Necessity entrepreneurship: An examination of control beliefs

In the context of necessity entrepreneurship, control beliefs (that is, entrepreneurial locus of control and entrepreneurial self-efficacy) are examined as individual moderators and as simultaneous moderators of the effect perceived economic uncertainty has on entrepreneurial intention. Using recognized measures and an online questionnaire, data from a sample of 285 undergraduate business students are used to test a series of hypotheses. While confirming past findings, the results also provide surprising findings. The findings provide potential explanations for why previous research varies regarding locus of control, while the results are consistent with past entrepreneurship research on self-efficacy. Importantly, the results show that neither locus of control, nor self-efficacy, moderate the effect of perceived economic uncertainty alone. However, when considered simultaneously both control beliefs moderated the effect of perceived economic uncertainty on entrepreneurial intentions.