The Entrepreneurial Self-Efficacy of Micro-Entrepreneurs: A Social Cognitive Perspective

Abstract

Today, the world is witnessing a massive transformation in all spheres of activity as a result of the outbreak of the COVID-19 pandemic. Recognising opportunities is more crucial than ever. The purpose of this article is to analyse the impact of social capital (SC) on the opportunity recognition (OR) of micro-entrepreneurs through entrepreneurial self-efficacy. The study is in line with the social cognitive theory. Furthermore, the study analyses the influence of gender and type of business on SC, entrepreneurial self-efficacy and OR. Data were collected through a cross-sectional survey among micro-entrepreneurs in Kerala, India. Independent sample Z-test and structural equation modeling were used to analyse the data. The results reveal that entrepreneurial self-efficacy mediates the relationship between SC and OR. Sobel test was used to reaffirm the mediation effect. This study provides suggestions for enhancing entrepreneurial self-efficacy to better identify opportunities in today's ever-changing global business environment. © 2023 The Association for Social Economics.