Enablers of entrepreneurial self-efficacy in a developing country

The purpose of this paper is to investigate the factors affecting entrepreneurial self-efficacy (ESE) in a developing country (Pakistan). The literature reports that entrepreneurship education does not enhance the level of ESE of the students. In the same vein, it is strongly emphasized that self-efficacy is the basic element in the entrepreneur’s undertakings. However, limited research has been conducted on the subject and the factors that impact ESE in the context of developing economies.

A quantitative approach was adopted, and data were collected from the 564 target respondents of different private and public universities of Pakistan. Structural equation modeling was used to investigate the association between the variables of the conceptual model.

This study found a positive and significant impact of the predictors, entrepreneurial knowledge, entrepreneurial experiences, instrumental readiness and risk propensity on ESE among the students.

The findings of the study will help in developing self-efficacy for entrepreneurship in young potential entrepreneurs. They will also assist higher education management in developing and designing entrepreneurship academic curriculum and programs for the achievement of program learning outcomes. In addition, the findings will contribute to the literature of entrepreneurship and self-efficacy factors in the context of the developing country.

The results of the study confirm empirically tested factors that have a positive impact on ESE in a developing country setting.