The Impact of Intellectual Capital on the Establishment of Ventures for Saudi Small Entrepreneurs: GEM Data Empirical Scrutiny

Abstract

The study investigated the effect of intellectual capital on entrepreneurs' entrepreneurial intention in Saudi Arabia. It employed the 2016 General Entrepreneurship Monitor (GEM) data gathered by the General Adult Population Survey (APS) from 4053 respondents in Saudi Arabia and analyzed it using binominal logistic regression. The study revealed that networking (relationship with entrepreneurs),
opportunities recognition, knowledge, and skills positively impact entrepreneurs' entrepreneurial intention. Owning and managing an enterprise surprisingly did not affect the respondents' entrepreneurial intention. Furthermore, age reported a significant negative connection with entrepreneurial intention, and gender showed no effect. Finally, the education categories all revealed a negative impact on entrepreneurial intention except for some secondary classes. The study adds contribution in the context of intellectual capital and entrepreneurial intention. It also provides policymakers and other stakeholders directions on the importance of intellectual capital in effecting entrepreneurial intention. The study is limited to Saudi Arabia's context only, and it includes merely a few items selected for measuring intellectual capital and entrepreneurship, which may hamper its generality. Future studies may focus on other contexts with moderators and mediator variables.