The general objective of the research is to assess major factors hindering unemployed youths from starting their own business. To identify the impediments, the research analyzed the influence of individuals’ behavior, the social and external contexts. In relation to identifying the major factors hindering the unemployed youths from becoming an entrepreneur, determinants of propensity to start own business in similar situations were identified. The targets for the research were youths who have a certificate, diploma, degree and above but stayed unemployed for more than six months. Responses were elicited from two hundred and one (201) respondents who were drawn from the target population using convenience sampling technique. Structured questionnaire was used to gather the primary data from the unemployed youth. Multiple regression analysis was used to analyze the data and t-test and chi-square were employed to test research hypotheses. To facilitate the data processing and analysis activity SPSS version 16 was used. The analysis indicated that lack of intention to start own business is the major factor followed by lack of starting capital. The lesser attractiveness of business environment and social values are the next important factors which force the youths to spend much time for searching for a job instead of starting own business. Contrary to previous research perceived behavioral control is found insignificant in predicting the youths’ intention to start own business. The paper has identified factors limiting the educated youths from starting their own business.
Key words: Propensity to start business, perceived behavioural control, subjective norm, attitude towards self-employment, family entrepreneurial experience, social values, attractiveness of business environment, and starting capital.
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