DEMOGRAPHIC FACTORS INFLUENCING ENTREPRENEURIAL ATTITUDES AND OPPORTUNITIES

 1. Population size and growth rate

The rate at which the population is growing determines how great the business opportunities in a country emerge. A big population presents opportunities like wide market and cheap labour. Uganda has the third highest growth rate in the world, estimated at 3.5%.

2. Level of education and experience

The entrepreneur’s ability to start and operate a business is influenced by the experience and level of education he/she attained. Education highly influences entrepreneurship development in terms of formal skills, business management skills, negotiation skills and networks.

However, in Uganda the successful and potential entrepreneurs are those with less training and experience. People who are highly educated are analytical and are risk averse yet less educated people tend to be creative and therefore risk taking.

3. Income levels

This defines the differences in social economic status of individuals in the society.

People with lower income levels tend to seek for opportunities to earn a living and are most likely to undertake entrepreneurial career compared to their counterparts.

4. Age structure

Young people at the age of 25 years, single and without many personal assets and dependants find it easy to make career decisions to start a business.

It is a much harder decision when a person is 50 years and married, has teenage children preparing to go to University. Young people usually have the need to

explore and are negative about outcomes as compared to the older. They find fun in idea generation and experimentation and can easily succeed in business as a career.

5. Changing age structure

Changing age structure on the other hand presents entrepreneurial opportunities.

Middle aged people provide market, for instance the aging population in the United States provide opportunities to sectors like health and home developers for retirees. In Uganda, the increasing number of younger people provides cheap labour and market for luxury goods and services.

6. Gender differences

Men are more inclined towards entrepreneurial business than women with similar background because women face more difficulties in the venturing process as compared to men. For instance, in acquiring resources to start and support their businesses.

Similarly, women and men have different needs and wants. This implies that an entrepreneur must provide those different needs to satisfy the market.

7. Family background

Parents act as initial role models and the parents active in a family business influence the future entrepreneurial intentions through changing attitudes and beliefs. For instance, people who have a close family member who is self-employed are more likely to follow an entrepreneurial career.

8. Family size

Individuals who grow up in large extended families exposed to life challenges like inadequate facilities and support and are forced to survive on their own turn to the environment for opportunities in terms of business undertakings thus entrepreneurial career.

9. Family succession/inheritance

Through inheritance people are able to identify opportunities and use family income to exploit those opportunities, for example Madhivan, Mukwano, e.t.c.

10. Changing roles and responsibilities of family

These present opportunities to entrepreneurs, for instance, when single headed families change to marriage, the needs and wants change.

Therefore entrepreneurial focus goes to these changes as opportunities to exploit.

As the family responsibilities increase, people tend to seek for additional income and they are lured into the entrepreneurial career.