Human capital and exploit opportunity among Malaysia rural entrepreneurs: The mediating effect of opportunity discovery

Abstract

Rural entrepreneurship plays significant role in a country regional development and become the main agent of lagging economic growth for many developing countries. Despite the significant contribution made by the entrepreneurs, until now limited of previous study that focused on rural entrepreneurs especially on the aspect of human capital and opportunity entrepreneurship. This study is therefore aims to explore the rural opportunity entrepreneurship in Malaysia. Specifically, this study try to determine the relationship between entrepreneurial human capital on exploit entrepreneurial opportunity for Malaysia rural entrepreneurs and the mediating effect of opportunity discovery on the relationship. To achieve the objectives this study relied on quantitative survey involved 345 respondents (rural entrepreneurs). Data captured from the survey were analysed using SPSS Version 20 for descriptive analysis and Smart PLS Version 2.0 Software for inferential analysis to explore the variables are related. The survey revealed that at the significant level 0.01 human capital has a positive relationship with exploit entrepreneurial opportunity and direct effect to entrepreneurial opportunity discovery. The entrepreneurial opportunity discovery is partially mediate between human capital and exploit entrepreneurial opportunity. The study concludes that human capital plays an important role or main element that contributes to the new venture creation in rural entrepreneurship. Hence, in the opportunity entrepreneurship rural entrepreneurs must consider entrepreneurial opportunity discovery aspects. This study makes a significant contribution to the research on rural entrepreneurship field, especially in relations to rural opportunity entrepreneurship.