EB McGee et al

Entrepreneurial Self-Efficacy (ESE)

Belief in one’s ability to successfully perform specific tasks required to start and run a new venture

General Self-Efficacy (GSE)

A broad and trait-like belief in one’s overall ability to handle a wide range of tasks across situations

Key critique of GSE in entrepreneurship research

GSE is too general and weakly predictive of entrepreneurial intentions and behavior

Bandura’s view on self-efficacy

Self-efficacy should be task-specific and domain-specific to predict behavior accurately

Why ESE is preferred over GSE

ESE focuses on confidence in entrepreneurial tasks and better predicts entrepreneurial intentions and action

Core problem addressed by McGee et al. (2009)

Existing ESE measures are inconsistent

Main objective of the article

To refine and standardize the measurement of entrepreneurial self-efficacy using a multi-dimensional

Entrepreneurial intentions

Conscious plans or intentions to start a new business that precede entrepreneurial action

Nascent entrepreneurs

Individuals who have not started a business but are actively engaged in activities aimed at launching one

Why nascent entrepreneurs matter for ESE research

They allow ESE to be studied before venture creation rather than retrospectively

Venture creation process model

A theoretical framework that divides entrepreneurship into sequential phases of activity

Searching phase

The stage involving opportunity recognition

Planning phase

The stage involving market analysis

Marshaling phase

The stage involving acquiring resources such as capital

Implementing phase

The stage involving managing and growing the venture after launch

Implementing–people dimension

Confidence in managing employees including hiring

Implementing–financial dimension

Confidence in managing financial records

Final number of ESE dimensions identified

Five distinct dimensions of entrepreneurial self-efficacy

Why ESE must be multi-dimensional

Entrepreneurship consists of different tasks across stages that require different competencies

Problem with total ESE scores

Aggregating ESE into one score hides which specific competencies influence intentions and behavior

Item development approach

Entrepreneurial tasks were identified from theory and refined through expert review and factor analysis

Final ESE scale length

Nineteen items across five dimensions

Strongest ESE dimension among nascent entrepreneurs

Searching self-efficacy

Inspiration then perspiration pattern

Confidence develops first in opportunity recognition before later-stage implementation skills

Relationship between ESE and entrepreneurial behavior

Higher ESE is positively associated with nascent entrepreneurial activity

Attitude toward venturing

General evaluation of starting a business as positive or worthwhile

Relationship between ESE and attitude toward venturing

Higher ESE is associated with a more positive attitude toward venturing

Main theoretical contribution

Establishing ESE as a multi-dimensional and process-based construct

Main methodological contribution

Developing and validating a refined ESE measurement instrument

Implication for entrepreneurship education

Education should build ESE sequentially across different venture stages

Why measuring ESE by dimension matters for education

It reveals which entrepreneurial skills are strengthened by training

Key limitation of prior ESE studies

Overreliance on student samples or existing entrepreneurs

Advantage of McGee et al.’s sample

Inclusion of a diverse population including nascent entrepreneurs

Overall conclusion of the article

ESE is best understood and measured as a multi-dimensional construct linked to the venture creation process