The mediating effects of entrepreneurial self-efficacy in the relationship between entrepreneurship education and start-up readiness

The study addresses low business creation and high youth unemployment in Nigeria, particularly among science and engineering graduates perceived as unprepared for entrepreneurship. It investigates whether entrepreneurial self-efficacy (ESE) mediates the relationship between entrepreneurship education (EE) and start-up readiness among TVET college students. Objectives: (1) examine effects of EE on ESE; (2) determine mediating effects of ESE between EE and start-up readiness; (3) assess influence of ESE on start-up readiness. Hypotheses: H1a–d posit EE components (technical skills, business management skills, personal skills) positively affect ESE task phases (searching, planning, marshalling, implementing); H2a–d posit ESE task phases mediate EE–start-up readiness links; H3 posits ESE task phases positively impact start-up readiness. The study is situated in a developing African context where entrepreneurship education may function differently, making the inquiry practically and theoretically significant.

Self-efficacy is framed via social cognitive theory as beliefs about capability influencing behavior, with domain-specificity emphasized. Across disciplines, self-efficacy relates to economic behavior and social interaction. Entrepreneurial self-efficacy (ESE) is conceptualized as a multidimensional, task- and context-specific construct encompassing goal/control beliefs affecting venture creation (Drnovšek et al., 2010). Literature identifies multiple ESE dimensions; this study adopts four task phases (searching, planning, marshalling, implementing) refined by McGee et al. (2009). Entrepreneurship education (EE) is a mechanism to develop entrepreneurial mindset and skills, often categorized into technical skills, business management skills, and personal entrepreneurial skills (Hisrich & Peters; OECD). Prior research shows EE can enhance ESE and intentions, with stronger effects for practical courses. Evidence on ESE’s mediating role between EE and entrepreneurial intention is mixed across contexts; some studies show full mediation, others partial. Start-up readiness is defined as cognitive capability and willingness to act entrepreneurially, linked to exploiting opportunities and entrepreneurial competence. ESE is frequently associated with readiness and entrepreneurial behavior. The theoretical framework relies on the Theory of Planned Behavior, aligning ESE with perceived behavioral control, suggesting EE as a contextual antecedent shaping ESE and subsequent readiness.

Philosophy and design: Positivist approach with hypothesis testing using a cross-sectional survey. Sample and setting: 301 exit-level students from three Nigerian TVET colleges were surveyed; 289 valid responses analyzed. Demographics: 55% male; majority <20 years old; departments spanned Business Studies, engineering fields, catering, and others. Measures: - Entrepreneurship Education (EE): 37 items adapted from Elmuti et al. (2012), covering technical skills, business management skills, and personal skills; 6-point Likert scale. - Entrepreneurial Self-Efficacy (ESE): 33 items combining McGee et al. (2009) multidimensional scale (searching, planning, marshalling, implementing) and Maritz & Brown (2013); 6-point Likert. - Start-up Readiness (SR): items adapted from Coduras et al. (2016); 6-point Likert. Analysis procedures: Data screening included skewness/kurtosis (non-normal), variance inflation factors (VIF < 10) indicating no multicollinearity. Reliability and validity: Cronbach’s alpha and composite reliability > 0.7; convergent validity supported via indicator loadings and AVE (with two low-loading items removed); discriminant validity assessed via HTMT with BCa bootstrap (5,000 resamples). Modeling: Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 estimated measurement and structural models, including mediation via specific indirect effects with bootstrapping. Model fit/explanatory power: R^2 values: ESEBUS 0.542; ESEPLN 0.612; ESEMSH 0.544; ESEIMP 0.702; SR 0.540.

- Explanatory power: R^2 for endogenous constructs: ESEBUS 0.542; ESEPLN 0.612; ESEMSH 0.544; ESEIMP 0.702; SR 0.540. - EE → ESE task phases: • ESE Searching (ESEBUS): Technical skills (TS) β=0.436, p<0.001; Business management skills (BMS) β=0.302, p<0.01; Personal skills (PS) β=0.034, ns. • ESE Planning (ESEPLN): TS β=0.479, p<0.001; BMS β=0.283, p<0.01; PS β=0.061, ns. • ESE Implementing (ESEIMP): TS β=0.355, p<0.001; BMS β=0.379, p<0.001; PS β=0.156, ns. • ESE Marshalling (ESEMSH): TS β=0.238, p<0.05; BMS β=0.287, p<0.01; PS β=0.264, p<0.01. - ESE → Start-up Readiness (SR): ESEBUS β=0.178, p<0.05; ESEPLN β=0.158, p<0.05; ESEMSH β=0.136, p<0.05; ESEIMP β=0.340, p<0.001 (largest effect). - Mediation (specific indirect effects): • Via ESEBUS: TS→SR β=0.078, p=0.023 (significant); BMS and PS paths not significant. • Via ESEPLN: TS→SR β=0.075, p=0.039 (significant); BMS and PS paths not significant. • Via ESEIMP: TS→SR β=0.121, p=0.004; BMS→SR β=0.129, p<0.001 (both significant); PS path not significant. • Via ESEMSH: mediation insignificant for TS, BMS, PS. - Overall: EE shows partial support for ESE; ESE searching, planning, and implementing partially mediate EE→SR links; ESE marshalling does not mediate. All ESE dimensions directly and positively relate to SR, with implementing strongest. An additional insight is that personal entrepreneurial skills are important antecedents for enhancing resource-gathering (marshalling) capabilities toward start-up readiness.

Findings confirm that entrepreneurship education enhances specific facets of entrepreneurial self-efficacy, particularly through technical and business management skills, which in turn elevate start-up readiness. The strongest path from ESE to readiness is implementing, emphasizing that the capability to make decisions, manage resources, and sustain operations is pivotal for nascent entrepreneurs in challenging environments like Nigeria. Personal entrepreneurial skills generally did not strengthen searching, planning, or implementing efficacy, suggesting a deficit in students’ social-cognitive attributes (e.g., risk-taking, innovativeness, resilience) despite human-capital-oriented training. The lack of mediation via ESE marshalling, coupled with contextual constraints (difficult access to finance, burdensome regulations), indicates that resource acquisition is a bottleneck for student-entrepreneurs. The results align with TPB by demonstrating that enhancing perceived behavioral control (ESE) increases readiness to start ventures. Practically, curricula should integrate personality development and experiential pedagogies (simulation, role-play, mentoring, case studies) to build task-related ESE and address resource-gathering skills. Policy measures that ease credit, tax, and labor regulations would complement educational interventions.

This study shows that ESE partially mediates the relationship between entrepreneurship education and start-up readiness among Nigerian TVET students. Technical and business management skills bolster ESE in searching, planning, and implementing, which in turn increase readiness; ESE implementing exerts the strongest effect on readiness. ESE marshalling does not mediate EE→readiness paths, reflecting difficulties in resource acquisition. The study recommends embedding ESE dimensions within entrepreneurship education and strengthening personal entrepreneurial traits through experiential, practice-oriented pedagogies. Early exposure to entrepreneurship can cultivate favorable traits and sustained interest in entrepreneurial careers.

Cross-sectional design limits causal inference; longitudinal research during study and post-graduation is recommended to track temporal dynamics and potential time-lag effects of ESE on outcomes. The study focuses on TVET students in Nigeria, which may limit generalizability; future work could broaden contexts and incorporate ecosystem factors affecting resource marshalling.