Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Research Article: 2021 Vol: 24 Issue: 6S

The Relationship Between Big Five Personality of Youth Entrepreneurial Intention Through Entrepreneurial Capability and Awareness

Ahmed Al-Hammadi, Universiti Teknikal Malaysia Melaka, Institute of Technology Management and Entrepreneurship

Samer Ali Al-Shami, Universiti Teknikal Malaysia Melaka, Institute of Technology Management and Entrepreneurship

Safiah Sidek, Universiti Teknikal Malaysia Melaka, Institute of Technology Management and Entrepreneurship


Five, Big, Personality, Youth, Entrepreneurship, UAE


Current empirical work that investigates youth entrepreneurship has provided new insights into the development processes that define the emergence of an entrepreneurial mindset among the youth. However, the study that emphasizes the creation of entrepreneurial skills resulting from the interrelationship between biological-related factors and cognitive entrepreneurial factors, such as entrepreneurial alertness is still very limited. Accordingly, this research focuses on gaining an understanding of the role of entrepreneurial personality traits and entrepreneurial competencies on the improvement of entrepreneurial alertness and intention among youth in the UAE. Through 320 questionnaires were randomly collected from secondary students, who study in the Emirates national school, we find that entrepreneurial personality has a positive significant relationship with entrepreneurial knowledge, skills, and alertness, but no direct relationship with entrepreneurial intention. In addition, entrepreneurial competencies (knowledge and skills) have a direct positive relationship with entrepreneurial alertness and intention and it mediates the relationship between entrepreneurial personalities and their alertness as well as intention. The finding of this research brought a new insight to the body of knowledge by providing a model that improves youth entrepreneurial alertness and intention at the school level through improving their personalities and competencies, which still forms a gap.


Globalization has delivered nations collectively and created a borderless world market. It has been an open secret that there are a lot of modifications in the global political map of the world. Countries are starting to demonstrate determination towards switching from monarchies of the ancient period and dictatorial systems to democracy. More importantly, the recent emergence of the Covid-19 pandemic has resulted in people worldwide have to contend with more self-reliant economic arrangements and job displacement. Globally, the unemployment rate is rising at an unprecedented pace, and this phenomenon is affecting the youth who are ready to enter the workforce. In this case, employment and job creation, with a particular focus on youth unemployment are considered as primary issues. The phenomenon of youth unemployment is reflected in the statistics reported by ILO (2020) recently. Based on the statistics provided by ILO (2020), the employment opportunities for young people is declining: Specifically, there is a decreasing rate of youth employment globally from 46.4 percent in 1999 to 35.6 percent in 2019, and the same trend also exists in the Arab States, which show a decreasing rate from 27.8 percent in 1999 to 21.4 percent in 2019. This trend is directly related to the increasing trend in the youth unemployment. Table 1 shows the increasing trend of youth unemployment in comparison with the World and Arab States, male and female youth unemployment rates from 2019 to 2021(estimates). As shown in Table 1, the rate of youth unemployment in the Arab States is comparatively higher than the global rate. Further, the youth female unemployment rate is consistently higher than the youth male unemployment.

Table ‎1
The Rates of Youth Unemployment (%) Based On Global And Arab States And Gender
Region Youth Total (%) Youth Male (%) Youth Female (%)
2019 2020 2021 2019 2020 2021 2019 2020 2021  
World 13.6 13.7 13.8 14.0 14.0 14.1 13.0 13.1 13.2
Arab States 22.9 23.0 22.9 19.7 19.8 19.6 42.2 42.1 42.5

These statistics indicate that global youth unemployment is becoming a world problem, which may disrupt the economic growth and social harmony of a nation. The statistics also show that the rate of youth unemployment in Arab countries is higher than the world’s unemployment rate. Further, the consistently higher rate of unemployment rate for female youth in comparison to male youth can be seen as an obstacle to Arab female entrepreneurs and the success of their businesses (Al Matroushi, Jabeen, Matloub & Tehsin, 2020).

