Examining the factors influencing entrepreneurial intention to initiate new ventures: Focusing on knowledge of entrepreneurial skills, ability to take risk and entrepreneurial innovativeness in open innovation business model

Abstract

Abstract As worldwide unemployment is an extensive problem by the increasing population every day but opportunities for jobs didn’t increase with the 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 purposes to inspect the aspects that create and effect entrepreneurial intention in young entrepreneurs to start entrepreneurial projects. This study explores the effect of self-efficacy, family support, institutional support and peer support towards 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 risk, and entrepreneurial innovativeness motivate young entrepreneurs to take startups. For results, a survey method with a questionnaire has been utilized for the gathering of 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 has been gathered from the master's students who registered in business sector top universities in Pakistan. The results of this study showed that self-efficacy, peers support, institutional support and family support have a positive impact on 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.