Abstract
This study aims to investigate the mediating effects of behavioral and entrepreneurial intentions on the relationship between the capabilities approach encompassing education, economic, and socio-cultural factors and the Theory of Planned Behavior (TPB), which includes attitude, perceived behavioral control, and subjective norm, in relation to public welfare in Timor-Leste. Utilizing a Structural Equation Modeling (SEM) approach with AMOS 24.0, the research examines the interconnections among constructs relevant to entrepreneurship, focusing on educational, economic, and socio-cultural capabilities alongside TPB dimensions. The findings reveal that socio-cultural capabilities significantly influence entrepreneurial growth and public welfare, with behavioral mediation and entrepreneurial intention playing key roles in clarifying these relationships. These insights suggest that entrepreneurship is vital for enhancing public welfare in Timor-Leste, guided by the capability model and TPB approach. The results can inform the development of more effective policies to support entrepreneurship as a means of improving public welfare. Ultimately, this study enriches the literature on the interplay between entrepreneurship, capability factors, and public welfare in Timor-Leste, providing a foundation for development strategies in similar contexts.
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