Determinants of Entrepreneurial Aspiration and Its Impact on Self-Employment Intention

Entrepreneurship is increasingly recognized as a key driver of economic development and employment, especially in emerging economies like India. Grounded in the Theory of Planned Behavior (TPB), this study examines how self-efficacy, subjective norms, risk-taking propensity, innovativeness, and need for achievement influence entrepreneurial aspiration and, subsequently, self-employment intention among business students. Using data from 673 respondents analyzed through PLS-SEM, the results show that all factors significantly affect entrepreneurial aspiration, with risk-taking propensity being the strongest predictor. Entrepreneurial aspiration, in turn, positively influences self-employment intention. While the model explains substantial variance in entrepreneurial aspiration (R² = 0.557), its explanatory power for self-employment intention is modest (R² = 0.058), suggesting the influence of additional contextual factors. By introducing entrepreneurial aspiration as a mediating construct, the study extends TPB and provides valuable insights for entrepreneurship education and policy development.