Tracking the venture creation phases in terms of entrepreneurial self-efficacy: links to competitiveness of South African ventures

Abstract

Examining entrepreneurial self-efficacy across venture creation phases is important as research indicates that behaviours to which self-efficacy corresponds are largely concerned with new-venture formation processes and as such are required of entrepreneurs well beyond the point of founding. Hypotheses are formulated, which take into account the sequential nature of entrepreneurial tasks in the venture process. A multidimensional instrument is used to collect data from medium businesses (n = 199). Correlational and regression analysis are performed where empirical evidence supports that entrepreneurial self-efficacy during searching, planning, marshalling resources and implementing people phases of venturing are significantly associated with the competitiveness of the venture. Implications of this study can be advanced to the policy domain where it needs to be stressed that government initiatives will affect venture sustainability only if these policies are conceived in a way that influences entrepreneurial self-efficacy.

The Long‐Term Impact of Entrepreneurial Self‐Efficacy and Entrepreneurial Orientation on Venture Performance

“…For example, the results of McGee et al's (2009) study suggest that nascent entrepreneurs' confidence in performing "searching" tasks develops before gaining confidence in tasks that come later in the new venture creation process such as planning, marshaling of resources, and implementing (McGee et al 2009). Urban (2012) reported similar findings in his study of South African entrepreneurs. New ventures lead by entrepreneurs who were confident in their searching and planning abilities enjoyed higher competitiveness than their counterparts lead by less confident entrepreneurs.…”

“…Another salient stream of research relies on a four‐phase, sequential new venture creation framework to demonstrate that ESE is a multi‐dimensional construct that influences both successful venture creation and subsequent venture performance (McGee et al ; Mueller and Goic ; Urban ). The framework's phases include: (1) searching; (2) planning, (3) marshaling; and (4) implementing.…”

Exploring entrepreneurial intention’s mediating role in the relationship between self-efficacy and nascent behaviour

“…personnel and human resources aspects of implementation, and, (5) implementing-finance i.e. financial aspects of implementation (Urban, 2012). The dimensions were empirically tested using a sample of adults in the USA and found that each of the dimensions of ESE was positively related to attitude to entrepreneurship and nascent behaviour.…”

“…Thirdly, the paper explores EI of final year students in Zambia and therefore represents a valuable contribution to African entrepreneurship research. Besides a few studies on Africa such as in South Africa (Malebana and Swanepoel, 2014;Urban, 2006Urban, , 2012) and in Ethiopia (Gerba, 2012), extant literature reveals that research on EI, nascent behaviour and self-efficacy is mainly conducted in developed countries; developing countries, especially Africa, and that includes Zambia, are under-researched (Fayolle and Liñán, 2014;Hoskisson et al, 2011;Liñán and Fayolle, 2015;Mwiya et al, 2017). This constrains generalisability of the prior research conclusions.…”

Bringing Africa In: Promising Directions for Management Research

“…For instance, entrepreneurial self-efficacy is an important motivational construct that influences individual choice, goals, and emotional reactions, as well as the persistence of rural entrepreneurs in Africa (Urban, 2012). Other studies emphasize social structure and the importance of social capital, family ties, and communal orientation as a driving force for entrepreneurship (George, Kotha, et al, 2015;Khayesi et al, 2014).…”