Timid Inaction in Nascent Entrepreneurship: Evidence from the State of Florida

Though significant research has been conducted on the subject of entrepreneurship, comparatively little empirical research has been done on factors that influence nascent entrepreneurship. Focused on nascent entrepreneurship or pre- startup stages, this study empirically examines the relationship between one's self-confidence in starting a new business and entrepreneurial intentions. Additionally, the mediating and moderating effects of perceived barriers to entrepreneurship are tested in this study. The research is based on primary data from the largest survey (sample size of 1245) ever done in the state of Florida on nascent entrepreneurship. Data analyses utilize the Andrew Hayes macro, an addition to the SPSS regression analyses, to test the mediating effects of perceived barriers. Results show a statistically significant and positive effect of self-efficacy on entrepreneurial intentions. Perceived barriers to entrepreneurship have a mediating effect that weakens the impact of self-efficacy on entrepreneurial intentions. At very high levels of perceived barriers, the promoting effect of self-efficacy on entrepreneurial intentions disappears completely. This is empirical proof for the inhibiting nature of perceived barriers in entrepreneurship. The paper concludes with several implications and limitations of the study.