Abstract

High external locus of control and readiness to conjure and believe in mystical powers has a potential in disrupting the growing small and medium enterprises in Uganda. If small business operators abdicate their responsibilities to mystical powers, it will worsen the current low survival rate of start-up businesses. In this study, we use a multilevel Rasch Rating Scale models to estimate a latent scale for locus of control and a composite scale that combine three domains: altitude towards wealth acquisition; paranormal beliefs; and readiness to seek wealth from mystical powers. Correlation analysis was also conducted to determine the association between the two latent scales. The data was collected from a random sample of 60 business operators in Entebbe, Uganda. Results indicate that low education and religion affiliations were determining factor for high external locus of control and readiness to conjure and believe in mystical powers. Public education through religious organization is therefore important in addressing these negative issues that may affect immerging entrepreneurship in Uganda. 

Key words: Business operators, locus of control, polytomous Rasch models, Uganda.