Entrepreneurial self-efficacy and entrepreneurial intention: The mediating role of the need for independence

Abstract

PURPOSE: The paper focuses on assessing the direct effect of entrepreneurial self-efficacy and entrepreneurial intention and the indirect effect of the need for independence on the relationship between the constructs. Despite increased efforts towards steering the interest of young graduates towards entrepreneurial venture, the response rate has been rather unimpressive and discouraging, thus demanding the need to account for what factors could drive intention towards venture ownership among graduates in Nigeria. METHODOLOGY: A quantitative approach was adopted and a data set from 235 graduates was used for the study. The data was analyzed using the partial least square structural equation model (PLS-SEM). FINDINGS: It was found that self-efficacy does not significantly affect intention. It was also found that the need for independence affects entrepreneurial intention. The study found that the need for independence fully mediates the relationship between entrepreneurial self-efficacy and entrepreneurial intention. PRACTICAL IMPLICATIONS: This paper provides new insight into the behavioral reasoning theory, through its application in explaining the cognitive role of the need for independence in decision-making, using samples from a developing economy. ORIGINALITY AND VALUE: The study advances a new perspective on the underlining factors that account for an entrepreneur’s intent to start a business venture, most especially among young graduates in Nigeria, through the lens of the behavioral reasoning theory. We further support the application of the theory in entrepreneurship literature, given the paucity of studies that have adopted the theory despite its relevance.

Investigations on Entrepreneurship Needs, Challenges, and Models for Countries in Transition to Sustainable Development from Resource-Based Economy—Qatar as a Case

“…As Interviewee #33 said: "why would I leave my work which is more than enough to give me the best life, just to start a business that might end me up in prison". This is in line with studies from the literature highlighting that the absence of income and the need for financial independence are the most significant drivers for entrepreneurs [103,104].…”

Influencing factors on entrepreneurial intention: Intermediary role of achievement motivation, risk-taking propensity and innovativeness

“…Numerous studies suggest that self-efficacy is synonymous with the confidence and courage of individuals to engage in entrepreneurial behaviour. Moreover, self-efficacy plays a crucial role in motivating individuals to overcome challenges during the entrepreneurial process (Osadolor, Agbaeze, Ejikeme, & Olabosinde, 2021). It positively influences entrepreneurial intentions, achievement, motivation, risk-taking tendencies and creativity (Agustina & Fauzia, 2021).…”

Selected contextual factors and entrepreneurial intentions of students on the example of Poland

“…So far, the intention is the best predictor of individual behaviour, especially when it is rare, difficult to observe, or associated with unpredictable time delays (Krueger & Brazeal, 1994). Entrepreneurial intention (EI) has been described as a desire to start and a sincere motivation and willingness to engage in an entrepreneurial venture (Osadolor et al, 2021). In recent years, several articles in this area of research have been published, identifying various factors that precede entrepreneurial intentions, both individual and contextual (Shirokova et al, 2016;Farashah, 2015;Lüthje & Franke, 2003).…”