The Contribution Effect of the Elements of Psychological Capital on Self-Employment

Abstract

This study investigates the contribution effect of psychological capital elements on self-employment among university graduates. A questionnaire survey of 311 of self-employed graduates was employed. Factor analysis, correlation and hierarchical regression analyses were performed. Results show that the contribution effect of psychological resources, self-efficacy, optimism and resilience significantly and positively influence self-employment among graduates in Nigeria. The study was conducted in North central region of Nigeria. Further research could be conducted to cover other regions in the country. The study employed a cross-sectional approach. A longitudinal approach should be employed to study the trend over a period of time. Finally, the four factors identified in motivating self-employment behaviour may not be sufficient in explaining the phenomenon. Hence, other factors should be considered in subsequent study. Since self-employment is a crucial activity to meet basic needs, economic growth and job creation, it is relevant for the graduates to strengthen their self-regulatory mechanisms. Hence, with diverse programmes offered by the government to encourage self-employment, the graduates should have a positive mind-set to take advantage of opportunities to start business for a living. This study contributes to the dearth of evidence of psychological capital elements on self-employment among graduates in Nigeria and adding to the body of literature by investigating individual behavioural attributes.

Keywords: Self-employment; Psychological capital; Self-efficacy; Hope; Optimism and Resilience