Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals: A structural equation modelling approach, Dr. Muhammad Farooq
Purpose: Although entrepreneurial behaviour is considered a key element for economic development, yet very less is known about the determinants of factors leading towards entrepreneurial intention and behaviour. In order to bridge this gap, the purpose of this paper is to investigate the role of social support and entrepreneurial skills in determining entrepreneurial behaviour of individuals. Developing on the base of the theory of planned behaviour (TPB), this study investigates the relationship between social support, entrepreneurial skills and entrepreneurial behaviour along with existing constructs of the TPB (i.e. attitude, subjective norms, perceived behavioural control and entrepreneurial intention).
Design/methodology/approach: Data was collected from 281 respondents using a simple random sampling method, and the variance-based partial least-squares, structural equation modelling (PLS-SEM) approach was used for testing the proposed conceptual model.
Findings: Findings of this study have validated the proposed model, which have an explanatory power of 68.3 per cent. Moreover, findings reveal that social support and entrepreneurial skills have a significant impact on entrepreneurial intention of individuals. However, an unanticipated and non-significant relation between subjective norms and entrepreneurial intention is also found.
Research limitations/implications: Due to the limited scope of this study, a multi-group analysis is not possible, which is considered as a limitation of this study. Moreover, due to time constraints, this study is conducted within a specified time-frame; however, a longitudinal study over a period of three to six years can overcome this limitation.
Practical implications: Findings of this study are expected to have substantial implications for policy makers, future researchers and academicians. Outcomes of this study can help to better understand the cognitive phenomenon of nascent entrepreneurs. Moreover, it is expected that this study can serve as a torch-bearer for policy makers to develop better entrepreneurial development programmes, policies and initiatives for promoting self-employment behaviour.
Originality/value: Findings of this study are a unique step forward and offer new insights towards a better understanding of the determinants of entrepreneurial behaviour. Moreover, this study extends Ajzen’s (1991) TPB in the context of entrepreneurial behaviour. By introducing and investigating the impact of two new variables, i.e. social support and entrepreneurial skills in the TPB and by validating the proposed model with PLS-SEM approach, this study makes a sizeable theoretical, methodological and contextual contribution in the overall body of knowledge.
Keywords: Entrepreneurial intention; Theory of planned behaviour; PLS-SEM; Entrepreneurship education; Entrepreneurial behaviour; Entrepreneurship skills; Social Support.
Citation: Farooq, M.S. (2018), "Modelling the significance of social support and entrepreneurial skills for determining entrepreneurial behaviour of individuals: A structural equation modelling approach", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 14 No. 3, pp. 242-266. https://doi.org/10.1108/WJEMSD-12-2017-0096