Effect of Social Environment on Entrepreneurial Intention

Abstract

With increasing awareness of the role of entrepreneurship as a key in a comprehensive economic development framework, researchers in recent years have focused attention on it with a view to discovering the factors that promote its development. Previous studies have discovered that the first major step in the promotion of entrepreneurship is the formation of the intention to be an entrepreneur. It has also been shown that entrepreneurial intention is affected by environmental factors. Since most of the attention in previous studies has been given to environmental factors such as economic, political and psychological factors with little attention given to social business environment, this study, therefore, examines the effects of social environment on entrepreneurial intentions. The study is guided by three objectives which center around the identification of the major components of social environment and the influence and effects of these components on entrepreneurial intention. Adopting a critical review of literature methodology, the study finds that social environment has a profound influence on entrepreneurial intention. The various components of social environment used in the study - education, family background and social network, all have significant influence on entrepreneurial intention. The study therefore concludes that the social environment of an individual plays a significant role in the formation of entrepreneurial intention and therefore must be given adequate attention in order to promote the formation of entrepreneurial behavior needed for the economic growth in Nigeria.