Self-Efficacy, Entrepreneurial Propensity, and Transition to Entrepreneurship: A Generational Perspective

Abstract

Transition to Entrepreneurship (TE) is a more concrete and viable path to enhance entrepreneurial initiatives with greater resilience. However, less is known about the ability of employees' inner drives to affect a transition, particularly when viewed through the lens of different generations. Based on the Trait Theory of Entrepreneurship, the current study investigated how self-efficacy can instil TE when mediated by entrepreneurial propensity and moderated by age generations. A field survey gathered data to perform a quantitative assessment of research hypotheses. Participants included employees of public and private institutions with significant career stability. Pre-validated instruments were tooled to measure the study variables on a seven-point Likert scale. The structural equation modelling analysed the data in the Smart PLS package. The findings were impressive, demonstrating the significant potential of self-efficacy to influence TE decisions. Entrepreneurial propensity was found to partially mediate the link between self-efficacy and TE. However, a remarkable difference in the strength of these associations was observed among different generations. Specifically, generations Y and Z appear to hold stronger ties, while, the relationship is relatively weaker in generation X. The implications suggest focusing on employees' inner traits as penetrators to boost entrepreneurial moves. Keywords: Entrepreneuri