Entrepreneurial Growth under Risk Aversion: The Mediating Effects of Entrepreneurial Education and Social Networking

Abstract

This study investigates the impact of entrepreneurial education on individuals’ ability to overcome risk aversion and social constraints in Quetta, Pakistan. In a context where cultural norms, limited resources, and fear of failure inhibit entrepreneurial activity, access to entrepreneurial education and information can act as a critical facilitator for change. The study focuses on behavioral and social barriers to entrepreneurship, particularly risk aversion and limited social networking, and examines the mediating role of entrepreneurial education. A cross-sectional research design was employed, using primary data collected through surveys of aspiring students and existing entrepreneurs in Quetta, selected via self-selection sampling. PLS (SEM) was used for data analysis in examining the relationships among the variables. The findings reveal that greater exposure to entrepreneurial education significantly reduces risk aversion and strengthens individuals’ confidence to engage in entrepreneurial ventures despite prevailing social constraints. The study highlights the importance of targeted entrepreneurial education and policy interventions in encouraging an enabling entrepreneurial environment in underdeveloped regions.

Keywords: Risk Aversion, Entrepreneurial education, Social Networking, and Entrepreneurial Growth.