Author(s): Mutum Minarani Devi,Laishram Tarunbala Devi, Ayekpam Victoria Chanu, Chingakham Chitrapati Devi, Partakson Romun Chiru,
Entrepreneurship is increasingly recognized as a catalyst for economic growth, innovation, and employment generation; however, the mechanisms through which formal education contributes to entrepreneurship development remain insufficiently understood. Drawing upon Human Capital Theory and Entrepreneurial Personality Theory, this study examines the relationships among Formal Education (FE), Entrepreneurial Personality Traits (EPT), and Entrepreneurship Development (ED) among university students in Manipur, India. Using a quantitative research design, data were collected from 400 students and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess direct, indirect, and mediating relationships among the constructs. The findings reveal that Formal Education positively and significantly influences Entrepreneurial Personality Traits (β = 0.086, p = 0.028) and Entrepreneurship Development (β = 0.083, p = 0.022). Institutional Support for Entrepreneurship emerged as the strongest determinant of Formal Education (β = 0.964, p < 0.001), while Risk-Taking Propensity (β = 0.589, p < 0.001) and Innovativeness (β = 0.398, p < 0.001) were identified as the most influential dimensions of Entrepreneurial Personality Traits. Entrepreneurship Development was primarily driven by Business Start-Up Readiness (β = 0.753, p < 0.001) and Opportunity Recognition (β = 0.297, p < 0.001). Furthermore, the model demonstrated substantial explanatory power (R² = 0.950), strong predictive relevance, and satisfactory model fit. Mediation analysis indicated that Entrepreneurial Personality Traits partially mediate the relationship between Formal Education and Entrepreneurship Development. The study contributes to entrepreneurship literature by integrating educational, psychological, and developmental perspectives into a comprehensive framework and offers practical insights for universities and policymakers seeking to cultivate future entrepreneurs through supportive entrepreneurial ecosystems and personality development initiatives.