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Introduction
Globally, entrepreneurship significantly contributes to employment and socio-economic development. However, Sub-Saharan Africa, particularly Nigeria, faces high youth unemployment despite being Africa's largest economy. Concerns exist that graduates, especially in science and engineering, lack entrepreneurial readiness, potentially due to inadequate entrepreneurship education focused more on employment seeking than business creation. Previous research highlights cognitive factors beyond entrepreneurship education influencing business start-up readiness. This study investigates the mediating role of entrepreneurial self-efficacy (ESE) in the relationship between entrepreneurship education and start-up readiness among young Nigerians. The research objectives were to examine the effects of entrepreneurship education on ESE, determine ESE's mediating effects between entrepreneurship education and start-up readiness, and measure ESE's influence on start-up readiness. This study is among the first to validate these relationships within a developing African context.
Literature Review
The study explores the multifaceted nature of self-efficacy, drawing from social cognitive theory, psychology, economics, and social psychology. Self-efficacy is defined as an individual's belief in their ability to perform a task, influencing attitudes and behaviors. Different disciplines conceptualize self-efficacy's dimensions, including task-specific abilities and outcome attainment. Entrepreneurial self-efficacy (ESE) is specifically examined as a key construct in starting a new business. This study utilizes a multidimensional ESE construct, incorporating goal and control beliefs and propositions, to examine its mediating effects between entrepreneurship education and start-up readiness. Entrepreneurship education, proven to create jobs and improve livelihoods, aims to enhance entrepreneurial mindsets, attitudes, and skills. Extant literature categorizes essential skills for business success as technical skills, business management skills, and personal entrepreneurial skills. Previous studies show that entrepreneurship education positively influences ESE, attitudes, and behavioral intentions toward business start-ups. However, the literature also highlights variations in the relationships between entrepreneurship education, ESE, and start-up readiness depending on context and the specific dimensions examined. Start-up readiness is conceptualized as the combination of cognitive capabilities and willingness to engage in entrepreneurial activities.
Methodology
This quantitative study employed a positivist approach. A survey questionnaire was administered to 301 exit-level students from three TVET colleges in Nigeria; 289 valid responses were analyzed. The sample consisted of slightly more males (55%) than females (45%), with most participants aged under 20 (83%). Participants represented various departments within the TVET colleges, with the largest group from Business Studies. The study used validated instruments to measure entrepreneurship education (technical, business management, and personal skills), entrepreneurial self-efficacy (ESE) across four dimensions (searching, planning, marshalling, implementing), and start-up readiness. A 6-point Likert scale was used for all measures. Data analysis included tests of normality, a multicollinearity test, correlation analysis, and partial least squares structural equation modeling (PLS-SEM) using Smart PLS 4 to assess the relationships and mediating effects within the research model. The study conducted several validity and reliability tests, including Cronbach's alpha, composite reliability, average variance extracted (AVE), and heterotrait-monotrait ratio (HTMT), to ensure the rigor of the measurement model. The PLS-SEM was used to analyze the relationship between the variables. Based on the results of the tests, some items were deleted to improve the analysis.
Key Findings
The findings revealed a partial relationship between entrepreneurship education and ESE. Technical skills and business management skills significantly influenced ESE in searching, planning, and implementing, but personal skills did not. ESE (searching, planning, implementing) partially mediated the relationship between entrepreneurship education and start-up readiness. ESE marshalling showed no mediating effect. All ESE components (except marshalling) significantly and positively influenced start-up readiness. Personal entrepreneurial skills were found to be crucial antecedents for resource marshalling skills. The model's R-squared values indicated substantial explanatory power for all dependent variables (0.542-0.702). Specifically, ESE implementing had the strongest influence on start-up readiness (β=0.340, p<0.001). The mediation analysis further revealed that ESE searching and planning significantly mediated the relationship between technical skills and start-up readiness. ESE implementing significantly mediated the relationship between technical and business management skills and start-up readiness but showed no significant mediating effect with personal skills. ESE marshalling did not significantly mediate the relationship between any components of entrepreneurship education and start-up readiness.
Discussion
The findings demonstrate the importance of entrepreneurship education in developing ESE, but highlight the need for a more comprehensive approach that includes personal skills development. The partial mediating effect of ESE underscores the significance of fostering self-belief and practical entrepreneurial skills. The lack of significant mediating effect of ESE marshalling highlights the need for enhanced resource-gathering skills, a significant challenge for entrepreneurs in Nigeria. The significant direct effect of all ESE dimensions (except marshalling) on start-up readiness confirms its importance as a catalyst for entrepreneurial activity. The study's findings align with previous research showcasing the significance of ESE in entrepreneurial intentions and performance. However, it also reveals that theoretical entrepreneurship education alone may not suffice; practical application and the development of personal entrepreneurial attributes are crucial for transforming education into entrepreneurial action and start-up readiness, especially within the developing context of Nigeria.
Conclusion
This study contributes to the existing literature by empirically demonstrating the mediating role of ESE in the relationship between entrepreneurship education and start-up readiness in a developing context. The findings highlight the importance of a multidimensional approach to ESE measurement and the need to emphasize practical, experiential learning in entrepreneurship education that incorporates personal entrepreneurial skills development. Future research should explore these relationships using longitudinal data to establish causality and consider the influence of the specific entrepreneurial ecosystem.
Limitations
This study's cross-sectional design limits the ability to establish causal relationships. The sample, while sufficient for PLS-SEM analysis, may not be fully representative of all Nigerian TVET students. Future research should address these limitations by employing longitudinal studies with larger, more diverse samples to improve generalizability.
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