Fuelling entrepreneurial success: unravelling the nexus of financial resources, self-efficacy, outcome expectations and entrepreneurial intentions in Saudi micro and small enterprises

Abstract

AbstractThis paper focuses on understanding how financial resources (FR) influence entrepreneurial self-efficacy (ESE) and extrinsic outcome expectations (EOE). It also examines the influence of intrinsic outcome expectations (IOE) on ESE. This study further investigates the impact of ESE on entrepreneurial intention (EI) and EOE. At the same time, it examines how EOE influences EI among micro and small entrepreneurs in Saudi Arabia. The study also analyses the ability of ESE and EOE to mediate in the different relationships of the study. The author collected a sample of 201 micro and small entrepreneurs operating in various locations in Saudi Arabia through a self-administered online questionnaire. The data analysis was executed using partial least squares-structural equation modelling. The study’s findings reported exciting results, indicating the presence of a positive and significant relationship between FR and ESE, as well as EOE. They also revealed the presence of a positive relationship between IOE and ESE. ESE also showed the ability to positively and significantly influence EI and EOE. Furthermore, the relationship between EOE and EI reported unexpected negative results. Concerning the mediation result, ESE proved to mediate the relationship between FR and EI, as well as that between IOE and EI. Finally, EOE was unable to mediate the relationship between FR and EI. This study provides specific recommendations and implications for policymakers to benefit from its outcomes.