The aim of this paper is to investigate the influence of big five personality traits on entrepreneurial intentions with the mediating role of risk aversion. A structured questionnaire was used and collected data from 274 Pakistani students (university level). The hypotheses were tested through structural equation modeling by using AMOS. The findings display that the personality trait “conscientiousness” has a significant positive influence on entrepreneurial intentions while the traits, extroversion, openness to experience neuroticism, and agreeableness are not significantly influenced entrepreneurial intentions directly. Neuroticism, conscientiousness, and openness have a significant relationship with risk aversion while extroversion and agreeableness do not significantly influence risk aversion. There is a significant association between risk aversion and entrepreneurial intention. Risk aversion fully mediates the relationship of neuroticism and openness to experience with entrepreneurial intention while it partially mediates the path between consciousness and entrepreneurial intention. However, we found that risk aversion does not mediate the relationship between extroversion and agreeableness with entrepreneurial intention. The study suggests investors and policymakers to understand the behavior of students who are prominent future entrepreneurs and promote new start‐ups among students by providing various incentives (financial and nonfinancial). Other implications are stated.