Nigerian Journal of Banking and Financial Issues (NJBFI)

Impact Of Psychological Needs On Entrepreneurial Intentions: Evidenced Among University Undergraduates In Southwest, Nigeria

Abstract

The decision to start a business occurs when the perception of an opportunity is present in the entrepreneur’s mind and is based on Psychological Needs, (autonomy, relatedness, and competence) as postulated by the self-determination theory. This study therefore examines the determinants of psychological needs as it impacts the Entrepreneurship Intentions of University Undergraduates in Southwest, Nigeria.

A survey of three thousand five hundred and forty-two final year University Undergraduates cutting across all faculties were randomly selected from twelve Universities in Southwest, Nigeria. Their responses were analysed using Descriptive Statistics, and Multiple Regression Analysis.  Findings revealed that psychology needs through its determinants have significant impact (F5, 3535 = 41954.89; R² = 0.9834; P < 0.0000) on Entrepreneurial Intention of University Undergraduates in Southwest, Nigeria.

The study concluded that Psychological Needs has a positive and highly significant impact on Entrepreneurship Intentions of University Undergraduates in Southwest, Nigeria. It was recommended that government should, create avenue for the award of innovative ideas among University Undergraduates and also make adequate provision for infrastructure which will intrinsically motivate them to become self-employed and job creators.  This will go a long way in curbing unemployment and also boost the economy as a whole.