Although there has been a growing concern of the government to address the unemployment issues among the youth, the number of initiatives provided by the government is marginal about the tremendous amounts of supports schemes and funds to support the formative-year job services. In this respect, governments tend to focus on identifying structures and solutions to create new jobs and increase the employment rate. Recognizing the direct relationship between entrepreneurship and the growth of the economy, inculcating youth entrepreneurship is regarded as a viable solution to address the issue of youth unemployment. Developing an entrepreneurial environment is one of the ways to encourage the youth to create a new job and reduce the specter of unemployment (Aljuwaiber, 2020). If vigorously encouraged, youth entrepreneurship is expected to assist with the survival of rising economies. Therefore, an open question is raised: How to develop entrepreneurship among youth in developing countries such as the Arab States? In this case, this research argues that the development of entrepreneur intention at an early age is the key to shifting the employment market to self-independency, in which the new generation can use their entrepreneurial skills to develop new businesses. Even though the literature has highlighted and emphasized the essential role of entrepreneurial education, the majority if now not all paid attention to the university level rather than school. This leaves an unbridged gap because the entrepreneurial competencies improve in the early age of the entrepreneurs. This opens room for an investigation of the factors that impact youth entrepreneurship and the position of the school education. Current empirical work that investigates youth entrepreneurship has provided new insights into the development processes that define the emergence of an entrepreneurial mindset among the youth (Obschonka, 2016). However, a study that emphasizes the creation of entrepreneurial skills resulting from the interrelationship between biological-related factors and cognitive entrepreneurial factors, such as entrepreneurial alertness is still very limited (Obschonka, Hakkarainen & Lonka, 2016). Therefore, this work explores entrepreneurial alertness as part of the cognitive development by emphasizing the development of entrepreneurial cognitive of the young as they reach their adulthood, hence recognizing entrepreneurial alertness as a significant step in the overall growth of a person's vocation (Obschonka, Moeller & Goethner, 2019), time of developmental precursors, especially of an adult entrepreneurial mind-set (Obschonka & Silbereisen, 2015; Obschonka & Stuetzer, 2017) and the explicitly underlying practices of youth entrepreneurship (Olugbola, 2017). Focusing on youth could also be beneficial in advising education initiatives and strategies aimed at encouraging entrepreneurship (Geldhof et al., 2014; Obschonka, Hakkarainen & Lonka, 2016). In addition, aiming to investigate the function of an academic gadget on formative years’ entrepreneurs, this research examines the interplay between formative years’ personality and entrepreneurial competencies as properly as know-how and capabilities on their entrepreneurial alertness and intention.

Literature Review

Mei, et al., (2017) state that entrepreneurial intention is “an individual’s intention to start a business”. Literature on entrepreneurial intention tends to focus on the factors leading to entrepreneurial intention drawn specifically from the psychological perspectives (Laviolette, 2012; Shook & Bratianu, 2010). Three common theories/models that guide the understanding of entrepreneurial intention are (1) Entrepreneurial Ideas (EI) (Bird, 1988); (2) Entrepreneurial Event (EE) (Shapero & Sokol, 1982); and (3) Theory of Planned Behavior (TPB) (Ajzen, 1991). Entrepreneurial Ideas (EI) focuses on the importance of implementing Entrepreneurial Ideas (EI) that lead to entrepreneurial intention, which subsequently lead to entrepreneurial actions or activities. Bird (1988) who advocates this model describes intention as one’s interest with a unique purpose to achieve something. About entrepreneurial activities, the entrepreneurial intention is viewed as “creating a new mission or growing new values in a cutting-edge undertaking” (Bird, 1988). Venturing is considered as “an intentional act that includes repeated attempts to reap the preferred result” (Shaver, Gartner & Gatewood, 2001), According to Bird (1988), entrepreneurial intention is the result of an individual’s rational thinking, which is shaped by two-way interactions between individual’s factors such as, personal history, personality and abilities, and the social contexts of the individual, for example, the social, political, and economic context. The outcome of entrepreneurial intention is the entrepreneurial actions, which are executed within a specific period (Tran & Korflesch, 2016).

Accordingly, Boyd & Vozikis (1994) included ‘self-efficacy’ in this model. This is in line with several researchers who claimed that social support, role models, and previous career experiences influence the perception of self-efficacy (Kazumi & Kawai, 2017; Kerr, Kerr & Xu, 2018; Levine & Rubinstein, 2017). However, this model was criticized for being individualistic and did not take into account the external social factors (Y?ld?r?m, Çak?r & A?kun, 2016). Developed by Shapero & Sokol (1982), the entrepreneurial event model advocates that entrepreneurial activities, such as firm creation are the outcome of the interaction between cultural and social factors, which is influenced by individual perceptions. As shown in Figure 1, entrepreneurial intentions are the result of the three factors, which are an individual’s perceived desire, the propensity to act, and the perceived feasibility (Krueger, & Brazeal, 2018). The three factors represent “the crucial moments that capture the extent to which an individual feels competent of starting a business” (Shook, Priem & McGee, 2003).

