The Effect of Entrepreneurial Ideas and Skills on the Intentions of Algerian University Students to Launch New Start-Ups

Abstract

In the fast-paced and ever-evolving world of entrepreneurship, start-ups have become synonymous with innovation and limitless potential. One of the significant channels used to encourage them is investing in the capabilities and ideas of visionary youths and university students who are considered society’s elite. However, despite the Algerian economy’s shift towards supporting entrepreneurship, especially among students, there is limited entrepreneurial activity overall, particularly in innovative start-ups, which has remained notably low. This indicates less inclination toward launching new start-ups among the students. Thus, the primary objective of this research is to examine the role of entrepreneurial ideas (EID) and entrepreneurial skills (ESK) in influencing the intention to launch new start-ups (ILNS) in Algeria. A cross-sectional research design was employed, involving the distribution of a pre-designed questionnaire among students registered in Algerian universities. Data collection was conducted across all the regions of Algeria, yielding a total of 297 valid responses. Data was analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) via Smart-PLS 4 software. The findings highlight significant correlations between EID, EKS, and ILNS. These outcomes furnish fresh insights into the significance of cultivating personal entrepreneurial competencies. Moreover, they shed light on the mechanisms for nurturing entrepreneurship and offer practical recommendations to bolster students’ capacities to launch new start-ups, thereby contributing to the local economy.