Does entrepreneurial self-efficacy predict discontinuation of venture idea development?

Objectives: To study if entrepreneurial self-efficacy predicts discontinuation of venture idea development and how different dimensions of entrepreneurial self-efficacy related to discontinuation of venture idea development. Theoretical Background/Previous Practice: According to social cognitive theory, performance of individuals is predicted by their self efficacy beliefs (Bandura, 1977). In the entrepreneurship context self-efficacy has proved to be an important variable explaining entrepreneurial intentions and performance. It has generally been studied in its relation to business start-up and business growth (Drnovsĕk, Wincent, & Cardon, 2010). When it comes to early stages of entrepreneurship, policy makers encourage individuals to choose the career of entrepreneurs, but there are still few studies which consider the relationship of entrepreneurial self-efficacy and nascent stages of entrepreneurship (McGee et al., 2009). Opportunity discovery is considered to be one of the success factors of entrepreneurial performance, but research shows that not all discovered opportunities are exploited (Davidsson, 2008; Sarasvathy, Dew, Velamuri, & Venkataraman, 2005; Shane & Venkataraman, 2000). One explanation to why entrepreneurs discontinue the development of venture ideas can be low entrepreneurial self efficacy.