Impact of Need for Achievement on Entrepreneurial Intentions; Mediating Role of Self-Efficacy

Abstract

Entrepreneurship is becoming very significant for the growth of economies since last decade. Therefore this study aimed to analyze the factors affecting the intentions of individuals towards entrepreneurial start-up so that economic growth can be increased. Entrepreneurial intentions are the vital component of actual business setups that need several personality traits to place ideas into actual actions. Hence the study constructed two personality traits that affect these intentions. The need for achievement and self-efficacy are significant variables to be analyzed in entrepreneurship while discussing the generating of new entrepreneurial businesses. A quantitative analysis was performed using Smart PLS on the collected data from 123 questionnaire responses provided by small and medium-size new entrepreneur startups. The findings reveal that the need for achievement and self-efficacy significantly affects the intentions of entrepreneurs (direct effects). Moreover, the study also explained that the need for achievement has a positive and significant impact on entrepreneurial intentions when mediated by self-efficacy behavior (indirect effect). The study provides theoretical concepts of the selected variables along with significant practical implications for entrepreneurial businesses.Contribution/ Originality: This study contributes to the literature by elaborating on the significance of entrepreneurial intentions and personality traits by analyzing the impact of the need for achievement and self-efficacy on entrepreneurial intentions. This study examines the direct and mediating roles to describe different dimensions of the variables.

The Need For Achievement, Risk-Taking Propensity, And Entrepreneurial Intention Of The Generation Z

“…The intention of generation Z as a participants of PMW 2020 Airlangga University to take entrepreneurial actions by creating new products through business opportunities and taking risks has proven to be influenced by their desire to be successful through the business they are currently pioneering. The results of this study were in line with various previous studies by Akhtar, et al,(2020), Yohana &Salsabila(2019, Yumili&Untu(2019). Asmara, et al,(2016) that the increasing entrepreneurial intention among students is influenced by achievement motivation.…”

“…From this series of studies, there have been no studies that examine other personality factors: such as need for achievement and other contextual factors such as risk-taking propensity from PMW participants. Even though the need for achievement is important to form the intention to become an entrepreneur (Akhtar et al, 2020). Furthermore, risk-taking propensity is also important in shaping entrepreneurial intentions because individuals who dare to take risks will appear confident in facing various obstacles that hinder their intention to become an entrepreneur (Gu et al,2018) Secondly, a previous research was conducted by Asmara et al, (2016)on management department students of a state university in East Java.…”

“…The previous research recommendations underlie the first hypothesis: H1: Need for achievement has a positive influence on Generation Z entrepreneurial intentions Risk taking propensity is "the willingness to be courageous and aggressive in pursuing opportunities and choosing high-risk projects with very high returns over low-risk projects with lower and more predictable returns" (Spicka, 2020).Starting a new business is always fraught with risks that affect the intention to become an entrepreneur. Uncertainty about business success becomes an obstacle that hinders an individual's intention to start a new business (Akhtar et al, 2020). Every action must be accompanied by precise calculations or measurements and decisions taken with care.…”

“…Several variations have been made by previous researchers to examine the indirect influence of need achievement and risk-taking propensity on entrepreneurial intention through entrepreneurial self-efficacy (Akhtar, et al,(2020), Naushad & Malik(2018). A research by Asmara et al,(2016)on 540 management department students of a state university in Malang recommended that individuals who have high achievement motivation and risk-taking propensity skills will have positive entrepreneurial attitudes, and this will have an impact on increasing entrepreneurial intention.…”

Entrepreneurial self-efficacy and entrepreneurial intention: The mediating role of the need for independence

“…This result is quite surprising given the relevance of selfefficacy in an individual's decision-making process. This result differs from the study of Akhtar et al (2020), Shahab et al (2018), Chu et al (2020), and Wang and Huang (2019). The difference in findings could be because of differences in geographical scope where the studies were undertaken.…”