Business development services training and entrepreneurial self-efficacy – A focus on necessity- and opportunity-driven entrepreneurs

Abstract

Background: Entrepreneurs have been galvanised by the worsened economic circumstances in South Africa, and small businesses struggle to become established. By providing skills training, business development services (BDS) improve the performance of firms, through the development of entrepreneurial self-efficacy.

Aim: The objective of this study was to determine the impact of BDS training on the entrepreneurial self-efficacy (ESE) of necessity- and opportunity-driven entrepreneurs and whether that impact would be more positive in opportunity-driven rather than necessity-driven entrepreneurs.

Setting: The study focused on 519 entrepreneurs in South Africa, of which 97 were necessity-driven and 422 were opportunity-driven.

Methods: Statistical analyses were conducted using correlation analysis and multiple linear regression to test the impact of training on the ESE of necessity- and opportunity-driven entrepreneurs while controlling for the impact of confounding variables: gender, education, management experience, industry experience and partnerships.

Results: The empirical evidence from this study showed that general entrepreneurial training is more effective in increasing the entrepreneurial self-efficacy of opportunity-driven entrepreneurs, whereas task-specific training was better suited for increasing the entrepreneurial self-efficacy of necessity-driven entrepreneurs.

Conclusion: The implications and recommendations of this study are that policymakers should design general entrepreneurial training programmes targeted at opportunity-driven entrepreneurs and task-specific training programmes targeted at necessity-driven entrepreneurs.

Contribution: This study enhances the understanding of the training needs of necessity-driven entrepreneurs and how they differ from opportunity-driven entrepreneurs concerning ESE and the growth of their businesses.