THE MODERATING EFFECTS OF ENTREPRENEURSHIP TRAINING TOWARDS NEW VENTURE CREATION

The study aims to investigate the determinant factors of new venture creation and establish whether training moderates the factors. Developing new venture demands high entrepreneurial abilities, high motivations, resources availability, management competency, risk taking propensity and high working ethics of the human factors. If the business fundamentals can be shaped into the mindset through trainings, youths who are ready to face various challenges in setting up new ventures will be influenced. The human capital factors are used as the underpinning theory in this study that employed hypothetical deductive approach through Structural Equation Model (SEM) as a tool of analysis. Four factors namely opportunity seeking, motivation, ability and resources are regressed as determinants of new venture creation while risk taking, working ethics of human factors are constructed as dependent variable. Cross sectional data gathered from Universiti Sains Islam Malaysia students (USIM), across the faculties (N=490) are used and analyzed. The findings reveal that all factors except abilities are positively and significantly related to readiness towards new venture creation. Nevertheless, trainings do moderate the relationship of abilities and other factors tested. These findings suggest entrepreneurs can be trained and developed. Inclusions of trainings as a moderator play important roles on entrepreneurship training supporting and contributing to human capital theory on new venture creation. The structural model provides new empirical evidence and value insights to enhance trainings on new venture creation. The study implication serves as policy reference on job creation opportunities and students’ attainment of higher hopes on new venture creation.