Venturing into a New Business: Do Self-efficacy and Risk-taking Propensity Help?

Abstract

India, the most populated country, faces the challenges of providing jobs to eligible candidates. Therefore, the promotion of entrepreneurship and the development of an ecosystem of start-ups are highly required. For any country, start-ups and new business ventures are important pillars of economic development. Therefore, college students must be encouraged and trained to become job-givers rather than job-seekers by venturing into a new business. Keeping the present scenario of India as a pivotal point, the study aims to examine the entrepreneurial intention (EI) of college students towards venturing into new businesses. The current study utilizes Ajzen’s (1991) theory of planned behaviour (TPB model), which is a widely used theoretical framework in entrepreneurship research. The study mainly investigates the role of entrepreneurial self-efficacy and risk-taking propensity in developing EIs among college students. A quantitative research design was used to achieve the stated objective of the study. An extensive literature review has been conducted to formulate the questionnaire. All variables were measured using the five-point Likert scale. Moreover, age, gender and exposure to family business were taken as control variables. Three hundred seventy-four responses were collected and analysed using structural equation modelling with Amos 22.0. The results demonstrated that all three variables concerning the TPB model, i.e., attitude, subjective norms and perceived feasibility, positively influence EIs. In addition, entrepreneurial self-efficacy affects EIs both directly and indirectly through perceived feasibility, while the effect of risk-taking propensity is fully mediated by attitude. The study produced meaningful theoretical and practical implications. Theoretically, the study contributes to entrepreneurial literature by signifying the role of self-efficacy and risk-taking propensity in forming EIs. The study also provides insights that may benefit policymakers and governments in formulating appropriate plans to boost EIs among students.