The impact of the feelings of economic powerlessness and alienation on self-employment intentions

Abstract

The purpose of this study was to examine the impact of the feelings of economic powerlessness & alienation on self-employment intentions of young people. The data used in the study was collected through a survey of students at the National University of Lesotho, and the correlation and factor analyses, as well as standard multiple regressions were used to analyze the data. Two clear factor distinctions resulted from self-employment intentions, namely, self-employment intentions regardless of unemployment, and self-employment intentions in response to unemployment. Similarly, the feelings of economic powerlessness and alienation separated into two factors, namely, economic powerlessness and ‘business exploits’. The feelings of economic powerlessness impacted negatively on self-employment intentions, and the feeling that ‘business exploits’ impacted positively on self-employment intentions in response to unemployment. The results of the study suggest that young people who have high feelings of economic powerlessness would not normally plan to start their own businesses.