Figure 1: Entrepreneurial Event Model

source: (shapero & sokol, 1982)

Schlaegel & Koenig (2014) defined these three factors. Specifically, perceived desirability is defined as “the degree to which an individual feels attracted to become an entrepreneur and reflects individual preferences for entrepreneurial behavior” In a similar vein, Shook, Priem & McGee (2003) refer it as “the attractiveness of being an entrepreneur”.

Further, Schlaegel & Koenig (2014) defined perceived feasibility as “the degree to which individuals are confident that they are personally able to start their own business and consider the possibility to become an entrepreneur as being feasible”, while propensity to act as “an individual’s disposition to act on one’s decision”.

The TPB model was developed by Ajzen (1991) who highlighted three determinants of intention, which are the “attitude toward the act, subjective norms, and perceived feasibility” (Krueger, Reilly & Carsrud, 2000). The theory of planned behavior (TPB) is an extension of the Theory of Reasoned Action (TRA), with the addition of Perceived Behavioral Control (PBC) as a new variable (Sabah, 2016). Shook, Priem & McGee (2003) define the three antecedents of intention about entrepreneurial actions. Perception-based intentions and beliefs can be acquired rather than inherited (Kakouris, 2016). Besides, the intention is dynamic, and it is influenced by personal differences such as experience, knowledge, and others (Bjorvatn, Cappelen, Sekei, Sorensen & Tungodden, 2020). Since the central aim of this research to find out how personality traits influence youth entrepreneurial intention through improving their capabilities, using TPB alone as underpinning theory is not sufficient. Therefore, the entrepreneurial event model (Shapero & Sokol, 1982) has been used to investigate how entrepreneurial intention is formed through their perception of propensity to act upon opportunities (Krueger & Brazeal, 2018). Therefore, the integration between Theory of Planning Behavior and Entrepreneurial Event has been adopted in this research. Finally, the model of Entrepreneurial Idea (EI) model that focuses on implementing entrepreneurial ideas is found to be too limited to provide an understanding of the personality factors. Studies of entrepreneurial intention have been extensively documented, and the majority of these studies were drawn from psychology perspectives (Laviolette, 2012; Shook & Bratianu, 2010; Su, Liu, Zhang & Liu, 2020). Specifically, the literature has reported the dynamic influence of an individual’s entrepreneurial intentions and utilized psychological models (Arend, 2019; Kautonen, Luoto & Tornikoski, 2010). As such, it is pertinent to discuss the positioning of this research to highlight the gaps addressed by this research.

Drawn from the discussion above, this research aims to gain an understanding of the relationship between personality traits and entrepreneurial awareness and intention. In this case, entrepreneurial skills and knowledge, known as entrepreneurial competencies are considered as the mediating factors that facilitate the relationship of the previously mentioned constructs. Figure 1 shows the conceptual framework and the relevant hypotheses to be investigated in this research. As shown in Figure 2, ten hypotheses to test the direct relationship among the constructs have been proposed.

Figure 2: elationship Between Entrepreneurial Alertness (EA) And Entrepreneurial Intention (EI)

Alertness is a thought that has the achievable to add extensively to our perception of how new thoughts get initiated and pursued” (Tang, Kacmar & Busenitz, 2012). Further, Entrepreneurial Alertness (EA) characterizes humans who have a sensor that allows the consciousness of gaps with limited clues, and a high stage of EA facilitates a mental framework to expand adaptability to exclusive situations (Tang et al., 2012). McMullen and Shepherd (2006) supplied empirical proof that EA immediately contributed to individuals’ judgment and probability identification, which helps to shape their EI and future commercial enterprise behavior. Li, Wang & Liang (2015), in a study of Chinese students, verified that EA significantly envisioned opportunity cognizance and that entrepreneurial alertness is at the heart of being an entrepreneur. In this regard, Hu & Ye (2017) determined that the social cognitive factors of entrepreneurial alertness have a sturdy influence on sports activities' fundamental students’ entrepreneurial intention. As such, the following hypothesis is proposed:

H1: Entrepreneurial alertness has a positive significant relationship with entrepreneurial intention among students.

