Factors influencing entrepreneurial intention to initiate new ventures: Evidence from university students

Abstract

As worldwide unemployment is an extensive problem with the increasing population every day, job opportunities did not increase with a similar ratio. Unemployment is increasing, affecting developing countries’ economies like Pakistan. This attempt to solve this problem is commonly acknowledged by creating new opportunities and starting new business ventures. Considering this aspect, this study inspects the aspects that create and affect entrepreneurial intention in young entrepreneurs to start entrepreneurial projects. This study explores the effect of self-efficacy, family, institutional, and peer support on entrepreneurial intention. These factors are expected to create entrepreneurial intention in young graduates to start their business ventures. All these factors and the mediating role of knowledge of entrepreneurial skills, ability to take risks, and entrepreneurial innovativeness motivate young entrepreneurs to take startups. For results, a survey method with a questionnaire has been utilized to gather data. The collected data were evaluated through descriptive and inferential statistics. SPSS and SMART-PLS 3.3 were used for the analysis of results. 716 respondents participated in the data collection process. Data have been gathered from the master's students who registered in Pakistan's top business sector universities. The results of this study showed that self-efficacy, peers support, institutional support, and family support positively impact entrepreneurial intention. Additionally, knowledge of entrepreneurial skills, the ability to take risks, and entrepreneurial innovativeness also significantly affect entrepreneurial intention. In this study, all these results have been discussed. This study also discusses various theoretical and practical factors with substantial policy-making significance.