Abstract
The growing number of café businesses makes undergraduate students attracting to the enterprise. The purpose of this study is to examine the relationship between Entrepreneurial Self-Efficacy (ESE) on entrepreneurial intention with the mediating role of attitude toward entrepreneurship. This study is providing questionnaires on the respondent. Total respondents are from 92 undergraduate students as the owner of a cafe business in Surabaya, Indonesia. This study examines two hypotheses by smart PLS. Entrepreneurial self-efficacy has a significant and positive influence on entrepreneurial intention. Attitude toward entrepreneurial is partially mediating the relationship between entrepreneurial self-efficacy with entrepreneurial intention. Entrepreneurial self-efficacy includes beliefs about the capabilities of achieving desired outcomes as well as beliefs about one's abilities to complete tasks. ESE is crucial to building entrepreneurial intention because the survival of a business does not merely depend on success but also seeks opportunities in business development. Entrepreneurial self-efficacy is a crucial factor that should be had by the undergraduate student as an owner of a business. By having a higher entrepreneurial self-efficacy, the better impact on an entrepreneur has perceived competence for successfully starting a new enterprise.
Highlights
Surabaya is the second-largest city in Indonesia
Hypothesis testing of the research examined with the approach of the Structural Equation Model (SEM) based on Partial Least Square (PLS)
The result of this study is related to a study by Tsai et al (2016) that attitude toward entrepreneurship can be mediating the influence of entrepreneurial self-efficacy on entrepreneurial intention
Summary
Surabaya is the second-largest city in Indonesia. The city population in Surabaya is the amount to 2.89 million in 2018 (Centre Of Statistic Department, 2019). Entrepreneurial Self-Efficacy is valuable to predict a motive to develop some business (Borchers & Park, 2010; Drnovšek et al, 2010). ESE is a self-belief as their ability to succeed in running some business so that influencing entrepreneurial intentions. Individuals have self-efficacy to build a successful business, and this expectation can motivate them to run some business (Bandura, 1994). The theory of planned behaviour describes an attitude, subjective norm, and self-efficacy influence entrepreneurial intention (Ambad and Damit, 2016). Related to the TPB (Ajzen, 1991), this study does not examine subjective norms to influence entrepreneurial intention. The respondent of this study is an undergraduate student in the Faculty of Economics and Business that provided support for the entrepreneurship program. The mediating role of attitude toward entrepreneurship on the relationship between ESE and entrepreneurial intentions
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