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

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  • P. Varsha Pramod
  • Remya Ramachandran

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.

Suggested Citation

  • P. Varsha Pramod & Remya Ramachandran, 2025. "The Entrepreneurial Self-Efficacy of Micro-Entrepreneurs: A Social Cognitive Perspective," Forum for Social Economics, Taylor & Francis Journals, vol. 54(2), pages 225-239, April.
    • Handle: RePEc:taf:fosoec:v:54:y:2025:i:2:p:225-239
    DOI: 10.1080/07360932.2023.2204204
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