Relationship between Positive Psychological Capital and Entrepreneurial Intentions of University Students: The Mediating Role of Entrepreneurial Self-efficacy

PURPOSE: This study examines the effect of university students' positive psychological capital (PsyCap) on entrepreneurial intentions (EI) and tests the mediating role of entrepreneurial self-efficacy (ESE) on this relationship. DESIGN/METHODOLOGY/APPROACH: The quantitative study design was based on cross-sectional data collected from 564 university students studying in the Turkish part of Cyprus, using a random sampling technique through a questionnaire. Analyses were performed using the Statistical Package for the Social Sciences (SSPS) version 24 and Moment Structure of Analysis (AMOS) version 18.0 programs. FINDINGS: The results showed that PsyCap affects EI, and ESE had a mediating role in this relationship. PRACTICAL IMPLICATIONS: This study helps policy-makers formulate policies to support university students' EIs to reduce the burden of unemployment. It enhances the understanding of developing ESE and PsyCap, which are important cognitive elements of EIs of university students, in the entrepreneurship process, and to the entrepreneurship literature. ORIGINALITY: This study presents the first empirical findings on the relationship between PsyCap, ESE, and EI, using evidence from university students.