entrepreneurship. Am. J. Theor. Appl. Stat. 2020, 9(5), 201-209. doi: 10.11648/j.ajtas.20200905.13
AMA Style
Alice Constance Mensah, Joseph Dadzie. Application of Principal Component Analysis on Perceived Barriers to Youth Entrepreneurship. Am J Theor Appl Stat. 2020;9(5):201-209. doi: 10.11648/j.ajtas.20200905.13
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ajtas.20200905.13,
author = {Alice Constance Mensah and Joseph Dadzie},
title = {Application of Principal Component Analysis on Perceived Barriers to Youth Entrepreneurship},
journal = {American Journal of Theoretical and Applied Statistics},
volume = {9},
number = {5},
pages = {201-209},
doi = {10.11648/j.ajtas.20200905.13},
url = {https://doi.org/10.11648/j.ajtas.20200905.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20200905.13},
abstract = {Entrepreneurship is an imperative driving force for innovation in a country. Nevertheless, there is lack of systematic investigation in the area of barriers to entrepreneurship and its effects on the intentions of the youth becoming an entrepreneur. As a result, the primary objective of the study is to analyze perceived barriers to youth entrepreneurship. The study used responses from 186 students of a tertiary institution, who were selected based on convenience sampling method. A 5 point likert scale was used to measure the responses and the data analyzed with descriptive statistics, correlation and principal component analysis. The results indicate that youth perceive lack of capital, lack of skill, lack of support, lack of market opportunities and risk as the main barriers to youth entrepreneurship. Nine (9) factors with Eigenvalues greater than one accounted for 73.35% of the variance explained. The study recommends that, stakeholders precautiously design courses and policies to minimize the perception of entrepreneurship barriers and maximize motivational factors. Entrepreneurship education be designed to enhance skills and knowledge in entrepreneurship and also to reorient students’ career choices towards entrepreneurship. Awareness campaign of government support instruments should be done. Policy makers should implement sound economic policies to boost the country’s economic environment.},
year = {2020}
}
TY - JOUR T1 - Application of Principal Component Analysis on Perceived Barriers to Youth Entrepreneurship AU - Alice Constance Mensah AU - Joseph Dadzie Y1 - 2020/09/21 PY - 2020 N1 - https://doi.org/10.11648/j.ajtas.20200905.13 DO - 10.11648/j.ajtas.20200905.13 T2 - American Journal of Theoretical and Applied Statistics JF - American Journal of Theoretical and Applied Statistics JO - American Journal of Theoretical and Applied Statistics SP - 201 EP - 209 PB - Science Publishing Group SN - 2326-9006 UR - https://doi.org/10.11648/j.ajtas.20200905.13 AB - Entrepreneurship is an imperative driving force for innovation in a country. Nevertheless, there is lack of systematic investigation in the area of barriers to entrepreneurship and its effects on the intentions of the youth becoming an entrepreneur. As a result, the primary objective of the study is to analyze perceived barriers to youth entrepreneurship. The study used responses from 186 students of a tertiary institution, who were selected based on convenience sampling method. A 5 point likert scale was used to measure the responses and the data analyzed with descriptive statistics, correlation and principal component analysis. The results indicate that youth perceive lack of capital, lack of skill, lack of support, lack of market opportunities and risk as the main barriers to youth entrepreneurship. Nine (9) factors with Eigenvalues greater than one accounted for 73.35% of the variance explained. The study recommends that, stakeholders precautiously design courses and policies to minimize the perception of entrepreneurship barriers and maximize motivational factors. Entrepreneurship education be designed to enhance skills and knowledge in entrepreneurship and also to reorient students’ career choices towards entrepreneurship. Awareness campaign of government support instruments should be done. Policy makers should implement sound economic policies to boost the country’s economic environment. VL - 9 IS - 5 ER -
Email: