Entrepreneurship has been hailed as the engine that drives the economy of a nation and is imperative for job creation, economic competitiveness, innovation and the advancement of societal interest (Davey et al. 2011:335; Geldhof et al. 2014:431; Kim-Soon, Ahmad & Ibrahim 2014:1001; Sa & Holt 2019:122; Semrau, Ambos & Kraus 2016:5). Despite this, the potential of entrepreneurship has not been fully realised in many developing countries, including South Africa. According to South Africa’s Global Entrepreneurship Monitor (GEM) report, the country is characterised by low entrepreneurial activity and low job-creating new and established businesses ownership rates (Bowmaker-Falconer & Meyer 2022:15; Kerrin, Mamabolo & Kele 2017:1). Data pertaining to South Africa’s entrepreneurial patterns reveal that one of the core problems is individuals’ lack of confidence and skills to identify opportunities and take the risk to start new businesses (Herrington, Kew & Mwanga 2016/2017:58).

Early research into the link between personality and entrepreneurial intentions generally focused on personality traits such as locus of control, risk-taking propensity, the tolerance of ambiguity and the need for achievement. However, these studies were criticised for delivering inconsistent findings and often having poor methodological designs (Baum, Frese & Baron 2014:41; Drennan, Kennedy & Renfrow 2005:232). Consequently, in the 1970s and 1980s, the personality approach to studying entrepreneurial behaviour was discredited. Nonetheless, this approach gained new impetus in the 1990s, with credit given to the unifying five-factor model of personality, which constitutes extraversion, neuroticism, openness to experience, agreeableness and conscientiousness (Brandstätter 2011:222; Liu 2021:267). While Leutner et al. (2014:59) indicated that there is still much debate concerning the significance of personality as a predictor of entrepreneurial behaviour, Brandstätter (2011:229) and Liu (2021:267) stated that personality traits should not be disregarded as they contribute to an entrepreneurs’ way of thinking, doing, goal setting and achievements. Leutner et al. (2014:59) opined that narrow traits such as the need for achievement, self-confidence, innovativeness, stress tolerance, the need for autonomy and a proactive personality produce higher correlations with venture creation and success compared to the broad unmatched traits of the five-factor model of personality. Abbassi and Sta (2019:235) and Olszewska (2015:601) concurred highlighting that strengthening traits such asthe need for achievement, risk-taking propensity, self-esteem and set values positively influences entrepreneurial intentions.

In South Africa, there are two particularly salient socioeconomic challenges, namely, high unemployment and high inequality (Herrington & Kew 2015/2016:23; Moche et al. 2023). The National Development Plan, developed and published in November 2011, represents a blueprint of essential capabilities needed to transform the economy and society and aspires to eradicate poverty and lessen inequality in South Africa by 2030. Central to this plan is increasing employment levels through productivity growth and increasing the income of working individuals (NPC 2011). In addition, South Africa needs to create a more inclusive and diversified economy by enhancing levels of investment, expanding skills and human capital formation, as well as increasing net exports (Meyer, Muzindutsi & Chipeta 2017:35).

Entrepreneurial activity has been proven to advance the investment climate and support a country’s overall economic development. Therefore, it is crucial to develop an enthusiasm for entrepreneurship among the younger generation (Meyer & Meyer 2017:430; Olszewska 2015:597). Student entrepreneurship is an essential component of entrepreneurship research because it is during these formative years that an entrepreneurial conscience and attitude towards an entrepreneurial livelihood are shaped (Shirokova, Osiyevskyy & Bogatyreva 2016:387). The stimulation of student entrepreneurship by tertiary institutions is critical, because conventional education will no longer be sufficient to respond and adapt to the dire local and global economic environments (Malatjie 2020:113). As such, students will require entrepreneurial skills and assistance in developing certain personality traits for effective functioning in a complex economic environment (Malatjie 2020:114). Moreover, corporations are increasingly seeking, nurturing and rewarding young entrepreneurs with an entrepreneurial mindset and re-examining the degree to which their corporate culture allows for entrepreneurial thought and action (Davis, Hall & Mayer 2016:2).

In terms of this entrepreneurial mindset, self-esteem is a psychological characteristic that relates to people’s confidence in their abilities, where higher self-esteem affords individuals with the feeling that they will succeed in their endeavours. Abbassi and Sta (2019:236) and Herdjiono et al. (2017:7) stated that a higher level of self-esteem leads to entrepreneurial behaviour, optimism about the future and the courage to experience failure. Risk-taking is correlated with self-esteem, as the higher the individuals’ belief in their ability, the greater their self-efficacy or belief in their perceived control over the success of their decisions and actions (Markman, Baron & Balkin 2005:5) and the greater their readiness to try what others perceive as being too risky (Herdjiono et al. 2017:7). The need for achievement personality trait relates to the desire to excel, where individuals with a high need for achievement are driven to succeed (Anra, Ayun & Romios 2020:31). This success not only relates to accomplishment but also to surpassing relevant other (Murray 1938:164), suggesting that achieving recognition from referents is important. Exceling at anything typically necessitates accepting a degree of risk, meaning that risk propensity is associated with the need for achievement (McClelland 1987). The willingness to take risks is considered one of the main characteristics of entrepreneurship. Entrepreneurs are not afraid to take risks but do so by first evaluating the size of the risk and the risk-reward balance, that is, they take calculated risks (Agustina & Fauzia 2021:97). Therefore, individuals who are risk-averse are unlikely to be motivated to start a new business venture.

The concept of the entrepreneurial mindset is growing within tertiary education institutions as these institutions recognise the importance of instilling their students with a skill set that will adequately prepare them for the workplace of the 21st century. The 21st century’s workplace is complex, requiring creative solutions for coping and succeeding in the ever-changing environment (Weilerstein & Monroe-White 2017). Entrepreneurial mindset factors, including the need for achievement, self-esteem and a risk-taking propensity, are important precursors to developing students’ entrepreneurial intentions (Abbassi & Sta 2019:235). Given the high unemployment rate yet simultaneous low entrepreneurial activity rate in South Africa, more research is needed in the area of entrepreneurial mindset factors. Most studies focus on individual personality traits and their direct linkage to entrepreneurial intention. However, this study asserts that risk-taking propensity is central to the entrepreneurial mindset concept. As such, this study set out to determine whether higher levels of self-esteem and a need for achievement increase university students’ risk-taking propensity and whether that risk-taking propensity influences their entrepreneurial intentions. The results of this study will contribute to the overall entrepreneurship literature by increasing the understanding of the relationship between personality traits and the entrepreneurial intentions of university students. It will also guide tertiary education institutions’ actions undertaken to promote entrepreneurship among university students and instil them with an entrepreneurial mindset.

While there is no single definition and no one profile of what constitutes an entrepreneur (Baum et al. 2014:3; Diandra & Azmy 2020; Kuratko & Hodgetts 2007:32), the literature offers several definitions of entrepreneurship that can practically be grouped into three main dimensions. Firstly, behaviours highlight the particular individual’s role and the specific behaviour that sets him or her apart from others. Secondly, processes linked to developing new business or innovation strategies and the planning processes, such as writing a business plan. Lastly, outcomes refer to creating value for society, new product or service development, innovation and new venture creation (Stokes, Wilson & Crotty 2010:7). From the aforementioned, it is clear that one cannot represent entrepreneurship by a single unit of thought (Alvarez & Barney 2020:302; Peneder 2009:90). However, what is evident is that the three dimensions overlap and that each dimension is deemed important. In summary, entrepreneurship can be understood in terms of the combination of behaviours, processes and outcomes.

The theory of planned behaviour, conceptualised by Ajzen (1988), has become one of the most utilised theoretical frameworks for clarifying and envisioning intentions and behaviours in various disciplines and suggests that the strength of intention is a predictor of behaviour (Kautonen, Van Gelderen & Fink 2015:655; Lortie & Castogiovanni 2015:935). The theory posits that behaviour is preceded by the intention to perform that behaviour and perceived control over the behaviour, where intentions are determined by attitudes towards the behaviour, subjective norms and perceived control over the behaviour (Lortie & Castogiovanni 2015:935).

Intentions can be described as the degree of willingness and effort an individual makes to perform a certain behaviour. The stronger the intention to perform a behaviour, the more likely it will lead to the planned behaviour (Lortie & Castogiovanni 2015:937). Intentions have three antecedents, namely, attitude, which can be described as the degree to which a person has a favourable or unfavourable disposition towards the behaviour in question; subjective norms, which refers to the perceived importance of relevant referents opinion concerning the behaviour; and perceived behavioural control or self-efficacy, which refers to the control individuals perceive they have over the behaviour (Kautonen et al. 2015:657). The theory hypothesises that when attitude towards behaviour and subjective norms are favourable, and a strong perceived behavioural control exists, the intention to perform the particular behaviour would be greater (Aliedan et al. 2022; Díaz-García & Jiménez-Moreno 2010:264).

The theory of planned behaviour has been used extensively in predicting entrepreneurial intentions (Lortie & Castogiovanni 2015; Piperopoulos 2012:466; Romero-Colmenares & Reyes-Rodríguez 2022) and served as the underpinning of this study, whereby entrepreneurship is viewed as a planned process in which individuals cognitively decide to execute the activities of opportunity recognition, business creation and business development (Lortie & Castogiovanni 2015:936). In this study, behavioural intention is operationalised as entrepreneurial intentions. Given the inherent risk of entrepreneurial endeavours, attitude is operationalised as attitude towards risk. As entrepreneurs need to believe that they can succeed the uncertainty that accompanies starting a new venture, perceived behaviour control or self-efficacy is operationalised as self-esteem. Seeing that entrepreneurs like to obtain feedback from others on how they are functioning to assess or if required to improve their performance, subjective norms are operationalised as the need for achievement.

The study applied a descriptive research design, gathering the required data using a single cross-sectional approach.

Data collection yielded 507 completed usable questionnaires. Of these completed questionnaires, five were discarded as they were completed by university students under the age of 18 years. As such, the sample comprised 502 respondents. A description of the respondents in the sample is provided in Table 1.

The principle components analysis resulted in extracting four factors, which explained 72.373% of the total variance. These extracted factors were in accordance with the related literature. The rotated factors and their eigenvalues are presented in Table 2.

As is evident from the results in Table 2, each item loaded on their anticipated factor, and there were no cross-loadings. Furthermore, each loading was greater than 0.50, indicating their statistical and practical significance given the sample size of 502 (Hair et al. 2018).

Given the factor structure integrity, confirmatory factor analysis was conducted on the four-factor measurement model and reliability and construct validity measures. The standardised loading estimates, R² values, a, CR, AVE and √AVE values are presented in Table 3.

The results in Table 3 indicate that the a and CR values for each latent factor exceed 0.70, thereby suggesting both internal consistency and CR. There is evidence of convergent validity with standardised loading estimates and AVE values exceeding 0.50. Discriminant validity is also evident in Table 3, given that the square root of the AVE values for each of the four latent factors exceeds their respective correlation coefficients. The correlation coefficients computed between each of the pairs of latent factors were all statistically significant and in the correct direction, signifying nomological validity. The measurement model fit indices confirmed acceptable model fit, with an NFI of 0.911, a TLI of 0.929, a CFI of 0.936 and an RMSEA of 0.069.

Following the confirmatory factor analysis, the structural model was specified to test the hypothesised paths that university students’ risk-taking propensity mediates the influence of their need for achievement and level of self-confidence on their entrepreneurial intentions. The results of the path analysis are depicted in Figure 1.

As shown in Figure 1, each of the paths is statistically significant. Both self-esteem (β = 0.44, p < 0.01) and, to a lesser extent, the need for achievement (β = 0.15, p < 0.01) have a positive influence on university students’ risk-taking propensity. With a squared multiple correlation coefficient (SMC) of 0.256, these factors explain 26% of the variance in university students’ risk-taking propensity. University students’ risk-taking propensity (β = 0.49, p < 0.01), in turn, has a direct positive influence on their entrepreneurial intention and, together with its predictors, explains 24% of the variance in their entrepreneurial intentions. The structural model also exhibited an acceptable model fit with an NFI of 0.908, a TLI of 0.926, a CFI of 0.932 and a RMSEA of 0.071. As such, there is sufficient evidence in the sample to conclude H1, H2 and H3.

The results of this study reinforce those of other research studies that found high-risk propensity to be an important predictor of entrepreneurial intentions for aspiring entrepreneurs (Abbassi & Sta 2019; Agustina & Fauzia 2021; Herdjiono et al. 2017; Martínez-González et al. 2019). Given that success in the business environment necessitates embracing calculated risks rather than risk for the sake of itself, these findings suggest that university students need to be equipped with the skill of being able to weigh up the benefits and costs of decisions objectively and be given projects aimed at developing their need for achievement and self-esteem.

In line with the results of Chen et al. (2012), the need for achievement was a significant positive predictor of university students’ risk propensity in this study. This supports McClelland’s (1987) assertion that individuals with a high need for achievement have a natural appetite to embrace the risks required to achieve success and his earlier assertion (1961) that this achievement need relates to the creation of an entrepreneurial spirit. Nurturing this need for achievement necessitates assisting students to develop a vision and set challenging yet achievable goals with clear milestones. Constructive feedback on their progress from mentors is required for students to assess how they are functioning to adapt or improve if required.

This study also found self-esteem to be an important predictor of university students’ attitude towards risk and, hence, entrepreneurial intentions. This supports Bandura’s (1977) contention that high levels of self-efficacy and self-esteem are needed to persist in the face of obstacles, uncertainty and risk. These results echo those of Yu and Chen (2016), Densberger (2014) and Zhao et al. (2005), who all concluded that there is a positive relationship between self-esteem and risk propensity.

Encouraging the higher levels of self-esteem and the confidence that are congruent with developing an entrepreneurial mindset among university students thus requires identifying their individual competencies and developing them, providing positive affirmations (Laguna 2013) and developing educational content that is focused on discovery, innovation and risk (Abbassi & Sta 2019).

Universities play a significant role in developing the growth of entrepreneurship through education and improving students’ entrepreneurial skills (Garaika, Margahana & Negara 2019:9; Jadmiko et al. 2019:3). Entrepreneurship education increases the level of students’ entrepreneurial self-efficacy and hence self-esteem (Maczulskij & Viinikainen 2023:7). Students who are confident in their ability to start a business will be willing to take the risk in becoming an entrepreneur (Jadmiko et al. 2019:3). Confidence in students can be shaped and developed through the education process by providing knowledge on starting a business and practical experiences. Universities should create platforms and initiatives where students can be exposed to entrepreneurship training through experiential learning, such as market days, business competitions and business simulation games. The encouragement or discouragement concerning an individual’s performance or ability to perform also determines the level of self-esteem (Redmond 2016). As such, constructive feedback is required to enhance their self-esteem.

University students are privileged to have various resources in the form of expert professors, incubators, technology transfer offices, business competitions, industry experts and mentors. Besides the entrepreneurial education being offered at universities, various co-curricular programmes afford students the opportunity to gain entrepreneurial experience, thereby increasing their entrepreneurial abilities, which, in turn, affects their self-belief towards achieving venture creation. Universities, furthermore, allow students the chance to experiment, make mistakes and fail in a safe environment, without serious consequences (Morris, Shirokova & Tsukanova 2017:69). This permits students to gain confidence in their ability and the inclination to take risk towards self-employment (Morris et al. 2017:69; Soomro & Shah 2022:118).

This study aimed at determining the influence of self-esteem and the need for achievement on university students’ risk-taking propensity and, consequent, entrepreneurial intentions. The findings indicate that both self-esteem and the need for achievement have a positive influence on university students’ risk-taking propensity, which, in turn, has a positive influence on their entrepreneurial intentions.

Understanding which personality traits could potentially impact entrepreneurial intention is valuable, especially in the education sector. Entrepreneurship education can influence personality traits such as the need for achievement and self-esteem, which, in turn, may increase risk tolerance levels. Given that risk tolerance, particularly the appetite to take calculated risks, is an important precursor to entrepreneurial intentions, nurturing these personality traits may help prepare university students for a career in entrepreneurship.

Based on the empirical findings presented, this study makes the following recommendations to foster a strong need for achievement, bolster self-confidence, and promote calculated risk taking among student entrepreneurs. Tertiary institutions need to provide a comprehensive entrepreneurship education model that blends business fundamentals with personal growth, offering practical experiences through projects and internships. Connections between students and mentors or role models must be facilitated where students can obtain construction feedback and guidance on their ideas and business plans. Creating networking opportunities and acknowledging small successes can boost confidence while embracing failures as valuable learning experiences encourages a willingness to take risks. Additionally, institutions should provide psychological support, financial assistance and communication skills training to support student development. Cross-disciplinary collaboration, industry immersion, business incubation involvement and alumni engagement can also contribute to a holistic entrepreneurial education. By adopting these strategies, tertiary institutions can nurture well-rounded and confident student entrepreneurs prepared to navigate the challenges of innovation and business growth.