Personality and Entrepreneurial Alertness and Intention

Researches that investigate the relationship between personality and entrepreneurial intention and alertness tend to measure the different personalities based on gender: male and female (Brandstätter, 2011), or biological strategy (Nicolaou, Shane, Cherkas, Hunkin & Spector, 2008). According to Obschonka (2014), the common investigation of personality factors in an entrepreneur is the traditional method to explaining entrepreneurial competence, motivation, and mindset. However, to gain a holistic understanding of becoming an entrepreneur, variations in personality needs to be critically considered (Hisrich, Langan-Fox, & Grant, 2007).

Concerning the previous investigations of entrepreneurial alertness to unique personality traits, such as proactivity (Uy, Chan, Sam, Ho & Chernyshenko, 2015), we adopted the Big Five personality traits, which is one of the established methods to analyze different types of personality drawn from the perspective of psychology (Barrick & Mount, 1991). Specifically, our investigation involved the intra-individual entrepreneurial Big Five personality profile, which is the high degree of extraversion, conscientiousness, and openness; low stages of agreeableness; and emotion stability. These personality traits have been recognized as a robust predictor of entrepreneurial outcomes, competencies, motivation, and self-identity (Obschonka, 2014; Obschonka & Silbereisen, 2015). As such, the following hypothesis is proposed:

H2: Entrepreneurial personality positively predicts entrepreneurial alertness among students

H3: Entrepreneurial personality positively predicts entrepreneurial intention among students

Personality and entrepreneurial competencies

Age is appropriate entrepreneurial competencies that function as mediators. To gain an understanding of the relationship between personality traits and entrepreneurial alertness and intentions, we investigated the variable of age for entrepreneurial competencies. Prior research suggests that factors such as leadership, self-esteem, and intrinsic motivation demonstrate entrepreneurial expertise that are developmental precursors of matured entrepreneurial undertaking (Schmitt-Rodermund, 2004; Schmitt-Rodermund, 2007; Obschonka, Silbereisen & Schmitt-rodermund, 2010; Obschonka, Martin & Silbereisen, 2011). These factors are also considered as the constructs of the foundation of entrepreneurial talents of the occupational profession (Obschonka, Martin & Silbereisen, 2011). As such, the following hypothesis is proposed:

H4: An entrepreneurial personality positively influences entrepreneurial skills among students.

Personality and Entrepreneurial Knowledge

Considering that people with traits such as the need for achievement, risk-taking propensity, and locus of control have a positive relationship with entrepreneurship education outcomes, namely entrepreneurship intention (Obschonka, Hakkarainen & Lonka, 2016; Ndofirepi, 2020), there is a need to focus on identifying people with these characteristics. However, some studies suggest individual psychological traits are stable; hence and therefore cannot be altered by exposure to external intervention measures (Obschonka et al., 2016). Some studies questioned the predictive power of personality traits on entrepreneurial intentions (Llewellyn & Wilson, 2003). As such, the following hypothesis is proposed:

H5: An entrepreneurial personality positively predicts entrepreneurial knowledge amongst students.

Entrepreneurial Competencies and Entrepreneurial Alertness and Intention

Ahmad (2007) defined entrepreneurial competencies as the ‘individual characteristics that include both attributes and behaviors, enabling the entrepreneur to achieve and business successes. Botha, Carruthers & Venter (2019) claimed that entrepreneurs who have higher levels of general skills, such as communication skills and networking have a high possibility to start a new business. This is supported by the personality theory that takes into consideration the relationship between motivations and traits of an entrepreneur (Loscocco & Robinson, 1991). Mischel (1973) asserted that entrepreneurial competencies provide a better method for assessing an individual’s likelihood of success than focusing on personality only. For this research, entrepreneurial competencies are a set of competencies that result in entrepreneurial action. The set of competencies that are positively related to entrepreneurial intention and alertness as identified by Obschonka, Hakkarainen & Lonka (2016) are leadership skills (van Laar, van Deursen, van Dijk & de Haan, 2017), self-esteem (Newman, Obschonka, Schwarz, Cohen & Nielsen, 2019), school engagement and intrinsic motivation (Bueckmann et al., 2020). Previous researches also suggest that the experience of an entrepreneur influences their alertness to identify and exploit the opportunities (Bueckmann-Diegoli et al., 2020; Obschonka et al., 2016), together with future behavioral intention and attitudes (Botha et al., 2019). As such, the following hypothesis is proposed:

H6: Entrepreneurial skills have a positive significant effect on entrepreneurial alertness among students

H7: Entrepreneurial skills have a positive significant effect on entrepreneurial intention among students.

