Self-Efficacy, Risk Tolerance and Motivation as Predictors of Business Venture Engagements Among Youth Samples

Abstract

Business venture engagements have become an important means to reduce unemployment among youths. Factors predicting business venture engagements have been investigated with varied results. Therefore, this study examines the predictive roles of self-efficacy, risk tolerance, and motivation on business venture engagements among youth samples. Cross-sectional survey design was adopted, while purposive sampling technique was used to select Obio/Akpor Local Government Area (LGA) in Rivers State, Nigeria. Data were collected from 220 participants using validated questionnaires and analyzed using multiple regression analysis to test one hypothesis that was accepted at p < .001 level of significance. The result indicated that self-efficacy, risk tolerance, and motivation jointly predicted business venture engagements among study participants, R² = .491, F (3, 216) = 50.96, p < 0.001. Importantly, self-efficacy (β = .312, p < .001), risk tolerance (β = .324, p < .001), and motivation (β = .348, p < .001) independently predicted business venture engagements among study participants. The study concludes that self-efficacy, risk tolerance, and motivation are robust predictors of business venture engagements among youth samples. The study recommends that multiple stakeholders should design and implement policies that incorporate self-efficacy, risk tolerance, and motivation to open up youths to embrace business venture engagements for self-employment.