Human capital and entrepreneurial intentions: do entrepreneurship education and training provided by universities add value?

Abstract

Purpose

In the context of conflicting results in the existing literature on the effectiveness of entrepreneurial education and training, this study aims to examine the effect of entrepreneurial training on perceived human capital and entrepreneurial intention of students. A deeper understanding of the effectiveness of entrepreneurship programs assumes significance, given the substantial policy support and budgetary spending on entrepreneurship education across the world, especially in emerging economies like India. Furthermore, the authors seek to examine if human capital mediates the relationship between entrepreneurial training and entrepreneurial intention.

Design/methodology/approach

In total, 330 final-year students who had undergone a mandatory course on “entrepreneurship and new venture planning” in various disciplines in science, technology and management were randomly selected as sample respondents. A self-administered and structured questionnaire that measured the attitude toward perceived effectiveness of entrepreneurial education and training, perceived human capital and the entrepreneurial intention was used to elicit responses.

Findings

Results revealed that entrepreneurial training and education are effective in eliciting an important student-level outcome of entrepreneurial intention. Furthermore, the study found that human capital significantly mediates the aforementioned relationship. Based on these findings, it is suggested to further the focus of entrepreneurial training programs conducted in universities and thus foster entrepreneurial outcomes among students.

Originality/value

This study adds to the body of knowledge, by examining if entrepreneurial education and training provided by universities indeed yield positive results in terms of higher intentions to engage in entrepreneurial activities, with emphasis on a large developing economy like India. Entrepreneurship development is widely recognized as an effective tool for the socio-economic development of societies in developing countries. This study, by establishing the efficacy of entrepreneurship education in creating entrepreneurial intention among young students, endorses the policy focus and resource spending on entrepreneurship training and education. Also, this study is pioneering in examining the mediating role of human capital in the aforementioned relationship.

Citation

Aboobaker, N. and D., R. (2020), "Human capital and entrepreneurial intentions: do entrepreneurship education and training provided by universities add value?", On the Horizon, Vol. 28 No. 2, pp. 73-83. https://doi.org/10.1108/OTH-11-2019-0077