Entrepreneurial Knowledge and Entrepreneurial Alertness and Intention

Students in schools gained entrepreneurial knowledge from training related to entrepreneurship knowledge and skills. Studies have shown that entrepreneurial knowledge can significantly enhance entrepreneurial intentions among college students (Al-Shami, Mamun, Sidek & Rashid, 2019; Bueckmann-Diegoli et al., 2020; Ndofirepi, 2020; Sang & Lin, 2019). According to Sang & Lin (2019), entrepreneurial education with a comprehensive and effective system can be categorized into four groups: content teaching; business plan training; interactive exchange or internship; and support from the educational institutions. Finally, another factor contributing to the level of students ‘entrepreneurial ability is team building tasks. Previous studies show that new firms cannot develop effective teamwork. Managing teams are very important for new venture creation and the growth of the business. In the process of building teamwork, the new venture should concentrate on what each of them can offer rather than their personality. As such, the following hypothesis is proposed:

H8: Entrepreneurial Knowledge has a positive significant relationship with Entrepreneurial Intention

H9: Entrepreneurial Knowledge has a positive significant relationship with Entrepreneurial alertness.

Entrepreneurial Knowledge and Skills

Entrepreneurship education is described as the process in which “behaviors, skills, and attributes are practiced and developed and they help individuals and organizations in creating, bearing, and enjoying the changes and innovations involving larger levels of uncertainty and complexity” (Rauch & Hulsink, 2015; Zhang, Duysters & Cloodt, 2014). Entrepreneurship education includes a set of education and training activities within the educational system, and they focus on developing students the intention to perform entrepreneurial behaviors, elements that affect intention, such as entrepreneurial knowledge, the desirability of the entrepreneurial activity, or feasibility (Barba-Sánchez & Atienza-Sahuquillo, 2018) and financial literacy (Al-Shami, Muhamad, Majid & Rashid, 2019; Oseifuah, 2010). Entrepreneurship knowledge relates closely to acquiring knowledge and applying new behaviors of the very entrepreneurs, in the process of recognizing and using opportunities, and organizing and managing the existing ventures (Bueckmann-Diegoli et al., 2020). As such, the following hypothesis is proposed:

H10: Entrepreneurial knowledge in school influence positively entrepreneurial skills.


A quantitative method was adopted, meanwhile, a questionnaire with a Likert scale seven-point (1- strongly disagree to 7 strongly agree) was used as a tool for gathering data. The data was collected for the present study by distributing a set of 500 questionnaires (sample size) among students in the final year of their secondary school at Emirates National Schools ENS. ENS is private tuition-based, PK to grade 12 schools in five locations: Mohammed Bin Zayed City (4,301 students), Al Ain City (2,847 students), Abu Dhabi City (2,066 students), Sharjah (1,614 students), and Ras Al Khaimah (1549 students). Therefore, this research used randomly stratified where the population was divided into five strata. However, 320 were found valid for statistical data analysis. Of them, 62% were males and 38% female.

Table 2
Sample Distribution and Collection
School Location Population Sample % Completed
Mohammed Bin Zayed City 4301 174 35% 110
Al Ain City 2847 115 23% 75
Abu Dhabi City 2066 83 17% 55
Sharjah 1614 65 13% 43
Ras Al Khaimah 1549 63 12% 37
Total 12377 500 100% 320

Terms Definition

Exogenous variable refers to Five Big personalities, which defines youth entrepreneurial personality from the Extraversion, Openness to Experience, Agreeableness, Emotion stability, and Conscientiousness. For measuring the big five traits 28 items were adopted from (Farrington, 2012; Obschonka, Hakkarainen, Lonka & Salmela-Aro, 2017). Endogenous variable, which refers to as a “self-acknowledged conviction via a person who intends to set up a new business enterprise assignment and consciously plans to do so at some factor in the future”. In this research, the entrepreneurial intention is measured through six measurements adopted from (Liñán, Rodríguez-Cohard & Rueda-Cantuche, 2011; Obschonka et al., 2017; Zampetakis, Gotsi, Andriopoulos & Moustakis, 2011). There are three mediators namely entrepreneurial alertness, entrepreneurial skills, and entrepreneurial knowledge. Entrepreneurial alertness defines as scanning and looking for information, connecting until now disparate information [and] making reviews on the existence of profitable commercial enterprise possibilities. In this research, entrepreneurial alertness among youth is measured by 22 items suggested by (Ho, Uy, Kang & Chan, 2018; Neneh, 2019; Tang et al., 2012). Entrepreneurial skills, which refers to the prior knowledge or experience, refers to an individual’s distinctive information about a particular subject matter, maybe the result of work experience, education (Cooper, 1997), or other means (Shane & Venkataraman, 2000). Entrepreneurial skills were measured through 21 items represents school engagement, self-esteem, intrinsic motivations, and team management (Obschonka et al., 2017). Finally, entrepreneurial knowledge is known as the entrepreneurial ability to sense, select, shape, and synchronize internal and external conditions for the exploration (recognition, discovery, and creation) and exploitation of opportunities (Zahra, 2011). To measure young entrepreneurial ability as knowledge, this research used finance Management knowledge financial knowledge Marketing knowledge Effective business plan Team building task Administrative task Motivation Opportunity (Olugbola, 2017).

