What can education bring to entrepreneurship? Formal versus non-formal education

ABSTRACT

Building on a dynamic view of human capital for the entrepreneurship field, our article covers research performed in this field by examining: the effect of formal versus non-formal Entrepreneurial Education (EE) investments and the development of entrepreneurial human capital assets on the entrepreneurial intention; learning approaches (behavioral, cognitive, or constructive) that are prevalent in formal and non-formal education systems in terms of teaching methods and acquired competences and their effects on entrepreneurial intention, considering different settings at individual and country context level. More than 650 respondents from three countries (Macedonia, Slovenia, and Lithuania) are included in the sample. The research applies structural equation modeling, using two standardized and relevant measurement tools: Entrepreneurial Intention Questionnaire (EIQ) and Assessment Tools and Indicators for Entrepreneurship Education (ASTEE). Non-formal entrepreneurial education has proven to be a stronger effect on human capital assets. On the other hand, entrepreneurial mindset and constructive entrepreneurial skills have a greater impact on personal attitudes and perceived behavioral control. This could mean that decision-makers should complement formal with non-formal entrepreneurial education, that they should design the entrepreneurial study programs with non-cognitive (that is, constructive) teaching methods and learning outcomes.

KEYWORDS:

• Entrepreneurial intention
• motivational factors
• entrepreneurial education
• human capital
• learning approaches
• cultural differences

Acknowledgments

We thank Norris Krueger, Ph.D., for sharing his thoughts and feedback, sharing his pearls of wisdom with us during the course of this research. We would also like to show our gratitude to Francisco Linan, Ph.D. for his comments that greatly improved the manuscript. Hence, we are immensely grateful to both well-established research scholars for their input on an earlier version of the manuscript, although any errors are our own and should not tarnish the reputations of these esteemed persons.