The role of locus of control in shaping graduates’ entrepreneurial intentions: the mediating role of self-efficacy

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Entrepreneurship is a crucial driver of economic development in countries like Ethiopia, where high graduate unemployment and limited government job opportunities present ongoing challenges. However, little research has examined how self-efficacy mediates the relationship between internal and external locus of control and graduates' entrepreneurial intentions. This study aimed to investigate these relationships among graduating students. Data were collected from 455 final-year students ("Mage = 20.40″, SD = 2.52), of whom 280 (61.5%) were male and 175 (38.5%) were female. The results indicated that an internal locus of control was positively associated with graduates' entrepreneurial intentions, whereas an external locus of control was negatively related to entrepreneurial intention. In addition, self-efficacy showed a significant positive correlation with graduates' entrepreneurial intention. Structural equation modeling further revealed that self-efficacy partially mediates the relationship between both internal and external locus of control and entrepreneurial intention. These findings underscore the importance of strengthening students' sense of personal control and self-efficacy to enhance their motivation and capacity to pursue entrepreneurship.

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