Figure 3, shows the demographic profiles of the respondents in this study. More of the respondents were male (62%) than male (38%).


Figure 3: Gender Participants

As shown in Figure 4, 56 female students about 46% of total participated states that they want to be an entrepreneur after finishing their study compared to only 37 respondents about 12% of their counterpart male students. This shows new insight into the regional change in Arab and women empowerment, especially in the UAE. It also indicates that most of the male students in the UAE prefer to join the government sector with about 38% compared to 32% of women.

Figure 4: Male to Female Entrepreneurial Intention

Validity and Reliability

The evaluation of construct reliability, indicator reliability, convergent validity, and discriminant validity of the defined constructs is the first step in SEM. Composite Reliability (CR) and Cronbach's alpha were used to determine construct dependability (CA). The requirement is that the CR value must be greater than 0.07 to show that the construct hair is reliable. The CR values obtained for this present were greater than 0.07, indicating sufficient construct dependability, according to the measurement model results (Table 3). The indicator's dependability was then tested using CA, with CA values greater than 0.07. As a result, the CA in this study for all parameters was acceptable. The Average Variance Extracted (AVE) was used to determine the convergent validity of constructs, which should be more than 0.50 (Ringle & Sarstedt, 2016). The convergent validity of constructs for this study was confirmed because the results demonstrated that all constructs had significant AVE. Table 2 depicts the values of CA, CR, and AVE.

Table 3
Validity and Reliability
Construct CA CR AVE Discriminant Validity
Entrepreneurial Alertness (EA) 0.931 0.941 0.571 YES
Entrepreneurial Skills 0.944 0.95 0.68 YES
Entrepreneurial Skills – Intrinsic (ECIM) 0.879 0.912 0.675 YES
Entrepreneurial Skills – Leadership (ECLE) 0.865 0.908 0.713 YES
Entrepreneurial Skills –School Engagement (ECSE) 0.876 0.91 0.669 YES
Entrepreneurial Skills – Self Esteem (ECSF) 0.874 0.909 0.666 YES
Entrepreneurial Intention (EI) 0.852 0.894 0.628 YES
Entrepreneurial Knowledge (EK) 0.76 0.837 0.508 YES
Personality Traits – Agreeableness (PTAR) 0.749 0.842 0.571 YES
Personality Traits – Conscientiousness (PTCO) 0.844 0.89 0.618 YES
Personality Traits – Extraversion (PTEX) 0.736 0.851 0.655 YES
Personality Traits – Neuroticism (PTES) 0.762 0.863 0.677 YES
Personality Traits – Openness (PTOP) 0.801 0.87 0.628 YES

The discriminant validity of the components was assessed using three methods: the Fornell and Lacker criterion, cross-loading, and the Heterotrait–Monotrait ratio (HTMT) (Hair Jr et al., 2016). By comparing the square root of AVE retrieved from each concept with the correlation between constructs, the Fornell–Lacker criterion is used to assess discriminant validity. The cross-loading approach then advises that the construct's outer loading should be greater than the associated construct loading to indicate appropriate discriminant validity. Table 4 shows the Fornell–Lacker results, whereas Table 4 shows the cross-loading results. According to (Kline et al., 2012), values above 0.85 imply that the measurement has good discriminant validity. As a result, the discriminant validity of the constructs was confirmed in this investigation, as all loadings of the constructs were higher than the other constructs. Finally, the Fornell–Lacker criterion is used to verify discriminant validity, which demonstrated substantial relationships between the constructs. (Figure 5)

