Factors influencing entrepreneurial intention of university students in Yemen: The mediating role of entrepreneurial self-efficacy

Abstract

While entrepreneurship is believed to play a crucial role in economic growth and job creation in various parts of the world, particularly in developed countries, the key factors enhancing entrepreneurship behavior and intention in developing countries still need to be discovered. Therefore, this study examines the influence of personality traits and environmental and situational factors on the development of entrepreneurial intention among young students in Yemen. Data were collected through a survey responded to by 487 final-year university students from two universities (public and private) in Yemen. The study’s hypotheses were tested using structural equation modeling (SEM). The study reveals that personality traits of the need for achievement (nAch) and locus of control (LoC) positively correlate with entrepreneurial self-efficacy (ESE) and entrepreneurial intention. Instrumental readiness positively correlates with ESE but not with entrepreneurial intent. The situational factors show a positive association with entrepreneurial intention but not ESE and a positive relationship between ESE and entrepreneurial intention. Furthermore, the study’s findings show that ESE partially mediates the relationship between the nAch, LoC, instrumental readiness, and entrepreneurial intention. However, ESE did not mediate the relationship between situational factors and entrepreneurial intention. The study suggests that situational factors can influence entrepreneurial intention among Yemeni students and provide several recommendations to academicians and policymakers.