Entrepreneurial self-efficacy and business start-up: developing a multi-dimensional definition

Purpose - The aims of this paper are to: critically review and identify gaps in current literature on entrepreneurial self-efficacy, provide a definition of entrepreneurial self-efficacy that addresses some of those gaps, and explore the role of entrepreneurial self-efficacy during the phases of a business start-up process. The research seeks to define entrepreneurial self-efficacy using three sources of dimensionality. The first includes the particular aspect of entrepreneurship to which self-efficacy is applied, whether to business start-up or business growth activities. The second sources of dimensionality refers to the content of self-efficacy beliefs (task or outcome goal beliefs), and the third source to the valence of entrepreneurial self-efficacy beliefs (positive or negative control beliefs). Design/methodology/approach - The authors build from the origins and mechanisms of the self-efficacy construct in social cognitive theory and a synthesis of that work with prior use of self-efficacy in entrepreneurship to propose a definition of entrepreneurial self-efficacy that is context specific and empirically testable. Findings - Entrepreneurial self-efficacy is best seen as a multidimensional construct made up of goal and control beliefs, and propositions for how these two different dimensions will play a role during phases in the process of starting-up a new business are developed. Research limitations/implications - A well-defined entrepreneurial self-efficacy construct has significant pedagogical payoffs given that entrepreneurship education should also focus on social-cognitive, psycho-cognitive and ethical perspectives of entrepreneurship. Originality/value - The proposed multidimensional nature of self-efficacy is original and unique in its contribution, and provides a conceptual foundation to understand how capabilities along different dimensions of entrepreneurial self-efficacy are created and nurtured. This knowledge is useful for potential entrepreneurs as well as those who support them in the process.