Entrepreneurship Self-Efficacy, Risk Tolerance and Self-Employment Intention among University Students

Abstract

This study investigates the interplay between entrepreneurial self-efficacy, self-employment intention and risk tolerance within a higher education setup in a developing country context. A convenience sample of 431 technical university students participated in the study via the completion of self-administered questionnaire. Descriptive statistics and PLS-SEM were used to analyze data. Results showed significantly positive association between entrepreneurial self-efficacy and (i) self-employment intention (ii) risk tolerance. In addition, risk tolerance was found to (i) predicts self-employment intention and (ii) further mediate the relationship between entrepreneurial self-efficacy and self-employment intention. The findings of the study provide important implication for higher education institutions. Management of higher education institutions must take steps to integrate risk tolerance in the curriculum of students both theoretically and experientially.