The Impact of Overall Financial Viability on Entrepreneurial Intention in South Africa

This study examined the relationship between overall financial viability (OFV) and entrepreneurial intention (EI) in South Africa by extending the entrepreneurial potential model created by Krueger and Brazeal (1994 , Entrepreneurship Theory and Practice , 18, 3, 91–104). OFV was derived from human-centric design as an antecedent of perceived feasibility. OFV was implemented as a second-order construct consisting of venture profitability, venture financing and personal financial well-being. Structural equation modelling was applied to data from 306 respondents recruited via snowball sampling. OFV positively and significantly predicted perceived feasibility ( β = 0.622, p < .001). Venture profitability ( β = 0.730) and venture financing ( β = 0.174) were significant antecedents of OFV, while personal financial well-being was non-significant ( β = −0.025, p = .443). This finding may reflect the necessity-driven entrepreneurial context of South Africa. The extended model achieved acceptable fit only under relaxed thresholds (comparative fit index = 0.906, Tucker–Lewis index = 0.894, root mean square error of approximation = 0.081), and the non-probability sample limits generalisation. The cross-sectional design rules out causal inference. These findings offer an empirical extension of EI theory with context-specific implications for entrepreneurship education and incubation programme design in South Africa.