Table 4
Discriminant Validity
EA 0.755                          
EC 0.507 0.706                        
ECIM 0.449 0.792 0.822                      
ECLE 0.534 0.885 0.604 0.844                    
ECSE 0.384 0.876 0.574 0.703 0.818                  
ECSF 0.382 0.880 0.549 0.748 0.715 0.816                
EI 0.465 0.394 0.388 0.337 0.341 0.285 0.793              
EK 0.430 0.350 0.320 0.321 0.311 0.252 0.375 0.713            
PT 0.356 0.279 0.319 0.210 0.204 0.224 0.217 0.347 0.700          
PTAR 0.292 0.262 0.328 0.202 0.172 0.199 0.189 0.322 0.923 0.756        
PTCO 0.309 0.214 0.220 0.168 0.130 0.215 0.168 0.268 0.860 0.736 0.786      
PTEX 0.296 0.250 0.297 0.186 0.199 0.176 0.153 0.325 0.886 0.804 0.665 0.809    
PTES 0.297 0.259 0.289 0.175 0.199 0.224 0.195 0.262 0.912 0.805 0.765 0.764 0.823  
PTOP 0.375 0.257 0.292 0.199 0.216 0.175 0.250 0.364 0.857 0.759 0.579 0.752 0.733 0.792

Figure 5: Loading Factor

Hypotheses Testing

Based on the results obtained through PLS-SEM, the structural model was used to test the hypothesis of the present research study as shown in Table 5.

Table 5
Path Coefficients
Path Path Coefficient S.E t-Value p-Value
EA → EI 0.295 0.076 3.877 0.000
EC → EA 0.376 0.062 6.034 0.000
EC → EI 0.179 0.075 2.407 0.016
EK → EA 0.239 0.054 4.402 0.000
EK → EC 0.288 0.057 5.087 0.000
EK → EI 0.187 0.059 3.142 0.002
PT → EA 0.168 0.056 3.018 0.003
PT → EC 0.179 0.062 2.862 0.004
PT → EI -0.003 0.055 0.053 0.957
PT → EK 0.347 0.050 6.975 0.000

The values of path coefficients, t-values, and p-values at a significance level of 0.05 were evaluated to test the hypothesis. First, our results show a positive relationship between EA and EI with b coefficient of 0.295. This confirms studies by (Murugesan & Jayavelu, 2017; Obschonka et al., 2017). Second, there is a significant positive relationship between EC and EA, at b coefficient of 0.376, which is in line with the study by (Bueckmann-Diegoli et al., 2020). Third, there is a significant positive relationship between EC and EI, at b coefficient of 0.179, which is in line with the studies by (Neneh, 2019; Sang & Lin, 2019; Urban, 2020). Fourth, there is a significant positive relationship between EK and EA, at b coefficient of 0.239, which is in line with the studies by (Obschonka et al., 2017). Fifth, there is a significant positive relationship between EK and EC, at b coefficient of 0.288, which is in line with the studies by (Murugesan & Jayavelu, 2017). Sixth, there is a significant positive relationship between EK and EI, at b coefficient of 0.187, which is in line with the studies by (Ciavarella, Buchholtz, Riordan, Gatewood & Stokes, 2004). Seventh, there is a significant positive relationship between PT and EA, at b coefficient of 0.168, which is in line with the study by (Pyysiäinen, Anderson, McElwee & Vesala, 2006). Eighth, there is a significant positive relationship between PT and EC, at b coefficient of 0.179, which is in line with the study by (Obschonka et al., 2017). Ninth, there is no relationship between PT and EI. According to the results of the present study, the value of the path coefficient between PT and EI was measured as -0.003. The t-value was 0.053 which is smaller than a critical value of 1.96 and the p-value of 0.957 was also found to be more than the threshold value of 0.05 and hypothesis 9 was rejected. The finding of this paper is in line with studies by (Obschonka et al., 2017), in which prior knowledge, which refers to an individual’s distinctive information about a particular subject matter, may be the result of work experience and education (Cooper, 1997) or other means (Shane & Venkataraman, 2000). Finally, there is a significant positive relationship between PT and EK. According to the results of the present study, the value of path coefficient between PT and EK was measured as 0.347. The t-value was 6.975 which is larger than the critical value of 1.96 and the p-value of 0.000 was also found to be less than the threshold value of 0.05. These values proved the significance of this path coefficient. The finding of our study h confirms studies in the literature, in which a high level of emotional stability harms entrepreneurial performance (Mei et al., 2017) and vice versa (Caliendo, Fossen & Kritikos, 2014).

