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**Subject: BUS101D – G01 Statistics An Investigation into the Obstacles to Youth Entrepreneurship in South Africa1
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I. Problem Statement

The primary objective of this study is to investigate empirically the obstacles to youth entrepreneurship in South Africa. II. Framework and Hypotheses This study basically followed the descriptive design and attempted to profile the obstacles to youth entrepreneurship along the following themes: Figure 1 Framework of the Study

Obstacles

Capital Skill Risk Support Market Opportunities

Furthermore, the study tested the following hypothesis: H1: There are no significant differences in the mean scores of university students and high school students.

III. Methodology Research Design The study made use of the descriptive research design. Sampling Design The study focused on final year students from the University of Fort Hare and Walter Sisulu University students in the Eastern Cape Province of South Africa as well as final year students selected from twenty high schools in the same province. The sampling frame for the university students group consisted of all registered final year students in 2009 from both

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Fatoki, Olawale and Chindoga. Lynety (2011). An Investigation into the Obstacles to Youth Entrepreneurship in South Africa. International Business Research, 4 (2), 161-169.

96). fear of crime (4. no family member did it (1. the list of which came from their respective Planning and Development Department offices while the sampling frame for the high school students group consisted of all students in the records provided by the high school’s principals and clerks. The author cite Leech. five factors with Eigenvalues greater than one account for 81. the population and the response distribution. Findings The results for the university students indicated that lack of savings (4.68% of the percentage of variance explained. For high school students. lack of savings (4. The data analysis was done using descriptive statistics.51) had the highest means while repaying school loans (1. For university students. Barrett and Morgan (2005:79) who pointed out that the decision about which factor to retain depends on the percentage of the variance accounted for the variable. The researcher used the probability sampling method for the study. The Cronbach’s alpha was used to measure the instrument’s reliability.79) and no people encouraging (1. T-test and the principal component analysis. According to the list. IV. Inc.79) had the lowest means. do not have a good idea (4.90). Factor one was labeled as lack of capital. For high schools students.93) had the lowest means.academic institutions.79) and fear of crime (4. both sets of respondents perceive lack of skill. in their website. and whether the factor can be meaningfully interpreted. Statistical Treatment The normality of the data was determined by using the Kolmogorov-Smirnov test.75) had the highest means while right partner difficulty (1.89) and lack of collateral (4. support and market opportunities as obstacles to entrepreneurial intention. The principal component analysis was used to determine which factors to include in the study and which ones to drop.06) and right partner difficulty (1. the total final year students for the two universities in 2009 were two thousand and eleven students.02). Moreover. the confidence level. In addition. The Eigenvalue for . Based on this calculation. the absolute variance accounted for by each factor. The sample size was determined through the use of the sample size calculator provided by Raosoft. Instrumentation The questionnaire predominantly made use of Five-point Likert scale with a range of 1 to indicate strong disagreement to 5 to indicate strong agreement in determining the obstacles to youth latent entrepreneurship. Close-ended questions were employed for demographic variables. Factors with Eigenvalues greater than one are usually retained. the questionnaire was pre-tested on a sample of forty respondents from both high schools and universities.03). The pairwise deletion method was used to treat missing values. the population was seven hundred and sixty. The results indicate that for both university and high school students. no one helping (1. Raosoft sample size formula includes the margin of error. High school students tend to have a higher fear of risk than university students. lack of capital is a major obstacle to entrepreneurial intention. the minimum recommended sample sizes for university and high school students were three hundred twenty three and two hundred and fifty six respectively.

Cronbach’s alpha for the factor yielded a value of 0. indicating the reliability of the factor.820. Cronbach’s alpha for the factor yielded a value of 0.502.812. it will be assumed that this was carried out using the simple random sampling for each stratum. the researcher disclosed that the total number of questionnaires distributed to both high school and university students were five hundred and seventy nine following the calculated sample size. Factor one was labeled as lack of capital. Cronbach’s alpha for the factor yielded a value of 0.730.774.49. Cronbach’s alpha for the factor yielded a value of 0. The Eigenvalue for the factor is 6. five factors with Eigenvalues greater than one account for 87.518.971. The Eigenvalue for the factor is 2. Cronbach’s alpha for the factor yielded a value of 0. V. indicating the reliability of the factor. The Eigenvalue for the factor is 15. Though it was not disclosed how the specific respondents were chosen. The factor includes six items. The Eigenvalue for the factor is 4. . The results for high school students indicate that. Factor three was labeled risk. The Eigenvalue for the factor is 9. Meanwhile. The Eigenvalue for the factor is 3.05% of the total variance. This is the most important factor according to the factor analysis.844.807. The Eigenvalue for the factor is 2. The T-test shows an insignificant difference in the mean scores of the two sets of respondents. The factor includes six items. The factor includes three items.926.the factor is 16. Assessment of Sampling Methodology The use of the probability sampling method is well chosen and very acceptable considering the value it adds to the study’s ability to generalize results.223. Factor five was labeled as risk.76. The factor includes two items.50.7% indicates that the sampling method did not provide for replacements which may distort the representativeness of the final sample and consequently jeopardize the study’s ability to generalize results. Factor five was labeled lack of market opportunities.807.Factor four was labeled lack of market opportunities. The response rate of 61. The factor includes six items. Cronbach’s alpha for the factor yielded a value of 0.792. The factor includes two items. The assumption of maximum variability in the computation of the sample size is deemed to be the most conservative estimation of the response distribution and therefore is considered a very acceptable assumption. The factor includes two items. Cronbach’s alpha for the factor yielded a value of 0. This is the most important factor according to the factor analysis. The sampling frame chosen for the study was appropriately chosen since the source identified held the most comprehensive list of the prospective sample elements. Cronbach’s alpha for the factor yielded a value of 0. Factor two was labeled lack of skill.711. The factor includes four items.Factor three was labeled lack of support. The factor includes six items.861.26.38. It is therefore recommended that the probability sampling with replacements be used in the study to obtain results that are reliable generalizations. The Eigenvalue of the factor is 2. Cronbach’s alpha for the factor yielded a value of 0. The Eigenvalue for the factor is 4. Factor two was labeled lack of skill. Cronbach’s alpha for the factor yielded a value of 0. The factor includes five items. Factor four was labeled lack of support. It is further recommended that the choice universities and high schools shall be done using probability sampling as well.

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