Discussion and Conclusion

Following a thorough literary analysis of key factors that influence entrepreneurship, a conceptual model was developed which demonstrated potential connections between entrepreneurial personality characteristics, self-esteem, and business behavior (Al-Shami et al., 2015). The impact of knowledge overload was also included, which, even though recognized as a problem, was not evaluated empirically in the business discipline. In my research, all these main relationships in an evolving economic sense were empirically tested and contributed greatly to literature. The main contributions to theory are mentioned below:

In the case of the emerging economies, (Zahra, Filatotchev & Wright, 2009), suggested testing existing western theories. The findings in the field of personality and business performance were based on the current theory (Teece & Pisano, 1997; Zhao, Hills & Seibert, 2005). In terms of entrepreneurial actions, these investigations have turned observed actions into empirical constructions and have been able to assess the relationship between the personality and entrepreneurial performance of the entrepreneurs. Some positive relationships were published. This is the base for further research. This research is useful by researching UAE students in the developing economies for the business studies undertaken. The number of published researches in this sector is not reasonably representative of the extent of entrepreneurs' activities, although there is a growing population of entrepreneurs. This study thus helps to develop the perception of UAE entrepreneurs in reality. The findings have substantial theoretical and practical consequences. The present study first expands the literature about entrepreneurship by adding a psychological viewpoint to explain the causes of personality features that contribute to entrepreneurship.

Given that Big Five Personality is not enough to clarify UAE people's motives or actions (Zheng, Yang & Feng, 2010), We researched relationships with entrepreneurial purpose between the Big Six personality (e.g.: Emotional Health, Conscience), Agreeability, Extraversion, Openness, and IR). Combining personality theory with the cognitive and affective framework, social cognitions, and personal health theory, this research highlights the influence of personality traits on the selection of individuals in work, such as entrepreneurship. In particular, based on the theory of fitness for the workforce, we supposed that personality traits could be an indicator of the purpose and choice of a worker. We find the Emotional in this current study. Stability, perception, extraversion, and the relationship between individuals have been positively related to enterprise purpose. It means that those four dimensions undoubtedly influence the entrepreneurial purpose of a person to a different extent. These results expand the theory of person-fitness and provide empirical evidence that the great six personalities are logical and useful in determining the purpose of the individual. The research, therefore, leads to the integration in a particular sense of personality and entrepreneurship. In addition, our work applies personality theory (Mischel, 1973) and the theory of social cognition (Bandura, 2012) to the study of the relationship between characteristics and entrepreneurial intentions. These relationships were planned and evaluated to integrate both static and dynamic. The statistical viewpoint is rooted in the logic of the relatively stable characteristic of personality based on a genetic view, while cognitive-affective system theory of personality and social cognition theory offers us a complex logic to explore the deep connection between interpersonal and cognitive relationships. These two cognition theories indicated that interpersonal relationships have contributed to cognitive change and development and, in turn, could drive personality development (Jing, Rosenzweig & G d’Ydewalle, 2006). Combining the above two logics of static and dynamics, we suggest the sustainable identity of the Big Six, emphasized based on the UAE system.

In conjunction with the above studies, we adopted the Big Six personality model (Bandura, 2012), differentiated from that of the Big Five concerning the dimension of interpersonal relations to explore its effects on entrepreneurial purpose. These results suggest that interpersonal contact might be best suited to describe the personalities, motives, or actions of UAE people adequately. This thesis, therefore, explores cognition theories further and integrates them with business. We stress, first of all, that personality is maintained based on personality theory (Mischel, 1973), of the cognitive-affecting mechanism and its continuing effect on the entire life of people. The main influence of Interpersonal relationships on entrepreneurship provides the basis for the suggestion that personality is sustainable. Sustainable personality, in particular, is compatible positively with generating creativity that is closely linked to sustainable economic growth. In the Soriano et al., study (Soriano, Roig, Sanchis & Torcal, 2002), they proposed a new means of encouraging innovation functions such as targets or service innovation for consulting companies that lead to the growth of these companies in a sustainable manner. It is therefore necessary to note the sustainable personality of the energetic and creative students in the same manner as (Soriano et al., 2002).


We would like to thank Universiti Teknikal Malaysia Melaka for funding this research


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